EDC s Mission: To provide economic growth through the creation and expansion of high-impact Iowa businesses. EDC 2016 Stakeholder Report

Transcription

1 EDC s Mission: To provide economic growth through the creation and expansion of high-impact Iowa businesses. EDC 2016 Stakeholder Report

2 EDC Stakeholder Report 2016 Dear EDC Stakeholder, The year 2016 marked EDC s thirteenth anniversary. As you can see from the performance statistics and testimonials provided, EDC continues to succeed in its mission to increase economic vitality for our communities through the creation and growth of high-impact, Iowa-founded businesses. In 2016, EDC engaged with 110 companies, with focuses including medical devices, pharmaceuticals, IT products and services, security products and services, consumer products including bug repellents, pasta sauces, allergenfree baking mixes, beauty products, infant accessories, distilled spirits, fireplaces and barbeques, ag-tech and edtech products, and many more. From basic mentoring to hands-on staff augmentation, the team at EDC recorded another year of heavy client engagement. In May, EDC hosted our very first Stakeholder Luncheon, featuring presentations by nine of the entrepreneurs EDC has served over many years and attended by 310 stakeholders and friends. The entrepreneurs featured ranged from start-ups that have now passed as much as $50M in annual revenue to long-established companies that used EDC services to retool their strategic plan and grow area jobs. Each entrepreneur spoke about their business, the support they had received from EDC over the years, and provided a thank you to all the stakeholders in attendance for their willingness to provide the funding needed to make EDC a reality year after year. The 2017 Stakeholder Luncheon is scheduled for Thursday, April 13th, please plan to attend ( In completing thirteen full years of entrepreneurial support and touching nearly 900 Iowa companies, the growing demand for our services continues to validate the EDC model. The economic development statistics outlined herein also validate the real impact successful entrepreneurs have on our communities. The EDC team is very proud of the organization we have created and the results we have witnessed in the businesses and entrepreneurs supported and we thank each and every one of you for the support needed to make this program available. Sincerely, Curtis R. Nelson President & CEO I trust EDC they genuinely care about their clients. They know what they are talking about. They help me stay on track and make decisions that are in the best interest of the business. They are rock stars. Lisa Galassi, Galassi Foods, Coralville EDC thanks our stakeholders for their generous support of Iowa s entrepreneurs. LEADER LEVEL

3 2016 EDC BOARD Jasmine Almoayed, City of Cedar Rapids Patrick Deignan, Bankers Trust Cindy Dietz, Rockwell Collins Jon Dusek, Armstrong Development Travis Fell, RSM US LLP Kris Gulick, Entrepreneurial Services Group LLC Jim Haddad, Haddad Consulting Services Larry Helling, Cedar Rapids Bank & Trust David Hensley, John Pappajohn Entrepreneurial Center Kathleen Kleiman, Simmons Perrine Moyer Bergman PLC Doug Kopp, Alliant Energy Bruce Lehrman, Involta William McCartan, Bradley & Riley PC Mary Meisterling, Alliant Energy Mary Quass, NRG Media LLC Thad Roffey, University of Iowa Community Credit Union Charles Rohde, King s Material Dick Schwab, Iowa Woodworks Terry Sullivan, Linn County REC 2016 Impact EDC engaged with 110 area businesses this past year (the second largest number since EDC s inception); helping with expansion/creation funding, strategic direction, marketing planning and execution and overall business growth. Active Clients EDC currently supports forty-one (41) clients at the following stages: Fourteen (14) of the clients are wellestablished area businesses seeking growth or restructuring assistance. Seventeen (17) of the clients are early-stage businesses seeking growth and capital assistance. Ten (10) of the clients are start-ups or pre-revenue businesses seeking assistance with market research/ validation, business planning and capital raising. Well-Established Area Businesses Early-Stage Businesses Start-ups or Pre-Revenue Businesses Client Recognition Several EDC client companies were recognized in 2016 for their impact and growth: Two (2) clients made Inc. Magazine s /5000 list of fastest growing private companies: Ready Wireless (#3418) Clickstop (#3505) EDC client Involta won IT Service Provider of the Year and Involta s CEO, Bruce Lehrman, was awarded CEO of the Year at Technology Association of Iowa s 11th Annual Prometheus Awards in April Five (5) EDC clients were recognized at the Corridor Business Journal s Fastest Growing Companies breakfast in May of 2016: #1 Moxie Solar (536% growth) #5 Spotix (169% growth) #13 Ready Wireless (71.65% growth) #14 Clickstop (70.93% growth) #18 Involta (51.12% growth) CHAMPION LEVEL

4 Client Funding EDC continues to assist clients in securing critical funding needed for the growth of their businesses. In 2016, a total of nearly $50M was secured in equity, debt and federal/state/regional programs. Government...$2,964,033 IEDA Proof of Commercial Relevance... $150,000 IEDA Launch, Propel... $100,000 IEDA Demo Fund... $100, E/F... $200,617 ECICOG Revolving Loan Fund...$1,290,000 SBIR... $550,000 Business Plan Competitions... $160,000 Trade Show Assistance...$13,416 State of Minnesota Economic Development Funding... $400,000 Debt...$27,182,000 Equity...$19,432,500 Total...$49,578, Client Impact The table below provides information on the economic impact of EDC s clients for 2016, as well as the results since the program s launch in Impact Annual (2016) Program to Date ( ) Number of businesses supported New revenue generated $232M $1.3B Capital raised $50M $346M Net direct jobs added 232 Approx 2,000 Average wage $49,072 $49,500 New payroll created $58M $416M Total impact $340M $2.09B In 2016, EDC worked with companies in these cities: Ames Boone Cedar Falls Cedar Rapids Center Point Columbus Junction Coralville Davenport Decorah Des Moines Dysart Fairfax Fairfield Grinnell Hiawatha Independence Iowa City Lisbon Lowden Marion New Hampton New Sharon North Liberty Norwalk Swisher Tiffin Tipton Van Horne Washington West Branch West Des Moines West Liberty PARTNER LEVEL

5 EDC helped us with understanding investors, types of capital, the overall fundraising process, and the importance of developing quality plans and presentations accordingly. To that end, EDC helped us turn tech-heavy/science-heavy docs into summaries that are clear and understandable to the capital community. We most value the one-on-one commercialization assistance we continue to receive from EDC as we work to bring our life-changing science to market. Michael Schultz, Viewpoint Molecular Targeting, Coralville EDC helped with our strategic thinking process and provided a valuable perspective on growing our business in a coordinated way. I received valuable insights on key areas to invest resources by looking into the future and working backwards. I have talked with literally over 100 mentors in the past year and found that Curt, on behalf of the EDC, provided some of the best insights and discussions on our strategic thinking. Beyond that, there were useful tips and tricks. A perfect example was a suggestion that changed the way we evaluate and invest in each of our products. That suggestion also improved our ability to present information vital to making progress on our investment needs. What I value most about working with EDC is being able to get perspective on the big picture of our business from someone who can see the whole forest rather than getting caught in the trees. Alec Whitters, Higher Learning Technologies, Coralville Michael Schultz Alec Whitters In 2016, we received overall business strategy and financial/ accounting assistance from the team at EDC. The EDC is very handson and very easy to work with. We always feel like we have access to the help we need when we need it. We have been helped greatly by everyone at EDC. Beth Scott, AD RescueWear, Davenport Beth Scott COLLABORATOR LEVEL

6 SM th Avenue S.W. Cedar Rapids, IA Phone: (319) (800) Fax: (319) Three Locations: Cedar Rapids Des Moines Kansas City EDC has helped me everywhere! Primarily on marketing/branding, but also on strategy, finance and operations. The collaborative nature and the business model under which they work allows for a true partnership in which the advice is truly with my business best interest in mind. Tom Lutz, Repour, Cedar Rapids It s hard to put into words how valuable you guys are to us! At Spectator, we have a management team who are all first-time founders. Because of this, mentoring is such an important piece of building our company. The EDC s mentoring has allowed us to develop strategic plans, receive state funding, grow as founders, and reach our sales goals. All of this for a reduced rate which is vitally important to our early-stage company. I think it is also worth mentioning that the Seed and Venture Forum was a wonderful event for us, and wished there were more events for seed stage companies in the state of Iowa. Jon Myers, Spectator Sports, Iowa City Join EDC for our Annual Stakeholder Luncheon on Thursday, April 13th at Kirkwood Center. Hear first-hand from several highimpact Corridor entrepreneurs regarding their experiences with launching and scaling their businesses in Iowa nd St. SE, Suite 212 Cedar Rapids, IA SAVE THE DATE CORALVILLE MARRIOTT SEPTEMBER 26, S. Dubuque Street Iowa City, IA Proud to be part of: MEMBER LEVEL Feiereisen, Inc. Iowa City Mary Quass Dick Schwab Scott Olson Bob Hackney Doug Laird