Transcript Dynamics of Technology Based Economic Development

Growing Missouri’s Economy
Through Innovation and
Entrepreneurship
September 5, 2013
EMERGING STARTUP ACTIVITY
IN THE KANSAS CITY REGION
Cameron Cushman
Manager of Entrepreneurship
Ewing Marion Kauffman Foundation
EWING MARION KAUFFMAN
“Foster a society of
economically
independent individuals
who are engaged
citizens, contributing to
the improvement of their
communities."
OF THE 12 PEER METROS WE TYPICALLY COMPARE OURSELVES TO, KANSAS CITY
COMES IN LAST IN EMPLOYMENT GROWTH SINCE LAST FEBRUARY. KC’S RECENT EMPLOYMENT
NUMBERS PAINT A GLOOMY PICTURE, JEFF PINKERTON, MID AMERICA REGIONAL COUNCIL, 2013
1 MILLION CUPS STARTUPS
INC. 500/5000
DEALMAKERS NETWORK
Democratizing Entrepreneurship
“Every individual that we
can inspire, that we can
guide, that we can help start
a new company, is vital to
the future of our economic
welfare.”
- Ewing Kauffman
About MTC

Public-private partnership created by the Missouri General
Assembly to lead efforts to promote entrepreneurship and
foster the growth of new and emerging high-tech companies

Focus on 21st Century bioscience industries related to
Missouri’s rich history in agriculture

Board of Directors includes individuals appointed by
Missouri’s Governor, Speaker of the House, and President Pro
Tem of the Senate, and includes the President of the
University of Missouri system and the Director of the
Department of Economic Development
MTC Support Programs

Missouri Building Entrepreneurial Capacity Program
(MOBEC)
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Through the MOBEC program, MTC makes strategic investments in
non-profits that expand the support system for entrepreneurs that are
commercializing new technologies or that enhance the capacity of
Missouri to grow its innovation economy
IDEA Fund

The IDEA Fund promotes the formation and growth of businesses
that engage in the transfer of science and technology into job creation
MTC Areas of Focus

Animal Health

Applied Engineering

Biomedical Science

Defense and Homeland Security

Plant Science
MTC Area of Focus – Applied Engineering

Digital and convergence media

Information technology
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Creative content

Clean energy

Advanced manufacturing
Missouri IDEA Funds
Missouri IDEA Funds
On March 22, 2011, Missouri Governor Jay Nixon
announced the launch of the $21 million IDEA Seed
and Venture Capital Funds initiative that will
support the growth of entrepreneurs and high-tech
companies.

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7 competitive funding rounds completed
219 applications submitted
$131 million in co-investment funds requested
77 authorized projects totaling $20.4 million in IDEA Funds
Nearly 40 companies closed and funded in excess of $11
million raising leveraged capital in excess of $50 million
IDEA Seed and Venture Capital Funds
 Missouri
 Seed
TechLaunch
Capital Co-Investment Program
 Venture
Capital Co-Investment Program
 High-Tech
Industrial Expansion Program
Missouri TechLaunch Eligibility

Pre-Seed Stage Financing

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Experienced Leadership

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Industry/Technology
Commercialization
Matching Funds


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Accelerate the commercialization of research discoveries
At least 100%
Close and Transfer in a Syndicate
Viable Plan for Follow-On Financing or Sustainability
Missouri TechLaunch Awards

Funds may be used for IP development and
evaluation

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proof of concept work
prototype design
market studies
related business activities
Typically issued as convertible debt
Seed Capital Co-Investment Eligibility

Seed Stage Financing

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Experienced Leadership

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
Industry/Technology
Commercialization
Matching Funds



Accelerate the commercialization of research discoveries
and growth of start-up companies
At least 100%
Close and Transfer in a Syndicate
Viable Plan for Follow-On Financing or Sustainability
Seed Capital Co-Investment Awards

Funds may be used for advanced IP development and
evaluation


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proof of concept work
prototype design
market studies
key personnel hiring
related business activities
Typically issued as convertible debt or equity
Venture Capital Co-Investment Eligibility

Venture Capital Stage Financing


Experienced Leadership

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
Industry/Technology
Commercialization
Matching Funds

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Accelerate the growth of start-up companies that can be new
Missouri-based corporate headquarters
At least 100%
Close and Transfer in a Syndicate
Viable Plan for Follow-On Financing or Sustainability
Venture Capital Co-Investment Awards

Funds may be used for advanced IP development and
evaluation






proof of concept work
prototype design
market studies
key personnel hiring
related business activities
Typically issued as equity
High-Tech Industrial Expansion Awards

Funds may be used for business expansion activities

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equipment
construction
key personnel hiring
related business activities
Typically issued as secured low-interest debt
Matching Funds
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Minimum of 1:1 cash match of new, private investment
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Neither federal funds or in-kind contributions can be used
as match to IDEA Funds

Matching funds to close in syndication with MTC
investment
MTC Investment Review Process
Application
Investment
Committee
Review
• Application
• Preliminary Staff Review
• Due Diligence and Scoring
• Highest-ranked Applications Reviewed by Investment Committee (unless exigent
circumstances)
• Funding Recommendations Issued
• Board Considers Recommendations
MTC Board • Final Due Diligence and Definitive Documents
Review
• Awardees Report Outcomes for 10 years
• Contract Compliance
Tracking
Outcomes • Outcomes Monitored by Investment Committee
Missouri Building Entrepreneurial Capacity
MOBEC
MOBEC Goals

Enhance the capacity of organizations to support entrepreneurs who
are commercializing new technologies around which high-growth
companies can be created
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Enhance the capacity of Missouri research institutions to attract
competitive federal and private research funding and centers

Enhance research and commercialization efforts in the targeted hightech industry clusters of animal health, plant science, biomedical
science, applied engineering and defense and homeland security; and
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Create sustainable high-paying, private sector jobs.
Program Guidelines
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Eligibility
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Non-profit entrepreneurial support and related organizations
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Public or private non-profit Missouri research institutionsIncluding institutions of higher education
Matching Funds

MOBEC grant funds should be matched by other non-state
funding sources
ARCH GRANTS
IT ENTREPRENEUR
NETWORK
Arch Grants awards $50,000 grants
to entrepreneurs each year. Who will
relocate to St. Louis for one year
ITEN has served over 220 start-up
companies through its network of
more than 70 private-sector mentors
Year two of the program received
over 700 applications from start-ups
in 39 states and 15 countries across
the globe.
Companies assisted by ITEN have
raised over $70 million in financing
MOBEC funds used for program
administration
MOBEC funds used for program
administration
MERCY RESEARCH AND
DEVELOPMENT
MISSOURI INNOVATION
CENTER
Research & development focused
on bridging the gap between
doctors and patients to create
better medical devices and
improved treatment procedures,
eventually leading to higher quality
of care for patients.
MIC operates the MU Life Science
Business Incubator at Monsanto Place,
which offers biomedical and life science
wet labs and engineering suites for
startup companies.
MOBEC funds used to help
commercialize new products
MOBEC funds used to build additional
wet lab space