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Hybrid Business Incubation Models (NBIA 2015)

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If you are an incubator manager looking to remain relevant and provide the best resources for the entrepreneurs and start-ups you support, this presentation is for you! Jeff Saville, Executive Director of the Center for Entrepreneurial Innovation in Phoenix, and Jasper Welch, Co-Founder of DurangoSpace in Colorado, offer insight into unique and emerging models in the world of business incubation, co-working, accelerators, and more.

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Hybrid Business Incubation Models (NBIA 2015)

  1. 1. HYBRID INCUBATION MODELS Best & Next Practices
  2. 2. JASPER WELCH Co-Founder, DurangoSpace EiR – SCAPE – Durango, CO 2015 International NBIA Conference, Denver, Colorado ABOUT US JEFF SAVILLE Executive Director, Center for Entrepreneurial Innovation
  3. 3. STAYING RELEVANT NBIA members worldwide are rethinking their business incubation models to become… Founder-focused, with flexible space & creative entrepreneurial programs that reach across traditional boundaries & locations… 2015 International NBIA Conference, Denver, Colorado
  4. 4. Last Practices: Facilities-Focused, Rigid Leases, Formal Application Process, Business Plan Requirement, Limited Programs, Isolated Locations (less connected) Best Practices (NBIA Research): A) The Business Incubator (in a community and region) aspires to have a positive impact on economic health by maximizing the success of startup and emerging companies B) Business incubator itself is a dynamic, sustainable and efficient operation Next Practices: Founder & Entrepreneur-focused, Flexible Space and Outreach Programs, Business Modeling, Entrepreneurial Hub, Creative, Strategic Partnering 2015 International NBIA Conference, Denver, Colorado HYBRID INCUBATION MODELS last, best & next practices
  5. 5. Pre-Incubation: Coworking, Business Plan Competitions, Startup Weekends, Accelerators (short term), NxLevel, Makers Space, Ignite Events, Business Incubation: Place-Based Innovation, Dedicated Space & Programming for Start-Ups with Mentors, Milestones & Graduation Launching Companies: Economic Gardening, Targeted Cluster Strategies, Competitive Intel, Equity Investment, 100K SF Coworking Communities, 2015 International NBIA Conference, Denver, Colorado YOUR ENTRE-ECOSYSTEM what does it look like? TECHColumbus SCAPE-DurangoSpace
  6. 6. TRENDS & OPPORTUNITIES emerge from change & transition Emerging models: Mega- coworking communities that are curated and focused on tech startups and ecosystems… 2015 International NBIA Conference, Denver, Colorado Atlanta Tech Village
  7. 7. TECHCOLUMBUS NBIA member TECHColumbus functions as entrepreneurial hub – more open, less walls, company-focused, space is secondary 2015 International NBIA Conference, Denver, Colorado TECHColumbus
  8. 8. HOW DOES WORKPLACE CHANGE IMPACT INCUBATION Less rigid work space, more shared space, freelancers & entrepreneurs, cross functional teams, mobility over fixed location - Hybrid Incubation Models are adapting to this workplace reality! 2015 International NBIA Conference, Denver, Colorado
  9. 9. NONTRADITIONAL OFFICES Surprising Statistics: 40% of the workforce will be freelancers, temps, independent contractors or solo-preneurs by 2020 Top FORTUNE companies (CISCO, eBay, Yahoo, etc.) reported that at least 20% of their employees telecommute regularly – approx 50 million full or part time employees (all businesses) in US marketplace Telecommuting grew by nearly 80% since 2005 Number of co-working spaces worldwide has doubled every year between 2006-2012 Source: http://globalworkplaceanalytics.com/telecommuting- statistics 2015 International NBIA Conference, Denver, Colorado
  10. 10. 2015 International NBIA Conference, Denver, Colorado Pre-Incubation tools and programs are diverse & expanding – Accelerators, Start Up Weekends, Business Plan competitions, Venture Madness Business plans are optional; being replaced by “lean startup” models Bricks & mortar business incubation needs to be founder-focused with facility support Business Incubation TRENDS Impacting incubation and Entrepreneurial support organizations
  11. 11. 2015 International NBIA Conference, Denver, Colorado Virtual teams: Working across space, time and organizational boundaries New Entrepreneur Support Organizations (ESO’s) in marketplace Workplace changes: Emergence of the “work anywhere platform” Business Startups can emerge from anywhere, with or without incubation Entrepreneurial TRENDS Impacting incubation and Entrepreneurial support organizations
  12. 12. INCUBATION GONE GLOBAL Regional ecosystems are being analyzed (by incubators, municipalities, economic development organizations) and best practices are being integrated into and adopted by international communities. 2015 International NBIA Conference, Denver, Colorado City of Phoenix hosts Mexican entrepreneurial delegation
  13. 13. Large international corporations, such as Adobe, are looking to nurture the innovations and ideas of their own employees. Partnership opportunities exist to form internal “incubators” within these corporations to provide resources and help develop new businesses from these innovations. 2015 International NBIA Conference, Denver, Colorado CORPORATE INCUBATION Corporations looking to capture & nurture innovation
  14. 14. Founder-focused: It’s all about the founders, entrepreneurs and management teams! Flexible Space: Coworking, Coffee Shops (on-location), Flex Workspace, Conference Space, Private Reserved Space. FF&E- Focused on Startups External (Outreach) Programs: ESO’s reaching out to entrepreneurs! Business Modeling: Lean Startup, Business Model Generation Canvas Entrepreneurial Hub: ESO’s as center of entrepreneurial activities Strategic Partnerships: Across ecosystems, across programs, private/ public partnerships, Creative Approach: Coaching the ecosystem & ESO’s to stay relevant! 2015 International NBIA Conference, Denver, Colorado HYBRID MODELS & INNOVATION founder-focused, lean startup, flexible space
  15. 15. CEI LEADING THE WAY for innovation in Arizona 2015 International NBIA Conference, Denver, Colorado WHERE TRADITIONAL BUSINESS INCUBATION MEETS NEW & INNOVATIVE SUPPORT FOR ENTREPRENEURS Incubation Best & Next Practices (mentors, onsite business development assistance, partnerships) +-Unique pre-incubation / orientation process -Competitive Intelligence services -Rapid Prototyping capabilities -Onsite medical device maker space -Wet labs with sophisticated biotech equipment
  16. 16. COMPETITIVE INTELLIGENCE LAB PADT STARTUP LABS BIOTECH EQUIPMENT
  17. 17. ARIZONA RISING 2015 International NBIA Conference, Denver, Colorado Innovative Focus Areas: Seed Spot (social), City of Phoenix Resource Innovation Campus (trash incubator) Co-Working = Transitional Space: DeskHub, MOD have more “corporate” feel for on-the-go professionals and growing companies; CO+HOOTS emphasizes collaboration and creativity Growth of Maker Spaces: TechShop Chandler, 11th Monk3y, HeatSync Labs, several more to open in 2015; product development meets business opportunity University Hybridization: ASU has Edson, Furnace, TechShop and public library co-working spaces (Hive) Entrepreneurial “Glue:” Arizona Commerce Authority, GPEC, City of Phoenix connect ecosystem and offer funding and grant opportunities to nurture innovation and collaboration
  18. 18. 2015 International NBIA Conference, Denver, Colorado Incubation programs are becoming complementary to one another to provide support for start-ups at different stages of business growth… High School Programs Collegiate Incubation Validation / Early-Stage Commercialization Hyper-Growth INCUBATORS-STARTUP FIT a startup can go through multiple programs
  19. 19. 2015 International NBIA Conference, Denver, Colorado Many incubation programs feature direct equity investment or seed funding for portfolio companies, previously an accelerator feature. Regardless, investors often use incubators as part of the validation and due diligence process; programs must establish strong relations with local angel & VC groups INVESTING IN STARTUPS it is no longer for accelerators, business incubation in the action!
  20. 20. 2015 International NBIA Conference, Denver, Colorado WHY CONSIDER A HYBRID MODEL FOR YOUR PROGRAM? Diversified revenue streams New partnership opportunities Maintain relevant services for entrepreneurs Support start-ups at all stages and industries to grow interconnected ecosystems NEW FORMS OF INCUBATION
  21. 21. 2015 International NBIA Conference, Denver, Colorado Assess market / ecosystem strengths and weakness •  Develop a list of current and anticipated future resource needs of local entrepreneurs •  Identify strengths and gaps of existing programs to determine joint partnership opportunities that can address those needs Analyze the services and business models of national & international programs •  PRACTICAL programs that share similar focus areas and/or mission •  INSPRATIONAL programs that you want to emulate Explore grant opportunities to grow services and/or establish new offerings that target specific groups (i.e. women, technology, legal services programs, etc.) •  Economic Development Administration (EDA) •  Small Business Administration (SBA) •  NACCE / Coleman Foundation •  Local municipalities THE ALL-IMPORTANT “HOW”
  22. 22. JASPER WELCH Co-Founder, DurangoSpace jasper@durangospace.com www.jasperwelch.org 2015 International NBIA Conference, Denver, Colorado Contact Us! JEFF SAVILLE Executive Director, Jeff.saville@ceigateway.com http://ceigateway.com
  23. 23. HYBRID INCUBATION MODELS What QUESTIONS Do You Have for Jeff & Jasper?

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