This presentation was part of the Growing Entrepreneurial Communities Summit, a practitioner-focused summit designed to help economic development and small business practitioners effectively create economic growth through entrepreneurship in local communities. The 2018 Summit, subtitled Entrepreneurship on the Edges, focused on providing information and practitioner insight in how to effectively develop disadvantaged urban and rural communities using entrepreneurship-led development strategies.

1. Breaking “Startup
Fever”: Increasing
Entrepreneurship at
the Edges
Dane Stangler
Growing Entrepreneurial Communities Summit
April 2018

2. © 2017
We Have All Caught “Startup Fever” …
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Source: David Benson, BYU.

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… But Not (Yet) Seeing Payoff—at least in New Company Creation—
and there is Growing Concentration in Many Industries
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Source: Economic Innovation Group

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Worse, Economic Value from Technology-Based Startups is Highly
Concentrated—and Emerging Regions “Leak” Startups
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Ecosystem Value Distribution
by Region 2016-17
United States
Europe
Asia-Pacific
Global Concentration of Ecosystem
Value 2016-17
Top 20 Ecosystems Other 35

5. © 2017
Why Aren’t We Doing Better?
• Data
– Headlines only: “Investment grew $X last year.” “We graduated X companies from our
accelerator.”
• Vanity metrics
– Incomplete data
• No context, no comparison
• Lack of benchmarks
• No guidance for prioritizing or focusing
– You can’t do it all
– Where and how do you allocate your scarce resources?
• Implementation and impact
– We are all doing similar things  Startup Monoculture
– How track impact?
• Policy
– Still, in many places, a hindrance not a help to entrepreneurs
– Invisible policies, especially
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6. © 2017
So What Can Be Done? This is What We are Working On
• Startup Genome working with Kauffman Foundation
• Adapting our model and methodology to help more American cities address this
challenge
– Beginning with 5 pilot metros
• What does our model look like?
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Activation Globalization Expansion Integration
Lifecycle Model Captures How Ecosystems Evolve and Grow—We
Focus Especially on Stages within Activation Phase
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Success Factors Model  Clarity  Prioritization  Action
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Founder
Talent
Organizations
Funding
Startup Experience
Resource Attraction
Team Local Ecosystem
RESOURCES
NETWORKS
(Knowledge Flow)
Local
Connectedness
Global
Connectedness
PERFORMANCE
Startup
Output
Global
Market Reach
Ecosystem
Value
EconomicImpact
Exits / Triggers
Local
Context
100 Metrics Validated Against Startup and Ecosystem Performance

9. © 2017
New Success Factors, and New Research  Consistent Goal to Help
More Places Develop Startup Ecosystems and Capture Benefits
• Local Connectedness
– Quality not just quantity
– Physical proximity unclear
• Founder Mindset
– Not personality
• New research and application areas:
– Accelerator Program Assessment
– Inclusion
• How do we make this a factor in assessing ecosystem performance?
• Developing more rigorous way for entrepreneurs and supporters and champions and
policymakers to identify strengths and gaps—and inform the actions they take, and
monitor the effectiveness of those actions
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10. © 2017
Tell Us What You Think
Thank You!
• New: 2018 Global Startup
Ecosystem Report
• @startupgenome
• @danestangler
10

11. Thank You
11
JF Gauthier
CEO
+1-415-722-0345
jf@startupgenome.com
Marc Penzel
COO
+1-415-278-1205
marc@startupgenome.com
Dane Stangler
Chief Policy Officer
+1 (913) 634-4476
dane@startupgenome.com
@danestangler

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Evidence-Based Policymaking Engine
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4. ACTION
Policies & Private
Practices
 Achieve
Economic
Impact
2. CLARITY
Clear Gaps
=> Build
Consensus
for Action
1. FOCUS
Right Issues at the
Right Time
 Maximize
Impact
3. STRATEGY
Prioritize
vertical strengths
 Accelerate
Growth
Lifecycle
Evolution
Success
Factors
Economic
Strengths
Policy
Action

13. © 2017
Startup Genome: Scientific Knowledge of How to Develop Startup
Ecosystems
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• Most popular report
• 300,000 views
• Investors, Entrepreneurs,
Talent…
• Articles in hundreds of
publications: Forbes,
Bloomberg, Inc., etc.
Global Credibility &
Exposure
• Largest primary research
• 55 cities / 28 countries
• Voice of Entrepreneurs
• 10,000+
• Data and support from
GEN, Crunchbase and
300+ partners
Largest
Knowledge Base
• First Scientific Model
• 9 Success Factors
• 80+ metrics
• Validated against
Performance Model
Evidence-Based
Research