Ithaca Entreprenuerial Hub Feasibility Analysis

TOMPKINS COUNTY AREA DEVELOPMENT ENTREPRENEURIAL HUB FEASIBILITY ANALYSIS

Nov 13 2012

Emile Chin-Dickey // Josh Robbins

2

Who Are We?

Purpose of Study

Research Method

Analysis & Findings

Recommendations

Framework

• Co-founder of Calle• Raised $3M in VC

• 2nd-year MBA student at Johnson

• Roy H. Park Fellow

E-mail: [email protected]

• Co-founder of ZeroEnergy Design and freegreen.com

• 2nd-year MBA student at Johnson

• Roy H. Park Fellow

E-mail: [email protected]

Josh Emile

As Entrepreneurs, we’re interested in how entrepreneurial communities form

3

The purpose of this study is to understand the feasibility of a community-based entrepreneurial hub in Ithaca

Ithaca is home to an entrepreneurial community featuring several universities, entrepreneurially minded students, and a number of start-ups

Situation

Entrepreneurs are drawn to other cities (outside of Ithaca, NY) in pursuit of resources, money, and markets

Complication

What characteristics are necessary to develop and sustain an entrepreneurial hub in Ithaca, NY?

Key Question

Purpose of Study

Research Method

Analysis & Findings

Recommendations

Framework

Data gathered for the study was conducted following a three-step process of secondary and primary research

4

Interviews Focus Groups Survey

What did we do?• 10 accelerators and incubators, • 10 Ithaca entrepreneurs

What did it reveal?The business and operating model of accelerators and incubators, the motivations for joining them, and major issues confronting operators

Interviews What did we do?Two focus groups: 1. 5-person group2. 20-person group

What did it reveal?Broader attitudes concerning the Ithaca entrepreneurship community, resources, perceived strengths and weaknesses

Focus Groups

What did we do?Two surveys: 1.Local students and

entrepreneurs (N=57)2.Incubator/Accelerator

alumni (N=16)

What did it reveal?Quantified perceptions and attitudes of entrepreneurship in Ithaca and actual benefits of participating in an accelerator

Quantitative Survey

Purpose of Study

Research Method

Analysis & Findings

Recommendations

Framework

Four focus areas serve as the basis for our analysis and final recommendation

5

Operating Model

• What model best suits Ithaca?

• How will it accomplish long-term sustainability?

Industry Focus

• What unique assets exist?

• What industry should be the focus?

Programming

• What training is needed?

• By what method will programming occur?

2 3 4

Community

• Who are the key entrepreneur groups?• How will the groups interact?

1

Purpose of Study

Research Method

Analysis & Findings

Recommendations

Framework

Community: Ithaca’s silos of entrepreneurship activity do not interact, limiting benefits to members

6

Pros of Ithaca

• Quality of Life• Low cost of living• Cutting-edge science-based

research

Silos do not pool collective resources to benefit individual ventures

Ithaca Entrepreneurship Community

•Talent•Networks•Technical Research•Assets

•Talent•Networks

•Talent•Networks•Experience

Cornell Ithaca CollegeIthaca

Entrepreneurs

• Lack of “Tight community”• Lack of connection between

student & professional groups• No single source of local

entrepreneur info• Lack channels for linking up

Cons of Ithaca

Purpose of Study

Research Method

Analysis & Findings

Recommendations

Framework

Industry Focus: Ithaca’s entrepreneurial strengths lie in software and science-based technology companies

7

Unique Assets

Talent Interest (students &

entrepreneurs)• Software• Physical and Life

Sciences (GreenTech, NanoTech, BioTech)

Physical & Life Science Companies• Kionix• Zetroz• Rheonix• Advion

Unique Centers

• Center for Nanoscale Systems

• Nanobiotechnology Center

• Bioscience Incubator

• Cornell World Research Ranking

Purpose of Study

Research Method

Analysis & Findings

Recommendations

Framework

Operating Model: Three operating model options exist as potential entrepreneurial community hubs

8

Shared Work Space

Incubators (Real Estate)

Accelerators (Investor)

Business Model

•Charge start-ups rent/fee

•Charge start-ups rent/fee

• Investment (VC or Angel)

Equity Stake

•None •None •Equity stake (~5-6%)

Time frame • Flexible, low commitment

•6+ months •3-6 months

Programming

•Some education •Some education •Mentoring w/deadline

Investors

Real Estate

Low

H

igh

Mento

rship

Purpose of Study

Research Method

Analysis & Findings

Recommendations

Framework

Operating Model: The New York Region (Ithaca’s competitive landscape) has representation within each model type

9

InvestorsReal EstateLow

H

igh

Mento

rship

Requires constant

investment into tenants (typically VC

or angel backed)

eLab

Purpose of Study

Research Method

Analysis & Findings

Recommendations

Framework

Operating Model: Physical work space is a requirement for an entrepreneurial hub

10

Meeting with customers

Conference calls

Interactions w/entrepreneurs

Brainstorming

Meeting with mentors

0% 5% 10% 15% 20% 25% 30% 35%

Estimated use of physical space (% of time)

Physical space is absolutely necessary

80% 65% Location should be downtown

Time used for interpersonal activities

46%

Purpose of Study

Research Method

Analysis & Findings

Recommendations

Framework

Operating Model: The real estate model is not self-sustaining and would require additional thru year 5

11

5K Sq. Foot Building 20K Sq. Foot Building

Key Assumptio

ns• Rent Rate

Qty. of Tenants Needed

12 50Estimated 5 Yr. Cash Shortfall

$68,000<$195,000>

5K Sq. Foot building cannot break even due to space constraints; however, a 20K Sq. Foot building requires more

tenants than are likely to demand spacePurpose of

StudyResearch Method

Analysis & Findings

Recommendations

Framework

• Building Cost

• Payroll

• Sq. Ft. per tenant

• Op. Capacity

$75K per YearFREEFULL

300 sq. ft.$13; 2% annual

increase

$135K per YearFREE

300 sq. ft.$13; 2% annual

increase

FULL

Operating Model: Physical work space should have additional services/benefits beyond being a place to work

12

Incubators in-state

Incubators out-of-state

Accelerators in-state

Accelerators out-of-state

Shared work-space in-state

Shared work-space out-of-state

0 1 2 3 4 5 6 7 8 9

Programs considered & joined

Joined Considered

Of those who considered programs, ALL chose incubators/accelerators because of perceived additional

benefits/servicesPurpose of

StudyResearch Method

Analysis & Findings

Recommendations

Framework

Programming: Entrepreneurs are most interested in developing capital, mentorship, networks, professional services, and talent

13

Purpose of Study

Research Method

Analysis & Findings

Recommendations

Framework

Cohesiveness of community

Access to entrepreneurial info

Demo day

Access to tech or ideas

Entrepreneurial eco-system

Office space

Availability of talent

Influential people

Access to capital

0 5 10 15 20 25 30 35 40

Most important aspects of a business incubator/ac-celerator

Number of Respondents (multi-answer)

Purpose of Study

Research Method

Analysis & Findings

Recommendations

Framework

Access to capital

Accountability

Influential people


Programming

Access to professional services

Network of entrepreneurs

Access to tech/ideas

1 2 3 4 5 6 7

Ithaca Strengths & Weaknesses

Experienced Student

Programming: Opportunity exists to improve on “Top 5” aspects in Ithaca

14

Weakness Strength

Recommendations 1of 2: Bridge interaction between entrepreneurial groups and leverage Ithaca’s expertise

15

• Emphasize software and physical sciences

• Build interest groups around industry focuses

• Organize investor demo day around industry cluster

• Form entrepreneurship board with representatives from each silo

• Formalize communication channels across each silo

Recommendations Risks Mitigations• Seed board with

influential members from each community

• Emphasize growing/tapping diverse networks

• Publicize successful cross-silo connections / referrals

• Don’t devote resources towards competing against NYC or SV hubs

• Set, announce, and promote a deadline for the demo day

• Students won’t attend local events and vice-versa

• Skepticism in value-add of interacting with other groups

• Start-ups leave Ithaca for NYC or Silicon Valley

• Lack critical mass of companies seeking capital

Com

mu

nit

yIn

du

str

y

1

2

Purpose of Study

Research Method

Analysis & Findings

Recommendations

Framework

Recommendations 2 of 2: Identify funding for building and develop programming around entrepreneurial competitions

16

• Build network of 30+ mentors

• Develop programming around demo days & entrepreneur competitions with cash prizes

• Identify source(s) of gov’t funding for initial purchase

• Identify financing to for operating cash shortfall

• Start with real estate model

Recommendations Risks Mitigations• Supplemental

financing should cover 5+ years

• Offer incentives to anchor tenants

• Actively promote space in surrounding cities

• Expand mentor network beyond residents in Ithaca

• Develop selection criteria to ensure teams surpass desired hurdle

• Inability to finance cash short fall

• Inability to acquire necessary qty. of tenants

• Lack of mentors with targeted experience

• Teams not achieving success as measured by cash receipts

Op

Mod

el

Pro

gra

mm

ing

3

4

Purpose of Study

Research Method

Analysis & Findings

Recommendations

Framework

Fully developing the four focus areas is essential to create a sustainable entrepreneurial hub in Ithaca

17

Operating Model

• Begin with real estate model in downtown locale

Industry Focus

• Build on existing Nanotech, CleanTech, and Biotech assets

Programming

• Utilize mentors and progression training with deadlines

Purpose of Study

Research Method

Analysis & Findings

Recommendation

Framework

Community

• Formal ties across silos via Entrepreneurship Board

18

Detailed Executive SummaryDetailed Study MethodologyFinancial Model 1: 5K Square Foot BuildingFinancial Model 2: 20K Square Foot BuildingSurvey 1: Student & Experienced EntrepreneursSurvey 2: Incubator/Accelerator Alum

Appendix

Detailed Executive Summary

Multiple universities

and entrepreneurial efforts exist in Tompkins County, NYEntrepreneurs

are drawn to other cities in

pursuit of resources, money, and

markets

• Cornell University and Ithaca College have several business plan competitions, entrepreneurial activities, and clubs encouraging students to start businesses

• These institutions perform cutting edge technical research that yield discoveries with commercial potential

• An active community of entrepreneurs start companies in Ithaca and surrounding cities

• The research facilities and relatively low cost of living are a catalyst for entrepreneurial endeavors

• Other cities offer more resources, especially investors, which entice entrepreneurs to leave Ithaca

• The technology developed at universities has a longer development cycle, which requires specific types of funding to grow

• Ithaca has a small-city culture centered around emphasizing being local, being green, & being natural

What characteristics are necessary to develop and sustain an entrepreneurial hub in Tompkins County, NY?

4 key areas must be

developed for an

entrepreneurial hub to be successful

• Community: Formalize communication and links among distinct groups• Industry Focus: Software and physical sciences• Operating Model: Begin with real estate that can eventually add investors• Programming: Mentors coach towards entrepreneurial competitions

providing cash prizes

19

Detailed Study methodology

20

Operating Model Research: This research covered business models associated with entrepreneurial hubs (shared workspaces, accelerators, incubators) in other cities and towns. Facilities were selected to as closely mimic Ithaca characteristics: small-medium sized towns featuring large research academic institutions. With this data, we developed hypotheses about facility efficacy to test perceptions towards such facilities in Ithaca.

Operating Model Interviews Techstars Boulder (Colorado) Madison Enterprise Center (Wisconsin) Betaspring (Rhode Island) BoomStartUp (Utah) Business Enterprise Center (Oregon) StartFast Venture (New York) Syracuse Tech Garden (New York Business Incubator (Colorado) Brandery (Ohio) Rock Health Accelerator (San

Francisco/Boston)

Research Goal: This study researched and recommended a model for a tech business incubator facility for Ithaca to implement. The aim is to attract and retain talent within Ithaca’s entrepreneurial ecosystem.

Data Collection Methods: This study included several primary research methods: one-on-one interviews, focus group interviews, and survey data.

These methods were used to varying degrees as described below:

Detailed Study methodology (continued)

21

Local Entrepreneur & Student Research: This research covered entrepreneurs that had and students that plan to start/ed companies in Ithaca and was geared towards collecting attitudes and perspectives from these groups

Focus Group A: Elisa Miller-Out, Singlebrook Judith Lemke, CareFusion Morgan Lemke, TraceIT Adeesha Ekanayake, TraceIT Dounan Hu IT, Tech Consultant Oliver Zanen, Synceros Greg Kops, thinktopography Danielle Klock, thinktopography Justin Lee RevoPT Mike Wehrhahn, RevoPT Fargo Balliett, chillmonkey.com Armando Diaz chillmonkey.com Bob Parks educational dictionary

software Nathan Reimer Reimer Consulting Sanjay Behuria, Peter Weisz Engineering Matthew Clark, Gorges

Don Ellis, Gorges Focus Group B: Alex Fisher, Glycobia Charles Hamilton, Challenge Alex Hagen, Weaver Wind Energy Samantha Abrams, Emmy’s Organics

Interviews Eric Eisenhut Brad Treat, Mezmeriz Tom Schryver, EiR Cornell Zach Shulman, CVF Jon Greene, Widetronix David Bloom, Ordr.in

Survey1. Elisa Miller-Out's list-serve2. Ithaca Entrepreneurs list maintained by

Brad Treat3. EVCC Facebook group4. Cornell Entrepreneurship Listserve5. Cornell Popshop Listserve6. Nationwide incubators/accelerators

Scenario 1: 5K Sq. Feet Building Model

22

REAL ESTATE MODEL - Building Size 5K Sq FeetPro Forma Profit and Loss Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10Revenues/Donations Rent Income 48,750.00 49,725.00 50,719.50 51,733.89 52,768.57 53,823.94 54,900.42 55,998.43 57,118.39 58,260.76 Donations Sponsorship Government Funding 150,000.00 Net Return from Exit - - - - - - - - - - 150,000.00 48,750.00 49,725.00 50,719.50 51,733.89 52,768.57 53,823.94 54,900.42 55,998.43 57,118.39 58,260.76 Operating Costs Lease/Mortgage Payments - - - - - - - - - - - Payroll/Staffing - 75,000.00 75,000.00 75,000.00 75,000.00 75,000.00 75,000.00 75,000.00 75,000.00 75,000.00 75,000.00 Meals/Entertainment/Events - 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00 Utilities - 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00 Office Supplies - 4,800.00 4,800.00 4,800.00 4,800.00 4,800.00 4,800.00 4,800.00 4,800.00 4,800.00 4,800.00 Accounting/Legal Fees - 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 Depreciation - 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 15,000.00 Founders Stipend - - - - - - - - - - - One-time Set-up Costs* 150,000.00 - - - - - - - - - - 150,000.00 104,800.00 104,800.00 104,800.00 104,800.00 104,800.00 104,800.00 104,800.00 104,800.00 104,800.00 104,800.00 Net Income - (56,050.00) (55,075.00) (54,080.50) (53,066.11) (52,031.43) (50,976.06) (49,899.58) (48,801.57) (47,681.61) (46,539.24) Cumulative Income(Loss) - (56,050.00) (111,125.00) (165,205.50) (218,271.61) (270,303.04) (321,279.10) (371,178.69) (419,980.26) (467,661.86) (514,201.10) Annual Net Cash Surplus(Shortfall) - (41,050.00) (40,075.00) (39,080.50) (38,066.11) (37,031.43) (35,976.06) (34,899.58) (33,801.57) (32,681.61) (31,539.24)

* See Start-up Costs Tab for Details

MetricsAvg # of Tenants - 12 12 12 12 12 12 12 12 12 12 Avg Square Foot Per Team - 300 300 300 300 300 300 300 300 300 300

Scenario 2: 20K Sq. Feet Building Model

23

REAL ESTATE MODEL - Building Size 20K Sq FeetPro Forma Profit and Loss Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10Revenues/Donations Rent Income 195,000.00 198,900.00 202,878.00 206,935.56 211,074.27 215,295.76 219,601.67 223,993.71 228,473.58 233,043.05 Donations Sponsorship Government Funding 600,000.00 Net Return from Exit - - - - - - - - - - 600,000.00 195,000.00 198,900.00 202,878.00 206,935.56 211,074.27 215,295.76 219,601.67 223,993.71 228,473.58 233,043.05 Operating Costs Lease/Mortgage Payments - - - - - - - - - - - Payroll/Staffing - 135,000.00 135,000.00 135,000.00 135,000.00 135,000.00 135,000.00 135,000.00 135,000.00 135,000.00 135,000.00 Meals/Entertainment/Events - 12,500.00 12,500.00 12,500.00 12,500.00 12,500.00 12,500.00 12,500.00 12,500.00 12,500.00 12,500.00 Utilities - 20,000.00 20,000.00 20,000.00 20,000.00 20,000.00 20,000.00 20,000.00 20,000.00 20,000.00 20,000.00 Office Supplies - 20,000.00 20,000.00 20,000.00 20,000.00 20,000.00 20,000.00 20,000.00 20,000.00 20,000.00 20,000.00 Accounting/Legal Fees - 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 Depreciation - 60,000.00 60,000.00 60,000.00 60,000.00 60,000.00 60,000.00 60,000.00 60,000.00 60,000.00 60,000.00 Founders Stipend - - - - - - - - - - - One-time Set-up Costs* 600,000.00 - - - - - - - - - - 600,000.00 249,500.00 249,500.00 249,500.00 249,500.00 249,500.00 249,500.00 249,500.00 249,500.00 249,500.00 249,500.00 Net Income - (54,500.00) (50,600.00) (46,622.00) (42,564.44) (38,425.73) (34,204.24) (29,898.33) (25,506.29) (21,026.42) (16,456.95) Cumulative Income(Loss) - (54,500.00) (105,100.00) (151,722.00) (194,286.44) (232,712.17) (266,916.41) (296,814.74) (322,321.04) (343,347.46) (359,804.41) Annual Net Cash Surplus(Shortfall) - 5,500.00 9,400.00 13,378.00 17,435.56 21,574.27 25,795.76 30,101.67 34,493.71 38,973.58 43,543.05

* See Start-up Costs Tab for Details

MetricsAvg # of Tenants - 50 50 50 50 50 50 50 50 50 50 Avg Square Foot Per Team - 300 300 300 300 300 300 300 300 300 300

24Survey Results: Student and Experienced Entrepreneurs

Survey 1: Student and Experienced Entrepreneurs

25

1. Please select the option that best describes you.

Survey continued on next page

Incubator/Accelerator Alumn

Student Entrepreneur

Experienced Entrepreneur

0 5 10 15 20 25 30 35 40

N=82

Survey 1: Student and Experienced Entrepreneurs (continued)

26

2. In which industry are you most likely to start/have started a business? Check all that apply


CPGMedical Devices

NanotechOther

GamesBio-techHi Tech

ConsultingGreen Tech

RetailSocial Enterprise

Enterprise SoftwareSocial Media

MobileWeb apps

0 5 10 15 20 25

N=57

27

3. If you were to apply for a business incubator/accelerator (described at the beginning of the survey), which of the following characteristics would you consider when making the decision? Select up to 3 characteristics.


Shortest term

Easiest application

Other

Desirable city lifestyle

Programming

Critical mass of entrepreneur community

Proximity to other entrepreneurs

Program success rate

Angel/VC accessibility

Expertise of program backers

0 5 10 15 20 25 30 35 40


N=57

28

4. If you were to apply for a business incubator/accelerator (described at the beginning of the survey), which of the following characteristics would you consider when making the decision? Select up to 3 characteristics.


Cohesiveness of community

Access to entrepreneurial info

Demo day

Access to tech or ideas


Office space

Availability of talent

Influential people

Access to capital

0 5 10 15 20 25 30 35 40

N=53



29

5. According to your perception, rank Ithaca’s strengths AND weaknesses of each entrepreneurial aspect below.


Access to capitalAccountability

Demo dayPhysical location

Cohesiveness of communityOffice space

MentoringInfluential people

Access to professional servicesEntrepreneurial eco-system

Network of entrepreneursProgramming

Availability of talentAccess to entrepreneurial information

Cost of livingAccess to tech/ideas

0 1 2 3 4 5 6

N=51

30

6. Please rate how important it is for you to be connected with Cornell students, Ithaca College students, and local entrepreneurs.


1 2 3 4 5 6 7

Scale of 1 to 7

N=51


31


7. Please rate how important it is for you to obtain entrepreneurial information about people in the Ithaca area who are outside your current entrepreneur circle.


1 2 3 4 5 6 7

Scale of 1 to 7

N=51

32


8. According to your perception, please rate the quality of mentors in Ithaca.


1 2 3 4 5 6 7

Scale of 1 to 7

N=51

33


9. Below is a list of reasons to choose to locate your business in a specific location. Please select up to 5 of the most important characteristics.


Hub of distribution

Proximity to suppliers

Industry expertise

Leisure activities

Close to family

Existing professional network

Affordable professional services

Market to test product

Low cost of living

Proximity customers

Desirable place to live

Access to capital

Access to mentors

Access to talent pool

0 5 10 15 20 25 30 35 40

N=49

34


10. In terms of location within a desirable city, which would you prefer?


Other

Suburbs

Downtown

0 5 10 15 20 25 30 35

N=47

35


11. Which of the following product development needs are missing from the Ithaca entrepreneur scene? Select all that apply.


Other physical asset

Other technical talent

Nothing is missing

Wet-lab space

Other

Talent for coding

0 2 4 6 8 10 12 14 16 18 20

N=47

36


12. Rank the size of impact a community-based (i.e. not affiliated with Cornell, Ithaca College, or another academic institution) incubator would have on the Ithaca-Tompkins region.


1 1.5 2 2.5 3 3.5 4

Scale of 1 to 4

N=47

37


13. Please indicate your age.


16 to 20

21 to 25

26 to 30

31 to 35

36 to 40

41+

0 2 4 6 8 10 12 14

N=47

38


14. Please indicate the level of school you have completed.


High school

Freshman in college

Sophomore in college

Junior in college

Senior in college

Graduate degree

Doctorate degree

0 5 10 15 20 25

N=47

39


15. Please indicate your field of study in school.


Physics/Chemistry/Life Sciences

Economics

Liberal Arts

Other Technical/Math/Science

Other Non-Technical (Please Indicate)

Computer Science/Engineering

Business (marketing, finance, accounting, operations, etc.)

0 2 4 6 8 10 12 14 16 18

N=47

40


16. Please indicate where you lived before coming to Ithaca, NY for school or another reason.


Midwest

South

Pacific Northwest

Rocky Mountain Region

New England

Outside the lower 48 U.S. States (Please indicate)

West

Mid-Atlantic (besides Ithaca-Tompkins region, NY)

0 5 10 15 20 25

N=47

41


17. If you are a student or plan on moving in the next 1 to 4 years, please indicate where you plan on living.


South

Rocky Mountain Region

Outside the lower 48 U.S. States (Please indicate)

West

New England

Ithaca-Tompkins region, NY

Don't know


0 2 4 6 8 10 12 14

N=47

42


18. Please indicate where you currently live.


Pacific Northwest

Pacific Southwest


New England

Ithaca-Tompkins region, NY

0 5 10 15 20 25 30 35 40 45

N=47

43


19 (1 of 3). Is there anything you would like us to know about your views concerning a community based incubator/accelerator in Ithaca, NY?

(Note: each bullet is a separate respondent)

• Cost of living, taxes and electric are VERY high in Tompkins County and NY state as compared to Syracuse and outside of NY. This is the biggest detterant. I would never incorporate in NY state.

• Somehow connect it to other hubs -- SV, NYC, Boston, Denver, etc • Access to NYC • get it done :) • This is sorely needed and will be greatly appreciated when launched. • I'm not sure what a wet-lab is so it was difficult to answer that question. I think a

demo day that complements e@c week would be excellent to attract talent and investors. The demo day and e@c should be for all Cornell schools instead of just Johnson. I believe Cornell's tech transfer program is inhibiting the transfer of tech with their current royalty policies. What I would like to see most is an accelerator program that focuses on systems and design thinking principles. Additionally, the accelerator would foster creativity and have the means to take an idea from concept to tangible product. Creating a tangible products requires design and manufacturing capabilities currently not found anywhere on Cornell's campus. The space must be able to support work outside of computer science related businesses.


44



• I think for a place like this to work, especially with tons of students being part of it, that it would require or offer a living space for student entrepreneurs. I personally would have made it to many more events if they had been in the downstairs of my building, as opposed to having to walk 30 mins to campus. It also helps create a very strong network of individuals and keeps everyone accountable.

• I think it's important for the municipalities to fully support local independently owned businesses, and that a community based incubator/accelerator would best be created with the knowledge and support of the local municipalities.

• Great idea, I would love to contribute as a mentor and quite possibly a participant. Would be great to see an environment that encourages more then just software only projects. Possibly an intersection of a fully capable makerspace with an incubator

• It is difficult to accommodate multiple industries. Likely would need to keep it basic, but prior attempts failed because they offered little.

• Given the size of Ithaca, the net effect of a community based incubator would be huge. Additionally, having a community based incubator not directly tied to a university makes for a more inclusive environment while still providing amply opportunities for all students located in town.


45



• This needs to work with other incubators in the area (Binghamton, Tech Garden, HTR, Buffalo) and approach things regionally. If the desire is to be competitive, instead of collaborative, with the other regional options, this is a non-starter.

• I worked at a biotech startup in Ithaca for several years, and I knew of several people who were interested in working on their own ideas for companies (biotech, white biotech/green tech), but there was almost no support for such activities outside of Cornell facilities. I ended up moving to the SF Bay Area because of it. Ithaca needs a community based incubator/accelerator where innovators can demonstrate proof of principle, and get the mentoring/administrative support they need to secure additional funding (whether from angels or grants).


46 Survey Results: Incubator/Accelerator Alumni

Survey 2: Incubator and Accelerator Alumni

47

1. Below is a list of reasons for deciding to apply to an incubator/accelerator. Please check all that apply.


Networking opportunities with similar stage companies

Capital infusion upon induction

Needed help finding a management team

Needed help developing my product

Needed business plan writing help

Recognition that comes with high-profile incubators/accelerators

Needed guidance to prioritize next steps for my business

Recommend by friend/mentor

Needed office space

Needed help raising money

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

27%

36%

45%

45%

55%

55%

64%

64%

82%

82%

N=20

48

2. Below is a list of incubator/accelerator options. Please indicate those considered. Select all that apply.


Incubators in-state






0 1 2 3 4 5 6 7 8 9

Frequency of Responses

Survey 2: Incubator and Accelerator Alumni (continued)

N=13

49

3. Below is a list of incubator/accelerator options. Please indicate the 1 you selected.


Incubators in-state






0 1 2 3 4 5 6

Frequency of Responses


N=13

50


4. Where was/is the incubator/accelerator located within the city?


Suburb (outskirts)

Downtown

0 2 4 6 8 10 12 14

N=18

51


5. How did you hear about the incubator/accelerator you attend(ed)? Select all that apply.


Email

Conference

Other (Please indicate)

Online

Word of mouth

Recommendation from friend/mentor

0 1 2 3 4 5 6 7 8 9 10

N=12

52


6. Do you feel it was necessary to have a dedicated physical space or could the same results have been accomplished using coffee shops, libraries, universities, local businesses, etc.?


Yes80%

No20%

N=11

53


7. Please estimate how you used the physical space. You must allocate 100%.


Conference calls

Administrative tasks (printing, photocopying, faxing)

Presenting (using projector)

Meeting with customers


Random meetings/interactions with other entrepreneur occupants

Brainstorming with team

Access to wifi

Meeting with mentors

Working - coding, selling, etc.

0% 5% 10% 15% 20% 25% 30% 35%

3%

4%

5%

5%

6%

9%

12%

13%

14%

30%

N=16

54


8. How long were you part of the incubator/accelerator?


3 months or less

More than 3 months, up to 6 months

More than 6 months, up to 9 months

More than 9 months, up to 1 year

More than 1 year, up to 2 years

More than 2 years, up to 3 years

3+ years

0 1 2 3 4 5

N=16

55


9. Please select the 3 aspects of the incubator/accelerator that had the most impact on the success of you and/or your business.


Software development help

Ability to find additional members for management team

Demo day

Programming (workshops, seminars, guest speakers, etc.)

Outside individuals helping you stay accountable and prioritize tasks

Access to capital

Access to professional services/advice (legal, accounting, HR, etc.)

Physical location where meetings with customers/vendors could be held

Mentoring (receiving guidance tailored specifically to your current business issues from a designated mentor with experience in your industry)

Introductions to influential people

0% 5% 10% 15% 20% 25%

0%

2%

4%

6%

8%

10%

12%

16%

20%

22%

Frequency of Response

N=16

56


10. Please select the 3 aspects of an incubator/accelerator that had the least impact on the success of you and/or your business.



Mentoring (being assigned a mentor and receiving guidance specific to your business)

Resources

Introductions to influential people

Capital

Programming/curriculum (workshops, seminars, guest speakers, etc.

Physical location where meetings with customers/vendors could be held

Demo day

Outside individuals helping you stay accountable and prioritize tasks

Ability to find additional members for management team

Software development help

0% 5% 10% 15% 20% 25%

0%

2%

2%

6%

6%

8%

13%

13%

13%

15%

23%

Frequency of Response

N=16

57


11.Please rank the following factors on how satisfied you were with your overall experience at the incubator/accelerator.


Access to capital

Mentoring

Ability to develop customers

Develop a pitch deck & presentation

Ability to develop product

1.0 2.0 3.0 4.0 5.0 6.0 7.0

3.8

4.4

4.4

4.7

4.8

N=10

58


12.Were you able to raise sophisticated funding (angel or VC) as a result of your experience in the incubator/accelerator?


Yes

No

0% 10% 20% 30% 40% 50% 60% 70% 80%

31%

69%

N=16

59


13. Did your company realize a successful exit? (example: IPO or sale)


Yes

No

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

13%

88%

N=16

60


14.Comparing your capabilities before entering and after leaving the incubator/accelerator, how much did your competence in each of the following areas improve?

1=No Improvement7=Significant Improvement


Customer development

Marketing

Operations

Human Resources/Capital

Information Technology

Develop a pitch deck & presentation

1 2 3 4 5 6 7

N=16

61


15. Is your company still in business?


Yes

No

0% 10% 20% 30% 40% 50% 60% 70% 80%

75%

25%

N=16

62


16.How long has it been since you left the incubator/accelerator?

Survey continued on next pageN=8

I'm still at the incubator/accelerator

Less than 2 years

More than 2 years up to 4 years

More than 4 years up to 6 years

6+ years

0 1 2 3 4

63


17. Did you keep your business in the same city as the incubator/accelerator after "graduating"?


Yes

No

0 1 2 3 4 5 6 7 8 9 10

N=16

64


18. Overall, how satisfied were you with your experience at the incubator/accelerator you went through? 1=Completely Unsatisfied7=Completely Satisfied


Overall incubator/accelerator level of satisfac-tion

1.0 2.0 3.0 4.0 5.0 6.0 7.0

4.4

N=16

65


19. Please indicate the highest level of school you have completed.


High school

Freshman in college

Sophomore in college

Junior in college

Senior in college

Master's Degree

Doctorate Degree

0 1 2 3 4 5 6 7 8 9

N=9

66


20. Please indicate your undergraduate major field of study in school.


Computer Science/Engineering

Economics

Business (marketing, finance, accounting, operations, etc.)

Physics/Chemistry/Life Sciences

Liberal Arts

Law

Other

0 2 4 6 8 10 12

N=16

67


21. Is there anything you would like us to know about your experience with an incubator/accelerator?

(Note: each bullet is a separate respondent)

• Was at UMBC Incubator, which is run by a Cornell-Johnson School Alum Ellen Hemmerly: www.bwtechumbc.com

• Shared space with other entrepreneurs at similar stages, and the cohesiveness we developed within our cohort, were extremely valuable. It was outstanding.

• Our failure to raise capital and take things to the next level had nothing to do with the incubator itself and had everything to do with a toxic presence in our team.

• I believe it is *critical* that the backers of the incubator are in NO WAY conflicted with also being potential investors. I have seen where the mentoring and support from the incubator can become tainted by mentor/investors forgetting their role as mentor, and becoming useless and a detriment to the company as they begin to see Demo Day coming. I also believe the incubator needs to provide community support, even to those entrants who are not picked to participate. This means also supporting year-round events and public benefits to all - not just the companies picked to participate. The incubator MUST become the hub of a community that benefits the community, IMHO, or it will not be seen as valuable long term.

• It need a lot of outside funding and community support regardless of the venture structure.
