PARTNERSTAT MEMORANDUM Meeting Summary: Following Is a Summary of the Issues Discussed in the Partnerstat Meeting on September 1
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PARTNERSTAT MEMORANDUM Meeting Summary: Following is a summary of the issues discussed in the PartnerStat meeting on September 10, 2018. Information provided by the presenting organizations. 1 PARTNERSTAT MEMORANDUM Format: Partner Organization Stat Memos For each organization participating in PartnerStat, the following information is itemized and included, in this order: (1) Previous participation in PartnerStat: “Yes” means the organization has participated in at least one of the previous rounds of PartnerStat meetings. “No” means this is the organization’s first time participating in PartnerStat. (2) Programs, Events, Services, or Initiatives covered in City Contract: These are the activities that are included in the Scope of Work section of the organization’s contract with the City of Cincinnati. (3) Scope of Work: For each of the activities in the Contract’s Scope of Work, the following information is included: Description: Description of the program, event, service or initiative and how it contributes to the organization’s mission/goals. Outcomes: This is how the organization knows if the program, event, service or initiative was successful. KPIs/Results Metrics: This is the metrics tracked and reported to monitor the outcomes of the program, event, service or initiative (4) Budget: The organization’s 2018 and, if applicable, 2019 budget information for revenue and expenditures that highlights City versus non-City funding sources. (5) Leveraged Funds: This explains how the organization is leveraging City funding to grow its funding sources and the amount they have leveraged. (6) General Information: This section includes general information about the organization, including its mission, CEO and partners. 2 PARTNERSTAT MEMORANDUM CincyTech 1. Has this organization previously participated in PartnerStat? Yes 2. Programs, Events, Services, or Initiatives covered in City Contract: Business advisory and seed capital services 3. Scope of Work in Contract CincyTech monitors KPIs on a Calendar year. Business advisory and seed capital services Provides entrepreneurial assistance services to technology- focused enterprises in the City of Cincinnati to create and retain jobs and to promote the establishment of scalable technology companies The local entrepreneurial system is underdeveloped relative to its potential. Cincinnati lacks a significant number of experienced founders and executive level talent with company scaling experience. By engaging with founders and research institutions at the earliest stage of development, we are able to accelerate the region’s best opportunities. We remain engaged through investment and post-investment guidance as companies add resources and capital to reach their potential. Outcomes Capital invested is a key measure. We also review whether we have generated more than our annual grant amount ($250k for FY18) back to the City of Cincinnati from City income taxes from jobs at our companies located in the City (est. $454k in FY18). Key Performance Metrics The number one outcome is greater economic benefit for the City of Cincinnati. This may come through several means, including: capital invested in City of Cincinnati portfolio companies, job growth and higher city income taxes. There are also other qualitative benefits, such as revitalization of our urban core (i.e. Over-the-Rhine), attracting and retaining young professional talent from our local universities as well as those not originally from Cincinnati, and building an entrepreneurial class to support a sustainable ecosystem. 3 PARTNERSTAT MEMORANDUM 4. Budget CincyTech’s budget is on a Calendar Year cycle. 2018 4 PARTNERSTAT MEMORANDUM 2019: CincyTech has not yet drafted its FY19 contract with the City of Cincinnati. In addition, since our budget is on a calendar year, we typically approve our budget in our final Board meeting of the calendar year (Nov/Dec) time frame. 5. Leveraging Funds CincyTech receives a matching grant from the State of Ohio Third Frontier (Entrepreneurial Signature Program grant). It matches every dollar from the City with a dollar from the ESP grant. Total amount of other public or private funding leveraged from City funding: $250,000 ($1:$1 match with the State ESP grant) 6. General Information CincyTech transforms innovation into high performing life science and digital companies in Southwest Ohio. Our team provides advice and capital to entrepreneurs, helps research institutions commercialize technology through startups, and catalyzes investment from individuals and institutions into regional companies. Our companies create jobs, economic vitality and wealth in Southwest Ohio. Mission: To be a trusted partner in helping to transform ideas into high potential technology companies in Southwest Ohio Fiscal Year: 2018-01-01 to 2018-12-31 CEO: Mike Venerable Partners: Other local grantors provide operating money, similar to the City of Cincinnati, which is matched $1 for $1 by the Ohio Third Frontier program / ESP grant. In FY18, these local grantors are (in addition to the City of Cincinnati): Cincinnati Children’s Hospital, Cincinnati USA Regional Chamber, University of Cincinnati, PNC Foundation, Castellini Foundation, City of Mason, Greater Cincinnati Foundation, Thompson Hine, American Financial Group, City of Blue Ash, Meridian Bioscience, Frost Brown Todd, Dinsmore & Shohl, Keating Muething & Klekamp, LSI Industries and River Cities Capital Fund 5 PARTNERSTAT MEMORANDUM Cintrifuse 1. Has this organization previously participated in PartnerStat? Yes 2. Programs, Events, Services, or Initiatives covered in City Contract: Membership Syndicate Fund / Funding Connections BigCo Innovation / Customer Connections Union Hall Marketing 3. Scope of Work in Contract Cintrifuse monitors KPIs on a Fiscal year. Membership Cintrifuse looks for high-growth, technology-based startups to join its membership. Whether you’re just starting or your company has been around for a while, we provide entrepreneurs with the tools and services they need to get their startup where it needs to go. Without the growth and critical mass of startups - we can't fulfill the strategy to the mission we have been tasked to do. Outcomes Yes, over the past four years we have seen a 353% growth in the number of startups in the region. Key Performance Metrics Through looking at the growing number of startups as well as tracking their success to gain capital and customers. Number of Members o Active members: 317 D&I numbers for startups o Female-owned/led: 42 companies (13% of members) o AA-owned/led: 22 companies (7% of members) o Racial minority-led: 38 companies (12% of members) Number of employees o Total for all Cintrifuse members: 3820 Dollars raised and stage of startups o $890M raised by members . Ideation: 84 companies, 27% of members . Incubation: 95 companies, 30% of members . Market Entry: 87 companies, 27% of members . Product/Market Fit: 27 companies, 8% of members . Growth & Scale: 24 companies, 8% of members Number of new startups as members o New members 1H18: 82 6 PARTNERSTAT MEMORANDUM Syndicate Fund / Funding Connections The syndicate fund is the way we work and how we work. It not only allows local startups seeking funding access to Venture Capital - it also provides a pipeline of startups who can work with our region's corporations and ideally the startups will want to open offices here. This is mission critical. Without the Syndicate Fund we are not able to strategically build a tech based Outcomes Syndicate Fund (2014 to now as of September 2017) Dollars invested into the region: $143M In the past 4 years we have seen a 506% growth of outside dollars being invested into our region. Key Performance Metrics Syndicate Fund (2014 to now as of September 2017) Dollars invested into the region: $143M 7 PARTNERSTAT MEMORANDUM BigCo Innovation / Customer Connections New technologies are created every day and your company needs to stay ahead of the curve. From educational events to paid pilots with startups — Cintrifuse has multiple options for corporations looking for innovative solutions to solve their business challenges. Startups thrive when they are near their customers. This program strives to promote that our region is known for BigCos who work with startups. Outcomes Over the past 4 years we have helped connect startups and BigCos to conduct over 118 paid pilots. Key Performance Metrics Through the number of introductions and paid pilots. BigCo Innovation Number of paid engagements between BigCos and startups: 8 Dollars exchanged: 130K++ Union Hall Union Hall is a 38,000 sq. ft. building where disrupters come to roll up their sleeves and get to work. We are located in Cincinnati’s historic Over the Rhine neighborhood, a thriving beer-soaked powerhouse of culinary delight and entrepreneurial energy. Located just across from parking and around the corner from Washington Park, our space sits in the heart of the new, wrapped in the beauty of the old. Union Hall is the living room and business space to startups. It allows for expected and unexpected collisions leading to business growth. Outcomes The growth in numbers of residence and visitors Key Performance Metrics Attendance levels and room rentals. Union Hall Number of visitors: 3,140 Number of residents: 7,140 Total: 10,280 8 PARTNERSTAT MEMORANDUM Marketing Reaching out to those not engaged locally as well as promoting the region nationally and globally. Filling the top of the funnel critical mass needed. Outcomes Through the number of growing