April 28, 2015

David Gossack

Minister Counselor

Commercial Section

U.S. Embassy Korea

D. CAMP Startup Roundtable

Our job is simply to help create the conditions that foster America’s entrepreneurial spirit.

U.S. Secretary of Commerce Penny Pritzker.

Startups are Vital to Economic Growth

New companies are responsible for creating a majority of the new jobs in the United States and created more than 65 percent of net new jobs over the past two decades. Startups in high-tech hubs like Austin account for over 40 percent of new jobs each year.

US Entrepreneurial Ecosystem

In 2013, an estimated 25 million Americans were starting or running newbusinesses, and 7.7 million projected they would employ six or more people inthe next five years

The United States consistently exhibits one of the highest entrepreneurship rates in the developed world. affecting the U.S. economy in terms of both current and future employers.

Nearly 13% of the U.S. working age population was in the process of starting or running a new business—the highest entrepreneurship rate reported among the 25 developed economies that participated in GEM (Global Entrepreneurship Monitor) 2013 among North America, Europe, and Asia

US Entrepreneurial Ecosystem

Americans have the most positive views yet about the environment forentrepreneurship around them approximately 47% of Americansbelieve there are good opportunities for starting a business

In 2013, 56% of Americans believed they had the capabilities to launch a business—a remarkably stable indicator despite the recent economicturbulence, and the highest level among the 25 developed economies assessed in 2013.

US Entrepreneurial Ecosystem

Hundreds of Startup Incubators, Accelerators, and Clusters across the USA. Often close to major research universities or major corporations

Government support from states and cities, including many states offering tax benefits to startups and angel investors

Not “One Size Fits” All: The US has a variety of ecosystems with specific characteristics:

• Silicon Valley Biggest throughput, strong early stage funding ecosystem, more

experienced, mentors, most ambitious and high risk

• New York Diverse, niche focus, marketplace and social network focus and high

risk

Not Supported by Government

Entrepreneurial Infrastructure

The Department of Commerce is responsible for helping to create the essential Infrastructure of Opportunity for Entrepreneurs:

Issuing patents that protect intellectual property

Making investment in local economic development

Collecting and disseminating data to inform better decision

making

Expanding access to broadband

Helping companies reach international customers

Protecting a free and open Internet

US Entrepreneurial Ecosystem

Programs by the Department of Commerceto Support Startups

President’s Ambassadors for Global Entrepreneurship (PAGE)• Public-private partnership• Brings together 11 of America’s top entrepreneurs to mentor and

inspire young people and start-ups across the country and around world

Startup Global• Provides the know-how and technical assistance to export

Economic Development Administration’s Regional Innovation Grants• For regions to establish seed-capital funds for promising startups

Department of Commerce Supporting

Innovation Ecosystem

National Network for Manufacturing Innovation (NNMI)• Provides companies with access to cutting-edge technologies

Regional Innovation Strategies Program• Provided by Economic Development Administration (EDA)• Provides grants to communities for programs and capital to assist

entrepreneurs in getting innovations from idea to market• Commerce will be investing US$ 15 million in programs that support

entrepreneurs and inventors

Competition to encourage and reward universities and research centers to create proof of concept centers that identify innovations to commercialize and help them to put together the building blocks to create high growth, successful companies, leveraging private funds

2010 Winners: Innovation Works/Carnegie Mellon; Georgia Tech GCMI; New Mexico Tech Ventures, University of Akron/Austen BioInnovationInstitute; The St. Louis Biogenerator and Oregon Translational Research & Drug Development Institute.

EDA’s i6 Challenge

Department of CommerceSupporting Data

The Department of Commerce is the biggest repository of public data

Commerce produces more data that is used by the private sector–in a range of industries-than any other government agency Open Data Initiative: make more data available to the public and to businesses to utilize in creating data-driven propriety products and services using data from Census Bureau, National Weather Service, DHHS, run by new Chief Data Officer

By adopting an end-user approach to data By knowing out users and identifying new users By actively engaging our new Data Advisory Council By engaging coders and non coders through GitHub By broadly adopting an open API data dissemination strategy

Startup Global

New Initiative February 2015 – designed to help more startup firms think global from the earliest stages of growth

Successful startups are positioned to sell to overseas markets

• Are at the cutting edge of commercial innovation• Have unprecedented potential for expansion in global market due to technology

and communications advances

Many startups today “born global”

• E-commerce making it easier to reach international customers and ensure payment

• Entrepreneurs are using technology and creating a paradigm shift in the exportprocess

Example: An estimated 97% of eBay sellers are doing business internationally

Startup Global

Findings from research in startup hubs throughout the USA:

The government must build greater awareness of services and information to help early-stage companies do business globally

The government needs to refine export assistance and evolve to address the distinctive and time-sensitive needs of startup companies

U.S. Department of Commerce now partnering with U.S. business incubators and the start-up community to provide the know-how and technical assistance they need to export their goods and services.

Goal: To enable business incubators and accelerators to provide resources to their members to tap the global customer base – the customer base of the future

US Entrepreneurial Ecosystem

500 Startups www.500.co

Y Combinator www.ycombinator.com

Coinvent Startup Forum http://coinvent.co/events/forum0203

Ultra Light Startups http://ultralightstartups.com/

SAP Startup Forum http://startupfocus.saphana.com/sap-events/

Venture+ Forum http://www.mhealthsummit.org/venture-forum

Kauffman Foundation http://www.kauffman.org/

MIT Enterprise Forum http://mitefdc.org/

Why the State Department Supports Entrepreneurship

The U.S. State Department coordinates engagement with global partners to support and strengthen entrepreneurship. Entrepreneurship is a means to relieve poverty, sustain economic prosperity, and promote greater economic participation by women and youth. Programs are both bilateral and regional in scope with a strong emphasis on Public Private Partnerships

U.S. Government Spark initiative Best U.S. Government Programs advancing entrepreneurship Commitment to generate at least $10 million dollars over three years

for emerging entrepreneurs, with more than half raised by womenand young entrepreneurs.

The initial commitments toward this goal totaled over $1 billiondollars that would be generated by the end of 2017.

State Department Programs

Global Entrepreneurship Program (http://www.state.gov/e/eb/cba/entrepreneurship/gep/index.htm)

Global Entrepreneurship Summit – July 24-26 in Nairobi, Kenya

Global Innovation Through Science and Technology (GIST) (http://www.gistnetwork.org/)

GIST TechConnects, GIST Startup BootCamps, GIST Tech-I Competitions

86 emerging countries, currently does not including Korea.

International Visitor Leadership Program (IVLP)

Women’s Entrepreneurial Centers of Resources, Education, Access,and Training for Economic Empowerment (WECREATE)

Other regional programs and bilateral programs

Additional Links

New Startup Global initiative that provides technical assistance to US startups on how to export (http://www.commerce.gov/news/press-releases/2015/04/commerce-department-launches-first-startup-global-pilot-event-help-young)

PAGE program (www.commerce.gov/PAGE)

EDA investments in Regional Innovation Strategies (i6 and seed fund investments) (http://www.eda.gov/oie/files/2014-risp-overview.pdf)

Description of NACIE, which advises the Administration on how to best support innovation and entrepreneurship (http://www.eda.gov/oie/nacie/

Thank You