News for VDOs

VDO News
Congratulations to Tom Walker for his New Position with TechColumbus

Tom Walker, President and CEO of the Venture Development Organization i2E in Oklahoma, has resigned to take the same position with TechColumbus, in Columbus, Ohio.  Mr Walker will continue to fulfill his duties at i2E during the transition, and i2E is conducting a national search for a new leader.

“I’m honored to accept this opportunity and excited to join the Columbus area’s entrepreneurial community,” Mr Walker said. “With the region’s outstanding entrepreneurs and the committed resources and collaborative activity from the city, state, and partners, such as the Ohio State University, Battelle, Columbus 2020, and the Third Frontier, TechColumbus is positioned to achieve even greater outcomes and to enhance its national recognition as a model of new company formation and job creation.”

Prior to accepting his new position with TechColumbus, Mr Walker helped found i2E, and became President and CEO in 2007.  Since assuming the leadership of i2E, Mr Walker has overseen significant growth in the organization’s investment funds and additional angel capital attracted to client companies, as well as becoming a leading figure in the tech-based economic development field.  “When we founded i2E a decade and a half ago, I had no idea of just how fulfilling and exciting the job of helping build Oklahoma’s entrepreneurial ecosystem was going to be,” Mr Walker said.

During his years at the head of i2E, the organization brought in $40 million of investment capital and attracted over $700 million in angel and venture capital investments to client companies.  These companies have had employment growth over 25 percent over the last three years, and contribute more than $50 million to Oklahoma’s GSP (GDP).

“Tom’s legacy is an entrepreneurial ecosystem that has a much better opportunity of commercializing intellectual property and thereby creating Oklahoma-based jobs,” said Howard Barnett, President of Oklahoma State University-Tulsa and Oklahoma State University-Center for Health Sciences, and vice-chairman of i2E Board of Directors.

Submitted by Benjamin Au, RIAN Assistant Director: May 17, 2012

Government
New SBIR/STTR Rules Proposal

Are you a small business or otherwise have an interest in or wish to comment on new size standards rules for SBIR/STTR? 

On May 15, the SBA published in the Federal Register seeking comment on proposed rules for size standards related to SBIR/STTR.  Simply, the new rule would allow for a small business to be majority owned and controlled by Venture Capital Operating Companies, hedge funds, and/or private equity firms and still be allowed to compete for SBIR/STTR funding.  In addition, foreign ownership of a small business is addressed.

The rules include, among others, definitions and programs subject to size determinations, ownership and control, and certification.

A full description of the new rules, as well as an opportunity to comment, is available on the Federal Registry.  Comments are due by July 16.

Submitted by Benjamin Au, RIAN Assistant Director: May 16, 2012

Legislation
CJS Amendments Voted on in House of Representatives

On May 8, the House of Representatives voted on two amendments pertaining to the EDA as part of the debate on the Commerce, Justice, Science, and Related Agencies Appropriations Act, 2013.

The amendment introduced by Mike Michaud (D-ME) would have restored $38 million to the EDA.  It failed 190-218.

A second amendment introduced by Mike Pompeo (R-KS) would have eliminated the EDA. It failed 129-279.

A third amendment was approved by voice vote.  This amendment, introduced by David Cicilline (D-RI), would move the regional innovation program language (Section 27 of the amended Stevenson-Wydler Act of 1980) from the America COMPETES Act (the relevant language begins on page 49) to be included into the EDA budget.  This would allow for awards for, among others, planning activities and technical assistance, “facilitating market development of products and services developed by a regional innovation cluster;” “developing relationships between a regional innovation cluster and entities or clusters in other regions;” and “interacting with the State and local governments to meet the goals of the cluster.”

President Obama requested $25 million in funding for the Regional Innovation Strategies Program.

Submitted by Benjamin Au, RIAN Assistant Director: May 9, 2012

Legislation
President Obama Signs JOBS Act

Today, President Obama singed the Jumpstart Our Business Startups (JOBS) Act.  The bill had passed the Senate last week by a vote of 73-26, with 26 Democrats joining all but one Republican in supporting the bill.  Twenty-five Democrats and one independent voted no.

As part of the follow-up to the signing, the White House will hold an off-the record briefing call on Monday, April 9 at 4:30 eastern.  Dial 800.230.1085 for the call.

Submitted by Benjamin Au, RIAN Assistant Director: April 5, 2012

VDO News
Boulder Innovation Center to Change Name

Today, the Boulder Innovation Center announced that it is changing its name to the Innovation Center of the Rockies.  The organization will remain based in Boulder.

In a released statement, President Tim Bour stated that the name change reflects the expanded state-wide view of the organization, as it partners with the University of Colorado and the Colorado School of Mines tech transfer offices.

The full press release on the name change is available on the center’s website.

Submitted by Benjamin Au, RIAN Assistant Director: March 20, 2012

Community
Experts Meet with Rhode Island Governor

Last week, three experienced leaders in the innovation and entrepreneurial fields convened in Providence, Rhode Island to provide expertise and guidance to organizations and individuals in the state, including Governor Lincoln Chafee.

The experts brought in to consult with the Rhode Island community were Chris Coburn, Executive Director of Cleveland Clinic Innovations (Cleveland, OH), Rich Lunak, President and CEO of Innovation Works (Pittsburgh, PA), and Jeanne Mell, vice president at the University City Science Center (Philadelphia, PA).

The forum began with an introduction of the state of Rhode Island’s tech-based economic development community, followed by the governor leading a panel discussion with the consultants.  The afternoon sessions included an exploration of how the private and public sectors can work together to build this infrastructure, and the necessity of building a diversified funding network.

Local coverage on the forum includes the Providence Business News and the Providence Journal.

Submitted by Benjamin Au, RIAN Assistant Director: March 20, 2012

Government
National Network for Manufacturing Innovation

On Friday, President Obama announced more details on the National Network for Manufacturing Innovation.  The $1 billion proposal first outlined in the FY13 budget request would establish a network of fifteen institutes around the country, which would each serve as a regional hub, to encourage investment and create a more competitive manufacturing ecosystem.

The Network institutes will increase collaboration between industry, universities and community colleges, federal agencies, and states to accelerate manufacturing innovation and developing better connections between basic research and product development.

As part of this program, a $45 million pilot institute will be created with funding provided by the Defense, Energy, and Commerce department as well as the NSF.   The pilot institute would focus on a specific technology area.  $30 million would target investments in advanced manufacturing equipment, $5 million from the NSF would support basic research and workforce development, and $10 million from Defense would support scaling up of technologies developed from the institute in support of national defense needs.

Submitted by Benjamin Au, RIAN Assistant Director: March 13, 2012

Community
Halo Report Released

The Angel Resource Institute, the Silicon Valley Bank, and CB Insights have released their 2011 review, the Halo Report, of angel investment community across the country.  The report is intended to track the angel investment activities and trends in North America.  (The compositors of the report are accepting data submissions from angel groups and independent angle investors.  Those interested should email Sarah Dickey, ARI Research Manager.)

Among the findings:

• The median angel group rounds grew to $700,000, a 40% increase from 2010
• 58% of angel group investments went to healthcare and internet companies
• California accounted for 21% of nation-wide deals,  and 29.8% of total dollars

Submitted by Benjamin Au, RIAN Assistant Director: March 12, 2012

Legislation
House Passes JOBS Act

On Thursday, the House passed the Jumpstart Our Business Startups (JOBS) Act by a vote of 390-23.  All of the Republican delegation voted for the bill, and were joined by 158 Democrats.  Senator Harry Reid (D-NV) has announced he will introduce similar legislation in the Senate soon.

Among the components of the bill, an SEC regulation which bans companies from advertising for investors would be removed, as well as eliminating restrictions on “crowd funding,” which enables small companies to raise capital from larger pools of investors.  In addition, small companies could now sell up to $50 million in shares as part of an IPO, and the number of shareholders would increase from 500 to 2,000.

The full text of the bill is on the Library of Congress Thomas website.

Submitted by Benjamin Au, RIAN Assistant Director: March 12, 2012

Federal Funding
More Details, and the FFO, Announced on the Rural Jobs and Innovation Accelerator Challenge

Thirteen federal agencies, led by the Economic Development Administration, the USDA, the Delta Regional Authority, and the Appalachian Regional Commission, are providing funding, totaling $15 million, and other resources to assist in job creation and economic growth in rural areas.  The effort will leverage local assets and foster connections to industry.  More imformation on the program can be found on the USDA Rural Jobs and Innovation Accelerator Challenge website.

Is it expected that 20 awards will granted, based on applicants and eligibility.  The deadline for applications is May 9.  Find the FFO here.  The USDA has also released a document addressing FAQs on the program and the application process.

Other agencies participating include the USPTO, NIST/MEP, SBA, EPA, and the Departments of Education, Labor, Energy, and Housing and Urban Development.

Read the Department of Commerce press release.

Submitted by Benjamin Au, RIAN Assistant Director: March 8, 2012

VDO News
$3.3 Million Fund Created for Baltimore Start-ups

The Abell Foundation is providing $3 million to the Propel Baltimore Fund, a new investment fund to provide capital to new tech startups in Baltimore.  An additional $300,000 is being contributed by Maryland TEDCO.

The investments will range from $50,000-$100,000, but could reach up to $220,000. 

The Abell Foundation is based in Baltimore and targets finding solutions to urban poverty, through a mix of education, health services, and workforce development, among others.  In addition to this latest $3 million investment, Abell has earlier this year given $100,000 to Baltimore’s Emerging Technology Center incubator, and $75,000 for a survey of the city’s technology community.

Maryland TEDCO is an independent organization dedicated to creating and growing businesses across the state.

More details on this new fund can be found here and the TEDCO press release.

Submitted by Benjamin Au, RIAN Assistant Director: March 8, 2012

Government
EDA March Newsletter

In this month's EDA newsletter, three members of the National Advisory Council on Innovation and Entrepreneurship (NACIE) – Ray Leach, of JumpStart in Cleveland, Ohio, RoseAnn Rosenthal of the Ben Franklin Technology Partners of Southeastern Pennsylvania in Philadelphia, Pennsylvania, and  NACIE co-chair and University of Michigan President Mary Sue Coleman – speak about the importance of supporting small business development and the role universities should play in developing and utilizing an entrepreneurial ecosystem.

Mr Leach and Ms Rosenthal responded to several questions on the NACIE project, the importance of public-private partnership, and the successes their respective organizations have had in launching a tech-based startup.

Federal support includes the administration’s $2 billion expansion of the Small Business Administration’s programs providing capital for investment in small, high-potential ventures.  Ms Rosenthal focused on efforts to increase the availability of pre-seed and seed capital.

Also in the newsletter, Ms Coleman writes of the importance of universities across the country in focusing their support of innovation.  “In today’s increasingly competitive marketplace, universities and their partners must become more intentional in harnessing the potential of this [entrepreneurial] ecosystem.”

To that end, she points to university programs designed to help students develop entrepreneurship skills, as well as fostering greater connectivity between universities and industry.  This includes a stronger relationship with local and regional economic develop.  An example of this is the Florida Innovation Hub, which opened in January and is designed to better connect the University of Florida with the city of Gainesville and foster new enterprises.

The federal government also has a stake in aiding this system.  The Advanced Manufacturing Partnership will contribute $500 million to help industry, universities, and the government work together to assist in the development and implementation of new manufacturing technologies and methods.

A note: the EDA website has been experiencing issues for some time, and although they are endeavoring to resolve the issue, it is expected to continue to be down for the near future.   This also includes email communication, as well as the monthly newsletter.  A list of EDA contacts is available on the site as it is currently constituted, and several FFOs are also listed.

Submitted by Benjamin Au, RIAN Assistant Director: March 2, 2012

Successes
University of Cincinnati Technology Commercialization Accelerator Formed

The University of Cincinnati (UC) has entered into a partnership with the Midwest EB5 Regional Center to establish the University of Cincinnati Technology Commercialization Accelerator.  The accelerator will be located near campus to help commercialize university basic technology research and to provide a hub for startup companies.  This includes market research and developing a commercialization strategy.

Midwest EB5 has committed $500,000 to create the accelerator, and UC has provided $250,000.  University funding will come from Southern Ohio Creates Companies pre-seed fund.

The goal will be to connect regional resources to the accelerator in order to contribute to the commercialization process.  It is anticipated that four part-time employees, two EiRs and two data analysts, will provide support in the accelerator.

For more details see the UC press release.

Submitted by Benjamin Au, RIAN Assistant Director: February 27, 2012

Federal Funding
Commerce Department Launches App Challenge

On Wednesday, the Commerce Department announced a $10,000 challenge to develop an innovative app that utilizes at least one Commerce Department data set to better assist businesses and/or improves the services provided by the newly-launched BusinessUSA website.

All relevant information, including how to enter, judges and judging criteria, and the submission and awarding timeframe are available on the challenge website.  Data sets can be found on the Business Data and Tools page.

Submitted by Benjamin Au, RIAN Assistant Director: February 24, 2012

Federal Funding
White House Announces Rural Jobs Accelerator

On Tuesday, the White House announced the Rural Jobs Accelerator, a national competition for projects that promote innovation regional job creation.  The $15 million for the program will come from the USDA (through the Rural Community Development Initiative), Economic Development Administration, the Delta Regional Authority, and the Appalachian Regional Commission.  All contributing agencies will contribute administrative and technical assistance to the awardees.  The FFO will be released within the next few weeks.  Read the full White House announcement here.

Submitted by Benjamin Au, RIAN Assistant Director: February 24, 2012

Government
BusinessUSA Launches

The BusinessUSA site, a part of usa.gov, has been released in beta.  BusinessUSA is intended to be a one-stop portal for information and assistance for small businesses.  This is part of the president’s proposal to restructure the executive branch to consolidate the Small Business Administration, US Trade Representative, Export-Import Bank, Overseas Private Investment Corporation, the Trade and Development Agency, as well as the business and trade functions of the Department of Commerce into a new department to aid in the creation and development of small businesses.

On the site, organizations can find local, state, and federal government contacts and agencies, and pose your individual questions directly to the government through email and chat.  In addition, a list of publications are available for review.

Submitted by Benjamin Au, RIAN Assistant Director: February 22, 2012

Community
Practitioners Assist New Mexico in Creating a New Innovation Economy

In mid-February, Northern New Mexico Connect and the Los Alamos National Laboratory Tech Transfer Office hosted a conference with the goal of creating and integrating a new model for the existing venture angel fund.

Beth Sirull of Pacific Community Ventures (San Francisco, CA), Tom Walker of i2E (Oklahoma City, OK), and Tim Williamson of Idea Village (New Orleans, LA) convened in Santa Fe, New Mexico, to assist the various organizations, groups, and investors in creating this new model.

After a full day of presentations from the invitees, discussions, and self-assessment, the group was able to focus on several actionable items going forwards which it is hoped will increase the collaboration between the innovation community in the greater Santa Fe and Albuquerque region and the investor and venture community.

Northern New Mexico Connect is the economic development investment organization of the Los Alamos National Laboratory (LANL).  They provide coaching and networking and technical assistance to clients in an effort to develop the entrepreneurial culture in New Mexico.

The LANL Tech Transfer office is engaged in moving technologies developed at LANL into the general economy through licensing technology to start-up ventures.

(Pictured: Belinda Snyder and Mariann Johnston of LANL)

Submitted by Benjamin Au, RIAN Assistant Director: February 21, 2012

Federal Funding
Administration Announces FY13 Budget Request

Last week, SSTI published its annual budget review for the administration’s requested budget for Fiscal Year 2013.

Details from the Commerce budget request include a total budget of $8.0 billion, a 2.2 percent increase over FY12 enacted levels.  This includes a request for $182 million for EDA programs (not including administrative costs), which amounts to an 18.2 percent decrease from FY12.

EDA is in the process of transitioning away from capital projects and towards more regionally-focused investment projects.  As part of that, the 21^st Century Innovation Infrastructure program would be reduced nearly 53 percent.  The funds would be reallocated into Economic Adjustment Assistance (17.1 percent increase) for community support to develop and implement community asset leveraging strategies, and into the new Regional Innovation Strategies, which would receive $25 million to encourage innovation, regional collaboration, and regional innovation clusters.  This would include the administration of the i6 Challenge and the Jobs and Accelerator Challenge.

The Small Business Administration requested budget increases 3.2 percent to $948.3 million.  This includes $496.4 million for SBA’s three loan programs (Section 7(a), 504/Certified Development Company, and Microloans) which would support more than $22 billion in small business financing.

The Small Business Investment Company would be funded to support $4 billion in debentures.  Small Business Development Centers would receive $111.7 million (8.8 percent decrease).  The SBA also operates twenty Regional Innovation Clusters, and $3.4 million (30 percent decrease) has been requested to continue the program.

Submitted by Benjamin Au, RIAN Assistant Director: February 21, 2012

Government
EDA Head John Fernandez Steps Down

On February 16, U.S. Commerce Assistant Secretary for Economic Development John Fernandez announced he was stepping down from that position.  After two and a half years as the head of the Economic Development Administration, Mr Fernandez will now continue to work to encourage and support innovation and job growth through the private sector.

In a statement, U.S. Commerce Secretary John Bryson said, “John…has positioned EDA to continue to leverage private-public investments, support bottom-up strategies, and build 21^st century infrastructure.”

His successes while at the helm of EDA include the i6 Challenge, the Jobs and Innovation Acceleration Challenge, and the U.S. Cluster Mapping project.

In the interim, Deputy Assistant Secretary Matthew Erskine will assume the role of Acting Assistant Secretary.

Submitted by Benjamin Au, RIAN Assistant Director: February 21, 2012

VDO News
NewSchools Venture Fund Launches New Seed Fund

The San Francisco-based NewSchools Venture Fund has launched a new seed fund targeted towards early stage companies which is intended to support entrepreneurs developing education technology applications and tools geared to improve educational opportunities for low-income communities.  Over the course of the year, up to ten investments are planned from this new seed fund. 

As part of this new fund, NewSchools has already made two initial investments.  First, Goalbook, which is a social and mobile platform to help manage “individual education plans” for special education students.  Second, Engrade, is a set of online tools allowing educators to manage classes.

NewSchools Venture Fund, founded in 1998, is a non-profit funding and supporting entrepreneurs creating innovative solutions to problems in public education.  To date, $180 million has been invested to achieve these goals.

Submitted by Benjamin Au, RIAN Assistant Director: February 1, 2012

Startup America
Startup America Partnership Expands

Today, the number of Startup Regions has more than doubled, with nine new Regions being launched in the closing days of January, bringing the total number of Regions to 17.  The January additions to the Startup America Partnership are Hawaii, Kansas, Michigan, Missouri, Nebraska, Rhode Island, Vermont, Virginia, and the District of Columbia.  These join the existing Startup Regions which launched last year.

A Startup Region is intended to provide local entrepreneurial support to young companies.  If you are interested in becoming involved with your state’s or region’s Startup program, or would like to participate in bringing Startup America to your state, visit this page.

Submitted by Benjamin Au, RIAN Assistant Director: January 31, 2012

Government
The White House State of the Union Follow-Up

In the wake of President Obama’s State of the Union Address on Tuesday evening, the White House is hosting a series of conference calls and information sessions.  The full schedule can be found on the White House’s State of the Union page.

The White House is holding a conference call on Wednesday, January 25^th at 3:30 eastern with business leaders to discuss the economic blueprint the president laid out in the State of the Union.  To register, RSVP to whbc@who.eop.gov.

In addition, the economy-related sessions include:

• Small Business Owners on Thursday the 26^th at 4:00 eastern
• Energy on Friday the 27^th at 2:00 eastern
• Economy on Friday the 27^th at 4:00 eastern
• Job Opportunities on Friday the 27^th at 5:00 eastern

Submitted by Benjamin Au, RIAN Assistant Director: January 25, 2012

Media
RIAN Webinar Series Continues...

On Tuesday, RIAN continued its webinar series with its third presentation, this one devoted to the EB-5 Program, an investment and immigration program administered by U.S. Citizenship and Immigration Services.

Rodrigo Cintra, Manager of the North Dakota/Northwest Minnesota Regional Center presented a brief background on the Center for Innovation, the North Dakota organization which oversees the Regional Center, and then detailed the EB-5 process and structure, and the success which the Center has had.  Bruce Gjovig, Director of the Center for Innovation, also joined in the call.

Mr Cintra and Mr Gjovig fielded a number of questions, including the programs applicability to early-stage and start-up companies, the usefulness of closer integration across the EB-5 community, and the challenges of convincing potential investors.

The powerpoint from the webinar is below:

EB-5

Submitted by Benjamin Au, RIAN Assistant Director: January 25, 2012

Media
RIAN Webinar Series Continues...

On Tuesday, RIAN welcomed numerous individuals from the VDO and economic development committee for our second webinar in as many weeks.  The focus of this presentation was the creation and inclusion of an accelerator as part of an organization’s overall venture-development strategy.

Presenting were Rich Lunak, President and CEO of Innovation Works, and Jim Jen, Director of AlphaLab, Innovation Works’ accelerator.  A synopsis by Mr Lunak of the Innovation Works and its impact in the southwestern Pennsylvania region was followed Mr Jen walking through the background for the AlphaLab and the early successes it has achieved so far since its inception.

The majority of the time was reserved for a Q&A session, which included a number of interesting questions and further expanded on the structure and operations of AlphaLab and its interaction with new ventures.

RIAN’s webinar series will continue on January 24 with “Financing Your Client Firms: The EB-5 Model”

Here is the powerpoint from the webinar:The Role of Accelerators in Regional Innovation

Submitted by Benjamin Au, RIAN Assistant Director: January 18, 2012

Federal Funding
A Brief on Early Stage SBIC

Sean Greene, Associate Administrator for Investment and Special Advisor for Innovation for the Small Business Administration, presented a webinar on the proposed Early Stage SBIC Initiative rules which were announced in December of last year.

The goal of this new initiative is to address the investment gap which occurs in the early stages of business growth.  SBA will make a commitment of up to $1 billion over five years to this program.  Other key terms of the proposal include a private capital investment of a minimum of $20 million, with a maximum leverage of $50 million per SBIC.  The commitments have a ten year maturity, and other fees and interest payments apply.

The regulations for the Early Stage SBIC can be found online.  Public comments on the regulations are due by February 7.  A PDF of the proposed program, as well as a brief introduction to the SBIC program as a whole, can be found is also available.  A page addressing FAQs on the changes will be posted soon.

Submitted by Benjamin Au, RIAN Assistant Director: January 16, 2012

Government
President Obama Proposes Consolidating Business and Trade Agencies

Today, President Obama requested Congress to grant him the authority to reorganize the executive branch and to radically change the structure of governmental business assistance.  Under the proposal, the Small Business Administration, US Trade Representative, Export-Import Bank, Overseas Private Investment Corporation, the Trade and Development Agency, as well as the Department of Commerce’s business and trade functions, would be consolidated to provide a more efficient and effective department for small businesses.  A new website, BusinessUSA would also be launched to provide a single source for information and assistance.

In discussions with small business leaders, it was found that the process for funding and assistance was too confusing, and that the system was too much of a maze.  The President remarked that we “live in a 21^st economy, but we’ve still got a government organized for the 20^th century.”  The proposed reorganization is intended to modernize and streamline small business assistance.

Not since 1984 has Congress granted a president the authority to reorganize the executive branch, the “consolidation authority” (the Department of Homeland Security was created by an Act of Congress.)

In addition, the President is elevating the Small Business Administration to a Cabinet-level agency, allowing Administrator Karen Mills, provided small businesses a voice in administration decisions.

See the White House press release for more details.

Submitted by Benjamin Au, RIAN Assistant Director: January 13, 2012

Successes
Florida Innovation Hub Opens!

In June of 2010, a groundbreaking ceremony was held to begin construction on the Florida Innovation Hub.  On Wednesday, the 48,000 square foot facility opened.  U.S. Assistant Secretary of Commerce for Economic Development John Fernandez, U.S. Senator Bill Nelson, and other dignitaries from the community and the University of Florida were in attendance.

The Florida Innovation Hub is a project of the University of Florida, to serve as a business incubator and landing space for companies with technologies which have been spurred from University of Florida research.  The goal is provide these startup companies with the necessary infrastructure and resources to turn these technologies into productive new enterprises.  In so doing, it is hoped these businesses will diversify the economy of not only Gainesville, but also the state as a whole.

The building itself is the result of a $8.2 million grant from the Economic Development Administration, and is intended to be the centerpiece of an “Innovation Square” at the University of Florida.  The Square will help connect the University with the city of Gainesville both economically and physically.

In a message praising the opening of the Hub, Secretary Fernandez said, "America will always depend on its entrepreneurs to be the key drivers of innovation, but they don't operate in a vacuum.  They need an economic ecosystem to thive in - one that includes such elements as wet labs, broadband, research parks and ready access to a population of qualified employees.  The Innovation Hub is just such a place."

Submitted by Benjamin Au, RIAN Assistant Director: January 12, 2012

Media
RIAN Webinar Series Begins

On Tuesday, RIAN hosted the first of its webinar series.  Tom Walker, President and CEO of i2E in Oklahoma, and Amy Coates Madsen of the Standards for Excellence Institute based in Maryland, presented on the process involved in earning the seal from the Institute, and the importance of going through the certification process.

Mr Walker noted that both the process and the certification itself provided value to his organization.  This included reinforcing governance and accountability practice already in place and fine-turning those where needed.  It also helped strengthen existing partnerships while also building new ones.  Ultimately, he believes that going through the process of earning the seal provides a competitive advantage for funding.

The Standards for Excellence is a project of the Maryland Association of Nonprofits.  It looks at 55 benchmarks over 8 guiding principles when reviewing an organization for certification, and has many “replication” partners across the country.  For more information on the Institute or the seal, or to learn how to get started, go to the Standards for Excellence website.

RIAN’s webinar series will continue on January 17 with “The Strategic Role of Accelerators in Regional Innovation."  Note: the title of this webinar has changed.  It was previously known as "VDOs & Accelerators: Effective Parnerships."

Here is the powerpoint from the webinar:Is Your Organization Fit for Funding, Jan 10

Submitted by Benjamin Au, RIAN Assistant Director: January 11, 2012

Funding
Connecticut Innovations Launches TechStart Fund

The new TechStart Fund announced by Connecticut Innovations is intended to encourage early stage technology innovation.  The fund will provide teams of entrepreneurs or students with capital to help determine business viability and/or to target future funding for business launch.

The 10-week pilot program will start in March and take place at the CTech@Science Park at Yale University in New Haven, Connecticut.

Through the program, teams will the provided with mentors and make connections to other startup companies, learn about possible sources of capital, and receive assistance in preparing a business plan.  In order to be eligible for the program, the team must be based in Connecticut.

For more detailed information on the fund, visit the TechStart Fund page on the Connecticut Innovations website.

Connecticut Innovations also announced this week $50 million per year for the next five years will be made available for tech-based economic development.  $25 million of the annual funding will come from the State of Connecticut, and the remaining $25 million per year from Connecticut Innovations.  The $50 million is planned for investments in companies through pre-seed program, loans, business accelerators, and follow-on investments, as well as recruitment of technology companies to Connecticut.  Connecticut Innovations has the full details in their press release.

Submitted by Benjamin Au, RIAN Assistant Director: January 11, 2012

Reports
Secretary Bryson Presents Report on Innovation and Economic Competitiveness

The reauthorization of the America COMPETES Act charged the Commerce Department to prepare a report on innovation and economic competitiveness for the country, "The Competitiveness and Innovative Capacity of the United States."  On January 6, the Center for American Progress hosted Secretary of Commerce John Bryson to present initial findings and proposed solutions from the report. 

Joined by members of the Innovation Advisory Board, Secretary Bryson stated that the report found three major areas for targeted federal support: basic research, education, and infrastructure.

Specifically, the report found that the federal government share in funding of basic research has fallen from 70% in 1980 to 57% today.  In education, 12.8% of US college graduates are in STEM (science, technology, engineering, mathematics) fields, whereas 39% of students in other countries complete their degree in one of these fields.  And in infrastructure, the country needs to create a modern electrical grid and modernize and expand broadband internet access in both urban and rural areas.

The report encourages federal government support for R&D to return to 1960s levels, and that there needs to be a simplified and enhanced R&D tax credit.  In addition, increasing the size and quality of STEM teacher ranks, as well as investing in high-speed internet for private citizens and businesses and the implementation of a smart electric grid were also recommended. 

The full report can be found on the America COMPETES website.

Submitted by Benjamin Au, RIAN Assistant Director: January 6, 2012

Submission
EDA Request for Public Comment

The Economic Development Administration is seeking public comment on proposed regulation revisions to agency regulations.  A brief summary of the proposed regulations can be found here.  They include enhancing customer service through streamlining EDA regulations and supporting innovation and entrepreneurship, which will in turn help to create jobs and stimulate economic growth.

Comments on the regulations can be submitted through one of three ways: at the Federal eRulemaking Portal, on the EDA website, or by mail to:

Economic Development Administration

Include “Comments on EDA’s regulations” and Docket No 110726429-1418-01 on the envelope.

Comments are due by February 6.

Submitted by Benjamin Au, RIAN Assistant Director: January 6, 2012

Federal Funding
SBA Hosts Webinars on Proposed SBIC Rule

The Small Business Administration (SBA) is hosting three webinars in January to familiarize individuals and organizations on proposed changes to the Small Business Investment Companies (SBIC).  The SBA proposed in December an Early Stage SBIC rule to define a new sub-category of SBICs that will focus on making equity investments in early stage small businesses, as part of the Obama Administration’s “Star-Up America Initiative.”  More on the Early Stage SBIC Initiative is available on SBA website.

The first webinar will be help on January 11 at 1pm eastern time, with a registration closing time of January 6 at 11:59pm eastern.  This webinar is geared towards individuals familiar with the SBIC program.

The remaining two webinars will be held on January 13 at 1pm eastern (registration closes on January 10 at 11:59pm eastern) and January 19 at 2pm eastern (registration closes on January 13 at 11:59pm).  These two are targeted towards those not familiar with the SBIC program.

To register, you must send an email to startupamerica@sba.gov.  The subject line must include which webinar you would like to include, and the body should include name, title, organization, number, email, and fax.  Registration will be limited.

Submitted by Benjamin Au, RIAN Assistant Director: January 4, 2012

VDO Community-building
RIAN Launches Webinar Series in 2012

With the new year, and with everyone back from their winter holidays, RIAN is launching a series of webinars which will be held over the following months on Tuesdays at 2ET (although this time may vary depending on presenters’ schedules).  These webinars will consistent of two streams, Issues and Organization, which combined will help serve to connect the VDO and VDO-like community across the country and help to exchange best practices and new ideas.

Check our Events Page to register.  Here is the calendar and summary for the programs coming up (through January):

Is Your Organization Fit for Funding?

January 10 (3pm ET) – As at the beginning of every year, it’s time to make resolutions.  In the first in our Organization series, Tom Walker of i2E in Oklahoma has taken a course on integrity which he will share with the community about how organizations can change their attitudes and operations.  Joining him will be Amy Madsen, Program Director of the Standards of Excellence Institute which certified Mr Walker and i2E.

The Standards of Excellence Institute is a project of Maryland Nonprofits designed to strengthen nonprofit governance and management.   More than 200 organizations and groups across the country have been accredited under this program since 1998. 

VDOs & Accelerators: Effective Partnerships

January 17 (2pm ET) – The Issues series kicks off with Rich Lunak of Innovation Works in Pittsburgh and joined by Jim Jen ofAlphaLab, a startup accelerator in Pittsburgh and a project of Innovation Works, exploring the relationship between a VDO and an accelerator and how an accelerator fits in with the overall strategy of a VDO.  Innovation Works is one of the leading organizations in the VDO community, and Mr Lunak is a highly-regarded practitioner in the field.

Financing Your Client Firms: The EB-5 Model

January 24 (2pm ET) – Our Organization series continues with a discussion of the EB-5 program.  Rodrigo Cintra, Center for Innovation’s EB-5 North Dakota/Northwest Minnesota Regional Center Manager, will talk about the EB-5 program and how it has benefited his community and the innovation sector in his region.  Joining him will be Bruce Gjovig, Director of the Center for Innovation in North Dakota, and Susan Geib, formerly of the North Dakota Trade Office and recently joined as a staff member of the EB-5 Regional Center.

The EB-5 Immigrant Investor Program is run by the US Citizenship and Immigration Services to encourage foreign investment in US companies and communities.  Individuals who invest in a new commercial enterprise, with job creation requirements, will qualify for an EB-5 visa to immigrate and work in the United States.

Updated by Benjamin Au, RIAN Assistant Director: January 3, 2012

VDO Community-building
How Can Startup America Partnership Help Your Client Companies?

The Startup America Partnership provides a series of resources and tools which could be beneficial to your organization and your client companies as you help to grow these young ventures into productive and marketable businesses.  Whatever stage your client company is in, Startup America offers a range of resources to help you begin or grow a venture.  This includes offers from Startup America partners and connectivity to other entrepreneurs and members of the Startup America partnership.

Startup America is also launching the Master Challenge, a national competition for members of the innovation and entrepreneur community who greatly influence this venture-builder network.

Submitted by Benjamin Au, RIAN Assistant Director: January 3, 2012

Competitions
Winners Announced for SBA's "App for Entrepreneurs Challenge"

SBA has announced the winners the Apps for Entrepreneurs Challenge.  This was a competition for designers and programmers to build a new app for use by small businesses and entrepreneurs to help with finding loans, venture capital, and access to federal databases.

Seven winners split the $20,000 in prize money.  First place went to an app called SBA Gems, for finding loans and grant permits.  A full summary of its functions and those of the three second place and three third place apps is available on the App for Entrepreneurs website.

Submitted by Benjamin Au, RIAN Assistant Director: December 26, 2011

Reports
Regional Economic and Manufacturing Strengths Measured

Several organizations have released indexes and rankings for measuring various economic and manufacturing strengths.

The Milken Institute, a think tank working to address social and economic challenges, has released its 2011 Best-Performing Cities Index.  This ranks US metropolitan areas based on the creation and retention of jobs and sustaining economic growth.  This includes jobs, wages, salaries, and technological growth.  Nearly 400 cities are assessed, broken into large population cities, of more than 200,000, and small population cities, with less than 200,000.

San Antonio, Texas was ranked as the best performing city.  Overall, Texas as a state performed well, placing four large metro areas in the top ten.  Correspondingly, the top ranked city for Milken’s smallest metro areas list was Logan, Utah.  A complete tally for both lists is available online.

Praxis Strategy Group has measured the 51 largest regions in the country to construct a ranking of the growth of what they are calling the “heavy metal” sector.  This includes machinery and farm equipment, airplanes, cars, and various metal and machine shops.  Overall 148 industries were measured in 10-, 5-, 2-, and 1-year time frames.

Only four regions had net job growth in these heavy manufacturing areas over the past ten years.  Houston, due to its port and involvement in the energy sector, ranked number one.  A summary of the report can be found here.

Finally, Fourth Economy has released its Fourth Economy Community Index, which will take county-level data in five factors – investment, talent, sustainability, place, and diversity – to provide a gauge for planners and policy-makers to understand their community’s economic capacity and ability to attract and maintain investment.

Fourth Economy will release its Large-, Small-, and Micro-sized categories next year, but has released its Mid-sized category, with Fayette County, Kentucky topping the list.

Submitted by Benjamin Au, RIAN Assistant Director: December 19, 2011

Federation Funding
SBIR Reauthorization

SBIR, Small Business Innovation Research, has been reauthorized through September of 2017. This reauthorization includes STTR, Small Business Technology Transfer, and the rebranded Commercialization Readiness Program (CRP) formerly the Commercialization Pilot Program. 

While a full summary of the changes to SBIR is forthcoming, some details include an increase in the research budget that each participating agency must allocate from 2.5 percent to 3.2 percent; a corresponding increase in the STTR program from 0.3 percent to 0.45 percent; the inclusion of language to use a portion (3 percent) of funds for outreach to small businesses owned by socially and economically disadvantage populations and women; and allows up to 25 percent of awards from National Institutes of Health, National Science Foundation, and Department of Energy, and 15 percent from other participating agencies, for venture capital majority ownership.

The long-awaited reauthorization comes through the National Defense Authorization Act of 2012.  Since its creation in 1982, SBIR has been one of the more successful federal programs to stimulate innovation and technology commercialization. The relevant pages from the legislation can be found here.

Submitted by Benjamin Au, RIAN Assistant Director: December 16, 2011

Reports
Report Cites Failure to Measure For Many State Development Programs

One of the dilemmas of economic development has been how to measure, and report, the impact or the results from the work.  This is particularly true when states, localities, and municipalities provide financial incentives in the way of corporate tax credits, grants, facilities, and other economic development subsidies.

Good Jobs First has released a report, “Money for Something: Job Creation and Job Quality Standards in State Economic Development Subsidy Programs,” which rates the performance standards and job quality requirements of more than 230 subsidies in all 50 states and D.C.  Good Jobs First is a policy resource center promoting accountability in economic development.

Rated on a scale of 0-100, no state scored higher than 82.  Overall, the average score across the country was just under 40.  The best performing state was Nevada, followed by North Carolina, Vermont, Iowa, and Maryland.  D.C. performed the worst, with Alaska, Wyoming, Oregon, and Washington also placing near the bottom.

Some of the key findings include 56 percent of programs include job creation, retention, or training as a performance requirement; and 41 percent include a wage requirement, and those requirements have a wide range.

The report recommends that job creation, retention, or training requirements should be included in economic development subsidies, and that a wage standard for these jobs be similarly attached.

RIAN also advocates for improved measurement of economic development programs.  On our Metrics that Matter page, you can find RIAN’s argument for four key metrics, and examples of organizations around the country already employing these standards.

Submitted by Benjamin Au, RIAN Assistant Director: December 16, 2011

Federal Funding
White House Announces $1 billion Early Stage Innovation Fund

On December 8, the Obama Administration announced a $1 billion Early State Innovation Fund, to be administered by the Small Business Administration.  This fund, originally announced as part of Startup America, will provide matching capital to Small Business Investment Companies (SBIC) and target early-stage small businesses seeking private capital.

The Early State Innovation Fund is intended to leverage the SBIC program to allow private investment funds to put capital into small businesses.  This fund will be fully implemented in 2012.

A full press release from the White House is available here.

Submitted by Benjamin Au, RIAN Assistant Director: December 9, 2011

Federal Funding
Bi-Partisan Startup Act Introduced in the Senate

Senators Jerry Moran (R-KS) and Mark Warner (D-VA) introduced on December 8 legislation designed to create and grow new businesses.

Highlights of the bill include

• a rigorous cost-benefit analysis of all proposed major regulations, and requiring federal agencies to examine the purpose of possible additional rules and to examine alternatives to these rules;
• makes permanent the 100 percent exception on capital gains tax for investments, less than $50m, held for five years in “qualified small businesses;”
• the creation of an income tax credit for startup small businesses – on 100 percent of taxable profit for first year of profit, and 50 percent of taxable profits for two succeeding years;
• charges the General Accounting Office to study the impact of Sarbanes-Oxley Reform;
• support the acceleration and improvement of the commercialization of university faculty research, and create a committee to advise the Secretary of Commerce on this program;
• creates visas for up to 50,000 foreign students who receive a masters or Ph.D. in STEM from an American university; and
• creates visas for up to 75,000 immigrant entrepreneurs who hold an H-1B visa or completed graduate work in STEM field and who, in the subsequent year from the visa issuance, registers at least one new business which employs at least two FTEs and invests or raises at least $100,000.

A PDF summary of the bill can be found here.

Submitted by Benjamin Au, RIAN Assistant Director: December 9, 2011

Federal Funding
General Accountability Office Audits the State Small Business Credit Initiative

In 2010, Congress enacted the Small Business Jobs Act to aid small businesses in acquiring capital and thus hire new employees. The Act established a $1.5B State Small Business Credit Initiative (SSBCI) within the Department of Treasury to aid programs that support lending to small businesses and manufacturers. States participating in the program are expected to leverage private financing at least ten times the amount of the SSBCI funding.

The General Accountability Office has released its annual audit of the program. A full report can be found on the GAO website, as well as a PDF of the highlights, but a brief account includes 153 lending programs nationally are using SSBCI funds, including 69 new programs directly attributable to the SSBCI program. Applicants to the program expect to raise up to $18.7B in private financing.   

Procedures for the program continued to evolve throughout the process, although the GAO also notes application guidance and review procedures weren’t finalized under several months after Treasury began approving applications for SSBCI funds. Similarly, Treasury did not finalize funding installment disbursement procedures until November of this year. The GAO has identified key attributes of successful performance measures, and recommends that in order to improve the implementation and oversight of the SSBCI program, the SSBCI Program Manager consider these measures as the program continues.

Submitted by Benjamin Au, RIAN Assistant Director: December 8, 2011

Successes
Congratulations to Beth Sirull, Pacific Community Ventures!  

Beth Sirull, Executive Director of Pacific Community Ventures, has been named to Forbes’ Impact 30.  The Impact 30 represents thirty top social entrepreneurs who have been identified as leading innovation across various sectors, including health, education, and finance.  Social entrepreneurs use business to solve social issues. 

Forbes named Sirull on their list as the head of PCV, which has achieved impressive employment results in their community since their founding.  More on PCV can be found here.

Submitted by Benjamin Au, RIAN Assistant Director: December 5, 2011

EDA Budget
More Detail Emerges on EDA FY12 Budget  

The conference report accompanying the Economic Development Administration's appropriations for FY 2012 is out.  We mentioned briefly the overall budget for the agency in the previous post. This time we will look into more detail regarding the $220 million remaining for the PWEDA grants and loans EDA awards across the country through competitive cycles and solicitations. That's $26 million less than was available last year to support regional economic development during what is expected to be an extended jobless recovery based on the trend of all recessions since before EDA was created in 1965.

EDA had requested a significant realignment of the PWEDA funds to ensure each dollar has the greatest impact for growing regional economies through innovation and strategic investment. Congress decided, in many respects, to hold the status quo on the 1965 version of the agency for another year. At $111.6 million, Public Works receives more than half of the total pot of $220 million. Planning received $29 milllion, down only slightly from past year's total. The Technical Assistance line item, which includes the University Centers program, gets $12 million, and Research and Evaluation remains at $1.5 million. Trade Adjustment Assistance and Economic Adjustment Assistance come in at  $15.8 million and $50.1 million, respectively. 

Congress goes further in the conference report and delineates funding levels for three specific activities within the Economic Adjustment Assistance account:

• $5 million for loan guarantees for small- and medium-sized manufacturers for the use or production of innovative technologies. The program is outlined in the America COMPETES Act (Sec 26).
• $5 million for a Regional Innovation Program (Sec 27 of COMPETES), that may include regional cluster matching grants, science/research park loan guarantees and grants, and a regional innovation research program. 
• $1 million to support "innovative, energy efficient grant programs for small businesses.

We'll pass along any news on how EDA will be implementing these requirements as it becomes available.

Submitted by Mark Skinner, RIAN Director: Nov 21, 2011

Legislation
2012 Budget Set for Key Federal Agencies Supporting Regional Innovation 

Most of the news on Congress's work yesterday may be covering the 2nd Continuing Resolution keeping government running until Dec 16. True, but the measure also included the final budget numbers for several agencies of importance to Venture Development Organizations, keeping them in business until Sep 30, 2012. More importantly, it allows them to start processing new grants, loans and solicitations again.

Coined a "mini-bus" to distinguish this bill from the inevitable larger omnibus appropriations legislation dealing with nine remaining budget bills, what passed yesterday included FY2012 appropriations for Agriculture, Commerce/Justice/Science, and Transportation/Housing and Urban Development.  Here are selected agency and program totals from House Report 112-284:

• Economic Development Administration (Commerce): $257 Million ($26 million less than FY11) and an additional $200 million for recovery from natural disasters over the past year.
• HUD Community Block Grant Program: $3.3 billion ($192.4 million less). Sustainable Communities funding is eliminated. 
• International Trade Administration (Commerce): $465 million ($15 million increase) includes funding for new high-priority National Export Initiatives.
• NASA: $17.8 billion ($648 million less than last year), including $5.1 billion for Science programs ($155 million increase)
• National Science Foundation: $7 billion ($173 million more)
• NIST Manufacturing Extension Partnership: level funding of $128 million.
• Rural Economic Development (USDA): $2.25 billion ($180 million less), includes $75 million for Rural Business & Industry Loan Guarantees, which will support $822 million in loan authority.
• US Patent & Trademark Office: Full request of $2.7 million (28% higher than last year), and allows USPTO to keep additional fees collected, increasing the speed at which the application backlog can be erased.

Submitted by Mark Skinner, RIAN Director: Nov 18, 2011

Would this be helpful to companies in your state?
Twelve Years of New Jersey Tech Firms Selling Unused Tax Credits

Most startup technology companies don't have a lot of profit to report on their tax forms in the early years. They also aren't in a position to take full advantage of R&D tax credits offered by states on top of the federal credit because they are working with net operating losses during their formative stages. New Jersey has a program started in 1999 that gives certified companies the ability to sell 80 percent of the value of their net operating losses and unused R&D tax credits to unrelated, profitable businesses. The New Jersey Economic Development Administration, which oversees the Technology Business Tax Certificate Transfer Program, just announced the 75 eligible companies that will share $60M in fresh cash this year. That works out to an average of $800,000 per firm. Nice, eh? 

New Tools
North Dakota Expands Angel Tax Credits

"Last week the North Dakota Legislature passed HB 1057 on angel tax credits, updating our pooled angel fund legislation. The big additions were making all pass-through entities eligible for the angel tax credits, and adding transferability for out-of-state investors or in-state investors who do not have a tax liability.

"Key provisions of the Pooled Angel Capital Bill include

• 45% Investment tax credit for investors in pooled angel funds
• Allows for pass-through entities (Sub-S, LLP, LLC, etc.) to earn angel credits and pass them through to the owner/members
• Creates an aggregate taxpayer lifetime limit of angel credits to $150,000. (note $100,000 limit on transferability)
• Carry forward of unused tax credits increased to 7 years
• And many more…"

See: http://www.legis.nd.gov/assembly/62-2011/documents/11-0255-06000.pdf.

Submitted by Bruce Gjovig, CEO of the UND Center for Innovation Foundation: May 2, 2011

Federal Funding
$33 Million Regional Cluster Funding Competition - proposals due July 7

The May 20 online issue of the Federal Register including the full description of the new Jobs and Innovation Accelerator Challenge. The program sounds well-tailored for VDOs and their partner organizations:
"Funds … can be used to support and accelerate a range of measurable outcomes, including innovation, commercialization, business formation and expansion, development of a skilled workforce, job creation, exports, sustainable economic development and global competitiveness in approximately 20 industry clusters that exhibit high-growth development potential."

Proposals are due July 7. Selections for awards will be made before the end of September.

A webcast overview of the program with Q&A will be held ion June 7. We strongly recommend participating in the webcast if you are interested in submitting a proposal in this new funding competition. Advance registration is required.

Click Here for more information.

Submitted by Mark Skinner, RIAN Director: May 2, 2011

VDO Impacts
Ben Franklin Technology Partners of NEP Helped Create 621 Jobs in 2010

Pennsylvania's four Ben Franklin Technology Partners have one of the most rigorous impact reporting systems in the country. Each year “the Bens” check in with their clients to see how assistance received may have directly attributed to a number of key metrics.

The BTFP of Northeastern Pennsylvania, headquartered in Bethlehem, serves 21 counties and, in addition to its Bethlehem facility, operates Ben Franklin TechVentures®, a technology business incubator/post-incubator facility on Lehigh University’s Mountaintop Campus.

Its latest impact data, just released, shows what sustained support can do for regional economic growth centered on innovation. Check out these highlights for 2010 and since the program’s inception in 1983:

• In 2010, clients created 621 new jobs. Since 1983 the cumulative results total 14,922 new jobs in the region.
• Twelve new companies were started in 2010, bringing the cumulative total to 420 since 1983.
• In 2010, clients developed 69 new products and processes, leading to the cumulative total to surpass a major milestone at 1,017.

Nice to have the cumulative figures to show a VDO’s impact never stops growing. Congrats to the BFTP - NEP staff for the job well done.

Submitted by Mark Skinner, RIAN Director: May 2, 2011

Find the Innovation Resources in Your Area

• 

  Know Your Region

• 

  Determining Regional Strengths

• 

  A Guidebook For Conducting Regional Innovation Assessments

• 

  EDA Regional Innovation Asset Toolkit

• 

  VDO Characteristics
  Assessment Tool

• 

  Resource Guide For Technology-Based Economic Development

• 

  Is Your Organization Fit for Funding?

• 

  The Strategic Role of Accelerators in Regional Innovation

• 

  Financing Your Client Firms: The EB-5 Model

• 

  VDO Profile Tool

• 

  Upload Success Stories

VDOs

• Getting Started
• Basics
• Characteristics
• Profiles
• Funding
• Map
• News

Success/Impact

• Success Stories
• Metrics that Matter
• Benchmarking

Regional Innovation Acceleration Network

• About
• Sponsors
• Privacy Policy
• Contact
• Connect With Us

Funded by the U.S. Economic Development Administration (EDA).