TECH STARTUPS SMALL BUSINESSES

JumpStart and its various partners work with a combination of tech-based startups and small businesses. To help meet the specific requirements and expectations of various organizational funders, these models divide this work into separate categories.

Total Impact of Tech Startups

The following table summarizes the estimated economic impact of all tech-focused companies assisted by JumpStart and its Partners through the Entrepreneurial Service Provider (ESP) program in Ohio. Technology companies receiving technical assistance from JumpStart and its Partners in 2020 directly and indirectly supported an estimated $882 million of economic output, approximately $490 million of labor income, and close to 4,454 households in Ohio.

Tech ESP Total Work

` $882 million

of economic output

7,186

jobs $490 million

of labor income

4,454

households supported $99 million

of federal taxes

$49 million

of state and local taxes

Total Impact of Small Businesses

The following table summarizes the estimated economic impact of all traditional small businesses assisted by JumpStart and its Partners in Ohio and New York. Small businesses receiving technical assistance from JumpStart and its Partners in 2020 directly and indirectly supported an estimated $240 million of economic output, close to $139 million of labor income, and an estimated 1,863 households in the States of Ohio and New York in 2020.

Small Business Total Work

` $240 million

of economic output

3,005

jobs $139 million

of labor income

1,863

households supported $28 million

of federal taxes

$16 million

of state and local taxes

About JumpStart

JumpStart Services and Funding

JumpStart is a venture development organization combining the principles of venture capital and economic development to help entrepreneurs start and grow companies. JumpStart helps entrepreneurs by providing access to capital and business assistance and by serving as a valueadded partner for other entrepreneurial focused organizations. The Cleveland Foundation, KeyBank, the Burton D. Morgan Foundation, ProMedica and the Ohio Third Frontier provide key support for JumpStart’s operations.

JumpStart provides business assistance to entrepreneurs and small businesses, access to capital for startups through equity investments, partner services including grantmaking and collaborations for third party funders, and strategic initiatives for community stakeholders.

JumpStart and its Partners

JumpStart acts as an investor and a direct service provider to high-potential companies. Through its strategic partnerships with funders, JumpStart also helps support many additional collaborative partners across Ohio and New York in their work helping companies.

Technology companies are served directly by JumpStart and/or one of the collaborative partners who make up the Northeast Ohio Startup Network2 and the Northwest Ohio Startup Network.3 This closely connected network of support organizations is funded in part by Ohio Third Frontier and organized under the Entrepreneurial Services Provider (ESP) Program to support the 21 counties in the Northeast Ohio region as well as the 18 counties of Northwest Ohio.

Small businesses seeking assistance are served directly by JumpStart’s Core City: Cleveland program and its Northwest Ohio Small Business Support Services. They are also served through other collaborative partners JumpStart supports through the Cleveland Business Growth Collaborative, Toledo Business Growth Collaborative and the KeyBank Business Boost & Build program. The KeyBank Business Boost & Build program works in four regions across New York (Albany, Buffalo, Rochester, and Syracuse) and also includes The KeyBank Center for

2Northeast Ohio ESP Network Partners include Bounce Innovation Hub, Braintree Business Development Center, BRITE Energy Innovators, Great Lakes Innovation and Development Enterprise (GLIDE), The Manufacturing Advocacy & Growth Network (MAGNET), Northeast Ohio Medical University (NEOMED), Ohio Aerospace Institute (OAI), University of Akron Research Foundation (UARF), and Youngstown Business Incubator (YBI).

3Northwest Ohio ESP Network Partners include the University of Toledo (UT), ProMedica, and Mercy Health.

Technology, Innovation and Inclusive Growth, which works across Ohio (the center's work in Akron, Toledo, Dayton, Columbus and Cincinnati are included in this report).

JumpStart Evolution

JumpStart was founded in 2004 with a mission to accelerate the growth of startups through venture investing and technical assistance. Today, JumpStart is focused on the economic transformation of communities. This evolution in mission intersects with numerous aspects of the organization’s work, including:

Work with Traditional Small Businesses – JumpStart has expanded from focusing solely on helping tech startups to helping businesses in non-tech sectors. Section four of this report is dedicated to quantifying the impact of this work with small businesses outside the tech space.

Partner Work – JumpStart works as both individually and as an ecosystem partner, serving as a value-adding partner for third-party funders to deploy grants, manage collaborations, and help administer economic development and workforce initiatives.

JumpStart deployed approximately $8.1 million in grant funding to 67 organizations on behalf of its partners and funders in 2020 alone. Today, the organization manages the

Northeast Ohio and Northwest Ohio Startup Networks (tech-focused) on behalf of the

State of Ohio and also supports many additional collaborative partners working with small businesses through the KeyBank Business Boost & Build program.

Place-Based Assistance – JumpStart has always worked across Northeast Ohio and invests across the state from specific venture capital funds. The organization opened an office in Toledo in 2020 to serve entrepreneurs in Northwest Ohio. JumpStart has also concentrated specific programs on targeted local communities including the City of

Cleveland, communities in upstate New York, and disconnected neighborhoods in communities across Ohio including Dayton, Cincinnati and Akron.

Diversity and Inclusion – JumpStart has an intentional focus on diversity and inclusion in all of its work, from the composition of its own staff and board to the companies it funds and supports. In 2020, JumpStart engaged 1,385 companies, 56% of which were led by women and 49% of which were led by Black or Latinx entrepreneurs. JumpStart and its

Partners collectively engaged 2,073 companies, 49% of which were led by women and 39% of which were led by Black or Latinx entrepreneurs.

JumpStart AND THE COVID-19 PANDEMIC

2020 was certainly a year unlike any other and the total impact of COVID-19 on startups and small businesses is still unknown. In the early months of the pandemic, JumpStart quickly pivoted operations to prioritize stabilization support for startups and small businesses in the wake of the pandemic. JumpStart and its Partners quickly mobilized to deliver immediate relief funding and technical assistance to entrepreneurs throughout its footprint, including:

Deploying over $2.5M in relief funding to startups and small businesses in the form of equity investments, loans and grants.

Providing one-on-one business assistance to over 576 startups and 651 small businesses and delivering free webinar events to help guide startups and small businesses through challenges from keeping customers engaged to understanding

Paycheck Protection Program (PPP) loans.

Connecting small businesses to state and federal unemployment resources.

Connecting small businesses to local business resources including Cuyahoga County’s

Small Business Resource Center and Greater Cleveland Partnership.

While the long-term impact of COVID19 is still uncertain for many startups and small businesses, the majority of companies engaging with JumpStart and its Partners remain optimistic about the survival of their business. Many of these businesses moved quickly to pivot operations during critical points of the pandemic, allowing for stabilization, a longer financial runway and in some cases growth. JumpStart helped hundreds of startups and small businesses navigate the economic challenges of the pandemic.

Individual Company Growth in the Pandemic

Small businesses across the U.S. suffered tremendous economic loses in 2020 from the economic challenges of the COVID-19 pandemic. Companies which were assisted by JumpStart and its Partners were, however, largely able to stabilize and in some cases grow in 2020. The following insights are from an analysis of survey data from companies which responded to JumpStart surveys and submitted modelable data in both 2019 and 2020.

Tech ESP Total Work – Ohio – Companies supported by JumpStart and its Partners’ Tech

ESP services and funding in Ohio only experienced a 5% decrease in jobs from 2019 to 2020. Excluding contractors, these 189 companies experienced a 9% increase in jobs.

Payroll for the Tech ESP companies grew 9% and sales grew 4%.

Tech ESP Total Work – Northeast Ohio - Companies supported by JumpStart and its Partners’ Tech ESP services and funding in Northeast Ohio experienced a 2% increase in jobs from 2019 to 2020. Excluding contractors, these 158 companies experienced an 11% increase in jobs. Payroll for the Tech ESP companies grew 12% and sales grew 9%.