Memphis City Council FY17 Financial Progress Report Presenter: Andre K. Fowlkes, President January 17th, 2017

Mission Statement Start Co. has a mission to diversify Memphis’ economic development efforts through the building of early stage high growth entrepreneurial companies (startups) through public/private partnerships to build a robust innovation economy fostering more inclusive knowledge based jobs.

The Problem Memphis has not participated in the innovation economy of entrepreneurship and technology the last 30 years seeing job births in technology decrease by 50% when the nation increased by 300%. Tax incentives alone are no longer able to create enough jobs to outpace job destruction at the rate it did 30 years ago.

The Solution Job creation from high growth startup companies together with traditional forms of economic development (tax incentives, etc.) is the only way communities are outpacing annual job destruction. Start Co. has an objective to create more startups, lobby for support for the growth of these startups, and to ensure inclusion so that the partners and customers of these efforts are representative of the community we live in.

Funding Amount $25,000 ($12,500 received) Service Provided from City’s Funding: One on one mentorship Programming Lean curriculums and building methods Provision of business, investment, and technology support Mentors Provision of seed funding and grants Facilities to work from

Expenditures- $12,500 General Ops City of Memphis Annual   General Ops City of Memphis Annual July 1- Dec 31 Co-working Space & Facilities $108,000.00 $54,000.00 Core Programming (Training, Office Hours) $202,000.00 $101,000.00 $12,500.00 Industry-focused Programming, Program management $45,000.00 $22,500.00 Planning & Administration $12,019.00 $6,009.50 Overhead & Logistics $20,000.00 $10,000.00 Technical Support/Video/Photography $11,250.00 $5,625.00 Events $15,000.00 $7,500.00 Social Engagement Activities $9,100.00 $4,550.00 Food & Beverage $28,080.00 $14,040.00 Design, marketing, comm, pr, training, event production, etc. Global Accelerator Network Membership Costs $6,250.00 Partner Engagement & Business Development $35,000.00 $17,500.00 Prizes/Incentives/Grants $5,000.00 $2,500.00 Accelerator Recruitment $25,000.00 Hired Interns Ad-hoc Speakers & Programs $6,400.00 $3,200.00 Demo Day Total $604,349.00 $302,174.50

Quantitative Goals Include (Annual) Number of participants screened: 450 Number startups created: 25 Number of mentor hours invested: 3,750 Number of connections made: 125 Amount of investment capital raised: $2MM Number of support resources deployed: Valued at $1.5MM Number of knowledge based jobs created: 75 % minority and women: 50%

Quantitative Results Include (Annual) Number of participants screened: 175 Number startups created: 14 Number of mentor hours invested: 2,100 Number of connections made: 203 Amount of investment capital raised: $1.7MM Number of support resources deployed: Valued at $800k Number of knowledge based jobs created: 41 % minority and women: 39% and 41%

Qualitative Goals Increasing Employability- entrepreneurial and technology skills gained Urban core development and density Attraction & retention of talent Outside investment choosing Memphis

Start Co. Metrics 3600 Professional Connections 3100 Participants in Technical Assistance, Programs & Convening* 3600 Professional Connections Made 3100 Participants in Start Co. Programming 16,000 Hours of Technical Assistance Provided Portfolio Companies* $17.5M/52 startups Co-Investment/Follow-On Funding $2.1M/49 Capital Invested or Granted by Start Co. Net New Jobs 263 Directly Created