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StartupIowa Regional PlanDecember 13, 2011
Epicenter of the Silicon Prairiewww.startupia.org
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Executive SummaryWith a historically agrarian economy, Iowa has made significant progress in
the past decade toward a more diverse economic base. As the birthplace of thecomputer, Iowa contributes much more than agriculture to the US and beyond.Manufacturing, technology, bio-science and education are represented across thestate and continue to be the reasons for population gains in this relatively smallstate.
Beyond companies and entrepreneurs themselves, the entrepreneurial ecosystemencompasses Iowans from schools, undergraduate, graduate and communitycolleges; the various research institutions within nationally recognized universities;intrapreneurial employees within small and large businesses; as well as factions ofgovernment at the municipal, regional, state and federal level.
The entrepreneurial spirit has been deeply intertwined throughout the stateshistory. Todays startups are innovating in various fields, as evidenced by 91new patents in October 2011 alone, adding to the States already diverse patentportfolio----initiated with its first patent in 1854 (i.e. US Patent# 2922). Innovatorsand startups now find a wealth of resources at their disposal and are able toleverage the ecosystem to increase their velocity.Startup Iowa is an initiative ready to contribute to and leverage the nationalimpetus toward entrepreneurial growth. The StartupIowa initiative gathers themultitude of resources under a single umbrella for more effective delivery to
entrepreneurs and the startup community. Officially initiated during ThincIowa inlate October 2011, the StartupIowa organization officially launched on December13, 2011 and plans to accelerate from this ideation phase to ramp up and speed upin 2012.
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Iowas Innovation Culture
The State of Iowa has a rich heritage of innovation. Since its admission as the
29th state in 1846, Iowa has hosted inventions ranging from the automatic haybailer in 1936 to the world's first electronic digital computer in 1937-1941. Thisentrepreneurial spirit has continued since with 91 new patents issued to Iowainventors in October 2011 alone, amongst 860+ issued in the calendar year.Inventions range from innovations in disease resistance and cultivation of cropsto new omni-directional antennae and such technology innovations as the processto create embedded microcode in specialty processors to deliver high-assurance infailure-adverse environments.
Iowas core industries today are:
1. Manufacturing: Even though primarily known as an agricultural state,manufacturing remains Iowas largest economic driver and industry.Global leaders such as Rockwell Collins, Pella, Vermeer, and John Deerehave significant operations based in Iowa and exemplify manufacturinggrowth as well as national and global exports.
2. Technology: Iowas universities and cities provide a stable and continuous
infrastructure to establish and grow technology leaders. Research andBusiness parks managed by the state universities produce a continuousstream of graduates. Private colleges like Drake Universitys LawSchool has recognized leadership in its Intellectual Property law school
whose graduates increasingly support IP protection for their agriculture,biosciences and technology clients.
3. Biosciences: Iowa has a sizable and rapidly growing bioscience industrysector that outpaced growth at the national level. This industry is ahighly specialized leader in agricultural feedstock and chemicals, and hasremained resilient even through the first year of the recent recession. Itremains a high-wage industry and employs over 15,000 people.
4. Finance: Iowa is not only the insurance capital of the United States, but
serves as home to finance and insurance giants such as The PrincipalFinancial Group, Wells Fargo, ING Insurance, Nationwide Insurance, andmore. The University of Iowas renowned Tippie College of Businessprovides a strong conduit of professionals to the industry with its MBA andrelated degrees.
5. Agriculture: This industry has driven Iowas economy throughout its
history and continues to be the lead story about Iowas products worldwide.Though agriculture has been critical historically to the states economy,
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Iowas diversification of its economic portfolio through the aboveindustries is also having a positive, measurable impact on its economy.
Entrepreneurial DriversIowa is served by many entrepreneurial drivers that ensure that new and existing
businesses can receive all necessary services locally from a wide array of
nationally connected practitioners. They include:
1. Banks: Global and local banks provide critical startup, operational andgrowth support to the Iowa entrepreneurial community. Frequently servedby Wells Fargo, Bankers Trust or West Bank, entrepreneurs have found arich source of banking support in a network that stretches across the state.
2. Legal: Professional firms provide the wide array of services from business
organization, immigration, intellectual property protection, mergers &
acquisitions and advisory services to businesses in most areas. Law firmslike Davis Brown or Brown Winnick frequently represent the Iowa startupand established business community, and serve on Iowas non-profit boardsand community events.
3. Venture Capital: The venture ecosystem in Iowa is robust. From a large
and active angel investor base as well as regional seed and angel fundsto traditional early and mezzanine-stage venture capital firms. Individualinvestment has favorable tax status due to recent regulation passed in 2011.
4. Incubators and Accelerators: Entrepreneurs need more than technology
support, capital and legal relationships. Mentors, business acceleratorsand incubators provide a critical path to successful entrepreneurship.Iowa has fostered such support structures from a variety of constituents government, corporate, industry and private incubators. The Iowa StartupAlliance recently brought seven of the incubators in a collaborative ventureto support each others startups and member companies.
5. Higher Education: Iowa is home to nationally renowned leaders in
education. Iowa State University, the birthplace of the computer, is alsothe second largest licensor of technology after the University of CaliforniaSystem. The University of Iowa leads the country in medical research,
finance, a number of fine arts and creative writing areas, and the Universityof Iowas Tippie School of Management ranks in as one of the top 50 MBAschools nationwide
Iowa is in the midst of a shift from farming and manufacturing as lead economicindustries to a more dynamic and diverse mix of activities that leverage its agrarianand manufacturing expertise, with rapid growth in the finance and insurance,real estate, health care, and professional and technical services industries. While
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State of Iowa Industiry Growth Projections 2008-2018
Industry 2008EstimatedEmployment
2018ProjectedEmployment
TotalGrowth
PercentChange
Total 1,663,780 1,838,760 174,980 10.5%
Professional and Business Services 42,575 56,475 13,900 32.6%
Administrative and Waste Services 65,850 80,720 14,870 22.6%
Agriculture, Forestry, Fishing, and Hunting 3,095 3,785 690 22.3%
Health Care and Social Assistance 192,425 232,120 39,695 20.6%
Construction 73,000 85,335 12,335 16.9%
Finance and Insurance 89,420 103,085 13,665 15.3%
Transportation and Warehousing 64,555 74,395 9,840 15.2%
Real Estate and Rental and Leasing 13,430 15,310 1,880 14.0%
Arts, Entertainment, and Recreation 20,700 23,520 2,820 13.6%
Educational Services 166,900 185,915 19,015 11.4%
Other Services, except Public Administration 33,135 36,650 3,515 10.6%
Information 33,380 36,765 3,385 10.1%
Accommodation and Food Services 114,645 125,245 10,600 9.2%
Retail Trade 178,165 186,210 8,045 4.5%
Wholesale Trade 68,960 70,180 1,220 1.8%
Manufacturing 227,410 230,920 3,510 1.5%
Natural Resources & Mining 2,130 2,080 (50) -2.3%
Utilities 7,105 6,585 (520) -7.3%
Table 1: Industry Employment Projections to 2018
Professional and business services is expected to become an even larger part ofthe Iowa jobs economy in the future as this sector is expected to grow by nearly
33 percent by 2018. This is particularly important to Iowas startup communityas this sector holds most technology startups. Over that same time, workers in theInformation Technology field are expected to increase 21.4 percent throughout thestate.
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Information Technology Occupations Projections (by type) 2008-2018
IT Occupation Breakdown (Projected) 2008 2018 Change % Change
Statewide
Computer and Information Scientists, Research 53 59 6 11.3%
Computer Programmers 3,899 3,762 -137 -3.5%
Computer Software Engineers, Applications 3,472 4,663 1,191 34.3%
Computer Software Engineers, Systems Software 2,726 3,582 856 31.4%
Computer Support Specialists 4,995 5,712 717 14.4%
Computer Systems Analysts 5,230 6,399 1,169 22.4%
Database Administrators 733 869 136 18.6%
Network and Computer Systems Administrators 3,272 3,885 613 18.7%
Network Systems and Data Communications Analysts 2,626 4,049 1,423 54.2%
Computer Specialists, All Other 1,881 2,101 220 11.7%
Total 28,887 35,081 6,194 21.4%
Table 2: IT Occupation Projections to 2018
Between the sectors of Advanced Manufacturing, Biosciences, and InformationTechnology, Iowa has a robust and thriving startup climate that spans K-12education, higher education, professional organizations, public and private sectorresources, and access to capital.
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YEA a one-week summer program that brings together 11th and 12th grade
students to form teams, select business concepts, create companies, create business
plans and present those plans in public to a panel of businesspeople, economic
developers and educators. The objectives of the Youth Entrepreneurial Academy
are to expose students to entrepreneurship, provide students with an opportunity
to apply their skills and creativity, help students understand critical thinking skills
and give students another career option of being a job creator. YEA is now
entering its 15th year of providing its unique entrepreneurial education through an
experiential experience.
More info at http://www.niacc.edu/pappajohn/youthacademy.html
ABI Business Horizons
The Iowa Association of Business and Industry (ABI) sponsors the Business
Horizons (BH) program, a one-of-a-kind, hands-on, action-oriented week-longsummer program for high school students who want to learn about the worldof business and what the future holds for them. The mission is to promote thevalue of the free enterprise system through leadership, teamwork, entrepreneurialactivities, and personal development opportunities. BH has enjoyed over 25successful years of educating young people about economics, the free enterprisesystem, entrepreneurship, skills they need to be successful in today's workplace,and about opportunities available in the state of Iowa. BH is a program of theIowa Association of Business and Industry Foundation (ABIF) and partners withbusinesses and local chambers of commerce across Iowa.
More info at http://www.businesshorizonsiowa.org
eSigourney Entrepreneurial Academy for Leadership
The eSigourney Entrepreneurial Academy for Leadership (eSEAL) was formedwith a focus to give Sigourney students (7-12), including alternative students andinterested community members, opportunities to be entrepreneurs. This also givesthe students a broader ability to want to choose secondary education options, andgives them more choices in the career field. A goal of this is to stop the "braindrain" from the area by demonstrating that students can have productive andsuccessful lives by owning a business.
The eSEAL Charter was designed as an academy for leadership throughentrepreneurial experiences both in the classroom and in the community.Students in grades 7-12 are introduced to curriculum that emphasizes innovation,leadership, business plan development, continued education, and communityengagement. In general, the climate of eSEAL learning is one of commitment toassuring all students find a way to be engaged in relevant learning experiencesin areas that lead them to careers. While eSEAL has a strong emphasis on
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entrepreneurial education, career and basic leadership development are at the heartof the charter, supporting curriculum, and activities.During the 2009 school year, the Sigourney Community School District initiateda Career Academy with the support of Indian Hills Community College, private
sector businesses, and the wider community. eSEAL is incorporated into theAcademy and complements the overall intent of the charter by assuring studentshave choices even if entrepreneurship is not the direction they elect to take fortheir future career.When the Charter was created, it was not just to give high school students theopportunity to explore entrepreneurship. In the elementary school, students beginto explore entrepreneurship through a program called Biz in a Boxx, which iscontinued through middle school. At the middle school level, the students begininitiating career plans and start small businesses, such as selling cookies or otheritems during lunch. Throughout middle, and even high school, they participate in
a wide variety of trips that expose them to different leadership, entrepreneurial and business examples in the surrounding communities. Students have even had theopportunity to visit with local entrepreneurs, attend entrepreneurship conferencesand get hands-on experience.More info: http://www.sigeseal.com/Sigourney_eSEAL/Home.html
Invent Iowa
Invent Iowa, one of the premier programs through the Belin-Blank Center ofInternational Development for Gifted Education and Talent Development, atthe University of Iowa School of Education, serves the needs of talented young
inventors and their teachers. The Invent Iowa program encourages students tocreatively think and solve problems through the invention process. Now in its 24thyear, the program has celebrated the work of thousands of students in grades K-12. These novice inventors, whose inventions range from humane mouse trapsand mitten driers to devices that make life easier for someone with a disability,continue to amaze and inspire.Invent Iowa is a comprehensive, statewide program developed to assist Iowaseducators in promoting the invention process as part of their regular K12curriculum. Since 1987, Iowa students have had the opportunity to express theirinventiveness and solve problems in an educational way. Local schools and Iowa
Area Education Associations (AEAs) provide opportunities to showcase studentinventions at local and regional Invention Conventions.
The culminating invention experience for Iowa students in grades 3 through 8 isthe Invent Iowa State Invention Convention. Student inventors must receive anofficial invitation to participate in the state convention. This invitation is issued byan authorized Invent Iowa Area Education Agency coordinator. All inventions at a
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convention must be a completely new product or significant new application of anexisting product. The invention must also be original student work.More info athttp://www.education.uiowa.edu/html/belinblank/Programs/Students/InventIA/
Default.aspx
Hyperstream
The Technology Association of Iowa (TAI) Educational Foundation developed andtested a technology career awareness program called HyperStream, to supportits key initiative of developing Iowa's future technology workforce. Launchingstatewide in September, 2008, TAI member companies and their employees arethe driving force in encouraging Iowa 8th12th graders to pursue post-secondarytechnology education to prepare for Iowa tech careers. Through active partnership between business and education, ambassador companies work directly witheducators and students by mentoring, starting HyperStream Clubs and supporting
hands-on projects. Ambassadors directly develop our future technology leadersand contribute to the community.This is NOT a career day presentation but a long-term program in whichambassadors, students, educators work together throughout the year and ongoing.Once a company signs up as a HyperStream Ambassador company, TAI providesthe training, tools and direction needed to effectively partner with local schooldistricts.
Higher Education
In 1996, Iowa businessman John Pappajohn, president of Equity Dynamics,Inc. in Des Moines, established five entrepreneurial centers throughout Iowa, atIowa State University, University of Iowa, University of Northern Iowa, DrakeUniversity and North Iowa Area Community College. Although each centerdefines its own mission and serves the state in a manner consistent with its particular strengths, each center has the same ultimate purpose: to enhance theeffectiveness of Iowa's entrepreneurs.These entrepreneurial centers complement formal degree programs, curriculumand other programs offered by each universitys business and additional schools.
Iowa State University (Ames, Iowa)
The Iowa State University Research Park
The Iowa State University (ISU) Research Park is a 230-acre development withover 270,000 square feet of building space. They are located in Ames, just south ofthe Iowa State University campus.
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Business Development Center to connect people with the universitys vast researchcapabilities and expertise in new product development, business assistance,entrepreneurship, and workforce development.More info at http://www.enterprise.uiowa.edu
University of Iowa John Pappajohn Entrepreneur Center (JPEC)The John Pappajohn Entrepreneurial Center (JPEC) is a unique partnership withinThe University of Iowa among the Henry B. Tippie College of Business, Collegeof Engineering, College of Liberal Arts and Sciences, and University of Iowahealth sciences. JPEC was founded in 1996 through a generous gift from John andMary Pappajohn of Des Moines, Iowa.JPEC offers nationally ranked, comprehensive entrepreneurial education programsto all Iowans. All undergraduate students at The University of Iowa may earn
a Certificate in Entrepreneurial Management in addition to their undergraduatedegree. In addition to the Certificate, JPEC and the Department of Managementand Organizations have teamed up to now offer a BBA in Management withan Entrepreneurial Management Track to students in the College of Business.Advanced entrepreneurship courses are also offered to MBA students on campusand at several locations across the state of Iowa.
BELL Center at The University of Iowa (Students Only)
The Bedell Entrepreneurship Learning Laboratory (BELL) is an applied learningenvironment for advanced entrepreneurship students pursuing the creation of anew business. Individual students and teams will receive dedicated office spacelocated in the heart of the UI campus in a newly remodeled 10,000 square-footfacility, enabling them to concentrate on developing their business concepts.Aspart of JPEC's cross-campus academic program, students receive intensive one-on-one mentoring, business plan development, and a variety of other assistance fromJPEC and Small Business Development Center faculty and staff.More info at http://www.iowajpec.org/bedell
UI Technology Innovation Center (TIC)
For new businesses or established companies eager to initiate new endeavors, theTechnology Innovation CEnter (TIC) offers services and cost-effective laboratoryand office facilities. With access to the University computing facilities as well asresearch equipment and instruments, collaborations between academic scientistsand those in business can flourish. Advisory services also are available on issuessuch as management, marketing, and finance. For more information, write OakdaleCampus, call (319) 335-4063, e-mail [email protected], or visit the website at http://research.uiowa.edu/techtransfer/tic_main.htm.
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The Jacobson Institute for Youth Entrepreneurship
The Jacobson Institute for Youth Entrepreneurship at The University of Iowaenriches K-12 students lives through classroom and practical educational
experiences. Through teacher education, innovative curricula, and outreach, theJacobson Institute fosters the entrepreneurial mindsetencouraging creativity,innovation, critical thinking, and problem solving, and preparing students forsuccess in the worlds of business and entrepreneurship.More information at http://www.jacobsoninstitute.org
The University of Iowa Research Park
The University of Iowa Research Park offers corporations locating at the Parkconvenient, sustained access to the extensive, relevant research resources of
The University of Iowa. Here, growing enterprises have access to a state-of-theart business incubator, world-class research facilities and a dynamic faculty ofscientists, physicians and engineers at one of the worlds leading public researchuniversities.Established in 1989, The University of Iowa Research Park (formerly OakdaleResearch Park) leases building sites and space to growing technology companiesthat require sustained research relationships with the UI.
The new BioVentures Center's business incubator facility offers flexible, cost-effective wet lab space to new business ventures. The UI business incubatorprogram was among the first in the nation when it was established in 1984 and hasnurtured nearly 100 UI spinouts and other new ventures.More info at http://researchpark.uiowa.edu/index.php
The University of Iowa Research Foundation
The University of Iowa Research Foundation (UIRF) is a 501C3 corporation thatcommercializes University of Iowa developed technologies and inventions throughlicensing and new venture formation, and manages the subsequent revenue stream.More info at http://research.uiowa.edu/uirf
Drake University
Buchanan Center at Drake University
The focus of the Buchanan Center is to provide curricular and co-curricular
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opportunities for Drake University students. This includes support of:
Major in Entrepreneurial Management and minor in Entrepreneurship
Entrepreneurship Week Activities
Entrepreneur in Residence
Physical Center Infrastructure Faculty and Student Incubator development
Service Learning Opportunities
International Entrepreneurship Opportunities
Bill Buchanan, who graduated from Drake in 1957 with a degree in actuarialscience, came back to Drake University with his wife, Jean, and gave a $3 milliongift to establish the William M. and Jean M. Buchanan Center for EntrepreneurialLeadership in 2010.
More info http://www.cbpa.drake.edu/entrep/buchannan
Pappajohn Center for Entrepreneurship Outreach
The center was established in 1998 with generous funding from Iowa businessman
John Pappajohn. The function of the Pappajohn Center is outreach oriented with
much of the effort collaborative in nature. This includes support of:
Iowa Business Plan Competition- annual state-wide competition for start-
up businesses Iowa Venture Capital and Entrepreneurship Conference- annual October
conference held in Des Moines
Iowa Student Business Plan Competition- held each spring semester
CEIC- Collegiate Entrepreneur Iowa Conference held each spring
semester
More info at http://www.cbpa.drake.edu/entrep/pappajohn
University of Northern Iowa
The John Pappajohn Entrepreneurial Center at UNI (JPEC)
The John Pappajohn Entreprenuerial Center (JPEC) at the University of NorthernIowa is a division of Business and Community Services, which is included inthe College of Business Administration. The JPEC offers programs focusingon entrepreneurship education, technology transfer, and capital investment forsmall businesses. These programs include: a certificate in entrepreneurship;
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6 semester hours), the scholarship award is worth $500 ($250 per semester).Full-time students enrolled in entrepreneurial classes as electives are eligible for a$500 scholarship per semester.
More info http://www.niacc.edu/pappajohn/scholarships.html
Student Incubation at the North Iowa Business Incubator
NIACC students have direct access to the use of the North Iowa BusinessIncubator at no cost. The North Iowa Business Incubator is mixed use incubationspace for the temporary development of start up businesses. Following graduationfrom NIACC the student may apply to be a full use incubator client. The incubatorfeatures all the traditional services of mixed use incubation with additional non-traditional services made possible by its incorporation into the North Iowa AreaCommunity College (NIACC) and the John Pappajohn Entrepreneurial Center
(JPEC).More info at http://www.niacc.edu/pappajohn
Student Business Plan Competition
The NIACC JPEC supporting and providing leadership for the Pappajohn NewVentures Business Plan Competition for the past eight years. The students atNIACC compete side by side with their counterparts from Iowas universities andprivate four year colleges. Students compete for three five-thousand dollar prizesand several one-thousand dollar prizes. This competition is open to all students
enrolled in a two year or four year college or university.
More info at http://www.niacc.edu/pappajohn/businessplan.html
Kirkwood Community College
Serving a 7-county region and with its main campus in Cedar Rapids, KirkwoodCommunity College offers an entrepreneurship certificate isthat is part of theManagement associates degree program. The certificate consists of four blended-learning courses designed to teach students how to research, develop and writedetailed start-up business plans, which can be used to create successful businesses.The blended-learning environment provides a dynamic, interactive experience that
combines the flexibility of Internet-based e-learning with the benefits of face-to-face instruction.
Des Moines Area Community College
The Des Moines Area Community College offers both Certificate and Degree programs in Entrepreneurship. These programs offer extensive instruction into
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Further cultivation and implementation of national and internationalpartnerships with for/non-profits
Continue developing major student lead projects that enable students tolearn experientially
Created a new position at Central to lead and administer this program and
further develop the innovative culture within the college. Development of student lead business on campus Development of entrepreneurship student on campus student organization
This program provides students with greatly enhanced entrepreneurial skills andexperience, within the context of Centrals experiential learning and internationalstudies strengths. This program is fairly new to Central but certainly one of thefastest growing. Here are some student outcomes worth noting.
Students develop a tool kit to assist in starting their own venture In-class interaction with 10-15 entrepreneurs per semester
At least 10 opportunities to attend outside of class interactions withentrepreneurs per semester Partner with Des Moines entrepreneurs (Silicon Prairie News, The BIZ,
Startup Job Crawl, Startup Weekends and multiple area entrepreneurs) Not only interaction with startups but also non-profits, franchises,
intrapreneurs and entrepreneurs who purchase established businesses Business plan development within their area of passion and around their
leadership skillsMore information at http://www.central.edu
Simpson CollegeSimpson College and Iowans for Social and Economic Development (ISED)have joined together to provide business classes for people who want to starta business or strengthen and grow an existing business. They will offer 10-week class sessions beginning again in late January 2012 and will do so severaltimes a year. These classes are held on the Indianola campus of SimpsonCollege and cost $75.00 total. Students are given an extensive and helpfulcurriculum and one-on-one technical assistance. Outside local experts help provide relevant subject matter. They also offer lunch-and-learn sessions onimportant business topics at various times throughout the year and at a variety
of locations. For more information call Deb Downey at ISED ( 515.283.0940)[email protected] or Marilyn Mueller at Simpson College (515.961.1574)[email protected].
Businesses or organizations that have internship opportunities available forstudents may call the Simpson College Career Services office at 515.961.1667to list the internships on the career services web page. Students provide vital
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or expanding business.
2) The Iowa Small Business Loan Support Program is a multifaceted programto assist small business owners by providing direct financing for loans under$100,000. The Iowa Foundation for Microenterprise and Community Vitality(IFMCV), also known as Iowa MicroLoan, will administer the Iowa SmallBusiness Loan Support Program and will use SSBCI funding to provide directloans under $50,000. These loans are typically amortized over five years at7.5% interest. For loans between $50,000 and $100,000, IFMCV will provide participation loans in conjunction with private financing to support smallbusinesses in Iowa.
3) The Iowa Innovation Acceleration Fund provides financial and technicalassistance to help innovative entrepreneurs overcome the challenges associatedwith launching new ventures, attracting private capital investment, and expandingthe volume of technology activities which have a clear potential to lead tocommercially-viable products or services. IEDA will manage the three programcomponents: Iowa Launch, Iowa Propel, and Business Expansion to assist businesses with the challenges they may face at every stage of the businessesgrowth. Funds under this program are provided to eligible businesses in the formof low interest loans and shall not exceed 50% of the total project costs. Fundsare specifically targeted to support commercialization and expansion activities bysmall and medium-sized Iowa companies which will lead to business formation,growth and job creation.
Targeted Small Business
The Targeted Small Business (TSB) Assistance Program supports the creation andexpansion of small businesses that are certified as a targeted small business. Thebusiness must be certified as a "Targeted Small Business" by the Iowa Departmentof Inspections and Appeals before applying for or receiving TSB funds or enjoyingother program benefits. The basic requirements to be a certified TSB in Iowa are:
Business must be located in Iowa
Business must be operating for a profit
Business must have less than $4 million in annual gross
income, computed as an average of the preceding three fiscal years
At least 51% of the business must be owned, operated and
actively managed by a female, a minority group member or a person
with a disability
Certified TSBs can apply for loans to start or expand a small business with
these terms:
Maximum loan amount is $50,000
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investments in qualifying businesses and community-based seed capital funds.These credits are already in the Iowa Code (15E.43 et. seq.) but their caps hadbeen reached. The recently-passed legislation does limit the credits to investmentsin businesses with a net worth of $5 million or less.
Statewide Innovation Fund
A new tax credit has been created for investments in innovative businesses.The amount of the credit is 20% of the amount invested and is available to bothindividuals and corporations. The same investment cannot be claimed for both taxcredits. The innovation tax credits are limited to $8 million each year. The taxcredits will be awarded to taxpayers who make investments in a certified statewideinnovation fund. An innovation fund is a privately-owned and operated businessventure that provides capital to early-stage businesses in Iowa, and the tax creditsare intended to incentivize investment in such funds. The tax credits will be issuedby the economic development board to taxpayers who have made investments in
an innovation fund, and the certificates will be redeemed by the taxpayers from theDepartment of Revenue.
Innovation Ecosystem
Iowa is joining the growing number of state governments creating mechanisms toprovide guidance on state investments made to create more jobs-better jobs inthe innovation economy. Establishment of the Iowa Innovation Council (IIC) andthe Iowa Innovation Corporation represents an evolution in thinking about Iowaseconomic development strategies, partnerships and goals.
Iowa Innovation Council
The Iowa Innovation Council is a business-led group that has been tasked by thegovernment with developing strategies and long-term plans to make sure Iowastays competitive in the global business economy. Formalized through legislationin 2010, the concept of the IIC was collectively developed by leaders in theadvanced manufacturing, biosciences and information technology sectors. Theidea was designed as a way to allow more effective and efficient discussions between the government and business sector to increase Iowa's economicdevelopment innovation and entrepreneurial capacity. The IIC is an advisory
council to the Iowa Economic Development Authority.
Iowa Innovation Corporation
The Iowa Innovation Corporation, a private non-profit 501 c3, was created bylegislation passed in 2011 to create the Iowa Partnership for Economic Progress,a public-private partnership, to replace the Iowa Department of Economic
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Development. The Iowa Innovation Corporation will serve as the statesinnovation intermediary and be charged with implementing the Iowa InnovationCouncils strategic plan. Using both public and private dollars, the Corporationand its business leadership will spur firm innovation through targeted supports forhigh-growth entrepreneurs and existing companies.
Iowa Integrated Innovation and Commercialization Network
The Iowa Integrated Innovation and Commercialization Network (IIICN) is asource of best practices, standardized due diligence processes and resourcesavailable to entrepreneurs and small companies statewide. This programwas developed through the efforts of the Iowa Innovation Councils businessmembership. Expansion of the IIICN is a growth strategy of the Iowa InnovationCorporation as it works in its capacity as the states innovation intermediary.
Additional ResourcesGuide to the Iowa Innovators Resource Network: Essential information to
keep innovators and entrepreneurs informed as well as showcase the statewide
organizations working to help entrepreneurs succeed. A comprehensive guide
to securing business financing is included to explain financing options for the
business community.
Iowa Capital Investment Corporation and the Iowa Fund of Funds
Iowa Capital Investment Corporation's (ICIC) vision is to build a thriving Iowaentrepreneurial ecosystem through an evergreen, self-sustaining fund of fundsand partner venture funds. ICIC accomplishes the purposes expressed in itsenabling legislation (Iowa Code 15E.61): to help emerging, expanding, andrestructuring Iowa companies, including enterprises in the life sciences, advancedmanufacturing, information technology, and value-added agriculture areas viathe organization and management of the Iowa Fund of Funds (IDOF).In 2005 ICIC engaged Cimarron Capital Associates I, LLC as the professionalmanager of the Iowa Fund of Funds program. The program, which raises private
investment capital supported by contingent state tax credits, operates without Stateappropriations. No contingent tax credits have been used nor projected to be usedto-date. As a result, there has been no cost to taxpayers to create and operate ICICnor the IFOF.The Iowa Fund of Funds brings venture equity capital and venture expertise toIowa entrepreneurs by investing in carefully selected venture capital funds. Eachfund works in the state of Iowa with Iowa entrepreneurs and in so doing brings
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Startup Resources
Iowa has an extensive array of both public and private-sector resources forentrepreneurs. These include online and printed resource indexes, accelerators,incubators, and coworking spaces. These resources also include professionalservice providers that work specifically with startups via focused programs forentrepreneurs. A subset of these programs is as follows:
MyEntreNetMyEntre.Net is an entrepreneurship development system consisting of an onlinesocial network and free web-based entrepreneurial resources, coupled withcollaboratively driven services and capital for entrepreneurs in Iowa.MyEntre.Net was implemented through an annual competitive selection processin 13 rural Iowa counties and one urban center between 2003 and 2008. In Mayof 2009, the online resources of MyEntre.Net were re-launched as an interactivestatewide online community serving all small business owners with live,interactive education,Webinars, peer learning and other business services.
Today, the collective expertise of the MyEntre.Net team insures individuallycustomized technical assistance, quality referrals and rapid access to capital forpre-venture and existing small firms statewide.Initially funded by a USDA Rural Business Opportunity Grant, 2009 MyEntre.Netfunding comes from the Iowa State Legislature, the U.S. Small BusinessAdministration and theNorthwest Area Foundation.More info at http://www.myentre.net
VentureNet IowaVentureNet Iowa works on a statewide basis as a catalyst to connect early-stage innovative technology companies to the resources that they will requireto commercialize their products and technologies. The service is offered to the
companies free of charge. The programs VentureNet offer are adaptable in orderto accommodate the entrepreneur at any stage of the commercialization process.
To facilitate the steps that all entrepreneurs must take, VentureNet, in collaborationwith other service providers and entrepreneurs, has developed and/or utilizes a setof tools that are intended to provide consistency in format and process. The toolsinclude the following:
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http://www.myentre.net/LinkClick.aspx?link=72&tabid=237http://www.myentre.net/LinkClick.aspx?link=72&tabid=237http://www.myentre.net/LinkClick.aspx?link=75&tabid=237http://www.myentre.net/LinkClick.aspx?link=75&tabid=237http://www.legis.iowa.gov/index.aspxhttp://www.legis.iowa.gov/index.aspxhttp://www.sba.gov/http://www.sba.gov/http://www.sba.gov/http://www.nwaf.org/Home.aspxhttp://www.nwaf.org/Home.aspxhttp://www.myentre.net/UnregisteredHomepage/tabid/92/Default.aspxhttp://startupia.org/http://startupia.org/http://startupia.org/http://startupia.org/http://www.myentre.net/UnregisteredHomepage/tabid/92/Default.aspxhttp://www.myentre.net/UnregisteredHomepage/tabid/92/Default.aspxhttp://www.myentre.net/UnregisteredHomepage/tabid/92/Default.aspxhttp://www.myentre.net/UnregisteredHomepage/tabid/92/Default.aspxhttp://www.myentre.net/UnregisteredHomepage/tabid/92/Default.aspxhttp://www.myentre.net/UnregisteredHomepage/tabid/92/Default.aspxhttp://www.myentre.net/UnregisteredHomepage/tabid/92/Default.aspxhttp://www.nwaf.org/Home.aspxhttp://www.nwaf.org/Home.aspxhttp://www.nwaf.org/Home.aspxhttp://www.nwaf.org/Home.aspxhttp://www.nwaf.org/Home.aspxhttp://www.nwaf.org/Home.aspxhttp://www.sba.gov/http://www.sba.gov/http://www.sba.gov/http://www.sba.gov/http://www.sba.gov/http://www.sba.gov/http://www.sba.gov/http://www.sba.gov/http://www.sba.gov/http://www.sba.gov/http://www.legis.iowa.gov/index.aspxhttp://www.legis.iowa.gov/index.aspxhttp://www.legis.iowa.gov/index.aspxhttp://www.legis.iowa.gov/index.aspxhttp://www.legis.iowa.gov/index.aspxhttp://www.legis.iowa.gov/index.aspxhttp://www.myentre.net/LinkClick.aspx?link=75&tabid=237http://www.myentre.net/LinkClick.aspx?link=75&tabid=237http://www.myentre.net/LinkClick.aspx?link=72&tabid=237http://www.myentre.net/LinkClick.aspx?link=72&tabid=237http://www.myentre.net/LinkClick.aspx?link=72&tabid=237http://www.myentre.net/LinkClick.aspx?link=72&tabid=2378/3/2019 Start Up Iowa Regional Plan
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owners, and helps to ensure the availability and quality of a knowledgeableworkforce and provides a forum for research and development, academic research,education and workforce training.More info at http://www.cedarvalleytechworks.com
Incubators
UNI Innovation Incubator/Purple Cat Cowork (Cedar Falls)
The Innovation Incubator at the University of Northern Iowa (UNI) allows newcompanies the ability to develop linkages and a synergistic relationship with theuniversity. With a convenient campus location, firms have an easy avenue toaccess the resources of UNI in a way that many start ups cannot. Their missionis to help start up firms in the Cedar Valley reduce their risks and accelerate theirgrowth via technical assistance and the creation of a supportive entrepreneurialecosystem. Dan Beenken at [email protected] or 319-273-4322 is the primary
contact.More info at http://www.bcs.uni.edu/ininc and http://www.purplecatcowork.com
Iowa State University Research Park (Ames)
Iowa State University Research Park has provided space and business developmentservices to start up and growth focused technology companies for 25 years. Theresult is an entrepreneurial support infrastructure composed of numerous peer businesses, professional services and University resources. Coworking facilitiesare provided at the Parks incubator and consist of small private offices and
Internet access. Mike Upah at 515.296.7828 is able to provide more information.Learn more about the Park by visiting http://isupark.org
West Des Moines Business Incubator
The West Des Moines Business Incubator was formed in 2010 to foster a climatefor entrepreneurial activity and to assist in the growth of small businesses withinWest Des Moines. The West Des Moines Incubator has office space for up to 14clients and also houses the Mid-Iowa Small Business Development Center, whichprovides its services to Incubator clients at no cost. Sherry Shafer at 515-331-8954can provide further information.More info at http://wdmbusinessincubator.com
StartupCity Des Moines (Des Moines)
StartupCity Des Moines is a private, invitation-only collegiate environment that brings startups and mentors together to develop early stage technology orientedstartups. Based in the heart of downtown Des Moines, they are a community of
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engineers, business builders, faculty, venture capital, angel investors, developersand marketing professionals interested in the nurturing and growth of theentrepreneurial ecosystem in and around Iowa. They employ active mentoringfrom serial entrepreneurs and founders, targeted education, and constant, ongoingcollaboration with our other peer startups to energize the environment for the
startups to thrive and grow.More info at http://www.startupcitydsm.com
University of Iowa Technology Innovation Center (Coralville)
For new businesses or established companies eager to initiate new endeavors, theTechnology Innovation CEnter (TIC) offers services and cost-effective laboratoryand office facilities. With access to the University computing facilities as well asresearch equipment and instruments, collaborations between academic scientistsand those in business can flourish. Advisory services also are available on issues
such as management, marketing, and finance. For more information, write OakdaleCampus, call (319) 335-4063, e-mail [email protected], or visit the website at http://research.uiowa.edu/techtransfer/tic_main.htm.
University of Iowa Research Park (Coralville)
The Univesrity of Iowa Research Park offers corporations locating at the Parkconvenient, sustained access to the extensive, relevant research resources ofThe University of Iowa. Here, growing enterprises have access to a state-of-theart business incubator, world-class research facilities and a dynamic faculty ofscientists, physicians and engineers at one of the worlds leading public researchuniversities.Established in 1989, The University of Iowa Research Park (formerly OakdaleResearch Park) leases building sites and space to growing technology companiesthat require sustained research relationships with the UI.
The new BioVentures Center's business incubator facility offers flexible, cost-effective wet lab space to new business ventures. The UI business incubatorprogram was among the first in the nation when it was established in 1984 and hasnurtured nearly 100 UI spinouts and other new ventures.More info at http://researchpark.uiowa.edu/index.php
North Iowa Business Incubator (Mason City)
The North Iowa Business Incubator is mixed use incubation space for thetemporary development of start up businesses. Tenant occupancy is typicallyup to 36 months. The incubator features all the traditional services of mixeduse incubation with additional non-traditional services made possible by its
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to Startups and Entrepreneurs.
Foundry Coworking (Des Moines)
Foundry Coworking is a collaborative office space for startups, freelancers,and creatives in downtown Des Moines. While you can rent a desk anywhere,they strive to build community and collaboration to better all of their members.Contact: Alexander Grgurich, [email protected], on the web atwww.foundrycoworking.com, or by phone at 515- 321-9073.More info at www.foundrycoworking.com.
Vault Coworking & Collaboration Space (Cedar Rapids)
A joint venture of Corridor Coworks and Seed Here, Vault Coworking &Collaborations Space in Downtown Cedar Rapids is a brand-new flexible andaffordable professional office space for entrepreneurs, creatives, freelancers
and startup companies, all wrapped in a collaborative, friendly and supportivecommunity of like-minded people. More info at www.crvault.com. Contact AndyStoll at [email protected] or 424-888-2434 for more information.More info at http://crvault.com
Veel Hoeden (Pella)
Veel Hoeden is Iowas first rural coworking space located in downtown Pella,serving the needs of startups, small businesses and entrepreneurs. They providea space where collaboration, community and idea achievement can flourish.
Contact: Joel Bennett, Chief Dreamchaser, [email protected], or by phone641-780-7858.
More info at http://veelhoeden.posterous.com
Iowa Startup AllianceThe Iowa Startup Alliance is a statewide cooperative agreement that allowsresidents of the incubators and coworking spaces within Iowa the ability to sharethe facilities and resources of peer organizations within the state. This providesentrepreneurs with a network of locations that they can use when they travel withinIowa for customer or investor meetings, networking events, etc.Participating entrepreneurs and startups of one of the organizations need onlyto reach out to the receiving organization in advance of their visit to arrange forspace and resources. As each organization is different, the duration, resources andspace will vary from location to location, however startups can depend on a warmwelcome and the infrastructure they need to hit the ground running.
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Professional Services for StartupsThere are a number of law firms, accounting firms, marketing firms andinformation technology providers with targeted programs to assist entrepreneursin their initial stages of creating companies. Although new programs are beingcreated daily within Iowa, below is a partial list of service providers and theirprograms:
Brown Winick
BrownWinicks Startups Start Here program reflects the BrownWinick processof getting to know the clients business goals, helping the client prioritize theirlegal needs, and executing on those priorities. Each clients needs are evaluatedprior to any services being provided or fees charged, and the client only pays forservices that they need when they need them. The program also permits attorneysto work with startups to provide certain services on a flat fee basis and to providebudget billing options at a time when access to capital is often limited. It is their belief that by helping their clients create strong legal foundations they will helpthem succeed. Ultimately, that will benefit the clients, BrownWinick, and the state.Startups can email [email protected] to set up an initial consultation.More info at http://www.brownwinick.com/startup
Davis Brown
Davis Brown Law Firm, one of the largest law firms in Iowa, has developeda unique and innovative online delivery platform for legal services tailoredspecifically for startups. Using the websitewww.thestartuplaunchpad.com clientshave the ability to obtain free educational materials on a variety of topics integralto startups and they may create important and highly customized legal documentsthrough our document automation platform.
The document automation platform and other improvements to the traditionalworkflow used by attorneys enable us to offer our documents for lower prices(typically for flat-fees) and deliver them faster than they were in the past.
To date, clients have access to over thirty legal documents through the web portal, including business formation documents, non-disclosure agreements,federal trademark applications, patent applications, employee confidentialityand invention assignment agreements and SaaS agreements. The innovativeuse of technology to enhance the delivery of legal services has not, however,compromised the Davis Brown tradition of personal counseling and service. TheStart-up Launchpad is backed by over 80 attorneys offering services in areasincluding intellectual property, corporate, tax, securities, software and cyberlaw,employment, immigration, real estate, and litigation. A number of those attorneys
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Professional Organizations
Iowa has a rich culture of supporting infrastructure for startups and entrepreneurs. Nowhere is this stronger than in the industry and professional associations thatthrive within the Hawkeye State. In addition to broad organizations such asthe Iowa Association of Business and Industry, there are also industry-specificorganizations within Information Technology and Biotechnology.
Iowa Association of Business and Industry (ABI)
ABI is a broad-based organization of more than 1,400 Iowa businesses thatemploy over 300,000 Iowans working together to promote Iowa commerce.The philosophy behind this expanded organization is simple: there is strength innumbers. By including more and more diverse Iowa businesses, ABI is able to play
an even more active role in shaping Iowa's future. Uniting around the key issues,which all businesses have in common provide ABI, and each ABI member, with astrong voice for change and progress in Iowa.ABI represents a diverse group of businesses, including manufacturers, processors,retailers, insurance companies, financial institutions, publishers and printers,transportation services and the professions. Large or small, urban or rural, eachmember business adds its own particular resources and expertise to the growingstrength of the Iowa business community; and, in turn, each receives the manybenefits ABI membership provides.
With weekly webinars on universal business topics and monthly opportunitiesfor regional member gatherings, ABI provides a perfect forum for cultivating business-to-business relationships with business leaders from all corners of thestate. If there is one thing we know about Iowans it is that we like to do businesswith people we know and trust. ABI provides the best opportunity in the state tobegin those relationships.More info at http://www.iowaabi.org
Information Technology
The Technology Association of IowaThe Technology Association of Iowa (TAI) is the premier professionalorganization accelerating the success of Iowa's technology industry and tech- based economy. Their members include organizations of every size in virtuallyevery aspect of technology creation, production, application and education in Iowa.Iowa's tech sector fuels broad-based economic growth and is the foundation for thestate's 21st Century economy. They are Iowas statewide voice for technology.
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Established in 1997 as the Software Council of Iowa, the original organizationformed through the joint efforts of industry leaders, the Iowa Department ofEconomic Development and the Governor of Iowa.
Today, as the Technology Association of Iowa, the organization strives tostrengthen Iowa's technology ecosystem and enhance the state's reputation as atechnically advanced place where world-class technology firms and organizationsthrive.More info at http://www.technologyiowa.org
Seed Here
Founded on Independence Day 2011, Seed Here is a new model, social goodstartup working to connect and grow the organic, grassroots entrepreneurial andcreative community in the Iowa City/Cedar Rapids region and across The SiliconPrairie, with a special focus on supporting high-growth entrepreneurs, creativesand innovators. Seed Here primarily:
Operates Vault Coworking & Collaboration Space in Cedar Rapids Develops new online tools to connect the regions entrepreneurial
ecosystem Creates and hosts events and programs to connect and develop the
entrepreneurial community Actively connects Iowa with entrepreneurial ecosystems, startups and
entrepreneurial resources and opportunities regionally, nationally andinternationally.
Seed Here works primarily through partnerships and has co-created projects withThe Entrepreneurial Development Center (EDC), The Technology Association ofIowa (TAI), The Iowa Capital Investment Corporation, The Cedar Rapids & IowaCity Chambers of Commerce, The Cedar Rapids Convention and Visitors Bureau,The Greater Omaha Chamber of Commerce, The Iowa City Area DevelopmentGroup (ICAD), The University of Iowa Tippie College of Business, The JohnPappajohn Entrepreneurial Center, The Corridor Business Journal, Source MediaGroup, The Gazette, Silicon Prairie News, Startup City Des Moines, The StartupAmerica Partnership, Van Meter, Cramer Dev and numerous small and mediumsized businesses, among others.
Founded by social entrepreneur Andy Stoll, community-builder Amanda Styronand a growing community of entrepreneurs and creativesMore info at www.seedhere.org
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Biotechnology
Iowa Biotechnology Association
Since 1994, the Iowa Biotechnology Association has provided benefits and
services to promote the interests and growth of the life sciences industries inIowa. They are a non-profit, membership-based organization with a diversifiedmembership including industry companies from all segments of biotechnology,universities & colleges, state & federal associations, as well as numerous service& support companies. The Association seeks to promote the success and growthof biotech-based business in Iowa, ultimately securing a strong biotech economywhile growing business & increasing influence nationally and around the globe.More info at http://www.iowabio.org
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Hosted by The Iowa City Area Development Group (ICAD) and Cowrk Iowa City,
Coworking Jellys are monthly, one-day events in Iowa City that bring together
entrepreneurs, creatives, freelancers and independent contractors to work together
in a shared office environment. Attendees can focus on their own projects, see
what others are working on and make new connections. There is no fee, no agenda
and no registration. Coffee, wireless internet and electrical outlets are provided
free of charge.
More info at http://cowrk.com
Iowa Innovation Expo
The Iowa Innovation EXPO consists of a coordination of three state-wide events,to enable fruitful connections between resources and entrepreneurs. It culminatesin a convention-like setting for celebrating the area's entrepreneurial companies
and individuals. Innovation EXPO events are designed for entrepreneurs, creatives,investors and business leaders in the Iowa City/Cedar Rapids area and across thestate to connect, help the region grow more new business, create jobs, keep ourregion vibrant and globally competitive and to celebrate entrepreneurs.The Innovation Expo includes:
Seed Heres Startup StoriesA hosted breakfast event to kick-off the day that presents one or moreentrepreneurs sharing the story of their successful local or regional startup
company. The Technology Association of Iowa's (TAI) "Pitch and Grow"
16 entrepreneurs at virtually any stage of the business lifecycle practicetheir pitch before a supportive "think tank" of industry experts and businesssavvy people and receive constructive feedback.
The Iowa Capital Investment Corporation's "Iowa Seed and Venture
Forum
Entrepreneurs pitch their more-developed business ideas for investmentsto a panel of expert Seed and Venture Fund investors from across the stateand country.
Startup Drinks - Entrepreneurs and startup enthusiasts gather around a bar
to have a pint and discuss what they are working on, what they need helpwith and what they can do for each other.
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Iowa City Corridor region. Learn ideas from a panel of successful entrepreneursabout how to transform your breakthrough idea into a thriving business in aninteractive panel and Q&A sessions, and hear how our region can foster a moreentrepreneurial culture. Moderated by Corridor Business Journal Editor JohnKenyon, the event includes a networking breakfast and occurs annually in late
Novembver or early December.More info at http://www.corridorbusiness.com
Fastest Growing Companies
The Corridor Business Journals annual Fastest Growing Companies breakfastidentifies and honors the Cedar Rapids/Iowa City Corridor regions most dynamiccompanies that have made significant contributions to the strength of the localeconomy. Nominated companies are ranked according to revenue growthover a three-year period, both dollar and percentage increases are taken intoconsideration. The top 20 companies are announced at the event, with remarks
from the fastest growing company. The Entrepreneur of the Year will also berecognized and give remarks. The event occurs annually in May.More info at http://www.corridorbusiness.com
Recipe for Business Success Seminars
Developed by EDC CEO Curtis Nelson, The Business Success Seminar isuniquely designed to help Iowa entrepreneurs uncover opportunities for improvingtheir business while providing the support and connections necessary to makethose opportunities a reality.
This one-day session allows entrepreneurs to explore the key elements ofdeveloping a successful business model in an interactive environment. Measureand score your business against core business principles and walk away with clearopportunities to grow and improve your business. The seminar covers:
Strategic Fit finding the best market fit for your product. Business Planning writing and implementing a plan that works. Balanced Executive Teams what they are and how to develop them. Great Leadership what it is and why its critical to success. Resources what you need to improve your business.
More info at http://www.edcinc.org
Recognition for Entrepreneurs
Prometheus Awards
The Prometheus Awards are recognized as Iowa's largest and most prestigious
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Press and Social SupportThe robust ecosystem of entrepreneurs, education, govern