1.
HYBRID INCUBATION MODELS
Best & Next Practices

2.
JASPER WELCH
Co-Founder, DurangoSpace
EiR – SCAPE – Durango, CO
2015 International NBIA Conference, Denver, Colorado
ABOUT US
JEFF SAVILLE
Executive Director,
Center for Entrepreneurial Innovation

3.
STAYING RELEVANT
NBIA members worldwide
are rethinking their business
incubation models to
become…
Founder-focused, with flexible space
& creative entrepreneurial programs
that reach across traditional
boundaries & locations…
2015 International NBIA Conference, Denver, Colorado

4.
Last Practices:
Facilities-Focused, Rigid Leases, Formal Application
Process, Business Plan Requirement, Limited
Programs, Isolated Locations (less connected)
Best Practices (NBIA Research):
A) The Business Incubator (in a community and
region) aspires to have a positive impact on economic
health by maximizing the success of startup and
emerging companies
B) Business incubator itself is a dynamic, sustainable
and efficient operation
Next Practices:
Founder & Entrepreneur-focused, Flexible Space and
Outreach Programs, Business Modeling,
Entrepreneurial Hub, Creative, Strategic Partnering
2015 International NBIA Conference, Denver, Colorado
HYBRID INCUBATION MODELS
last, best & next practices

5.
Pre-Incubation:
Coworking, Business Plan Competitions, Startup
Weekends, Accelerators (short term), NxLevel,
Makers Space, Ignite Events,
Business Incubation:
Place-Based Innovation, Dedicated Space &
Programming for Start-Ups with Mentors,
Milestones & Graduation
Launching Companies:
Economic Gardening, Targeted Cluster
Strategies, Competitive Intel, Equity Investment,
100K SF Coworking Communities,
2015 International NBIA Conference, Denver, Colorado
YOUR ENTRE-ECOSYSTEM
what does it look like?
TECHColumbus
SCAPE-DurangoSpace

6.
TRENDS & OPPORTUNITIES
emerge from change & transition
Emerging models: Mega-
coworking communities that are
curated and focused on tech
startups and ecosystems…
2015 International NBIA Conference, Denver, Colorado Atlanta Tech Village

7.
TECHCOLUMBUS
NBIA member TECHColumbus
functions as entrepreneurial
hub – more open, less walls,
company-focused, space is
secondary
2015 International NBIA Conference, Denver, Colorado TECHColumbus

8.
HOW DOES WORKPLACE
CHANGE IMPACT INCUBATION
Less rigid work space, more
shared space, freelancers &
entrepreneurs, cross functional
teams, mobility over fixed
location - Hybrid Incubation
Models are adapting to this
workplace reality!
2015 International NBIA Conference, Denver, Colorado

9.
NONTRADITIONAL OFFICES
Surprising Statistics:
40% of the workforce will be freelancers, temps,
independent contractors or solo-preneurs by 2020
Top FORTUNE companies (CISCO, eBay, Yahoo,
etc.) reported that at least 20% of their employees
telecommute regularly – approx 50 million full or part
time employees (all businesses) in US marketplace
Telecommuting grew by nearly 80% since 2005
Number of co-working spaces worldwide has
doubled every year between 2006-2012
Source:
http://globalworkplaceanalytics.com/telecommuting-
statistics
2015 International NBIA Conference, Denver, Colorado

10.
2015 International NBIA Conference, Denver, Colorado
Pre-Incubation tools and programs are
diverse & expanding –
Accelerators, Start Up Weekends, Business
Plan competitions, Venture Madness
Business plans are optional; being replaced
by “lean startup” models
Bricks & mortar business incubation needs
to be founder-focused with facility support
Business Incubation TRENDS
Impacting incubation and Entrepreneurial support organizations

11.
2015 International NBIA Conference, Denver, Colorado
Virtual teams: Working across space, time
and organizational boundaries
New Entrepreneur Support
Organizations (ESO’s) in marketplace
Workplace changes: Emergence of the
“work anywhere platform”
Business Startups can emerge from
anywhere, with or without incubation
Entrepreneurial TRENDS
Impacting incubation and Entrepreneurial support organizations

12.
INCUBATION GONE GLOBAL
Regional ecosystems are being
analyzed (by incubators, municipalities,
economic development organizations)
and best practices are being integrated
into and adopted by international
communities.
2015 International NBIA Conference, Denver, Colorado
City of Phoenix hosts Mexican
entrepreneurial delegation

13.
Large international corporations, such
as Adobe, are looking to nurture the
innovations and ideas of their own
employees.
Partnership opportunities exist to form
internal “incubators” within these corporations
to provide resources and help develop new
businesses from these innovations.
2015 International NBIA Conference, Denver, Colorado
CORPORATE INCUBATION
Corporations looking to capture & nurture innovation

14.
Founder-focused: It’s all about the founders, entrepreneurs and
management teams!
Flexible Space: Coworking, Coffee Shops (on-location), Flex
Workspace, Conference Space, Private Reserved Space. FF&E-
Focused on Startups
External (Outreach) Programs: ESO’s reaching out to entrepreneurs!
Business Modeling: Lean Startup, Business Model Generation Canvas
Entrepreneurial Hub: ESO’s as center of entrepreneurial activities
Strategic Partnerships: Across ecosystems, across programs, private/
public partnerships,
Creative Approach: Coaching the ecosystem & ESO’s to stay relevant!
2015 International NBIA Conference, Denver, Colorado
HYBRID MODELS & INNOVATION
founder-focused, lean startup, flexible space

15.
CEI LEADING THE WAY
for innovation in Arizona
2015 International NBIA Conference, Denver, Colorado
WHERE TRADITIONAL BUSINESS INCUBATION
MEETS NEW & INNOVATIVE SUPPORT FOR
ENTREPRENEURS
Incubation Best & Next Practices (mentors, onsite
business development assistance, partnerships)
+-Unique pre-incubation / orientation process
-Competitive Intelligence services
-Rapid Prototyping capabilities
-Onsite medical device maker space
-Wet labs with sophisticated biotech equipment

16.
COMPETITIVE
INTELLIGENCE LAB
PADT STARTUP LABS BIOTECH EQUIPMENT

17.
ARIZONA RISING
2015 International NBIA Conference, Denver, Colorado
Innovative Focus Areas: Seed Spot (social), City of Phoenix
Resource Innovation Campus (trash incubator)
Co-Working = Transitional Space: DeskHub, MOD have
more “corporate” feel for on-the-go professionals and growing
companies; CO+HOOTS emphasizes collaboration and
creativity
Growth of Maker Spaces: TechShop Chandler, 11th Monk3y,
HeatSync Labs, several more to open in 2015; product
development meets business opportunity
University Hybridization: ASU has Edson, Furnace,
TechShop and public library co-working spaces (Hive)
Entrepreneurial “Glue:” Arizona Commerce Authority,
GPEC, City of Phoenix connect ecosystem and offer funding
and grant opportunities to nurture innovation and
collaboration

18.
2015 International NBIA Conference, Denver, Colorado
Incubation programs are becoming
complementary to one another to
provide support for start-ups at different
stages of business growth…
High School Programs
Collegiate Incubation
Validation / Early-Stage
Commercialization
Hyper-Growth
INCUBATORS-STARTUP FIT
a startup can go through multiple programs

19.
2015 International NBIA Conference, Denver, Colorado
Many incubation programs feature direct
equity investment or seed funding for
portfolio companies, previously an
accelerator feature.
Regardless, investors often use incubators
as part of the validation and due diligence
process; programs must establish strong
relations with local angel & VC groups
INVESTING IN STARTUPS
it is no longer for accelerators, business incubation in the action!

20.
2015 International NBIA Conference, Denver, Colorado
WHY CONSIDER A HYBRID MODEL
FOR YOUR PROGRAM?
Diversified revenue streams
New partnership opportunities
Maintain relevant services for
entrepreneurs
Support start-ups at all stages and
industries to grow interconnected
ecosystems
NEW FORMS OF INCUBATION

21.
2015 International NBIA Conference, Denver, Colorado
Assess market / ecosystem strengths and weakness
• Develop a list of current and anticipated future
resource needs of local entrepreneurs
• Identify strengths and gaps of existing programs to
determine joint partnership opportunities that can
address those needs
Analyze the services and business models of national &
international programs
• PRACTICAL programs that share similar focus areas
and/or mission
• INSPRATIONAL programs that you want to emulate
Explore grant opportunities to grow services and/or
establish new offerings that target specific groups (i.e.
women, technology, legal services programs, etc.)
• Economic Development Administration (EDA)
• Small Business Administration (SBA)
• NACCE / Coleman Foundation
• Local municipalities
THE ALL-IMPORTANT “HOW”

22.
JASPER WELCH
Co-Founder, DurangoSpace
jasper@durangospace.com
www.jasperwelch.org
2015 International NBIA Conference, Denver, Colorado
Contact Us!
JEFF SAVILLE
Executive Director,
Jeff.saville@ceigateway.com
http://ceigateway.com

23.
HYBRID INCUBATION MODELS
What QUESTIONS Do You
Have for Jeff & Jasper?