092410 Ann Arbor SPARK Local Community Update

1. Ann Arbor SPARK
Update
September 24, 2010
©2006 Ann Arbor SPARK

2. About Ann Arbor SPARK
©2006 Ann Arbor SPARK

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. 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. 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. 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. 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. 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. 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. New Programs and Initiatives
©2006 Ann Arbor SPARK

11. AnnArborUSA.org
©2006 Ann Arbor SPARK

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. 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. 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. MichAgain Campaign
Creates an effective branding
message to communicate a
consistent understanding of the
region’s value-proposition
©2006 Ann Arbor SPARK

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. 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. Best Practices Comparisons
Benchmarking
©2006 Ann Arbor SPARK

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. 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. 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. Interesting Presentation but…
…does this really work?
©2006 Ann Arbor SPARK

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. 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. 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. 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. Questions:
Michael@AnnArborUSA.org
Twitter: @MichaelAFinney
www.AnnArborUSA.org
©2006 Ann Arbor SPARK