Innovation Venture

TABLE OF CONTENTS

INTRODUCTION ......................................... 1 INNOVATION PEER COMMUNITIES .......... 2 EXECUTIVE SUMMARY .............................. 3 PEOPLE ....................................................... 6 ECONOMY ................................................ 14 RESEARCH & DEVELOPMENT ................... 22 INVESTMENT CAPITAL ............................... 28 PLACE ........................................................ 34 SPONSORS ................................................. 42 GLOSSARY OF TERMS ............................... 45 ACKNOWLEDGMENTS ............................ 49 BIBLIOGRAPHY .......................................... 50

THANK YOU TO THE SPONSORS WHO MADE THIS REPORT POSSIBLE!

INTRODUCTION

Boulder’s innovation ecosystem and entrepreneurial economy are world renowned. To sustain this level of performance, the Boulder Economic Council of the Boulder Chamber launched the Boulder Innovation Venture in 2017. The purpose of the Innovation Venture is to leverage research data and cross-industry connections to capture metrics and stories describing local innovation that can be used to amplify Boulder’s status as a leading innovation community.

BOULDER INNOVATION VENTURE STRATEGIES To achieve the goals of the Innovation Venture, the Boulder Economic Council will focus on three key strategies: Measuring, Monitoring & Reporting: Develop Boulder innovation indicators to measure, monitor and report over time on our startup ecosystem performance.

Telling Boulder’s Innovation Stories: Identify and communicate stories about the latest developments, emerging trends, successes and challenges of Boulder’s startup ecosystem.

Convening & Connecting: Facilitate “productive collisions” by convening Boulder’s innovation industries and connecting startups with more well-established companies to facilitate mentoring, partnerships, investments and other programs that support the growth of startups.

METHODOLOGY The Business Research Division (BRD) of the Leeds School of Business at the University of Colorado Boulder was contracted by the Boulder Economic Council to conduct the research and analysis that produced the Boulder Innovation Venture report.

The first phase of research began with a review of literature and a collection of secondary, public data. Innovation and entrepreneurship metrics were identified in consultation with local business, government and nonprofit stakeholders, with the criteria that the metrics be accessible down to at least the Boulder Metropolitan Statistical Area (MSA) level and ideally to the City of Boulder level.

Boulder’s performance on the selected innovation metrics was then compared with peer innovation communities from throughout the country. The metro areas of Silicon Valley, San Francisco, Austin, Boston, Seattle, Portland, Denver, Raleigh and San Francisco were selected for comparison. These regions were chosen based on input from local focus groups convened to assist with the Boulder Innovation Venture (see below) and on a review of innovative city rankings published by Inc., Forbes, CNN, Kauffman Foundation Research, Entrepreneur and other publications. Many charts used in this report present the top performing peer MSAs within each category for comparison.

All of the other metro areas selected for comparison with Boulder have considerably larger populations than the Boulder MSA. In order to make meaningful comparisons, the innovation metrics used in this report are normalized based on population or other standard measures. In most cases, metrics are calculated on per capita basis, but other bases for comparison are also utilized.

For the second phase of the study, BRD conducted five focus groups in partnership with the Boulder Economic Council. Focus group participants were selected based on their involvement or support of innovation in Boulder. Participants represented companies creating innovative products and services; companies providing support services such as funding or legal; and government and nonprofit entities that conduct research and development, educate or advocate. Information gathered in the focus groups helped guide a second round of secondary data gathering to quantify metrics analyzed in this report.

The following report presents key findings of the research with an analysis of key metrics measuring innovation and entrepreneurship in Boulder compared to the peer communities selected for the study.

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BOULDER INNOVATION VENTURE

INNOVATION PEER COMMUNITIES

The innovation peer communities discussed and compared throughout this report are comprised of the following areas:

•

Raleigh-Durham-Chapel Hill, NC CSA: Wake County, Johnston County, Franklin County, Durham County orange County, Chatham County, Person County, Harnett County, Lee County, Granville County, Vance County Population: 2,156,253

Boston-Cambridge-Newton, MA-NH MSA: Norfolk County, Plymouth County, Suffolk County, Essex County, Middlesex County, Rockingham County, Strafford County Population: 4,794,447

•

San Francisco-Oakland-Hayward, CA MSA: Alameda County, Contra Costa County, San Francisco County, San Mateo County, Marin County Population: 4,679,166

•

Boulder, CO MSA: Boulder County Population: 322,226

•

San Jose-Sunnyvale-Santa Clara, CA MSA: San Benito County, Santa Clara County Population: 1,978,816

•

Denver-Aurora-Lakewood, CO MSA: Adams County, Arapahoe County, Broomfield County, Clear Creek County, Denver County, Douglas County, Elbert County, Gilpin County, Jefferson County, Park County Population: 2,853,077

•

Seattle-Tacoma-Bellevue, WA MSA: King County, Snohomish County, Pierce County Population: 3,798,902

•

Portland-Vancouver-Hillsboro or-WA MSA: Clackamas County or; Columbia County or; Multnomah County or; Washington County or; Yamhill County or; Clark County, WA; Skamania County, WA Population: 2,425,325

•

Austin-Round Rock, TX MSA: Bastrop County, Caldwell County, Hays County, Travis County, Williamson County Population: 2,056,405

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BOULDER ECONOMIC COUNCIL

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EXECUTIVE SUMMARY The Boulder Innovation Venture Report is a product of an initiative launched by the Boulder Economic Council of the Boulder Chamber in 2017. The Boulder Innovation Venture leveraged research data and cross-industry connections to capture metrics and stories describing local innovation that we can use to elevate Boulder’s status as a leading innovation community.

This report is the outcome of that effort. It is organized by five key sections: 1.

2.

3.

4.

5.

People Economy Research & Development Investment Capital Place

Each section presents a number of key innovation and entrepreneurship metrics. Boulder’s performance on these metrics is compared with peer innovation communities from throughout the country. Regions such as Silicon Valley, Austin, Boston, Seattle and San Francisco were selected for comparison. Here are some of the key metrics presented in each section:

PEOPLE

• Over 60% of residents in the Boulder metro area have a bachelor’s degree. This is the highest educational attainment among the peer communities studied and among the highest in the United States.

• Boulder has the second highest concentration of Science, Technology Engineering and Math (STEM) occupations among all the peer regions.

• Almost one-quarter of the Boulder metro area’s population falls within the millennial age cohort (20-34). This is second only to Austin, TX among peer communities. Millennials comprise over 37% in the City of Boulder, due largely to the presence of CU Boulder.

RESEARCH & DEVELOPMENT

• The economic impact of Colorado’s federal labs on Boulder County totaled $1.1 billion and provides a critical foundation for the regional economy.

• Among our peer cities, businesses in the City of Boulder have been leading recipients of federal Small Business Innovation Research and Small Business Technology Transfer grants, raising over $262 million from 2010-2017.

• CU Boulder has the third highest average of university Research and Development (R&D) expenditures among universities in the peer communities studied.

INVESTMENT CAPITAL

• Since 2012, 41% of all venture capital funding in Colorado was invested in Boulder startups. Boulder also has the second-highest per capita VC investment in comparison to the peer communities.

• Dozens of venture capital firms from throughout the world invest in Boulder startups, with funding rounds often led by one of about a dozen Boulder-based VC firms.

• Small Boulder businesses fund operations through debt or equity at levels second only to businesses in Palo Alto, CA by using United States Securities and Exchange regulations favorable to small businesses.

PLACE

• Since 1967 Boulder residents have taxed themselves to purchase over 70 square miles of open space to date, nearly three times the 25 square miles of developed area within the city limits.

• Boulder was named one of America’s Most Artistic Towns

by Expedia and cited by the National Endowment for the Arts as a leading region for artists in the United States.

• There are more restaurants per capita in the Boulder region, 2.45 per 1,000 residents, than in the peer regions studied in the report.

ECONOMY

• The City of Boulder’s employment base of about 100,000 jobs is two or three times larger than almost any other city in the United States of comparable to size in population.

• At least ten established industries drive Boulder’s economy – a diverse mix of aerospace, bioscience, energy, ITsoftware, natural products, outdoor recreation and more – unusual for a suburban community.

• Boulder’s startup community, its innovators, entrepreneurs, accelerators and investors, is cited often by researchers and media for the density and velocity of its entrepreneurial activity.

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BOULDER INNOVATION VENTURE

BOULDER ECONOMIC COUNCIL

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BOULDER INNOVATION VENTURE

PEOPLE A key driving force behind any innovation economy is the people living and working in that community; Boulder is no exception.

Boulder is known as a desirable place to live and work for some of the brightest and most successful business leaders, entrepreneurs and talent in the United States. Boulder’s innovation economy can be attributed largely to strong human capital, reflected in the most highly educated workforce in the nation and concentration of employment and employees within STEM-related and manufacturing-related occupations.

WHY IS THIS IMPORTANT? Boulder’s most important asset is its people who drive the economy and shape the region’s quality of life.

Boulder’s human capital also attracts companies to start and grow in Boulder. Larger companies, such as Ball Aerospace, Google, Medtronic, Twitter and Celestial Seasonings have been incentivized to stay in Boulder after acquiring startups due to the quality of

the workforce. A highly educated local workforce is a valuable resource for generating innovative ideas, products and services. Boulder has a strong culture of collaboration, allowing interactions between innovators and business leaders. This collaboration drives further innovation.

The region has benefited significantly from the entrepreneurial spirit of people drawn to Boulder from around the country and the world. Boulder’s extensive network of successful business people and young, ambitious talent drives innovative ideas to market.

2017 BLOOMBERG BRAIN CONCENTRATION INDEX: TOP 10

Metro areas with at least 100,000 population were assessed on their concentration of full-time STEM workforce, advanced degree or science & engineering undergraduate degree holders and net business formation Metro Area

Score

STEM

Sci & Eng Degrees

Advanced Degrees

Net Biz Formation

Boulder, CO

99.15

8.5

19.3

18.5

56.3

San Francisco, CA

97.33

5.9

16.1

14.2

49.0

San Jose, CA

96.94

9.6

19.5

15.4

37.4

Washington, DC

95.66

6.1

15.1

17.0

34.9

Raleigh, NC

95.00

5.5

13.0

11.2

53.1

Seattle WA

93.27

5.6

12.9

11.1

41.3

Denver, CO

93.23

4.6

11.1

10.7

67.5

Boulder is ranked number one nationally in the “Bloomberg Brain Concentration Index,” which tracks business formation as well as employment and education in the sciences, technology, engineering and mathematics.

Source: Bloomberg, 2017

BOULDER ECONOMIC COUNCIL

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EDUCATIONAL ATTAINMENT Educational attainment has been consistently highlighted in studies related to entrepreneurship and innovation, reporting a strong correlation between highly educated people and innovation economies.

According to a recent ranking conducted by 24/7 Wall Street, “Boulder has the distinction of being the most educated city in America.”

PERCENT OF POPULATION 25+ WITH BACHELOR’S DEGREE OR HIGHER (MSA) In Boulder MSA, 60.7% of the population and 128,000 individuals have a bachelor’s degree or higher. This concentration of bachelor’s degrees ranks the highest among the innovation MSAs.

PERCENT OF POPULATION 25+ WITH GRADUATE DEGREE (MSA) About 28.3% of residents age 25 and over have a graduate degree in the Boulder MSA, which ranks highest among the peer innovation MSAs.

EDUCATIONAL ATTAINMENT OF POPULATION 25+ (CITY)

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BOULDER INNOVATION VENTURE

OCCUPATIONS SCIENCE, TECHNOLOGY, ENGINEERING AND MATHEMATICS The number of science, technology, engineering and mathematics (STEM) occupations is a metric that shows the concentration of high-tech jobs that are generally associated with innovation in a community.

Specific STEM-related occupations are defined by the Bureau of Labor Statistics and include (but are not limited to) computer occupations, engineers, life and physical scientists, architects, mathematical science occupations and STEMrelated teachers and managers.

STEM PERCENTAGE OF TOTAL EMPLOYMENT (MSA)

In 2016, 15% of all occupations in Boulder were STEMrelated, more than double the national average of 6%.

CONCENTRATION OF STEM OCCUPATIONS (MSA) Nation: 1.0

The Boulder MSA has 2.5 times the concentration of STEM occupations as the nation.

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COMPUTER AND MATHEMATICAL OPERATIONS The number of computer and mathematical operations occupations represents the concentration of jobs that are associated with the creation of high-tech goods and services. The Boulder MSA records the second-highest percentage of total employment associated with computer and mathematical occupations among its peer MSAs.

COMPUTER AND MATHEMATICAL OPERATIONS PERCENTAGE OF TOTAL EMPLOYMENT (MSA) In 2016, more than 7% of all occupations in Boulder were computer and mathematical operations-related compared to 3% for the United States. Only Silicon Valley ranked higher.

COMPUTER AND MATHEMATICAL OPERATIONS CONCENTRATION OF EMPLOYMENT (MSA)

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In comparing the concentration of computer and mathematical operations jobs to peer MSAs, Boulder MSA has a related location quotient of 2.46, the second highest behind Silicon Valley (4.21).

BOULDER INNOVATION VENTURE

MANUFACTURING The number of manufacturing occupations is a metric that shows the concentration of jobs that are associated with the creation of goods. According to the United States Council on Competitiveness, manufacturing in the United States has one of the highest multiplier effects of all industry sectors, translating to the essential need of the manufacturing industry for the longer term and more sustainable health of the United States economy. In short, a strong manufacturing sector supports growth within all sectors.

LEADING BOULDER MANUFACTURING SECTORS: Aerospace Medical Devices Pharmaceuticals Natural Foods

Outdoor Products Precision Instruments

MANUFACTURING CONCENTRATION OF EMPLOYMENT (MSA) Nation: 1.0

Boulder has a manufacturing employment-related location quotient of 1.14, the third highest behind PortlandVancouver-Hillsboro (1.25) and San Jose-SunnyvaleSanta Clara (1.76).

OCCUPATION COMPARISON BY LOCATION QUOTIENTS (MSA) Occupation Type

Boulder MSA

San Jose MSA

Natural Sciences Managers

3.7

1.1

2.6

1.4

3.1

0.4

1.1

1.6

Software Developers, Applications

4.7

7.5

2.9

4.2

-

2.3

2.0

2.0

Software Developers, Systems Software

3.4

8.0

2.5

2.5

3.4

2.5

2.1

0.7

Aerospace Engineers

7.5

4.1

0.9

-

0.6

-

2.2

0.1

Computer Hardware Engineers

11.2

19.2

3.3

1.3

2.0

1.1

-

-

Aerospace Engineering and Operations Technicians

10.2

7.3

1.6

2.3

-

-

1.0

-

Biochemists and Biophysicists

7.9

2.6

4.1

0.7

7.3

1.4

0.6

0.1

Physicists

39.2

1.6

-

0.6

1.0

1.2

-

0.3

Atmospheric and Space Scientists

87.9

-

0.8

1.6

1.4

-

-

-

Art Directors

2.9

1.1

2.4

1.1

1.8

1.4

1.0

3.3

2.2

3.3

1.3

SFO Seattle Boston Austin Denver MSA MSA MSA MSA MSA

Sales Directors 5.9 3.8 2.1 1.3 3.0 Source: Bureau of Labor Statistics, Occupational Employment Statistics 2017 BOULDER ECONOMIC COUNCIL

Portland MSA

In comparison to the nation, Boulder maintains impressive concentrations of occupations related to innovation.

Boulder MSA as 87.9 times the national average of atmospheric and space scientists.

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DEMOGRAPHICS POPULATION BY AGE Within the City of Boulder, the millennials represent 37.2% of the population while the prime working-age cohort is represented at 38.3%. It should be noted that the university has a large effect on this data because the university is contained within the city limits, so the same demographic is represented over a smaller total population.

Boulder’s population is relatively young compared to other entrepreneurial hubs in the United States. Even so, this dominating age bracket exhibits the characteristics of a “prime entrepreneurship age.”

POPULATION BY MILLENNIALS (MSA) MSA

Millennials (20-34)

City of Boulder

37.2%

Austin-Round Rock MSA

24.5%

Boulder MSA

23.8%

Seattle-Tacoma-Bellevue MSA

22.7%

Denver-Aurora-Lakewood MSA

22.3%

San Jose-Sunnyvale-Santa Clara MSA

22.1%

San Francisco-Oakland-Hayward MSA

22.0%

The millennial age cohort (aged 20-34) represents 23.8% of Boulder’s total population, exceeded only by the AustinRound Rock MSA, at 24.5%. In comparison, the City of Boulder millennial age cohort represents 37.2% of the total population.

United States Census Bureau, American Community Survey

POPULATION BY WORKING AGE (MSA)

The Boulder MSA has the lowest proportion of its population in prime working-age years (30–64 years of age) of its peer cities, at 44.7%.

MSA

Working Age (30-64)

San Francisco-Oakland-Hayward MSA

49.3%

Seattle-Tacoma-Bellevue MSA

48.5%

San Jose-Sunnyvale-Santa Clara MSA

48.1%

Austin-Round Rock MSA

47.5%

Boulder MSA

44.7%

City of Boulder

38.3%

United States Census Bureau, American Community Survey

POPULATION BY RETIREMENT AGE (MSA) MSA

Retirement Age (65+)

Boston-Cambridge-Newton MSA

15.0%

San Francisco-Oakland-Hayward MSA

14.6%

Portland-Vancouver-Hillsboro MSA

14.1%

Boulder MSA

13.3%

San Jose-Sunnyvale-Santa Clara MSA

12.8%

Austin-Round Rock MSA

10.2%

City of Boulder

9.8%

United States Census Bureau, American Community Survey

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BOULDER INNOVATION VENTURE

BOULDER COUNTY POPULATION BY GENERATION Boulder MSA has a greater population of younger individuals in the millennial age group (“millennials”), ages 20–34 years old.

Source: Colorado State Demography Office, Boulder County 2017

BOULDER COUNTY POPULATION CHANGE 2010-2016 Both Boulder County and the City of Boulder have experienced an annual population growth since 2010. Boulder County has increased 1.4% annually.

Area

2010

2016

Change

Annual Average % Change

Boulder County Total

295,605

321,989

26,384

1.4%

Boulder

97,928

107,789

9,861

1.6%

Erie (Part)

8,409

9,769

1,360

2.5%

Longmont (Part)

86,409

93,254

6,845

1.3%

Louisville

18,412

20,643

2,231

1.9%

Lyons

2,038

1,923

(115)

-1.0%

Superior (Part)

12,501

13,185

684

0.9%

Unincorp. Area

43,484

45,173

1,689

0.6%

Source: Colorado State Demography Office

BOULDER COUNTY POPULATION CHANGE 2010-2016

Since 2011, Boulder County’s population increases can be attributed more to net migration to the region than natural increase.

Source: Colorado State Demography Office

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BOULDER INNOVATION VENTURE

ECONOMY For a community of Boulder’s size, about 108,000 city residents including CU students, our economy is distinguished by a larger than usual employment base. Boulder’s employment base is two to three times larger than almost any other city with a comparable population. Boulder’s economy is also distinguished by an unusually diverse mix of industries.

Perhaps the best known attribute of Boulder’s economy is its dynamic entrepreneurial ecosystem. The city regularly earns the highest comparative rankings from organizations such as the Brookings Institution and the Ewing and Marion Kauffman Foundation and from media publishers like Entrepreneur, Fortune, Forbes and Inc. WHY IS THIS IMPORTANT? Robust economic vitality is important for many reasons. It generates the capital and funding to support public services and infrastructure investment; research, development and innovation; and social, environmental and cultural programs, among other community benefits.

A dynamic economy also attracts the talent, investment, innovation, entrepreneurs, businesses and industries necessary to sustain a community’s economic vitality and fuel a community’s adaptability to changing demographics, social values, markets, public services and industries.

BOULDER BUSINESSES AND EMPLOYMENT There are over 6,500 businesses in the City of Boulder – not counting self-employed sole proprietorships – and about 100,000 jobs. Companies in Boulder range from small businesses and startups to operations of well-established, multi-national corporations. The concentration of businesses and jobs in the city accounts for more than 50% of total employment in the Boulder Metropolitan Statistical Area (MSA). The most recent data from the State of Colorado show that the Boulder MSA had about 15,000 businesses employing nearly 180,000 individuals.

BUSINESS, JOB AND EMPLOYMENT DENSITY (MSA) MSA

Employment 2016

Businesses Jobs Per 2016 Capita

Businesses Per Capita

Austin-Round Rock, TX MSA

953,519

55,151

0.46

0.027

Boston-Cambridge-Newton, MA-NH MSA

2,603,895

161,094

0.54

0.034

Boulder, CO MSA

176,652

14,683

0.55

0.046

City of Boulder

93,017

6,249

0.86

0.058

Denver-Aurora-Lakewood, CO MSA

1,415,926

99,059

0.50

0.035

Portland-Vancouver-Hillsboro OR-WA MSA

1,129,639

84,906

0.47

0.035

San Francisco-Oakland-Hayward, CA MSA

2,319,731

190,578

0.50

0.041

San Jose-Sunnyvale-Santa Clara, CA MSA

1,063,091

71,282

0.54

0.036

Seattle-Tacoma-Bellevue, WA MSA

1,894,408

129,878

0.50

0.034

The density of jobs and businesses in the Boulder MSA is the highest among the peer regions studied in this report. The City of Boulder has an even higher density.

Source: Bureau of Labor Statistics, QCEW, 2018 BOULDER ECONOMIC COUNCIL

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SOLE PROPRIETORS Boulder has a high concentration of self-employed sole proprietorships. Just under 28% of total Boulder MSA employment is attributable to sole proprietors, the highest percentage among its peer innovation communities. The single-largest sector in which sole proprietors work is professional, scientific and technical services, a sector closely associated with technology, innovation and entrepreneurship.

RATIO OF PROPRIETORS TO TOTAL EMPLOYMENT, 2013-2016 (MSA) Among the comparison MSAs, Boulder tied with Boston in growth in the share of proprietors (four percentage points) from 2013-2016.

MSA

2013

2014

2015

2016

Austin-Round Rock, TX MSA

25.7%

25.9%

26.0%

25.7%

Boston-Cambridge-Newton, MA-NH MSA

19.9%

20.1%

21.8%

21.9%

Boulder, CO MSA

27.2%

27.4%

27.7%

27.8%

Denver-Aurora-Lakewood, CO MSA

23.6%

23.5%

23.7%

23.7%

Portland-Vancouver-Hillsboro or-WA MSA

21.5%

21.6%

21.7%

21.7%

San Francisco-Oakland-Hayward, CA MSA

24.0%

24.1%

24.3%

24.2%

San Jose-Sunnyvale-Santa Clara, CA MSA

19.2%

18.9%

19.0%

18.9%

Seattle-Tacoma-Bellevue, WA MSA

18.6%

18.6%

18.8%

18.8%

Source: Bureau of Economic Analysis

PROPRIETOR EMPLOYMENT AND WAGE AND SALARY EMPLOYMENT (MSA)

The Boulder MSA has the highest prevalence of sole proprietors among the peer MSAs.

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BOULDER INNOVATION VENTURE

B CORPS Boulder has a high concentration of certified B Corporations (B Corps). B Corps meet the highest standards of verified social and environmental performance, public transparency and legal accountability and aspire to use the power of markets to solve social and environmental problems.

As of November 2017, a total of 46 companies based in the City of Boulder are certified as B Corps and represent many of Boulder’s main industries.

Collectively, B Corps lead a growing global movement of people using business as a force for good. Compared to peer cities, Boulder’s high number of certified B Corps companies suggests a clustering of business owners whose progressive management values align with the unconventional leadership often associated with creativity and innovation.

CERTIFIED B CORPS PER 1,000 RESIDENTS (CITY)

When compared to its peer cities, Boulder had the third-highest total number of certified B Corps, behind Portland or (71) and San Francisco, CA (65).

BOULDER KEY INDUSTRY CLUSTERS Boulder has at least ten established industry clusters, including aerospace, biosciences, clean energy, ITsoftware, natural products, outdoor recreation and creative services, among others. An industry cluster refers to a concentration of companies, professional services and suppliers supporting a particular industry.

Six industry clusters in the Boulder MSA are regularly profiled by the Metro Denver Economic Development Corp. These clusters are important to Boulder’s economy because each has levels significantly higher than most other regions in the United States.

“Location quotients” are a measure of industry concentration compared to a U.S. average quotient of 1.0. Boulder MSA industry location quotients indicate concentrations ranging from 2 times the U.S. average for the beverage industry and up to 13 times the U.S. average for aerospace.

BOULDER ECONOMIC COUNCIL

INDUSTRY CLUSTERS: BOULDER MSA Industry Cluster

Number of Businesses

Total Concentration Employment

Aerospace

44

5,682

13

Beverage

38

1,036

2

Bioscience

149

4,775

4

Cleantech

290

4,551

4

IT-Software

920

11,614

3

Source: Metro Denver Economic Development Corporation

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CU Boulder analyzed three additional key industries in the City of Boulder and the Boulder MSA: creative services (advertising agencies, web and app developers), outdoor recreation and food manufacturing. In each industry, the concentration of local businesses was significantly higher than peer communities.

CREATIVE PROFESSIONAL SERVICES INDUSTRY BUSINESSES PER 1,000 RESIDENTS (MSA) The City of Boulder has 37 ad agencies and 96 marketing consulting firms, representing 1.23 businesses per 1,000 residents. The Boulder MSA has 0.85 creative establishments per 1,000 residents - the highest compared to the peer communities.

Per 1,000 residents, the Boulder MSA outranks peer communities with .53 sporting goods merchant wholesalers, sporting goods stores, sporting and athletic goods manufacturers and sports and recreation instruction businesses.

The City of Boulder has an even greater concentration at .87 businesses.

OUTDOOR INDUSTRY BUSINESSES PER 1,000 RESIDENTS (MSA)

FOOD MANUFACTURING BUSINESSES PER 1,000 RESIDENTS (MSA)

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Among peer communities, the Boulder MSA had the highest concentration of food manufacturers in the manufacturing industry, with 0.29 businesses per 1,000 residents. The City of Boulder was higher with 0.36 businesses per 1,000 residents.

BOULDER INNOVATION VENTURE

MANUFACTURING Another key indicator of economic diversity can be found by comparing employment in the manufacturing sector versus the services sector. Much has been written about the loss of U.S. manufacturing jobs. Boulder’s manufacturing economy continues to out perform other areas. Manufacturing employment in the Boulder MSA is nearly 10% of total employment, compared to 8% in the United States and less than 5% in the Denver MSA.

MANUFACTURING PERCENTAGE OF TOTAL EMPLOYMENT (MSA)

In 2016, nearly 10% of all occupations in Boulder were manufacturing — more than double the Denver MSA.

This is important because manufacturing activity produces goods that are typically exported outside of Colorado, often even outside the United States. These export sales generate income that returns to Boulder and is circulated through the region in the form of payroll, capital investment, taxes and fees and supplier payments, among other means.

Source: Company Week, 2014

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BOULDER STARTUP AND ENTREPRENEURIAL PERFORMANCE The Boulder community is propelled by innovation and entrepreneurship with one of the highest concentrations of startup activity in the world. The performance of our entrepreneurial ecosystem is cited as a benchmark for other communities by research organizations, business publications and others who study startup activity.

Measuring startup activity – even defining a “startup” – continues to challenge researchers. Some define any new business as a startup, while others only consider new ventures expected to grow quickly and to substantial size as startups. Many supporting the latter definition also argue that innovation and risk are key elements of startups, which are often founded to solve a problem and capitalize on market opportunities.

The challenge of defining a startup makes measuring the performance of a startup community difficult. Different approaches to measuring startup activity, even among our peer cities, make comparisons more subjective than other measures of innovation and entrepreneurship.

The Brookings Institution recently analyzed the 2018 Inc. Magazine 5000, a list high-growth and innovative companies in the United States. Brookings then analyzed the geographic locations of Inc. 5000 high-growth companies (I5HGCs) to determine where they were most concentrated. Boulder ranked highest among peer communities.

INC. 5000 HIGH-GROWTH COMPANY DENSITY 2011-2017 (CITY) The density of highgrowth companies was higher in Boulder by a large margin compared to our peer communities.

Source: Brookings Institution, 2017

NEW BUSINESSES Research conducted by CU Boulder for this report analyzed the number of new businesses started in the City of Boulder between 2010 and 2016. Nearly 5,700 new businesses were started during that period. CU Boulder also analyzed the ratio of business births over business deaths (closures) to measure the velocity of new business formation.

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New business births in the Boulder MSA consistently outpaced deaths at an average of 360 net new businesses annually over the past five years. As a percentage of all businesses in the Boulder MSA, the ratio of business births over closures ranked among the highest compared to peer MSAs.

BOULDER INNOVATION VENTURE

CITY OF BOULDER NEW BUSINESSES, 2010-2016 Industry by NAICS Classification

NAICS Code

Total Businesses

Average Per Year

Startup Rate

Total Jobs

Agriculture

11

11

2

26%

--

Mining

21

7

1

9%

--

Utilities

22

6

1

20%

--

Construction

23

155

22

10%

226

Manufacturing

31-33

154

22

9%

855

Wholesale Trade

42

326

47

13%

987

Retail Trade

44-45

319

46

8%

1,311

Transportation & Warehousing

48-49

22

3

9%

109

Information

51

252

36

17%

807

Finance and Insurance

52

238

34

10%

513

Real Estate, Rental, Leasing

53

209

30

9%

298

Professional, Scientific & Technical Services

54

1,933

276

16%

4,091

Management of Companies & Enterprises

55

84

12

24%

312

Administrative & Support & Waste Management

56

310

44

17%

859

Education Services

61

134

19

13%

305

Healthcare & Social Assistance

62

377

54

8%

927

Arts, Entertainment, Recreation

71

146

21

16%

191

Accommodation & Food Services

72

276

39

10%

2,350

Other Services

81

571

82

17%

726

Government

Gov’t

5

1

3%

--

Unclassified

119

17

NA

--

Total

5,654

808

13%

15,178

Source: Colorado Department of Labor and Employment, Quarterly Census of Employment and Wages (BRD calculations).

“High-tech traded sectors,” described as including manufacturing; information; professional, scientific and technical services; and management of companies and enterprises, accounted for 43% of Boulder’s new businesses and 15,200 jobs from 2010 to 2016.

ESTABLISHMENT BIRTHS AND DEATHS, PERCENTAGE OF TOTAL BUSINESS (MSA)

Once normalized, the number of overall establishment starts out pace closures by 2.4% annually, which ranks Boulder higher among the peer innovation economies.

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BOULDER INNOVATION VENTURE

RESEARCH & DEVELOPMENT Research and Development (R&D) is the basis of a globally competitive, knowledge-driven economy and is focused on three general concepts: basic research, applied research and development. Roughly two-thirds of all R&D in the United States is focused on development, with the remainder split between applied and basic research.

An investment in R&D has been shown to help develop new products and services that drive growth, create jobs and improve the societal welfare.

WHY IS THIS IMPORTANT? The R&D presence in Boulder is a critical element in establishing a culture of innovation as it attracts highly educated people who contribute to the entrepreneurial mindset of the city. The essential role of R&D is to invent a solution for an existing issue, so those who work in R&D are innately motivated to innovate. The presence of university, federal and private research is an important attractor for STEM talent across the country. As the pool of world-class talent grows in Boulder, more companies and research initiatives are interested in locating to the area, which creates a positive self-perpetuating cycle of attracting talent and funding in both public and private sectors. R&D activity bolsters the environment of innovation as these labs continually challenge the status quo and work to solve some of the world’s largest issues.

FEDERAL LABS The City of Boulder is home to 17 federal labs.

According to a 2017 CO-LABS report, the economic impact of Colorado’s federal labs on Boulder County totaled $1.1 billion and led to an additional $698 million in value added. These labs employ 7,627 individuals, an unusually high density in a city of 100,000 citizens.

Federal labs are one of the main drivers of innovation in the R&D space and Boulder is home to labs that explore a multitude of initiatives ranging from the National Oceanic and Atmospheric Administration (NOAA) to the University Corporation for Atmospheric Research (UCAR).

The concentration of research federal labs (11 labs and 6 subsidiaries), along with the University of Colorado, serve as strong attractors of STEM talent to Boulder.

BOULDER ECONOMIC COUNCIL

BOULDER FEDERAL LABS 1.

2.

3.

4.

5.

6.

Cooperative Institute for Research in Environmental Sciences (CIRES) Institute of Arctic and Alpine Research (INSTAAR) JILA Laboratory for Atmospheric and Space Physics (LASP) National Ecological Observatory Network (NEON) National Oceanic and Atmospheric Administration (NOAA) 7. Earth System Research Laboratory (ESRL) 8. National Geophysical Data Center (NGDC) 9. National Weather Service (NWS) 10. National Environmental Satellite, Data and Information Service (NESDIS) 11. Space Weather Prediction Center (SWPC) 12. National Institute of Standards and Technology (NIST) 13. National Solar Observatory 14. National Telecommunications and Information Administration (NTIA) 15. University Corporation for Atmospheric Research (UCAR) 16. National Center for Atmospheric Research (NCAR) 17. UNAVCO

Source: Business Research Division, Feb. 2017

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Beyond their measurable economic impact, the federal facilities create a number of intangible benefits for their local communities, the state and broader social structure. These labs spur the development of new technologies, spawn tech transfer and spin-off companies and work collaboratively with private business, resulting in greater business investment in the state. The facilities and researchers also foster community relationships through education and volunteerism.

IMPACT OF COLORADO FEDERAL LABS ON BOULDER COUNTY: FY 2013-FY 2015

The economic impact of Colorado’s federal labs on Boulder County totaled $1.1 billion in FY 2015.

Impact Output ($millions) Value Added ($millions) Employment

2013 $1,070 $643 7,367

2014 $1,093 $664 7,592

2015 $1,099 $698 7,627

Source: Business Research Division, Feb. 2017

EXAMPLES OF COMMERCIALIZATION Private-PublicPartnershipSpin-off Companies Shared Equipment/Space

Tech Transfer

Licensed Technology

Patents

NOAA

NOAA

NOAA

JILA

JILA

JILA

INSTAAR

NREL

NREL

NREL

INSTAAR

NREL

NWRC

UCAR

LASP

NREL

NWRC

UCAR

CIRES

RMRS

RMRS

CIRES

UCAR

CIRES

Federal labs in Boulder have been demonstratively successful in tech-transfer and the creation of multiple spin-off companies.

USDA CIRES Source: Business Research Division, Feb. 2017

FEDERAL LABORATORY CONSORTIUM The Federal Laboratory Consortium for Technology Transfer (FLC) is the formally chartered, nationwide network of over 300 federal laboratories, agencies and research centers that fosters commercialization best practice strategies and opportunities for accelerating federal technologies from the labs and into the marketplace. Boulder ranks high among its peer cities with labs that are part of this network.

FEDERAL CONSORTIUM LABS (CITY) Compared to peer cities, Boulder ranks second with four labs as members of the FLC. Members of the FLC community include world–renowned scientists, engineers, inventors, entrepreneurs, academia and laboratory personnel who promote further innovation in Boulder.

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BOULDER INNOVATION VENTURE

RESEARCH PRIVATE RESEARCH As a result of federal research activity, industry crossover and access to world-class talent in Boulder, there is also a great deal of private research. Boulder is a leading research hub within the industry areas of aerospace, pharmaceutical and clean energy. Much of this research is conducted in conjunction with federal or university initiatives. For example, Ball Aerospace and SomaLogic commercialize much of the cutting-edge findings produced in the federal labs.

UNIVERSITY RESEARCH AND DEVELOPMENT University R&D expenditures by source of funding is a metric used to conceptualize how institutions support their research initiatives. The funding sources are segmented into six groups: federal, state and local, institutional, business, nonprofit and other. Understanding funding sources is critical in identifying the types of research taking place in particular geographic locations as the R&D support may come from different stakeholders.

Boulder is home to only one research university, whereas many of the peer cities have a greater mix of public and private institutions with large research budgets.

RESEARCH DOLLARS AT UNIVERSITY BY CITY Innovation City

Number of Research Universities

Total R&D Expenditures (thousands)

Federal Average per Funds University (thousands)

Austin, TX

2

$675,990

$337,995

$378,358

Boulder, CO

1

$453,123

$453,123

$371,995

Boston, MA

8

$2,929,585

$366,198

$1,629,091

Denver, CO

2

$465,031

$232,516

$309,989

Palo Alto, CA

1

$1,066,269

$1,066,269

$694,693

Portland, OR

4

$63,696

$15,924

$34,688

Research Triangle, NC

5

$2,604,011

$520,802

$1,421,252

San Francisco, CA

3

$1,324,899

$441,633

$615,789

San Jose, CA

1

$41,662

$41,662

$31,318

Seattle, WA

3

$1,280,745

$426,915

$948,457

Among the peer communities, Boulder ranks third in average R&D expenditures per university.

Federal sources represent over 80% of the $453+ million expenditure by the University of Colorado Boulder, which is the highest concentration among comparable cities.

Source: National Science Foundation, Higher Education Research and Development (HERD) Survey, FY 2016.

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SBIR AND STTR Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) seed funding statistics provide a compelling metric in understanding innovation in the business world.

The SBIR program is a highly competitive program that encourages domestic small businesses to engage in federal research/research and development (R/R&D) that has the potential for commercialization. Through a competitive awards-based program, SBIR enables small businesses to explore their technological potential and provides the incentive to profit from its commercialization. The SBIR program mission is to support scientific excellence and technological innovation through the investment of federal research funds in critical American priorities to build a strong national economy.

From 2010 – 2017, Boulder MSA was the leading recipient of total funding per capita among peer communities from the SBIR and STTR programs,with over $360 million of seed capital. The City of Boulder had even higher total funding per capita.

STTR is another program expands funding opportunities in the federal innovation arena. Central to the program is expansion of the public/private sector partnership to include the joint venture opportunities for small businesses and nonprofit research institutions. The unique feature of the STTR program is the requirement for the small business to formally collaborate with a research institution in Phase I and Phase II. STTR’s most important role is to bridge the gap between performance of basic science and commercialization of resulting innovations.

The United States Small Business Administration serves as the coordinating agency for the SBIR/STTR programs. It directs the agencies’ implementation of the programs, reviews their progress and reports annually to Congress on its operation.

Place

Population

SBIR

STTR

Total

Per Capita (2010-2017)

City of Boulder

108,108

$239,303,192

$22,815,853

$262,119,045

$2,425

Boulder, CO MSA

322,226

$332,840,928

$27,844,686

$360,685,614

$1,119

Boston-CambridgeNewton, MA-NH MSA

4,794,447

$1,834,339,687

$199,834,980

$2,034,174,667

$424

San Jose-SunnyvaleSanta Clara, CA MSA

1,978,816

$439,610,978

$38,605,117

$478,216,095

$242

Austin-Round Rock, TX MSA

2,056,405

$238,923,250

$41,630,184

$280,553,434

$136

San Francisco-OaklandHayward, CA MSA

4,679,166

$510,502,391

$58,395,516

$568,897,907

$122

Denver-AuroraLakewood, CO MSA

2,853,077

$229,471,938

$26,598,935

$256,070,873

$90

Seattle-TacomaBellevue, WA MSA

3,798,902

$291,148,636

$35,677,952

$326,826,588

$86

Portland-VancouverHillsboro, OR-WA MSA

2,425,325

$169,594,786

$29,516,455

$199,111,241

$82

Population source: U.S. Census Bureau (2016). SBIR/STTR source: Small Business Administration, Small Business Innovation Research.

2016-2017 SELECT SBIR/STTR AWARD RECIPIENTS IN BOULDER COUNTY: 1. American Manufacturing LLC 2. Ascentia Imaging, Inc. 3. Atmospheric & Space Technology Research Associates 4. Beyond Photonics LLC 5. Black Swift Technologies LLC 6. Coldquanta, Inc. 7. Colorado Photopolymer Solutions 8. Dakota Ridge R&D

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9. DMC Biotechnologies, Inc. 10. First Rf Corporation 11. High Precision Devices, Inc. 12. InDevR, Inc. 13. Kestrel Labs Inc 14. MBio Diagnostics, Inc. 15. Opttek Systems, Inc. 16. Pisces Molecular LLC 17. Radiasoft LLC

18. Radiometrics Corporation 19. The Space Research Company 20. Special Aerospace Services 21. Stryd, Inc.

BOULDER INNOVATION VENTURE

UTILITY PATENTS One way to measure innovation and R&D activity within a geographic area is through intellectual property in the form of patents. Patents secure exclusive commercial rights to the production and utilization of an invention and therefore offer insight into key areas of innovation.

UTILITY PATENTS GRANTED PER 100,000 RESIDENTS (MSA)

A utility patent is a patent that covers the creation of a new or improved — and useful — product, process or machine. Also known as a “patent for invention,” it prohibits other individuals or companies from making, using or selling the invention without authorization.

As a result, utility patents are often the most expensive and difficult to obtain type of patent.

Once normalized for population, the Boulder MSA had the second-most utility patents granted per 100,000 residents in 2015, second to San Jose, CA.

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BOULDER INNOVATION VENTURE

INVESTMENT CAPITAL In addition to maintaining one of the highest rates of VC funding per capita, Boulder entrepreneurs are well supported by early-stage mentorship, accelerators and industry expertise.

WHY IS THIS IMPORTANT? In this strong economy, the demand for money continues to increase as Boulder companies form and grow to meet market demand. The importance of funding and operational support for the innovation ecosystem is indisputable and impacts the lifecycle of businesses in Boulder from early-stage startups to larger, established companies. Boulder attracts not only VC capital, but also angel investing and banking resources to help companies scale-up ideas and bring them to market.

Although access to funding is essential to actualizing an innovative vision, Boulder’s funding ecosystem extends beyond capital. Accelerators and incubators play an important role in driving innovation as they bridge mentorship and funding with the particular needs of innovators. These resources have a strong historical record in generating impact for their portfolio of companies and helping innovators achieve long-term sustainability. Accelerators and incubators attract startups and support them in a way that few other peer communities can replicate.

BOULDER ECONOMIC COUNCIL

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PRIVATE INVESTMENT VENTURE CAPITAL Venture capital (VC) funding is often viewed as a metric for innovation. Over the last few decades, this form of financing has become a dominant source for young, innovative and often high-risk companies. Even so, over a fifth of current public U.S. companies have received VC funding. Though VC funding is not the only option for startups, recent studies have shown that large and growing fractions of entrepreneurs are

BOULDER-BASED VENTURE CAPITAL FIRMS

purposefully choosing VC financing. As noted n a 2015 study conducted by Stanford Graduate School of Business, “These entrepreneurs think VC financing is the best way to grow their companies. That makes it clear that VC is an important part of the innovation ecosystem and has helped some of the world’s most successful companies to grow.”

2017-2018 BOULDER VENTURE CAPITAL DEAL HIGHLIGHTS Year

Company

Amount Raised

2017-18

Somalogic

$200,000,000

2017

Sphero

$35,400,000

2017

TeamSnap

$25,000,000

2017

Muse Bio

$23,000,000

2017

Congruex

$20,000,000

01

Blackhorn Ventures

02

Black Lab Sports

03

Blue Note Ventures

04

Boulder Food Group

05

Boulder Ventures

2017

Jump Cloud

$20,000,000

06

Foundry Group

2017

Canvas Technology

$15,000,000

07

Greenmont Capital Partners

2018

minuteKey

$83,000,000

08

High Country Venture

2018

Inscripta

$55,500,000

09

MergeLane Venture Fund

2018

ArcherDX

35,000,000

10

Sunrise Strategic Partners

11

Tahoma Ventures

12

Techstars

13

Vision Ridge Partners

Source: PwC; CB Insights

Boulder companies had an estimated $444 million in VC funding in 2017 or $4,111.60 per capita. Somalogic recorded the largest deal in 2017 with $161 million. An additional $39 million was invested in 2018.

VENTURE CAPITAL FUNDING: BOULDER & COLORADO 2012-2017 ($ M)

Since 2012, 41% of all venture capital funding in Colorado was invested in Boulder startups.

Source: CB Insights.

Note: Includes convertible notes, seed/angel, VC, private equity, growth equity, grant, other venture capital, and other.

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BOULDER INNOVATION VENTURE

2017 VENTURE CAPITAL INVESTMENT (CITY) In 2017, Boulder ranked second in a per capita comparison of total VC funding among the peer communities.

City

2017 Financing Deals

2017 Total ($M)

Per Capita Financing ($)

San Francisco

797

$12,580

$14,445

City of Boulder

65

$448

$4,141

Boston

173

$2,221

$3,301

Seattle

138

$1,548

$2,197

Boulder County

78

$485

$1,505

San Jose

72

$1,064

$1,037

Austin

121

$770

$812

Denver

69

$448

$701

Portland

30

$209

$326

Source: CB Insights

FORM D FILINGS Form D is used to file a notice of an exempt offering of securities with the SEC. They filings represent private investment in startups and small businesses. A greater number of Form D filings within a geographic location is a direct indication of a high level of startup and funding activity, key characteristics of innovation communities.

FORM D FILINGS PER 1,000 RESIDENTS (CITY)

In a population-normalized basis, Boulder had the secondhighest measure among all peer cities, completing 1.12 Form D filings per 1,000 residents.

PER CAPITA SUMMARY OF DEPOSITS AS OF JUNE 30, 2017

BANKING The Federal Deposit Insurance Corporation publishes bank deposits by institution and branch. This data is one metric of an area’s wealth. The City of Boulder and the Boulder MSA recorded $6.2 billion and $10.1 billion, respectively, in deposits as of June 30, 2017.

When normalizing the data for the size of each MSA, the City of Boulder and Boulder County rise to fourth and fifth, respectively, with $58,165 and $31,280 in deposits per capita.

BOULDER ECONOMIC COUNCIL

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ENTREPRENEURIAL SUPPORT Although access to funding is essential in actualizing an innovative vision, Boulder’s innovation ecosystem extends beyond capital. Accelerators, incubators and co-working spaces play an important role in driving innovation as they bridge mentorship and funding with the particular needs of entrepreneurs.

ACCELERATORS

BOULDER ACCELERATORS

Startup accelerators support early-stage, growth-driven companies through education, mentorship and often, financing. Startups enter accelerators for a fixed-period of time and as part of a cohort of companies. The accelerator experience is a process of intense and rapid education aimed at accelerating the life cycle of young innovative companies, compressing years’ worth of learning-by-doing into just a few months.

As discussed in a 2016 Harvard Business Review article, the four distinct factors that make accelerators unique: they are fixed-term, cohort-based and mentorship-driven and they culminate in a graduation or “demo day.”

Entrepreneurs are attracted to Boulder’s accelerator community as they have strong historical performance in generating impact for their portfolio companies and achieving long-term sustainability.

01

Black Lab Sports

02

Boomtown

03

CanopyBoulder

04

Catalyze CU

05

Cognizant Accelerator

06

Galvanize

07

Innosphere

08

Madelife

09

MergeLane

10

Tech Venture Accelerator

11

Techstars

12

Unreasonable Group

CO-WORKING SPACES A co-working space is a work environment in which an office is shared by a multitude of individuals on a membership basis who are independently employed and working on different projects. One reason these spaces were initially created was to support young companies that either could not afford their own office or they simply did not have enough employees to justify having their own space.

These spaces provided a social element for many independent professionals and entrepreneurs who did not have an office to work in every day. Cross-functionality “collisions,” networking and office flexibility are a few of the additional benefits that have attracted a wide range professionals to the coworking spaces. The availability of co-working spaces to support young companies is critical to fostering an environment of innovation as they provide unique opportunities for entrepreneurs.

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BOULDER CO-WORKING SPACES

01

Boulder Digital Arts

10

PivotDesk

02

Campworks

11

Regus

03

Candyshop Crea ve Offices

12

The Riverside

04

Galvanize

13

Roost

05

Impact Hub Boulder

14

The Studio

06

Industrious Office

15

Tatooine

07

Intelligent Office

16

TEEM

08

Niche Workspaces

09

Office Evolu on

BOULDER INNOVATION VENTURE

BOULDER ECONOMIC COUNCIL

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BOULDER INNOVATION VENTURE

PLACE Boulder’s picturesque physical environment and desirable quality of life attract artists, scientists, celebrated chefs, competitive athletes, students, performers and other innovators who bring their own unique qualities to the culture of the community. Boulder is often chosen by “creatives” as their preferred place to live even though many of them could live and work almost anywhere in the world.

WHY IS THIS IS IMPORTANT? A few years ago, well-known economist Richard Florida revised his seminal analysis of where the “creative class” lives in America. He defined the creative class to include professionals in the fields of science and technology, design and architecture, arts, entertainment and media and healthcare, law, management and education. In Florida’s The Rise of the Creative Class, Revisited, Boulder ranked first in the United States on the author’s “Creativity Index” measuring technology, talent and tolerance in regions throughout the

country. This is important because innovation ecosystems evolve as creative professionals are drawn to them by the “quality of place” they offer and because centers of innovation fuel economic vitality in everything from science to the arts to advanced technologies. A desirable quality of place gives Boulder businesses a competitive advantage in attracting and retaining talent.

PHYSICAL ENVIRONMENT Boulder offers advantages to innovators as a small community cradled in a striking natural setting at the foot of the Rocky Mountains. As a smaller, compact city, Boulder encourages an unusually collaborative community of people with diverse backgrounds, educations, capabilities and interests. Nestled in the Boulder Valley of the Rockies’ foothills, local residents take inspiration from miles and miles of undeveloped open spaces abundant with wildlife.

There are 37 hiking trailheads on city open space and mountain parks, providing access to 151 miles of trails, including multi-use paths. An additional 110 miles of hiking and biking trails on Boulder County open space complete the region’s portfolio. Boulder is famous for its bicycling amenities.

The city has over 300 miles of dedicated bikeways, including bike lanes on streets, contra-flow lanes and paved shoulders.

One of the main attractions of living and working in the City of Boulder and Boulder County is access to one of the most extensive open space environments and hiking and biking trail networks in the nation.

In 1967, Boulder voters took the innovative step to tax themselves to purchase land and preserve it as undeveloped open space. Boulder was the first city in the nation to approve an open space tax of this kind. Since then the city has acquired over 70 square miles of open space, nearly three times the 25 square miles of developed land within the city limits. Boulder County has an additional 65,000 acres of publicly owned open space, plus another 40,000 acres of easements on private land.

BOULDER ECONOMIC COUNCIL

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ARTS AND CULTURE ARTS The “City of Boulder Community Cultural Plan” produced by the city’s Office of Arts and Culture extols Boulder as an “outstanding place to be creative.” Boulder’s “environment of inspiration” attracts creative people with an “innate drive of innovation and self-reliance that fosters a marketplace for cultural organizations, venues and businesses.”

Boulder was named one of America’s Most Artistic Towns by Expedia, which noted that “the art coming from Boulder is fresh and experimental.” In the “Working Artists in America” series published by the National Endowment for the Arts, the Boulder metro area was recently highlighted as one of the leading regions in the United States where artists cluster as a percentage of the workforce.

Source: National Endowment for the Arts

Boulder’s arts and cultural amenities are a major attraction for over 3 million tourists who visit the city each year. They are drawn to an exciting variety of galleries, performing arts, museums and special events.

PERFORMING ARTS

MUSEUMS

Boulder Chamber Orchestra

Museum of Boulder

Boulder Philharmonic Orchestra

Boulder Museum of Contemporary Art (BMoCA)

Boulder Symphony Orchestra

University of Colorado Heritage Center

Boulder Ballet

University of Colorado Art Museum

SPECIAL EVENTS

15th Street Gallery

Art & Soul Gallery Colorado Chautauqua Events Series

University of Colorado Natural History Museum Lemon Sponge Cake Contemporary Ballet

Carnegie Branch Library for Local History Museum

ART GALLERIES

Smith-Klein Gallery Mary Williams Fine Arts

Colorado MahlerFest

Earthwood Gallery Canyon Theater and Gallery

Dairy Center for the Arts

Phil Lewis Art

Upstart Crow Theater

Rembrandt Yard Art Gallery

Boulder Ensemble Theater Company Boulder Dinner Theater Nomad Theatre

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BOULDER INNOVATION VENTURE

FOOD AND RESTAURANTS When Bon Appetit named Boulder “America’s Foodiest Town”, it cited the number of innovative food companies, top-tier restaurants and chefs and one of the best farmers' markets in the country.

Among its peer innovation communities, Boulder has the most restaurants per capita. It also tied for first among its peers for the most coffee shops and other nonalcoholic beverage establishments.

RESTAURANTS PER 1,000 RESIDENTS (MSA) The City of Boulder has 352 establishments classified as food services and drinking places. These establishments include full-service restaurants, limited-service eating places, special food services and alcoholic beverage drinking places.

Some of the best-known, fine dining restaurants – and chefs – in Boulder include:

COFFEE SHOPS PER 1,000 RESIDENTS (MSA) Coffee shops include bakeries as well as other similar non-alcoholic businesses. Boulder MSA is tied with the Seattle-Tacoma-Bellevue, MSA for the highest concentration of coffee shops among peer MSAs, averaging 0.37 establishments per 1,000 residents.

Boulder is routinely acknowledged by champions of natural and organic food as one of the places where the “health food” movement first took root. Boulder innovators Mo Siegel (Celestial Seasonings), Steve Demos (White Wave), Hanna Kroeger (Hanna’s Herb Shop), Hass Hassan (Alfalfa’s Market), Mark Retzloff (Alfalfa’s, Aurora Organic Dairy) and Doug Greene (New Hope Natural Media), among others, were pioneers in the new industry.

BOULDER ECONOMIC COUNCIL

In 2005, natural products industry leaders in Boulder joined with the City of Boulder and the Boulder Economic Council of the Boulder Chamber to found Naturally Boulder. The first industry association of its kind in the United States, the mission of Naturally Boulder is: “To nurture conscious growth, leadership and innovation in the Colorado natural products community.” The organization is thriving today, and its support model attracts interest from cities across the nation.

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HOUSING, SCHOOLS, HEALTHCARE AND TRANSPORTATION HOUSING For many innovators and entrepreneurs, workforce housing affordability is one of the most important criteria in evaluating where to live and work. Numerous studies and reports have been published about how rising housing prices drive up the cost of living in many regions of the country.

Boulder and all of its peer communities have experienced significant and sustained housing price appreciation since the Great Recession. Some have seen appreciation periodically at levels higher than any other regions of the country. Data reported by Zillow and the National Association of Realtors show that all but one of the metro areas studied for this report ranked among the 25 most expensive housing markets in the United States.

MEDIAN SINGLE FAMILY AND MULTI-FAMILY HOME SALES PRICE (MSA)(Q1, 2018) City

Median Metro Area Value

Annual Change

San Jose

$1,252,400

26%

San Francisco

$933,300

10%

Boulder

$504,000

4%

Seattle

$481,700

14%

Boston

$444,600

7%

Denver

$391,300

9%

Portland

$377,800

6%

Austin

$281,600

6%

Raleigh

$236,700

6%

United States

$210,200

8%

Source: Zillow

Measured by median metro area home values, Boulder has the third highest housing costs among its peer communities, behind the San Jose and San Francisco regions and just ahead of Seattle and Boston.

Source: YourBoulder

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BOULDER INNOVATION VENTURE

SCHOOLS The Boulder Valley School District is a highly rated, public school district headquartered in Boulder and serving residents in a 500-square-mile region that includes nine major urban, suburban and rural communities from the peaks of the Continental Divide to the suburbs of Denver. Fifty-six schools in the district serve 31,000 students, with a student-teacher ratio of 19 to 1. The Boulder Valley School District (BVSD) consistently ranks among the top three districts in Colorado – often as the top district – as measured by state and national academic rankings.

The other major school district in the Boulder MSA is the St. Vrain Valley School District (SVVSD), which incorporates 53 schools serving 31,000 students in communities surrounding

the Boulder Valley School District. SVVSD is a leader in innovative educational programming. It won one of the original Investing in Innovation (i3) grants under the U.S. Department of Education’s Race to the Top program and was one of 16 recipients of a follow-on grant awarded to create a $16.6 million Innovation Center. The SVVSD Innovation Center prepares students for successful STEM careers by partnering with industry to provide real-world work experiences, fostering analytical and problem-solving skills, encouraging entrepreneurial ambitions and creating mentorships with experts in the STEM fields.

SCHOOL DISTRICT GRADUATION RATES Comparing graduation data for the largest districts in each of the peer regions studied in this report, Boulder Valley Schools had the highest graduation rate and St. Vrain Valley School district ranked sixth highest.

School District

Average Graduation Rates

Enrollment

Boulder Valley School District

92%

30,900

Austin Independent School District

86%

84,600

San Jose Unified School District

86%

32,900

Wake County (Raleigh) Public School System

86%

155,800

San Francisco Unified School District

84%

58,400

St. Vrain Valley School District

82%

31,000

Seattle Public Schools

77%

52,800

Portland Public Schools

74%

47,800

Boston Public Schools

71%

54,300

Denver Public Schools

65%

88,800

Source: Niche

In recent rankings by United States News & World Report of the best high schools in the nation, 13 schools in BVSD were recognized, two as Gold Medal Schools and one, Peak to Peak Charter School, was ranked 1st in Colorado and 34th in the nation. Eleven high schools in the SVVSD were recognized, including one as a Gold Medal School.

Boulder Valley School District voters recently approved a $576.5 million educational innovation bond issue. BVSD is using the bond proceeds to rethink the design of school buildings and the district’s approach to education. Working with Fielding Nair International, known around the world for creating innovative learning environments, the district is infusing educational innovation into every bond project and creating learning spaces that support success for all students.

BOULDER ECONOMIC COUNCIL

Among other innovations, the Boulder Valley School District is a leader in the national healthy school lunch movement.

Championed by Chef Ann Cooper, director of BVSD’s Food Services Department, the district’s School Food Project is earning accolades from across the country.

Within St. Vrain Valley Schools, a model Pathways in Technology Early College High School (P-TECH) program was started at Skyline High School. P-TECH allows students to earn a high school diploma as well an Associate of Applied Science Degree in Computer Information Systems (CIS) at no cost from Front Range Community College. This our-six year program includes significant internship and mentorship opportunities with IBM, giving students a head start in their career after completing the program.

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HEALTHCARE Publications as diverse as National Geographic, Forbes and Gallup often cite Boulder as one of the healthiest, fittest and happiest cities in the United States – often ranking Boulder first on their lists. These and other similar accolades reflect residents’ predilection for the outdoors, sports and recreation and healthy foods.

“Happiest Ci es in the U.S.� – Na onal Geographic

A recent assessment of healthcare quality in the Boulder MSA by Livability noted that the quality of care in the region was ranked among the highest of all regions in Colorado. The report emphasized that in addition to access to affordable, quality “Highest Well Being Communi es� doctors and hospitals, a region’s health includes the choices residents make to lower — Gallup-Healthways Well-Being Index their personal health risk. Key indicators used to measure the healthy lifestyle in the 01 Boulder Community Health

Boulder MSA include: • 91% of adults report an active lifestyle as a result of02a leisure timeCounty physical activity Boulder AIDS Project • 87% of adults report healthy weight with a Body Mass Index (BMI) of less than 30 03 Blue Sky Bridge • 89% of adults in the region do not smoke “Healthiest Ci es in the U.S.â€?

04 Boulder County Health Department • 86% of adults have health insurance (Source: Livability, Health and HealthCare in Boulder, CO)

05

– Niche

Boulder County Mental Health Center

06

Boulder Medical Center

07

Boulder Valley Women’s Health Center

Centerafor Peopleofwith Disabili es “America’s i ’ Fi Fi est Ci es�

The health and well being of Boulder residents is cared08 for through network – Forbes regional health organizations: 09 Clinica Family Health – People’s Clinic

10 Dental Aid 01 Boulder Community Health 02

Boulder County AIDS Project

11

Grillo Health Informa on Center

03

Blue Sky Bridge

12

Longmont United Hospital

04

Boulder County Health Department

13

Mental Health Partners

05

Boulder County Mental Health Center

14

Planned Parenthood

06

Boulder Medical Center

15

Salud Family Health Centers

07

Boulder Valley Women’s Health Center

16

TRU Community Care Hospice

08

Center for People with Disabili es

17

University of Colorado Health

09

Clinica Family Health – People’s Clinic

(Source: Network Health Organization Index) DentalCommunity Aid 10 Boulder

11

Grillo Health Informa on Center

12

Longmont United Hospital

13

Mental Health Partners

FITNESS AND RECREATIONAL SPORT CENTERS PER 1,000 RESIDENTS (MSA)

14 ThePlanned Parenthood City of Boulder 15 hasSalud 33 establishments Family Health Centers classified as Fitness Care and Hospice 16 TRU Community Recreational Sports 17 Centers.

University of Colorado Health The Boulder MSA has 0.21 fitness centers per 1,000 residents. This statistic reinforces Boulder’s health- and wellnessoriented culture.

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BOULDER INNOVATION VENTURE

TRANSPORTATION The City of Boulder Transportation Division has worked for three decades to create an innovative and balanced transportation system that enhances Boulder’s quality of place.

Recent city data indicates that 64% of all trips by Boulder residents are made by bus, bike or foot, while 38% of Boulder’s workforce commutes by alternative modes.

Boulder has built a nationally recognized pedestrian-friendly community, earning the Gold-level Walk Friendly Community designation. The pedestrian-only Pearl Street Mall and an extensive network of multi-use paths and hiking trails are Boulder icons that attract people from all over the country and the world.

Boulder’s 300 miles of dedicated bikeways include on-street bike lanes, contra-flow bike lanes, designated bike routes, paved shoulders, multi-use paths and soft-surface paths. There are 80 bike and pedestrian only underpasses allowing for uninterrupted travel throughout the city.

A majority of Boulder's Community Transit Network of highquality, frequent and convenient transit routes that connect local destinations and neighborhoods and regional destinations is operated by the Regional Transportation District (RTD) with select routes operated by Boulder-headquartered Via Mobility Services.

Among the peer communities studied in this report, transportation systems and mobility are critical factors in regional economic vitality. Population growth and migration between states and regions create demands on transportation networks that impact a community’s quality of life and attractiveness to innovators. According to the annual Global Traffic Scorecard produced by INRIX, Boulder had the second lowest level of traffic congestion among its peer communities.

TRAFFIC CONGESTION (CITY) City

Congestion Rank Among 300 Cities in United States

Average Peak Hours in Congestion

Driving Time Spent in Congestion

Raleigh

83

16

8%

Boulder

52

24

10%

Denver

21

36

8%

Austin

14

43

11%

Portland

12

50

11%

Seattle

9

55

12%

Boston

7

60

14%

San Francisco

3

79

12%

Source: INRIX

BOULDER ECONOMIC COUNCIL

Boulder drivers spent only 10% of total driving time in congestion and at number 52, ranked the second lowest of peer communities.

Drivers spent the most overall driving time in congestion in Boston.

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BOULDER INNOVATION VENTURE

BOULDER INNOVATION VENTURE

SPONSORS

Berg Hill Greenleaf Ruscitti LLP is a full service law firm offering a wide range of legal services to both corporate clients and individuals alike. Since our founding in 2001 with 5 attorneys, we have grown to 40 attorneys specializing in a variety of different practice areas. The attorneys at BHGR offer a depth of experience and expertise in the law related to business, construction, criminal defense, the environment and water, litigation, public entities, real estate, trusts and estates. In addition to our main Boulder office, we also have an office in Denver to better reach and serve our clients along the Front Range and across the country. Each of our attorneys brings a unique perspective and high level of expertise to our team, giving us the resources to solve even the most complex of legal problems, including yours.

Black Lab Sports is a sports-focused venture firm, entrepreneur educator and go-to-market platform. We invest in founders that are team players and innovators, bold, humble and calm. We believe the best ideas come from doers and thinkers. In the sports industry, that’s players, coaches and fans.

Black Lab Sports operates out of a 22,000 square-foot renovated warehouse: The Lab. It’s a world-class innovation center designed to launch the next great sports brands. Think of it as a combination of a high-tech accelerator, sports science laboratory, distribution center and maker-focused co-working space.

Our sport is business and we play to win.

BFG is a venture capital firm that seeks partnerships with early stage food and beverage consumer product companies. We work alongside exceptional entrepreneurs to ensure the business is able to deliver sustainable growth and outperform its competitors.

In addition to providing our portfolio companies with capital, BFG provides teams with the advice most needed to make critical decisions and maximize opportunities. This advice spans operational strategy, tactical marketing, channel development organizational design and capital planning.

BOULDER ECONOMIC COUNCIL

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SPONSORS

Boulder Ventures is a venture capital firm, investing in two distinct geographies, leveraging decades long relationships with proven entrepreneurs and focused on high-potential, early-state companies in information technology and life sciences.

The City of Boulder is following a sustainable path to economic development by adopting strategies that promote innovation, entrepreneurship and a positive business climate while enhancing community character and preserving environmental quality. The city’s Community Vitality department provides assistance to businesses and manages economic initiatives, commercial districts and parking services. For more information, visit www.

BoulderColorado.gov/business.

The Boulder Economic Council (BEC), the economic development arm of the Boulder Chamber, is a private, nonprofit leadership group of prominent business and community executives dedicated to Boulder’s economic prosperity.

The BEC’s priorities are to support existing businesses in Boulder’s key industries and to advocate for a business environment that continues to nurture primary employers and industries.

Foundry Group is a venture capital firm focused on making earlystage technology investments, participating in select growth rounds and identifying and supporting the next generation of venture fund managers.

Our passion is working alongside entrepreneurs to give birth to new technologies and to build those technologies into industryleading companies. We also seek to leverage our experience and relationships as fund managers to help new and existing venture firms create industry leading investment businesses. We’re centrally located in Boulder, CO, but we invest in companies and funds across North America.

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BOULDER INNOVATION VENTURE

SPONSORS

Gibbons-White, Inc. has remained a leader in commercial real estate for over 30 years.

The depth of experience and high level of team oriented professional service at Gibbons-White, Inc. is unsurpassed in Boulder County. We develop and maintain long standing client relationships through our commitment to provide superior services and a passion for what we do.

We are a co-founder of the Commercial Brokers of Boulder in association with the Denver Metro Area Board of Realtors. We are a part of the national Certified Commercial Investment Member network.

As a member of Property Search, LoopNet and Costar, Gibbons-White, Inc. is able to disseminate and obtain comprehensive information locally and nationally utilizing state of the art information databases.

Founded in 1991 as one of the nation’s first technology public relations firms, MAPRagency has shephered public relations, marketing and creative services as technology and media have evolved. Based in the nation’s heart of new technology and business innovation in Boulder, we guide and serve clients in a world where buyers, sellers and investors connect through a mix of traditional media, social networks and word-of-mouth. By combining the messaging with the math, we’re multiplying our clients’ media coverage through an integrated fusion of PR, content, social media, SEO, web design and creative. This is the new open agency of the future, where a highly qualified team achieves collaborative resonance within markets, news and trends across the country and around the world.

Zayo Group (NYSE: ZAYO) provides communications infrastructure services, including fiber and bandwidth connectivity, colocation and cloud infrastructure to the world’s leading businesses. Customers include wireless and wireline carriers, media and content companies and finance, healthcare and other large enterprises. Zayo’s 122,000-mile network in North America and Europe includes extensive metro connectivity to thousands of buildings and data centers. In addition to high-capacity dark fiber, wavelength, Ethernet and other connectivity solutions, Zayo offers colocation and cloud infrastructure in its carrier-neutral data centers. Dan Caruso serves as the company’s chairman and CEO. The Caruso Foundation was created by Dan and Cindy Caruso to build multi-generational support for organizations focused on entrepreneurship and improving the health and knowledge of individuals worldwide. Their vision is to promote and grow the entrepreneurial community. This includes promoting the development of business startups, creating entrepreneurs and supporting provocative and innovative endeavors, both in terms of breakthrough ideas and human progress as well as building the associated infrastructure for sustained growth.

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GLOSSARY OF TERMS

Combined Statistical Area—A geographic entity consisting of two or more adjacent Core Based Statistical Areas with employment interchange measures of at least 15.

Employment Interchange Measure—A measure of ties between two adjacent entities. The employment interchange measure is the sum of the percentage of workers living in the smaller entity who work in the larger entity and the percentage of employment in the smaller entity that is accounted for by workers who reside in the larger entity.

Firms and Establishments—Establishments represent single location businesses, whereas firms can represent multiple locations.

Form D Filings — Form D is used to file a notice of an exempt offering of securities with the SEC. The federal securities laws require the notice to be filed by companies that have sold securities without registration under the Securities Act of 1933 in an offering made under Rule 504 or 506 of Regulation D or Section 4(a)(5) of the Securities Act. Regulation D allows companies to issue debt and equity to accredited investors without undergoing the cost of a typical SEC registration.

Industries—Based on the North American Industry Classification System (NAICS), businesses are classified based on their primary function.

Location Quotient (LQ)—A location quotient is a useful tool for analyzing an industry’s clustering in a given geographical area. Literally, this is an industry’s relative concentration in one area compared to the same industry in another area. For the purpose of looking at employment statistics in the city of Boulder and Boulder County, the relative concentration is calculated in comparison to the nation. A location quotient of 1.0 indicates the study area has the same concentration of industry employment as the nation. A location quotient of >1.0 indicates the study area has a greater concentration of industry employment compared to the nation and a location quotient of <1.0 indicates the area has a smaller industry concentration than the nation.

Metropolitan Statistical Area—A Core Based Statistical Area associated with at least one urbanized area that has a population of at least 50,000. The Metropolitan Statistical Area comprises the central county or counties containing the core, plus adjacent outlying counties having a high degree of social and economic integration with the central county or counties as measured through commuting. Locally, the Boulder MSA comprises Boulder County and the Denver-Aurora-Lakewood MSA comprises Adams, Arapahoe, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson and Park counties.

North American Industry Classification System (NAICS) -- The North American Industry Classification System (NAICS) is the “standard used by Federal statistical agencies in classifying business establishments for the purpose of collecting, analyzing and publishing statistical data related to the United States business economy.” NAICS replaced the Standard Industrial Classification (SIC) system and includes Canada, Mexico and the United States. NAICS was adopted in 1997 and the transition from SIC to NAICS occurred gradually over the following years. The NAICS system is reviewed and revised every five years to economic changes, with the most recent iteration occurring in 2017.

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BOULDER INNOVATION VENTURE

GLOSSARY OF TERMS

Proprietors—A business without any paid employees (i.e., self-employed).

The following excerpt from the United States Census Bureau provides NAICS definitions:

Sector 11 – Agriculture, Forestry, Fishing and Hunting Sector 21 – Mining, Quarrying and Oil and Gas Extraction

The Agriculture, Forestry, Fishing and Hunting sector comprises establishments primarily engaged in growing crops, raising animals, harvesting timber and harvesting fish and other animals from a farm, ranch or their natural habitats.

The Mining, Quarrying and Oil and Gas Extraction sector comprises establishments that extract naturally occurring mineral solids, such as coal and ores; liquid minerals, such as crude petroleum; and gases, such as natural gas. The term mining is used in the broad sense to include quarrying, well operations, beneficiating (e.g., crushing, screening, washing and flotation) and other preparation customarily performed at the mine site or as a part of mining activity.

The Utilities sector comprises establishments engaged in the provision of the following utility services: electric power, natural gas, steam supply, water supply and sewage removal. Within this sector, the specific activities associated with the utility services provided vary by utility: electric Sector 22 – power includes generation, transmission and distribution; natural gas includes distribution; steam Utilities supply includes provision and/or distribution; water supply includes treatment and distribution; and sewage removal includes collection, treatment and disposal of waste through sewer systems and sewage treatment facilities.

The Construction sector comprises establishments primarily engaged in the construction of Sector 23 – buildings or engineering projects (e.g., highways and utility systems). Establishments primarily Construction engaged in the preparation of sites for new construction and establishments primarily engaged in subdividing land for sale as building sites also are included in this sector.

The Manufacturing sector comprises establishments engaged in the mechanical, physical Sector 31-33 – or chemical transformation of materials, substances or components into new products. The Manufacturing assembling of component parts of manufactured products is considered manufacturing, except in cases where the activity is appropriately classified in Sector 23, Construction.

The Wholesale Trade sector comprises establishments engaged in wholesaling merchandise, Sector 42 – generally without transformation and rendering services incidental to the sale of merchandise. The Wholesale Trade merchandise described in this sector includes the outputs of agriculture, mining, manufacturing and certain information industries, such as publishing.

Sector 44-45 – The Retail Trade sector comprises establishments engaged in retailing merchandise, generally Retail Trade without transformation and rendering services incidental to the sale of merchandise.

The Transportation and Warehousing sector includes industries providing transportation of Sector 48-49 – passengers and cargo, warehousing and storage for goods, scenic and sightseeing transportation Transportation and support activities related to modes of transportation. Establishments in these industries use and transportation equipment or transportation related facilities as a productive asset. The type of Warehousing equipment depends on the mode of transportation. The modes of transportation are air, rail, water, road and pipeline.

Sector 51 – Information

The Information sector comprises establishments engaged in the following processes: (a) producing and distributing information and cultural products, (b) providing the means to transmit or distribute these products as well as data or communications and (c) processing data.

BOULDER ECONOMIC COUNCIL

46

GLOSSARY OF TERMS

Sector 52 – Finance and Insurance

The Finance and Insurance sector comprises establishments primarily engaged in financial transactions (transactions involving the creation, liquidation or change in ownership of financial assets) and/or in facilitating financial transactions.

The Real Estate and Rental and Leasing sector comprises establishments primarily engaged in renting, leasing or otherwise allowing the use of tangible or intangible assets and establishments providing related services. The major portion of this sector comprises establishments that rent, lease or otherwise allow the use of their own assets by others. The assets may be tangible, as is the case of real estate and equipment or intangible, as is the case with patents and trademarks.

The Professional, Scientific and Technical Services sector comprises establishments that specialize in performing professional, scientific and technical activities for others. These activities require Sector 54 – a high degree of expertise and training. The establishments in this sector specialize according to Professional, expertise and provide these services to clients in a variety of industries and, in some cases, to Scientific and households. Activities performed include: legal advice and representation; accounting, bookkeeping Technical and payroll services; architectural, engineering and specialized design services; computer services; Services consulting services; research services; advertising services; photographic services; translation and interpretation services; veterinary services; and other professional, scientific and technical services.

The Management of Companies and Enterprises sector comprises (1) establishments that hold the securities of (or other equity interests in) companies and enterprises for the purpose of owning a Sector 55 – controlling interest or influencing management decisions or (2) establishments (except government Management of establishments) that administer, oversee and manage establishments of the company or enterprise Companies and and that normally undertake the strategic or organizational planning and decision-making role of Enterprises the company or enterprise. Establishments that administer, oversee and manage may hold the securities of the company or enterprise.

The Administrative and Support and Waste Management and Remediation Services sector Sector 56 – comprises establishments performing routine support activities for the day-to-day operations of Administrative other organizations. These essential activities are often undertaken in-house by establishments in and Support many sectors of the economy. The establishments in this sector specialize in one or more of these and Waste support activities and provide these services to clients in a variety of industries and, in some cases, Management to households. Activities performed include: office administration, hiring and placing of personnel, and Remediation document preparation and similar clerical services, solicitation, collection, security and surveillance Services services, cleaning and waste disposal services.

The Educational Services sector comprises establishments that provide instruction and training in Sector 61 – a wide variety of subjects. This instruction and training is provided by specialized establishments, Educational such as schools, colleges, universities and training centers. These establishments may be privately Services owned and operated for profit or not for profit or they may be publicly owned and operated. They may also offer food and/or accommodation services to their students.

The Healthcare and Social Assistance sector comprises establishments providing healthcare and social assistance for individuals. The sector includes both healthcare and social assistance because it is sometimes difficult to distinguish between the boundaries of these two activities. The industries in this sector are arranged on a continuum starting with establishments providing medical care Sector 62 – exclusively, continuing with those providing healthcare and social assistance and finally finishing Healthcare and with those providing only social assistance. Establishments in this sector deliver services by trained Social Assistance professionals. All industries in the sector share this commonality of process, namely, labor inputs of health practitioners or social workers with the requisite expertise. Many of the industries in the sector are defined based on the educational degree held by the practitioners included in the industry.

Sector 53 – Real Estate and Rental and Leasing

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BOULDER INNOVATION VENTURE

GLOSSARY OF TERMS

The Arts, Entertainment and Recreation sector includes a wide range of establishments that operate facilities or provide services to meet varied cultural, entertainment and recreational interests of Sector 71 – Arts, their patrons. This sector comprises (1) establishments that are involved in producing, promoting or Entertainment participating in live performances, events or exhibits intended for public viewing; (2) establishments and Recreation that preserve and exhibit objects and sites of historical, cultural or educational interest; and (3) establishments that operate facilities or provide services that enable patrons to participate in recreational activities or pursue amusement, hobby and leisure-time interests.

Sector 72 – Accommodation and Food Services

The Accommodation and Food Services sector comprises establishments providing customers with lodging and/or preparing meals, snacks and beverages for immediate consumption. The sector includes both accommodation and food services establishments because the two activities are often combined at the same establishment.

Sector 81 – Other Services

The Other Services (except Public Administration) sector comprises establishments engaged in providing services not specifically provided for elsewhere in the classification system.

Establishments in this sector are primarily engaged in activities such as equipment and machinery repairing, promoting or administering religious activities, grantmaking, advocacy and providing drycleaning and laundry services, personal care services, death care services, pet care services, photofinishing services, temporary parking services and dating services.

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ACKNOWLEDGMENTS Thank you to Business Research Division at the University of Colorado Boulder, whose collaboration made this project possible.

Serving Colorado since 1915, the Business Research Division (BRD) of the Leeds School of Business, University of Colorado Boulder, provides economic and demographic information needed by businesses, governments and nonprofit organizations.

Specializing in economic and fiscal analysis, market research, and customized research projects, the division also produces the longest-running annual forecast of the stateâ&#x20AC;&#x2122;s economy.

To learn more about the Business Research Division of the Leeds School of Business:

Dr. Richard Wobbekind, Executive Director Brian Lewandowski, Associate Director leeds.colorado.edu/brd brdinfo@colorado.edu

Thank you to the many focus group participants who gratuitously gave their time, sharing their expertise and origin stories.

Focus Group Participants: Andrew Vissers, Medtronic Brad Bernthal, CU Boulder Carlotta Mast, New Hope Darren Dasburg, AstraZeneca Dave DuPont, TeamSnap Doyle Albee, MAPR Eric Gricus, Innosphere Erica Dawson, InDevR Giovanni Ruscitti, BHGR Heather Terenzio, Techtonic Group LLC Heather Bulk, Special Aerospace Services Jennifer Pinsonneault, City of Boulder JP O'Brien, Black Lab Sports Kate Tallman, Somalogic Kate Brown, Boulder Organic Kevin Standish, Envision Energy Kyle Lefkoff, Boulder Ventures Lynda Gibbons, Gibbons White Matt Gorr, First Western Trust Mike Gazarik, Ball Aerospace Monica Lang, Zayo Group Russ Forester, Celestial Seasonings Scott Rayder, UCAR Scott Green, Google Steve Savage, 1908 Brands Tom Spier, Boulder Food Group

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BOULDER INNOVATION VENTURE

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United States Census Bureau, 2015 American Community Survey 5-Year Estimates, https://factfinder.census.gov, November 2, 2017.

United States Census Bureau, 2016 American Community Survey 1-Year Estimates, https://factfinder.census.gov October 26, 2017.

United States Census Bureau, American Community Survey, https://factfinder.census.gov/faces/tableservices, October 26, 2017.

United States Census Bureau, Business Dynamics Statistics, https://www.census.gov/ces/dataproducts/bds/ October 26, 2017.

United States Census Bureau, North American Industry Classification System. https://www.census.gov/eos/www/naics/, retrieved December 28, 2017.

United States Patent and Trademark Office and United States Census Bureau, https://www.uspto.gov/,https://www.census.gov/ data.html, October 26, 2017.

United States Patent and Trademark Office, https://www.uspto.gov/, October 26, 2017.

University of Colorado Research and Innovation Office, Innovation Ecosystem 2016-2017, November 2, 2017.

University of Colorado, Old Main, https://www.colorado.edu/, October 26, 2017.

Your Boulder, Boulder Neighborhood Guide: Chatauqua, http://yourboulder.com/boulder-neighborhood-chautauqua/, accessed April 12, 2018 Zillow Research, Home Values, https://www.zillow.com/research/data/, accessed April 10, 2018

BOULDER ECONOMIC COUNCIL

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WE BUILD COMMUNITY THROUGH BUSINESS 303.442.1044 | 2440 Pearl St. Boulder, CO 80302 | info@boulderchamber.com | boulderchamber.com | bouldereconomiccouncil.org