John Michitson of the Haverhill City Council presented a proposal to build up the region's innovation ecosystem and startup community. The proposal requested up to $150K to strengthen the Haverhill Hardware Horizons Challenge startup competition, build out a manufacturing accelerator and mentoring lab, and develop an incubator space and online mentoring capabilities. The funds would support professional staff, prizes, facility leases and administration. An additional $246K in in-kind contributions from local companies and individuals was also pledged to support the initiative.

1. John Michitson
Haverhill City Council
October 1, 2013

2.  Build up regional start-up ecosystems and communities of
innovation
◦ To bring 21st century economic opportunities to underserved
regions
 Building a strong mentoring capability is a key component
◦ Entrepreneurs and startups gain knowledge from successful
business executives, serial entrepreneurs, investors, and other
industry leaders
◦ Example topics:
 Understanding the marketplace;
 Attracting capital;
 Finding legal, accounting, and other support services;
 Navigating the trajectory from startup to growth company
 Up to $150K for winners
 Haverhill submitted proposal last week
 Uncertain when winners will be announced

3. A Cluster of Entrepreneurs
and Talented Workers
A Robust and Engaged
Education Network and
Mentors
Collaborative Business
Practices and Tools
Access to Capital
Resources, and Local and
Global Markets
Vision,
Leadership &
Social Capital
Creative Facilities for
Rapid Prototyping &
Collaboration
Critical Elements of Innovation Ecosystem

4. Of 134 Massachusetts municipalities surveyed for concentration of
manufacturing jobs, Haverhill ranked #85, with 44 jobs in
manufacturing per 1000 Residents. How do we compare with some
other nearby communities?
 Andover #1 (340/1000…Nearly 8 times Haverhill)
 Wilmington #3 (291/1000…6.6 times Haverhill)
 Bedford #9 (177/1000…4 times Haverhill)
 Billerica #12 (138/1000…3.2 times Haverhill)
 Chelmsford #16 (122/1000…2.8 times Haverhill)
 Amesbury #33
 New Bedford #38
 Ipswich #42
 Lawrence #60 (64/1000…45% higher than Haverhill)
 HAVERHILL #85 (44/1000)
 Lowell/ Methuen (37/1000…19% below Haverhill)
We are an underserved
region.
Source: “Staying Power II:
A Report Card on
Manufacturing in
Massachusetts 2012”

5.  Manufacturing companies and other businesses follow the
startups to be near “the ideas”
 Goal: create 1000 new jobs and attract $3M in new revenue to
Haverhill’s industrial base by 2020
Computer & Research
Drive:
• 2 Lots
• Each Lot is $250K
Recurring Revenue
Opportunity
Hilldale Business
Park:
• Several
undeveloped
Lots
• MVPC Priority
Area for
Development
Example
Opportunities

6.  Creativity of the proposed mentoring
approach in addressing your region’s unmet
need
 Serving its broader innovation ecosystem
◦ Advance, or scale-up activities that embed
mentoring as a key support of broader value-add
efforts
 Aligning with other innovation-driven
economic development efforts in your area
◦ Particularly those already supported by state
investments

7. The Haverhill Team (H³C)

8.  Strengthen the Haverhill Hardware Horizons Challenge (H³C) startup
competition ($10K)
◦ To be a sustainable program to attract and retain entrepreneurs and startups
◦ Entrepreneurs and startups are needed as a pre-requisite to mentoring;
 Build upon the twenty-five mentors that participated in the H³C;
 Build-out the unique Lightspeed MFG manufacturing accelerator and
mentoring Lab
◦ Provided top three winners in H³C with up to a half dozen free printed circuit board
versions culminating with a working prototype ready for production;
 Build-out the Burgess Business Center incubator and mentoring Lab for
face to face collaboration and mentor training
◦ Result – in 2 years using innovation-based marketing, attracted 32 startups and
small companies, occupying over 30,000 sq. ft. in its building;
 Develop an on-line mentor capability based on open innovation
◦ “Ask the audience”;
 $246K in-kind matching “funds”

9. Snapshot of Mentoring Capability Build-Out
H³C Startup Competition
• $25K prize to winner
• Professional Partnering Advisor
• Professional Marketing for
contest & recruiting businesses
to Haverhill
Burgess Business Center
Incubator & Mentoring
Center
• 2500 sq. ft. of leased space for
mentoring center (to start with)
• Unique shared space concept
for sustainability (startups,
manufacturing companies &
mentors co-located)
• Professional mentoring
development manager
• Mentor training
• On-line mentoring (ask the
crowd) (in-kind)
Lightspeed MFG
• Professional manufacturing
advisor
• Capital Equipment
Improvement (in-kind)
• Purchase of Bare Printed Circuit
Boards and Tooling (in-kind)
• Purchase of Component Level
Packages (in-kind)

10. Mentoring Development Plan
• Catalogue all potential sources of mentors, including:
– H³C mentors,
– Chamber of commerce,
– Local companies such as Lightspeed and Burgess tenants,
– Retirees in Haverhill and region;
• Develop communication strategies to raise awareness of the project
and identify prospective mentors and start-ups;
• Ensure that this project is visible in key networks, including
MassChallenge and Merrimack Valley Sandbox;
• Develop strategies to maximize creative interaction in physical
"workspace clusters"
• Define and organize the entry process for mentors and start-ups--
intake interview, orientation, matching process, and ongoing
training opportunities (in co-ordination with NECC);

11. [Source: PariSoma in San Francisco]

12. Backup

13.  Maximum grant award: $150K
◦ Professional mentoring development manager: $25K
◦ Professional partnering advisor: $25K
◦ Professional manufacturing advisor: $25K
◦ Marketing consultant: $20K
◦ Lease floor space (1 year): $15K
◦ Prizes in next H³C startup competition: $25K
◦ Administration: $15K
 In-kind matches: $246K
◦ Lightspeed MFG: $163K
◦ Inkling Inc.: $25K
◦ Jim DiBurro: $25K
◦ John Michitson: $25K
◦ Randy Sablich: $7.5K