Overview of Peninsula Technology Incubator

1. 1/20/2015

2. Mission
• To find nascent ideas and assist the
originator in the creation of new
ventures
• To enhance the success of early stage
entrepreneurial technology
companies in growing into going
concerns
• To support the economic growth of
the region

3. Vision
• To catalyze the creation of 40 new
companies that employ on average
100 people within five years, creating
4000 new jobs.
• To be recognized as one of the five
best regions in the United States for
startups

4. Near Term Milestones
Incubator Manager
 Reach Break-even in
Incubator Operations
 Reach Break-even for
Start-Peninsula events
 Successfully lobby for
funding of super-
computer
 Further diversify sources
of revenue
 Increase revenue such
that a receptionist can
fit the budget
 Successfully apply for
Fab/Lab funding
Incubator Manager
 Continue engagement
on Science Park vision
 Continue development
of Entrepreneurship
Clubs at regional
universities
 Recruit an additional five
client companies by
March 2014
 Continue to engage
strategic entities across
the region in support of
entrepreneurship

5. Committees
Incubator Manager
PTI Board of
Directors
NIA Board of
Directors
Advisory Board Review Committee

6. Advisory Board
Composed of local business leaders:
HR – Anne Lise Gere – Owner Gere
Consulting
Entrepreneurship – J.R. Locke – Director
Hampton University Incubator
Capital Formation – John Paris –
Managing Partner, Private Equity
Practice, Williams Mullen
Entrepreneurship – Marty Kaszubowski –
Director Center fo Economic
Engagement, Old Dominion University
Business – Mike Kuhns – President
Peninsula Chamber of Commerce
Accounting – Paul DiNardo – Partner
Wall Einhorn Chernitzer
Online Marketing – Tim Jones – Owner
Eternal Worx
Entrepreneurship – Tim Ryan – Director
Triangle Business Innovation Center
Finance – Anne Shuford
Responsibilities
Mentor Incubator clients
Provide expert assistance in
their respective areas of expertise
Become involved with funding
Incubator clients

7. Investment Fund/Network
Establish a $2MM Seed and Angel
level investment fund that can make
40 x $50K investments in the next 2-3
years and participate with other larger
funds when appropriate
***This continues to be a gap. Will
focus on funding for startups in 2014***
Advantages to Incubator
One more reason that
businesses would seek our services
Adds credibility with both
investors and clients that the
incubator would have skin in the
game.
Advantages to Incubator Clients
Eliminates biggest reason new
businesses fail is lack of access to
capital
Establish an Angel network of 150 high
net worth individuals who each pay
$1000 per year to participate
($150,000 budget/yr) and commit to
making one $10,000 investment during
the three year period for a total of
$15,000,000 over three years.
**This continues to be a gap. Will
focus on funding for startups in 2015***

8. Copyright Peninsula Technology
Incubator All Rights Reserved1
Regional Strategy: Ideation to Commercialization Pipeline

9. Funding
Because of competition between municipalities it is expected that we will operate largely
on funds provided by the City of Hampton however other sources of revenue are
materializing.
Other potential sources of funding include:
1)Rent for Space estimated at approx. $30K
2)Profit on Start Peninsula 3.0 estimated at $10K
3)Proceeds from Grants from Federal EDAP program (unlikely but potentially larger
$25K – $500K)
4)Actual proceeds from SBA Grant ($50,000)
5)We view matching contributions from Newport News as possible in the 2015
timeframe.

10. Funding cont’d
Funding Source Amount Percentage Amount Percentage Amount Percentage Amount Percentage Amount Percentage
Hampton EDA $50,000.01 56% $50,000.01 51% $0 0% $0 0% 100,000.02$ 53%
Start! Peninsula 3.0 Sponsorships $20,630.11 23% $17,837.37 18% 38,467.48$ 21%
SBA Grant $2,500.00 3% $15,527.15 16% 18,027.15$ 10%
Rents Paid by Clients $9,152.90 10% $6,604.53 7% 15,757.43$ 8%
Value of Subsidized Rent from NIA $7,464.38 8% $7,464.38 8% 14,928.75$ 8%
Fees Paid for Accelerator Programming $0.00 0% $1,085.20 1% 1,085.20$ 1%
Regional Efforts/Consulting $0.00 0% $1,000.00 1% 1,000.00$ 1%
Interest $0.51 0% $1.41 0% 1.92$ 0%
Total $89,748 100% $97,433 100% $0 0% $0 0% $187,181 100%
* Value of Subsidized rent calculated as 3981 Sq Ft @ $10.50 vs $18.00 market rate
3981 18.00$ 71,658.00$
3981 10.50$ 41,800.50$
Annual 29,857.50$
Table D
PERCENTAGE OF INCUBATOR OPERATING EXPENSES FUNDED BY HAMPTON EDA
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Totals

11. Client Companies
TYPE
# Client Name SI/AI Level 0 Level 1 Level 2 Level 3 Level 4 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total
1 York and Whiting SI 1 3 1 4
2 Global Green Energy Alternatives SI 1 3 3 6
3 Laser and Plasma Technology SI 1 2 2 4
4 Pancopia SI 1 2 2
5 Flow Diagnostics SI 1 0 0
New Client Totals 0 1 2 1 0 8 8 0 0 16
TYPE
# Client Name SI/AI Level 0 Level 1 Level 2 Level 3 Level 4 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total
1 SMD Corp SI 1 1 2 3
2 HIS Energy SI 1 37 45 82
3 Citadel Logic SI 1 3 6 9
4 EMB Infotech SI 1 3 2 5
5 US Education Gateway SI 1 5 1 6
6 CrossRope SI 1 29 23 52
7 FreePing (Formerly HeadCount) SI 1 44 43 87
Existing Resident ClientTotals 0 0 3 1 3 122 122 0 0 244
TYPE
# Client Name SV/AV Level 0 Level 1 Level 2 Level 3 Level 4 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total In Out
1 Feedback SV 1 15 5 20 1
2 Jane Lockhart AV 1 36 36 1
3 Dianne Cesvette AV 1 36 36 1
4 Michael Cook AV 1 40 40 1
5 Myra Hicks AV 1 40 40 1
6 Steve Woll AV 1 36 36 1
7 Duncan Hamra AV 1 36 36 1
8 Will Jenkins AV 1 36 36 1
9 Landon Bland AV 1 36 36 1
10 Colin Coyle AV 1 18 18 1
11 Judy Bradby AV 1 40 40 1
12 Tom Spalthoff AV 1 36 36 1
13 Abigail Johnson AV 1 18 18 1
Totals 0 12 0 1 0 15 413 0 0 428 1 12
TOTAL ALL CLIENTS 0 13 5 3 3 145 543 0 0 688
Full-time Part-time Full-time Part-time Full-time Full-time Part-time Full-time Part-time
29 25 26 17 55 42
2 3 2 3 4 6
$6,000 $0 $0
3rd Qtr 4th Qtr
Actual Revenue Aggregate
Hampton Virtual in Aggregate
CLIENT STATUS
EST. REVENUES OF VIRTUAL CLIENTS 1st Qtr 2nd Qtr
EST. vs ACTUAL REVENUES OF RESIDENT CLIENTS 1st Qtr 4th Qtr
Estimated Revenue Aggregate
$18,000
CLIENT STATUS
CLIENT STATUSEXISTING RESIDENT CLIENTS
NEW RESIDENT CLIENTS
VIRTUAL INCUBATOR CLIENTS
2nd Qtr 3rd Qtr
HOURS ASSISTING CLIENTS
HOURS ASSISTING CLIENTS
HOURS ASSISTING CLIENTS
$897,500 $3,675,500
$24,000
Total
$0
Part-time
3rd Qtr Total
HAMPTON
13
Total
$1,167,499 $1,997,886$830,387
$1,127,500 $801,000 $849,500
2nd Qtr
Non-Hampton Virtual in Aggregate
4th Qtr
$0 $0
Virtual Clients in Aggregate
Hampton Resident Clients in Aggregate
INCUBATOR CLIENT EMPLOMENT
107Total Number of Employees 59 48 0 0
1st Qtr

12. Successes
In the last year PTI affiliated companies have won the following awards:
•HIS Energy – Tech Cocktail’s - “Hottest Tech Startup in Baltimore” and "Hottest Startup in
the Nation"
•FreePing – Tech Cocktail’s - "Hottest Startup in DC",
•Feedback - Inc. Magazine's - "Get Started NoVa" grand prize winner
•Aesop Technologies - 1st Prize at Semper Startup and 1st Prize at Start Norfolk
•Crossrope – Chosen by Babson College and Goldman Sachs to participate in 10,000 Small
Businesses, the only company from Virginia to be selected
In the last three years PTI affiliated companies have won over $100,000 in prizes and received
$590,000 in investment. There is another $780,000 in investments expected in the next 90 days.
Last year PTI was named one of the top fifty accelerator programs in the United States by the
Small Business Administration. It is interesting to note that the SBA application required us to
look at metrics that we were not tracking. The companies we serve fall into the following
demographics that are of interest to the SBA and may be of interest to the reader:
•18.2% of companies we serve are women owned
•72.7% are minority owned
•27.3% are Veteran owned
•45.5% either manufacture or intend to manufacture a physical product

13. Summary
Problem Statement: It is more difficult to build a business in Hampton
Roads, than in other localities. Therefore viable businesses are either
stillborn or relocated to other municipalities where it is easier.
Corollary: This lack of new and exciting businesses with associated highly
compensated jobs encourages our best and brightest to move to other
areas (Research Triangle, NOVA and elsewhere)
Proposed Solution: Create an environment where it is easier for students
and researchers to create high tech, exciting businesses, by easing
access to capital, and expertise and therefore enhance the probability of
succeeding in business in Hampton Roads.

14. Discussion / Thoughts ?