The  Comprehensive  Economic  Development  Impacts  of  the  Florida  Venture  Forum  

to  the  State  of  Florida          

Presented  to:                        

The  Washington  Economics  Group,  Inc.  (WEG)  2655  LeJeune  Road,  Suite  1000,  Coral  Gables,  FL  33134  

T:  305-­‐461-­‐3811  –    F:  305-­‐461-­‐3822        |        E:  info@weg.com        |        W:  www.weg.com  

The  Comprehensive  Economic  Development  Impacts  of  the  Florida  Venture  Forum  to  the  State  of  Florida  

The  Washington  Economics  Group,  Inc.  (WEG)   P a g e |  1  

I. Executive  Summary    n The  Florida  Venture  Forum  (the  Forum)  is  a  statewide  network  that  successfully  

prepares,  coaches  and  connects  entrepreneurs  and  small  businesses  with  equity  investors  throughout  the  State  via  conferences  and  other  networking  activities.    Since   its   original   founding,   the   Forum   has   become   an   increasingly   important  contributor  to  Florida’s  economy.  

n The   Forum’s  mission   is   critical   in   support   of   Florida’s   Economic  Development  Strategy.  The  Strategy’s  main  goal  is  to  create  an  innovation-­‐driven  economy  for  the   generation   of   high-­‐wage,   high-­‐skilled   job   growth   in   the   21st   Century.   The  Forum   supports   innovation-­‐oriented   entrepreneurs   and   businesses   at   its  conferences,   events,   and   other   educational   programs,   providing   opportunities  for  networking,  education  and  presentations  to  active  equity  investors.  

n Most  networks  for  entrepreneurs  and  investors  are  regionally  specific  in  Florida,  while  the  Forum  focuses  on  a  statewide  approach.  This  allows  entrepreneurs  in  Florida   to   reach   investors   in   the   State   and   from  across   the  nation   through   the  Forum’s   comprehensive   conferences   and   other   programs.   The   matrix   below  illustrates   the  benefits   for  Florida   residents  of   Forum  activities   supporting   the  State’s  economic  development  strategy.    

   

                   

The  Comprehensive  Economic  Development  Impacts  of  the  Florida  Venture  Forum  to  the  State  of  Florida  

The  Washington  Economics  Group,  Inc.  (WEG)   P a g e |  2  

n The   large   and   quantifiable   economic   impacts   of   the   Forum   on   Florida   are  generated   by   a   number   of   principal   activities.   The   Forum   regularly   hosts   the  Florida   Early   Stage   Capital   Conference   (ES),   the   Florida   Venture   Capital  Conference   (VC),   and   other   events   throughout   the   year.   The   ES   Conference  focuses  on  serving  companies  with  revenues  in  the   low  hundreds  of  thousands  up   to   three   million   Dollars;   the   VC   Conference   focuses   on   serving   companies  with   revenues   in   the   three  million   and   above   range   and   is   referred   to   as   the  “Late  Stage”  Conference.  

 n The   economic   impacts   of   the   Forum   on   Florida,   from   2000   to   present,   can   be  

divided   into   three   broad   activities   or   categories:   the   economic   impacts   of   the  Forum’s  operating  expenditures,  the  spending  by  out-­‐of-­‐state  visitors  attending  the  Forum’s  conferences  and  events,  and  the  impacts  of  equity  capital  raised  by  Forum  presenting  companies.  

n Table   ES-­‐1   below   summarizes   the   important   quantitative   contributions   of   the  Forum’s  activities  in  the  above  mentioned  areas.  These  impacts  are  presented  in  greater  detail  in  the  sections  that  follow.  

 

 

§ The   Total   Economic   Impact   of   all   Forum   activities   is   a   significant   $8.8  billion,   generating   over   $2.6   billion   in   Household   Income   over   a   16-­‐year  period.   During   this   period   the   Forum   supported   over   44,200   jobs   in   the  State.  In  essence,  the  Forum  makes  important  contributions  to  the  standard  of  living  of  Florida’s  residents.  

Table  ES-­‐1.  Summary  of  the  Economic  Impacts  (by  Activities)  on  Florida  Generated  by  the  Forum    2000  –  Present  

Impact  on  

Forum  Operations  &  Out-­‐of-­‐  State  Visitors  

Early  Stage    Conference  and  Events  

Late  Stage  (VC)  

Conference  and  events  

Total  Impacts  

Employment  (Number  of    Jobs)   261   2,155   41,817   44,233  

Household  Income  ($  Millions)   $14   $137   $2,469   $2,620  

GDP  (Value  Added  $  Millions)   $18   $248   $4,129   $4,395  

Total  Economic  Impact  ($  Millions)   $31   $448   $8,287   $8,766  

Federal,  State  &  Local  Fiscal  Revenues  ($  Millions)     $4   $51   $900   $955  

Note:  Total  may  not  equal  the  sum  of  all  due  to  rounding.  Source:  The  Washington  Economics  Group,  Inc.  (WEG)  

The  Comprehensive  Economic  Development  Impacts  of  the  Florida  Venture  Forum  to  the  State  of  Florida  

The  Washington  Economics  Group,  Inc.  (WEG)   P a g e |  3  

 § Close   to   70   percent   of   the   jobs   supported   by   the   Forum’s   comprehensive  

activities  are   in   the  broadly  defined  Knowledge-­‐Based  Services  sector.    The  industries  in  this  sector  have  wages  that  are  higher  than  the  State  average.    

n In  conclusion,  the  Forum  is  a  catalyst  for  accelerating  the  economic  development  drive   of   Florida.   Forum   comprehensive   activities   facilitate   the   creation   of   an  innovation   and   high-­‐wage   economy   by   preparing,   coaching   and   linking  entrepreneurs  and  growing  Florida  businesses  with  the  equity  financing  needed  for  sustainable,  scalable  growth.