Getting It Done - Part 1
Recently I was asked to give a presentation at a local Chamber of Commerce’s annual meeting on ‘What is happening in entrepreneurial development in Northeast Ohio?’. The topic made me think about what initiatives are ‘getting it done’, and some of the key organizations taking part in the transformation. With the list of such organizations being so long, this will be the first post of a series (‘Getting It Done’), taking the key points of my presentation and bringing them to life here in our blog. If you remember, I did another post on a similar subject early this year. ‘We’re building something big‘ took a 30,000 foot look at the ecosystem. ‘Getting It Done‘ will be a deep dive into some of the individual organizations behind the transformation.
Let’s start with BioEnterprise and JumpStart Ventures, organizations that have played pivotal and nationally visible roles in our entrepreneurial ecosystem.
BioEnterpise came onto the scene in 2002, and has led Northeast Ohio’s surge in the Healthcare space.
How it works: BioEnterprise has made itself a national leader for regional healthcare industry development, and has been a coalescing force in making Northeast Ohio a recognized hub for healthcare entrepreneurship and activity. They give extremely strong support for select, high potential healthcare startups from industry experts who have done it before. BioE connects these select companies with investors across the nation interested in healthcare investing.
Results: The results have been impressive. BioE has been involved with creating, recruiting, and accelerating over 80 companies, evaluated over 1,100 opportunities and more than 1,900 invention disclosures, and brokered over 300 technology transfer deals. However, the best measure of BioE’s success is in the new capital brought into Northeast Ohio, which includes nearly $150 million in technology transfer revenues, and over $860 million of new capital attracted in the healthcare sector.
Why it works: BioE has made itself a huge piece of the Northeast Ohio entrepreneurial ecosystem. Baiju Shah and his team have been able to create a huge “buzz” around Northeast Ohio as a healthcare destination and center for medical device development, and coalescing the strengths represented by the Cleveland Clinic, University Hospitals, the top-ranked biomedical engineering department at Case, the Summa health system and others. They have hired top talent to provide support for their companies, and have developed a reputation and relationship with venture capital funders throughout the U.S.
JumpStart Ventures is JumpStart Inc.’s (started in 2004) line of business investing in, partnering with, and accelerating the growth of early-stage companies.
How it works: JumpStart Ventures employs a highly selective process to choose companies for investment, and strictly adheres to the process to achieve fairness and consistency. Unlike traditional funders, they actually help companies selected to present to them through a process called ASSIST. After investment, JumpStart Ventures companies receive significant operational support from a Venture Partner (as much as 20% of an experienced executive’s time), as well as direct help in raising the all-important next round of funding.
Results: JumpStart Ventures is primarily measured by follow-on capital raised by its portfolio companies, and the results are outstanding from the more than 40 companies in the portfolio. Since 2004, these companies have raised over $80 million in follow-on funding and generated an estimated $180 million in regional economic impact. Additionally, JumpStart has been recognized by the U.S. Economic Development Agency as the nation’s top urban or suburban economic development group, and has been featured in national press like The New York Times, The Wall Street Journal and PARADE magazine.
Why it works: JumpStart Ventures works by primarily providing funding to early-stage companies at the time when they most need it — when they are in the proverbial “Valley of Death”. Beyond that, the operational support and connections to next level funders afforded to portfolio companies is top-notch and significant. JumpStart Ventures has taken a very process oriented approach to company selection and to other aspects of the successful entrepreneurial mix, making it understandable and repeatable. Like BioEnterprise, JumpStart Ventures has created and accelerated a “buzz” around Northeast Ohio as a place where things are happening in early-stage entrepreneurship.
Next in the series: JumpStart TechLift Advisors and JumpStart Inclusion Advisors
Chris Mather is President, JumpStart Entrepreneurs-in-Residence. Previously, he managed a number of technology initiatives in Northeast Ohio for NorTech. Before entering the economic development world, Chris ran a number of technology companies in Northeast Ohio and New England, including Ion Optics Inc., where he raised $6.7 million in venture capital, and Apsco Inc. and Gould Instrument Systems. Prior to that, he spent 13 years in sales, marketing and management roles with Hewlett Packard after graduating from Worcester Polytechnic Institute with a BS in Electrical Engineering.