FY 2021 Annual Report

INTENTIONALLY CLOSING RESOURCE GAPS FOR RURAL AND URBAN ENTREPRENEURS

ANNUAL REPORT | FY 2021 | NETWORK KANSAS

About NetWork Kansas:

NetWork Kansas, a 501c3 nonprofit organization, is dedicated to making entrepreneurship a priority for economic and community development in the State of Kansas. NetWork Kansas connects aspiring entrepreneurs, emerging and established businesses to a deep network of business-building and community development resource organizations across the state. NetWork Kansas facilitates the development of an entrepreneurial ecosystem within participating communities through the E-Community Partnership. Contributing factors to successful development include the availability of financial capital, support by local leadership, and development of educational resources. All of these factors combine to increase entrepreneurial activity in participating towns leading to increased startup activity, business expansion, job creation, and more. NetWork Kansas is also the home of e2 Entrepreneurial Ecosystems (e2) and Entrepreneurial Growth Ventures.

e2 Entrepreneurial Ecosystems provides best practice solutions to entrepreneurial ecosystem building in Kansas and nationally. e2 helps communities increase prosperity through entrepreneur-focused economic development and ecosystem building. Led by Don Macke, e2 has a national team providing research, coaching, incubation, market intelligence and other expertise to this work.

Entrepreneurial Growth Ventures (EGV)’s mission involves building and enhancing the network of resources to increase the capacity and support for innovative, high-growth entrepreneurs in Kansas. EGV collaborates across the state with community leaders, economic development organizations, universities, government entities and other entrepreneur support organizations to provide the entrepreneurs of Kansas valuable access to education, mentorship and capital. These high-growth companies aspire to transform markets with radically innovative products and services to grow jobs, wealth and prosperity across the state.

Visit: www.networkkansas.com

ENTREPRENEURIAL THINKING OFTEN SOLVES PROBLEMS

AND CLOSES GAPS.

COVID-19’s economic impact and the racial justice movement illuminated gaps in equitable resource allocation and distribution. Those gaps prompted NetWork Kansas to position itself to introduce new efforts to better serve those considered to be on the margins in rural and urban-distressed communities in Kansas. At the forefront of the shift: diversity, equity and inclusion principles and practices to strengthen our ability to serve across all populations.

These entrepreneurial efforts are quickly moving to active projects initiated by local for profit entrepreneurs and nonprofit organizations to solve a wide variety of community issues — from access to childcare, healthy foods, broadband and healthcare. Furthermore, local, regional, and statewide organizations are seeking NetWork Kansas’ guidance to support minority entrepreneurs and startups in their communities. All of these activities are positioning Kansas to be a more diverse, equitable and inclusive entrepreneurial ecosystem.

CREATE CAMPAIGN FORUM - WICHITA, KS

NetWork Kansas is realizing the effects and opportunity of a best practice platform that unleashes the power of local, regional, and statewide geographies and organizations to help build the capacity necessary to succeed. National, statewide and family foundations are increasing their investment in NetWork Kansas to fortify and grow Kansas entrepreneurial ecosystems. The largest Community Development Financial Institution (CDFI) in the country, LISC, has sought out a partnership with NetWork Kansas to implement strategies aimed at increasing small business entrepreneurial support in Kansas. Community foundations, cities, and counties are signing management agreements with NetWork Kansas so they, too, can begin to move down the path of Impact Investing.

This report outlines a shift of intention, services and vision-casting as NetWork Kansas works to invest locally, partner broadly and impact deeply.

KANSAS COMMUNITY INVESTMENT FUND VIDEO SHOOT - TOPEKA, KS

HISTORICAL FUNDING PERFORMANCE

SINCE 2006

NetWork Kansas launched its first loan program, StartUp Kansas, in 2006 and has created eight additional loan programs. These programs have generated more than $500 million in total investment with the majority of funding coming from other capital resources.

PERFORMANCE HIGHLIGHTS

More than 42 PERCENT of the investments have been in STARTUPS

600+ nonprofit and government sector partners engaged in investments

66 Entrepreneurship (E-) Community Partnerships

800+ local residents involved in Entrepreneurship (E-) Community Partnership leadership teams

1,339+ local residents involved in NetWork Kansas’ Board Certified Programs

70+ administrative partners involved with NetWork Kansas

LOAN LEVERAGE

AS OF 6/30/2021

VENTURE LEVERAGE

AS OF 6/30/2021

Multiplier Venture43

& VENTURE 1,308 $56,537,106 $491,337,194

“The need to connect startups and small businesses in Kansas to the resources they need to grow can look very similar in rural and urban areas, making the focus of NetWork Kansas so important. Finding the right resources to start and grow your business in Chanute, Kansas or in center city Wichita, Kansas can be as easy as connecting to NetWork Kansas.”

- MELODY MILLER, Co-Founder and President of Miller’s, Inc., who is an emeritus member of the Wichita Urban E-Community

ACCESS TO CAPITAL ADDRESSING THE GAP

IMPACT INVESTING AND HUTCHINSON

“We were hoping to solve the problem of Internet access for so many families in the rural areas of our county,” Aubrey Abbott Patterson, President & CEO, Hutchinson Community Foundation

The Hutchinson Community Foundation is going beyond traditional grantmaking by investing philanthropic dollars in collaborative lending packages to address social needs while also returning those dollars back to the foundation — with interest — to be deployed again. This practice is called impact investing and NetWork Kansas, through the Kansas Community Investment Fund, is at the forefront of helping foundations realize the potential of this funding approach with the help of Blue Cross and Blue Shield of Kansas and the Kansas Health Foundation.

One impact investing example: The Hutchinson Community Foundation offered a $215,000 loan,

EMPOWER FUND

Tracy Allen, owner of Lois’ House, and an Empower Loan recipient- Wichita, KS. Courtesy photo.

leveraged with NetWork Kansas, the Kansas Community Investment Fund and other local and state funds that grew to $13.7 million through the State of Kansas’ Connectivity Emergency Response Grants to provide Internet access to more than 8,000 homes in Reno County in 2021 through a locally-owned award-winning broadband service provider, IdeaTek.

Now, the foundation plans to invest 5 percent of its assets in the Reno County Impact Investment Pool, which is expected to yield a “double bottom line: a financial payoff of 3 to 4 percent along with positive social return,” according to the foundation’s “Invest for More: Financial Return, Local Impact” report.

VIEW OUR IDEATEK VIDEO: https://bit.ly/33BjdCs

NetWork Kansas created the Empower Fund to further the mission of increasing access to funding specifically among minority entrepreneurs.

The Empower Fund is a pilot project operating in Wichita, Topeka, Dodge City and Liberal, Kansas. Certified partners submit applications on behalf of potential borrowers in the pilot communities and borrowers agree to receive technical assistance to strengthen their business management practices.

This pilot program is funded by NetWork Kansas and the Kansas Health Foundation and is supported by Blue Cross and Blue Shield of Kansas. New partners for these efforts include Fidelity Bank and INTRUST Bank, both of which have headquarters in Wichita.

“NetWork Kansas understands building community begins at the local level,” said David Rixter, CEO of MStreetX, who serves on the NetWork Kansas Empower Advisory Board. “From my time supporting Kansas as [its] Outreach Manager for the U.S. Department of Treasury’s, State Small Business Credit Initiative (SSBCI), including collaborating with NetWork Kansas on Treasury’s first Inclusive Entrepreneurship convening, I have witnessed NetWork Kansas’ progression from a nascent ecosystem builder to a thriving and vibrant organization that connects domains to enhance the entrepreneurial ecosystem.”

EMPOWER ADVISORY BOARD

CHARTER EMPOWER FUND ADVISORY BOARD

• CHAN BROWN, Program Officer, Kansas Health Foundation, Overland Park, KS

• RHONDA F. HARRIS, Director, Office of Minority and Women Business Development, Kansas Department of Commerce, Topeka, KS

• CHRISTINA M. LONG, Inclusive Director, NetWork Kansas and Strategic Director, NetWorked Partnership for Community Investment, Wichita, KS

NetWork Kansas launched The Empower Advisory Board for members to provide input on NetWork Kansas’ new programs and initiatives including the Empower Fund. The Advisory Board will also counsel on best practices for NetWork Kansas’ growing supplier diversity program, entrepreneurship programs, and resource development efforts to better serve diverse populations.

NetWork Kansas is a leader in providing gap-financing to disadvantaged geographies and populations across the state and has developed relationships with key leaders and minority-led organizations in Kansas and across the country to strengthen access to resources for minority entrepreneurs in Kansas.

• JONATHAN LONG, Vice President, Diversity, Equity and Inclusion and Executive Director, Mosaic, Tulsa Regional Chamber, Tulsa, OK

• CORAL LOPEZ, Director, Main Street, Dodge City/Ford County Development Corporation, Dodge City, KS

• DAVID RIXTER, CEO and Co-Founder, MStreetX, Fairfax, VA

• DR. ROBERT WEEMS, JR., the Willard W. Garvey Distinguished Professor of Business History, Wichita State University and NetWork Kansas Board Member, Wichita, KS

STATEWIDE YOUTH ENTREPRENEURSHIP PROGRAMS

YOUTH ENTREPRENEURSHIP CHALLENGE (YEC)

PERFORMANCE HIGHLIGHTS

DURING THE 2020-2021 ACADEMIC YEAR

The 2020-2021 academic year marks the eighth annual YEC series coordinated by NetWork Kansas and the E-Community Partnership. The YEC Series was created in 2013 to expose Kansas middle school and high school students to entrepreneurship and help them to begin thinking entrepreneurially. The 66-community E-Community Partnership is dedicated to increasing entrepreneurial activity and developing self-sustaining ecosystems favorable to long-term entrepreneurial growth. Local YEC Series events require students to prepare an executive summary and a 4-minute presentation, and often feature interactive tradeshows or elevator pitches. Students work in teams or individually to represent a business concept and compete for awards and prizes. Students’ work is judged by local entrepreneurs, public sector partners, teachers, and other community members.

PERFORMANCE HIGHLIGHTS

VentureDash began beta testing in March 2020 and was officially launched in July 2020. VentureDash provides solutions that make running an entrepreneurship competition easier.

“As our programs grew, we encountered challenges with finding adequate technology to support the unique elements of our events,” said Chad Jackson, Director of the Center for the Advancement of Entrepreneurship at Kansas State University. “VentureDash has been able to fill the gaps and offer world-class experiences to students who utilize the program.”

Visit the platform: www.goventuredash.com

NETWORKING SILOS ADDRESSING THE GAP

NETWORKED PARTNERSHIP FOR COMMUNITY INVESTMENT

MISSION: Connecting unconnected networks and closing gaps between people, information and assets to develop pathways that boldly solve community challenges.

The NetWorked Partnership for Community Investment launched in March 2021 following months of strategic planning, framework building and brand development.

NetWorked is an intentional strategy to create interconnected, cross-sector networks of organizations in the fields of entrepreneurship, community development, economic development, minority business and nonprofit development, health, and community foundation work. The goal of this interconnection is to identify projects and marshal social, for profit, and nonprofit entrepreneurs to identify and infuse the necessary resources to move projects forward. Through virtual convenings, Kansans are presented with existing resources that are already solving areas of impact related

to: health, civic engagement, community development, diversity, equity, inclusion, economic development, educational attainment, entrepreneurship support and quality of life/ placemaking.

NetWork Kansas, the Kansas Health Foundation, Blue Cross and Blue Shield of Kansas and e2 Entrepreneurial Ecosystems helped develop this “network of networks.”

Visit: www.networkedforchange.com

ADMINISTRATIVE SUPPORT FOR GOVERNMENT INSTITUTIONS AND COMMUNITY FOUNDATIONS

NetWork Kansas is helping fill capacity gaps by administering loan and grant programs for government and community foundations. NetWork Kansas’ expanded platform of administrative services gives every community and organization a fast start to a new entrepreneurial culture with opportunities for a long term future. Most importantly, these communities are not given prescriptive guidelines but a partner of networks with the sole mission of making entrepreneurship a priority for community and economic development and “they” will choose the path that leverages the strengths of their own community. The servicing and administering allows organizations to get creative with implementing big ideas to boldly improve communities.

FEATURED EXAMPLE: PROPEL

LOAN

SMALL BUSINESS

FUND & THE CITY OF WICHITA

PROPEL – Providing Resources and Opportunities for Proprietors, Entrepreneurs and Lenders (PROPEL) Small Business Fund, City of Wichita

PROPEL is a low-interest, short-term revolving loan program. The fund serves as another resource to help make access to capital more readily available to underserved businesses located in Wichita. The microloan program helps provide general working capital to qualifying small businesses. The fund provides loans up to $15,000 to businesses that have the ability to repay a loan but may not be able to obtain financing through traditional sources.

NetWork Kansas is servicing these loans.

Visit: www.wichita.gov/propel

City of Wichita PROPEL media briefing- Wichita, KS

Photos courtesy of CML Collective, LLC and Unicorn Creative Studios

NETWORK KANSAS’ ALIGNMENT WITH THE KANSAS FRAMEWORK FOR GROWTH

A Flexible and Responsive Model

“The world is changing and accelerating every day, and therefore with urgency, we too must change.

“Our great people, communities, educational system and unique assets give Kansas a solid foundation for growth.”

Governor Laura Kelly

The following table outlines specific strategic elements present in each component of the Framework for Growth and the activities undertaken for successful implementation. The table includes Framework goals, specific NetWork Kansas strategy elements and the strategic activities and partners involved its execution. In addition, several appendices are available upon request to provide deeper dives into the foundational elements of what makes a community prosperous and specific best practice implementations.

November 1, 2021 Framework

TALENT

Bridge the skills gap for indemand and high-wage occupations in target sectors Ignister

Attract and retain top talent across the state’s economic regions Youth Entrepreneurship Challenge

Attract and retain top talent across the state’s economic regions Kansas Entrepreneurship Challenge

Launched to encourage the development of computer science and coding initiatives statewide Kansas Department of Commerce (KDOC)

Local E-Fairs of students from 7th12th grades to encourage youth entrepreneurship

Local teachers, communities, businesses and local and regional organizations

Statewide competition comprised of winners of local competitions Kansas State University (KState), local, regional, and statewide partners

Youth Entrepreneurship Challenge (YEC) Series

Appendix A: New Resident Attraction

INNOVATION

Foster a vibrant innovation ecosystem within and across economic regions

Entrepreneurial Growth Ventures (EGV)

Foster a vibrant innovation ecosystem within and across economic regions

Resource connections to Aerospace and MFG projects

EGV, a unit of Network Kansas is charged with coalescing local, regional, statewide, and multi-state collaboration to increase connectivity of organizations supporting high growth entrepreneurs

Provide support infrastructure to National Institute for Aviation Research (NIAR) and the Technology Development Institute (TDI)

Connecting and Supporting Accelerators

Support local accelerators through technical assistance, involvement in leadership activities, and strategic partnerships

Partner with regional and national community and entrepreneurial support organizations Hold National Entrepreneurship Summits, Partner with National Resource Providers, and increase the visibility of Kansas as a “Best Practice” provider of support for entrepreneurs

KDOC, Enterprise Center of Johnson County, angel networks, accelerators, commercialization centers, PIPELINE Entrepreneurs, the Kauffman Foundation (Kauffman), Wichita State University (WSU), K-State, & University of Kansas

Wichita State University (WSU), KState

NXTUS, Greater Topeka Partnership, Kauffman Foundation, Wichita State University (WSU)

National Resource Partner (NRP)Kauffman Foundation, Certified Partner: LISC, Summit Partner: Federal Reserve Bank of Kansas City (Kansas City Fed), Partner, Rural Rise

November 1, 2021 Igniting Investment

Ensure that entrepreneurs are afforded with adequate access to capital

StartUp Kansas Entrepreneurship (E -) Communities

Ensure that entrepreneurs are afforded with adequate access to capital

Capital Multiplier Loan Fund

Statewide and Community led matching loan programs to provide working capital to businesses in rural areas and distressed areas of urban centers

Statewide matching loans in all geographies

70 Administrative Support Organizations, 66 E -Communities

Ensure that entrepreneurs are afforded with adequate access to capital

Capital Multiplier Women and Minority Owned Businesses

Capital Multiplier Venture Fund

Statewide matching loans specifically for women and minority owned businesses

Statewide equity investment for high growth entrepreneurs

70 Administrative Support Organizations, 66 E -Communities

Appendix B: The NetWork Kansas Capital System

EDA Loan Fund

EDA Revolving Loan Fund in Northeast Kansas

70 Administrative Support Organizations, 66 E -Communities Minority Support Organizations

KDOC, Enterprise Center of Johnson County, angel networks, accelerators, commercialization centers, PIPELINE Entrepreneurs, Kauffman, Wichita State University (WSU), K-State, & University of Kansas

Northeast Economic Development Organizations, Great Plains Development Corporation, Economic Development Administration (EDA)

INNOVATION

November 1, 2021

FRAMEWORK

Igniting Investment

STRATEGIC ELEMENT

STRATEGIC ACTIVITY PARTNERS

Ensure that entrepreneurs are afforded with adequate access to capital Kansas Community Investment Fund (KCIF) Impact Investment Loan Fund targeted to for profit and nonprofit entrepreneurs to provide matching loans to solve community issues including access to care, health, childcare, broadband, and civic and community issues

Ensure that entrepreneurs are afforded with adequate access to capital Empower Fund Pilot Pilot “NO MATCH” loan fund for minority entrepreneurs in Wichita, Topeka, Dodge City, and Liberal

Ensure that entrepreneurs are afforded with adequate access to capital Community Foundation Impact Investment Programs

Ensure that entrepreneurs are afforded with adequate access to capital Municipality and County Impact Investment Programs

Provide strategic direction, management support, and administer loans for community foundations investing for impact

Provide strategic direction, management support, and administer loans for cities and counties investing for impact

Kansas Health Foundation (KHF), Blue Cross Blue Shield of Kansas (BCBSKS)

APPENDICES

KHF, BCBSKS, Fidelity Bank, Intrust Bank, The Create Campaign, Inc. Greater Topeka Partnership, Dodge City Economic Development, city of Liberal

Hutchinson Community Foundation, Topeka Community Foundation

Harvey County, City of Wichita (Propel Program)

November 1, 2021 Igniting Investment

Ensure that entrepreneurs are afforded with adequate access to capital Kansas Healthy Food Initiative (KHFI)

COMMUNITY ASSETS

Provide technical assistance and capital to for profit and nonprofit businesses to ensure access to healthy foods

K-State, The Food Trust, KHF, and IFF (CDFI)

K-State, The Food Trust, KHF, and IFF (CDFI) Framework Strategic Element Strategic Activity Partners

COMMUNITY ASSETS

Empower our regions to develop the infrastructure that will help “future proof” their economies

Empower our regions to develop the infrastructure that will help “future proof” their economies.

Entrepreneurship Communities

Entrepreneurship Communities Local leadership team development to determine the long term strategic direction of local communities

Development Opportunity, Market Opportunity, and Venture Dynamics

Profiles

Development Opportunity, Market Opportunity, and Venture Dynamics Profiles

Local leadership team development to determine the long term strategic direction of local communities

Empowering research uses data to help leaders make decisions about economic development that are more strategic and, ultimately, to create the kinds of economic development outcomes and longterm community or regional prosperity communities desire

66 ECommunities 70 administrative support organizations, wKREDA, KEDA

Kansas rural and metropolitan communities, community foundations, family foundations, regional economic development organizations, wKREDA, KEDA

Appendix C: Community Prosperity Framework

Appendix D: Community Analytics Framework

November 1, 2021 Igniting Investment

FRAMEWORK

Empower our regions to develop the infrastructure that will help “future proof” their economies.

STRATEGIC ELEMENT

Employ Entrepreneurship Led Economic Development model to support local entrepreneurs

STRATEGIC ACTIVITY PARTNERS

Engage national leadership to provide a certification program for entrepreneurship led economic development

International Economic Development Alliance (IEDC), Kauffman Foundation, Edward Lowe Foundation, Sourcelink Kansas City Fed

Empower our regions to develop the infrastructure that will help “future proof” their economies.

Employ Entrepreneurship Led Economic Development model to support local entrepreneurs through training and access to capital (see capital programs under Innovation)

Partner with local communities to launch programs specifically designed for individual entrepreneurs.

Kansas rural and metropolitan communities, partner networks, community colleges, community foundations, family foundations, statewide foundations

Empower our regions to develop the infrastructure that will help “future proof” their economies.

Co-create and/or support programs with community, regional, and statewide partners and invest in training for entrepreneurs in preventure and startup stages

Youth E ntrepreneurship Challenge, Makerspace Bootcamp, IceHouse Entrepreneurship

Kansas rural and metropolitan communities, K-State, Independence Community College, Entrepreneurial Learning Initiative, Destination Innovation

November 1, 2021 Igniting Investment

STRATEGIC ELEMENT

Empower our regions to develop the infrastructure that will help “future proof” their economies.

Co-create and/or support programs with community, regional, and statewide partners and invest in training for existing businesses to ensure their prosperity

STRATEGIC ACTIVITY PARTNERS

Growing Rural Businesses, Destination Business Bootcamp

Empower our regions to develop the infrastructure that will help “future proof” their economies.

Co-create and/or support programs with community, regional, and statewide partners and invest in training for women and minority led businesses an non profits

The Create Campaign, Black Mastermind Bootcamp, Hispanic Language Icehouse Entrepreneurship, Entrepreneur Business Basics

Kansas rural and metropolitan communities, WSU, Destination Business

Empower our regions to develop the infrastructure that will help “future proof” their economies.

Create a low cost loan and grant administrative services that enables communities and organizations to innovate without starting from scratch

Impact Investment Management, Grant Administration Services

The Create Campaign, Black Mastermind Group, city of Liberal, Integrity Designs & Consulting, LLC, Greater Topeka Partnership

KDHE, BCBSKS, Hutchinson Community Foundation, Harvey County, Topeka Community Foundation, city of Wichita

November

1, 2021

November 1, 2021

Promote vitality, livability and quality of place in our state’s economic regions

POLICY

Igniting Investment

NetWorked Partnership for Community Investment (NetWorked)

NetWorked is a cross sector collaboration with the mission of connecting unconnected networks and closing the gaps between people, information, and assets to develop pathways that boldly solve community challenges

Pathways to Rural Prosperity Podcasts

NetWorked is a cross sector collaboration with the mission of connecting unconnected networks and closing the gaps between people, information, and assets to develop pathways that boldly solve community challenges

e2 Entrepreneurial Ecosystems, an organizational unit of Network Kansas provides ongoing podcasts highlighting opportunities for rural development

KHF, BCBSKS, regional partners, ECommunities

Local, regional, state, and national guests

Framework Strategic Element

POLICY

Ensure that state policy supports objectives and outcomes in other strategic pillars

Serve as the central portal for entrepreneurs seeking assistance and financing options in Kansas by providing a seamless resource center clearinghouse, to include the establishment of a website and toll free number

Referral center resources include 4 staff who connect entrepreneurs, manage internal loan metrics, and connect entrepreneurs to the resource partner network 550+ Partners 66 E

Referral center resources include 4 staff who connect entrepreneurs, manage internal loan metrics, and connect entrepreneurs to the resource partner network

Communities Regional and statewide economic development organizations, KDOC

550+ Partners 66 ECommunities Regional and statewide economic development organizations, KDOC

The Test of an Entrepreneurship Platform

Never was the need for an Entrepreneurship Platform made clearer than the beginning stages of the PAGE 20

Never was the need for an Entrepreneurship Platform made clearer than the beginning stages of the COVID19 Global Pandemic. The pandemic demanded immediate action without the benefit of existing systems. It required entrepreneurial startup behavior by Governor Kelly, her administration, and partner organizations and communities. In addition to Governor Kelly, NetWork Kansas was sought

Further Opportunities for Integrating Framework Strategies

John Hancock once said that “Every person should own a little business of their own because the people who have a stake in their community are its best citizens.” The vision and mission of NetWork Kansas is to harness the power of entrepreneurship in Kansas residents to start and grow Kansas businesses that solve community issues and grow local, regional, and state economies. This distributed community, regional, and statewide platform is the engine that has the opportunity to provide the Framework for Growth with a mechanism to infuse entrepreneurial resources to grow talent, inspire innovation, build community infrastructure, and recommend policies that accelerate growth across the state.

CONCLUSION

As NetWork Kansas continues to push past the margins to close gaps, there will be ongoing learning, experimenting and working beyond the comfort zone. In doing so, we look to unlock new approaches, collaborations and discoveries.

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