Issuu

2018

ANNUAL REPORT

A Message from the Founder + Executive Director Dear Friends, It is with great pleasure that we provide an organizational update of our progress in 2018 (FY18). You may know that Build Institute was founded in 2012, and that for years we worked under the umbrella of D:hive and Downtown Detroit Partnership. In 2018, we established ourselves as an independent nonprofit. It is a very exciting time to be working with entrepreneurs in Detroit. We are seeing a skyrocketing need for programming that provides meaningful support, leadership and community to local small business owners – not exclusively but most often women and/or people of color.

BUILD Institute 2018 Annual Report

For our team, 2018 was about building the infrastructure and planning for Build’s new hub for inclusive entrepreneurship – launching in Summer 2019 in Detroit’s Corktown neighborhood. It will be a revolutionary, state-of-the-art space for Detroit-area microenterprises and “Main Street” entrepreneurs – for the nontech part of the city’s vibrant entrepreneurial ecosystem. Read on to learn more about our planning for The Corner, our programs, impact and extended community. Our graduates and partners inspire us daily, and looking ahead, we are gearing up to partner with a growing number of entrepreneurs, organizations, teachers and facilitators, community leaders and municipalities. We are incredibly grateful for the support that makes our graduates’ successes possible.

Sincerely,

April Boyle

Founder + Executive Director, Build Institute

Build Instituteâ€™s mission is to help people bring ideas to life & grow businesses by providing access to education, resources and a supportive community.

buildinstitute.org hello@buildinstitute.org (313) 265-3590 @StartWithBuild

Current Landscape

he greatest untapped asset in our communities is people with ideas. However, for decades we have underinvested in our residents and left many doors closed as a result. And while there are thoughtful, inspiring and muchneeded efforts in Detroit and cities facing similar challenges, we worry these recovery efforts are not enough to provide all residents with a lasting, improved quality of life.

CityLab reported in February 2017, “Though Detroit is back from the brink of bankruptcy, the reality isn’t as rosy as the popular narrative suggests. . .within the city recovery has been highly uneven, resulting in increasing inequality. Detroit is growing downtown, but struggling beyond it, and is two very different cities – one white and privileged, the other black and deprived.

In October 2017, the Institute for Policy Studies published the report I Dream Detroit: The Voice and Vision of Women of Color on Detroit’s Future: • 70+ percent of survey respondents - thought leaders and strategists - do not feel included in Detroit’s economic development plans. • Only half of respondents reported earning a living wage. • Despite high levels of education among survey respondents – 34 percent holding undergraduate degrees, 30 percent earning advanced degrees – economic insecurity remains a significant risk. In 2017, the U.S. Senate Committee on Small Business & Entrepreneurship conducted a study to examine the gender gap at a time when women have never been more consequential to the future of our economy. They identified three primary challenges:

BUILD Institute 2018 Annual Report

• Few role models and a lack of mentors that contribute to the perception that entrepreneurship is a male-only endeavor. • A gender pay gap that hurts the ability of women to be successful entrepreneurs. • Unequal access to startup funding and financing streams that leave women with fewer credit options and a small portion of venture funding.

In the past 20 years the national growth rate for women-owned businesses has eclipsed averages — increasing by a staggering 141 percent compared to 44 percent for all businesses.

In 1990, there were four million womenowned businesses in the United States. Today, there are more than 11 million women-owned businesses – representing 39 percent of all firms.

About Build Institute

uild Institute is an incubator and champion of local talent, removing barriers to small business ownership that often exist for women and people of color. We strive for a welcoming, supportive, accessible and inclusive community that inspires entrepreneurs to push past challenges and achieve their goals. MISSION & VALUES

We serve microenterprises and “Main Street” entrepreneurs in the metro Detroit area. This includes the non-tech part of the city’s vibrant entrepreneurial ecosystem, which often includes residents of Detroit neighborhoods that can be overlooked (i.e., away from Midtown and Downtown) or who don’t have a significant family or financial cushion to fall back on in launching their businesses.

Build aims to shift the current paradigm that says small business success must be big and immediate; that taking risks outside of tech (on retail, services, the arts) is bad; and that investing in women or people of color comes with a lower ROI. We aim to lower the barriers between Detroiters and small business ownership, and to serve as an example to other communities in and outside of Michigan with similar challenges and goals.

It can be scary and isolating when embarking on a new business plan or setting off independently – these challenges are often amplified for women and people of color or firsttime artisans, tradespeople, retailers and service providers. In response,

Build provides low-cost access to mentors and experts; information about financing and big-picture planning; feedback on ideas and tough love; the physical space to meet and run retail stores; and opportunities to learn and grow an entrepreneurial skillset. @StartWithBuild

In 2018, Build Institute managed two main streams of work:

1) D riving new investments in the region’s native talent to grow small businesses, particularly those run by women and people of color

2) Laying the groundwork to launch a much-needed inclusive

innovation hub for Detroit entrepreneurs at The Corner, a new development on the site of old Tigers Stadium.

In 2018, we offered the following courses and events:

Programs & Services

BUILD Institute 2018 Annual Report

6 OPEN CITY – forum and networking events for new and established entrepreneurs BUILD NEXT – ongoing educational workshops for Build alumni

BUILD BASICS – an 8-week core planning course for new and established entrepreneurs BUILD SOCIAL IMPACT– training, development and coaching for social entrepreneurs CO.STARTERS – a 9-week business development program for aspiring entrepreneurs GROW ROUNDTABLES – a series of meetings over a 3-month period matching experienced CEOs with start-ups

BUILD BAZAAR – a rotating “Mom and Pop” marketplace featuring a range of local vendors BUILD PILOT – a collaboration with Opportunity Detroit for retail pop-up space

DETROIT SOUP – a public, microgranting dinner celebrating and supporting creative projects in Detroit

KIVA DETROIT - we are KIVA’s Detroit partner, and as of late 2018 have facilitated and supported $600,000+ in KIVA loans in the Detroit area

PLANNING FOR OUR MOVE INTO THE CORNER

big part of our work in 2018 included strategic planning, establishing new partnerships, fundraising and breaking ground at The Corner. We met regularly with developers, architects, the city, lawyers, financial advisors, current students and alumni, our board, funders and staff to set a vision for the new space and to build the foundation for a launch of a new, inclusive entrepreneurfocused “hub” that will open in 2019. By 2022, Build Institute aims to have served at least 4,000 Detroit-area aspiring and experienced entrepreneurs via courses, workshops, panel discussions, mentoring, retail space, equitable loans/financing and other small business support.

Our new home at The Corner will provide: • Co-working, meeting and event space, a pop-up retail area, and classrooms – at no- or low-cost to local entrepreneurs and residents.

• Classes for novice and experienced entrepreneurs. • Public space for community events and meetings. • Physical commitment to activating talent and improving access to opportunity.

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Differentiators

T BUILD Institute 2018 Annual Report

he entrepreneurship ecosystem in Detroit is relatively strong, and we have earned a reputation as fighters, creators and innovators. Build Institute in particular is a feeder organization to other entrepreneurial support organizations in the ecosystem, including TechTown Retail Bootcamp, KIVA Detroit, ProsperUs, FoodLab Detroit, Motor City Match, NEIdeas, Hatch Detroit, Detroit Soup and many others. This matters a lot, and is part of what sets us apart, because it really does take a village to open a small business in Detroit. We are mindful about where and when we host classes and offer resources. We meet folks exactly where they are and offer meaningful support and coaching. We are ambitious, but we also play the long game. It can sometimes take several different support orgs and resources to get the entrepreneur and idea ready for launch. Success can happen in sometimes small, incremental steps â€“ all while building confidence and the network of support to sustain both founder and enterprise.

• Our motto is ‘For Entrepreneurs By Entrepreneurs.’ All Build Institute classes are taught by experienced current or former business owners. All Build Institute speakers are subject matter experts and entrepreneurs in their own right. • We focus on neighborhoods first and meet entrepreneurs where they live and work. • Build Institute programs are diverse and span numerous stages of development. Entrepreneurs can get the help they want when they want it, and establish a long-term relationship with the Build Institute alumni community.

• We offer a “Pay What You Can” fee structure for Build courses and will soon launch a “Pay It Forward” fund so once established, we have another way established entrepreneurs can support early-stage, novice entrepreneurs. • We provide market research and sales opportunities to Build alumni via workshops, continuing education programs, and the Build Institute Bazaar. • Build Institute produces a monthly newsletter that features news clips of Build alumni and event information and general support. We keep a private Facebook page that encourages authentic dialogue, meaningful resources and other updates. • We host Open City events that connect grads with the public and encourage new levels of collaboration and exposure.

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2018 Highlights 10

BECOMING A 501C3

Build Institute was founded in 2012 with a budget of $50,000 and one parttime staff member. We have grown fast and smart, and 2018 is our first year as an independent 501c3. We have a standalone mission, board of directors, strategic plan, programs and space, and have started out of the gates strong.

83 % women 63 % people of color 85 % from moderateand low-income communities Students from 100+ zip codes in greater Detroit

500 new businesses launched since 2012

BUILD Institute 2018 Annual Report

1,500 jobs created since 2012 RESULTS + IMPACT

We have served 1,700 entrepreneurs since 2012 and managed annual growth in enrollment of 25 %.

14,000+ people impacted each month through Build alumni businesses, products and service 90 % of alumni feel more confident in â€¨business knowledge

77 % of alumni were connected to new resources

50 % of alumni collaborate with one another on their projects and businesses

SMALL BUSINESS FUNDING

Since December 2013, Build Institute has partnered with KIVA to endorse 53 small businesses and raise $359,450 in microloans, all with a 90 percent repayment rate. Build Institute also offers support to borrowers who aren’t formally endorsed: By the end of 2018, Build had supported $615,950 in total volume of KIVA loans in the Detroit area. Build Institute prepares graduates for other funding opportunity and contests including Comerica Hatch Detroit, Motor City Match, NEIDEAS, Sam Adams Pitch and Detroit Demo Days. This has resulted in $2+ million dollars raised in capital for Build graduate businesses. BUILD CITIES

DETROIT SOUP

In 2018, Build Institute took over management of Detroit SOUP, a microgranting dinner that celebrates and supports creative projects in Detroit. For a donation of $5-$10 attendees receive soup, salad, bread and a vote and hear four presentations ranging from art, urban agriculture, social justice, social 11 entrepreneurs, education, technology and more. Each presenter has four minutes to share their idea and answer four questions from the audience. At the end of the night, Build Institute counts the ballots and the winner goes home with all of the money raised to carry out their project. Winners come back to a future SOUP dinner to report their project’s progress.

In 2018, Build Institute partnered with the City of Ferndale and the City of Pontiac to provide a series of classes and activities for aspiring and experienced entrepreneurs and small businesses.

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BUILD ALUMNI SPOTLIGHT

BUILD Institute 2018 Annual Report

DETROIT IS THE NEW BLACK Detroit is the New Black (DITNB) is a lifestyle brand and downtown storefront. It started with a t-shirt, but has come a a brand, experience and feeling. DITNB has become a destination in Downtown Detroit’s reemerging retail district along Woodward Avenue. Roslyn Karamoko, the founder and CEO, used her background in corporate retail buying to develop a business inspired by Detroit’s fashion history. Her emphasis is on really clean, sophisticated and cosmopolitan designs that are also accessible. A core principle is inclusivity and uplifting Detroit’s entrepreneurial community. The store has become a space for small brands and artists to have a retail platform.

HUNT & NOYER Hunt & Noyer is a custom furniture and woodworking business located in Detroit’s New Center. They produce original furniture and housewares crafted from American hardwoods and made with reclaimed, repurposed, and upcycled materials. The work focuses on original furniture designs, custom commissions for commercial spaces, and a line of home and men’s accessories. Before taking Build Basics in the spring of 2014, Kyle Huntoon, a fourth-generation woodworker, was already operating his business, but the class got the business organized and helped him find the right price points for his objects. In the future he would like to move to a larger space and purchase machinery that will allow the business to grow in scale.

DETROIT VEGAN SOUL Kirsten Ussery and partner, Erika Boyd, started Detroit Vegan Soul to help people live healthier lives by providing greattasting, high quality & nutritious vegan food that appeals to all taste buds, while at the same time doing their part to support a sustainable earth. It began as a catering and meal delivery service and now has two locations in Detroit. Build Institute helped Kirsten by providing peer support and handson exercises necessary for her to determine whether their vegan business idea was viable, and then put together a business plan. This crew is expanding soon to a second location in Detroit’s Grandmont Rosedale community.

MAMA COO’S BOUTIQUE Mama Coo’s is a charming upscale resale and vintage boutique, which also carries unique handmade artisan pieces that fit every budget. Lana Rodriguez, a native to Southwest Detroit, wanted to keep her roots local and settled upon a fantastic building in the heart of Corktown. Through Motor City Match she was able to bypass common financial constraints to purchase wholesale items from local artists and makers, thus helping to stabilize the local economy. Continuing to give back to the community through her business, she often participates in events and fashion shows that assist local women and teens.

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BUILD Institute 2018 Annual Report

Board of Directors April Anderson

Melissa Joy

Pastry Chef And Co-Owner, Good Cakes And Bakes

Founder And Financial Planner, Pearl Planning

Jeff Aronoff

Delphia Simmons

Attorney, Miller Canfield

Hassan Bazzi

Board Chair, Chief Strategy And Learning Officer, Coalition On Temporary Shelter (Cots) Board Co-Chair

Director Of Regional Opportunities, ACCESS

Kimberly Watts

Toni Beaubien

Director Of Development, Henry Ford Learning Institute

Head Of Finance, Floyd, Inc.

ADVISORY BOARD

Erin R. Bonahoom, Founding Member, Canvas Legal Board Co-Chair

Amy Emberling Managing Partner, Zingerman’s Bakehouse

Carla Walker President And Ceo, Walker-Miller Energy Services, Llc

Regina Ann Campbell Chief Program Officer, Epicenter Memphis Tennessee

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Foundation + Corporate Supporters

BUILD Institute 2018 Annual Report

$100,000+ Quicken Loans

William Davidson Foundation

Ralph C. Wilson, Jr. Foundation

New Economy Initiative

$20,000 - $99,000 Ford Motor Fund Bank of America

Michigan Economic Development Corporation Skillman Foundation

$5,000 - $19,999 Chemical Bank PNC Bank Fifth Third Bank

Max & Marjorie Fisher Foundation The Boston Beer Co.

$100 - $4,999 Hudson Webber Foundation

Scripps Howard

Zingermanâ€™s

Detroit Kombucha

Corktown Community Fund

Team Bourgeois Bohemian

Level One

Envision Brand Marketing

Individual Supporters $20,000+ Emily & Henry Ford, III

$1,000 - $10,000 Anonymous Amy Emberling April Anderson Jeffrey Aronoff Hassan Bazzi Antonia Beaubien Jay Bonahoom Erin Bonahoom Melissa Joy Roy Lamphier Philip Rivera Kerry Ann Rockquemore & William Haupricht Delphia Simmons Carla Walker-Miller Kimberly Watts Andrea Williams Regina Ann Campbell

$150-$999

Anonymous Thomas Barlow Kelly Boyle William & Elizabeth Boyle Matt Brooks Richard Chang Nicholas Clark Phillip Cooley Patricia & Ronald Cooley Andrea Coravos Becky Davenport Jennifer Davis-Papa Cari Easterday-Kar Allyson Fortune Patricia Glaza Stacey Grant Ann Hubbard David Jaffe Daniel Kennedy William Kingsley Dana Kyles Nicole Mangis Douglas McElroy

David Miller Jeanette Pierce Tricia Ruby Ralph Raciti Christianne Sims Jeffrey Stoltman Patrick Thompson Elizabeth Tintinalli Thanh Tran Amanda Van Dusen Carla Walker-Miller Monica Wheat Caron B. Willinger

$5-$149

Anonymous Fathi Abdelsalam Ursula Adams Evan Adams Joseph S. Ajlouny, Jr. Sassa Akervall Ojas Akolkar Paul Andrews Dina Bankole Angela Barbash Kara Bardram Rosemary Bayer Kyle Bazzy Khamisi Benford Joseph Benghauser Adam Berk Sabin Blake Patrick Blasio Chris Blauvelt Laurie Bolach Jessica Bondalapati Nicole Bopp Lauren Bouchard William Bowen Matthew Bower Autumn Bowman April Boyle Bill Boyle James Boyle Christopher Boyle Ann Boyle Liebler Amanda Brewington Elaine Butcher Amy Butler Michelle Carlisle

Tim Castaneda Aubrey Caston Agee Julie Clare Christina Collie Brandon Colvin Christina Coravos Daniel Cousino Amy Cox Bennie Curry Peggy Curry Jenifer Daniels Trish Dewald Michelle DiMercurio Rachele Downs Karen Dybis Dailena Easley Alison Emerick Bonnie Fahoome Benjamin Falik Dvid Feeny Jill Ferrari Yevgenya Feterovich Jordan Field Rita Fields Renee Fluker Chenita Gary Keiley Gaston John Gatti Carolyn Geck Mike Gentile Liz Giffels Deveri Gifford Jane Gijsbers Dan Gilmartin Dominique Golden George Gomez Alysia Green Jennifer Grieco Burch Nancy Grose Richard Grundy Nefretiti Harris Marcus Harris Tim Heaphy Emily Heintz Laura Hill J. Kelly Hoey Christoph Hutchinson Julie Hyde-Edwards Christina Iulianelli Carina Jackson

Carlise Jones Maureen Kearns Aaron Keast Noam Kimelman Robin Kinnie Kirsten Kozel Patrick Kruse Sara Kruse Robert Kruse Angie Ladetto Maria LaLonde Peggy Lampman Stacy Lauwers Amanda Lewan Arthur Liebler Thomas Lozser Angela Lugo-Thomas Paul Mack Laura Mackiewicz Christianne Malone Stephanie Marsden Bruce Martin Leah Martin Tom Martin Jacqueline Martin Alexandra Mathis Ian McCain Kimberley Meinert Tene Mello Christopher Mikula Michael Mikula Rahul Mitra Justin Morelock Elph Morgan Linda Morrell Rishi Moudgil Mary Mullen Ballard Tom Nardone Claire Nelson Yolanda Nichelle Bethany Nixon Danielle North Kwaku Osei Mark Ostach Blessing Oyeleye Nikki Pardo Danielle Parker Anita Partyka Jason Paulateer Rachel Perschetz

Amy Peterson Caitlyn Pisarski Jacquise Purifoy Jenifer Ransweiler Kueber Lisette Reed Mary Riegle Chris Rizik Colleen Robar Bridget Russo Jessica Scherr Greg Scherr Alexis Schilf Paul Schutt Marc Schwartz Shannon Sclafani Theodore Serbinski David Silver James Simon Michelle Smart Jacob Smith Mary Stacy Ned Staebler Brandon Suchan William Sugg Shaquana Suggs Ryan Sullivan Marc Swanson Stefan Sysko Kathryn Sznewajs Paul Thomas Celia Thomas Angela Topacio Donna Tope Tracey Tumpkin Carlotta Tutt Holloway Ebrahim Varachia Janice Victor Gail von Staden April Wagner Beata Weiermiller Rhonda Welsh Gregory White Faruma Williams Tonia Williams Melissa Wilson Michael Wilson Ryan Wrobleski Jordan Yagiela

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Statement of Financial Position As of December 31, 2018

ASSETS 18

Cash and cash equivalents Pledges receivable, net Prepaid expenses Total assets

$ 698,972 $ 1,145,605 $ 5,252 $ 1,849,829

LIABILITIES AND NET ASSETS LIABILITIES

Accounts payable Accrued expenses Total liabilities

$ 3,330 $ 6,735 $ 10,065

BUILD Institute 2018 Annual Report

NET ASSETS

Without donor restrictions With donor restrictions Total net assets

$ 776,658 $ 1,063,106 $ 1,839,764

Total liabilities and net assets

$ 1,849,829

*As is standard practice, Build Institute logs the entirety of funding pledges the year they are made, even if they are to be dispersed over a series of years. A significant portion of this revenue is required to be spent in future years, across 2018, 2019, 2020 and 2021.

Statement of Activities Year ended December 31, 2018

REVENUES AND OTHER SUPPORT

Contributions Foundation contributions Government grants Program fees Special events Other income Interest income

$ 117,832 $ 828,786 $ 144,450 $ 174,771 $ 3,782 $ 7,620 $ 972

Total revenues and other support $ 1,278,213 Net assets released from restrictions -

$ 43,085 $ 928,771 $ 91,250 - - - -

$ 160,917 $ 1,757,557 $ 235,700 $ 174,771 $ 3,782 $ 7,620 $ 972

$ 1,063,106 $ 2,341,319 - -

EXPENSES

Program services Management and general Fundraising Total expenses

$ 498,209 $ 112,323 $ 105,523 $ 716,055

- - - -

$ 498,209 $ 112,323 $ 105,523 $ 716,055

CHANGE IN NET ASSETS

$ 562,158

$ 1,063,106 $ 1,625,264

NET ASSETS - Beginning of year

$ 214,500

NET ASSETS - End of year

$ 776,658

$ 1,063,106 $ 1,839,764

$ 214,500

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GREAT IDEAS START WITH BUILD

buildinstitute.org hello@buildinstitute.org (313) 265-3590 1620 MICHIGAN AVENUE SUITE 120 DETROIT, MI 48216