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==Clubs, Meet-Ups, and Community Organizations==
Local initiatives to foster an entrepreneurial community, including but not limited to entrepreneurship clubs, social gatherings, and entrepreneurial related events.
==Entrepreneurship Education==
Formal education offered on topics on or related ==Regulatory Environment==Political institutions at the local, state, and federal level play a pivotal role in the entrepreneurial ecosystem. The regulatory environment in each of the three level of governments alter the ease of entry into the entrepreneurial space by way of a variety of mechanisms. These mechanisms include tax policies, incorporation costs, barriers to entrepreneurshipentry, particularly in higher education such as MBA or undergraduate business programsetc.
==Established Incumbent Firms==''in progress''
Established incumbent firms provide partnership, engage in open innovation, and act as a source for acquisition and spin-off in the entrepreneurial ecosystem.==Venture Capital==
==FlexVenture capital firms provide “privately held 'entrepreneurial' firms with equity, debt, or hybrid forms of financing, often in conjunction with managerial expertise” (Amit et. al, 1998). The typical VC investment will occur during early or middle stages of the start-space up process in exchange for a minority equity stake of the company, although most specialize in the investment of young entrepreneurial ventures. VC firms typically target start-ups in advanced technology sectors rather than service or low-tech businesses, and Other Resource Providers==often specialize in a single vertical such as software or biotech.
==Skilled Labor==A significant benefit of utilizing venture capital is access to large amounts of capital, although in exchange for a small portion of the ownership. Many start-ups need multiple waves of VC funding before developing enough to go public, or to be bought out by a larger company. The goal of a VC investment is to provide capital for a start-up to gain success in order to make a financial return, consequently VC firms place heavy scrutiny and analysis on potential investments.
Skilled labor includes individuals with advanced degrees, particularly ''in the areas of Science, Technology, Engineering, and Mathematics, who are utilizing those skills in the work force.progress''
==Small Business Lending==Venture capitalists specialize in investing in high-growth start-up firms, especially those in technology sectors. A venture capital firm can control a number of funds at any given time. Each fund raises large amounts of money from institutional investors, particularly pension funds and insurance companies, as well as some high net worth individuals. A fund typically lasts for 10 years, choosing a portfolio of start-up companies to invest in within the first 5 years and purchasing equity in those companies. The average start-up will receive 3 rounds of venture capital funding from different syndicates of capitalists over 5-6 years before achieving an IPO, being acquired by another company, or shutting down operations. By unwritten rule, at least one venture capital fund in each syndicate must be less than a twenty-minute drive away from the start-up. As a consequence, venture capital has been established as an urban phenomenon, concentrated in a handful of cities across the United States.
Small business lending is a subset of loans offered ===Venture Capital Investment by financial institutions specifically to small businesses. Small businesses are classified by the SBA [https://www.sba.gov/category/navigation-structure/contracting/contracting-officials/small-business-size-standards] by either size (in millions of dollars) or by number of employees.Region===
''in progress''Start-ups are classified by Venture Capital firms into 4 stages [http://www.pwcmoneytree.com/Definitions/Definitions]: seed stage, early stage, expansion stage, and late stage. These stages of development help investors determine the potential return of an investment.
==Research Labs==Research labs provide housing and resources for research conducted in Moneytree, a wide variety of disciplinescollaboration between PriceWaterhouseCoopers[http://www.pwc. A lab’s classification is determined by com/] and the source of funding, either public (or government funded) or privateNational Venture Capital Association [http://nvca. Research labs can act as part of a university setting or org/] defines these stages as an independent entity. :
==Serial Entrepreneurs #'''Seed Stage''': "The initial stage. The company has a concept or product under development, but is probably not fully operational. Usually in existence less than 18 months."#'''Early Stage''': "The company has a product or service in testing or pilot production. In some cases, the product may be commercially available. May or may not be generating revenues. Usually in business less than three years"#'''Expansion Stage''': "Product or service is in production and Successful VCcommercially available. The company demonstrates significant revenue growth, but may or may not be showing a profit. Usually in business more than three years."#'''Late Stage''': "Product or service is widely available. Company is generating on-backed Firms==going revenue; probably positive cash flow. More likely to be, but not necessarily, profitable. May include spin-offs of operating divisions of existing private companies and established private companies."
Serial entrepreneurs are individuals who have started multiple start-up ventures over Historically, the course majority of the careerVenture Capital investment, regardless in terms of the success both number deals and total dollar amount, occurs once a company reaches its early stage. Seed stage companies receive minimal investment simply because they are not often developed enough to be of those ventureslegitimate promise to investors. Successful venture capital backed firms encompass not only Recent trends have shifted to the founder majority of those deals being made during the early stages, though larger deals are found with firms but also the employees who worked for in the venture throughout its creationexpansion or late stages.
This is a particularly relevant aspect In Quarter 3 of the ecosystem2015, as individuals who have launched start-ups or have worked for succesful start-ups are more likely to engage Seed Stage ventures received 1% of total venture capital investment in dollars, early stage ventures brought in entrepreneurship throughout their careers33%, expansion stage firms 39%, and late stage received 27% of capital investment.
A significant benefit Software has historically dominated Venture Capital investments, with 28% of utilizing venture capital is access to large amounts total deals and 32% of capitalinvestment over the last ten years. Software investment peaked surrounding the dot-com bubble, although and decreased sharply in exchange for a small portion both number of deals and capital investment after the ownershipburst. Many start-ups need multiple waves of VC funding before developing enough Recently, venture capital investment in software has returned to go public, or levels similar to be bought out by a larger companythe dot-com bubble. The goal of Biotech has recently emerged as a strong sector for VC investment is to provide capital for a start-up to gain success in order to make a financial return, consequently with some VC firms place heavy scrutiny and analysis on potential investmentsinvesting exclusively within the biotech sector.
''in progress''The Top 5 Sectors by Venture Capital Investment Dollars (2015 Q1-Q3) are: #Software ($18.86 Billion)#Biotech ($5.84 Billion)#Consumer Products & Services ($4.22 Billion) #Media & Entertainment ($3.83 Billion)#IT ($3.25 Billion)
Entrepreneurial Ecosystem (view source)
Revision as of 13:40, 21 September 2020
, 13:40, 21 September 2020no edit summary
{{Project
|Has project output=Content,Guide
|Has sponsor=McNair Center
|Has title=Entrepreneurial Ecosystem
|Has project status=Complete
}}
The entrepreneurial ecosystem is comprised of a wide array of institutions and resources that contribute to the development of entrepreneurship on a local or municipal level. These components have led to the creation of clusters of entrepreneurial success and economic growth, such as Silicon Valley (Palo Alto, California) or Route 128 (Massachusetts).
===Accelerators===
:An accelerator is a “fixed-term, cohort-based program including mentorship and educational components, that culminates in a public pitch event, often referred to as ‘demo-day’” (Cohen and Hochberg, 2014). The mission of an accelerator, often a non-profit entity, is to provide early stage start-ups with resources, mentorship, and networking needed to gain access to venture capital funding. On average, cohorts stay with an accelerator for 3 months cumulating with a pitch to several venture capital investors. (Fehder and Hochberg, 2014) ====Academic Research==== :Dan Fehder's new paper "Startup Accelerators and Ecosystems: Complements or Substitutes?" uses a regression discontinuity analysis on admission scores to the MassChallenge accelerator to find that accelerators do have a meaningful impact on an entrepreneurial venture's ability to access local resources. [http://danielfehder.com/wp-content/uploads/2015/10/Fehder_Accel_Ecosystem.pdf]
===Incubators===
* Notable absences: Y Combinator and Rock Fund, both of which no longer identify as seed accelerators but as seed funds
===Hubs===
Hubs, also known as tech hubs or startup hubs, are entities that serve as an intersection between incubators, accelerators, and co-working spaces to foster an entrepreneurial ecosystem and environment. Hubs serve as leaders in their local entrepreneurial communities, enabling entrepreneurs through a wide variety of programming, events, and benefits.
There are several networks of tech hubs around the country and around the world, including Google's North American Tech Hub Network [https://www.googleforentrepreneurs.com/startup-communities/the-north-america-tech-hub-network/] and 1776's Startup Federation[http://www.1776.vc/startup_federation/].
[[Image:Hubs Plot 1_Cropped.jpg|frame|Map of notable tech hubs in North America]]
'''Notable tech hubs in North America:'''
*1776[http://www.1776.vc/] (Washington, DC)
*1871[http://www.1871.com/] (Chicago, IL)
*American Underground[http://americanunderground.com/] (Raleigh-Durham, NC)
*Benjamin's Desk[https://benjaminsdesk.com/] (Philadelphia, PA)
*Betamore[https://betamore.com/] (Baltimore, MD)
*Cambridge Innovation Center[http://cic.us/] (Boston, MA and St. Louis, MO)
*Capital Factory[http://capitalfactory.com/] (Austin, TX)
*CO+Hoots[https://cohoots.com/] (Phoenix, PA)
*CoCo[https://explorecoco.com/] (Minneapolis, MN)
*Communitech[https://www.communitech.ca/] (Waterloo, Ontario CAN)
*Cross Campus[http://www.crosscamp.us/] (Los Angeles, CA)
*DevMountain[https://devmounta.in/] (Provo, UT)
*Domistation[http://www.domistation.com/] (Tallahassee, FL)
*Galvanize[http://www.galvanize.com/] (Denver, CO and San Francisco, CA)
*Grand Circus[http://www.grandcircus.co/] (Detroit, MI)
*GSVLabs[http://gsvlabs.com/] (Redwood, CA)
*Hatchery [http://hatchery.vc/] (New York, NY)
*Hattery[http://hattery.com/] (San Francisco, CA)
*INcubes[http://incubes.ca/] (Toronto, CAN)
*NGIN Workplace[http://nginworkplace.com/] (Boston, MA)
*Notman House[http://notman.org/] (Montreal, Quebec)
*NYU Entrepreneurial Lab[http://entrepreneur.nyu.edu/?resource=leslie-elab] (New York, NY)
*Packard Place[http://packard.place/] (Charlotte, NC)
*Rocketspace[https://rocketspace.com/] (San Francisco, CA)
*Startup Mexico[http://www.startupmexico.com/] (Mexico City, MEX)
*StartX[http://startx.com/] (Silicon Valley, CA)
*The Dallas Entrepreneur Center[http://www.thedec.co/] (Dallas, TX)
*The Genesis Center[http://www.genesiscentre.ca/] (St. John's, CAN)
*The Idea Village[http://ideavillage.org/] (New Orleans, LA)
*The Nashville Entrepreneur Center[http://www.ec.co/] (Nashville, TN)
*The Venture Center[http://www.venturecenter.co/] (Little Rock, AK)
*Trailhead[https://trailheadboise.org/] (Boise, ID)
*Venn Centre[http://venncentre.ca/] (Moncton, CAN)
*Venture Hive[https://www.venturehive.com/] (Miami, FL)
==Angel Investors==
According to the University of New Hampshire's Center for Venture Capital Research[https://paulcollege.unh.edu/sites/paulcollege.unh.edu/files/webform/2014%20Analysis%20Report.pdf], 2014 saw Angel Investors contributing $24.1 billion, a slight decrease from 2013 investment.
==Crowd Funding and Micro-finance==
Micro-finance institutions are banks that give small loans to individuals or groups with low interest rates. The clients of micro-finance institutions are often lower-income households and small business owners looking for micro-loans to expand or create a small business venture. Currently, micro lending in the developing world is significantly more prolific than in the United States or in other developed countries, due to a combination of policy and market obstacles. Though not exclusively, micro-finance institutions are often linked with non governmental organizations, social entrepreneurship, and nonprofit ventures in an attempt to stimulate economic activity and job creation in developing communities. (Sterner and Murdoch, 2001)
==Regulatory Environment=Venture Capital Investment by Stage===Political institutions at the local, state, and federal level play a pivotal role in the entrepreneurial ecosystem. The regulatory environment in each of the three level of governments alter the ease of entry into the entrepreneurial space by way of a variety of mechanisms. These mechanisms include tax policies, incorporation costs, barriers to entry, etc[[Image:Stage Investment Graph. jpg|400px|thumb|right]]
==Universities== Universities as a component of the entrepreneurial ecosystem includes not just the practice of innovation Venture Capital Investment by members of the university community, but also the university's interactions with entrepreneurs, spin-outs, technology transfer offices, and other mechanisms of interaction with the entrepreneurial space. =Industry=Venture Capital==
Venture capital firms provide “privately held 'entrepreneurial' firms with equity, debt, or hybrid forms of financing, often Capital has been predominantly investing in conjunction with managerial expertise” (Amit et. al, 1998). The typical VC investment will occur during early or middle stages of the start-up process in exchange for a minority equity stake small subset of the companyindustries, although most specialize changing historically based on trends in the investment of young entrepreneurial venturesmarket. VC firms typically target start-ups in advanced technology sectors rather than service or low-tech businesses, and Venture Capital investors often specialize in focus their investment portfolios within a single vertical such as software or biotechspecific sector.
===Top U.S. Venture Capital Firms (from Forbes[http://www.forbes.com/sites/alexkonrad/2015/03/25/midas-top-ten-list-2015/], by most exists since January 2014)===
#Sequoia Capital
#Institutional Venture Partners
Information on investments can be found from [[Venture Capital Databases]]
==Other components==
In addition to the larger institutional players, the ecosystem benefits from the presence of the following institutions and/or individuals in the community. The following components contribute to developing and cultivating a population of potential entrepreneurs and their innovations.
*'''Clubs, meet-ups, and other community organizations''': local initiatives to foster the entrepreneurial community, provide forums for collaboration, and host entrepreneurial related events
*'''Entrepreneurship education''': formal education on topics on or related to entrepreneurship, particularly in higher education such as MBA or undergraduate business programs
*'''Established incumbent firms''': successful incumbent firms provide partnership, engage in open innovation, and act as a source for acquisition and spin-off in the entrepreneurial ecosystem
*'''Flex-space and other resource providers''': businesses offering a variety of services specific to start-ups, primarily focusing on the supply of workspace to early stage ventures or entrepreneurs. WeWork is an example flex-space provider with office through-out the US and Canada.[http://news.buzzbuzzhome.com/2015/12/wework-first-toronto-shared-office-richmond.html]
*'''Skilled labor''': members of the work force with advanced degrees, particularly in the areas of Science, Technology, Engineering, and Mathematics
*'''Small business lending''': a subset of loans offered by financial institutions, specifically to small business that fall under the classifications established by the SBA [https://www.sba.gov/category/navigation-structure/contracting/contracting-officials/small-business-size-standards]
*'''Research labs''': labs that provide housing and resources for research conducted in a wide variety of disciplines, classified as either public or private depending on the primary source of funding
*'''Serial entrepreneurs and previous VC-backed firms''': individual and firms that have found success in the entrepreneurial space, and are likely to engage in entrepreneurship in the future
*'''Universities''': research institutions, that include not just the practice of innovation by members of the university, but also the university's interactions with entrepreneurs, spin-outs, technology transfer offices, and other mechanisms of interaction with the entrepreneurial space
==Useful Entrepreneurship Maps==
* Barcelona startup map [http://w153.bcn.cat/#/]
* Amsterdam startup map [http://app.startupamsterdam.org/#/companies/map?q=locations(Amsterdam,Netherlands)]
* Israel startup map [https://mappedinisrael.com/]
* Startup blink [http://www.startupblink.com/Houston-startups]
* Represent LA [http://represent.la/]
