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Powering New York ’ s Startup Ecosystem: An Economic Impact Analysis of NYU-Poly ’ s Incubator Initiatives

Powering New York ’ s Startup Ecosystem: An Economic Impact Analysis of NYU-Poly ’ s Incubator Initiatives.

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Powering New York ’ s Startup Ecosystem: An Economic Impact Analysis of NYU-Poly ’ s Incubator Initiatives

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  1. Powering New York’s Startup Ecosystem:An Economic Impact Analysis of NYU-Poly’s Incubator Initiatives

  2. “We want New York City to be the most welcoming city in the country for people who want to start a business. The incubator program is a prime example of what government can do to help create that environment and spur job creation.”-NYC Mayor Michael R. Bloomberg, August 18, 2011 launching New York City’s First Sponsored Incubator at 160 Varick St.

  3. Study Overview: NYU-Poly IncubatorsChanging The Landscape of a City for the Better • Creating Successful Businesses • Creating Jobs • Revitalizing the Local Real Estate Market • Supporting Entrepreneurship • Generating Wealth

  4. TheModel • Tackling Common Friction Points: • Lack of Funding • Lack of Affordable Space • Hard to Find Engineering Talent • Inadequate Information Infrastructure • Helping Startups Achieve ‘Escape Velocity’ through: • Capital • Customers • Expertise • Service • Multiplied by Community

  5. Timeline • 2009 Two incubators launched in Hudson Square, Manhattan • “Varick Street Incubator” • “NYC ACRE” (Accelerator for a Clean and Resilient • Economy) • 2012 Third incubator opens in DUMBO, Brooklyn • “DUMBO Incubator”

  6. NYU Poly Incubators by the Numbers • 3Incubators • 102 Total companies in the incubators since 2009 • 900 Total jobs generated by incubator activity • 59 Companies currently in the incubators • 35 Companies graduated to a larger space in NYC • 5 Companies acquired • $ 60M Raised by incubator companies to date

  7. Some Additional Facts Varick Street Fosters: Adtech, cyber security, financial tech, information tech and social media startups Current tenants: 30 Graduates: 26 NYC ACRE Fosters: Clean tech and green energy startups Current tenants: 10 Graduates: 8 DUMBO Fosters: digital media, mobile and gaming startups Current tenants: 19 Graduates: 1

  8. Spotlight: NYC ACRE NYC’s Flagship Accelerator for a Clean and Resilient Economy • NYC ACRE began with a grant from NYSERDA to NYU-Poly which has been extended through 2017 • Focus on capital efficient, IT driven energy-related tech • 9 ACRE companies were selected for NY Greentech 50 List • 112 new full-time jobs created • 10 current tenants • 8 graduates • 2 acquisitions • Interest from international clean energy companies establishing a US HQ • $22.7 million raised to date

  9. Advisors InakiBerengeur: Co-Founder, PixableOwen Davis: Managing Director, NYC Seed Shelley Harrison Ph.D: Senior Advisor, Coller Capital HabibKairouz: Managing Partner, Rho Ventures Evan Korth: Co-Founder, HackNY; Associate Prof. NYU Courant Peter Nager: Senior Managing Director, Egret Capital Laurie Racine: Founder, Managing Director, Startl Ventures Frank Rimalovski: Managing Director, NYU Innovation Venture Fund Mark Wachen: Managing Director, DreamIt NYC

  10. The survey was conducted from October 2012-January 2013. (All statistics are as of December 2012.) Went to 102 tenants, current and previous. 35 companies responded (a 30% response rate) 24 current tenants 11 graduated companies One-on-one interviews with six selected companies IMPLAN multipliers used Team led by Dr. Jill Kickul at NYU Stern and supporting members from Harley & Co. and ZainYousaf; experience analyzing incubators all over the world Economic Impact Analysis: Methodology

  11. Incubators are drivers of significant economic activity Foster production of ground breaking technologies in diverse industry sectors Benefit businesses through public/private participation and academic resources Strengthen NYU-Poly academically Create Good Jobs Attract Significant Capital Key Findings

  12. Economic Impact • Through both direct and indirect job creation, taxes and spending, the incubators have had an economic impact of $251.2 million as of December 2012 • By 2015, the impact is projected to be $719.8 million

  13. Projected Economic Impact: Multipliers Applied

  14. Projected Economic Impact: Multipliers Applied • All data is cumulative and based on extrapolation of survey data to produce employment estimates encompassing all incubator companies • Indirect and total job estimates and economic impact based on IMPLAN multipliers

  15. Strong Job Creation • As of December 2012, NYU-Poly Incubators have created 900 jobs • By 2015, NYU-Poly Incubators will have created nearly 2,600 jobs • The average graduate of NYU Poly incubator earns $72,230 a year • It is estimated that former and current NYU Poly Incubator members contributed $31.4 million in tax revenue from 2009 to 2012

  16. Projected Tax Revenues Tax figures include personal (payroll, income, etc.) and business taxes

  17. Capital Raised • The average funding growth rate for current tenants is 147% • There is no shortage of capital once startups leave the incubators • More than $60 million in private funds has been raised by incubator companies to date

  18. Capital RaisedAverage Annual Funding and Revenues by Year

  19. Strengthening Local Economies • 100% of companies surveyed stated that their firm is headquartered in the NY/NJ region • Once they graduated our companies go on to lease an average of 1,671 square feet in New York City

  20. New York’s Tech Scene is Growing 1 - San FranciscoTotal Startups: 3,442; Apple, Facebook, Google, Twitter$11.8 billion invested in 430 companies 2 - New YorkTotal Startups: 1,844; Foursquare, Tumblr, Fab.com$2.7 billion invested in 332 companies 3 - Los AngelesTotal Startups: 1,507; Break Media, Demand Media, ViddyCitysearch$2.0 billion invested in 129 companies 4 - BostonTotal Startups: 700; TripAdvisor, Kayak.com, Carbonite$2.8 billion invested in 285 companies 5 - Washington DCTotal Startups: 261;LivingSocial$979 million invested in 146 companies • New York ranks 2nd in total startup activity and 3rd in venture funding 4 1 2 5 3

  21. The University Connection • Allows faculty to work alongside engineers to bring their work to market • Brings high-quality work experiences to student interns • Provides human capital that tech companies NEED that cannot be found elsewhere • 250 Student Positions Created • 8 Faculty Engineers in Residence • 12 Faculty Consulting Projects • 12 Links to Departments, • Programs, Center and Labs

  22. The Case for University-tied Incubators • Our companies are here because of…. • ‘The opportunity to network.’ • ‘The favorable image and location.’ • ‘The quality, price and flexible terms of the incubator units.’ • The tie to the university; for example, 85% of companies have employed university student interns • 84% of companies said that the incubator experience was important or extremely important to their overall success

  23. Internships @ The Incubator

  24. University Progress and Momentum RECORD 9 STARTUPS FORMED BASED ON NYU IP RECORD 9 ARSF AWARDS 11 NYU SCHOOLSIN 2012 NYUENTREPRENEURS CHALLENGE $ INVENTION DISCLOSURES INCREASE 37% ONE BILLION LICENSING INCOME 9 NEW STUDENT ENTREPRENEURSHIPCLUBS FORMED

  25. Good Exits • Five Acquisitions (including 3 NYU affiliated companies) totaling over $50 million dollars

  26. nRelate: What Success Looks Like • ‘Couldn’t have done it without the incubator!’ • Oliver Wellington, nRelate Co-Founder • Joined the incubator in 2009 • Tech based on related content search • In their 2 years they: • Built their product • Developed relationships with publishers • Hired key staff • ‘Took advantage of everything NYU-Poly had to offer.’ • Acquired by Ask.com (bootstrapped to exit)

  27. Power of Partnership The incubators rely a unique, interdependent ecosystem of supportive partners: • NYU-Poly: Top Talent and Applied Science • NYU: Talent, Support and Resources • New York City Economic Development Corp: City Support and Funding • New York State Energy Research & Development Authority: Funding • Mentors: Access to Network • NYC Seed: Brand and Counsel • Two Trees Management: Real Estate • Trinity Real Estate: Real Estate

  28. AREAS FOR IMPROVEMENT • 67% of respondents said that they would have taken advantage of a co-working ‘Step-Out’ space at the incubator • NYU-Poly is currently working with NYCEDC and members of the real estate community to address this need • 89% of respondents said they would take advantage of a faculty engineer-in-residence program • This program launched in January 2013 with 8 faculty and there are plans to scale it across NYU

  29. The Path Forward

  30. Recent Honors - 2009

  31. Think Eco Wins Incubator Graduate of the Year

  32. NYU-Poly incubators awarded NSF-I Corps Regional Innovation Node • NSF program to increase quantity & quality of commercialization efforts • Part of NYC ‘Node’ with CUNY & Columbia • 8 week training program 2x/year to NSF-selected team from other schools • Awarded $1.0m over 3 years • Curriculum leveraged for other University City & State programs

  33. Summer 2013 Student Launchpad • ~10 week summer programto enable 10 student teams from across NYU to focus on growing their startups. Included: • Skill-building bootcamp • Space • Mentorship’s by NYC VCs & entrepreneurs • Stipends

  34. Contact Micah Kotch Director, Innovation and Entrepreneurship mkotch@poly.edu Media: Kathleen Hamilton Marketing & Communications Director hamilton@poly.edu

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