creative startups 2016-2017 impact report
TRANSCRIPT
I M PA C T R E P O R T
Assess ing the Ef fect iveness of the Creative Startups Accelerators
2016
This report was made possible by the generous support of E. M. Kauffman Foundation and the New Mexico EPSCoR National Science Foundation (award #11A-1301346).
Any opinions, findings, conclusions, or recommendations expressed in this report are those of the authors and do not necessarily reflect the views of the E. M. Kauffman Foundation or the National Science Foundation.
Copyright Creative Startups 2017
THE MENTORING & TEACHING A T C R E A T I V E S T A R T U P S W A S S E C O N D T O N O N E . WE WORKED ONE-ON-ONE WITH VISIONARY GLOBAL LEADERS & NOW I AM TRULY READY TO GROW MY CREATIVE BUSINESS.
- Creative Startups 2016 Alumni
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CONTENTSAcknowledgments iv
Sponsors iv
Report Summary v
THE CREATIVE ECONOMY 1The Global Creative Economy 2
Creative Industries & Entrepreneurs 4
A Significant & Unmet Need 5
Startup Accelerators 6
AN ACCELERATOR FOR CREATIVES 7An Accelerator for Creatives 8
Opportunity for Broader Impact 9
Global Startups & Accelerators 10
Key Needs of Creative Entrepreneurs 12
PROGRAM COMPONENTS 13Applications & Cohort Selection 14
Course & Curriculum 15
Deep Dive & Mentoring 16
PROGRAM EVALUATION 17Measuring Effectiveness 18
Methods & Measures 19
ACCELERATOR C O H O RTS 20Demographics 21
Cohort Needs & Knowledge Gaps 23
ACCELERATOR OUTCOMES 24Startup Ecosystem for Creatives 25
KEY ACCELERATOR OUTCOMES 26
Knowledge Gained 28
Professional Networks 29
Increased Self-Efficacy 30
Jobs, Investment, & Revenue Growth 31
Mentoring 32
Winston-Salem Site Outcomes 33
PROFILES IN SUCCESS 34Meow Wolf 35
Etkie 36
Embodied Labs 37
Native Realities 38
FUTURE DIRECTIONS 39Launch a Creative Startups Accelerator 40
Lets Work Together! 42
Connect 43
References 44
Additional Resources 46
Vcreat ives tar tups .org
The success you read about in this report has been made
possible by the team of mentors, donors, investors, and startups who joined with Creative Startups to build this initiative. Much of the most impactful work is carried out by our team of 70+ mentors who give their time and energy because they are passionate about entrepreneurs. The majority of our mentors are entrepreneurs and investors themselves and therefore know well the challenges startups
face. These exceptional individuals have indelibly impacted the lives of founders and staff as well as the creative economy and we are profoundly grateful.
The Creative Startups Accelerator is also made possible by the generosity of individuals, like you, who are passionate about innovation and creativity. Additionally, we receive support from sponsors and foundations who share our vision for a dynamic, inclusive economy.
The many founders who have joined the global Creative Startups community receive our lasting appreciation; their grit and determination is matched by their creativity and passion. Our communities reap the benefits of their hard work.
The positive impacts detailed in this report belong to the entrepreneurs, mentors, investors, and funders who work tirelessly to build thriving communities. We are honored to be a small part of this success story.
INVESTORS
Fleischaker Women’s Legacy Fund
dsire
Submittable
Bernalillo County
Kenan Institute for the Arts
Arts Council of Winston-Salem and Forsyth County
ANGLES
Santa Fe BrewingWriter GalsHub InternationalGear UpHotel AndaluzThe Atrisco CompaniesPeacock MyersThe City of Winston-SalemShuyi Mo Infinite Studios, SingaporeF. H. Kenan Institute of Private Enterprise
CATALYSTS
Wake Forest Innovation QuarterMr. and Mrs. Richard D. MossBB&TFlow AutoInmarKilpatrick TownsendWells FargoWinston-Salem Millennium FundDavid and Mary MountsMr. Paul Fulton Jr.ExcaliburFlywheel CoworkingSalem College
SponsorsAcknowledgments &
VI
VISIONARIES
Given the clear, significant, and positive impacts of
creative entrepreneurs, and the near lack of startup resources for creatives globally, we launched the groundbreaking Creative Startups Accelerator, designed by and for creative entrepreneurs. The Accelerator addresses this resource gap by providing participating founders access to new knowledge, skills, and networks. The program increases the self-confidence of creative
founders by building their capacity as entrepreneurs.
2016 marked the third year of our Accelerator Program. Since its inception in 2014, the Accelerator
has shown positive impacts on participating startups.
In 2016 we launched the Creative
Startups Accelerator Network. We license the Accelerator program to Site founders who build successful Programs in their region. Creative Startups Sites bring new regions
into the Network, expanding our impact and the benefits to communities multiply. This report details the outcomes achieved to
date by all of the participants of each of the four cohorts and discusses future directions for the Creative Startups Accelerator.
Report Summary
NEW JOBS CREATED SINCE 2014
144
MILLION RAISED BY STARTUPS
$6. 5STARTUPS STILL GOING STRONG
90%
$7. 9 MILLION IN NEW REVENUES
VII
SUMMARY
THIS EXPERIENCE IS ONE I WILL NEVER FORGET IN MY LIFE. IT HAS MOST IMPORTANTLY TRIGGERED THE NEXT STEPS OF WHAT NEEDS TO BE DONE! A BIG HEARTFELT THANK YOU CREATIVE STARTUPS!
- Creative Startups 2016 Alumni
“
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THE CREATIVE ECONOMY
Impact Report 2016
Communities around the world are experiencing
unprecedented economic disruptions as digital technologies proliferate and efficiencies in global markets expand. The digital economy has risen quickly as a major driver of global markets.
Demand for creative goods and services is growing by leaps and bounds. Startups in the creative industries increasingly lead economic opportunities for regions.
Today’s creative entrepreneurs are “creative tech” entrepreneurs utilizing digital tools to explore, create, collaborate, market, sell, and distribute their creative works. Musicians, filmmakers, designers, architects, artists, chefs,
GROWTHIN TRADE OF CREATIVE GOODS & SERVICES
8.8 %M I L L I O N PEOPLE EMPLOYED GLOBALLY IN CREATIVE INDUSTRIES
30
and craftspeople all utilize digital technologies, bringing global markets to their doorstep.
The explosion of the creative economy is a natural outcome of
the confluence of rising incomes and increased creative exchange, globally. Art and culture easily move across digital platforms, increasing demand for unique goods, services, and experiences.
Companies in the creative economy provide economic-base, high-wage jobs while retaining competitive
advantages that stem from place-based/cultural intellectual property. Multiple reports and data sets substantiate the positive impact of creative companies
and sectors on regional development. According to UNESCO (2013), cultural and creative industries produced revenues of $2.25 trillion in 2013. Additionally, 29.5 million people are employed
in the global creative economy. By nation, growth in the creative economy ranges between 4% to 12% annually, and this 2013 data shows that world trade of creative goods and services enjoys an average annual growth rate of 8.8%. Growth in exports of creative goods from developing economies has been even stronger, averaging 12.1% annually.
TRILLION & GROWING GLOBAL CREATIVE ECONOMY REVENUES
$2.2
THE GLOBAL CREATIVE ECONOMY: Is Big Business
HUMAN CREATIVITY AND INGENUITY HAVE NEVER BEEN MORE ESSENTIAL TO THE ECONOMIC WELL-BEING OF COMMUNITIES.
2
Finally, the creative industries grew globally throughout the Great Recession despite downturns in manufacturing, construction, and high tech.
An UNESCO Cultural Times report (Lhermitte, Perrin, & Blanc, 2015) highlights how development projects that focus on building creative and cultural infrastructure act as a catalysts for strengthening local identity and building the economy. This type of creative placemaking attracts tourism and appeals to a more highly skilled and talented work force which
leads to more livable cities with a larger demographic of creative, active and engaged citizens.
Despite the data and evidence demonstrating the positive economic impact of creative entrepreneurs and their ventures, “creatives” continue to be overlooked as drivers of economic opportunity and wealth creation.
Equally important, creative entrepreneurs are often discounted as social change catalysts who bring diversity and economic inclusion to their communities. Creative expression has long been
at the forefront of social innovation and social change. Creative entrepreneurs build the companies and organizations that bring creative expression to markets, leveraging the efficiencies of markets to broaden their reach and serve more people with their products and services.
Entrepreneurs build what’s next. Investing in and supporting creative entrepreneurs ensures that what’s next will be communities that embrace creativity, diversity, economic inclusion, and market-based approaches to social challenges.
CREATIVE INDUSTRIES
Advertising
Animation
Architecture
Apps (for creative industries)
Crafts and Artisan
Creative Sector R&D
Culinary
Education Tech
3d Printing (for creative products)
Digital Design
Graphic Design
Industrial Design
Product Design
Planning/Design
Fashion
Film
Museum Tech
Music
Performing Arts
Photography
Publishing
Software (for creative industries)
Studio & Fine Arts
Toys & Games
TV & Radio
Video Games
Virtual & Augmented Reality
C R E A T I V E E X P R E S S I O N H A S L O N G B E E N A T T H E F O R E F R O N T O F SOCIAL INNOVATION & SOCIAL CHANGE.
3
ECONOMY
TOTAL VALUE OF VC BACKED EXITS 2014 & 2015
Wherever creativity, digital media, and artistic
expression thrive, creative entrepreneurs are actively building businesses. Notable entrepreneurial successes in the creative economy include companies like Etsy, Netflix, Pixar, and Flickr. Iconic creative entrepreneurs include Guy Laliberté (Cirque du Soleil), Beyonce (musician), and Calvin Klein (fashion).
CREATIVE INDUSTRIES & ENTREPRENEURS
DESPITE CONTRIBUTING $2.2 TRILLION T O T H E G L O B A L E C O N O M Y , C R E A T I V E ENTREPRENEURS STRUGGLE TO F IND SUPPORT.
Investors are awakening to the potential of creative companies. Current data on VC-backed exits show that three of the ten highest exits for 2014-2015 were creative
companies (Kosoff, 2015; Loeb, 2014). All three use digital technologies in all aspects of their businesses.
$22.0
Total VC Backed Exits: All Industries$91.5 billion
Total VC Backed Exits: Creative Industries$31.8 billion
Top VC Backed Exits: Creative Industries
$91.5
$3.1 $2.0
$2.0
$1.5
$1.2
in $billions
Datalogix
Lynda
Oculus
Seamless
Go Pro
$31.8
4
A SIGNIFICANT & UNMET NEED
Creatives are highly skilled in creative domains but often
have less knowledge and skills in finance, operations, or marketing. Regardless, examples of successful creative entrepreneurs abound. Yet, to date, the vast majority of creative entrepreneurs--and the enormous untapped economic and creative potential they harbor--have been mostly overlooked. The lack of resources available to them reflects this oversight.
By contrast, the tech startup
ecosystem is saturated with resources: STEM-related entrepreneurship degrees are offered at hundreds of colleges, tech investment firms are prolific, and there are thousands of accelerators, boot camps, and startup weekends dedicated to tech startups. The term “tech startup” is used ubiquitously -- making it
meaningless as a descriptor. Sector specific recourses are needed.
Yet, we have identified only four other accelerators for entrepreneurs in the creative industries: buildit.ee,Disney Accelerator, Creative England, ADMF Creative Media & Technology Accelerator.
Tech Entrepreneurship Social Entrepreneurship Creative Entrepreneurship
DISPARITY AMONG RESOURCES AVAILABLE TO STARTUPS
T H E T E R M “ T E C H S T A R T U P ” I S M E A N I N G L E S S A S A D E S C R I P T O R .
5
ECONOMY
1,500+ Accelerators 350+ Venture Capital Firms
200+ Higher Ed Entrepreneurship Degrees
100+ Impact Investment Funds
50+ Accelerators
25+ Higher Ed Entrepreneurship Degrees
20+ VC Firms
4 Accelerators
10+ Higher Ed Entrepreneurship
Degrees
3 VC Firms
Startup accelerators differ from small business support resources in several important ways. Accelerators are intensive programs designed for ambitious founders, determined to build a high growth/scalable and profitable new venture. Effective accelerators
SMALL BUSINESS SUPPORTSTARTUP ACCELERATORS
connect founders with mentors, investors, and market leaders specific to the founders’ industry. Mentors are a key element of any high quality accelerator program and provide advisement, access to resources and networks, and on-going support to founders.
Small business workshops and trainings can be effective for founders seeking to incrementally grow a profitable business. These programs usually provide a different type of resource centered on a set curriculum delivered by an educator or small business specialist.
STARTUP ACCELERATORS:
• Assume founders seek significant ROI and likely require investment capital from investors to grow.
• Employ intensive, full time approach to educating founders about core business areas and models for business growth.
• Prioritize developing new ventures’ business models through prototyping, iteration, customer interaction, and market analysis.
• Host guest speakers addressing key topics, usually market leaders and highly successful entrepreneurs. May/may not use set curriculum.
• Rely heavily on global or national networks of mentors to serve as “faculty” and advisors.
• Provide startup funds to all or some of participating ventures. Often take equity.
• Cultivate and nurture a wide array of mentors who provide support and on-going access to networks and opportunities.
• Accelerate new ventures toward rapid success or failure. Failure is accepted as normal – founders cycle back into startup ecosystem.
• Assume business owner aims to build profitable lifestyle business at an incremental rate.
• Offer courses, workshops, and learning materials business owners can review, digest, and apply at their own rate.
• Focus on creating a business plan, often using a template or defined series of planning steps to move the owner through the planning process.
• Utilize a set curriculum, often influenced or developed by a regional SBDC, or higher education institution.
• Offer trainings delivered by educators or small business experts from within the community.
• Provide information on financing small businesses. May link to CDFI’s or similar.
• Provide connections to service organizations including volunteer business services, higher ed degree programs, sources for financing.
• Support small business owners to set and achieve business goals and improve the business’ sustained profitability.
Inspire Rapid Growth
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AN ACCELERATOR FOR CREATIVES
Impact Report 2016
AN ACCELERATOR FOR CREATIVES
f6s.com, a leading accelerator news and networking platform,
lists over 1,300 accelerators across the globe – the vast majority launched within the past five years. Startup accelerators employ a common set of tools to promote knowledge and skill development, networking and resource cultivation among participating entrepreneurs. As defined by Cohen & Hochberg (2014) these common elements include “a fixed-term, cohort-based program, including mentorship and educational components that culminates in a public pitch event or demo-day.”
Accelerators have proliferated in the technology sector and are shaping vast networks of startup founders who join the ranks of
highly networked, well-schooled entrepreneurs sharing common language, methods, and strategies. As these networks expand and their reach grows, the social network effects of accelerators grow, too.
Accelerators not only impact economic development, they are becoming the driving force behind regional efforts to attract entrepreneurial talent and curate a vibrant entrepreneur ecosystem.
A 2015 Rockefeller Foundation study (Monitor Deloitte, 2015) offers myriad findings for improving the effectiveness of startup accelerators. First among these recommendations is that
communities, “Develop a sector-specific model,” noting in regard to accelerators, “a one -size-fits-all approach is not effective.” Combining this recommendation with the knowledge that sufficient startup resources for entrepreneurs in creative industries do not exist, we built the Creative Startups Accelerator from the ground up, incorporating best practices from highly successful accelerators such as Techstars, Y Combinator, and 500 Startups. Central to the Creative Startups model are mentorship, a rigorous curriculum, and peer-to-peer learning. We built all of this specifically for creatives, based on their unique needs and opportunities.
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STARTUP ACCELERATORS ARE EFFECTIVE PLATFORMS FOR EDUCATING, MENTORING, A N D C ATA P U LT I N G E N T R E P R E N E U R S TOWARD THEIR SUCCESS – OR FAILURE.
A O N E - S I Z E D - F I TS - A L L APPROACH IS NOT EFFECTIVE.
OPPORTUNITY FOR BROADER IMPACT
Catalyzing Regional Economic DevelopmentAs communities struggle to adapt to the shifting global economy, and as entrepreneurial activity in the US declines (Fairlie, 2013), accelerators are increasingly understood to be catalyzing factors in generating economic activity and attracting entrepreneurs to a given region. The few well known ‘startup capitals’ around the world attract a majority of the startup companies. With their many resources and extensive support systems they appeal to a well educated, creative work force pulling new ventures from other parts of the country.
Less developed startups ecosystems have much to gain from launching accelerators. In addition to potential increases in a region’s tax base and available jobs, startup accelerators can differentiate a region, making it more attractive to entrepreneurs building ventures in specific industries.
Regions that were once passed over by startups and VC’s are now attracting companies seeking lower cost environments, where startup resources are expanding.
As an example, Village Capital has launched a water-technologies accelerator in New Mexico and Colorado, two states where operating costs are lower and water conservation research and innovation are endemic. This differentiation allows regions to
bridge their unique – and therefore more sustainably competitive – assets and resources with the innovation economy. The result
of accelerators, when effective, is a more robust and competitive entrepreneurial ecosystem with linkages among entrepreneurs, investors, higher ed, economic development, and outside markets.
Graphic adapted from startupblink.com
1-100
100 - 1000
1000 - 5000
5000 +
STARTUPS LAUNCHED: SOUTHWESTERN USA
ACCELERATOR
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STARTUP ACCELERATORS GENERATE OPTIMISM ABOUT THE ENTREPRENEURIAL P O T E N T I A L O F A R E G I O N .
GLOBAL STARTUPS & ACCELERATORS
TECH ACCELERATORS
STARTUPS
Graphic adapted from startupblink.com
CREATIVE ACCELERATORS
5-15K
1<100
<1K
<5K
CREATIVE STARTUPS SITES
10
ACCELERATOR
11
KEY NEEDS OF CREATIVE ENTREPRENEURS
Creative entrepreneurs building new ventures face many of
the challenges entrepreneurs in all industries face: market opportunity assessment and access, business model development, raising investment, and gaining traction with customers. Differences between creative entrepreneurs and those in other sectors may primarily stem from their educational and professional experiences. Many creative entrepreneurs majored in film, music, fine arts, photography, architecture or design. Their professional
experiences are grounded in creative practices. Their interactions with “entrepreneurship” as a field of study and practice may be limited.
To effectively meet the needs of creative founders, our Accelerator is challenged to provide founders with access to new language and vocabulary, knowledge, skills and networks, as well as connections to financiers and investors, market leaders, and distribution channels. Additionally, our Accelerator needs to boost creative founders’ self-confidence as entrepreneurs and businesspeople. This self-
confidence is essential to any entrepreneur who will be faced with myriad challenges and setbacks. Measuring how well accelerators succeed in meeting this tall order is a growing area of focus in entrepreneurship scholarship. This report details Creative Startups’ accomplishments and shortfalls along these lines.
Before we review our program outcomes and impacts we will review our Accelerator program’s components, including marketing, curriculum, mentoring, and evaluation methodology.
Graphic adapted from Cohen & Hochberg, 2014.
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Startups’ Key Needs:
• Knowledge• Skills• Networks
Market Validation
thru Customer Research
Strategic Market Entry
Business Model
Development
Financing for New Ventures
Leadership & Organizational Development
Sales and Marketing
Distribution Model and
Channel Access
General Business
KnowledgeGrowth Capital
PROGRAM COMPONENTS
Impact Report 2016
APPLICATIONS & COHORT SELECTION
Marketing and OutreachCreative Startups’ marketing activities to attract applicants are based primarily in social media, in-person presentations, and “coffee and creatives” gatherings. Additionally, we partner with leading creative communities such as CreativeMornings, Global Creative Business Cup, and Creative Economy Coalition to reach prospective applicants. This year we extended our reach through networking efforts that focused on connecting with like minded organizations and thought leaders around the globe.
Creative Startups Mentors are also helpful by reaching out to their extensive networks. Our e-newsletter reaches over 7,000 recipients across the globe. Local press has been useful for reaching potential applicants and partners in the economic development and regional startup ecosystem.
Online ApplicationThe application contains approximately 30 questions and requires applicants submit a 4-minute video introducing their team and describing their creative company. The application attempts to evoke answers that
provide judges with insights into the entrepreneurial mindset and attitude of the startup’s leaders. The application does not require financials, a business plan, or that applicants display a firm grasp of business fundamentals. The application instead is intended to gather information on applicants’ passion, grasp of market landscape/opportunity, customer understanding and their desire to achieve dramatic growth in the venture.
Selection ProcessCreative Startups’ selection process is entirely merit based. All applications are sorted by staff for a “first cut” of approximately 50 applications using criteria including potential to scale, innovativeness, grasp of market and opportunity, and full participation of founders. These “best of” applications are
then each reviewed by a panel of judges.
Judges are Creative Startups alumni, well respected members of the startup and VC community, and successful creative entrepreneurs. Each application is reviewed by three judges, and judges review no more than five applications. Judges use a guided score sheet to evaluate the applications on vision, team, milestones, innovation and creative expression. Once a Site’s judges have completed their reviews, scores are normalized and then the Site’s judges discuss the “best of” applications until the final selection the of Site’s 8-12 startups is determined. Throughout the entire process we compile notes and comments from reviewers that are then passed on to the applicants so they can continue to improve their business even if they are not accepted into the Accelerator.
75% OF ACCEPTED S T A R T U P S
HEARD ABOUT US VIA A PERSONAL TOUCH
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OV E R 3 0 0 A P P L I C AT I O N S H AV E B E E N S U B M I T T E D TO T H E C R E AT I V E STA R T U P S ACCELERATOR; 41 OF WHICH HAVE BEEN ACCEPTED.
Module 3Design Thinking to Support Innovation
Module 5Business Models as Profit Systems
Module 7Strategic Partnership for Scaling
Module 9Cash Flow Projections
Module 11Raising Capital & Sources of Capital
Module 2Customer Delight, Product Development, & Business Model
Module 4Customer Discovery, Market Traction for Startups
Module 6Branding, Storytelling, & Sales
Module 8Legal Issues for Startups
Module 10Financial Statements
Module 12Pitching Investors
COURSE & CURRICULUM
CurriculumThe Creative Startups team worked with Stanford entrepreneurship faculty to create a unique curriculum designed for entrepreneurs in the creative industries. The 12-module program addresses a wide range of topics and presents entrepreneurs with engaged learning activities. These activities provide participating entrepreneurs a platform from which they can lead their startup to new heights.
Online Interactive ClassesThe online classes consists of:• Review and discussion of
curricular content, • Case study discussion,• Guest faculty-led discussion
and presentation,• Review of assignments and
questions.
In addition to scheduled classes, the cohort meets in small groups via Google Hangouts/Skype and, through facilitated discussion, review concerns and challenges. Weekly class time averages five hours, not including assignments.
Module 1Entrepreneurship as a Way of Thinking & Leading
COMPONENTS
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THE ONLINE LESSONS WERE PHENOMENAL & ALLOWED MY TEAM TO REFLECT & THINK ABOUT OUR BUSINESS MODEL.
- Creative Startups 2016 Alumni
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DEEP DIVE & MENTORING
Deep DiveAfter completing the course, founders participate in an intensive “Deep Dive”. The week includes:
• Extensive one-on-one mentoring with Creative Startups Mentors who travel to the Deep Dive,
• Presentations by content experts including accounting, legal, marketing, and operations,
• Blocks of time for working in teams to develop the pitches delivered on Demo and Pitch Days.
Demo Day & Pitch DayDemo Days allow startups to reach the broader community and display their innovations and products. Each startup prepares a 2-minute presentation designed as an exciting overview of their venture. These presentations are delivered to a large crowd; each demo is videoed and available to the startups so they can learn from their performance.
Pitch Days allow startups to directly engage investors and “pitch” a panel of professional investors. The pitches are judged by the investors, mentors, as well as their cohort peers. Verbal feedback is provided by the investors and mentors. The winning entrepreneurs receive investment from the investment pool raised by the Site. Sites vary in their
deployment of investment funds: some Sites take equity in return for investment while others choose to do zero-interest loans or convertible notes.
MentoringAll participating startups are provided mentoring throughout the following year. Our suite of 70+ mentors stand ready to offer connections to their extensive networks and provide practical guidance. Creative Startups Mentors are not “assigned” a startup; the relationships emerge organically. The Creative Startups team provides ongoing connections to the mentor network, investors, and market leaders. Creative Startups Mentors remain engaged with entrepreneurs for months - - sometimes even years!
1:1 MENTORING TEAMS WORKING CONTENT EXPERTS DEMO DAY
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PROGRAM EVALUATION
Impact Report 2016
MEASURING EFFECTIVENESS
Startup accelerators have been launched by a wide
diversity of communities whose intended impacts vary greatly, thus complicating efforts to measure and compare outcomes (Kempner & Roberts, 2015). The impacts accelerators pursue and measure vary as widely as the communities they serve. For example, Techstars is designed to generate maximum financial returns for the participating investors and founders. By contrast, POSiBLE, an accelerator in Mexico City, is designed to catalyze widespread awareness and excitement about entrepreneurship as a possible career path. While
POSiBLE intends to increasingly move toward a model that generates financial returns to investors, currently the primary aim of the program is to multiply and expand entrepreneurial activity.
The sought-after impacts of accelerator programs reflect the stage of development a given entrepreneur ecosystem has reached. For an under-developed region, a lack of entrepreneurial capacity and investment capital suggests that ideal outcomes would include increased entrepreneurial capacity and growth in available capital. Regions steeped in resources and capacity are able
to focus on generating maximum financial returns for investors. As regions develop and augment their entrepreneur ecosystems through offering accelerators and other activities, we suggest the study of accelerators should also evolve, to contribute a more comprehensive understanding of the role diverse accelerator approaches can play in communities.
While a range of impacts may be measured by accelerator programs, we maintain that certain outcomes are “non negotiable” including: increases in skills, knowledge, networks, self-confidence, and access to investment capital.
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- ROBUST - ENTREPRENEUR E C O S Y S T E M
POLICY
MARKETS
STARTUPS
MENTORS
STARTUP CULTURE
INVESTMENT CAPITAL
E-SHIP EDUCATION
Graphic adapted from Babson College’s Domains of the Entrepreneur Ecosystem
METHODS & MEASURES
The Methods The methods Creative Startups uses to measure shifts in participants’ gains include generating a baseline measurement of incoming knowledge, skills, self-confidence, and concerns. This baseline is compared to exit data provided by participants through interviews and online questionnaires. Questions are presented with exactly the same phrasing in pre and post questionnaires.
QuestionnairesEach participant completes an online questionnaire one week prior to beginning the program. The pre-questionnaire includes approximately 30 questions about founders’ entrepreneurial background and experiences, perceived (self) weaknesses and
strengths, self-confidence, and startup knowledge. The pre-questionnaire also asks founders to self-report revenues, employees, and investment raised to date.
The post questionnaire uses the same (exact) questions as the pre-questionnaire, to compare before and after levels of knowledge, skills, networks, and self-confidence. We also ask for feedback/suggestions for program improvements. Post questionnaires are deployed at two-weeks, 12 months, and 24 months post program completion.
ObservationsIn addition to using interviews and questionnaires we make observations and track the progress of startups through on-going involvement and support for each founding team. This allows us
to gather on-going data about challenges and opportunities, insights and observations the entrepreneurs have as they put into practice the new knowledge, skills, and networks they gained with Creative Startups.
Evaluation TeamWith generous support from the E.M. Kauffman Foundation we have contracted an outside “professional evaluator”. Her background includes project management with NASA and evaluation management with the National Science Foundation.
MEASURING FOR CHANGE The key outcomes for Creative Startups Accelerators include:
Increased activity in the creative entrepreneur
ecosystem
Gains in entrepreneurs’
knowledge and skills
Increased financial investment in
creative ventures
Job growth in participating
creative enterprises
Increased self-confidence as entrepreneurs
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EVALUATI
ON
Impact Report 2016
ACCELERATOR C O H O RTS
DEMOGRAPHICS
HIG
H D
ESIG
N/
C
ON
SU
MER
GO
OD
S
EX
PER
IEN
CES
FASHION
CREATIVE
ADVERTIS
ING
VR & FILM
PUBLISHING
EDU
CATI
ON
TE
CH
MU
SIC
CULINARY
3-D JOUR-NALISM
INTERACTIVE DIGITAL MEDIA
INDUSTRIES REPRESENTEDApplicants to Creative Startups Accelerators come from Asia,
Europe, Latin America and the US. We have selected participants from the US, Mexico, Singapore, Peru, Portugal, and the UK.
Creative Startups Accelerators have attracted companies from an array of different creative industries. Startups such as Etkie (ABQ, 2014), FAR Botanicals (ABQ, 2015), GOOOD (ABQ, 2016) and TALLER NU (WS, 2016) produce high
STARTUPS LOCATIONS
design goods which make up the largest portion of the total with 28%
of startups self identifying in this field.
PRINTIN
G
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COHORTS
UNITED STATES
MEXICO
PERU
PORTUGAL
SINGAPORE
UNITED KINGDOM
41S T A R T U P S 76
I N D I V I D U A L S
&H A V E P A R T I C I P A T E D I N T H E AC C E L E R ATO R .
DEMOGRAPHICS
FORMAL EDUCATION
GENDER & ETHNICITY
The Creative Startups Accelerator reaches overlooked and under
served entrepreneurs. 75% of all Accelerator participants have no previous business education. Over half are educated in creative fields with design and the arts being the most common backgrounds. 16% of founders have formal design education and 15% arts education. Business education is the next single largest field with11% and 7% of founders have management education. The least amount of founders have a science/tech education background with computer science as the most at 8%.
Female and/or Minority
Other or Prefer Not to Answer
Creative Fields
Science & Tech
Business/ Management
70%
30%
59%
25%
16%
88%
12%
Individual Participants Startups - At Least One Founder
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COHORT NEEDS & KNOWLEDGE GAPS
SELF REPORTING DATA - STRENGTHS & WEAKNESSES
The pre-questionnaire elicits a range of (self-reported) strengths
and weaknesses, learning goals, and desired outcomes. Among all cohorts, there exist similarities regarding knowledge and skill gaps, strengths and weaknesses. All participants express strong interest in developing financial management skills and learning how to raise outside investment. One participant voiced a telling concern, explaining she was nervous that “I will feel the same as I have at every other startup event - that creatives/creative companies are not welcome and do not make money.”
We
ak
es
t S
tro
ng
es
t
Being an Inspiring
Leader to my Team
Generating Innovative Products
Sales & Customer
Engagement
Marketing & External
Communications
Projecting & Managing Cash Flow
Raising Investment
Capital
23
COHORTS
I DON’T WANT TO SPEND TIME ATTEMPTING TO MODIFY OR FIT OUR PRODUCT INTO A BOX. OFTEN TIMES OTHERS WANT TO CHANGE OUR IDEA IN HOPES OF HAVING IT FIT A MORE ESTABLISHED PROFITABLE MODEL.
- 2014 Creative Startups Alum
“
“
Impact Report 2016
ACCELERATOR OUTCOMES
STARTUP ECOSYSTEM FOR CREATIVES
The ”entrepreneurial ecosystem” for creatives is emergent. Among
higher education, local government and policy makers, and small business support resources there
persists a lack of understanding about the creative economy. Creative Startups is developing resources and connectivity in the creative economy ecosystem. The
below graphic identifies impacts Creative Startups has directly led or significantly influenced through developing the Accelerator and related Acceleration Programs.
25
OUTCOMES
Policy
Markets
Human Capital
Finance
Support
Culture
C R E A T I V E S T A R T U P S ’ I M P A C T on a REGION’s C R E A T I V E E C O N O M Y
• New markets develop
• Regional connections to markets grow
• Local startups gain awareness/access to bigger markets
• Increased knowledge and skills among creative community
• Creative ventures access technical expertise easily
• Regional strength in targeted industries • Global mentor
network
• Increased valuing of creative entrepreneurs
• Peer network emerges among cohorts
• Higher ed for creatives engages in startup community
• Creatives are encouraged to launch companies
• Creative economy events flourish, attendance grows
• Angel and VC investors attend “Pitch Day”
• Top Finalist raises follow on funding from 10+ investors
• Increased awareness of “fundability” of creatives
• Creative economy strategies developed
• Research on region’s creative economy
• Leadership recognizes creative ecosystem
KEY ACCELERATOR OUTCOMES
NEW JOBS CREATED
STARTUPS SERVED41INDIVIDUALS SERVED76
144
MONTHS26
26
COMPANIES STILL THRIVING90%
PARTICIPANTS ARE WORKING IN STARTUPS100%
MILLION INVESTMENT CAPITAL RAISED
MILLION NEW REVENUES EARNED
$7.8
$6.5
27
OUTCOMES
KNOWLEDGE GAINED
Minimum Viable
Product
Seed Round or A Round
Market Segmentation
Revenue Share
Models
Equity vs Debt
Financing
Business Model
Elements
Core Value
Proposition
Customer Development
Methods
Pre-Accelerator Post-Accelerator
Human capital, defined as an individual’s knowledge,
personality, attributes, and habits (Becker, 2009) is frequently cited as a contributing factor to entrepreneurial success. Furthermore, it is well documented that entrepreneurs with “business” knowledge are more likely to experience startup success (Staniewski, 2016; Unger, Rauch, Frese, & Rosenbusch, 2011; Cooper, Gimeno-Gascon, & Woo, 1994).
Therefore, the Accelerator programs build participants’ knowledge in several relevant areas. Data show that our course has become more effective - i.e. knowledge gains have increased - over the past years.
More than knowledge, passion, or persistence, social networks tend
to predict entrepreneurial success. Entrepreneurs with diverse and disparate networks are more easily able to access essential resources including industry expertise, business acumen, financial resources, market leads, and more (Barley, 1985; Aldrich, Rosen, & Woodward, 1987; Aldrich & Zimmer, 1986). Creative Startups
strives to extend entrepreneurs’ networks through mentors, introductions to relevant connections, and peer learning.
28
100%
90%
80%
70%
60%
50%
% re
port
ing
at le
ast “
som
ewha
t fa
mili
ar”
with
con
cept
2014-2016 PRE & POST ACCELERATOR
IT WAS A FANTASTIC EXPERIENCE! THANK YOU FOR CREATING A WAY FOR CREATIVES TO LEARN ABOUT BUSINESS!!
- 2016 Creative Startups Alum
“ “
PROFESSIONAL NETWORKS
A key goal of the Accelerators, despite being short in duration,
is to grow the professional networks and connections startups have with investors, market leaders, and possible partners. Across the board, participants report an increase in their network connections and value.
We continue to increase the value of the network on behalf of the startups we serve as we build the global Creative Startups community.
In 2014 participants came in with small investor networks and did not express a whole lot of growth in this area, accounting for the lower % of overall participants reporting strengths in investor networks. In 2015, though pre-accelerator investor networks were smaller than that of 2014, the number of people post-accelerator expressing access to investor networks increased drastically. 2016 was our strongest year to date along these lines. Results in this category have shown substantial improvement over the three years the program has operated in Albuquerque.
Overall we see an increase in the number of startup founders expressing strong network connections in all areas from pre-accelerator to post-accelerator.
2014-2016 PRE AND POST ACCELERATOR
90%
70%
50%
30%
10%2014 2015 2016
% re
port
ing
at le
ast
“som
ewha
t stro
ng”
inve
stor
ne
twor
ks”
Pre-Accelerator
90%
70%
50%
30%
10%Investors Market
PartnersAccounting &
Legal Professionals
% re
port
ing
at le
ast
“som
ewha
t stro
ng n
etw
orks
”
Post-Accelerator
INVESTOR NETWORKS
Data show that our efforts in this area have become more effective - i.e. network gains have increased - over the past years.
29
OUTCOMES
INCREASED SELF-EFFICACY
2014-2016 PRE AND POST ACCELERATOR
100%
90%
80%
70%
60%
50%Pitching
InvestorsManaging Cash Flows
Selling My Products/ Services
% re
port
ing
at le
ast
“som
ewha
t com
fort
able
”
Pre-Accelerator Post-Accelerator
Leading My Team When
Things Are Not Going Well
ADDED 2016 MEASURES*
100%
90%
80%
70%
60%
50%
% re
port
ing
at le
ast
“som
ewha
t com
fort
able
”
Setting & Pursuing Market
Strategies
Identifying & Reaching Profitable Markets
Targeting Ideal Growth Capital
30
Self-efficacy is known to influence entrepreneurial intentions and
behaviors (Zhao, Siebert, & Hills, 2005). Self-efficacy, defined as the belief one has in her/his own ability to perform a task, and the presence or lack thereof, can bolster or inhibit entrepreneurial intentions and actions. Therefore, an essential outcome Creative Startups pursues is increased self-efficacy of participating entrepreneurs.
*In 2016 more questions were added to this category to better measure program impact.
JOBS, INVESTMENT, & REVENUE GROWTH
$1 M
$250k- $1M
$100-250k
$50-100k
INCREASE IN REVENUESTOP EARNING CREATIVE STARTUPS COMPANIES
0 1 2 3 4 5 6# of Startups
31
OUTCOMES
The most important outcome accelerators pursue, as with
all startup support initiatives, is economic growth. For Creative Startups this primarily means job growth. Many accelerators also heavily emphasize investment raised as a marker of success. While this may indicate that a startup is trending toward a positive outcome in terms of hiring employees, investment raised should not be equated with jobs created. Consider WhatsApp, a popular messaging platform recently acquired by Facebook for $22 billion. At the time of acquisition WhatsApp had 55 employees. While investors in WhatsApp were certainly delighted by this ROI, valid concerns have been raised
(Reich, 2014) about the future of job creation in the “digital economy”.
Creative Startups tracks jobs created, investment raised from outside investors, and revenue growth of the startups. To date, as with most successful accelerators, the majority of the growth in jobs, investment raised, and revenue growth stems from one highly successful company: Meow Wolf.
(This is not atypical of accelerators, which employ a portfolio approach
to creating measurable success. Y Combinator, for example, attributes 78% of it’s $65 billion portfolio’s value to just eight companies out of the 940 it has hosted through its accelerator (Sawer, 2015).)
Additional Creative Startups companies are gaining market traction and revenue growth. Measuring for revenue growth, 52% of the startups have experienced 500% compounded annual growth in revenues. This is meaningful as nearly half of startups from 2014 and 2015 had revenues over $25K starting the program. Of the 2014 cohort, Etkie’s revenues went from $35,000 in 2014 to $350,000 24 months later. Island Stage grew their revenues from $1,200 to $95,000 in 24 months. And Meow Wolf went from $0 to over $5,000,000. The 2015 cohort has collectively doubled their revenues in 12 months from $575,000 to $1,250,000. 2016 cohort shows revenue increases of $750,000 in three months!
37 (90%) of the startups who have completed the program are still in business. Of these, 12 (29%) are growing dramatically (see chart). The growth trajectory of these startups suggests that Creative Startups catalyzes positive shifts in the development of the majority of participating companies.
38P A R T T I M E106
F U L L T I M E
&N E W J O B S C R E A T E D .
MENTORING
Since the first round of the Creative Startups Accelerator in
2014 we have had over 70 mentors work with participating startups. The Creative Startups Mentors include founders of well-known creative companies and brands such as Fast Company Magazine,
Public Enemy, and Artful Home. Additionally, Creative Startups Mentors are founders of venture capital firms, technology firms, and emerging creative firms. Many Creative Startups Mentors are also investors. We include our investor mentors and other professional investors on Pitch Day. We carefully select Creative Startups Mentors and investors who have a strong sense of wanting to contribute to the success of emerging entrepreneurs and whose goal in working with entrepreneurs is to support the individual entrepreneurs as well as the creative enterprise.
LISA ALDERSON
Founder and President, Hopeless Records
The Creative Startups Mentors have, in aggregate, donated over 3700 hours of their time. At a conservative valuation of $250/hour for their time, this equals over $925,000 in mentoring expertise donated over 3 years. Creative Startups Mentors continue to engage with participants frequently.
Serial Entrepreneur and Technology Innovator
BRIAN HARDGROOVE
Producer, Songwriter, Bass guitarist of Public Enemy
LOUIS POSEN TONI SIKES
CEO of CODAworx
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THIS WAS THE MOST REWARDING MENTORSHIP PROGRAM I'VE BEEN PART OF. THE GENUINE PASSION AND DRIVE OF THE STARTUPS WAS ONLY RIVALED BY THE SPIRIT AND AUTHENTICITY OF THE CREATIVE STARTUPS TEAM.
- 2015 Accelerator Mentor
“ “
OF MENTORS RETURN WHEN INVITED AGAIN!
100%
O N E -ON-ONE MENTOR H O U R S G I V E N
3.7K
WINSTON-SALEM SITE OUTCOMES
2016 saw the launch of the Creative Startups Accelerator
Network. The first new Site to join the Network is hosted by The Center for Creative Economy in Winston-Salem, North Carolina. Winston-Salem’s pioneering cohort went through the Accelerator in Fall 2016 and are already achieving striking results.
The Demo Day event during the Deep Dive attracted over 250 people and was a major celebration and showcase of the region’s creative industries. Winston-Salem Mayor, Allen Joines, proclaimed September 25-30 as “Creative Startups Week,” and City Council Member, Denise Adams presented the proclamation at the event.
REVENUES BEFORE
$26KREVENUES AFTER
$360KINVESTMENT RAISED AFTER
$250K
PARTICIPATED IN THE ACCELERATOR
33
OUTCOMES
THANK YOU SO MUCH FOR STARTING THIS PROGRAM & BELIEVING IN COMPANIES LIKE US. WE CANNOT WAIT TO MAKE YOU PROUD & CELEBRATE!!!
- 2016 Winston-Salem Alum
““
10S TA R T U P S 21
INDIVIDUALS
&
Site Founder Margaret Collins with 2016 alum TALLER NU
Impact Report 2016
PROFILES IN SUCCESS
Meow Wolf provides an exceptional example of the
positive impact an accelerator can have on a team with raw entrepreneurial talent and drive. Prior to taking part in Creative Startups, Meow Wolf had consisted of a loose collective of artists building large scale “worlds of wonder” art installations. But in 2011 the group erected the Due Return, a life-size ship with interactive art throughout it’s interior. The show attracted 25,000 paying customers and Meow Wolf realized they could become more than a collective of talented friends: they could revolutionize themed entertainment.
Based in Santa Fe, New Mexico, Meow Wolf now employs 90
creatives and artists who design and maintain their newest “immersive art” exhibit, The House of Eternal Return. A full 20,000 square feet of mystical wonder, the House has been described as “interactive and otherworldly...a modern day Twilight Zone” (LA Times, 2016).
Coming into the program the founders reported they had “never heard of” various startup concepts or terminology including “market segmentation”, “revenue share models”, and “minimum viable product”. The team expressed concern about their lack of business expertise and knowledge. They
stated that they had “0” paid employees and had raised no money from outside investors.
The House of Eternal Return opened to visitors in March 2016. By the end of 2016 Meow Wolf had hosted 400,000 visitors. Amazingly, the team has earned $1,000,000 in profit and has
plans for expanding into new markets. Additionally, the upstart artist collective recently received the
prestigious Thea Award for 2017.
THE THEA AWARDS
35
PROFILES
MEOW WOLF
I’M WORRIED THAT MY LACK OF ENTREPRENEURIAL TRAITS WILL DISTRACT ME FROM LEARNING AND I WILL BECOME LESS CONFIDENT.
“
“
BEFORE AFTERWHAT AN AMAZING EXPERIENCE THIS HAS BEEN. WE ARE VERY GRATEFUL FOR EVERYTHING! IT HAS BEEN A HUGELY MEANINGFUL BOOST TO US!
ETKIE
Sydney Alfonso was born and raised in New Mexico. With
an intuitive sense of design and an ability to easily engage with artists from diverse cultures, Sydney has rapidly scaled a small startup into a growing design company. In mid-2014 Sydney launched Etkie, a design company supporting Native American women artisans. Etkie co-designs and sells exquisite products creating living wage jobs for Native women and delighting customers with unique jewelry.
Graced with a natural ability in sales and marketing, Sydney has been able to build Etkie’s success with sales growth that could soon outpace organizational infrastructure. Coming into Creative Startups, Sydney was fairly confident about many areas of
her business and felt comfortable managing various aspects, especially sales. However, finance and supply chain management presented a greater challenge. Keenly aware of this challenge, Sydney has effectively used the Creative Startups Accelerator’s
network to increase her own level of knowledge and to identify Creative Startups Mentors and content experts who complement her skills.
Maintaining contact with Creative Startups Mentors and staff, Sydney has applied the resources of Creative Startups toward her new venture’s success. Etkie is on track to reached sales of $350,000 in 2016. Sydney has hired eight Navajo women artisans who now
work full time, earning more than twice the average wage for the region.
Looking ahead, Sydney plans to expand beyond the 95 galleries and boutiques carrying her works. Present in 7 global markets and
now a regular presence at Paris Fashion week, Etkie’s success is all but assured.
36
THE MOST VALUABLE PART OF CREATIVE STARTUPS IS THE NETWORK: ITS LIKE A CUSTOMIZED GROUP OF PEOPLE WHO KNOW HOW TO SPECIFICALLY HELP YOU. AND, THERE’S A LOT OF SUPPORT FOR THE CREATIVE SIDE OF THE BUSINESS.
“ “
Embodied Labs is an exemplar of creativity and tech coming
together to bring innovation. The team has been moving fast since founding Embodied Labs, based in Chicago, in May 2016.
The company’s first product, Alfred, allows the user to understand what it is like to have vision impairment and high frequency hearing loss. In this immersive experience, the user can explore and choose how to interact in another person’s world, addressing the growing Eldercare Crisis coupled with the rising popularity of the virtual reality market.
The four co-founders have diverse backgrounds in health, science,
film, and programming. Coming in with little business skills, they took full advantage of their time during the Accelerator to strengthen their business knowledge around strategy, finance and accounting,
and raising funds from investors. They continue to actively utilize the Creative Startups Mentor network to help them strengthen skills and make connections.
The team is committed passionately to the company, and know the goals and milestones they need to reach. They currently have 10 beta customers including academic institutions - mostly medical schools and undergraduate institutions,
and are developing their next product using beta data to inform development decisions. Adapting to market realities, the team pivoted and now sells their products in a different format, 360 Video, until the price for VR equipment comes down.
The team continues to win awards and recognition as pioneering innovators in the VR medical education arena. A few of these include:• CEO Carrie Shaw named “50 on
Fire” by Chicago Inno
• 1 of 5 companies in San Diego’s Frontier Tech Showdown
• Winner, USC’s, Center for Body Computing- Medical VR Hackathon: Hack Empathy
• 1st Place - Global Ed Tech Startup Awards, “Best edtech startup West of the Mississippi”
• Stanford Med X| Ed 2017
37
PROFILES
EMBODIED LABS
I T WA S A H U G E B O O S T F O R U S AS A YOUNG COMPANY TO BE ABLE TO HAVE THAT BOOST OF CONFIDENCE FROM OUR ACCELERATOR PROGRAM.
“ “
Founded in April, 2015, Native Realities is taking the
contemporary and pop art scene by storm. Lee Francis, of Laguna Pueblo, founded Native Realities to tackle head on “the need for Native American characters in pop culture” explaining, “We don’t see villains, sidekicks, or leads who are Native American!”
Given the wide open market for pop culture that combats stereotypes and celebrates indigenous people as contemporary people, it is not surprising that Native Realities is taking off. Having already published 10 comic books with titles like, “Tales of the Mighty Code Talkers,” “Jonesy,” and “Deer Woman”, Native Realities has begun to move into the comic con,
games, and online gaming realm. The Native artists working with Lee and his team include leading talent like Arigon Starr (Kickapoo), and Jonathan Nelson (Navajo/Diné).
“There are 5 million indigenous people in the USA - and that’s just the domestic market,” Lee shares as he describes his vision for being a global brand in the pop art space. And Native people are not the only people buying the comics and attending Native Realities’ events. “We had over 1,000 people at the world’s first Indigenous Comic Con this year. When we launched Indigenous Comic Con, we weren’t sure what to expect but we had
people come in from all over the world!”
2017 promises to be a banner year for Native Realities as the fledgling startup launches 10 more titles, a
table-top game and a video game.
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NATIVE REALITIES
C R E A T I V E S T A R T U P S I S A V I S I O N R E A L I Z E R . ITS THE CHANCE TO REALLY LEARN & CONCEPTUALIZE WHAT THE BUSINESS IS ALL ABOUT IN A STRATEGIC WAY.
“ “
FUTURE DIRECTIONS
Impact Report 2016
BENEFITS TO SITE FOUNDERS
40
LAUNCH A CREATIVE STARTUPS ACCELERATOR
Each week we receive inquiries from creative economy leaders
from around the world asking:
“How can we launch Creative Startups Accelerator in our region?”
To respond to this growing demand, we launched the Creative Startups Network. We invite leaders to
Through licensing our intellectual property and providing support to new Sites, Creative Startups equips Site Founders with the essential networks, knowledge, and tools to build a successful startup accelerator for creatives. Site Founders benefit from our extensive experience, networks, and operational expertise thus bypassing the challenges and costs of launching an accelerator from scratch.
become Site Founders, building an Accelerator in their region with ample support and intellectual property from Creative Startups Network, Sites, and team.
Our goal in launching the Creative Startups Network is to accelerate the launch of over 250 new creative ventures across the globe by 2020.
To achieve this, we provide Site Founders:
•Expertise, guidance, and support to launch an Accelerator;
•Access to an international network of creative enterprise mentors, leaders, educators, and investors;
• Turnkey entrepreneurship education tools built by leading educators.
- N E W S I T E - F O U N D E R
Access to global mentor network
Dedicated Creative
Startups staff
Participation in Network & Sites learning
exchange
Templates & tools for planning &
budgeting for all program
aspects
12 course modules including:discussion guides,
case studies, assignments,
& more
Access to technology
platforms for managing applications, selecting
startups, delivering online courses, &
collecting evaluation data
Evaluation and reporting on
outcomes provided by professional
external evaluator
Support with marketing, social media, & mentor
engagement
On-going support for program
improvement
41
FUTURE
GIVEN THE POSITIVE OUTCOMES & MEANINGFUL IMPACT CREATIVE STARTUPS HAS GENERATED IN ALBUQUERQUE & WINSTON-SALEM, WE HOPE MORE COMMUNITIES WILL EMBRACE THIS BOLD NEW APPROACH TO SUPPORTING CREATIVE ENTREPRENEURS.
Leaders interested in launching a Creative Startups Accelerator can contact us at [email protected].
The Licensing Process
Creative Startups employs a multi-step licensing process to develop new Sites.
Step One includes conducting an Asset Analysis in situ with Site Founders and regional leaders. Step Two includes joining monthly conference calls plus weekly planning calls during which we transfer our
extensive implementation knowledge to Site Founders. Accelerator Launch is Step Three. Finally, Evaluation and Program Improvement are carried out over the following months to continually improve upon the program.
• Identify partners, mentors, sponsors, & pipeline of startups.
• Design timelines, implementation plans & budget.
1ASSET ANALYSIS
• Participation in monthly conference calls to learn best practices & gain support from staff & other Sites.
2KNOWLEDGE & PLANNING
• Leverage Creative Startups’ marketing and social media, application, curriculum, & evaluation tools.
3LAUNCH ACCELERATOR
• Review data & areas of strength & weakness.
• Set action plan for making improvements.
4EVALUATION & PROGRAM IMPROVEMENT
MASTER CLASSESWORKSHOPS
We design and develop workshops tailored for specific entrepreneur audiences and economic development leaders.
POTENTIAL WORKSHOPS TOPICS:• Entrepreneur Ecosystem Development• Creative Entrepreneurs & Communities
• Fully Customized for Each Client
Master Classes are designed for advanced entrepreneurs and may focus on raising venture funding and company valuation, international market expansion, and similar growth opportunities.
MASTER CLASSES ARE:• Customized for Experienced Founders• Ideal for Rapidly Scaling Startups
• Online & On Site Classes & Mentoring
CONSULTINGLABS
Labs are 4 week intensives combining rigorous coursework with mentorship and applied learning experiences.
CREATIVE STARTUPS LABS ARE:• 4 Week Intensive for Startups• Ideal for Nascent Stage Ventures• Mentorship & Classes
Creative Startups provides consulting services to city governments, economic development organizations, and creative economy initiatives building creative entrepreneur ecosystems.
POTENTIAL CONSULTING TOPICS:
• Regional Creative Economy Development• Cultivating Creative Communities • Accelerating Innovation in Regions
RECENT CLIENTS
42
LETS WORK TOGETHER!
Creative Startups works domestically and internationally
with regional governments, NGO’s, universities, economic development initiatives, and creative economy organizations to design and
develop acceleration programs tailored for specific entrepreneur audiences. Programs are designed to build capacity of participants to think and lead as entrepreneurs, increase sector specific knowledge,
and catalyze entrepreneurial activity in a region.
Contact [email protected] to discuss opportunities to work together.
OUR TEAM
43
CONNECT
Connect
CREATIVESTARTUPS.ORG
Alice Loy, PhD Co-Founder and CEO
Tom Aageson Co-Founder
Lena Ramfelt, PhDLead Faculty
Barbara Kimbell Lead Evaluator
Amy Slater Director of Operations
Julia Youngs Program Director
@createstartups
Ginny Sterpka Director of Outreach
Julia Chacon Social Media
Ernie Zahn Administrative Assistant
References
Aldrich, H. E. & Zimmer, C. (1986). Entrepreneurship through social networks. In Sexton, D. & Kasarda, J. (Eds.), The Art and Science of Entrepreneurship. Cambridge, Massachusetts: Ballinger.
Aldrich, H. E., Rosen, B. & Woodward, W. (1987). The impact of social networks on business foundings and profit: A longitudinal study. In Churchill, N., Hornaday, J., Krasner, O. J., & Vesper, K. (Eds.). Frontiers of Entrepreneurship Research. Wellesley, Massachusetts: Babson College.
Barley, S. (1985). The role of networks in the entrepreneurial process. Journal of Business Venturing 1(1), 107 - 117.
Becker, G. S. (2009). Human capital: A theoretical and empirical analysis, with special reference to education (3rd ed.). Chicago: University of Chicago Press.
Cohen, S. G., & Hochberg, Y. V, (2014). Accelerating startups: The seed accelerator phenomenon. Retrieved from http://seedrankings.com/pdf/seed-accelerator-phenomenon.pdf
Cooper, A.C., Gimeno-Gascon, J., & Woo, C. Y. (1994). Initial human and financial capital as predictors of new venture performance. Journal of Business Venturing 9(5), 371-395.
F6s.com (2017). Retrieved from https://www.f6s.com/search?q=accelerator
Fairlie, R. W. (2013). Kauffman index of entrepreneurial activity 1996 – 2013. Kansas City, Missouri: Kauffman Foundation. Retrieved from http://www.kauffman.org/~/media/kauffman_org/research%20reports%20and%20covers/2014/04/kiea_2014_report.pdf
Jones, J. (2016). Is Meow Wolf an art complex? Maybe, but it’s more like an immersive Twilight Zone in Santa Fe. Los Angeles Times. Retrieved from http://www.latimes.com/travel/deals/la-tr-meow-wolf-santa-fe-20160629-snap-story.html
Kempner, R., & Roberts, P. (2015). Aren’t accelerators great? Maybe… The Wall Street Journal. Retrieved from http://blogs.wsj.com/accelerators/2015/04/10/randall-kempner-and-peter-roberts-arent-accelerators-great-maybe/
Kosoff, M. (2016). These 20 VC-backed companies had the biggest exits of the last year. Business Insider. Retrieved from http://www.businessinsider.com/the-20-biggest-vc-backed-company-exits-of-2015-2016-1/#20-naurex-sold-for-560-million-1
Lhermitte, M., Perrin, B., & Blanc, S. (2015). UNESCO Cultural times report: The first global map of cultural and creative industries. UK: Ernst & Young. Retrieved from www.ey.com/Publication/vwLUAssets/ey-cultural-times.../ey-cultural-times-2015.pdf
Loeb, S. (2014). Venture-backed exits: The top 10 of 2014. Vator News. Retrieved from http://vator.tv/n/3b16
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McAdam, D., & Paulsen, R. (1993). Specifying the relationship between social ties and activism. American Journal of Sociology 99(3), 640-667.
McAdam, D., Tarrow, S., & Tilly, C. (2001). Dynamics of contention. Cambridge: Cambridge University Press.
McPherson, M., Smith-Lovin, L., & Cook, J. M. (2001). Birds of a feather: Homophily in social networks. Annual Review of Sociology 27, 415-444.
Monitor Deloitte (2015). Accelerating impact: Exploring best practices, challenges, and innovations in impact enterprise accelerators. New York: The Rockefeller Foundation. Retrieved from https://www.rockefellerfoundation.org/app/uploads/Accelerating-Impact.pdf
Reich, R. (2014). Inequality, productivity, and WhatsApp. Retrieved from http://robertreich.org/post/77305875533
Sawers, P. (2015). Y Combinator startups have raised $7B with a $65B total valuation; 8 are $1B unicorns. VentureBeat. Retrieved from http://venturebeat.com/2015/08/27/y-combinator-startups-have-raised-7b-with-a-65b-total-valuation-8-are-1b-unicorns/
Staniewski, M. W. (2016). The contribution of business experience and knowledge to successful entrepreneurship. Journal of Business Research 69(11), 5147–5152.
UNESCO (2013). Creative economy report 2013 special edition: Widening local development pathways. Retrieved from http://www.unesco.org/new/en/culture/themes/creativity/creative-economy-report-2013-special-edition/
Unger, J. Rauch, A., Frese, M., & Rosenbusch, N. (2011). Human capital and entrepreneurial success: A meta-analytical review. Journal of Business Venturing 26(3), 341–358.
Zhao, H., Siebert, S. E., & Hills, G. E. (2005). The mediating role of self-efficacy in the development of entrepreneurial intentions. Journal of Applied Psychology 90(6), 1265-1272.
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REFERENCES
46
Additional Resources
READINGS
ORGANIZATIONS
Alliance for the Arts in Research Universities
b.creative
British Council Creative Economy Programs
Creative Business Cup
Creative Economy Coalition
Creative Europe
CreativeMornings
The Creative City: A Toolkit for Urban Innovators. Author: Charles Landry
The Creative Economy: How People Make Ideas from Money. Author: John Howkins
Creative Industries Report. Author: Americans for the Arts
Future Cities: Driving Growth Through the Creative Economy. Author: The Economist
How Cities Can Nurture Cultural Entrepreneurs. Author: Ann Markusen
A Manifesto for the Creative Economy. Authors: Hasan Bakhshi & Juan Mateos-Garcia, Nesta
The Orange Economy: An Infinite Opportunity. Authors: Felipe Buitrago Restrepo & Iván Duque Márquez
The Otis Report. Author: Otis College of Art and Design
The Rise of the Creative Class, Revisited. Author: Richard Florida
Ciudad Creativa Digital
E. M. Kauffman Foundation
Martin Prosperity Institute
Mideast Creatives, Hivos
Singapore Design Council
UNESCO Creative Cities Network
Upstart Co-Lab
creat ives tar tups.org
B E A V I S I O N A R Y . BE UNABASHED ABOUT WHAT YOU WANT TO SEE HAPPEN IN THE WORLD.
- 2016 Creative Startups Alum
““
© 2017 Creative Startups
creativestartups.org