Monday, 19 May 2014

Student entrepreneurs get assistance

Representatives of global marketing agency R/GA shared insights with entrepreneurial students at Blackstone LaunchPad MSU in March.
Representatives of global marketing agency R/GA shared insights with entrepreneurial students at Blackstone LaunchPad MSU in March. / COURTESY PHOTO
Blackstone LaunchPad landed in Montana last summer with the announcement that Blackstone Charitable Foundation would bankroll business incubators for student entrepreneurs on the campuses of the state’s two biggest universities.

“We’ve got a place on the MSU campus Strand Union Building, actually in the cafeteria,” said Rob Irizarry, director of Blackstone Launchpad Montana State University. He’s happy with the venue. “Everybody has to eat — it’s location, location location.”

Irizarry and Launchpad’s staff of four work with people “all along the arc of their entrepreneurship with questions about their projects. ... We take them wherever they are and help them along at their own pace.” He called it a guiding sort of relationship.

There is some space to work, computers and networked printing, but the LaunchPad is not now a typical incubator where a tiny company takes residence until it has the wherewithal to find and pay for professional space of its own.

The Bozeman location opened in November, but “we started in earnest with the new semester Jan. 9.” He said LaunchPad at MSU has worked with 150 students, so space considerations would make it hard to actually house start ups in the location. “Over the summer there will be less traffic, we should be able to put more emphasis on those start ups.”

LaunchPad also boasts a high-end TelePresence video-conferencing system.

The project was made possible by a three-year grant totaling just under $2 million, through the charitable arm of The Blackstone Group, a New York private-equity and investment-banking firm.

The money is not completely earmarked for the incubators on the two campuses, though.

Over the three years, LaunchPad at the University of Montana and MSU each will receive a total of $622,800, said Pam Haxby-Cote. She is Blackstone LaunchPad’s regional director based in Butte’s Headwaters RC&D. Her regional director’s office gets a total of $437,750 as host agency and administers the Montana grant, distributing the money to the two campus operations, as well as producing marketing materials and raising funds, especially for the time three years out when the LaunchPads must be self-sustaining to keep operating.
Haxby-Cote, Irizarry and Paul Gladen, LaunchPad director at UM are paid $70,000 a year each. The rest of their allotments go to staff, facility build outs and other incubator costs, she said.

Another $316,000 of the total grant goes to LaunchPad at the University of Miami, where the program was developed. The Florida location provides training for LaunchPad directors and ongoing support for LaunchPad locations around the nation.

Besides Montana and Florida, Blackstone LaunchPad has multiple locations in:

• California.

• Michigan.

• Ohio.

• Pennsylvania.

Headwaters and Miami receive progressively lower amounts of the grant each year as they have bigger upfront costs. MSU and UM LaunchPad funding rises from $182,500 in the first year to $231,400 in the final year, she said.

“People like this program,” she said, “LaunchPad helps provide opportunities for our young people so they don’t have to go somewhere else,” to get a company going or find a good job.

Irizarry said entrepreneurs working with LaunchPad MSU include traditional software start ups, a handful of software gaming start ups, and eight young companies with physical products, including some in the hot arena of 3-D printers.

The incubator uses a couple of layers of assistance, he said, starting with staff and also working with “venture coaches,” mostly within the state, acting as a “mentoring network. These mentors will have something to (share) having done work in that world and been successful.”

LaunchPad clients may be working through their financial models, and the incubator connections can introduce them to local sources of funding, he said. “They may need seven figures, then we can reach outside of the state.” He said LaunchPad also works with the angel-fund network and individual investors in Bozeman. Angel funds exist in most states as a pool of funding contributed by private investors. Kalispell-based Frontier Angel Fund aims to help companies in Montana and the Inland Pacific Northwest.

The Blackstone money infusion will be used to “spin up” the LaunchPad, Irizaary said. Some of that will go to salaries, and some will pay for activities such as events where expert speakers will appear or for start up weekend events on the MSU campus. “Our mission is to become self-sustaining.”


From Great Falls Tribune




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