Heart of the BlueTechValley

2011 - 2015Strategic Plan

This strategic plan has been developed to:Maximize positive economic impact in the Central Valley via business launch and job creation

Develop the region’s position as a hub of innovation

Support the region’s core industry sectors as de�ned by the Regional Jobs Initiative

Enhance and leverage partnerships between private and academic sectors to enhance tech transfer and workforce preparedness

E�ectively manage multiple programs and assets now governed by the Central Valley Business Incubator organization

Expand the capacity of the Central Valley Business Incubator organization, operationally, �nancially and geographically

CVBI VisionCVBI will be the driving force in the Valley for advancing economic develop-ment through entrepreneurship

CVBI Mission• Nurture and grow entrepreneurs, innovators and businesses• Create a network of incubation & business development partners• Provide access to comprehensive services • Create sustainable high growth ventures

CVBI ValuePositioning the Valley as a globally-recognized leader of Innovation, Technology Development and Commercialization

Launching and growing the businesses that develop and support the work-force that strengthens our economy:One Entrepreneur, One Business and One Technology at a time

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A Message from the Chief Executive Officer

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September 15, 2011

Dear Board Members, Community Leaders, Entrepreneurs and Innovators;

What an exciting time we are in. Today there is a focus on entrepreneurship and innovation as tools of economic recovery unlike any other time in recent history. Over the past 15 years, the Central Valley Business Incubator has been honing its programs and demonstrating the e�ectiveness of these e�orts.

Under the direction of the Board of Directors and many community leaders and advocates, CVBI has continued to grow in depth and reach, operating at the leading edge of business development and job creation with proven results. Since its inception, CVBI has evolved from a single purpose service provider into an integrated organization that manages multiple brands and programs, each with a unique focus, yet all contributing to a single goal: economic growth.

The Strategic Plan contained in this document has been developed over the past year and is based on the �ndings of an integrated group of community and industry leaders, professional economic developers, innova-tors, academics, entrepreneurs and sta�.

Many factors were considered when developing this plan, including: The unique strengths and assets of the valley including natural resources, critical mass of industry and marketplace, areas of sustainability.

Current and predicted challenges within the private, academic and public sectors, including educational trends, workforce development, stated interest and need.

CVBI strengths and areas of expertise including the WET Center, the SBDC programs, extensive private-sector acumen of sta� and sustainability and availability of funding and client sources.

CVBI is managing many initiatives and projects. Based on Water and Energy Technology, solid business develop-ment and the Valley’s many regional assets, this Strategic Plan charts the course for how the region can sow the seeds and harvest the fruits of a burgeoning economic garden over the next �ve years.

Sincerely,

Kirk T. NagaminePresident/CEOCentral Valley Business Incubator

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“The Central Valley has a strong value proposition for the water industry as innovative technology becomes more important. I am eager to hear more about how you are developing the water-related activities.

Laura ShenkarThe Artemis Project

Table of Contents

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INTRODUCTION 6TIMELINE & MILESTONES 7OPERATIONAL STRUCTURE 9PROGRAMS 13PRIMARY INITIATIVES & STRATEGIC DIRECTION 16PROGRAM GOALS & TARGETS 20EXHIBITS 24

METRICS OF SUCCESS 25BUSINESS MODEL 29WET CENTER TERMS & DEFINITIONS 30BTV & CVBI MISSION/VISION 31

CVBI - Tending the Economic Garden

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CVBI provides entrepreneurs with the support they need to grow fruitful businesses that will feed the economic health and wealth of the region. Originally focused on the “incubation” of small businesses, CVBI has expanded its depth and breadth of services to meet the needs of today’s entrepreneurs who increasingly require access to a network of rapidly evolving resources and business tools.

CVBI is a Small Business Development Center that services a four-county area – Tulare, Kings, Fresno and Madera – to partner with businesses in the successful cultivation of our region’s economic garden.

The State of California has designated CVBI as an “iHub” (Innovation Hub). iHubs are distinguished collaborative partnerships designed to rapidly promote regional innovation and commercialization. Of the 12 iHubs in Califor-nia, CVBI has the distinction of being the only one focused on Agricultural Tech, which brings great opportunity to the region.

The future of CVBI’s growth, as outlined in this Strategic Plan, is rooted in the success of its past and the experi-ence, leadership and assets of its present, including: • More than 14 years of experience in launching startup companies and expanding existing companies • A leadership team that has more than 60 years of private sector experience ranging from large corporate leadership to small business ownership • A wealth of institutional knowledge, proprietary programs and systems • More than 20,000 square feet of facilities including: full service small office spaces, class and meeting rooms; and a water and energy research, testing and certi�cation lab • Access to a deep bench of subject matter experts and consultants focused on helping counsel and solve problems for small business owners

CVBI - More Today than Yesterday’s Incubator

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1998Secured funding, venue and partnerships with Fresno County Work-force Investment Board and the University Business Center; recruited the �rst incubator clients. Ashley Swearengin hired as �rst Executive Director.

2000

Established virtual membershipthrough CVBI Online to increase accessto facility resources and support.

2003

CVBI developed its organizational structure with a full sta� and begins operating asits own �scal agent (Fresno State acted as its�scal agent until this time).

2006Construction of the WET CenterCommences; will be the �rst“green” building on campus and the�rst “incubator” to actively partnerwith a commercial testing facility.

2010

CVBI shifts its strategic focus to innovation andtechnology alongside entrepreneurship tomaximize impact through high potential enterprise.

August 17 – CVBI receives Small Business Development Center (SBDC) designation, CVBI-SBDC, to expand its physical presence throughout the Central Valley.

September 20 – CVBI receives iHub designation,CalValleyTechiHub, to connect CVBI, SBDC, Fresno State, UC Merced and the private sector.

1996Central Valley Business Incubator is incorporated in California, initiated by Dr John Welty and the Fresno Business Council as a means to combat unem-ployment, poverty and escalating crime by strengthening the local economy through job and business development.

1999CVBI was awardedfederal tax exemptionstatus as a 501(c)3.

2001CVBI merged with the Entrepreneurial Resource Center: expands CVBIcapacity to o�er business education and training.

2007 March 30 – Opened the WET, collaboration between CVBI,ICWT and Fresno State.

2011

Facilitate the BlueTechValley Committee and Conference to leverage the region’s stakeholders in water, energy and technology clusters. The goal is to drive WET innovation and commercialization that will launch WET businesses, create and support a knowledge-based workforce and expand the economy.

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“When it comes to water management as an engine of its economic development, the Central Valley really has the perfect storm going for it. It surely has the need: it knows well that water scarcity is a mortal threat to its agriculture base. It has the skills, in its agriculture and irrigation industry. It has the scienti�c expertise, in its universities -- Bakers�eld, Chico, Davis, Merced and Fresno. It has the entrepreneurial base, with 160 water-related businesses in the region. It is within a drive of the venture capital and innovation expertise of Silicon Valley. And, above all, it evidently has the drive and desire to 'make it so.’

Peter Williams, CTOIBM Big Green Technologies

CVBI - Operational Structure

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The CVBI operational structure provides the backbone to all programs and initiatives, creating e�ciencies and eliminating redundancies among programs.

CVBI is, in essence, the corporate headquarters of the various CVBI programs and initiatives, providing infrastructure to the projects so that each delivers maximum bene�t to the end user.

Sustainability and Growth Potential of Blue Technology in the Central Valley

Research presented by John Melville of Collaborative Economics demonstrates the growth of water-based businesses. The above chart shows that Water and Wastewater cluster businesses represent the largest number of jobs, and the Water and Energy �elds combined represent both the largest and fastest growing segments in the valley.

** Graphic representation taken from the June 9, 2011 presentation to the Clean Energy Forum by John Melville, Collaborative Economics, Advisors to Civic Entrepreneurs.

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Managing the Programs and Brands

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C l a u d e L a v a l

Corporate Brand

UmbrellaBrands

LocalizedBrands

Program Brands

CVBI - Serving the Central San Joaquin Valley

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ProgramsBusiness & Innovation Acceleration

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C l a u d e L a v a l

Incubation Available by application only. Admission criteria includes: • Tested technology • Feasible business idea • Relevant and executable business planServices include: • Access to tech-specific training and consultation • Business consultation • Need-specific advisors • Access to testing and demonstration • Loan packaging • Investment grooming • Private-sector connections

Physical Incubation Innovation-centric office space at two physical locations ; shared office services; open-door access to advisors; exposure and promotion.

Virtual Access to services and facilities including mail, conference room; printing and hot-desking; promotion and exposure as appropriate; free consultation and referrals to subject matter experts.

Programs

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CVBI-Small Business Development CenterBusiness Development and Starts

Consultation and Training • Free to anyone who wants to start or grow a business • Robust referral network to consultant-based counseling on topics such as: business planning, marketing strategy, taxes, business forms and more • Workshops and training programs

Loan packaging and assistance • Technical assistance for traditional loan applications and qualified low-rate micro-loans

CVBI OnlineVirtual Incubator Program

Online training, turn-key incubation solution • Business assessment and feasibility tools • 24/7 access to business plan development tools • Webinars, online classes and extensive library of resources

CalValleyTech iHubCollaborating for Water, Energy and Ag Technology Innovation

Statewide network of technology and innovation experts • Connection to resources and expertise of 11 other California iHubs • Supported by the Governor’s Office of Economic Development (GOEd)

Innovation and technology focus • Hyper focus on developing technology and commercialization • Leverages regional assets

Partnerships • Connects local and state stakeholders in a meaningful and action-oriented manner • Creates significant funding opportunities for ventures

SBDCC A L I F O R N I A

U C M e r c e d R e g i o n a l N e t w o r k

Programs

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Water, Energy & Technology Center Industry Focused • Leverages natural resources and assets • Develops and strengthens established industry • Promotes innovation and commercialization of technology • Stimulates new business launch, creates jobs and supports a developing work force

Connections • Partners with multiple learning institutions (College/University) • Connects industry and academic sectors • Helps identify private sector needs relative to workforce demands • Supports the development and commercialization of intellectual property

Funding • Leverages local, state, national and corporate funding opportunities

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2011 to 2015Primary Initiatives & Strategic Direction

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2011 to 2015Primary Objectives: Growth & Alignment

C l a u d e L a v a l( )

CVBI Primary Initiatives & Strategic Direction

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1To create a sustainable funding source for CVBI operations Strategic Direction: • Identify and partner with funders who share CVBI’s mission and vision • Continue to seek grant opportunities for initiatives and programs that fall within CVBI’s core competencies and expanding vision • Establish sustainable funding sources • Develop a cash reserve of $500,000 as a funding-gap bridge to support continuous organizational operation

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2To further develop CVBI’s core competency: Incubation of business and technology Strategic Direction: • Expand and enhance the programs and services of business incubation to include the entire business lifecycle, from idea to execution, including: o Tech commercialization o Innovation via “Proof of Concept Centers” • Continue to develop the WET Incubation Program as a nationally-recognized program within the Water, Energy and Ag Technology spheres • Continue recruiting WET-oriented, high-growth potential startup businesses to mature their enterprises via the WET incubator program

3To fully leverage the programs and services of the SBDC by becoming an accredited SBTDC-Center, achieving the “T” designation (“Technology”) for the UC Merced SBDC Regional Net-work (will allow for a greater technology focus and potential funding) Strategic Direction: • Research and develop a tactical timeline for achievement of SBTDC requirements • Attend and host Small Business Innovation Research (SBIR) Program and the Small Business Technology Transfer (STTR) workshops • Engage established SBTDC Regions in California via visits and hosted events

To position the WET Center as the “front door” to the region’s water and energy technology industry and the physical nucleus of the Central Valley’s globally recognized leadership in water innovation Strategic Direction: • Maximize WET Center partnerships • Develop and recruit high-potential, tech-based entrepreneurial and small business enterprises to launch and grow in the Central Valley • Operate the WET Center at maximum capacity • Develop and execute a national WET competition and/or conference

1sustain

2incubate

3accredited

4nucleus

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CVBI Primary Initiatives & Strategic Direction

To establish CVBI Online (a virtual incubator program) as an independent business unit and-pro�t center for CVBI • Provide valuable business development resources for state and national SBDC’s and other agencies

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To develop and enhance access to statewide assets by strengthening, enhancing and position-ing the CalValleyTech (CVT) iHub as a recognized nexus of partnerships and resources for techtransfer and commercialization, leading to new business and job creation Strategic Direction: • Create and launch a CVTiHub website • Strengthen the role of CVTiHub within the statewide iHub network • Identify and meet CVTiHub outreach • Seek funding sources for CVTiHub

Launch new CVBI Centers of Focus (e.g. the WET Center) throughout the Central Valley, related to regional needs Strategic Direction: • Create a replicable process, from planning to budgeting to operational structure (based on the WET Center model) to establish Centers of Focus in other regions of the Central Valley • Complete a feasibility study for the establishment of additional Center(s) • Identify and secure committed stakeholders and partners to determine needs and initiate planning efforts • Establish Memoranda of Understanding with stakeholders • Identify and secure stable funding streams to launch new Center(s)

To facilitate the establishment of the BlueTechValley initiative – a regionally, nationally and internationally recognized leader of water, energy and ag tech innovation – to support water, energy and ag tech innovation in the private and academic sectors Strategic Direction: • Identify, promote and leverage the value of BlueTechValley to entrepreneurs both internaland external to CVBI • Support the development of a BlueTechValley collaborative asset referral process • Support the development of a BlueTechValley collaborative marketing campaign

5virtual

6recognized

7scalable

8visionary

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2011 to 2015Goals & Targets

WET Center/IncubatorGoals & Targets

Formalize Center Development Structure & Process Develop replicable process for the establishment of industry-speci�c centers, including: • Adaptable mission and vision • Mandatory partnerships • Memorandum of Understanding template • Start-up costs/required funding • Operational budget • Required center staff • Shared services and operations

Finalize WET Center Membership Criteria & Innovation/Business Launch Process • Standardize parameters for WET membership application • Develop multiple sources of high potential WET members • Formalize MOUs for access to resources and facilities • Develop a WET-specific funding initiative

Achieve Full Capacity for WET CenterIdentify entrepreneurs and developing businesses to house in WET Incubator • Competition and Boot Camp feasibility • Graduate Program landing • Corporate referrals • Trade Show and partner representations

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C l a u d e L a v a l

4nucleus

2incubate

CVBI-SBDCGoals & Targets

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Become an accredited SBTDC Center and achieve a “T” designation for UC Merced SBDC Regional Network • Draft a comprehensive plan (with timelines) to complete the requirements of the SBTDC designation • Identify funding sources for tactics • Attend Small Business Innovation Research (SBIR) Program and the Small Business Technology Transfer (STTR) workshop/host minimum of one SBIR/STTR workshop

CVBI OnlineGoals & Targets

Expand the reach and capacity of the CVBI Online program and services to include the UC Merced Regional Network footprint • Work with SBDC to further develop channel partners • Work with Small Communities Network to identify areas of need • Work to establish Virtual Incubator Program (VIP) packages that support satellite centers

3accredited

5virtual

CalValleyTech iHubGoals & Targets

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Strengthen, enhance and position the CalValleyTech (CVT) iHub as a recognized point of partnership and resources for tech transfer and commercialization, leading to new business and job creation • Develop CVTiHub brand and launch website • Market the collaborative benefits of the iHub to a statewide audience • Establish corporate partnerships and funding opportunities • Develop iHub-specific funding (SBDC Grant) • Seek additional grant opportunities • Leverage statewide network; host networking event(s) • Establish formal relationship with Lyles Center’s Tech Transfer Program • Host a state-wide iHub Directors’ meeting • Attend professional development days at two iHubs via site visits

BlueTechValleyGoals & Targets

6recognized

7scale

Establish the Blue Tech Valley – a regionally, nationally and internationally recognizedleader of water, energy and ag tech innovation – to support robust and vibrant water, energy and ag tech innovation in the private and academic sectors • Create the BlueTechValley Committee among business, university/college faculty, investors and other community stakeholders • Formalize the BlueTechValley product(s) • Identify the BlueTechValley value proposition • Establish the BlueTechValley website and marketing plan • Launch the BlueTechValley water conferences

8visionary

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Exhibits

Metrics of SuccessCVBI - Worksheet

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Metrics of SuccessCVBI/SBDC - Worksheet

Metrics of SuccessCVBI Online - Worksheet

Metrics of SuccessWET Center - Worksheet

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Metrics of SuccessWET Incubator Program - Worksheet

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Metrics of SuccessCalValleyTech - Worksheet

C l a u d e L a v a l

Metrics of SuccessBlueTechValley - Worksheet

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Notes

The Business ModelLeveraging Strategic Partnerships & Assets

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The above diagram represents the dynamic connections and depth of assets and resources available to support business launch and technology development and commercialization. The model can be replicated as new Centers of Focus are developed and launched.

Operating at the “front door” for the Water, Energy and Technology sectors, the WET Center provides an easily accessible conduit for entrepreneurs and businesses to access a rich network of resources. This model can also be applied to the BlueTechValley plan by em-powering any partner to operate as the "center" of the system and orchestrate resource collaboration for the attainment of water, energy and ag tech innovation.

WET Center Terms & Definitions

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Client: An entrepreneur who receives consulting services from the SBDC program. There is no charge to received SBDC services.

WET Center Member: Memberships are available to public, private and academic sectors with an interest in the develop-ment of WET Industries. WET Center members have access to programs and services designed to support the development of the WET industry including counseling, soft landings, o�ce support and access to developing technologies. Levels of membership accommodate both startup and well established businesses.

WET Incubator Participant:Participants in the WET Incubator program are startup companies that are actively growing and preparing to launch in the commercial market.

Resource Team (Resource Partners):These are service providers and key partners in the community to whom clients and members are referred for additional service and support. The relationships are developed by CVBI-SBDC sta� and directors.

Network Management:The process of submitting work-orders/referrals to the Resource Partner for services to be provided. These essentially outline the client/member’s speci�c need. These are tracked by CVBI-SBDC sta� and usedto gauge member development.

Resource One Sheets: A one-page overview about each Resource Partner. These are distributed to clients/members as they are looking for providers. Collateral/materials from each organization may also be provided.

Mentorship Connections: Assisting clients/members with the development of advisor/mentor relationships. CVBI-SBDC continuesto source business and community leaders interested in mentoring emerging and expanding enterprises.

Mission StatementBlueTechValley

BTV VisionThe BlueTechValley will be globally recognized for water and energy innovation and technology commercialization.

BTV MissionThe BlueTechValley will strategically leverage the region's unique environment, resources and physical assets for inventors, entrepreneurs, start-ups, estab-lished companies and investors creating a rich context for testing, developing and commercializing of innovative water and energy technology.

BTV Value PropositionThe BlueTechValley o�ers state-of-the-art water and energy test facilities, business launch support and a comprehensive network of industry leaders, economic development professionals and university faculty - all aligned to turn entrepreneurial ideas and visions into solutions that spur innovation and growth in managing our �nite resources, water and energy.

Unlike most other regions, the BlueTechValley in California o�ers a working laboratory where concepts, products and business ideas can be put through rigorous, cutting-edge evaluation and receive honest customer feedback by a broad group of key industry leaders.

The BlueTechValley is the world’s Water Hub, where great ideas and concepts unite to launch sustainable businesses focused on global growth opportunities, start-ups and established companies, creating a rich context for testing, developing and commercializing of innovative water and energy technology.

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Mission StatementCentral Valley Business Incubator (CVBI-SBDC)

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CVBI VisionCVBI will be the driving force in the Valley for advancing economic develop-ment through entrepreneurship.

CVBI Mission• Nurture and grow entrepreneurs, innovators and businesses• Create a network of incubation and business development partners• Provide access to comprehensive services • Create sustainable high-growth ventures

CVBI ValueCVBI play a critical role in positioning the Valley as a globally-recognized leader of innovation, technology development and commercialization.

Launching and growing the businesses that develop and support the work-force that strengthens our economy:One Entrepreneur, One Business, and One Technology at a time