BICI Organization Description & Rationale

Black Innovation and Competitiveness Initiative
STEMEDUCATION | CAPITALACCESS & INVESTMENT | HIGH-GROWTHENTREPRENEURSHIP

© 2011 BICI

CHALLENGE
How do we connect Black America to the 21st century Innovation Economy?

BICI Bridge to 21st century Innovation Economy
 STEM Education / Workforce Development
 Access to Capital / Establishing Investment Infrastructure
 High-Growth Entrepreneurship / Resources

Contact Johnathan M. Holifield 716.361.9889 | http://blackinnovation.org | johnathan@blackinnovation.org

VISION
The BICI will be the national voice of Black innovation and competitiveness

The BICI will act as a national hub, where citizens:
• Find news and information
• Connect to needed resources
• Access mentoring and capital investment
• Engage in collaborations that empower Black
Americans to succeed in this Age of Innovation
and contribute significantly to the nation’s
productivity


MISSION
The BICI will catalyze exponential growth of Black American prosperity
through increased innovation capacity and economic competitiveness
The BICI will:
• Serve as a catalyst for action
• Serve as a launching platform for new projects and programs
• Serve as a repository of information relating to strengths and
developments in the Innovation Economy
• Empower others in response to inquiries and collaborations
• Aggregate information and warehouse resources
• Provide leadership and leverage efficiencies to increase
innovation capacity and competitiveness

WHAT IS THE BICI?
The Black Innovation and Competitiveness Initiative is a collaborative
and open-innovation platform that fosters solutions-based approaches to
21st century community economic development.

Three Foundation Pillars of the BICI Platform

STEM CAPITAL HIGH-GROWTH
Education Investment Entrepreneurship


APPROACH
The BICI will facilitate a new narrative to inspire free exchange of
innovative ideas among community, business, government and
education leaders, students and entrepreneurs,
with a goal of achieving exponentially greater economic growth
and prosperity throughout Black America.

EXPONENTIALIMPACT
The BICI seeks to leverage existing assets
within Black American communities to
create new opportunities and ensure
competitiveness in the Innovation Economy.


STRATEGY
Promote 21st Century Narrative for Black America – Innovation & Competitiveness

 Social Media & Networking
 Key Partnerships & Engagements
 Events – Forums, Summits & Symposia
 Online – Offline proprietary ecosystem


BICI GOALS
EXPONENTIALIMPACT
 Promote a 21st Century Narrative for Black American
Innovation & Competitiveness
 Penetrate through collaborations with existing influential
resources, including media organizations
 Produce proprietary online-offline entrepreneurial ecosystem
 Punctuate STEM education
 Partner with Black innovators: startups and existing businesses
 Provide access to capital resources


JOBS
Nov. 2010*: Race/Ethnicity Establishment Dynamics

Overall findings:
• Business startups are crucial for job creation.
• The number of jobs created through the expansion of
existing establishments was generally insufficient to
counteract the job destruction due to business deaths
and contractions.
• Minority-owned establishments were more likely to
close than those owned by their White counterparts.

*Data reporting period 2002 - 2006


JOBS: 21st Century
PROBLEMPROBLEMPROBLEMPROBLEMPROBLEMPROBLEMPROBLEMPROBLEMPROBLEMPROBLEMPROBLEMPROBLEM

20th 21st
century century
Black Black
unemployment rate unemployment rate
doubles the overall doubles the overall
jobless rate. jobless rate.

2010 2009 2008 2007 2006 2005 2004 2003 2002 2001

Black 16.0 14.8 10.1 8.3 8.9 10.0 10.4 10.8 10.2 8.6
White 8.7 8.5 5.2 4.1 4.0 4.4 4.8 5.2 5.1 4.2
2000 1999 1998 1997 1996 1995 1994 1993 1992 1991

Black 7.6 8.0 8.9 10.0 10.5 10.4 11.5 13.0 14.2 12.5
White 3.5 3.7 3.9 4.2 4.7 4.9 5.3 6.1 6.6 6.1 PROBLEM

Source: Bureau of Labor Statistics. Annual averages of monthly jobless rates.


JOBS: 20th Century

20th 21st
century century
Black Black
unemployment rate unemployment rate
doubles the overall doubles the overall
jobless rate. jobless rate.

1990 1989 1988 1987 1986 1985 1984 1983 1982 1981

Black 11.4 11.4 11.7 13.0 14.5 15.1 15.9 19.5 18.9 15.6
White 4.8 4.5 4.7 5.3 6.0 6.2 6.5 8.4 8.6 6.7
1980 1979 1978 1977 1976 1975 1974 1973 1972 1971

Black 14.3 12.3 12.8 14.0 14.0 14.8 10.5 9.4 10.4 -----
White 6.3 5.1 5.2 6.2 7.0 7.8 5.0 4.3 5.1 5.4 PROBLEM

Source: BLS (Black unemployment stats stop at 1972. Whites continue back to 1954)


INVESTMENT INFRASTRUCTURE

Venture Capital Industry: 1970 to 2010
Capital Investment = $445 billion +
Companies = 12,655 +

Black America
Disconnected PROBLEM


INVESTMENT INFRASTRUCTURE

ECONOMICIMPACT
OFONEFIRM
First
Investment

$2.6B investments | 450 companies | 128 IPOs | 137 M&As
1969 2011
Rockefeller Family Venture Capital Firm entered the VC industry with investment in Intel in 1969.

Black America remains
CONNECTED infrastructure.
from America’s capital investment

BLACK PRODUCTIVITY

Black-owned businesses
1.9 million*
Revenue
$137B*
Percent of GDP
< 1%
21%

PROBLEM
*2007: Before economic collapse

SBA BUSINESS REPORT
Nov. 2010: Race / Ethnicity Establishment Dynamics
Median HHI Business Density Failure Rate
Household Income # firms per thousand persons Business failures
over 4 years
Blacks $29,691 36 39.3%

Hispanics $33,961 42 33.9%

Asians $53,832 98 32.9%

Whites $46,119 94 29.2% PROBLEM

*Data reporting period 2002 - 2006


U.S. CENSUS 2010 REPORT
Per Capita Business Receipts (data for 2007)
# Businesses Business receipts Population Per Capita
Total in 2007 Total annual gross revenue Estimate # of U.S. citizens Business receipts

Blacks 1.9 million $138B 37 million $3,729
0.8 percent total employment 0.5 percent of all receipts

Hispanics 2.3 million $351B 45.4 million $7,731

Asians 1.6 million $514B 13 million $39,538

Whites 22.6 million $10.2 trillion 224.5 million $45,434
89.3 percent ownership of all 34 percent of all receipts
scientific, tech & construction firms


U.S. CENSUS 2010 REPORT
Per Capita Business Receipts (data for 2007)
Businesses w/ employees Per Capita Business receipts
# businesses / population Total annual gross revenue

Blacks 107,000 0.003 $99B

Hispanics 249,000 0.005 $274.5B

Asians 399,000 0.030 $461B

Whites 4.6 million 0.020 $9.4 trillion


BLACK PRODUCTIVITY

BLACK AMERICA

ANNUAL SPENDING BUSINESS REVENUE

$800B $138B
Family Per Capita
Income Biz Revenue
$30K $3,700 PROBLEM


FROM POVERTY TO PROSPERITY
SOLUTIONSOLUTIONSOLUTIONSOLUTIONSOLUTIONSOLUTIONSOLUTIONSOLUTIONSOLUTIONSOLUTIONSOLUTIONSOLUTION

“ Entrepreneurship holds the key to the future of the developing
world. Entrepreneurship brought me from a state of childhood
poverty to a life of philanthropy. And just as my own experience as
an entrepreneur reaped rewards I never imagined, I believe
“I call
embracing entrepreneurship will enable nations to make a entrepreneurship
‘quantum leap’ from despair to prosperity. the ability to
I soon realized what was missing from our education system. turn dirt and
scrap into gold.”
We don't teach entrepreneurship. Dr. Ir. Ciputra
In more than fifty years in business, I learned not only how to
emerge from poverty, but also how to generate wealth and create
prosperity.
I call entrepreneurship the ability to turn dirt and scrap into gold. I
realized that if the precious competency of entrepreneurship could
lead me to such success, that competency should be shared for the SOLUTION
betterment of the world.
”

STEM EDUCATION

University spinoff companies have the
potential to become high-growth firms, in
some cases creating entire new industries
that not only change our lives but also
generate hundreds of thousands of jobs …

With approximately 60 percent of the nearly $150 billion federal R&D budget funneled
directly to university labs, the Obama administration recognizes that it is imperative
that academic innovation finds a more streamlined path to the marketplace.
Joseph M. DiSimone: Chancellor’s Eminent Professor of Chemistry, University of North Carolina at Chapel Hill

“ … the undeniable fact is that commercializing SOLUTION
innovation leads to job creation …” Kauffman Foundation

CAPITAL INVESTMENT

Entrepreneur Bootstrapping Private Capital

Will work
NEED =
for funding

Avg. investment: $191K

According to a 2009 Global Insight The Angel Capital Education Foundation (ACEF)
study, venture-backed companies estimates that about 10,000 accredited
accounted for 12.1 million jobs investors now belong to 265 groups that play a
and $2.9 trillion in revenue in the critical role in the deal flow in their
United States in 2008. communities.
National Venture Capital Association (NVCA.org)
SOLUTION


HIGH-GROWTH ENTREPRENEURS

Entrepreneur Startups = Jobs

Will create
job growth &
wealth
1% = 40%
In any given year, the top-performing 1 percent
of firms generate roughly 40 percent of new
job creation.
Kauffman Foundation

SOLUTION



STEM CAPITAL ACCESS HIGH GROWTH
EDUCATION INVESTMENT ENTREPRENEURSHIP

Got
investment?

fundraising

SOLUTION

A new economic visionvoiceparadigm for 21st century Black America


connectconnectconnectconnectconnectconnectconnectconnectconnectconnectconnect

innovation
economy 2015
How do we CONNECT quickly?
STEM:
< 11% STEM field companies are minority-owned

CAPITAL:
Black investors represent less than 1% of all angels and venture capitalists

HIGH-GROWTH ENTREPRENEURS: CONNECT

Black entrepreneurs received 1% of tech investments in 2010



 1st National Forum on Black Angels and Entrepreneurship
 Partnership with Rutgers Business School

 BICI Innovation & Competitiveness themed Media Institutes
 STEM Education, Capital Access, High Growth Entrepreneurship
 Partnership with National Association of Black Journalists (NABJ)

 1st National Summit on Black Innovation and Competitiveness
Charting a new course for Black America in the 21st century
Innovation Economy
 Partnership with the White House, US Federal Agencies and private sector
stakeholders


Proprietary online-offline entrepreneurial ecosystem

Innovation E-Academy* Deal Flow Branded
Nation Parties
Establishes a Fee-based online Fee-based Capitalizing upon
free online modular step-by- access to social gatherings,
network step institute for ecosystem. Vets Party With
specifically entrepreneurs to entrepreneurs Purpose! will
targeting access a wide and connects provide pitch
individuals who range of online- qualified deal sessions at venues
consider offline resources flow with angel hosted by high net
themselves to move from investors. worth volunteers.
innovators. idea to funded Establishes /
fruition. grows angel
network.

*Customizable online e-Academy plug-ins will be sold to institutional clients


PUNCTUATING STEM EDUCATION

• STEM Symposiums
• Traveling program to HBCUs

• STEM Speakers
• Speakers bureau

• STEM Pitch-to-Angels
• Contests (online & offline)

• STEM HBCU Coalition
• Federal grants
• Commercialization of ideas
• Community outreach / impact


BLACK INNOVATION

Inviting
• Entrepreneurs can apply to be considered for an invitation to pitch a
10-minute powerpoint presentation with a 5-minute Q&A at a Party
With Purpose! in their region.
• Innovation Nation members will receive discounted opportunities to
attend BICI conferences and forums.

Inspiring
• The BICI will regularly feature successful entrepreneurs and investors
on our website.
• Live online weekly town halls will be made available to members of the
Innovation Nation.

Incenting
• The BICI will host pitch contests at its conferences and forums.
• The BICI will feature on the website funded entrepreneurs from Party
With Purpose! venues around the nation.


ACCESS TO CAPITAL

Deal Flow
• Entrepreneurs who complete the e-Academy will progress directly into the BICI Deal
Flow Stage. This arena is a collaboration with angels recruited by the BICI.
• Entrepreneurs who seek direct access to the Deal Flow Stage are invited to apply to
the DFS Vetting Committee for selection to present to angels. Monthly events will
bring together angels and entrepreneurs seeking investments.

Party With Purpose!
• The BICI will provide an easy online signup for individuals who volunteer to become
a PWP! host. The commitment is to produce a minimum of three PWP! gatherings
over the course of one year. Hosts agree to invite their own network and provide the
venue. The BICI will ensure a turnkey pitch program, including vetted entrepreneurs
for the party. Hosts may also provide their own selected entrepreneurs to pitch.

Forums, Conferences, Contests
• The BICI will bring together entrepreneurs and angels at our events in collaboration
with partners.


BICI NEEDS

National Steering Committee Members
Guiding the vision of the collaborative effort with the White House

Sponsors: Forums, Conferences, Summit
Underwriting the venues that enable the BICI to provide substantive
programming with leading entrepreneurs and investors as panelists

Development Funds
Production of the online-offline ecosystem platform
BICI Operating costs


ABOUTUS

BICITEAM The Co-founders

Johnathan M. Holified Chad Womack, Ph.D Mike Green

Click here for bios


STEMEDUCATION | CAPITALACCESS & INVESTMENT | HIGH-GROWTHENTREPRENEURSHIP

BICI Organization Description & Rationale

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