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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==
''in progress''
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.
===Venture Capital Investment by Region===
===Venture Capital Investment by Industry===
Venture Capital has been predominantly investing in a small subset of industries, changing historically based on trends in the market. Software has historically dominated Venture Capital investments, with 28% of total deals and 32% of capital investors often focus their investment over the last ten yearsportfolios within a specific sector. Software investment peaked surrounding the dot-com bubble, and decreased sharply in both number of deals and capital investment after the burst. Recently, venture capital investment in software has returned to levels similar to the dot-com bubble
Software has historically dominated Venture Capital investments, with 28% of total deals and 32% of capital investment over the last ten years. Software investment peaked surrounding the dot-com bubble, and decreased sharply in both number of deals and capital investment after the burst. Recently, venture capital investment in software has returned to levels similar to the dot-com bubble. Biotech has recently emerged as a strong sector for VC investment, with some VC firms investing exclusively within the biotech sector. The Top 5 Sectors by Venture Capital Investment in Dollars (2015 (Quarter 1Q1- Quarter 3Q3) are:
#Software ($18.86 Billion)
#Biotech ($5.84 Billion)
#Sequoia Capital
#Institutional Venture Partners
Information on investments can be found from [[Venture Capital Databases]]
==Other components==
*'''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]
*'''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/]
