Startup Cities: Austin, USA - Me Convention 2018
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Leslie Pool, Council Member of Austin City Council presented Austin as part of the Startup Cities programme at the Me Convention 2018 in Stockholm featuring 20 cities, hosted by Sam Michel. More at: https://toodlepip.co.uk/2018/20-startup-cities/
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Startup Cities: Austin, USA - Me Convention 2018
- 1. GREETINGS FROM AUSTIN TEXAS CITY OF AUSTIN COUNCIL MEMBER LESLIE POOL SEPT 2018
- 2. GLOBAL BUSINESS EXPANSION 210/11/16CITY OF AUSTIN GENERAL INFORMATION AUSTIN, TEXAS Minority - Majority City 20% Foreign Born Median Age 31.5 Over 70% of adult population has post secondary education Accessible by 7 Non-Stop International Flights 1 million residents; annual growth about 2%
- 3. GLOBAL BUSINESS EXPANSION 310/11/16CITY OF AUSTIN Austin Is #9 ForPerCapita Investment (Citylab, 10/3/17) Texas Is 2nd Best Tax System For Entrepreneurship & Small Business (Small Business & Entrepreneurship council, 6/21/17) Austin Is #2 On Annual Kauffman Foundation Startup Activity Index (Kauffman Foundation, 5/18/17) Innovative City What Others Say About Austin, Texas Austin Is #13 On Global Startup Ecosystem Ranking & 5th Highest U.S. City In The Ranking (Startup Genome, 4/12/17)
- 4. GLOBAL BUSINESS EXPANSION 410/11/16CITY OF AUSTIN Entrepreneurship in Austin Named #1 City in America to Start a Business - CNBC Recognize there are 3 types of entrepreneurs in Austin: 1)Small businesses that meet the needs of locals 2)Creative businesses that impact the livability of Austin 3)High growth startups – often tech based The City of Austin is best @ supporting: 1)Small businesses that meet the needs of locals 2)Creative businesses that impact the livability of Austin
- 5. GLOBAL BUSINESS EXPANSION 510/11/16CITY OF AUSTIN Entrepreneurship in Austin Private Partners AND Private Partners are best @ supporting High Growth Tech Startups •Home to 46 incubators •5,500+ high-tech companies • Home to Apple, Samsung, IBM, Amazon, Whole Foods, 3M, AMD Intel, Oracle, National Instruments and many other global companies •University of Texas, a Tier 1 research university • houses another 25 incubators inside the University •Hometown of SXSW, one of the fastest growing accelerators in the world $1.2B VC funding in 176 deals for Austin Companies in 2017
- 6. GLOBAL BUSINESS EXPANSION 610/11/16CITY OF AUSTIN City Initiatives to Support Entrepreneurship Analysis & Research ― Music Census – USA’s 1st ― Cultural Asset Mapping
- 7. GLOBAL BUSINESS EXPANSION 710/11/16CITY OF AUSTIN City Initiatives to Support Entrepreneurship Business Development Services EARLY STAGE Artist CareerTraining BIZAIDOrientation Permitting Support EMERGING One-on-one Coaching Mobility Innovation Partnership SCALING BUSINESS Alibaba Midnight Pitch Trade Missions Soft Landing Pads
- 8. GLOBAL BUSINESS EXPANSION 810/11/16CITY OF AUSTIN City Initiatives to Support Entrepreneurship Access to Capital in 2017 Incubation & Incentive Programs SMALL BUSINESSES THAT MEET THE NEEDS OF LOCALS $700K+ CREATIVE BUSINESSES THAT IMPACT LIVABILITY $12M HIGH GROWTH TECH BUSINESSES [re]Verse Pitch Competition FastPitch Competition Family business & Veteran business loans Artist – In – Residence Tempo Art In Public Places (30 year program)
- 9. GLOBAL BUSINESS EXPANSION 910/11/16CITY OF AUSTIN PROUDHOME OF Accelerator participants received more than $3.10Billion in total funding between 2009 to 2016 Of the 353 participating companies, 71% (250/353) received funding 50 (14%) have been acquired Accelerator success stories include Siri, Twitter, Trustev, Klout, Foodspotting, and Wildfire
- 10. GLOBAL BUSINESS EXPANSION 1010/11/16CITY OF AUSTIN EXPERIENCE AUSTIN FOR YOURSELF! For Business Programs Contact: For Creative Business Programs Contact: Casey Smith, International Program Manager Meghan Wells, Cultural Arts Division Manager Economic Development Department Economic Development Department Casey.Smith@austintexas.gov Meghan.Wells@austintexas.gov +1 (512) 974-6416 +1 (512) 974-9314
Editor's Notes
- Greetings from Austin, Texas! My name is Leslie Pool, elected City Council Member in 2014 and re-elected in 2016. I am honored to meet with you all, learn from your best practices, and share with you some of ours. Thank you to our good friends at SXSW for helping us connect around the world with all of you. Thank you to Daimler for arranging such a lovely conference of intelligent people and innovative cities.
- Austin, Texas sits right in the middle of the United States, putting us four hours west from New York City and four hours east from San Francisco. We are a booming city at just under 1 million residents and doubling in size ever 25 years. We are a young population with an average age of 31 and a half years old. Most of the adult population has some post secondary education –from community college education to phD graduates The majority of our city is considered “minority” populations in the United States. And almost 20% of our population is foreign born. We are happily becoming a more diverse city every year. One reason for our diversity is our accessibility for foreign markets to visit. We have 7 non-stop international flights and a wonderful airport packed with local restaurants and businesses.
- If you’ve heard of Austin you may have heard we are the “Live Music Capital of the World” and we are with over 300 live music venues across the city, but we are also known for our innovation. Here’s a few things other’s have said about us.
- When we provide services to our residents we think about types of businesses that impact our city’s amenities, livability, and workforce opportunities. Startups tend to fall into one of three categories: Small businesses that meet the needs of locals by providing products and services like gym memberships, consumer packaged goods, and retailers Creative businesses that impact the livability of Austin. These are our artists, musicians, performers, and visual artists. These creatives are tiny individual startups that need unique services to grow. High growth startups – these are often tech based. These companies require supports such as acting as a pilot (non-paying) customer for case studies to funding support to ramp up their workforce to meet the demand The City of Austin is really best at supporting the first two types of startups. We are working towards supporting more high growth tech startups, as you’ll see later when I talk about a Transportation Department Initiative, but until then the private sector is really being a great partner in providing funding to the highest quality startups in Austin.
- In fact the private sector provided $1.2b in venture capital to local Austin startups across 176 deals. This figure doesn’t even include the angel / seed investment in early stage startups in Austin. Besides funding, Private Partners are best at supporting High Growth Tech Startups through the 46 unique incubators in Austin and 25+ accelerators The more than 5500 high tech companies often have their own intiatives to seek and fund startups building unique products that can fit their business models. Regularly the major corporations acquire or invest in the startups in Austin through their own programming. University of Texas which is a public university, but independently run from the City of Austin, is a tier 1 research university and is graduating approximately 15k top notch innovators every year. UT has 25 incubators that reside inside the University specifically for their student body. Ranging from business, engineering, to the brand new Dell Medical School Co-Lab, a robustly equipped wetlab space The private sector includes SXSW, of which Austin is the proud hometown of. SXSW has one of the fastest growing accelerators in the world which we’ll reference in the upcoming slides. The private sector continues to increase investment and resources to startups in Austin because the culture of innovation in Austin is so strong – a regular inbound of new student population, fresh graduates, a great quality of life, and low cost of living are what keeps Austin creative
- Back to how the City Supports Entrepreneurship We conduct regular industry research studies and analysis that is released to the public Some of the research and anaylsis the City has conducted are the: -Music Census (America’s first study that looked at the music scene as a business industry in Austin and the needs of venue owners, musicians, and record labels) -and Cultural Asset Mapping which helped the City observe where creative talent is focused to begin our “placekeeping” and “placemaking” investment strategy
- Another way the City of Austin support entrepreneurship is through Business Development Services We support startups at the early stage to scaling into global markets stage. Some of the Early Stage Programs help companies get to surviving like: Our own Artist Career Training – a 9 week intensive training that helps artists build their business plan and model The BizAid Orientations – which are held a public libraries across town that help orient the new business owner to important things to know and access to market research databases the City procures for public use Permitting Support – often our smallest business owners don’t know much about the construction field and knowing how to read schematics to suit the permitting department for their commercial retail or business front, so our Small Business don’t have to be experts on how to navigate that system like architects and builders have to Emerging Businesses – companies that have surpassed the “survival” stage and are beginning to thrive and be sustainable We provide one-on-one coaching to the businesses and help them with market analysis and competitive landscape reviews We have a Mobility Innovation Partnership that is a product of the Transportation Department. This is the partnership I was mentioning before that emerging startups with a mobility innovation can test their product on City streets in a pilot or case study opportunity. This positions the company much better with the private investment community to shows buy-in, potential for scale, and impact with a large institution Scaling Businesses – these programs are for companies that are thriving and now looking to scale into international markets We have a special partnership with Alibaba, ecommerce giant out of China, that sets Austin consumer packaged goods companies up with a vetted and trusted distributor in China and sets the stage for a pitch event to literally thousands of buyers who are looking specifically for products NOT made in China. The Midnight Pitch event this year resulted in $2.2m in sales for Texas companies. Trade Missions – these are pretty standard, but are effective. We leverage our international community in Austin to co-organize and arrange meetings with their connections in these global regions. The outcomes range from new customers/contracts, to new educational partnerships, to major agreements as high as $50m in new real estate investment Soft Landing Pads are literal co-working spaces and networks in Austin available to our partner cities who have scaling businesses ready to expand into the USA. Our partner cities also have these spaces open for Austin businesses looking to expand abroad into their markets. Last year we had 3 companies expand into Austin using this vehicle and it resulted in over $140k in new professional service work for local consultants, lawyers, accountants and an increase in over 25 new jobs.
- An finally, the City Supports Entrepreneurship with capital and investment For the first type of startup I was talking about, the small businesses that meet the needs of locals, last year we provided over $700k in funding or awards to seed these businesses Our Creative businesses receive the most financial support - last year to the tune of $12m And our High Growth Tech businesses receive access to capital via incubation programs like the brand new Fashion Incubator at Austin Community College, which will help scale up fashion businesses of all sorts (wearable tech, apparel, home textiles, and biotech apparel)
- I would be remiss to mention the amazing outcomes of our private partner, SXSW. We are so proud of their growth and internationalization. At 2018’s event there were over 100 international countries represented at SXSW, which is incredible to think about it’s origins thirty years ago. Between 2009 to 2016 startups in the SXSW accelerator (now these are not all Austin companies, these are companies from all over the world) received $3.1 Billion in investment 353 that participated – 250 of them received funding And 50 of them have already been acquired It’s this beautiful, inspiring mash up event that shows the cross-sector industries of film, tech, education, and music. The most innovative companies in each of these industries gets together and they share and collaborate. It’s essentially an intensive view of how Austinites operate – we are connected & collaborative community.
- Thank you so much for your time today! And to SXSW & Daimler for arranging this event that highlights best practices for cities to learn from each other. If you have followup questions on business programs we provide please contact Casey Smith If you have follow up questions on creative business programs the City of Austin provides please contact the Cultural Arts Division Manager, Meghan Wells