1. Acceleration or Incubation? James Robbins NACCE Conference October 14, 2013 James Robbins NACCE Conference October 14, 2013

2. Choices for Community Colleges  Understand the differences between Incubators and Accelerators  Assess your environment and needs  Decide which option works best for you Or Both? © Business Cluster Development – All Rights Reserved 2

3. Incubators “ Business incubators are comprehensive business assistance programs targeted to serve start-up and fledgling companies and to graduate them as sustainable firms into the community. This process often takes two to five years and results in job creation, technology commercialization and other benefits to the businesses and their communities” From National Business Incubation Association © Business Cluster Development – All Rights Reserved 3

4. 4 Accelerators  “Seed accelerators” that provide funding and short- term assistance, primarily to web-based, software, gaming and mobile apps firms  Business support programs focused on firms that have grown past the start-up stages and need assistance to grow to scale  Business incubators by another name

5. © Business Cluster Development – All Rights Reserved 5 5 Seed Accelerators Most Popular Model:  Focused on mobile apps, cloud computing, social media, gaming, entertainment, and web services  90-day boot camps focused on validating business models, customer introductions & prep for investment  Extensive mentoring by experienced entrepreneurs and access to networking during boot camps  Highly-selective investments ($25-50k per company)  A “Demo Day” in which the founders pitch to raise additional investment

6. Attributes of Incubators  Clients – All kinds  Business Model – 90% Non-profit  Location – Usually has a facility for resident companies  Sponsors – Universities, colleges, economic development agencies, and cities © Business Cluster Development – All Rights Reserved 6

7. Attributes of Accelerators  Clients – Firms that are quick to market and need minimal investment  Business Model – For-profits and technology parks  Location – Usually has no permanent facility for resident companies  Sponsors – Investors, serial entrepreneurs, & private companies © Business Cluster Development – All Rights Reserved 7

8. 8 Applying the Correct Model to Your College  Identify possible competition  Consider sector focus  Understand your core strengths  Who will be your clients?  What will success look like for your College?  Can you do both types of programs?

9. Colleges with Incubators Adding Accelerators Benefits and synergies for incubators  Incubators expanding to serve entire entrepreneurial community, including younger entrepreneurs needing access to start-up weekends, boot camps, co-working, seed acceleration and assistance with scaling  Can add investment pools, pitch competitions and demo days  Can attract firms not selected by seed accelerators, founders not wishing to give-up equity, & firms needing space and services after boot camps end © Business Cluster Development – All Rights Reserved 9

10. Incubators Partnering with Accelerators Incubators associated with community colleges can work cooperatively with existing accelerators OR Accelerators associated with community colleges can work cooperatively with existing incubators In both cases, colleges can gain influence and resources from new mentors, service providers and funding sources © Business Cluster Development – All Rights Reserved 10

11. © Business Cluster Development – All Rights Reserved 11 Contact Information Jim Robbins Business Cluster Development jim@clusterdevelopment.com www.clusterdevelopment.com