Orange County Board of County Commissioners I G N I T I N G I N N - - PowerPoint PPT Presentation

▶
orange county board of county commissioners
SMART_READER_LITE
LIVE PREVIEW

Orange County Board of County Commissioners I G N I T I N G I N N - - PowerPoint PPT Presentation

Aug 15, 2023 282 likes •458 views

Bridging the Funding Gap: From Innovation to Growth. Orange County Board of County Commissioners I G N I T I N G I N N O V A T I O N . Donna Mackenzie Executive Director July 14, 2015 FireSpring Not-for-profit Evergreen Seed Fund

slide-1
SLIDE 1

I G N I T I N G I N N O V A T I O N .

Donna Mackenzie Executive Director

July 14, 2015

Orange County Board of County Commissioners

Bridging the Funding Gap: From Innovation to Growth.

slide-2
SLIDE 2

donna@firespringfund.org • 101 S. Garland Street, Orlando FL 32801

FireSpring Not-for-profit Evergreen Seed Fund

FireSpring will provide early-seed capital to early- stage technology companies in Central Florida.

  • Established through $250k US EDA grant + community matching funds
  • $5M evergreen seed fund to be raised over two years
  • Evergreen, profits reinvested - Pay-it-Forward Strategy
  • Sustainable model drives 2.6x+ returns
  • Drives economic development
  • Growth in high-value jobs
  • Unique and highly skilled workforce
  • Expansion of tech community into other sectors
  • 4.1 additional jobs created for every tech job
  • Drives incremental tax revenue for the region
  • Attracts risk capital investors
  • Investing in our community
slide-3
SLIDE 3

donna@firespringfund.org • 101 S. Garland Street, Orlando FL 32801

The Evergreen Fund Strategy

  • Proven sustainable model
  • Entrepreneur friendly

investment

  • Convertible note
  • Equity upon follow-on

investment

  • Follow-on investment
  • Economic impact

FireSpring is a “pay-it-forward” strategy where investments into tech startups will be returned to FireSpring Fund and then reinvested in the next generation. Continuous investment in new technologies and companies.

! Community Funding!

Investment in Startup! Company Growth Stage! Company Exits = Return of Equity! Seed Funding + Accelerator!

slide-4
SLIDE 4

donna@firespringfund.org • 101 S. Garland Street, Orlando FL 32801

Central Florida’s Growing Tech Community

The missing key element is early-stage funding that:

  • Entrepreneur friendly investment
  • Invests before Angel or Venture Capital
  • Prepares companies for additional investment

Foundation is built and the time is right

  • Accelerators, incubators, tech co-working space, tech associations and support

New sectors

  • We need to get in front of what’s next
  • Not catch up role

Hardware Hardware Integration Integration! Virtual Reality Virtual Reality! Tourism Tourism Related Related Technology Technology! Others Others?!

Software Software Development Development! Simulation Simulation! Gaming Gaming! Photonics Photonics! Lasers Lasers! Broadband Broadband Digital and Digital and Mobile Mobile!

slide-5
SLIDE 5

donna@firespringfund.org • 101 S. Garland Street, Orlando FL 32801

Florida’s Investment Environment

  • 3rd largest state in the country
  • 7th in total venture capital

raised or 1.8% of total capital

  • 18th in early-stage capital

investments

  • Received less than 0.5% of all

seed fund investments in the US

slide-6
SLIDE 6

donna@firespringfund.org • 101 S. Garland Street, Orlando FL 32801

FireSpring “Completes the Picture”

Central Florida community has many valuable resources for tech start-ups but is lacking early- stage funding.

Tech Tech Entrepreneurs Entrepreneurs! Education Education! Business Business Resources / Resources / Accelerators Accelerators! Co-working Co-working Spaces Spaces! Late Stage Late Stage Funding Funding! Industry Industry Associations Associations and and Organizations Organizations! Supportive Supportive Community Community!

slide-7
SLIDE 7

donna@firespringfund.org • 101 S. Garland Street, Orlando FL 32801

Bridging the Funding Gap: From Innovation to Growth.

Examples of benefits:

  • Expecting up to 40% return in

just 10 years

  • 10,000+ direct FT jobs created
  • along with 4.1x multiplier

effect of other job creation

  • $270M economic benefit

generated in 2014 alone

  • Follow on investment of 1.5B+

How other communities have benefited from an evergreen seed fund.

slide-8
SLIDE 8

donna@firespringfund.org • 101 S. Garland Street, Orlando FL 32801

Comparable Funds

  • Pittsburgh, Pennsylvania
  • Founded 1999
  • 125 Active Companies
  • 21 Exits
  • 5,000+ jobs created
  • Average investment $340k
  • Follow on investment $1.5B
  • Cleveland, Ohio
  • Founded 2005
  • 50 Active Companies
  • 14 Exits
  • 4,000+ jobs created
  • Average investment $400k
  • Follow on investment

approaching $1B

Jumpstart is a nationally recognized non- profit in NE Ohio area and has worked with

  • ver 450 clients since 2005.

Between 2010-2012 alone, the fund had a $688M+ economic impact to he NE Ohio community.

slide-9
SLIDE 9

donna@firespringfund.org • 101 S. Garland Street, Orlando FL 32801

Central Florida’s 1st Funded Accelerator

Seed Funding + Accelerator

  • Collaboration with accelerators, co-working space, tech associations
  • Canvs, Orlando, Orange County
  • Leverage experience of Starter Studio Accelerator to create advanced

accelerator program

  • Three phases or tranches of seed funding based on aggressive progression

towards customers and revenue

  • Active mentoring by experienced startup veterans, programs and education
  • Intense preparation for approaching Angel and Venture Capital groups

throughout the Southeast

  • Culminating in investor showcase event
slide-10
SLIDE 10

donna@firespringfund.org • 101 S. Garland Street, Orlando FL 32801

Our Market

Sustainable: Returns of 27%

  • r 2.6x

in 3.5 years

Software / Internet Manufactured Products Companies receiving 1st Investment Tranche 8 6 Companies receiving 2nd Investment Tranche 4 3 Companies receiving 3rd Investment Tranche 3 2 Years to Exit 4 5 Total Invested Per Company (3 Tranches) $225k $225k Total Investment Per Year $900k $675k FireSpring Ownership at Exit 7% 5% Estimated Company Exit Valuation $12M $18M FireSpring Aggregate Payout $1.9M $1.6M FireSpring Portfolio Multiple 2.11 2.38

slide-11
SLIDE 11

donna@firespringfund.org • 101 S. Garland Street, Orlando FL 32801

FireSpring Evergreen Seed Fund Investment Methodology

  • Potential for broad national

and/or international reach

  • Located in Central Florida
  • Orange County
  • Fuel that early-stage startups

need to bring their ideas to life

  • Funded accelerator program
  • 3 months
  • Mentors, education,

programming

  • Result: Follow-on

investment

  • Average investments $25k -

$225k per company

  • Tranches based on success

measures

Software/Internet Manufactured Products

slide-12
SLIDE 12

donna@firespringfund.org • 101 S. Garland Street, Orlando FL 32801

The Future of our Tech Community

To be competitive in attracting and retaining talent and entrepreneurs we must provide what great Tech Hubs provide:

1 - Community

  • Create an entrepreneurial friendly environment
  • Sharing of ideas and innovation

2 - Programs

  • Accelerators, Incubators
  • Strong University programs

3 - Funding

  • Funded Accelerators
  • Sufficient Capital
  • Seed Funding

Help us support the third leg of the stool. The first evergreen seed fund in Florida. Investing in our community.

Supporting Entrepreneurs Community Programs Funding

slide-13
SLIDE 13

donna@firespringfund.org • 101 S. Garland Street, Orlando FL 32801

Market Strategy

  • Community project
  • The future of our community -

plant the seed

  • Creative economy
  • Next generation of workers
  • Tech convergence
  • Integrated in all aspects of
  • ur lives
  • Local government, universities

and foundations

  • Businesses and individuals
  • Returns

Evergreen funds are a community investment.

slide-14
SLIDE 14

donna@firespringfund.org • 101 S. Garland Street, Orlando FL 32801

FireSpring Team

Organized as NFP Executive Director Donna Mackenzie www.firespringfund.org donna@firespringfund.org 407-399-5137 Matching Fund Partners

City of Orlando University of Central Florida Rollins College Starter Studio Canvs Creative Village Cross, Fernandez & Riley Attorney, David Mitchell Jones Lang LaSalle Group LM3 Community crowd funding

Advisors

Attorney, Jonathan Kilman, Foley & Lardner CPA, Melanie Fernandez, Cross, Fernandez & Riley

Board of Directors

  • Dr. Thomas O’Neal, Associate

Vice President of Research & Commercialization, UCF Kirstie Chadwick, CEO, NBIA Gregg Pollack, Founder, Starter Studio, CodeSchool, Envy Labs Donna Mackenzie, Executive Director, FireSpring Fund Cari Coats, Rollins College Center for Advanced Entrepreneurship Michael O’Donnell, Executive Director, Florida Angel Nexus Rick Wassel IQrlando/Florida Hospital

slide-15
SLIDE 15

donna@firespringfund.org • 101 S. Garland Street, Orlando FL 32801

Progress

US EDA grant and matching funds provides administrative support to raise the fund (2 years) Kickoff fundraising for the fund July 2015 $1M by end of 2015 Invest in first group of startups January 2016 / with accelerator $120k+ committed so far Supporters: EDA, UCF, Rollins, VC & Angel groups, EDC, City of Orlando and more Similar funds started with modest funds but raised over $20M within first 10 years

FireSpring (StarterCorps) was established April 2015 US EDA grant $250k along with matching funds from community partners Objective: raise, deploy, manage $5M NFP evergreen fund over 2 years

slide-16
SLIDE 16

donna@firespringfund.org • 101 S. Garland Street, Orlando FL 32801

Funding request

  • Success = community

involvement

  • Community partners to provide

the foundation for the fund

  • The first $1M
  • OC brings partnership with
  • ther community leaders
  • This is an urgent investment in
  • ur community
  • Funds will be used to invest in

tech startups beginning Jan 2016

  • Fueling creativity, innovation

and opportunity

$100,000 in 2015 to help fund first round of Starters in early 2016

slide-17
SLIDE 17

donna@firespring.org • 101 S. Garland Street, Orlando FL 32801

“If you aren’t careful to build an ecosystem where there are connections to capital and resources ... you are not creating something here, you are creating something that helps the Valley. That’s the brain drain.”

  • Carla Mays, Mays Civic Organization http://www.miamiherald.com/news/business/article27083752.html