SBA's Growth Accelerator Competition

Small Business AdministrationOffice of Investment and Innovation

SBA’s Growth Accelerator CompetitionOverview: 2014 & 2015

http://sba.gov/accelerators



Small Business Administration2

Accelerators – The What & WhyCompetition Quick Facts

2

The U.S. Small Business Administration is running a competition for accelerators and other entrepreneurial ecosystem models to compete for monetary prizes of $50,000 each.

To award the prizes, an expert panel of judges considered each applicant’s mission, founding team and business goals among other items.

The panel gave particular attention to, and the SBA encouraged, applicants that fill geographic, industry or other underrepresented gaps in the accelerator and entrepreneurial ecosystem space in the USA.

The prize money is intended to provide with supplemental and critical capital to the operating budgets of entrepreneurial ecosystems across the land. With access to capital via this highly competitive process, applicants will have a better opportunity to scale up or launch something completely new.

The basic tenet is simple: the startup world and a portfolio’s survival is driven by a game of numbers. More quality startups supported by more well-funded entrepreneurial ecosystems leads to successful startups growing into competitive, exciting and high-value job creators.

For the purposes of this competition, “Accelerators” included accelerators, incubators, co-working startup communities, shared spaces or other models that accomplish the same end goal.

Selective process to choose participating startups

Regular networking opportunities offered to startups

Introductions to customers, partners, suppliers, advisory boards and other players

High-growth and tech-driven startup mentorship and commercialization assistance

Shared working environments focused on building a strong startup community

Resource sharing and co-working arrangements for startups

Opportunities to pitch ideas and startups to investors

Small amounts of angel money, seed capital or structured loans to startups

We expect applicants

and winners will have

most if not all of these 8

elements


What Happened in 2014 $2.5M total encompassing 50 awards of $50,000 each 832 accelerators submitted applications from every

state except Alaska (plus DC and Puerto Rico) 100 finalists were whittled down by a panel of experts 50 winners were selected by the judges in September

2014 Of the 50 winners:

7 are in rural America 9 were launching new 11 different sectors


Data – Information – KnowledgeWhat We Have

832 Applicants

~ 600 Players

100 Finalists

50 Winners Above plus:quarterly reporting.

Above plus:videos and pitch decks.

Above plus:pitch decks and basic demographic info.

Basic demographic information

1st Screen

2nd Screen

3rd Screen


What Happened in 2014


Baseline of the fifty 2014 Winners as reported to Congress


2014 Winners: Q1 Results 50 accelerator winners raised a total of $57.6M

$2.5M through the 2014 competition $55.1M through other sources 70% of winners raised funds from family, friends, and

used unconventional sources such as crowds, social networks, and angel funding

Ecosystems Capital invested into start-ups:

By Accelerator: $12.6M By Other Sources: $535.1M

Jobs created: 5,121


2014 Winners: Q2 ResultsExecutive Summary - Metrics

The Applicant FunnelApplicants 832Finalists 100Winners 50Yield 1 in 17

Winner StatsWomen 32%Underserved 14%Rural 14%New 18%

Industry Focus*General/All 40%Tech/Science 36%Healthcare/Medical 10%Manufacturing 6%Education 6%Agricultural 6%Food,Beverage,Hospitality 6%Biotech 4%Energy 4%Tourism 4%Other 14%


2014 Winners: Q2 Results, cont’dCollective Baseline**Median & Average Inception Year for Winners 2013Total Accelerator Competition Prize $2,500,000.00External capital raised by accelerators collectively $18,512,862.00Median external capital per accelerator $50,000.00Average external capital per accelerator $370,257.24Ratio of external capital to prize awards 307 to 1Professional investor funded 14%Corporation(s) funded 40%Family/Friends/Angels & Other funded 52%Fed/State/City Government collectively funded 50%Fed/State/City Individually funded 4% / 20% / 26%Startups launched 224Startups currently housed 391Total Startups 615Total Applications 4834Yield 1 in 8Capital Invested into Startups by Accelerators $7,342,566.00Capital Invested into Startups by any other source $27,616,494.00Average capital into each startup by all sources $56,844.00Total jobs created and/or sustained by startups 861Average jobs per startup 1.4Average investment per job (imputed) $40,602.86Jobs created by accelerators themselves 128.25Average jobs per accelerator 2.6


2014 Winners: Q3 Results


2014 Winners: Q4 Results (One Year Timeline)

Executive Summary - MetricsNumber of jobs created by your startups 1622.5Number of individuals employed by your accelerator 172Dollars raised by your accelerator from outside investors (excluding the $50,000 you received from the SBA). 21,979,091.00$ Dollars raised by your startups from outside investors 189,082,824.00$ Dollars invested in your startups by your accelerator 9,723,433.00$ Number of startups graduated and/or exited from your accelerator 663Number of startups in your current cohort 366Number of startup applications received 8866


2015 Outreach One-Pager


What Happened in 2015

Status & Update - Timeline

• 400+ applications received by JUNE 1 • 1st Round Judging Completed on JUNE 30• 2nd Round Judges whittled down to 80 winners on JULY 27 • Culmination with winners being announced @ White House Demo Day AUGUST 4• $50,000 prizes to wired to winners before SEPTEMBER 30

Status & Update - FACTOIDS

• 50 States, DC and Puerto Rico Applied in 2015

• 46 states sent more than one application (not including: MN, OK, RI, WY)

• The 10 states with the most applications represent over 49% of all applications

• Percent of 2014 50 winners that applied in 2015 – 70%

• Percent of 2015 applicants that also applied in 2014 – over 42%

• Percent of applications that were new in 2015 – over 57%


Examples: Hera Labs & PowerMoves NOLA

https://vimeo.com/133203055 https://

vimeo.com/candlelightfilms/review/132984510/c7beb1c992

https://vimeo.com/133203055

https://vimeo.com/133203055

https://vimeo.com/candlelightfilms/review/132984510/c7beb1c992




2014 vs. 2015 Winners: Snapshot

Statistic Population Percentage Notes# of States Represented (2014) 30 60.00 plus DC & PR# of States Represented (2015) 39 78.00 plus DC & PRTotal Number of States Represented (2014 + 2015) 43 86.00# in Power+ (2015) (WV, KY, TN, MS) 5 5.68# in Rural Counties (2015) (<50,000) 14 15.91# Brand New Winners 68 85.00# Won in 2015, but not 2014 26 32.50# Repeat 2014 & 2015 Winners 12 15.00# Focused on Marketing/Manufacturing 24 30.00# Owned by Women 39 48.75# Owned by Minorities 21 26.25# Focused on Women 21 26.25# Focused on Underserved 36 45.00# Focused on Veterans 13 16.25


2015 Winners: Q1 Metrics

Executive Summary - MetricsNumber of jobs created by your startups 13906.25Number of individuals employed by your accelerator 403.25Dollars raised by your accelerator from outside investors (excluding the $50,000 you received from the SBA). 218,420,549.00$ Dollars raised by your startups from outside investors 809,548,800.00$ Dollars invested in your startups by your accelerator 38,580,080.00$ Number of startups graduated and/or exited from your accelerator 2349Number of startups in your current cohort 929Number of startup applications received 11905


2016 Growth Accelerator Fund Competition: Partners

OII (SBA) ONAA (SBA) OVBD (SBA) NIH NSF ED USDA IDB


2016 Growth Accelerator Fund Competition: Proposed Timeline

SBA's Growth Accelerator Competition

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