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

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

! The Evergreen Fund Strategy FireSpring is a “pay-it-forward” • Proven sustainable model strategy where investments • Entrepreneur friendly into tech startups will be investment returned to FireSpring Fund • Convertible note • Equity upon follow-on and then reinvested in the next investment generation. • Follow-on investment • Economic impact Continuous investment in new technologies and companies. Investment in Startup ! Community Seed Company Funding + Growth Funding ! Accelerator ! Stage ! Company Exits = Return of Equity ! 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 Others Others? ! Broadband Broadband Virtual Reality Virtual Reality ! Digital and Digital and Mobile ! Mobile Tourism Tourism Related Related Photonics ! Photonics Gaming Gaming ! Technology Technology ! Lasers Lasers ! Hardware Hardware Integration ! Integration Simulation Simulation ! Software Software Development ! Development 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 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- Education Education ! stage funding. Business Business Supportive Supportive Resources / Resources / Community Community ! Accelerators Accelerators ! Tech Tech Entrepreneurs ! Entrepreneurs Industry Industry Associations Associations Co-working Co-working and and Spaces ! Spaces Organizations Organizations ! Late Stage Late Stage Funding ! Funding 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 How other communities have • 10,000+ direct FT jobs created • along with 4.1x multiplier benefited from an e ff ect of other job creation evergreen seed fund. • $270M economic benefit generated in 2014 alone • Follow on investment of 1.5B+ donna@firespringfund.org • 101 S. Garland Street, Orlando FL 32801

Comparable Funds • Cleveland, Ohio • Pittsburgh, Pennsylvania • Founded 2005 • Founded 1999 • 50 Active Companies • 125 Active Companies • 14 Exits • 21 Exits • 4,000+ jobs created • 5,000+ jobs created • Average investment $400k • Average investment $340k • Follow on investment • Follow on investment $1.5B approaching $1B Jumpstart is a nationally recognized non- profit in NE Ohio area and has worked with over 450 clients since 2005. Between 2010-2012 alone, the fund had a $688M+ economic impact to he NE Ohio community. 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 donna@firespringfund.org • 101 S. Garland Street, Orlando FL 32801

Our Market Software / Internet Manufactured Products Sustainable: Companies receiving 1st 8 6 Investment Tranche Returns of 27% Companies receiving 2nd 4 3 Investment Tranche Companies receiving 3rd or 2.6x 3 2 Investment Tranche Years to Exit 4 5 in 3.5 years Total Invested Per Company $225k $225k (3 Tranches) Total Investment Per Year $900k $675k FireSpring Ownership at 7% 5% Exit Estimated Company Exit $12M $18M Valuation FireSpring Aggregate $1.9M $1.6M Payout FireSpring Portfolio 2.11 2.38 Multiple 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 Software/Internet • Fuel that early-stage startups Manufactured need to bring their ideas to life Products • Funded accelerator program • 3 months • Mentors, education, programming • Result: Follow-on investment • Average investments $25k - $225k per company • Tranches based on success measures 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 Supporting Entrepreneurs what great Tech Hubs provide: 1 - Community Community Funding • Create an entrepreneurial friendly environment Programs • Sharing of ideas and innovation 2 - Programs • Accelerators, Incubators Help us support the third leg of the stool. • Strong University programs The first evergreen seed fund in Florida. Investing in our community. 3 - Funding • Funded Accelerators • Su ffi cient Capital • Seed Funding 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 Evergreen funds are a • Tech convergence community investment. • Integrated in all aspects of our lives • Local government, universities and foundations • Businesses and individuals • Returns donna@firespringfund.org • 101 S. Garland Street, Orlando FL 32801

FireSpring Team Advisors Attorney, Jonathan Kilman, Foley Organized as NFP & Lardner CPA, Melanie Fernandez, Cross, Executive Director Fernandez & Riley Donna Mackenzie www.firespringfund.org Board of Directors donna@firespringfund.org Dr. Thomas O’Neal, Associate 407-399-5137 Vice President of Research & Commercialization, UCF Kirstie Chadwick, CEO, NBIA Matching Fund Partners Gregg Pollack, Founder, Starter City of Orlando Studio, CodeSchool, Envy University of Central Florida Labs Rollins College Donna Mackenzie, Executive Starter Studio Director, FireSpring Fund Canvs Cari Coats, Rollins College Creative Village Center for Advanced Cross, Fernandez & Riley Entrepreneurship Attorney, David Mitchell Michael O’Donnell, Executive Jones Lang LaSalle Director, Florida Angel Nexus Group LM3 Rick Wassel Community crowd funding IQrlando/Florida Hospital donna@firespringfund.org • 101 S. Garland Street, Orlando FL 32801

Progress US EDA grant and matching funds FireSpring provides administrative support to raise the fund (2 years) (StarterCorps) was established April 2015 Kicko ff fundraising for the fund July 2015 US EDA grant $250k $1M by end of 2015 along with matching Invest in first group of startups funds from community January 2016 / with accelerator partners $120k+ committed so far Objective: raise, deploy, Supporters: EDA, UCF, Rollins, VC & Angel groups, EDC, City of manage $5M NFP Orlando and more evergreen fund over 2 Similar funds started with modest years funds but raised over $20M within first 10 years 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 other community leaders • This is an urgent investment in our community $100,000 in 2015 to help fund • Funds will be used to invest in tech startups beginning Jan first round of Starters 2016 in early 2016 • Fueling creativity, innovation and opportunity donna@firespringfund.org • 101 S. Garland Street, Orlando FL 32801