How Innovation is Accelerating
NEO's Economic Future
October 2, 2013
In the past 30 years in the
U.S.,
all net new
job growth
stemmed from high growth
entrepreneurial companies.
THAT EXPLAINS A LOT ABOUT NEO…
Entrepreneur magazine:
“NEO has the Worst Performing Entrepreneurial Outcomes for a Large
U.S. Region Between 1990-2002”
NEO ranked worst across aggregate metrics:
•
•
•
•
•
38% of Ohio GDP and
population
Number of new companies
% of employees working for young firms
Amount of venture capital
Number of bankruptcies
Per capital income growth
ANNUAL CHANGE IN GREATER
CLEVELAND'S GROSS REGIONAL
PRODUCT VS. NATIONAL GDP
3
NOT ALL COMPANIES CONTRIBUTE EQUALLY
• In 2011, high tech companies between 1-5 years
of age created a net 16,700 jobs
• Other businesses between 1-5 yrs of age in the
private sector overall lost 513,700 jobs
The manufacturing
sector creates only
about 1.7 support
positions for each
core job within the
industry.
• 87% of technology startups plan to hire new
employees in 2013 according to an interactive
report by Silicon Valley Bank
• For each new job that is created in the tech sector,
5 jobs are created in service fields
4
SOME GOOD NEWS ABOUT WHAT IS HAPPENING
High-tech startups
are forming at a
higher rate than all
other private-sector
businesses.
5
OnShift | Cleveland, Ohio
Interested in accelerating diverse
entrepreneurial successes to spark
significant economic growth in
Northeast Ohio?
$10M with a management fee of 2%
Return-oriented fund
We can help.
Northeast Ohio Opportunities
Focused on Northeast Ohio
Delivering Resources to Region’s Entrepreneurs
Advisor
Investor
Partner & Advocate
Resource Manager
Deliver high-impact
business assistance
directly to entrepreneurs.
Invest directly in early stage, high
growth Northeast Ohio companies.
Champion new regional resources and
programs via a combination of promotion and
advocacy.
Manage a Network of nearly 30 entrepreneurial resources
to deliver efficient and effective support to entrepreneurs.
7
Specialized Services & Resources
Delivering Resources to Region’s Entrepreneurs
Juventas Therapeutics | Cleveland, Ohio
•
Raise and deploy much-needed early stage capital
•
Help startups access funding
•
Identify and recruit key talent for young firms
•
Deliver expert volunteer mentoring
•
Offer free educational and networking opportunities
•
Conduct market research for startup companies
•
Assist with marketing and public relations
•
Attract and develop new entrepreneurial resources
•
Specialized support for women, minority and inner-city
entrepreneurs
•
Manage a Network of connected seed funds, mentors, incubators
and accelerators to ensure efficient, cost-effective and
complementary delivery of resources across 21 counties of
Northeast Ohio
8
Impact of Supported Companies
economic impact of NE Ohio
startups on the entire state
9
Capital · Revenues · Jobs
Clients Are Measurably Contributing to NEO’s Economic Vitality
revenue generated by
client companies in 2012
jobs created and sustained
by client companies
follow-on capital
collectively raised by clients
JumpStart’s clients
JumpStart’s clients
JumpStart’s clients
10
Our Organization’s Goals
Planning for the Future
Increase the economic impact and ensure the sustainability of
JumpStart’s work while reducing our dependence on current
Northeast Ohio charitable supporters
1.
Deliver economic results that impact startup and high-potential
firms
2.
Build partnerships that lead to greater collective entrepreneurial
impact and sustainability
3.
Have the strongest, ever-evolving knowledge and solutions for
accelerating the economic impact of entrepreneurs and building
entrepreneurial ecosystems
4.
Offer a unique, world-class set of programs for engaging with and
accelerating results of minority and female entrepreneurs, as well as
an intentional approach to developing inclusive ecosystems
5.
Organize to generate significant increased resources
11
Building Partnerships
Our partnership philosophy is to work
together to achieve your desired community,
business, or philanthropic objectives.
12
Entrepreneurial Signature Program
Delivering Coordinated, High-Impact Assistance
More than 600 entrepreneurs approach JumpStart and
our ESP partners annually for support.
As a result, we’re:
“We wouldn't exist
without JumpStart.”
–Laura Bennett, Embrace Pet Insurance
•
Implementing a new assessment continuum and service
methodology, enabling even more efficient use of resources and
increased speed-to-outcomes for all entrepreneurial clients
•
Developing online learning and educational events to support
entrepreneurs furthest from outcomes
•
Scaling the Burton D. Morgan Mentoring Program
•
Expanding talent recruiting services to make them even more
available to growing Northeast Ohio companies
•
Enhancing services to help companies attract follow-on funding and
first customers
13
A Coordinated Startup Network
14
Connected To A Larger System
15
PRISM is about Growth





6,900 Manufacturers in NEO
14.1% of region’s
employment
19.0% of GRP
23.4% of region’s wages
40.5% of Ohio’s
manufacturing
employment
Regional
Economic
Growth
Job Growth
Enabling growth at
SMMs can lead to
significant revenue
and job growth in
Northeast Ohio
Revenue
Growth
16
“Game-Changing” Vision
Northeast Ohio is Internationally Renowned as a Center of Excellence
in Manufacturing Education and Product Innovation
Through a network of EDOs, research agencies & labs, higher education
institutions, manufacturers, and other partners, Northeast Ohio is:
1. Home to many growing manufacturing companies
2. Emerging as a hotbed of talent
3. Attracting manufacturing companies from elsewhere
17
What does PRISM do?
The Partnership for Regional Innovation Services to Manufacturers (PRISM)
seeks to establish Northeast Ohio as a global center of excellence in
manufacturing innovation
Objective: Drive regional economic growth from small-to-mid-sized
manufacturers (SMMs) through three core strategies:
 Target SMMs as an untapped source of economic growth
 Assist critical mass of SMMs in applying resources of the region in growth projects
 Leverage the lessons learned from these engagements to develop sustainable, more
powerful resources to catalyze growth in the broader sector
SMMs account for more than 45% of activity in $30 Billion+ NEO
manufacturing sector, but their full growth potential is not being realized
18
Let’s Partner In New Ways to Leverage
Innovation Into NEO Economic Growth!
Ray Leach, CEO
ray.leach@jumpstartinc.org