State of the Startup Community Address 2K16

http://gph.is/1P88H6d

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#HustleCity#SSCA2K16

VIRGINIA

SBDCH A M P T O N R O A D S

Last Year...

Last Year...

Last Year...

Last Year...

Last Year...

Facebook rankings:

Crossfit • High intensity interval training

• Started in 2000

• 13 gyms in 2005

• >10,000 in 2016

• 41 local gyms

• Net Worth of 4 Billion

• Millions of users

The Crossfit Games• World-renowned as a grueling test for the world's toughest athletes

• Started in 2007

• Reebok Partnership

• 275K competitors

• 2015 Champion: Ben Smith

RUFIT• Fitness event hosted at Virginia Beach Oceanfront

• A platform that promotes strong, healthy, living through activity, education and community.

HILLIER IGNITEOUTDOOR GYM

HILLIER IGNITEOUTDOOR GYMHILLIER IGNITE

OUTDOOR GYM

“Uber for shipping containers”

Order fulfillment customized for simplicity.

• 2015 Award for Best Landscaping

Busch Gardens

• Apollo’s Chariot wins #6 best roller coaster in the world.

Busch Gardens

VB Arena

EntrepreneurialCenters

3DXtremesAron Blade Taylor

FUNDING

Angel InvestingAn affluent individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity.

A small number of angel investors invest online through equity crowd-funding or organize themselves into angel groups to share research and pool their investment capital, as well as to provide advice to their portfolio companies.

FUNDING

A group of accredited businesses and individuals that invest in companies in the Hampton Roads area.

757 Angels

FUNDING

Fastest Growing Group

FUNDING

Launch

12

24

36

48

60

72

84

96

108

120

Cycle #1 Cycle #2 Cycle #3

757Angels

NationalAverage

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757 Angels

FUNDING

757 Angels

FUNDING

400

800

1200

1600

2000

2400

2800

3200

3600

$3MM

757 Angels NationalAverage

Direct Investment:$1.9MM

Indirect Investment:$1.1MM

$1.2MM

VENTUREFUNDING

• Created in ODU dorm room

• Friends looking to start a niche social network

• Found access to capital in Denver

• April 9th, 2015: IPO

• Currently valued between 48 & 75 Million

MassRoots

VENTUREFUNDING

• Raised money from leading angel inves-tors in Silicon Valley, including CTO of FB/founder of Quora, creator of gmail, and president of Y Combinator

• Has grown 20% month over month since launch in June 2013

• Now the largest mental health delivery system in the world with 120k listeners, across 189 countries, providing support in 140 languages

7 Cups of Tea

VENTUREFUNDING

• Leesa is a single, beautifully designed luxury mattress that's ordered exclusively online and delivered straight to your door

• Raised $9MM

• Officially launched on January 15th 2015

• Ended the year at just under $30m in sales

• Created over 30 tech/digital commerce jobs in Virginia Beach

Leesa

VENTUREFUNDING

The practice of funding a project or venture by raising many small amounts of money from a large number of people, typically via the Internet.

Crowdfunding

VENTUREFUNDING

• We looked at the major online crowdfunding platforms

• Selected the projects from the area over the past 3 years that made at least $9K

Crowdfunding

VENTUREFUNDING

$9,494RAISED

$13,376RAISED

$21,795RAISED

$25,484RAISED

$59,296RAISED

RAISED$35,680

$12,506RAISED

$20,803

$10,235RAISED

$9,270

$19,587RAISED

RAISED RAISED RAISED$80,369

$21,056RAISED

$23,335

$15,755RAISED

$46,253

$12,058RAISED

RAISED RAISEDRAISED$18,915

$45,460RAISED

$16,134

RAISED$15,114

RAISED

RAISED RAISED

$114,982

$22,176RAISED

$43,682

RAISED$17,175

RAISED$83,776

$18,588 $35,069

RAISED

RAISEDRAISED RAISED

$28,765

$15,436

$56,102

RAISED$52,118

$32,911

RAISED

RAISEDRAISED RAISED

$10,240

$67,819

RAISED$35,525

$43,863RAISED

Tidewater Comicon

• Founder Mike Federali who sold his entire comic book collection at garage sales, flea markets to make the show possible

• Moved to a 37,000 sq. ft. space at the Virginia Beach Convention Center

• The 2015 show broke it’s previous attendance record with over 16,000 excited fans and families.

RAISED$18,760

• The first microbrewery in Chesapeake, Va.

• Jim Lantry is the head brewer who began in 2000 and has produced award winning pale ales and Russian Imperial Stouts

• Big Ugly is named after the company president’s 1955 Chevy panel truck seen in our logo.

Big Ugly Brewing

Industry Trends

• Necessary to bootstrap, West Coast companies are not as big here

• Funding is NOT the most important thing for a small business to succeed

• It’s creativity, drive, and hard work

• The finances will happen naturally

Funding

FUNDING

Kauffman IndexThe Kauffman Index: Startup Activity has three components:

• Rate of New Entrepreneurs: an early and broad measure of business ownership

• Opportunity Share of New Entrepreneurs: a proxy indicator of the percent of new entrepreneurs starting businesses because they saw market opportunities

• Startup Density: the number of startup firms divided by total population of a place

Kauffman Index

Kauffman Index

Kauffman Index

Four categories:

1. Meetups

2. Events/Conferences

3. Pitch Events

4. Spaces

Meetup Scene

Meetups

P.I.T.

Open Build Night

Events/Conferences

Programs

• Provide entrepreneurs, startups and small businesses with the amenities, counseling, and services necessaryto grow a successful business

Pitch Events

Resources

OFFICE SPACE

OFFICE SPACE

For new businesses:

Businesses are selected to create vibrant and compatible businesses in Downtown

Access to spaces at 50% market rent for two years

These business owners will also receive a $20,000 kick-start grant.

OFFICE SPACE

Vibrant Spaces

For existing businesses:

May also submit ideas for funding to make their businesses more exciting and vibrant.

$60,000 in matching grants available

Ideas can range from sidewalk activa-tion, upgrades to storefronts, improving signage, or adding outdoor seating or a rooftop option

OFFICE SPACE

Vibrant Spaces

OFFICE SPACE

Vibrant Spaces

Craft Alcohol

Arts

Makerspace

Maker Movement

Local Breweries

Local Wineries & Distilleries

Alcohol-related New Business

Arts Districts

Arts & Crafts

Makers

Music News

Hampton RoadsBusiness Weekly

Big Names to the Area

Start the SparkEmerging Global Entrepreneurs

White House Conference

• Virginia Velocity is for the next stage; for entrepreneurs looking for a boost to their companies and a new level of growth.

• 1 Million invested every year to 2 categories of busiesses: - Bioscience - Energy

1st place Nationwide for Bioscience:

• World’s leading eCommerce platform

• $10 Billion in revenue to date

• >162K merchants in 150+ countries

• Holds a “Build a Business” competition every year to the NEW startup with the best 2 months of sales

• Wins an extensive prize package of mentorship and exposure

So. that’s why...

Last Year

#23This Year

#19

Closing Thoughts

Innovate, not recreate

Companies Innovating In Their Industiries

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