08.28.2015
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NOTES FROM THE BEST TALKS YOU MISSED
upstatebusinessjournal.com
>> One of the major risks taken by UCAN investors was the decision to assist Proterra with locating its headquarters and manufacturing plant in Greenville. Shortly after the move, the company’s hedge fund manager was convicted of a Ponzi scheme, unbeknownst to Proterra. Community leaders quickly coalesced and UCAN, with the help of SCRA, provided bridge financing to keep the company alive until June 2011, when Kleiner Perkins Caufield & Byers invested $30 million in Proterra. “It’s not something we would have typically done,” Dunbar says, but the risk paid off. Proterra has truly become one of their “rise-from-theashes stories,” or more appropriately, a home run. A BIG WIN All net job growth comes from startups, Dunbar says. “Long-term job growth comes from entrepreneurial startups. Over the long term it pays off, but early-stage capital is scarce.” To remedy this, UCAN advocated for legislation to incentivize angel investors, and after several years, the High Growth Small Business Job Creation Act finally passed in June 2013, providing angel investors with a 35 percent tax credit. “The Upstate Chamber Coalition was a leading champion for this,” notes Dunbar, who also credited many other organizations and advocates for the role they played in bringing the bill to fruition. Since the bill passed, there has been growth in qualified businesses (those qualified to accept investments that qualify for the tax credit), applications and credits approved with
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$3 million in credits awarded last year. THE FLYWHEEL EFFECT Dunbar isn’t gloating about the big wins or dwelling on the near deaths, but he is sharing the stories of the past as a way to sustain the momentum UCAN has worked so hard to build. Dunbar references the Flywheel Effect from Jim Collins’ book “Good to Great.” The theory is that while it takes great effort to turn the flywheel initially, with continued hard work, the wheel will eventually turn of its own accord from the momentum gained. He hopes to use the momentum UCAN has gained to continue improving South Carolina’s robust entrepreneurial infrastructure. He’s excited about continuing and expanding partnerships across the state with groups such as the Palmetto Angel Fund and the growing South Carolina Angel Network, which currently consists of eight groups and over 200 investors. KEEPING THE MOMENTUM UP With Dunbar at the helm, UCAN will continue turning the flywheel, swinging for the fences and cultivating the next generation of jobs and companies. But they can’t do it alone. UCAN may be ranked one of the top angel networks in the nation, but he’s made it clear that they haven’t gotten there on their own. Dunbar consistently shines the light on others and insists on the important role the community plays. “We’re blessed to live in this business community,” Dunbar says. “We may be a small state, but we’re powerful together.”
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