558
edits
Changes
Jump to navigation
Jump to search
Ranked #1 for Startup Metropolitan Area Data {{BlogPost|Has title=Austin TX Emerging Ecosystems (ranked #1 in 2015Blog Post) |Has author=Eliza MartinRate |Part of New Entrepreneurs: .60% series=Emerging Ecosystems|Has content status=Published|Has processing notes=Published as "Keep Austin Entrepreneurial"Opportunity Share of New Entrepreneurs: 79.88% |Has publication date=2016/11/21}}Startup Densitygoogledoc link: https: 105//docs.google.2 com/document/d/1tQVHFLeAdoivM6cYa-8awbynM9nV0l6YBIbuOiUGk6Y/edit
Rate of Business Owners'''Austin, Texas: 7.97% '''
Established Small Business Density: 812Ranked the number one American city for new business creation for two years in a row by the Kauffman Foundation, Austin, Texas is one of the strongest emerging entrepreneurship ecosystems in the United States.6
Ranked #2 in Growth Entrepreneurship
Rate '''Austin’s History of Startup Growth: 81.23% Entrepreneurship'''
Share Unlike some emerging ecosystems, Austin has a long history of Scale-ups: 2innovation entrepreneurship. During the 1970’s and 1980’s, Austin established an ecosystem focused on computer and semiconductor manufacturers. A doubling in student attendance at the University of Texas and efforts by the Chamber of Commerce resulted in IBM locating to Austin in 1967, Texas Instruments in 1969, and Motorola in 1974. As the industry grew, major computer and semiconductor manufacturers banded together and created the Microelectronic Computer Corporation (MCC) in 1982.25%
HighMCC was one of the largest computer research companies at the time. MCC chose to establish itself in Austin instead of the more traditional ecosystems such as Silicon Valley and Route 128. The University of Texas at Austin offered MCC a subsidized lease near the University of Texas Pickle Research Campus and low-Growth Company Density: 234cost loans and reduced mortgage rates for staff moving to Austin. MCC’s location in Austin encouraged the cooperation between local government, business, and the University of Texas.7
2015 Kauffman Index Report: Austin MSA as the number-one US City for technology innovation startups
History Narrative
1960’s: Early build up In 2000, thirty Austin venture capitalists invested over $2 billion in entrepreneurship ventures. However, the burst of computer the dot-com bubble in the early 2000’s hurt Austin companies. After the economic downturn from 2001-2003, the region experienced major industrial restructuring and microelectronics manufacturing a renewal of entrepreneurship ventures. In 2003, the business community raised $11 million for Opportunity Austin, an economic development program. Opportunity Austin focused on recruiting new businesses, marketing Austin effectively, and stimulating entrepreneurship and emerging technology sectors. Less than five years after the last economic downturn, the Great Recession of 2008 set back many new Austin businesses. While venture capital and small business creation are not at the level they were during the dot-com boom, the rate of startup growth is 81.23% (Kauffman Foundation).
Microelectronic Computer Corporation (MCC) in Austin in 1983 and Rematch’s consortium of 13 semiconductor manufacturers in 1988
IBM, Dell Computers, and AMD set up shop '''Entrepreneurship in Austin in the late 1980s Now'''
Trilogy Software Austin is experiencing yet another entrepreneurship boom. Austin now has the supportive policy structure, mentors, and sector diversification required to finally establish a lasting ecosystem.
Homeaway (IPO in 2011) & Bazaar Voice (IPO in 2012) (set up in 2005)
SXSWAustin’s cultural support of local businesses and supportive state and local government policies are fueling Austin’s startup growth. The absence of state income tax incentivizes young professionals to work and settle in Texas. The local Austin government provides services for people considering starting a business; BizAid Business Orientation, Business Solutions Center, Entrepreneur Center of Austin.
Grew from population under 400,000 in 1970
Region adjusted As a result of Austin’s strong history of entrepreneurship, mentorship opportunities for nascent entrepreneurs are readily available. Austin companies, such as Dell, offer mentorship and accelerator programs to major industrial restructuring after the dot-com bust from 2001-2003 (experienced negative job growth from 2001 to 2003) but in 2005encourage entrepreneurship and development. Entrepreneurial hubs, Tech Ranch Austin and Capital Factory, serve as an intersection between Austin incubators, accelerators, coworking spaces, employment and population growth was increasing again (exceeding national averages) offer mentorship programs for entrepreneurs.
Diversified its economic base
Strong corporate links between local corporate branches While known as “Silicon Hills,” Austin’s entrepreneurship economy is much more diversified than the computer chip and parent firms (esp semiconductor industry that first enabled Austin’s economy to grow. According to a 2015 report commissioned by the Austin Technology Council, approximately 14% of the $22.3 billion value of Austin’s tech companies that was added to the city’s GDP came from semiconductors. Computer and peripheral equipment contributed 31%. Both Austin-born and transplanted companies focus on the bioscience, energy, clean-technology, water, and IT/wireless industries. Austin has an extremely strong tech-focused entrepreneurship industry, but it also has successful ventures in Silicon Valley) the media, education, social, and craft/lifestyle industry.
Factors that have contributed to Austin’s Startup Growth: '''Venture Capital in Texas and Austin'''
Early successes of Texas’ venture capital investment has decreased by 19% over the past ten years. In order to maintain a healthy entrepreneurship ventures—talent ecosystem, it is imperative that venture capital investment increases in Austinthe coming years.
Availability of capital
Willing mentors Austin’s ecosystem lacks capital. In 2014, Austin saw 99 venture capital deals worth $739 million. In contrast, Silicon Valley saw 1,333 deals worth more than $27 billion. While there is no shortage of capital in Texas, there are barriers to capital access, a lack of information, and advisors (investorslittle government support. The majority of Texas capital is invested in oil, gas, incubatorsand real estate, acceleratorswhich are considered by many to be less risky than entrepreneurship ventures. However, networking groupsas oil prices fall, Texans should consider trying to raise growth and more) investing in entrepreneurial ventures. Austin’s most prominent venture capital fund, Austin Ventures closed in 2015. Phil Siegel and David Lack left to form Tritium Partners. Additionally, Austin venture capital firms, Silverton Partners and S3 Ventures, have tried to fill the void left by Austin Ventures. However, none of the Austin venture capital funds have the capital or assets that Austin Ventures had.
Capital Factory: Joshua Baer—largest startup incubator and co-working space in Austin; most active email investor in the world. He was recognized as the 2013 Austin Community Leader of the Year & 2013 Henry Crown Fellow at the Aspen Institute
Affordable work spaces '''Resources in Austin'''
Spaces: IncubatorsAustin has a plethora of resources available to entrepreneurs. The annual South by Southwest Festival provides a networking opportunity for entrepreneurs. Additionally, Acceleratorscompanies are taking advantage of the 100, 000 students that graduate each from universities in the greater Austin area. The University of Texas at Austin boasts the Austin Technology Incubator (ATI) under the The IC² Institute, which has raised almost $700 million in investor capital to achieve this goal. Additionally, the Central Texas Angel Network provides capital and Co-Workingmentorship support for entrepreneurs in the Central Texas region.
Capital Factor, Techstars, AVINDE, Rice Alliance (Austin Chapter), Austin Technology Incubator (ATI), Southwest Angel Network, Austin+Social Good, Tech Ranch, Mission Capital, Central Texas Angel Network, Opportunity Space, Vuka, The Incubation Station, Austin Technology Incubator, Launch Lab, Link Coworking, Perch CoWorking, Posh CoWorking, HubAustin Coworking, Conjunctured Coworking,
Supportive state and local government'''What Starts in Austin Can Change the World'''
Universities: UT, Concordia, StAustin’s entrepreneurial ecosystem is moving towards national recognition. Edward’sDell PC’s, Huston-Tillotson University 21.7% GDP Growth from 2007-2012 Favor Delivery (Source: Forbes list backed by Austin’s S3 ventures and an alumni of ATI), and HomeAway are among the services Austin entrepreneurs offer across the US Regions nation. In the upcoming years, it is critical that capital investment continues to Watch in 2014)11support new ventures.8% Job Growth from August 2007 to October 2013 Austin’s projected 3.15% population growth rate in 2016 is ecosystem has the highest among the 100 metro areasexamined Employment expanded 3.28% last year {{McNair Projects|Project Title=Emerging Ecosystemspolicy,|Topic Area=Entrepreneurship Ecosystemstalent,|Owner=Eliza Martinand mentorship to be successful,|Start Term=Fall 2016,|Priority=3,|Deliverable=Wiki Page,}}but private and public efforts must continue to ensure its success.
Austin TX Emerging Ecosystems (Blog Post) (view source)
Revision as of 13:26, 29 March 2017
, 13:26, 29 March 2017no edit summary
Initially, the Austin technology industry focused on large businesses, such as IBM and Texas Instruments. However, the oil and savings and loan crises of the late 1980’s and early 1990’s crippled the national economy. Austin was not spared: it had one of the highest commercial real estate vacancy rates in the country and companies laid off large numbers of employees. The University of Texas at Austin created the Austin Technology Incubator (ATI) in 1989 to help jumpstart the Austin economy through stimulation of high-tech startups with high-growth potential. In 1989, Greg Kozmetsky, the brain behind ATI, also founded the first angel network in Austin, named the Capital Network.These initiatives provided a foundation for growth during the dot-com boom.
