• PhD in Economics

• Recognized leader in cluster and competitiveness benchmark analysis

• Leads ROI’s consulting and data analytics practice

• 14 years experience in regional econ analysis

• Over 20 years of experience in ec dev

• 12 years as site-selection consultant

• Finalist: International E&Y Entrepreneur of the Year

• Led ROI as a Profit 50 company

• Founder of Gazelle.ai

Buffalo hunting

≠ economic

development

Still focused on

job numbers

and anchor

companies

Tight labor

markets =

reluctant local

stakeholders

Avg FDI Project

Size to the US

since 2013: 77

jobs!

WHO ARE YOUR TARGET GROUPS?

Current infrastructure, support and assets will make it more suited for some companies than others

Startups, spin-offs Small and mediumenterprises

Privately/publicly owned R&D centers

Business supportagencies

Research Question

• Rise of the Rest

• “Outsource” of innovation

• Cities investments in entrepreneurship and startup cultures

• 2017 Top 40 metro area for startup activity (Kauffman Foundation)

• 600% increase in VC Funding between 2008 and 2015

• Top 10 states for seed stage accelerators and incubators

2014-20182008-2013

$1,073.15

$3,761.55

St. Louis VC Funding

Gazelle.ai

• Companies that look to advance their products and services through technology transfer and collaboration

• Challenge of larger companies innovating, “outsourcing” innovation

• Startups as a way to support innovation of local companies and attract future investments

• Different models of collaboration• Joint ventures

• M&A

• Strategic Partnerships

• Investments

• …

• Case in point: Takeda Pharmaceuticals ( Japan) investing in Minneapolis facility, after investments and acquisitions in local startups

Turn your startups and local companies into local growth companies through partnerships

• Allows them a wider access to customers and market (and business) expertise

• Outside major VC hubs: • Lack of international exposure/networks

(Genome Startup Report 2018)

• Often investors are more conservative

• Fujitsu’s strategic partnership with Chicago startup Keyo for palm identification technology

• Cargill and Ecolab investing in Minneapolis accelerators to drive wider agrofood sector

• Kansas City fintech company C2FO receiving funds from global insurance giant Allianz

• Finding startups: on a per capita basis, VC also happens outside Silicon Valley and New York

• Midwest saw 1,300 companies seed funded in 6 years between 2010-2015 but 1,500 just in the past 3.5 years! (Gazelle.ai)

25 250 2,500 25,000

AK

HIMartinProsperityInstitute

• Mapping your assets to startups or growth companies!

• Finding collaborators/growth companies: established companies on featured lists, international!

• Tech transfer: university inventories of licensable technologies that your companies could access

• Newer/smaller startup hubs and VC ecosystems are different

• Focus on market feasibility and immediate profitability

• Often less consumer focused, different markets

• Even more need for international connections

• Don’t forget international startups!

• Key startup organizations in the ecosystem as they have the most visibility on companies in the target sectors: accelerators, investors, universities

• City and regional governmentorganizations and non-profits

• Local economic development groups focused on networking and business opportunities

• University incubators and technology parks: technological synergies?

• Researchers active in specific target technologies :

• Early signals on emerging hubs

• Technology transfer opportunities

• And of course events! Pitch competitions, tech conferences, etc.

Recent Growth Trends

Aggressive Pricing

Private equity injection /

DEBT

Higher productivity

New markets / customers

New products / services

Mergers & Acquisitions

• Change in C-level staffing

• Recruitment in non-traditional markets

• Employee benefits growth

• Expansion over the past 5-years

• Job posting intensity

• Web site translated

• Spike in social web activity

• Patent Applications

• New or changed addresses

• Acquisition / JV

• Cluster hot spots

• Later Stage VC funding

• Many startups lack international connections • Means that finding ways to provide global

market insights, networks, and even distribution assistance will be a welcome

• Use your international business and export divisions networks to connect

• Soft landing programs

Bottom Line: Need for different communication channels and industry intelligence

Nadine Jeserich | njeserich@gazelle.ai

Steven Jast| sjast@gazelle.ai