092410 Ann Arbor SPARK Local Community Update


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092410 Ann Arbor SPARK Local Community Update

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092410 Ann Arbor SPARK Local Community Update

  1. 1. Ann Arbor SPARK Update September 24, 2010 ©2006 Ann Arbor SPARK
  2. 2. About Ann Arbor SPARK ©2006 Ann Arbor SPARK
  3. 3. Mission Statement • “SPARK” will be the driving force in establishing the Ann Arbor Region as a desired place for business expansion and location...by identifying and meeting the needs of business at every stage, from those that are established to those working to successfully commercialize innovations. ©2006 Ann Arbor SPARK
  4. 4. Organization • Merger of Washtenaw Development Council, Ann Arbor IT Zone and Ann Arbor SPARK Washtenaw Ann Arbor IT Zone Ann Arbor SPARK Development Council Networking and Business Accelerator Retention and Expansion Entrepreneurial Education Services • Public – Private partnership among academia, business, government, and not-for-profit organizations • Governed by a dynamic board of directors • Led by superior caliber employees, consultants, and volunteers • Stakeholders include: universities, businesses, state and local ©2006 Ann Arbor SPARK governments, regional innovation focused membership organizations
  5. 5. Organization Ann Arbor SPARK Innovation (Startups) Existing Business Business Retention and Expansion Attraction Business Acceleration Michigan Innovation Equipment Depot Michigan Pre-seed Fund Micro-loan Fund •Marketing & PR •Grant research assistance SPARK Central •Talent Enhancement Incubator •Entrepreneurial Education SPARK East •Research & Business Info. Incubator ©2006 Ann Arbor SPARK •Incentive Preparation MLSIC Wet lab Incubator
  6. 6. Guiding Principles • High-value, knowledge-intensive, diverse workers • Innovation in products, services, and delivery • Ann Arbor USA (brand entire region) • Proactive versus reactive • “Open Source Economic Development” • Statewide Collaboration/Partnerships ©2006 Ann Arbor SPARK
  7. 7. Open Source Economic Development Economic development should take a page from the playbook of the ever-evolving software industry. Its “open source” philosophy -- the source code that drives development should be open and available to all-- is a model that can propel a region’s success in growing, retaining, and attracting business. ©2006 Ann Arbor SPARK
  8. 8. Open Source Partners • Ann Arbor Angels  Michigan Economic Development Corporation • Ann Arbor Area CVB  Michigan Manufacturing Technology Center • Ann Arbor Board of Realtors  Michigan SmartZones • Ann Arbor Business Review  Michigan Venture Capital Association • Ann Arbor/Ypsilanti Chamber • Washtenaw County, Michigan Works!/ETCS • Ann Arbor Community Foundation • Ann Arbor.com  New Economy Initiative for SE Michigan • Ann Arbor-Ypsilanti, LDFA  NextEnergy  Automation Alley  OU Incubator  Business Accelerator Network for SE  Small Business & Technology Development Michigan Centers  Business Leaders for Michigan  Southwest Michigan First • County and Local Units of Government  TechTown  Detroit Regional Economic Partnership  Traverse City Chamber of Commerce • Eastern Michigan University  Enterprise Group of Jackson • University of Michigan  Genesee/Flint Regional Partnership • Washtenaw Community College • Home Builders Association of Washtenaw  West Michigan Science & Technology Initiative County • Washtenaw County United Way  MichBio  Wayne County EDGE  ©2006 Ann Arbor SPARK Michigan Department of Labor and Economic • Ypsilanti CVB Growth
  9. 9. Targeted Industry Sectors Focus on a finite set of emerging technologies or industry sectors • Advanced Automotive Manufacturing and Materials • Aerospace Engineering and Manufacturing • Cleantech • Homeland Security and Defense • IT / Software • Life Sciences • Optics / Measurement • Printing and Publishing ©2006 Ann Arbor SPARK
  10. 10. New Programs and Initiatives ©2006 Ann Arbor SPARK
  11. 11. AnnArborUSA.org ©2006 Ann Arbor SPARK
  12. 12. Pre-Seed and Microloan Funds Michigan Pre-Seed Capital Fund ($16 million) established to provide access to capital for high-tech start-up companies Michigan Microloan Fund ($1.5 million) established to accelerate company development and to extend the personal investment of entrepreneurs InfoReady™ easily find, gather and filter critical information from grants sources and funding opportunities Eligibility • Competitive edge technology sectors; life sciences, advanced automotive, manufacturing or materials, homeland security and defense, and alternative energy • Michigan-based (or willing to relocate upon award of funds) • Ownership or license to innovative technology • Evidence of follow-on investment or other revenue ©2006 Ann Arbor SPARK • Completed business plan
  13. 13. Regional Incubator Network Regional Incubator Network offers an opportunity to capitalize on the Ann Arbor region’s life science, IT/software, alternative energy, advanced automotive and materials sectors Project Goals • Improve the business climate for competitive-edge technology companies in the Ann Arbor region • Preserve valuable wet laboratory space • Foster new life science, IT/software, alternative energy start-ups • Retain and attract highly skilled talent, creating new high-wage employment opportunities • Provide a competitive advantage to Ann Arbor start-up companies • Provide laboratory and related office space to promising early stage companies ©2006 Ann Arbor SPARK
  14. 14. Business Attraction SPARK business attraction activities • Palo Alto, CA – July 19-28 – 20 business attraction leads – 6 active projects – 200+ university alumni – 10 venture capitalist – Supported by Dr. David Brophy and Heisman Trophy winner Charles Woodson • Austin, TX – November 8-10 – Sponsored by General Electric (GE) – Corporate participants, GE and IBM – Supported by Arbor Networks Founder Farnam Jahanian and David Parsigian (Honigman Miller) – Partners include, U-M, MSU, EMU, WSU, and regional ED organizations • Chicago, IL – Target date December 2010 ©2006 Ann Arbor SPARK • Boston, MA – Target date 1Qtr. 2011
  15. 15. MichAgain Campaign Creates an effective branding message to communicate a consistent understanding of the region’s value-proposition ©2006 Ann Arbor SPARK
  16. 16. BANSEM and NEI partnership • New Economy Initiative for SE Michigan (NEI) awards $3 million grant to support the newly formed Business Accelerator Network for Southeast Michigan (BANSEM) • Comprised of the region’s four key business accelerators– Ann Arbor SPARK, Automation Alley, Macomb-OU INCubator, and TechTown, the BANSEM will work collaboratively to share best practices, host events, and support business development in the region • “An intensified level of collaboration among these outstanding business organizations…sends a powerful message to business leaders across the nation that southeast Michigan is working in a smart, integrated fashion to grow its business community.” – David Egner, CEO Hudson Webber Foundation and Executive Director NEI ©2006 Ann Arbor SPARK • About BANSEM: Collectively, BANSEM have invested in 339 start-up companies, invested more than $18 million, created more than 1,000 jobs and secured more than $101.2 million in additional capital for the companies
  17. 17. accelerate >> MICHIGAN SM Accelerate Michigan Innovation Competition • First major initiative of the BANSEM • Lead sponsors include: NEI, Business Leaders for Michigan and the University Research Corridor (U-M, MSU & WSU) • An international business plan competition which highlights Michigan as a robust and vibrant venue for innovation and business opportunity • Fuels innovation-based business growth by uncovering the best and brightest new business concepts, exposing those opportunities to potential investment capital and fostering their growth within Michigan • Targets mid-to-late-stage start-ups with potential to generate an immediate impact on Michigan’s economy, as well as student concepts with longer-term business viability • More than $1 million in cash winnings, the Accelerate Michigan Innovation Competition is the world’s largest business competition ©2006 Ann Arbor SPARK • www.accelerateMI.org
  18. 18. Best Practices Comparisons Benchmarking ©2006 Ann Arbor SPARK
  19. 19. Benchmarking Ann Arbor SPARK continued commitment to excellence and innovation • Past visits have included: – Chapel Hill, NC – Cleveland Plus (met with CVB, Greater Cleveland Partnership) – Kansas City, MO – Evanston, IL – Grand Rapids, MI – Windsor, ON • Most recent visit was to Cleveland, OH – Team NEO – JumpStart ©2006 Ann Arbor SPARK
  20. 20. 2009 Benchmarking Cleveland Comparison : Annual Jobs Investment Population Organization Projects Operating Committed Committed (2000 census) Budget 2009 SPARK $37,580,000 7 1,522 $450,000 322,770 Attraction *Payroll=$46M 2009 Team NEO 9 900 Payroll=$30M $3,000,000 2,250,000 Attraction BA, Pre-Seed & Microloan 468 125 $8,930,000 $1,300,000 322,770 Fund (direct) (2006-2009) JumpStart 502 40 $14,370,000 $7,000,000 2,250,000 (2004-2009) (direct and indirect) ©2006 Ann Arbor SPARK *Estimated: 1522 jobs x $30,000
  21. 21. 2009 Benchmarking Grand Rapids Comparison: Jobs Population Organization Projects Investment New/Retained (2000 census) SPARK 2,118 Retention/Attraction 34 $151M 322,770 450 2009 The Right Place 3,643 13 $208M 1,254,661 2009 555 ©2006 Ann Arbor SPARK
  22. 22. Interesting Presentation but… …does this really work? ©2006 Ann Arbor SPARK
  23. 23. Entrepreneurial Success Story Compendia Biosciences • Formed in 2005 • Technologies developed by the University of Michigan • Bioinformatics-molecular oncology tools, data, and analysis software • Attended Entrepreneurs Boot Camp 2005 • SPARK provided $49,000 consulting services; business development, marketing • SPARK Talent team helped recruit CEO and technology manager • Revenue 2009 ~$X million • Received $3.7 million in grants and $3.6 million equity investments including $250,000 from the MI Pre-Seed Fund • Current employment - 26 • Office located in downtown Ann Arbor (SmartZone) ©2006 Ann Arbor SPARK • Won 2007 “Innovation Company of Year” award from Michigan Business Review
  24. 24. Entrepreneurial Ecosystem • Business Accelerator Services, designed to shorten the time required to reach commercialization • Talent Enhancement, focused on retaining high-value talent within Michigan • Entrepreneurial Education, boot camp, shifting gears, mingle & match, cantillon • SPARK Regional Incubator Network, provides laboratory and related office space to promising early stage companies • Michigan Innovation Equipment Depot, provides “high value” equipment to life science start-up companies throughout Michigan • Microloan Funds, supports innovative, high-growth start-up companies throughout Washtenaw County as they near commercial viability • Michigan Pre-seed Capital Fund, established to provide access to capital for high-tech start-up companies • accelerate >> MICHIGANSM Innovation Competition, $1 million cash winnings available to businesses and students ©2006 Ann Arbor SPARK • Business Critical Introductions, first customer connections
  25. 25. Selected Project Successes  Advanced Photonix, Aernnova Engineering, Arbor Networks, Barracuda Networks, CAS-MI Laboratories, Competing Values, Con-Way Freight, Danotek Motion, Esperion Therapeutics, Genomatix, Google, Handy Lab, Health Media, Lycera, MyBuys, NetEnrich Networks, Northern United Brewing, ProQuest, Sakti3, SRI Technology Group, Systems in Motion, Terumo Cardiovascular, Thomson Reuters, Toyota Technical Center, Velesco ©2006 Ann Arbor SPARK Pharmaceutical Services, and Xoran Technologies
  26. 26. Washtenaw County ROI 2006 – present • 166 project successes - $1.2 billion new investment commitments • 10,329 new jobs commitments and 6,806 jobs retained • Assisted 291 innovation start-ups • 47 Pre-seed investments, $10.2 million, 271 jobs • 44 Microloan investments, $1.7 million, 116 jobs • 39 tenants in 3 regional incubators (90% occupancy) • Leveraged community investments to $35 million – through Foundation, Federal and State grants, and MIED equipment donations • Assisted 1100+ companies with 3500+ job postings – 70 new job postings monthly ©2006 Ann Arbor SPARK • Assisting ~5200 job seekers with employment searches
  27. 27. Questions: Michael@AnnArborUSA.org Twitter: @MichaelAFinney www.AnnArborUSA.org ©2006 Ann Arbor SPARK