hybrid business incubation models (nbia 2015)

HYBRID INCUBATION MODELS Best & Next Practices

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

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…


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


HYBRID INCUBATION MODELS last, best & next practices

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,


YOUR ENTRE-ECOSYSTEM what does it look like?

TECHColumbus

SCAPE-DurangoSpace

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

TECHCOLUMBUS

NBIA member TECHColumbus functions as entrepreneurial hub – more open, less walls, company-focused, space is secondary

2015 International NBIA Conference, Denver, Colorado TECHColumbus

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!


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


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


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

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

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.


CORPORATE INCUBATION Corporations looking to capture & nurture innovation

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!


HYBRID MODELS & INNOVATION founder-focused, lean startup, flexible space

CEI LEADING THE WAY for innovation in Arizona


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

COMPETITIVE INTELLIGENCE LAB

PADT STARTUP LABS BIOTECH EQUIPMENT

ARIZONA RISING


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


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


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!


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


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”

JASPER WELCH Co-Founder, DurangoSpace [email protected]

www.jasperwelch.org


Contact Us!

JEFF SAVILLE Executive Director,

[email protected] http://ceigateway.com

HYBRID INCUBATION MODELS

What QUESTIONS Do You Have for Jeff & Jasper?

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