CED on The State of the Entrepreneurial Economy of North Carolina

1,800 companies started.

40,560 jobs created.

$7.7 billion in capital invested.

This is the impact that entrepreneurs have had on the state of North Carolina in the past 20 years.

The “Starting Something: The State of the Entrepreneurial Economy of North Carolina, 1992-2011” report was presented last week at CED‘s Annual Meeting held at RTP Headquarters.  The data for the report was collected by, Maryann Feldman and Nichola Lowe, who are both professors at UNC-Chapel Hill, First Flight Venture Center, an RTP-based incubator, and CED.

Another important finding of the study is that the jobs created by these start-ups have stayed in North Carolina, which is key to the economic growth of the state.  Furthermore, while a majority of the VC funds that have invested in these start-ups are based in the Southeast, there have been investments made from international funds, as well as those based in Boston, NYC and California.

CED took on this initiative both to show the importance of entrepreneurs in our overall economy, but more importantly as a reminder of the various players and ingredients our region’s economy depends on to remain competitive.

At RTP, a central theme of our mission is to serve as an economic driver for the State of North Carolina and the Triangle Region.  It’s interesting to see the role the larger, more established companies in our region play — both as the sources of innovation and new companies and also as end-users or acquirers of some of the new ideas. We are proud to see these great innovators in the Triangle creating a thriving entrepreneurial community that is catching the attention of the nation.  This is what RTP is all about, folks.

For the presentation from CED’s annual meeting, click here.

For the press release, click here.

Southeast BIO Investor Forum

What do you get when you put a room full of biotech start-ups with cutting edge innovations together with the largest constituency of biotech investors in the Southeast?

The answer is the Southeast BIO Investor Forum, which touts itself as “the Southeast’s premier life sciences investor conference since 1999.”  With one of the largest and continually booming concentrations of biotech and life sciences companies in the US, it was only logical that the conference was held in the Research Triangle Region.  The forum, which took place on November 2 & 3 carried the theme of “Data Driven Deals” focusing on the importance of data in driving grants, corporate sponsorships, investors, and exits. 

SE BIO fills a very important gap, allowing life sciences start-ups to get in front of potential investors and pitch their technology.  Since the first forum took place in 1999, presenting companies at SE BIO have raised over $2.5 billion. With early stage biotech companies, the challenge is always the same – the founders have a great innovation but lack the funds to bring their idea to market – so they need money (and more often than not, lots of it).  The opportunity to get up in front of an audience full of investors and pitch their innovation is invaluable for these young companies.

In the Research Triangle Park specifically, we are proud to have nearly 80 biotechnology and life sciences companies, employing over 10,400 local specialists.  One of the main stage presenting companies was a company located in one of RTP’s incubator’s, CivaTech Oncology.  CivaTech develops polymer based radioactive devices to treat early stage prostate, breast and lung cancer.  CivaTech’s Director of Research & Development, Seth Hoedl, explained to potential investors the technology behind the company’s two products – the CivaSheet and the CivaString.  The technology that CivaTech has come up with satisfies unmet an medical need and will revolutionize the treatment of breast, prostate and lung cancer. 

At the closing luncheon for the forum, the North Carolina Treasurer, Janet Cowell, made an exciting announcement about the founding of the “Accelerator,” a $35 million fund to support early-stage life sciences companies. A great step forward for the state of North Carolina in helping start-ups gain access to capital and the perfect way to close the SE BIO Investor Forum.

High school students + Triangle CEOs = Startup High 2012

by Scott Kelly, RTP Guest Blogger from Startup High

Imagine a summer camp where CEOs and entrepreneurial leaders teach high schoolers how to build and grow companies.  What if each day the students had the chance to visit a different company and interact personally with business leaders?   

Startup High 2012 is making that happen.  

At some point during our life all of us will get out of the shower and say, “I know how I can make millions!”   If the idea gets off the ground it usually fails when it goes to market.  However, a recent methodology called Lean Startup (see Eric Ries’s book The Lean Startup) teaches a scientific approach to test ideas for market fit and can help increase the chance of success when launching a new venture.  

Lean Startup will be part of the curriculum Startup High and help students understand how to test those crazy startup ideas.  Also, instead of each business leader delivering a one way lecture to students, Startup High will utilize a question based approach.  Before each company visit, students will craft appropriate questions for leader to better understand how the company grew. 

Know a parent of a high schooler?  Send them to startuphigh.com, or the Nov 1 Lunch Info Session at First Flight, or one of the other info sessions.

First Flight Venture Center: Think. Grow. Connect.

Lately, there has been a ton of buzz in the Triangle about start-up companies…but where the heck do you go to actually “start-up”?

First Flight Venture Center (FFVC) is one of those places.  A business incubator in RTP (one of 5 incubators, accelerators and small space models in the Park), First Flight has been helping people think through their ideas, form companies and grow them into businesses for nearly two decades.  I like the blurb on their website – “…incubate just isn’t a word – it’s a commitment.  You think.  We think. We all think about how to make it successful.”  It’s about so much more than just space.  

For those of you that didn’t have a chance to catch the video of Andy Schwab from First Flight a few weeks ago, I’ve summarized the highlights below. If you’re already living in the Triangle and aren’t sure how to get your idea off the ground, call Andy!  If you’ve identified RTP as the place you want to launch your company, but aren’t sure where to call home, call Andy!  Read more »

How to Hatch a Goose Egg Without an Incubator

This morning I googled: [where is the right place to incubate startup]. Or at least I thought I did. IE automatically placed my search in Bing. Perplexed with the results, I opened up Chrome and searched Google. Here is the side-by-side comparison of the results of each search:

While Google returned what I expected to find, Bing introduced me to a multitude of results. Curious, I decided to click on ‘How to Hatch a Goose Egg without an Incubator.’ Surprisingly, there were a lot of similarities in growing a startup to a fully fledged business.

Goose eggs must be incubated in order to hatch.

A business incubator is more than just a place that offers what most startups need initially: cheap rent. Incubators are focused on helping to launch and grow successful businesses.

You can approximate the effects of an incubator, but even with close supervision, only about half of birds hatched without a proper incubator survive.

Starting up inside an incubator with collaborative programs can really help entrepreneurs take that great idea and enthusiasm and combine it with essential business know-how, work space, support services, and provide connections to the right contacts and mentors. And often of greater importance, offer legitimacy for venture funds looking to invest.

Difficulty: Moderately Challenging.

Let’s face it. Starting up a business is hard. And first-time entrepreneurs need all the help they can get.

Andy Schwab, President of First Flight Venture Center – a business incubator located in the Research Triangle Park, shares his thoughts on the Research Triangle Region and how FFVC helps people think through their ideas, form companies, and grow them into businesses. (Thanks to our marketing intern, Ross Maloney, UNC ’12)

Bottom-line: Are you getting the right resources you need for the business you’re trying to do?

Learn more about the invaluable resources and support organizations in the Research Triangle Region to help you startup.

Startup + NC IDEA GRANT = Winning company

Here’s an idea. Wouldn’t it be great if there was a fund that provides grants for high-tech start-up companies and doesn’t ask for any equity in return?

There is such an organization:  NC IDEA

NC IDEA realizes the powerful role that small grants can play in further developing high-tech start-up companies. With many new technologies not successfully transferred out of universities and research institutions because of a funding gap between government and private equity support, NC IDEA implements its grants program to help fill the gap.

Because its grants are relatively small (in the range of $10,000 – $50,000) NC IDEA grants are targeted at companies where the grant funds can make a significant impact on the company’s progress. Read more »

Start something… and here’s who can help.

Startup Lifecycle (thanks YallaStartup for the image!)

See the image to the left? If you’ve drawn this on a paper napkin, and then scratched your head at the checklist…

Chances are: you need this list.

Over the last few days, there have been multiple meetups, CED Cafes and TiE Carolina events that have offered opportunities for entrepreneurs like you to connect with the Research Triangle region’s rich resources of support organizations to help make that light bulb idea of yours a reality.

A huge thanks to CED for starting this list, and the many more who pinged me with others. As they say, I only know what I know. SO. If you want to be included on the list, leave a comment with your organization’s name, description, and contact information and any special packages you have to support our entrepreneurs.

And now… the list:

Read more »

Bridging the Gap

Have you ever been prescribed a drug or therapy that didn’t seem to agree with your system?  Or diligently taken your medicine but experienced no improvement in your condition?  I’ve certainly dealt with this before, and after I finish feeling annoyed with my doctor, I wonder why on earth someone hasn’t figured this out yet!

In fact, many people ARE figuring this out – it’s called companion diagnostics.  And lucky for us, the folks at bioMONTR, a start-up in RTP’s Park Research Center, are making progress in our backyard.

Read more »

Kauffman Foundation Unveils ‘Startup Act’

Entrepreneurship is what powers this economy. It is imperative that we nurture our greatest asset as a nation in nurturing creativity, developing intellectual property and products with policies that create a more supportive environment for entrepreneurs and small businesses.

CLICK TO VIEW VIDEO on The Kauffman Foundation | The Startup Act

Earlier this week, The Kauffman Foundation presented a proposal to spur the U.S. economy and increase job creation by accelerating the growth of startups and young businesses. The Startup Act aims to focus the attention of citizens and policymakers on the central role that high-growth startups must play to assure continued U.S. economic strength.

The unveiling of the Startup Act follows Kauffman data released last week that found that while more firms than ever have been created each year since the last recession began, the numbers of new firms with employees continues to drop—and this is a trend that pre-dates the recession.

Read more »

Investing in Opportunity

“Where are the jobs?”

Twenty-three percent, according to Twitter’s Topic Tracker, of the possible questions for President Obama, focused on jobs during his first ever Twitter town hall this past week.

With the next job report out July 8, even Warren Buffett is optimistic on jobs.  So optimistic, that he placed a little wager (one dollar, to be exact) that the U.S. unemployment rate – now at 9.1% – will dip well below 8% by November next year. [Update: June jobs report out. Just up 18,000]

But by 2020, the U.S. will need to create 20 million jobs to recover from the 7 million lost in the Great Recession and 13 million needed for the country’s growing population.

So, what’s with the downer post?

Quite the opposite actually. Despite the economic challenges, our region’s historically strong technology and innovation performance places us in a competitive position as demand for science and technology-driven growth builds.

Governor Perdue, Lou Tapper - Longistics, Cris Mulder - RTP, Secretary of Commerce Crisco

I’ve had the opportunity in the last few months to travel with Governor Perdue and Secretary of Commerce Crisco as they courted businesses from outside states, hosted the National Advisory Council on Innovation and Entrepreneurship, and most recently in promoting the region at the BIO International Conference in Washington D.C.  And the message each time is abundantly clear from the Governor:  “I will take any meeting or make any call to bring new businesses or keep existing companies here.”

But actions speak louder than words. The governor has made calls for rethinking the state’s business tax structure, hoping to cut tax rates on small business and corporations in order to remain regionally competitive and spur new job growth. The governor also supported continued and increased state investments in business incentives and tax credit programs designed to support job growth. And, North Carolina also has a network of over 25 core public and private research laboratories supporting research in biotechnology and life sciences. And as the Governor says, it’s our strong regional collaboration that attracts businesses to look at the entire package.

Public-private partnerships are key.

Read more »