1. — 1 — © 2015 ViTAL Economy, Inc. SoVermont Business Accelerator Feasibility Study October 2015 Frank Knott – fknott@vitaleconomy.com Jim Haguewood – jim@onegroupconsulting.com

2. — 2 — © 2015 ViTAL Economy, Inc. Meeting Agenda I.Review of SoVermont Business Accelerator objectives and relationship to CEDS goals II.Best practice definitions and characteristics III.Review current regional research and mapping IV.Questions V.Actions and Assignments

3. — 3 — © 2015 ViTAL Economy, Inc. EDA Grant Objectives 1.Launch a new Southern Vermont Business Innovation Accelerator designed to speed creation of new jobs and products for export. 2.Provide the comprehensive entrepreneurial infrastructure and financial resources needed to fulfill the CEDS goals and objectives. 3.Pilot programs to support Green Building startups and product development 4.Develop business infrastructure, connecting local resources and filling gaps through a region-wide virtual program providing ‘wraparound’ support across all sectors to coordinate services, expertise, and mentoring tailored to our unique business environment. 5. Play a major role in filling a critical gap holding back businesses: the lack of investors and capital. Timeline & Deliverables: In the first 12 months, –Map existing business infrastructure resources and develop relationships between key entrepreneurial support systems at regional educational institutions: –Identify structural weaknesses in local business support systems, mapping the gaps –Project Manager and Outreach/Communications coordinator for the Accelerator will both be hired no later than January 2016. By May 2016, –the Accelerator will have articulated a program and be ready to initiate a first cohort, connecting entrepreneurs with expertise and support that will make their projects investor-ready. Next phase –Strengthening connections between capital and innovation in order to attract investment capital for these qualified entrepreneurs from high-priority sectors (based on the CEDS) as they emerge from the Accelerator program.

4. — 4 — © 2015 ViTAL Economy, Inc. Feasibility Study Premise Research and performance analysis concludes that there is no single individual model, with all entrepreneurship innovation ecosystem elements, that exists for a single location. PremiseObjective 1.Build off of and integrate existing innovation, entrepreneurship and business support resources. 2.Focus on the “right” size and design of a business accelerator for the region. 3.Gain an increased climate of trust among innovators, entrepreneurs and resource providers in the region. Approach 1.National best practices for innovation and business accelerators in rural communities 2.Resource assessment 3.Needs assessment 4.Feasibility and funding 5.Performance metrics 6.Program design, culture and delivery model

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6. — 6 — © 2015 ViTAL Economy, Inc. Qualitative: CEDS 2018 Objectives SoVermont Business Accelerator Act regionally Increase the size and quality of the workforce Create an entrepreneurial environment and culture to enhance existing business and grow new business Improve wage parity with the surrounding laborshed Retain and attract younger talent through engagement linkages, lifestyle amenities, and meaningful career opportunities Develop immediate, VY-specific workforce and site impact mitigation strategies prior to its 2014 closure

7. — 7 — © 2015 ViTAL Economy, Inc. Quantitative: Regional Goals by 2018 Goal #1: Reverse Population Decline Increase population to 46,266 Increase proportion of 25-44 year olds to 25% of population Double the percentage of foreign born resident to 7% of population Goal #2: Increase the Number of Well Paying Jobs 1,054 jobs @ $46,340 702 jobs @ $42,130 Increase wages of 4,650 by $5,000 per year Increase median income for associates/some college to $32,328 Increase median income for bachelors degrees to $40,597 Goal #3: Improving Workforce Quality Increase associate degrees/some college and technical certificates among 18-24 year olds Goal #4: Raising Household Income Relative to Surrounding Areas $174M in new wages $470M in new GDP Improve the ration of new earned income to total income to.65 Accelerator Impact Goals # Jobs Created # Startups/Product Lines Return on Investment $ Attraction

8. — 8 — © 2015 ViTAL Economy, Inc. Components of a Regional Entrepreneurship Ecosystem Business Support ServicesBusiness IncubationBusiness AcceleratorCo-Working & Makers Space Entrepreneurship and Innovation Networks Education & TrainingTechnology TransferBusiness Capital

9. — 9 — © 2015 ViTAL Economy, Inc. Best Practice Definitions Business incubators are often sponsored/supported by municipal entities, public institutions and are part of an economic development program. Focus – facilities, early stage companies and shared support services Accelerators focus on companies with high growth potential that offer products or services with a national or global market. Companies are frequently funded by venture capital type organizations with high levels of involvement and expected returns on investment. Focus – existing companies and products, speed to growth and mentorship Co-working/maker spaces offers access to collaborative work space and equipment for startups or existing businesses. Usually highly flexible and loosely organized with a variety to membership styles. Focus – community space building a “home” for inventors and ideas and activities

10. — 10 — © 2015 ViTAL Economy, Inc. Characteristics of Business Accelerators CharacteristicPerformance Metric Web-based high competitive application process, compressed selection process, limited number of participants at anytime (<10% accepted) Pre-seed investment in exchange for an equity position ($5,000-$20,000 for 6%-8%) Focus on small management teams not individuals (3-5 management team) Time limited support consisting of programmed events and intensive mentoring (10-13 weeks) Companies work and learn together in cohorts or classes (1 or 2 cohorts per year)

11. — 11 — © 2015 ViTAL Economy, Inc. Accelerator Strategic Design Investors Mentors Startups Networks

12. — 12 — © 2015 ViTAL Economy, Inc. Current Resource List – LOCAL & State InvestorsSpace/Physical AssetsNetworksService Providers WCEDPBDCCSix College CollaborativeSBDC Brattleboro Savings & LoanThe Brooks House?College GraduatesSCORE Estey Organ Campus?Brattleboro Area TechiesWindham Regional Commission Hermit Thrush BreweryBrattleboro Area Marketing Professionals Marlboro College, Center for New Leadership Duo RestaurantValley Venture MentorsVermont Technical College Leadership Development Training Series Lighting Jar Co-workingAntioch University, Sustainable Business/MBA Hannah Grimes Center for Entrepreneurship Windham Grows, Strolling of the Heifers Peak Pitch/Fresh Track Capital HackVTVCET LaunchVTVermont Venture Foundry Who is missing from the list? Where are the entrepreneurs and innovators concentrated? Hubs? Who is the most trusted? Who is the regional champion? Who are the priorities in each category for contact and interviews?

13. — 13 — © 2015 ViTAL Economy, Inc. Additional Questions 1.What does success look like for the SoVermont Business Accelerator? 2.What services should the Accelerator provide to the region? 3.Should the Accelerator be a fixed or coordinated virtual resource? 4.Who needs to be at the table to champion recommendations and implementation of the designed SoVT Business Accelerator? 5.How will designed Accelerator resource be initially financed, if implementation is to begin by June 2016?

14. — 14 — © 2015 ViTAL Economy, Inc. Next Steps and Assignments