Intro to American Startup Ecosystem by the Embassy of the United States Seoul at Startup Korea Roundtable 2Q 2015 at D.CAMP.

1. April 28, 2015
David Gossack
Minister Counselor
Commercial Section
U.S. Embassy Korea
D. CAMP
Startup Roundtable

2. Our job is simply to help create the conditions
that foster America’s entrepreneurial spirit.
U.S. Secretary of Commerce Penny Pritzker.

3. Startups are Vital to Economic Growth
New companies are responsible for creating a majority of the new jobs in
the United States and created more than 65 percent of net new jobs over
the past two decades. Startups in high-tech hubs like Austin account for over
40 percent of new jobs each year.

4. US Entrepreneurial Ecosystem
In 2013, an estimated 25 million Americans were starting or running new
businesses, and 7.7 million projected they would employ six or more people in
the next five years
The United States consistently exhibits one of the highest entrepreneurship
rates in the developed world. affecting the U.S. economy in terms of both
current and future employers.
Nearly 13% of the U.S. working age population was in the process of starting
or running a new business—the highest entrepreneurship rate reported
among the 25 developed economies that participated in GEM (Global
Entrepreneurship Monitor) 2013 among North America, Europe, and Asia

5. US Entrepreneurial Ecosystem
Americans have the most positive views yet about the environment for
entrepreneurship around them approximately 47% of Americans
believe there are good opportunities for starting a business
In 2013, 56% of Americans believed they had the capabilities to launch a
business—a remarkably stable indicator despite the recent economic
turbulence, and the highest level among the 25 developed economies
assessed in 2013.

6. US Entrepreneurial Ecosystem
Hundreds of Startup Incubators, Accelerators, and Clusters across the
USA. Often close to major research universities or major corporations
Government support from states and cities, including many states
offering tax benefits to startups and angel investors
Not “One Size Fits” All: The US has a variety of ecosystems with specific
characteristics:
• Silicon Valley
 Biggest throughput, strong early stage funding ecosystem, more
experienced, mentors, most ambitious and high risk
• New York
 Diverse, niche focus, marketplace and social network focus and high
risk

7. Not Supported by Government

8. Entrepreneurial Infrastructure
The Department of Commerce is responsible for helping to
create the essential Infrastructure of Opportunity for
Entrepreneurs:
 Issuing patents that protect intellectual property
 Making investment in local economic development
 Collecting and disseminating data to inform better decision
making
 Expanding access to broadband
 Helping companies reach international customers
 Protecting a free and open Internet

9. US Entrepreneurial Ecosystem

10. Programs by the Department of Commerce
to Support Startups
President’s Ambassadors for Global Entrepreneurship (PAGE)
• Public-private partnership
• Brings together 11 of America’s top entrepreneurs to mentor and
inspire young people and start-ups across the country and around
world
Startup Global
• Provides the know-how and technical assistance to export
Economic Development Administration’s Regional Innovation Grants
• For regions to establish seed-capital funds for promising startups

11. Department of Commerce Supporting
Innovation Ecosystem
National Network for Manufacturing Innovation (NNMI)
• Provides companies with access to cutting-edge technologies
Regional Innovation Strategies Program
• Provided by Economic Development Administration (EDA)
• Provides grants to communities for programs and capital to assist
entrepreneurs in getting innovations from idea to market
• Commerce will be investing US$ 15 million in programs that support
entrepreneurs and inventors

12.  Competition to encourage and reward universities and research centers to
create proof of concept centers that identify innovations to commercialize
and help them to put together the building blocks to create high growth,
successful companies, leveraging private funds
 2010 Winners: Innovation Works/Carnegie Mellon; Georgia Tech GCMI;
New Mexico Tech Ventures, University of Akron/Austen BioInnovation
Institute; The St. Louis Biogenerator and Oregon Translational Research &
Drug Development Institute.
EDA’s i6 Challenge

13. Department of Commerce
Supporting Data
The Department of Commerce is the biggest repository of public data
Commerce produces more data that is used by the private sector–in a range of
industries-than any other government agency
Open Data Initiative: make more data available to the public and to businesses to
utilize in creating data-driven propriety products and services using data from
Census Bureau, National Weather Service, DHHS, run by new Chief Data Officer
 By adopting an end-user approach to data
 By knowing out users and identifying new users
 By actively engaging our new Data Advisory Council
 By engaging coders and non coders through GitHub
 By broadly adopting an open API data dissemination strategy

14. Startup Global
New Initiative February 2015 – designed to help more startup firms think global
from the earliest stages of growth
Successful startups are positioned to sell to overseas markets
• Are at the cutting edge of commercial innovation
• Have unprecedented potential for expansion in global market due to technology
and communications advances
Many startups today “born global”
• E-commerce making it easier to reach international customers and ensure
payment
• Entrepreneurs are using technology and creating a paradigm shift in the export
process
Example: An estimated 97% of eBay sellers are doing business internationally

15. Startup Global
Findings from research in startup hubs throughout the USA:
 The government must build greater awareness of services and information
to help early-stage companies do business globally
 The government needs to refine export assistance and evolve to address
the distinctive and time-sensitive needs of startup companies
 U.S. Department of Commerce now partnering with U.S. business
incubators and the start-up community to provide the know-how and
technical assistance they need to export their goods and services.
Goal: To enable business incubators and accelerators to provide resources to
their members to tap the global customer base – the customer base of the
future

16. US Entrepreneurial Ecosystem
500 Startups www.500.co
Y Combinator www.ycombinator.com
Coinvent Startup Forum http://coinvent.co/events/forum0203
Ultra Light Startups http://ultralightstartups.com/
SAP Startup Forum http://startupfocus.saphana.com/sap-events/
Venture+ Forum http://www.mhealthsummit.org/venture-forum
Kauffman Foundation http://www.kauffman.org/
MIT Enterprise Forum http://mitefdc.org/

17. Why the State Department Supports
Entrepreneurship
The U.S. State Department coordinates engagement with global partners
to support and strengthen entrepreneurship. Entrepreneurship is a
means to relieve poverty, sustain economic prosperity, and promote
greater economic participation by women and youth. Programs are both
bilateral and regional in scope with a strong emphasis on Public Private
Partnerships
U.S. Government Spark initiative
 Best U.S. Government Programs advancing entrepreneurship
 Commitment to generate at least $10 million dollars over three years
for emerging entrepreneurs, with more than half raised by women
and young entrepreneurs.
 The initial commitments toward this goal totaled over $1 billion
dollars that would be generated by the end of 2017.

18. State Department Programs
 Global Entrepreneurship Program
(http://www.state.gov/e/eb/cba/entrepreneurship/gep/index.htm)
 Global Entrepreneurship Summit – July 24-26 in Nairobi, Kenya
 Global Innovation Through Science and Technology (GIST)
(http://www.gistnetwork.org/)
 GIST TechConnects, GIST Startup BootCamps, GIST Tech-I
Competitions
 86 emerging countries, currently does not including Korea.
 International Visitor Leadership Program (IVLP)
 Women’s Entrepreneurial Centers of Resources, Education, Access,
and Training for Economic Empowerment (WECREATE)
 Other regional programs and bilateral programs

19. Additional Links
New Startup Global initiative that provides technical assistance to US
startups on how to export (http://www.commerce.gov/news/press-
releases/2015/04/commerce-department-launches-first-startup-global-
pilot-event-help-young)
PAGE program (www.commerce.gov/PAGE)
EDA investments in Regional Innovation Strategies (i6 and seed fund
investments) (http://www.eda.gov/oie/files/2014-risp-overview.pdf)
Description of NACIE, which advises the Administration on how to best
support innovation and entrepreneurship
(http://www.eda.gov/oie/nacie/

20. Thank You