Ithaca Entreprenuerial Hub Feasibility Analysis

TOMPKINS COUNTY AREA
DEVELOPMENT ENTREPRENEURIAL
HUB FEASIBILITY ANALYSIS

Emile Chin-Dickey // Josh Robbins

Nov 13 2012

Who Are We?
1

Josh Emile
• Co-founder of Calle • Co-founder of ZeroEnergy
• Raised $3M in VC Design and freegreen.com

• 2nd-year MBA student at • 2nd-year MBA student at
Johnson Johnson
• Roy H. Park Fellow • Roy H. Park Fellow

E-mail: jrr336@cornell.edu E-mail: ec237@cornell.edu
As Entrepreneurs, we’re interested in how entrepreneurial communities
form
Analysis &
Purpose of Study Research Method Framework Recommendations
Findings

The purpose of this study is to understand the feasibility
of a community-based entrepreneurial hub in Ithaca
2

Situation
Ithaca is home to an entrepreneurial community
featuring several universities, entrepreneurially
minded students, and a number of start-ups

Complication

Entrepreneurs are drawn to other cities (outside of
Ithaca, NY) in pursuit of resources, money, and markets

Key Question

What characteristics are necessary to develop and
sustain an entrepreneurial hub in Ithaca, NY?

Analysis &
Findings

Data gathered for the study was conducted following a
three-step process of secondary and primary research
3

Interviews Focus Groups Survey

Interviews Focus Groups Quantitative Survey
What did we do? What did we do? What did we do?
• 10 accelerators and Two focus groups: Two surveys:
incubators, 1. 5-person group 1.Local students and
• 10 Ithaca entrepreneurs 2. 20-person group entrepreneurs (N=57)
2.Incubator/Accelerator
alumni (N=16)

What did it reveal? What did it reveal?
What did it reveal? Broader attitudes concerning Quantified perceptions and
The business and operating the Ithaca entrepreneurship attitudes of entrepreneurship
model of accelerators and community, resources, perceiv in Ithaca and actual benefits
incubators, the motivations for ed strengths and weaknesses of participating in an
joining them, and major issues accelerator
confronting operators Analysis &
Findings

Four focus areas serve as the basis for our analysis and
final recommendation
4

1
Community

• Who are the key entrepreneur groups?
• How will the groups interact?

2 3 4
Industry Focus Operating Model
Programming
• What unique assets • What model best suits
• What training is
exist? Ithaca?
needed?
• What industry should • How will it accomplish
• By what method will
be the focus? long-term
programming occur?
sustainability?

Analysis &
Findings

Community: Ithaca’s silos of entrepreneurship activity do
not interact, limiting benefits to members
5

Ithaca Entrepreneurship Community
Ithaca
Cornell Ithaca College
Entrepreneurs
• Talent • Talent • Talent
• Networks • Networks • Networks
• Technical • Experience
Research
• Assets
Silos do not pool collective resources to benefit
individual ventures

Pros of Ithaca Cons of Ithaca
• Lack of “Tight community”
• Lack of connection between student &
• Quality of Life
professional groups
• Low cost of living
• No single source of local entrepreneur
• Cutting-edge science-based research
info
• Lack channels for linking up
Analysis &
Findings

Industry Focus: Ithaca’s entrepreneurial strengths lie in
software and science-based technology companies
6

Talent Interest
(students &
entrepreneurs)
• Software
• Physical and Life
Sciences Unique Centers
(GreenTech, NanoTe
ch, BioTech) • Center for Nanoscale
Systems
Unique Assets • Nanobiotechnology
Physical & Life Science Center
Companies • Bioscience Incubator
• Cornell World
• Kionix
Research Ranking
• Zetroz
• Rheonix
• Advion

Analysis &
Findings

Operating Model: Three operating model options exist as
potential entrepreneurial community hubs
7

High
Mentorshi
p Low

Real Investor
Estate s
Shared Work Space Incubators (Real Accelerators (Investor)
Estate)
Business • Charge start-ups • Charge start-ups • Investment (VC or Angel)
Model rent/fee rent/fee
Equity Stake • None • None • Equity stake (~5-6%)
Time frame • Flexible, low • 6+ months • 3-6 months
commitment
Analysis &
Programming • Some education • Some education Findings • Mentoring w/deadline

Operating Model: The New York Region (Ithaca’s
competitive landscape) has representation within each
model type
8
High

eLab
Mentorship

Requires
constant
investment
into tenants
Low

(typically VC
Real Estate Investors or angel
backed)
Analysis &
Findings

Operating Model: Physical work space is a requirement
for an entrepreneurial hub
9

Estimated use of physical space (% of time)
Working - coding, selling, etc.
Meeting with mentors
Other (Please indicate)
Brainstorming
Access to wifi
Interactions w/entrepreneurs Time used for
Presenting/Pitching 46% interpersonal activities
Conference calls
Administrative tasks
Meeting with customers

0% 5% 10% 15% 20% 25% 30% 35%

Physical space is Location should be
80% 65%
absolutely necessary downtown

Analysis &
Findings

Operating Model: The real estate model is not self-
sustaining and would require additional thru year 5
10

5K Sq. Foot Building 20K Sq. Foot Building
• Payroll $75K per Year $135K per
Key • Building FREE Year
FREE
Assumption • CostCapacity
Op. FULL FULL
s • Sq. Ft. per 300 sq. ft. 300 sq. ft.
• tenant
Rent Rate $13; 2% annual increase $13; 2% annual increase
Qty. of
Tenants 12 50
Needed
Estimated 5
Yr. Cash
Shortfall
<$195,000> $68,000
5K Sq. Foot building cannot break even due to space constraints;
however, a 20K Sq. Foot building requires more tenants than are likely to
demand space
Analysis &
Findings

Operating Model: Physical work space should have
additional services/benefits beyond being a place to
work
11

Programs considered & joined

Shared work-space out-of-state

Shared work-space in-state

Accelerators out-of-state

Accelerators in-state

Incubators out-of-state

Incubators in-state

0 1 2 3 4 5 6 7 8 9

Joined Considered

Of those who considered programs, ALL chose incubators/accelerators
because of perceived additional benefits/services
Analysis &
Findings

Programming: Entrepreneurs are most interested in
developing capital, mentorship, networks, professional
services, and talent
12

Most important aspects of a business incubator/accelerator
Access to capital
Mentoring
Influential people
Access to professional services
Availability of talent
Network of entrepreneurs
Office space
Physical location
Entrepreneurial eco-system
Programming
Access to tech or ideas
Accountability
Demo day
Cost of living
Access to entrepreneurial info
Cohesiveness of community

0 5 10 15 20 25 30 35 40
Number of Respondents (multi-answer)

Analysis &
Findings

Programming: Opportunity exists to improve on “Top 5”
aspects in Ithaca
13

Ithaca Strengths & Weaknesses
Cost of living
Access to tech/ideas
Office space
Programming
Mentoring
Influential people
Physical location
Accountability
Demo day
Access to capital

1 2 3 4 5 6Strength 7
Weakness
Experienced Student

Analysis &
Findings

Recommendations 1of 2: Bridge interaction between
entrepreneurial groups and leverage Ithaca’s expertise
14

Recommendations Risks Mitigations
1 • Seed board with
• Form entrepreneurship influential members from
• Students won’t attend
Community

board with each community
local events and vice-
representatives from • Emphasize
versa
each silo growing/tapping diverse
• Skepticism in value-add
• Formalize networks
of interacting with other
communication channels • Publicize successful
groups
across each silo cross-silo connections /
referrals
2
• Emphasize software and
• Start-ups leave Ithaca for • Don’t devote resources
physical sciences
Industry

NYC or Silicon Valley towards competing
• Build interest groups
around industry focuses • Lack critical mass of against NYC or SV hubs
companies seeking • Set, announce, and
• Organize investor demo
capital promote a deadline for
day around industry
the demo day
cluster

Analysis &
Findings

Recommendations 2 of 2: Identify funding for building
and develop programming around entrepreneurial
competitions
15

Recommendations Risks Mitigations
3
• Identify source(s) of gov’t • Supplemental financing
funding for initial • Inability to finance cash should cover 5+ years
Op Model

purchase short fall • Offer incentives to
• Identify financing to for • Inability to acquire anchor tenants
operating cash shortfall necessary qty. of tenants • Actively promote space
• Start with real estate in surrounding cities
model

4
• Build network of 30+
Programming

• Expand mentor network
mentors • Lack of mentors with
beyond residents in
• Develop programming targeted experience
Ithaca
around demo days & • Teams not achieving
• Develop selection criteria
entrepreneur success as measured by
to ensure teams surpass
competitions with cash cash receipts
desired hurdle
prizes

Analysis &
Findings

Fully developing the four focus areas is essential to
create a sustainable entrepreneurial hub in Ithaca
16

Community

• Formal ties across silos via Entrepreneurship Board

Industry Focus Operating Model Programming

• Build on existing • Begin with real estate • Utilize mentors and
Nanotech, CleanTech, model in downtown progression training
and Biotech assets locale with deadlines

Analysis &
Purpose of Study Research Method Framework Recommendation
Findings

17 Appendix

Detailed Executive Summary
Detailed Study Methodology
Financial Model 1: 5K Square Foot Building
Financial Model 2: 20K Square Foot Building
Survey 1: Student & Experienced
Entrepreneurs
Survey 2: Incubator/Accelerator Alum

Detailed Executive Summary
18

Multiple • Cornell University and Ithaca College have several business plan
universities and competitions, entrepreneurial activities, and clubs encouraging students to start businesses
• These institutions perform cutting edge technical research that yield discoveries with
entrepreneurial
commercial potential
efforts exist in • An active community of entrepreneurs start companies in Ithaca and surrounding cities
Tompkins • The research facilities and relatively low cost of living are a catalyst for entrepreneurial
County, NY endeavors

Entrepreneurs are • Other cities offer more resources, especially investors, which entice entrepreneurs to leave
drawn to other Ithaca
• The technology developed at universities has a longer development cycle, which requires
cities in pursuit of
specific types of funding to grow
resources, money • Ithaca has a small-city culture centered around emphasizing being local, being green, & being
, and markets natural

What characteristics are necessary to develop and sustain an entrepreneurial hub in Tompkins County, NY?

4 key areas must
be developed for • Community: Formalize communication and links among distinct groups
• Industry Focus: Software and physical sciences
an entrepreneurial • Operating Model: Begin with real estate that can eventually add investors
hub to be • Programming: Mentors coach towards entrepreneurial competitions providing cash prizes
successful

Detailed Study methodology
19

Research Goal: This study researched and recommended a model for a tech business incubator
facility for Ithaca to implement. The aim is to attract and retain talent within Ithaca’s entrepreneurial
ecosystem.

Data Collection Methods: This study included several primary research methods: one-on-one
interviews, focus group interviews, and survey data.

These methods were used to varying degrees as described below:

Operating Model Research: This research
covered business models associated with
Operating Model Interviews
entrepreneurial hubs (shared
 Techstars Boulder (Colorado)
workspaces, accelerators, incubators) in other
 Madison Enterprise Center (Wisconsin)
cities and towns. Facilities were selected to as
 Betaspring (Rhode Island)
closely mimic Ithaca characteristics: small-
 BoomStartUp (Utah)
medium sized towns featuring large research
 Business Enterprise Center (Oregon)
academic institutions. With this data, we
 StartFast Venture (New York)
developed hypotheses about facility efficacy to
 Syracuse Tech Garden (New York
test perceptions towards such facilities in Ithaca.
 Business Incubator (Colorado)

 Brandery (Ohio)

 Rock Health Accelerator (San

Francisco/Boston)

Detailed Study methodology (continued)
20

Local Entrepreneur & Student Research: This Focus Group B:
research covered entrepreneurs that had and  Alex Fisher, Glycobia
students that plan to start/ed companies in  Charles Hamilton, Challenge
Ithaca and was geared towards collecting  Alex Hagen, Weaver Wind Energy

attitudes and perspectives from these groups  Samantha Abrams, Emmy’s Organics

Focus Group A: Interviews
 Elisa Miller-Out, Singlebrook  Eric Eisenhut
 Judith Lemke, CareFusion  Brad Treat, Mezmeriz

 Morgan Lemke, TraceIT  Tom Schryver, EiR Cornell

 Adeesha Ekanayake, TraceIT  Zach Shulman, CVF

 Dounan Hu IT, Tech Consultant  Jon Greene, Widetronix
 Oliver Zanen, Synceros  David Bloom, Ordr.in

 Greg Kops, thinktopography
 Danielle Klock, thinktopography Survey
 Justin Lee RevoPT 1. Elisa Miller-Out's list-serve

 Mike Wehrhahn, RevoPT 2. Ithaca Entrepreneurs list maintained by Brad

 Fargo Balliett, chillmonkey.com Treat
 Armando Diaz chillmonkey.com 3. EVCC Facebook group

 Bob Parks educational dictionary software 4. Cornell Entrepreneurship Listserve

 Nathan Reimer Reimer Consulting 5. Cornell Popshop Listserve
 Sanjay Behuria, Peter Weisz Engineering 6. Nationwide incubators/accelerators

 Matthew Clark, Gorges

 Don Ellis, Gorges

Scenario 1: 5K Sq. Feet Building Model
21

REAL ESTATE MODEL - Building Size 5K Sq Feet
Pro Forma Profit and Loss Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Revenues/Donations
Rent Income 48,750.00 49,725.00 50,719.50 51,733.89 52,768.57 53,823.94 54,900.42 55,998.43 57,118.39 58,260.76
Donations
Sponsorship
Government Funding 150,000.00
Net Return from Exit - - - - - - - - - -
150,000.00 48,750.00 49,725.00 50,719.50 51,733.89 52,768.57 53,823.94 54,900.42 55,998.43 57,118.39 58,260.76

Operating Costs
Lease/Mortgage Payments - - - - - - - - - - -
Payroll/Staffing - 75,000.00 75,000.00 75,000.00 75,000.00 75,000.00 75,000.00 75,000.00 75,000.00 75,000.00 75,000.00
Meals/Entertainment/Events - 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00
Utilities - 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00
Office Supplies - 4,800.00 4,800.00 4,800.00 4,800.00 4,800.00 4,800.00 4,800.00 4,800.00 4,800.00 4,800.00
Accounting/Legal Fees - 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00
Depreciation - 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00
Founders Stipend - - - - - - - - - - -
One-time Set-up Costs* 150,000.00 - - - - - - - - - -
150,000.00 104,800.00 104,800.00 104,800.00 104,800.00 104,800.00 104,800.00 104,800.00 104,800.00 104,800.00 104,800.00

Net Income - (56,050.00) (55,075.00) (54,080.50) (53,066.11) (52,031.43) (50,976.06) (49,899.58) (48,801.57) (47,681.61) (46,539.24)

Cumulative Income(Loss) - (56,050.00) (111,125.00) (165,205.50) (218,271.61) (270,303.04) (321,279.10) (371,178.69) (419,980.26) (467,661.86) (514,201.10)

Annual Net Cash Surplus(Shortfall) - (41,050.00) (40,075.00) (39,080.50) (38,066.11) (37,031.43) (35,976.06) (34,899.58) (33,801.57) (32,681.61) (31,539.24)

* See Start-up Costs Tab for Details

Metrics
Avg # of Tenants - 12 12 12 12 12 12 12 12 12 12
Avg Square Foot Per Team - 300 300 300 300 300 300 300 300 300 300

Scenario 2: 20K Sq. Feet Building Model
22

REAL ESTATE MODEL - Building Size 20K Sq Feet
Pro Forma Profit and Loss Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Revenues/Donations
Rent Income 195,000.00 198,900.00 202,878.00 206,935.56 211,074.27 215,295.76 219,601.67 223,993.71 228,473.58 233,043.05
Donations
Sponsorship
Government Funding 600,000.00
Net Return from Exit - - - - - - - - - -
600,000.00 195,000.00 198,900.00 202,878.00 206,935.56 211,074.27 215,295.76 219,601.67 223,993.71 228,473.58 233,043.05

Operating Costs
Lease/Mortgage Payments - - - - - - - - - - -
Payroll/Staffing - 135,000.00 135,000.00 135,000.00 135,000.00 135,000.00 135,000.00 135,000.00 135,000.00 135,000.00 135,000.00
Meals/Entertainment/Events - 12,500.00 12,500.00 12,500.00 12,500.00 12,500.00 12,500.00 12,500.00 12,500.00 12,500.00 12,500.00
Utilities - 20,000.00 20,000.00 20,000.00 20,000.00 20,000.00 20,000.00 20,000.00 20,000.00 20,000.00 20,000.00
Office Supplies - 20,000.00 20,000.00 20,000.00 20,000.00 20,000.00 20,000.00 20,000.00 20,000.00 20,000.00 20,000.00
Accounting/Legal Fees - 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00
Depreciation - 60,000.00 60,000.00 60,000.00 60,000.00 60,000.00 60,000.00 60,000.00 60,000.00 60,000.00 60,000.00
Founders Stipend - - - - - - - - - - -
One-time Set-up Costs* 600,000.00 - - - - - - - - - -
600,000.00 249,500.00 249,500.00 249,500.00 249,500.00 249,500.00 249,500.00 249,500.00 249,500.00 249,500.00 249,500.00

Net Income - (54,500.00) (50,600.00) (46,622.00) (42,564.44) (38,425.73) (34,204.24) (29,898.33) (25,506.29) (21,026.42) (16,456.95)

Cumulative Income(Loss) - (54,500.00) (105,100.00) (151,722.00) (194,286.44) (232,712.17) (266,916.41) (296,814.74) (322,321.04) (343,347.46) (359,804.41)

Annual Net Cash Surplus(Shortfall) - 5,500.00 9,400.00 13,378.00 17,435.56 21,574.27 25,795.76 30,101.67 34,493.71 38,973.58 43,543.05

* See Start-up Costs Tab for Details

Metrics
Avg # of Tenants - 50 50 50 50 50 50 50 50 50 50
Avg Square Foot Per Team - 300 300 300 300 300 300 300 300 300 300

Survey Results: Student and Experienced
23
Entrepreneurs

Survey 1: Student and Experienced Entrepreneurs
24

1. Please select the option that best describes you.

Experienced Entrepreneur

Student Entrepreneur

Incubator/Accelerator Alumn

0 5 10 15 20 25 30 35 40

N=82 Survey continued on next page

(continued)
25

2. In which industry are you most likely to start/have started a business? Check all that apply

Web apps
Mobile
Social Media
Enterprise Software
Social Enterprise
Retail
Green Tech
Consulting
Hi Tech
Bio-tech
Games
Other
Nanotech
Medical Devices
CPG

0 5 10 15 20 25


(continued)
26

3. If you were to apply for a business incubator/accelerator (described at the beginning of the
survey), which of the following characteristics would you consider when making the decision?
Select up to 3 characteristics.

Expertise of program backers
Angel/VC accessibility
Program success rate
Proximity to other entrepreneurs
Critical mass of entrepreneur community
Programming
Desirable city lifestyle
Other
Easiest application
Shortest term

0 5 10 15 20 25 30 35 40


(continued)
27

4. If you were to apply for a business incubator/accelerator (described at the beginning of the
survey), which of the following characteristics would you consider when making the decision?
Select up to 3 characteristics.
Access to capital

Influential people


Office space


Access to tech or ideas

Demo day



0 5 10 15 20 25 30 35 40


(continued)
28

5. According to your perception, rank Ithaca’s strengths AND weaknesses of each
entrepreneurial aspect below.
Access to tech/ideas
Cost of living
Access to entrepreneurial information
Programming
Influential people
Mentoring
Office space
Physical location
Demo day
Accountability
Access to capital

0 1 2 3 4 5 6


(continued)
29

6. Please rate how important it is for you to be connected with Cornell students, Ithaca College
students, and local entrepreneurs.

Scale of 1 to 7

1 2 3 4 5 6 7


(continued)
30

7. Please rate how important it is for you to obtain entrepreneurial information about people in
the Ithaca area who are outside your current entrepreneur circle.

Scale of 1 to 7

1 2 3 4 5 6 7


(continued)
31

8. According to your perception, please rate the quality of mentors in Ithaca.

Scale of 1 to 7

1 2 3 4 5 6 7


(continued)
32

9. Below is a list of reasons to choose to locate your business in a specific location. Please
select up to 5 of the most important characteristics.
Access to talent pool
Access to mentors
Access to capital
Desirable place to live
Proximity customers
Low cost of living
Market to test product
Affordable professional services
Existing professional network
Close to family
Leisure activities
Industry expertise
Proximity to suppliers
Hub of distribution

0 5 10 15 20 25 30 35 40


(continued)
33

10. In terms of location within a desirable city, which would you prefer?

Downtown

Suburbs

Other

0 5 10 15 20 25 30 35


(continued)
34

11. Which of the following product development needs are missing from the Ithaca
entrepreneur scene? Select all that apply.

Talent for coding

Other

Wet-lab space

Nothing is missing

Other technical talent

Other physical asset

0 2 4 6 8 10 12 14 16 18 20


(continued)
35

12. Rank the size of impact a community-based (i.e. not affiliated with Cornell, Ithaca
College, or another academic institution) incubator would have on the Ithaca-Tompkins region.
Scale of 1 to 4

1 1.5 2 2.5 3 3.5 4


(continued)
36

13. Please indicate your age.

41+

36 to 40

31 to 35

26 to 30

21 to 25

16 to 20

0 2 4 6 8 10 12 14


(continued)
37

14. Please indicate the level of school you have completed.

Doctorate degree

Graduate degree

Senior in college

Junior in college

Sophomore in college

Freshman in college

High school

0 5 10 15 20 25


(continued)
38

15. Please indicate your field of study in school.

Business
(marketing, finance, accounting, operations, etc.)

Computer Science/Engineering

Other Non-Technical (Please Indicate)

Other Technical/Math/Science

Liberal Arts

Economics

Physics/Chemistry/Life Sciences

0 2 4 6 8 10 12 14 16 18


(continued)
39

16. Please indicate where you lived before coming to Ithaca, NY for school or another reason.

Mid-Atlantic (besides Ithaca-Tompkins region, NY)

West

Outside the lower 48 U.S. States (Please indicate)

New England

Rocky Mountain Region

Pacific Northwest

South

Midwest

0 5 10 15 20 25


(continued)
40

17. If you are a student or plan on moving in the next 1 to 4 years, please indicate where you
plan on living.


Don't know

Ithaca-Tompkins region, NY

New England

West

Outside the lower 48 U.S. States (Please indicate)

Rocky Mountain Region

South

0 2 4 6 8 10 12 14


(continued)
41

18. Please indicate where you currently live.

Ithaca-Tompkins region, NY

New England


Pacific Southwest

Pacific Northwest

0 5 10 15 20 25 30 35 40 45


(continued)
42

19 (1 of 3). Is there anything you would like us to know about your views concerning a
community based incubator/accelerator in Ithaca, NY?

(Note: each bullet is a separate respondent)

• Cost of living, taxes and electric are VERY high in Tompkins County and NY state as
compared to Syracuse and outside of NY. This is the biggest detterant. I would never
incorporate in NY state.
• Somehow connect it to other hubs -- SV, NYC, Boston, Denver, etc
• Access to NYC
• get it done :)
• This is sorely needed and will be greatly appreciated when launched.
• I'm not sure what a wet-lab is so it was difficult to answer that question. I think a demo day
that complements e@c week would be excellent to attract talent and investors. The demo
day and e@c should be for all Cornell schools instead of just Johnson. I believe Cornell's
tech transfer program is inhibiting the transfer of tech with their current royalty policies.
What I would like to see most is an accelerator program that focuses on systems and design
thinking principles. Additionally, the accelerator would foster creativity and have the means
to take an idea from concept to tangible product. Creating a tangible products requires
design and manufacturing capabilities currently not found anywhere on Cornell's campus.
The space must be able to support work outside of computer science related businesses.

(continued)
43


• I think for a place like this to work, especially with tons of students being part of it, that it
would require or offer a living space for student entrepreneurs. I personally would have
made it to many more events if they had been in the downstairs of my building, as opposed
to having to walk 30 mins to campus. It also helps create a very strong network of
individuals and keeps everyone accountable.
• I think it's important for the municipalities to fully support local independently owned
businesses, and that a community based incubator/accelerator would best be created with
the knowledge and support of the local municipalities.
• Great idea, I would love to contribute as a mentor and quite possibly a participant. Would be
great to see an environment that encourages more then just software only projects. Possibly
an intersection of a fully capable makerspace with an incubator
• It is difficult to accommodate multiple industries. Likely would need to keep it basic, but prior
attempts failed because they offered little.
• Given the size of Ithaca, the net effect of a community based incubator would be huge.
Additionally, having a community based incubator not directly tied to a university makes for a
more inclusive environment while still providing amply opportunities for all students located
in town.

(continued)
44


• This needs to work with other incubators in the area (Binghamton, Tech
Garden, HTR, Buffalo) and approach things regionally. If the desire is to be
competitive, instead of collaborative, with the other regional options, this is a non-starter.
• I worked at a biotech startup in Ithaca for several years, and I knew of several people who
were interested in working on their own ideas for companies (biotech, white biotech/green
tech), but there was almost no support for such activities outside of Cornell facilities. I
ended up moving to the SF Bay Area because of it. Ithaca needs a community based
incubator/accelerator where innovators can demonstrate proof of principle, and get the
mentoring/administrative support they need to secure additional funding (whether from
angels or grants).

Survey continued on next page

45 Survey Results: Incubator/Accelerator Alumni

Survey 2: Incubator and Accelerator Alumni
46

1. Below is a list of reasons for deciding to apply to an incubator/accelerator. Please check all
that apply.
Needed help raising money 82%

Needed office space 82%

Recommend by friend/mentor 64%

Needed guidance to prioritize next steps for my business 64%

Recognition that comes with high-profile incubators/accelerators 55%

Needed business plan writing help 55%

Needed help developing my product 45%

Needed help finding a management team 45%

Capital infusion upon induction 36%

Networking opportunities with similar stage companies 27%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

N=20

Survey 2: Incubator and Accelerator Alumni (continued)
47

2. Below is a list of incubator/accelerator options. Please indicate those considered. Select all
that apply.






Incubators in-state

0 1 2 3 4 5 6 7 8 9
Frequency of Responses

N=13

48

3. Below is a list of incubator/accelerator options. Please indicate the 1 you selected.






Incubators in-state

0 1 2 3 4 5 6
Frequency of Responses


49

4. Where was/is the incubator/accelerator located within the city?

Downtown

Suburb (outskirts)

0 2 4 6 8 10 12 14


50

5. How did you hear about the incubator/accelerator you attend(ed)? Select all that apply.

Recommendation from friend/mentor

Word of mouth

Online


Conference

Email

0 1 2 3 4 5 6 7 8 9 10


51

6. Do you feel it was necessary to have a dedicated physical space or could the same results
have been accomplished using coffee shops, libraries, universities, local businesses, etc.?

No
20%

Yes
80%


52

7. Please estimate how you used the physical space. You must allocate 100%.

Working - coding, selling, etc. 30%

Meeting with mentors 14%

Access to wifi 13%

Brainstorming with team 12%

Random meetings/interactions with other entrepreneur
9%
occupants
Other (Please indicate) 6%

Meeting with customers 5%

Presenting (using projector) 5%

Administrative tasks (printing, photocopying, faxing) 4%

Conference calls 3%

0% 5% 10% 15% 20% 25% 30% 35%


53

8. How long were you part of the incubator/accelerator?

3+ years

More than 2 years, up to 3 years

More than 1 year, up to 2 years

More than 9 months, up to 1 year

More than 6 months, up to 9 months

More than 3 months, up to 6 months

3 months or less

0 1 2 3 4 5


54

9. Please select the 3 aspects of the incubator/accelerator that had the most impact on the
success of you and/or your business.

Introductions to influential people 22%
Mentoring (receiving guidance tailored specifically to your current
business issues from a designated mentor with experience in… 20%
Physical location where meetings with customers/vendors could
be held 16%
Access to professional services/advice
(legal, accounting, HR, etc.) 12%
Access to capital 10%
Outside individuals helping you stay accountable and prioritize
tasks 8%
Programming (workshops, seminars, guest speakers, etc.) 6%
Demo day 4%
Ability to find additional members for management team 2%
Software development help 0%
0% 5% 10% 15% 20% 25%
Frequency of Response


55

10. Please select the 3 aspects of an incubator/accelerator that had the least impact on the
success of you and/or your business.

Software development help 23%
Ability to find additional members for management team 15%
Outside individuals helping you stay accountable and prioritize… 13%
Demo day 13%
Physical location where meetings with customers/vendors could… 13%
Programming/curriculum (workshops, seminars, guest… 8%
Capital 6%
Introductions to influential people 6%
Resources 2%
Mentoring (being assigned a mentor and receiving guidance… 2%
Other (Please indicate) 0%
0% 5% 10% 15% 20% 25%
Frequency of Response


56

11. Please rank the following factors on how satisfied you were with your overall experience at
the incubator/accelerator.

Ability to develop product 4.8

Develop a pitch deck & presentation 4.7

Ability to develop customers 4.4

Mentoring 4.4

Access to capital 3.8

1.0 2.0 3.0 4.0 5.0 6.0 7.0


57

12. Were you able to raise sophisticated funding (angel or VC) as a result of your experience in
the incubator/accelerator?

No 69%

Yes 31%

0% 10% 20% 30% 40% 50% 60% 70% 80%


58

13. Did your company realize a successful exit? (example: IPO or sale)

No 88%

Yes 13%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%


59

14. Comparing your capabilities before entering and after leaving the
incubator/accelerator, how much did your competence in each of the following areas
improve?
1=No Improvement
7=Significant Improvement
Develop a pitch deck & presentation
Networking
Information Technology
Raising money
Human Resources/Capital
Strategic planning
Operations
Finance and Accounting
Marketing
Product development
Customer development
1 2 3 4 5 6 7

N=16

60

15. Is your company still in business?

No 25%

Yes 75%

0% 10% 20% 30% 40% 50% 60% 70% 80%


61

16. How long has it been since you left the incubator/accelerator?

6+ years

More than 4 years up to 6 years

More than 2 years up to 4 years

Less than 2 years

I'm still at the incubator/accelerator

0 1 2 3 4


62

17. Did you keep your business in the same city as the incubator/accelerator after
"graduating"?

No

Yes

0 1 2 3 4 5 6 7 8 9 10

N=16

63

18. Overall, how satisfied were you with your experience at the incubator/accelerator you went
through?
1=Completely Unsatisfied
7=Completely Satisfied

Overall incubator/accelerator level of
4.4
satisfaction

1.0 2.0 3.0 4.0 5.0 6.0 7.0

N=16

64

19. Please indicate the highest level of school you have completed.

Doctorate Degree

Master's Degree

Senior in college

Junior in college

Sophomore in college

Freshman in college

High school

0 1 2 3 4 5 6 7 8 9


65

20. Please indicate your undergraduate major field of study in school.

Other

Law

Liberal Arts

Physics/Chemistry/Life Sciences

Business
(marketing, finance, accounting, operations,…

Economics

Computer Science/Engineering

0 2 4 6 8 10 12


66

21. Is there anything you would like us to know about your experience with an
incubator/accelerator?

(Note: each bullet is a separate respondent)

• Was at UMBC Incubator, which is run by a Cornell-Johnson School Alum Ellen Hemmerly:
www.bwtechumbc.com
• Shared space with other entrepreneurs at similar stages, and the cohesiveness we developed within our
cohort, were extremely valuable. It was outstanding.
• Our failure to raise capital and take things to the next level had nothing to do with the incubator itself and
had everything to do with a toxic presence in our team.
• I believe it is *critical* that the backers of the incubator are in NO WAY conflicted with also being potential
investors. I have seen where the mentoring and support from the incubator can become tainted by
mentor/investors forgetting their role as mentor, and becoming useless and a detriment to the company as
they begin to see Demo Day coming. I also believe the incubator needs to provide community
support, even to those entrants who are not picked to participate. This means also supporting year-round
events and public benefits to all - not just the companies picked to participate. The incubator MUST
become the hub of a community that benefits the community, IMHO, or it will not be seen as valuable long
term.
• It need a lot of outside funding and community support regardless of the venture structure.

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