John Michitson

Haverhill City Council

October 1, 2013

Build up regional start-up ecosystems and communities of innovation ◦ To bring 21st century economic opportunities to underserved

regions

Building a strong mentoring capability is a key component ◦ Entrepreneurs and startups gain knowledge from successful

business executives, serial entrepreneurs, investors, and other industry leaders

◦ Example topics: Understanding the marketplace;

Attracting capital;

Finding legal, accounting, and other support services;

Navigating the trajectory from startup to growth company

Up to $150K for winners

Haverhill submitted proposal last week

Uncertain when winners will be announced

A Cluster of Entrepreneurs and Talented Workers

A Robust and Engaged Education Network and Mentors

Collaborative Business Practices and Tools

Access to Capital Resources, and Local and

Global Markets

Vision,

Leadership &

Social Capital

Creative Facilities for Rapid Prototyping & Collaboration

Critical Elements of Innovation Ecosystem

Of 134 Massachusetts municipalities surveyed for concentration of

manufacturing jobs, Haverhill ranked #85, with 44 jobs in

manufacturing per 1000 Residents. How do we compare with some

other nearby communities? Andover #1 (340/1000…Nearly 8 times Haverhill) Wilmington #3 (291/1000…6.6 times Haverhill) Bedford #9 (177/1000…4 times Haverhill) Billerica #12 (138/1000…3.2 times Haverhill) Chelmsford #16 (122/1000…2.8 times Haverhill) Amesbury #33 New Bedford #38 Ipswich #42 Lawrence #60 (64/1000…45% higher than Haverhill)

HAVERHILL #85 (44/1000) Lowell/ Methuen (37/1000…19% below Haverhill)

We are an underserved region.

Source: “Staying Power II: A Report Card on Manufacturing in Massachusetts 2012”

Manufacturing companies and other businesses follow the startups to be near “the ideas”

Goal: create 1000 new jobs and attract $3M in new revenue to Haverhill’s industrial base by 2020

Computer & Research Drive: • 2 Lots • Each Lot is $250K Recurring Revenue Opportunity

Hilldale Business Park: • Several

undeveloped Lots

• MVPC Priority Area for Development

Example Opportunities

Creativity of the proposed mentoring approach in addressing your region’s unmet need

Serving its broader innovation ecosystem ◦ Advance, or scale-up activities that embed

mentoring as a key support of broader value-add efforts

Aligning with other innovation-driven economic development efforts in your area ◦ Particularly those already supported by state

investments

The Haverhill Team (H³C)

Strengthen the Haverhill Hardware Horizons Challenge (H³C) startup competition ($10K)

◦ To be a sustainable program to attract and retain entrepreneurs and startups

◦ Entrepreneurs and startups are needed as a pre-requisite to mentoring;

Build upon the twenty-five mentors that participated in the H³C;

Build-out the unique Lightspeed MFG manufacturing accelerator and mentoring Lab

◦ Provided top three winners in H³C with up to a half dozen free printed circuit board versions culminating with a working prototype ready for production;

Build-out the Burgess Business Center incubator and mentoring Lab for face to face collaboration and mentor training

◦ Result – in 2 years using innovation-based marketing, attracted 32 startups and small companies, occupying over 30,000 sq. ft. in its building;

Develop an on-line mentor capability based on open innovation

◦ “Ask the audience”;

$246K in-kind matching “funds”

Snapshot of Mentoring Capability Build-Out

H³C Startup Competition

• $25K prize to winner

• Professional Partnering Advisor

• Professional Marketing for contest & recruiting businesses to Haverhill

Burgess Business Center Incubator & Mentoring Center

• 2500 sq. ft. of leased space for mentoring center (to start with)

• Unique shared space concept for sustainability (startups, manufacturing companies & mentors co-located)

• Professional mentoring development manager

• Mentor training

• On-line mentoring (ask the crowd) (in-kind)

Lightspeed MFG

• Professional manufacturing advisor

• Capital Equipment Improvement (in-kind)

• Purchase of Bare Printed Circuit Boards and Tooling (in-kind)

• Purchase of Component Level Packages (in-kind)

Mentoring Development Plan

• Catalogue all potential sources of mentors, including: – H³C mentors, – Chamber of commerce, – Local companies such as Lightspeed and Burgess tenants, – Retirees in Haverhill and region;

• Develop communication strategies to raise awareness of the project and identify prospective mentors and start-ups;

• Ensure that this project is visible in key networks, including MassChallenge and Merrimack Valley Sandbox;

• Develop strategies to maximize creative interaction in physical "workspace clusters"

• Define and organize the entry process for mentors and start-ups--intake interview, orientation, matching process, and ongoing training opportunities (in co-ordination with NECC);

[Source: PariSoma in San Francisco]

Backup

Maximum grant award: $150K ◦ Professional mentoring development manager: $25K ◦ Professional partnering advisor: $25K ◦ Professional manufacturing advisor: $25K ◦ Marketing consultant: $20K ◦ Lease floor space (1 year): $15K ◦ Prizes in next H³C startup competition: $25K ◦ Administration: $15K

In-kind matches: $246K ◦ Lightspeed MFG: $163K ◦ Inkling Inc.: $25K ◦ Jim DiBurro: $25K ◦ John Michitson: $25K ◦ Randy Sablich: $7.5K