Northwest Ohio Community Impact Book - JumpStart

Unlocking Entrepreneurship TRANSFORMING NORTHWEST OHIO

our mission

To unlock the full potential of entrepreneurship to transform entire communities.

2

LETTER FROM RAY LEACH

3

JUMPSTART OVERVIEW

5

IMPACT BY THE NUMBERS

7

TECH STARTUPS

9

SPOTLIGHT

11

SMALL BUSINESS

13

SPOTLIGHT

15

CORPORATE PARTNERS

17

SPOTLIGHT

19

RESEARCH INSTITUTIONS

21

SPOTLIGHT

23

COLLABORATION DRIVES INNOVATION

25

ECOSYSTEM BUILDERS / GET INVOLVED

TRACY MOMANY QUINTIN RILEY DAVID SYLVAN NASA’S GLENN RESEARCH CENTER

Entrepreneurship Transforms Our Entire Community.

care systems, and foundations, helping them harness their entrepreneurial spirit and advance their impact.

These players are key to driving real, equitable, and measurable economic transformation.

JumpStart believes in the power of entrepreneurship and aspires to achieve an economic transformation benefiting everyone in our community.

Each day, we approach our work with the goal of advancing lifesaving and industry-changing innovation among technology startups as well as small, established businesses, which are vital to the economic success of our region. We also strive to foster equity in the economic opportunities available to Black, Hispanic, Latino, and womenled companies representing diverse backgrounds and experiences. While we’ve made significant progress over the last 17 years, we realize our goal of transformation transcends today’s horizon.

We’ve seen how a single entrepreneur, tech startup, or

small business owner can make a huge difference and we believe we’ll achieve far more through collaboration.

Our public, private, and philanthropic institutions need to work in unison for all to thrive.

At JumpStart, we’ve evolved our mission–to unlock the power of entrepreneurship– and expanded the ways we serve by offering meaningful capital, services, and connections. In addition to supporting tech startups and small businesses, we develop strategic partnerships with large corporations, universities, health

A collaborative community enabling innovation, commercialization, formation, maturation, and growth creates more wealth and opportunities for everyone.

Fueled by our mission, we are proud to work alongside our partners to lift the entire community.

Together, we will create the economic transformation we aspire to achieve.

ray leach

Chief Executive Officer

2

We help entrepreneurs grow, researchers commercialize and corporations innovate.

These powerful, creative relationships, when supported by our capital, services and connections, spark positive change for equitable and transformative economic impact.

We believe entrepreneurship is the heartbeat of thriving economies and communities. From business founders to corporate innovators, those who possess the entrepreneurial spirit solve challenges with fresh perspective. They take bold risks. They clear the path for entire industries. We’re here to help turn ideas into scalable enterprises to transform the region.

3

our interconnected elements of Support CAPITAL Venture capital investment, grant funding and friendly lending opportunities for high-potential tech startups and small businesses.

SERVICES Technical assistance, education and programs that help business owners work smart to grow and accelerate.

CONNECTIONS An extensive network of resources–from advisors to corporate clients and investors–who help entrepreneurs start and scale.

people at the center of change Our teams are uniquely positioned to support four client groups for mutually beneficial outcomes.

tech startups

small businesses

Founders who are in the early stages of launching viable technologies to solve market problems.

Owners who create jobs with communitybased products and services.

Corporate partners

research institutions

Leadership teams within corporations who identify and cultivate inventive opportunities to keep business competitive.

Scientists and thought leaders who invent and test new technologies.

4

Transformation by the numbers Over the years, JumpStart has invested thousands of hours and millions of dollars in entrepreneurial initiatives.

The entrepreneurs we’ve supported have created a ripple effect within their communities, building vibrant storefronts, creating new jobs, and contributing tax dollars.

3,250+

tech startups Engaged

348k+

advising hours provided to tech startups

625+

technologies sourced and screened for corporate partners by jumpstart

1,780+

small businesses engaged

14,700+

advising hours provided to small businesses

175+

research institution technologies assessed for commercial potential by jumpstart

5

Data reflects economic impact of tech startups and small businesses supported by JumpStart and its many ecosystem partners.

Unless otherwise noted, all data is cumulative from 2010 through June 2021.

economic outcomes

$9.1B+ in Economic Impact

Generated by tech Startups and Small Businesses supported

by JumpStart and its partners from 2010 to 2020.

$5.3B+ $580m+ $2.3b+ $530M+ Revenue generated by tech startups

Revenue generated by Black and Latino-led companies

$182M+ $2b+ Revenue generated by small businesses

Revenue generated by women-led companies

tech startup wages

tech startup state and local taxes

$52m+ $32M+ small business wages

small business state and local taxes 6

tech startups Accelerating the Region’s Top Tech Startups Building a fully-fledged, financially-stable tech enterprise isn’t easy. Early-stage entrepreneurs often require funding to develop a viable product and gain momentum.

Investment alone does not ensure successful outcomes.

That’s why we help unlock the potential of earlystage tech startups with both venture capital and the services and connections they need to advance.

Our advisors have helped hundreds of tech founders build scalable businesses by guiding them through the venture capital path. Our process helps founders eliminate errors, reduce risk and increase viability.

The Burton D. Morgan Mentoring Program matches tech founders with experienced mentors, who help guide critical decisionmaking in the fast-paced and competitive culture of entrepreneurship.

In addition to 1:1 advising, we offer deepdive workshops and accelerator programs to help entrepreneurs avoid pitfalls. We also make connections through networking and

peer-to-peer learning opportunities.

1,050+ 9,750+ tech startups engaged

by JumpStart and its partners in 2020

Jobs created & retained by tech startups in 2020

The Ohio Department of Development’s Ohio Third Frontier supports early-stage capital and technical services through matched grant funding programs.

7

venture capital by the numbers current as of june 2021

$64M+

invested into 134 tech startups

diversity in portfolio leadership

venture Capital JumpStart invests in high-potential, early-stage tech companies, deploying a stage appropriate continuum of capital to companies as they navigate the critical Seed, Pre-seed and Series A phases of development.

We invest in passionate founders, surrounding them with resources to accelerate their startups, making investments go further, faster.

JumpStart provides companies with access to critical resources in areas like operations, marketing, finance and talent recruitment. These resources become an extension of the founder’s team.

With more than 130 investments, we understand the unique challenges startups face and bring expertise to help entrepreneurs navigate growth.

Our fund performance is among the top quartile of pre-seed and seed funds nationwide.

35%* 13.5% 21.6%* 10%

women-led companies women-founded companies Black or Latino-led companies** Black or Latino-founded companies***

$140M+

under management across four funds

$2B+

in exit value generated by portfolio companies

$1.4B+

in follow-on funding raised by portfolio companies

*Executive leadership teams include Black, Latino or female representation **17.9% Black-led companies / 3.7% Latino-led companies ***8.3% Black-founded companies / 1.7% Latino-founded companies

8

READY TO SCALE Guardian Medical Advancing sterile technology for medical teams

Support from jumpstart • Early-stage Capital Funding • Peer-to-peer and Business Support Connections

tracy Momany 9

Having network connections like JumpStart is incredibly helpful because you don’t know what you don’t know.”

hear from tracy in her own words jumpstar tinc.org/tracy

Launching a medical packaging startup isn’t easy, even when you’re a 30-year veteran like Tracy Momany. When Guardian Medical got off the ground as a joint venture between a plastic packaging enterprise and a prominent orthopedic surgeon, Tracy was ready for the challenge.

Drawing from the expertise of two established companies, Guardian Medical entered the market to solve a nagging surgical pain point: sterile packaging for medical implants.

Their market-changing innovation gives surgeons

easy and immediate access to sterilized devices during implant procedures, reducing physician stress and improving patient experience.

JumpStart lightened the load, providing capital and critical technical support to help Tracy chart the path to venture investment.

Tracy had the leadership experience and drive to get the new venture off the ground.

She had access to engineering, production and medical expertise, but as a young startup they weren’t armed with the technical services or venture capital connections needed to scale. Until she connected with JumpStart.

Advisors worked with Tracy to identify funding sources and polish her pitch, ultimately helping her secure the capital she needed to scale.

With funding in place and her first VC round under the belt, Tracy is ready to take Guardian Medical to the next level.

10

small businesses Helping Small Businesses Take Big Steps Forward When small businesses succeed, big things happen. Thriving companies create vibrant communities, generate jobs and boost economic vitality. That’s why we offer capital, services and connections to accelerate the growth of local small businesses and our small business ecosystem.

Our door is open to businesses of all types.

We’re committed to the success of Black, Latino and women-owned businesses. We partner with other small business support organizations to make entrepreneurship accessible to everyone including historically-underestimated individuals.

Based on business objectives, we guide entrepreneurs to the resources that deliver the greatest value to their businesses – and bottom lines.

11

Services and connections for Every Stage We have a program to suit every entrepreneur’s needs. Our instructors and advisors challenge business owners to adopt a growth mindset, pushing them to take calculated risks and advance.

Shared resources and collaboration are at the heart of our small business programs.

JumpStart is part of the Business Growth Collaborative (BGC), a collective of Toledo-area business development organizations committed to helping entrepreneurs connect with the resources they need to get to the next level.

Pathways to Capital Our small business services come with the added benefit of access to funding, in the form of grants, loans and referrals. Our Impact program has deployed more than $400,000 in grant dollars to graduates.

small business impact program

We also guide qualified entrepreneurs to business-friendly lending programs without the obstacles imposed by traditional banking institutions.

In this intensive, 12-week program, each cohort receives industry-specific mentoring with a special emphasis on financial projections and capital pitches.

impact program by the numbers

The program culminates in a competition where participants pitch for a chance to receive up to $10,000 in grant funding.

KeyBank and other contributors have provided generous financial support to bring this program to life.

Entrepreneurs not yet ready for the Impact Program can take advantage of mentoring, workshops and other programming to grow their burgeoning businesses. The relationships sparked with JumpStart transcend our walls and last a lifetime.

100+

companies have participated in the Program to date

70% 81%

women-owned businesses Black or Latino-owned businesses

12

PLANNING FOR GROWTH Legendary Carpet Care+ Bringing a variety of tailored cleaning solutions to Northwest Ohio

Support from jumpstart • Impact Program Participant • Small Business Impact Loan • Peer-to-peer and Business Support Connections

quintin riley 13

Knowing how to strategically plan, how to do projections. Those things have helped me elevate from a side hustle to an enterprise.”

hear from quintin in his own words jumpstar tinc.org/quintin

Quintin Riley is building more than a business, he’s forging a family legacy. Inspired by his mother and motivated by his wife and children, Quintin is creating a sustainable business to last generations.

His entrepreneurial journey began years ago while cleaning floors in healthcare facilities.

He quickly realized there was a large residential market in need of his expertise and began helping private clients outside of work hours. He invested in equipment and started to build his side-business into a full-scale

operation. He had the trade skills and the tools to establish his company but needed help refining his business know-how to gain traction and grow.

Quintin found the support he needed at JumpStart. The Impact Program and oneon-one advising services equipped him with the mastery he needed to tighten up his business plan and position himself for success.

In addition to advising services, Quintin was able to access grant and loan capital to

upgrade and expand. He swapped his original station wagon and steam cleaners for a commercial van and state of the art machinery, ensuring a top-quality experience for his clients.

The future of Legendary Carpet Care+ is bright. Quintin is focused on inspiring the next generation as he expands into new markets and broadens his client base. You can expect to see his family at the helm and in the office, bringing top-tier service to a growing pool of happy customers.

14

Corporate partners the Innovation Fast Track As technology accelerates, so does the pace of change.

Entrepreneurs are constantly seeking to disrupt markets by leveraging emerging technologies. As a result, large organizations are at risk of losing their competitive edge, especially if they don’t see market threats until after they’ve established traction.

To help corporations keep up, we partner with their innovation leaders to identify, access and adopt viable technology solutions that address market pain points.

We work as an extension of their teams, often sharing co-investment structures to provide the necessary capital to accelerate development and testing. Once the technology proves value inside the organization, we support expansion to new markets, ultimately generating additional revenue streams.

innovation opportunities typically originate in one of two ways:

15

“OUTSIDE IN” INNOVATION

“INSIDE OUT” INNOVATION

Once a corporation has pinpointed a market problem, we source and vet solutions developed by emerging technology businesses from around the world. We structure pilot programs and codevelopment engagements that prove market fit and deliver venture investment opportunities.

We help our corporate partners identify and prioritize the ideas generated inside their organizations. For opportunities with high-performance potential, we build roadmaps to spin out and fund these new startups. We activate our advisory services and resource connections to accelerate venture formation in support of corporate goals.

A Structured Path for market Traction Our framework applies a venture capital perspective to corporate innovation to generate competitive insights and market advantage.

The process is straightforward:

The Economic Ripple Effect While these ventures are designed to generate competitive and monetary value for our corporate partners, our region benefits as well.

As corporate innovation expands, it leads to significant increases in job growth, technology spin out companies, capital attraction and industry engagement.

•

Identify business challenges and opportunities

•

Source and prioritize innovative solutions from internal resources or emerging global tech companies

•

Produce thought leadership insights on relevant trends

•

Implement vendor/customer engagements to bring immediate operational value

•

Create return-oriented investment opportunities tied to a committed pool of capital or a corporate venture fund

16

PARTNERSHIP IN HEALTHCARE COLLABORATION FUND UH Ventures Exploring groundbreaking solutions to improve business performance and patient outcomes

combined Support • Early-stage Investing Capital • Fund Management • Investing Due Diligence

david sylvan 17

president, uh ventures

It’s the first mission I’ve had in my career where I can support a team that creates change and impacts individuals, populations and communities.”

hear from david in his own words jumpstar tinc.org/david

In his role as President of UH Ventures, David Sylvan is surrounded by some of the sharpest minds in the healthcare industry. There’s no shortage of ideas crossing his desk. Physicians, clinicians and administrators across the University Hospitals healthcare system approach his team with ready-made solutions to every day operational or patient care challenges.

Together with JumpStart as a strategic partner, David and

the UH Ventures team can assess the commercial viability of compelling inventions, and draw from a shared Healthcare Collaboration Fund to power the idea through an early-stage pilot inside the institution.

This Living Lab approach to innovation allows assumptions to be tested and technologies optimized before the opportunity is readied for launch to the broader market.

Organizations like UH Ventures are not only advantageous to the healthcare systems they serve; benefits also extend to the community.

Smart, talented tech businesses are drawn to Northeast Ohio, where they find a welcoming team of visionaries ready to fund and support meaningful nextgeneration technologies.

18

Research institutions Commercialization for Academic and Institutional Research We help research institutions explore and prioritize the commercial potential in their innovations.

Research is a critical source for discovering new technologies. From aerospace programs to healthcare systems and universities, we help researchers pursue opportunities that bring value to the markets they serve.

Not every discovery has commercial potential.

We identify opportunities with proven market value and help chart a clear path to commercialization. We then support our research and academic partners with access to connections, capital and services to help bring ideas to life in real-world applications.

930+ 19

patents held by JumpStart clients in 2020

Advancing Medical Technologies Our partnerships with ProMedica and Bon Secours Mercy Health help accelerate the growth of medical innovation across Northern Ohio. JumpStart assesses market viability through a structured venture validation program, helping to identify and drive the commercialization of high-potential healthcare technologies.

These initiatives lay the groundwork to bring big ideas from inside healthcare systems to the world, advancing medical technology and improving patient care.

20

BRING ENTREPRENEURSHIP DOWN TO EARTH NASA’s Glenn Research Center • JumpStart Strategic Partner • Participant in the Venture Validation Program

Office of Technology Incubation & Innovation 21

Glenn strives to develop cutting-edge technology, envision potential applications and find entrepreneurs and regional partners to help bring new products to market.

ADVANCING SPACE INNOVATIONS FOR TERRESTRIAL APPLICATIONS The Office of Technology Incubation and Innovation at NASA’s Glenn Research Center reviews ideas that are out of this world – literally. The office facilitates technology transfer and supports the adaptation of space exploration inventions into terrestrial applications for public benefit.

Curiously, NASA is responsible for technologies that are used by millions of people every day. Innovations like GPS, ultrasound technology, memory foam and more were first created for space applications and are now part of modern consumer life. Glenn may be an incubator of space-related inventions, but external market applications are often out of reach.

NASA partners with JumpStart and other strategic advisors to gain third-party perspective on market potential for its portfolio of patents.

Through the Venture Validation Program, JumpStart advisors conduct targeted assessments, then pair viable technologies with specialized entrepreneurs to bring the ideas to the public.

NASA’s Glenn Research Center is one significant star in a constellation of research, arts and higher learning institutions that make Northeast Ohio well positioned for innovative thinking.

When a multitude of thoughts and backgrounds come together, businesses, taxpayers, and communities can all benefit from tomorrow’s ideas, today.

22

COLLABORATION DRIVES INNOVATION We value the commitment and support of corporate partners, government agencies, philanthropy and individual donors. Your investment in our mission unlocks the full potential of entrepreneurship to transform our treasured communities.

Our partnerships strategically align across four categories:

23

Capacity building

Innovation

Strengthening the region’s vibrant entrepreneurial ecosystem

Bringing new ideas to scale within the marketplace and the ecosystem

Access

Collaboration

Building equitable access to services, connections and capital

Embracing partnership to achieve equitable economic opportunity

Partnerships fund our Future Our work is resourced through a diversified funding model which includes charitable giving, public investment and financial returns. JumpStart and ecosystem partners leverage funding from the Ohio Third Frontier by matching each dollar with self-sustained funding. This is why partner contributions and collaborations are critical to achieving our mission.

While our collective accomplishments are many, there is still much more work to do. Economic impact is amplified through a unique blend of public resources and private investment.

If you share our vision in the power of entrepreneurship to transform and enrich our region, we invite you to reach out and explore what your contribution can do.

24

THANK YOU TO OUR ECOSYSTEM BUILDERS

We are grateful to the many funding partners who make our work possible throughout Northern Ohio.

These partners include: NORTHWEST OHIO

NORTHEAST OHIO

City of Toledo Farmers and Merchants Bank Fifth Third Bank Greater Toledo Community Foundation Huntington National Bank KeyBank LISC Toledo Lucas County Mercy Health System PNC ProMedica Toledo-Lucas County Port Authority The University of Toledo

Burton D. Morgan Foundation City of Cleveland Cleveland Foundation Cuyahoga County Economic Development Administration Education Foundation of America KeyBank Medical Mutual PNC Bank Stark Community Foundation Verizon Wireless

25

And many, many more.

A special thanks to the Ohio Department of Development for their continuous commitment to innovation in Ohio.

GET INVOLVED Learn more about how your support can impact entrepreneurs, the ecosystem and the regional economy.

Visit

Call

Toledo

709 Madison Ave, Suite 101 Toledo, Ohio 43604

Toledo

567.218.1717

Cleveland

6701 Carnegie Ave. Suite 100 Cleveland, Ohio 44103

Cleveland

216.363.3400

26

jumpstar tinc.org JumpStart is a nationally recognized organization dedicated to investing, entrepreneurial support and economic development. Our mission is to unlock the full potential of entrepreneurship to transform entire communities.