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© 2013 Ewing Marion Kauffman Foundation
www.kauffman.org© 2013 Ewing Marion Kauffman Foundation
The Anatomy of the 1MC
EntrepreneurArnobio Morelix and Colin Tomkins-Bergh
© 2013 Ewing Marion Kauffman Foundation
Research and Policy
• Policyo Startup Act
o Startup Visa
• Datao Kauffman Index
o Used by the Whitehouse and 15 governors
• Researcho The Importance of Startups in Job Creation and Job Destruction
• Growthology Blog
© 2013 Ewing Marion Kauffman Foundation
Previous 1MC Research
Goals:
1. Understand the growth of 1MC
2. Learn how to improve the program
Previous Research
• Energizing an Ecosystem: Brewing 1
Million Cups - 2012o Understanding the value that 1MC gives entrepreneurs
• Think Locally, Act Locally - 2014o Discovering the connectivity of 1MC entrepreneurs within
their communities
© 2013 Ewing Marion Kauffman Foundation
Today’s Outline:
• Anatomy of 1MC Founders
• Anatomy of 1MC Startups
• Mapping 1MC
• Takeaways
© 2013 Ewing Marion Kauffman Foundation
1MC Survey
• Overview
o 605 responses from 1MC presenters in 58 cities
o Asked 20+ questions about themselves (founder) and their startup
o Questions included:
• How would you describe the stage of your company?
• What sources of financing have you drawn from to finance your / current
company?
• What would you say is the primary sector of your venture?
© 2013 Ewing Marion Kauffman Foundation
1MC Kansas City Interview Project
• Overview:o Interviewed 15 Entrepreneurs in Kansas City who have presented at 1MC
o Did two focus groups and 5 individual interviews
o We wanted to gain insight to the following three questions:
1. What perceived impact does 1 Million Cups have on businesses and
entrepreneurs?
2. How does an entrepreneur connectedness to the ecosystem changes (or
does not change) after involvement with 1 Million Cups?
3. What is the effectiveness of the education curriculum
© 2013 Ewing Marion Kauffman Foundation
Everyone Loves 1MC
• All entrepreneurs interviewed said they would
recommend 1MC to another entrepreneur
• “1MC is a big eye-opener”
• “There is no stage like that of 1MC”
• “1MC has strengthened my confidence of being an
entrepreneur”
© 2013 Ewing Marion Kauffman Foundation
3 Insights on Presenting Founders:
1. Presenting entrepreneurs participation in local entrepreneurship events
2. Founder’s make lots of connections from their presentation at 1MC
3. Top skill sets of 1MC entrepreneurs
Anatomy of 1MC Entrepreneurs:
© 2013 Ewing Marion Kauffman Foundation
Three stages of engagement with the community:
1. Entrepreneurial Networkingo Entrepreneurs interact a lot with other startups by attending lots of events to
grow their network
2. Launcho Entrepreneurs tend to disappear from the events scene once they launch their
initial product or service on the market
3. Initial Tractiono Once the product service is successful or not, entrepreneurs look to become
more involved in entrepreneurial events and want to help fellow startups
Anatomy of 1MC Entrepreneurs: Engagement
with 1MC
© 2013 Ewing Marion Kauffman Foundation
Revenue-Generating Count Average of Programs Attended
No 52 2.00
Yes 58 1.66
Non-founders 51 0.98
Grand Total 161 1.42
Entrepreneurs generating revenue attend more programs?
Having Employees Count Average of Programs Attended
No 41 1.78
Yes 70 1.79
Non-founders 51 0.98
Grand Total 162 1.42
Full-Time Commitment Count Average of Programs Attended
100% for this company 53 1.56
Have another job 48 1.85
Non-founders 51 0.98
Grand Total 152 1.36
Entrepreneurs employing other people attend more programs?
Entrepreneurs committed full-time attend more programs?
Anatomy of 1MC Entrepreneurs: Community
Engagement
© 2013 Ewing Marion Kauffman Foundation
• Presenting entrepreneurs roughly double their participation in local
entrepreneurship events
• Some examples of events and organizations that they became involved with
after their presentation are: o KC Source Link,
o Digital Sandbox,
o Sprint Accelerator,
o LEARN (women business education program),
o Chamber after hours,
o GEW,
o Urban Core, Mayors challenge cabinet steering community,
o Startup of the Year Brand Competition
o KC Roundtable.
Anatomy of 1MC Entrepreneurs: Outside
1MC Connection
© 2013 Ewing Marion Kauffman Foundation
• 35% are more connected (26 out of 74).
0
5
10
15
20
0 1 2 3-5 6-9 10-14 15-18
May-13 Jan-14
35 33
Anatomy of 1MC Entrepreneurs: Within 1MC
Connection
© 2013 Ewing Marion Kauffman Foundation
What are the Top 3 Skills of 1MC Entrepreneurs ?
• Designer/Creative
• Developer/Engineer
• Finance
• Logistics
• Management
• Other (please specify)
• Sales/Marketing
© 2013 Ewing Marion Kauffman Foundation
• Management, Designer/Creative and Sales/Marketing are the top 3 skill sets.
• Only 9% of founders identify their primary skill set to be that of
developer/engineer (typical high-tech skills)
Designer/Creative17%
Developer/Engineer9%
Finance2%
Logistics1%
Management27%
Other (please specify)
29%
Sales/Marketing15%
SKILL SETS
Anatomy of 1MC Entrepreneurs: Skills
© 2013 Ewing Marion Kauffman Foundation
Anatomy of 1MC Entrepreneurs: Gender
Female28%
Male72%
Similar to national average. But something to think about
© 2013 Ewing Marion Kauffman Foundation
Anatomy of 1MC Startups:
• Percentage of companies with full time employees
• Percentage of companies with > 50k in revenue per year
• Percentage of companies that have generated revenue.
© 2013 Ewing Marion Kauffman Foundation
• 60% of all presenting companies have generated revenue.
Idea Stage2%
Active Development (pre-revenue)
20%
Deployed Product/Service (pre-
revenue)18%
Have generated revenue
42%
Profitable18%
Anatomy of 1MC Startups: Business Stage
© 2013 Ewing Marion Kauffman Foundation
• Over 50% of companies that have revenue make > 50k in revenue per year
Anatomy of 1MC Startups: Revenue
29.61
13.41
8.1
12.57
17.6
6.42
11.17
$10,000 or less $10,001 to$25,000
$25,001 to$50,000
$50,001 to$100,000
$100,001 to$500,00
$500,001 to$1,000,000
$1,000,001 ormore
Revenue (%)
© 2013 Ewing Marion Kauffman Foundation
• 38% if companies have 1 or more full time employee
• Over 60% of companies have no full time employees
61.27
12.05
5.16
4.13
3.1
14.29
0 10 20 30 40 50 60 70
No Full-Time
1
2
3
4
5 or more
Full Time Employees
Anatomy of 1MC Startups: Employees
© 2013 Ewing Marion Kauffman Foundation
• Information and Communication Technology, Education, and Health are the
three most represented industries by 1MC startups.
• More than 15 industries are represented by 1MC startups
Anatomy of 1MC Startups: Sectors
3.97
7.12
7.62
9.77
16.06
0 2 4 6 8 10 12 14 16 18
FINANCIAL SERVICES
FOOD OR RESTAURANT
HEALTH
EDUCATION
INFORMATION AND COMMUNICATION TECHNOLOG
Top 5 Sectors (%)
© 2013 Ewing Marion Kauffman Foundation
• Not everyone is always seeking capital
14.93
28.52
19.07
37.48
0 5 10 15 20 25 30 35 40
ALREADY RAISED SUFFICIENT CAPITAL
BOOTSTRAPPING (DO NOT PLAN TO SEEK ANY MORE MONEY)
HAVE NOT STARTED SEEKING CAPITAL
SEEKING CAPITAL
Current Stage of Financing (%)
Anatomy of 1MC Startups: Financing
© 2013 Ewing Marion Kauffman Foundation
• Reflects national trends of early stage companies
Anatomy of 1MC Startups: Financing
3.8%
4.1%
7.0%
7.8%
14.9%
16.1%
17.6%
17.7%
20.4%
29.2%
35.0%
79.3%
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0%
OTHER COMPANIES
VENTURE CAPITALISTS
GOVERNMENT GRANTS (E.G. SBIR OR STTR)
CROWDFUNDING
OTHER (PLEASE SPECIFY):
ANGEL INVESTORS
PERSONAL OR BUSINESS LOAN FROM A BANK
BUSINESS ACQUAINTANCES
CLOSE FRIENDS
PERSONAL OR BUSINESS CREDIT CARD
FAMILY MEMBERS
PERSONAL SAVINGS
Sources of Financing
© 2013 Ewing Marion Kauffman Foundation
Takeaways:
1. The 1MC Launching Pad
o Presenting entrepreneurs roughly double their participation in local entrepreneurship events.
o Using 1MC as a bridge into greater entrepreneurial community to other organizations
2. Understand 1MC Entrepreneurs
3. Understand 1MC Startups
o To better serve their needs
4. Learn about other 1MC chapters across the country
o Interactive map to learn from others and get in touch!
© 2013 Ewing Marion Kauffman Foundation
Thank You!
• Colin Tomkins-Bergho [email protected]
• Arnobio Morelixo [email protected]
• Follow us on The Growthology Blog