Anatomy of the 1MC Entrepreneur

© 2013 Ewing Marion Kauffman Foundation
www.kauffman.org
The Anatomy of the 1MC
Entrepreneur
Arnobio Morelix and Colin Tomkins-Bergh

Research and Policy
• Policy
o Startup Act
o Startup Visa
• Data
o Kauffman Index
o Used by the Whitehouse and 15 governors
• Research
o The Importance of Startups in Job Creation and Job Destruction
• Growthology Blog

Previous 1MC Research
Goals:
1. Understand the growth of 1MC
2. Learn how to improve the program
Previous Research
• Energizing an Ecosystem: Brewing 1
Million Cups - 2012
o Understanding the value that 1MC gives entrepreneurs
• Think Locally, Act Locally - 2014
o Discovering the connectivity of 1MC entrepreneurs within
their communities

Today’s Outline:
• Anatomy of 1MC Founders
• Anatomy of 1MC Startups
• Mapping 1MC
• Takeaways

1MC Survey
• Overview
o 605 responses from 1MC presenters in 58 cities
o Asked 20+ questions about themselves (founder) and their startup
o Questions included:
• How would you describe the stage of your company?
• What sources of financing have you drawn from to finance your / current
company?
• What would you say is the primary sector of your venture?

1MC Kansas City Interview Project
• Overview:
o Interviewed 15 Entrepreneurs in Kansas City who have presented at 1MC
o Did two focus groups and 5 individual interviews
o We wanted to gain insight to the following three questions:
1. What perceived impact does 1 Million Cups have on businesses and
entrepreneurs?
2. How does an entrepreneur connectedness to the ecosystem changes (or
does not change) after involvement with 1 Million Cups?
3. What is the effectiveness of the education curriculum

Everyone Loves 1MC
• All entrepreneurs interviewed said they would
recommend 1MC to another entrepreneur
• “1MC is a big eye-opener”
• “There is no stage like that of 1MC”
• “1MC has strengthened my confidence of being an
entrepreneur”

3 Insights on Presenting Founders:
1. Presenting entrepreneurs participation in local entrepreneurship events
2. Founder’s make lots of connections from their presentation at 1MC
3. Top skill sets of 1MC entrepreneurs
Anatomy of 1MC Entrepreneurs:

Three stages of engagement with the community:
1. Entrepreneurial Networking
o Entrepreneurs interact a lot with other startups by attending lots of events to
grow their network
2. Launch
o Entrepreneurs tend to disappear from the events scene once they launch their
initial product or service on the market
3. Initial Traction
o Once the product service is successful or not, entrepreneurs look to become
more involved in entrepreneurial events and want to help fellow startups
Anatomy of 1MC Entrepreneurs: Engagement
with 1MC

Revenue-Generating Count Average of Programs Attended
No 52 2.00
Yes 58 1.66
Non-founders 51 0.98
Grand Total 161 1.42
Entrepreneurs generating revenue attend more programs?
Having Employees Count Average of Programs Attended
No 41 1.78
Yes 70 1.79
Full-Time Commitment Count Average of Programs Attended
100% for this company 53 1.56
Have another job 48 1.85
Entrepreneurs employing other people attend more programs?
Entrepreneurs committed full-time attend more programs?
Anatomy of 1MC Entrepreneurs: Community
Engagement

• Presenting entrepreneurs roughly double their participation in local
entrepreneurship events
• Some examples of events and organizations that they became involved with
after their presentation are:
o KC Source Link,
o Digital Sandbox,
o Sprint Accelerator,
o LEARN (women business education program),
o Chamber after hours,
o GEW,
o Urban Core, Mayors challenge cabinet steering community,
o Startup of the Year Brand Competition
o KC Roundtable.
Anatomy of 1MC Entrepreneurs: Outside
1MC Connection

• 35% are more connected (26 out of 74).
0
5
10
15
20
0 1 2 3-5 6-9 10-14 15-18
May-13 Jan-14
35 33
Anatomy of 1MC Entrepreneurs: Within 1MC
Connection

What are the Top 3 Skills of 1MC
Entrepreneurs ?
• Designer/Creative
• Developer/Engineer
• Finance
• Logistics
• Management
• Other (please specify)
• Sales/Marketing

• Management, Designer/Creative and Sales/Marketing are the top 3 skill sets.
• Only 9% of founders identify their primary skill set to be that of
developer/engineer (typical high-tech skills)
Designer/Creative
17%
Developer/Engine
er
9%
Finance
2%
Logistics
1%
Management
27%
Other (please
specify)
29%
Sales/Marketing
15%
SKILL SETS
Anatomy of 1MC Entrepreneurs: Skills

Anatomy of 1MC Entrepreneurs: Gender
Female
28%
Male
72%
Similar to national average. But something to think about

Anatomy of 1MC Startups:
• Percentage of companies with full time employees
• Percentage of companies with > 50k in revenue per year
• Percentage of companies that have generated revenue.

What percentage of
companies have full time
employees?

• 60% of all presenting companies have generated revenue.
Idea Stage
2%
Active Development
(pre-revenue)
20%
Deployed
Product/Service (pre-
revenue)
18%
Have generated
revenue
42%
Profitable
18%
Anatomy of 1MC Startups: Business Stage

• Over 50% of companies that have revenue make > 50k in revenue per year
Anatomy of 1MC Startups: Revenue
29.61
13.41
8.1
12.57
17.6
6.42
11.17
$10,000 or less $10,001 to
$25,000
$25,001 to
$50,000
$50,001 to
$100,000
$100,001 to
$500,00
$500,001 to
$1,000,000
$1,000,001 or
more
Revenue (%)

• 38% if companies have 1 or more full time employee
• Over 60% of companies have no full time employees
61.27
12.05
5.16
4.13
3.1
14.29
0 10 20 30 40 50 60 70
No Full-Time
1
2
3
4
5 or more
Full Time Employees
Anatomy of 1MC Startups: Employees

What are the top five
sectors of Presenting
companies?

• Information and Communication Technology, Education, and Health are the
three most represented industries by 1MC startups.
• More than 15 industries are represented by 1MC startups
Anatomy of 1MC Startups: Sectors
3.97
7.12
7.62
9.77
16.06
0 2 4 6 8 10 12 14 16 18
FINANCIAL SERVICES
FOOD OR RESTAURANT
HEALTH
EDUCATION
INFORMATION AND COMMUNICATION TECHNOLOG
Top 5 Sectors (%)

• Not everyone is always seeking capital
14.93
28.52
19.07
37.48
0 5 10 15 20 25 30 35 40
ALREADY RAISED SUFFICIENT CAPITAL
BOOTSTRAPPING (DO NOT PLAN TO SEEK ANY MORE MONEY)
HAVE NOT STARTED SEEKING CAPITAL
SEEKING CAPITAL
Current Stage of Financing (%)
Anatomy of 1MC Startups: Financing

• Reflects national trends of early stage companies
Anatomy of 1MC Startups: Financing
3.8%
4.1%
7.0%
7.8%
14.9%
16.1%
17.6%
17.7%
20.4%
29.2%
35.0%
79.3%
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0%
OTHER COMPANIES
VENTURE CAPITALISTS
GOVERNMENT GRANTS (E.G. SBIR OR STTR)
CROWDFUNDING
OTHER (PLEASE SPECIFY):
ANGEL INVESTORS
PERSONAL OR BUSINESS LOAN FROM A BANK
BUSINESS ACQUAINTANCES
CLOSE FRIENDS
PERSONAL OR BUSINESS CREDIT CARD
FAMILY MEMBERS
PERSONAL SAVINGS
Sources of Financing

Where are all of these
Entrepreneurs and
Startups?

Interactive Map

Takeaways:
1. The 1MC Launching Pad
o Presenting entrepreneurs roughly double their participation in local entrepreneurship events.
o Using 1MC as a bridge into greater entrepreneurial community to other organizations
2. Understand 1MC Entrepreneurs
3. Understand 1MC Startups
o To better serve their needs
4. Learn about other 1MC chapters across the country
o Interactive map to learn from others and get in touch!

Thank You!
• Colin Tomkins-Bergh
o Ctomkins-bergh@Kauffman.org
• Arnobio Morelix
o amorelix@Kauffman.org
• Follow us on The Growthology Blog

Anatomy of the 1MC Entrepreneur

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