Arch Grants is a non-profit that accelerates economic development
in St. Louis through entrepreneurship. This is venture philanthropy.
WHAT? Global Startup Competition • Over 250 volunteers • Extensive outreach for applicants • 43 states • 77 countries • HBCU and women’s colleges • National and international top-tier universities
Equity-free money • 65 startups funded since 2012 – $3.6M • 60 still operating
Industry-agnostic • • • • • • • •
Advanced Manufacturing Agriculture/Food Bio Tech/Medical Devices/Healthcare Consumer Products Energy Design/Fashion Tech/High Tech Both B2B, B2C, Products and Services
WHY ENTREPRENEURSHIP?
Importance of Entrepreneurship Where do the jobs come from?
Yas Motoyama, Ph.D. Director of Research and Policy Ewing Marion Kauffman Foundation With Karren Watkins Washington University in St. Louis
$55,000,000 $50,000,000 $45,000,000 $40,000,000 $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $0
250 200 150 100
50 0
12/31/12 6/30/13 Jobs
Jobs
$$$
Arch Grants Recipients Growth in Jobs, Revenue, and Follow-On Capital
12/31/13
6/30/14
12/31/14 6/30/15
55
84
156
188
234
275
Revenue
$857K
$2.52M
$4.68M
$8.97M
$14.74M
$18.94
Capital
$822K
$3.37M
$11.67M
$25.04M
$45.85M
$51.07
Jobs represent jobs retained in Missouri as of the date listed. Capital indicates investment, grant earnings, and competition winnings. Revenue and Capital represent the cumulative totals of all 65 companies funded since 2012, as of 8/27/2015.
WHY NOW?
Inventors Association of St. Louis Incorporates
SCORE St. Louis Chapter Chartered
1965
1968
1971
1974
1977
1980
1983
St. Louis University Launched the Center for Entrepreneurship
1986
Missouri Venture Forum Launched
Last updated September 18, 2015
Missouri Technology Corporation Chartered by Missouri's General Assembly
Advantage Capital Partners Formed
1992
The American Assembly at Columbia University Publishes Community Capitalism: Rediscovering the Markets of America’s Urban Neighborhoods
1993
1994 Entrepreneurs' Organization St. Louis Chapter Founded
1995
1996
1997
1998
Grace Hill Women's Business Center Opened
1999
The Center for Emerging Technologies Launched
The Danforth Plant Science Center Opened
Last updated September 18, 2015
St. Louis Business Diversity Initiative Launched
Washington University Launched the Skandalaris Center for Entrepreneurial Studies in Partnership with the Kauffman Foundation
The Coalition for Plant & Life Sciences Formed (BioSTL) Prolog Ventures Formed
BioGenerator Launched
Ascension Ventures Formed
2000
2001
Nidus Center for Scientific Enterprise Opened
2002
2003
Cortex Opens
RiverVest Launched St. Louis Inner City Competitive Assessment and Strategy Project Report Issued
Last updated September 18, 2015
2004
St. Louis Bioscience Inclusion Initiative Launched
Vectis Fund of Funds Closed Youth Bridge & Skandalaris Center Launched SEIC
ITEN Launched
St. Louis Arch Angels Formed
St. Louis Product Management Group Begins Meeting
Innovate Venture Mentoring Services Launched (Gateway VMS)
Billiken Angels Network Formed
2005
2006
VetBiz Launched in St. Louis
2007
2008
Innovate St. Louis Launched (birthed ITEN & Gateway VMS)
2009
The Mission Center L3C Formed Startup Challenge Launched Duree Center for Entrepreneurship at Lindenwood Opened Nebula Co-Working Opens on Cherokee BioGenerator Labs Opened
2010
Ag Innovation Showcase Launched
Startup Connection Launched BRDG Park Opened
Startup Missouri Launched
LaunchCode Founded
St. Louis Makes Founded
Accelerate St. Louis Launched
Lab1500 Opened
Startup Voodoo Launched
Boeing Ventures Launched
WEST Launched
Enstitute Opens St. Louis Office
Cultivation Capital Formed Life Sciences Fund
YieldLab AgTech Accelerator Launched
HIVE44 Opened
2011
2012
Monsanto Growth Ventures Formed StartLouis Launched
Cultivation Capital Formed Tech Fund
TREX Launched
Independent Youth Launched
Capital Innovators Launched MTC Launches IDEA Funds Startup Weekend Launched TECH-44 Launched CET launched the Bio Entrepreneur Development (BED) Program for now known as Square One (SQ1)
Helix Center Opened ProductCamp Launched in St. Louis Venture STL Launched St. Louis Mosaic Project Launched Regional Entrepreneurship Study Conducted
2013 One Million Cups Comes to Nine Network 630 FinTech Accelerator Launched St. Louis Economic Development Partnership Formed Regional Entrepreneurship Initiative Report Published iSelect Mutual Fund Launched St. Louis Product Management Group Incorporates as a Nonprofit
2014
Popular Mechanics Names St. Louis #1 Startup City in America!!! St. Charles Old Post Office Accelerator Opens
2015
Cambridge Innovation Center Opens Claim Co-Working Space Opens Pipeline Expands to include St. Louis Prosper Accelerator Launched in St. Louis Rise of the Rest Tour Comes to St. Louis TechArtista Opened Startup VooDoo Launched
Industrious Opens St. Louis Makes Launches
ALIVE Magazine launches EQ Innovation Fridays Launched Emerging Venture Leaders Summit Hosted by Cultivation Capital Stadia Sports Tech Accelerator Launches
Venture CafĂŠ Launches UMSL Opens ED Collabitat Venture for America Opens St. Louis Office Women 2.0 Comes to St. Louis KWS Opens North American Headquarters in STL
Last updated September 18, 2015
2016 Fashion Fund Accelerator Coming TechShop Coming to St. Louis
OPPORTUNITIES & CHALLENGES
ECOSYSTEM Capital • •
•
•
• • •
Angel Networks Arch Angels Billiken Angels Venture Capital + Advantage Capital Partners Cultivation Capital iSelect Fund Lewis & Clark Fund Rivervest Accelerators Arch Grants BioGenerator Capital Innovators Prosper Women Entrepreneurs SixThirty Stadia Yield Lab Corporate Venture Works + Boeing Emerson Monsanto Nestle Purina State Missouri Technology Corp. Regional HelixFund Startup Challenge Innovation Districts BRDG Park @ Danforth Plant Science Center CORTEX/CIC/CET Downtown
Support
Space • • • • • • • • • • • • • • •
BEGIN New Venture Center BRDG Park CIC/CET Claim Cortex Grace Hill Women’s Business Center Hive44 Industrious ITE@UMSL Nebula OPO – St. Charles TechArtista The Mission Center L3C TREX VentureWorks
• •
• •
• • • • • • • •
Angel Vendors Bioscience & Entrepreneurial Inclusion Initiative Gateway VMS Grace Hill Women’s Business Center Innovation Fridays ITEN Missouri Venture Forum Prosper Institute St. Louis Makes SCORE Venture Café Vetbiz
IMMIGRATION in STL • St. Louis has less than 5% foreign-born living in our region. But we know that foreign-born in the St. Louis region are 60 percent more likely than native born to start a business. • St. Louis ranks in the top 20 metropolitan areas for population, but 42nd in terms of immigrants. • In the Midwest, Indianapolis, Knoxville, Louisville and Nashville have doubled their immigrant populations over the past decade.
• Other cities like Baltimore, Cincinnati, Columbus, Memphis and Richmond have also nearly doubled the number of foreign born from 2000 to 2010.
The St. Louis Mosaic Project was launched in 2012 to ensure St. Louis is the fastest growing U.S. metropolitan area for immigration by 2020.
Data is from Immigration Recommendations for St. Louis Region: How can we Jump-Start Growth? Jack Strauss, Saint Louis University Mark Tranel, University of Missouri-St. Louis Jeremy Caddel Washington University in St. Louis
IMMIGRATION in USA •
Immigrant entrepreneurs are responsible for the formation of 40% of all Fortune 500 companies including GE, Ford, Google, and Yahoo. Those companies are responsible for employing 10 million employees and have $4.2 trillion in annual revenue.*
•
Visa options for entrepreneurs vary by person and options available are based on intent regarding residency. • Temporary Residency: E2, L, O, concurrent H1B and concurrent F1/OPT • Permanent Residency: EB1, EB2, EB5
In the near-term, we need business leaders and elected officials to support the efforts of the Department of Homeland Security to better define what constitutes a national interest, and expansion of the use of “parole”. *Partnership for a New American Economy/Immigrant Learning Center
Special thanks to atty. Doreen D. Dodson Senior Partner with Polsinelli
MENTORSHIP • Mentors must be truly qualified. • Great mentors embrace “Lean Method & Lean Principles”. • The best mentors are like an “umbrella” charged with protecting their mentee from wasting time. • Assume every founder-hour is worth $1,000 in equity value. • Great mentors admit when they don’t know something.
Excerpted from blog post by John Ramey - Silicon Valley entrepreneur, investor, mentor, and product nerd. Founder & CEO of isocket (acq by $RUBI). Created $5B market segment.
A S TA R T U P R E I N V E N T I O N
www.acceleratestlouis.org