Heart of the BlueTechValley
2011 - 2015 Strategic Plan
This strategic plan has been developed to: Maximize positive economic impact in the Central Valley via business launch and job creation Develop the region’s position as a hub of innovation Support the region’s core industry sectors as defined by the Regional Jobs Initiative Enhance and leverage partnerships between private and academic sectors to enhance tech transfer and workforce preparedness Effectively manage multiple programs and assets now governed by the Central Valley Business Incubator organization Expand the capacity of the Central Valley Business Incubator organization, operationally, financially and geographically
CVBI Vision CVBI will be the driving force in the Valley for advancing economic development through entrepreneurship
CVBI Mission • • • •
Nurture and grow entrepreneurs, innovators and businesses Create a network of incubation & business development partners Provide access to comprehensive services Create sustainable high growth ventures
CVBI Value Positioning the Valley as a globally-recognized leader of Innovation, Technology Development and Commercialization Launching and growing the businesses that develop and support the workforce that strengthens our economy: One Entrepreneur, One Business and One Technology at a time 2
A Message from the Chief Executive OfďŹ cer September 15, 2011
Dear Board Members, Community Leaders, Entrepreneurs and Innovators; What an exciting time we are in. Today there is a focus on entrepreneurship and innovation as tools of economic recovery unlike any other time in recent history. Over the past 15 years, the Central Valley Business Incubator has been honing its programs and demonstrating the effectiveness of these efforts. Under the direction of the Board of Directors and many community leaders and advocates, CVBI has continued to grow in depth and reach, operating at the leading edge of business development and job creation with proven results. Since its inception, CVBI has evolved from a single purpose service provider into an integrated organization that manages multiple brands and programs, each with a unique focus, yet all contributing to a single goal: economic growth. The Strategic Plan contained in this document has been developed over the past year and is based on the findings of an integrated group of community and industry leaders, professional economic developers, innovators, academics, entrepreneurs and staff. Many factors were considered when developing this plan, including: The unique strengths and assets of the valley including natural resources, critical mass of industry and marketplace, areas of sustainability. Current and predicted challenges within the private, academic and public sectors, including educational trends, workforce development, stated interest and need. CVBI strengths and areas of expertise including the WET Center, the SBDC programs, extensive private-sector acumen of staff and sustainability and availability of funding and client sources. CVBI is managing many initiatives and projects. Based on Water and Energy Technology, solid business development and the Valley’s many regional assets, this Strategic Plan charts the course for how the region can sow the seeds and harvest the fruits of a burgeoning economic garden over the next five years. Sincerely, Kirk T. Nagamine President/CEO Central Valley Business Incubator
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The Central Valley has a strong value proposition for the water industry as innovative technology becomes more important. I am eager to hear more about how you are developing the water-related activities.
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Laura Shenkar The Artemis Project
Table of Contents INTRODUCTION TIMELINE & MILESTONES OPERATIONAL STRUCTURE PROGRAMS PRIMARY INITIATIVES & STRATEGIC DIRECTION PROGRAM GOALS & TARGETS EXHIBITS METRICS OF SUCCESS BUSINESS MODEL WET CENTER TERMS & DEFINITIONS BTV & CVBI MISSION/VISION
6 7 9 13 16 20 24 25 29 30 31
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CVBI - Tending the Economic Garden CVBI provides entrepreneurs with the support they need to grow fruitful businesses that will feed the economic health and wealth of the region. Originally focused on the “incubation” of small businesses, CVBI has expanded its depth and breadth of services to meet the needs of today’s entrepreneurs who increasingly require access to a network of rapidly evolving resources and business tools. CVBI is a Small Business Development Center that services a four-county area – Tulare, Kings, Fresno and Madera – to partner with businesses in the successful cultivation of our region’s economic garden. The State of California has designated CVBI as an “iHub” (Innovation Hub). iHubs are distinguished collaborative partnerships designed to rapidly promote regional innovation and commercialization. Of the 12 iHubs in California, CVBI has the distinction of being the only one focused on Agricultural Tech, which brings great opportunity to the region. The future of CVBI’s growth, as outlined in this Strategic Plan, is rooted in the success of its past and the experience, leadership and assets of its present, including: • More than 14 years of experience in launching startup companies and expanding existing companies • A leadership team that has more than 60 years of private sector experience ranging from large corporate leadership to small business ownership • A wealth of institutional knowledge, proprietary programs and systems • More than 20,000 square feet of facilities including: full service small office spaces, class and meeting rooms; and a water and energy research, testing and certification lab • Access to a deep bench of subject matter experts and consultants focused on helping counsel and solve problems for small business owners
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CVBI - More Today than Yesterday’s Incubator
Facilitate the BlueTechValley Committee and Conference to leverage the region’s stakeholders in water, energy and technology clusters. The goal is to drive WET innovation and commercialization that will launch WET businesses, create and support a knowledge-based workforce and expand the economy.
2011
CVBI shifts its strategic focus to innovation and technology alongside entrepreneurship to maximize impact through high potential enterprise. August 17 – CVBI receives Small Business Development Center (SBDC) designation, CVBI-SBDC, to expand its physical presence throughout the Central Valley.
2010
September 20 – CVBI receives iHub designation, CalValleyTechiHub, to connect CVBI, SBDC, Fresno State, UC Merced and the private sector.
2007 CVBI developed its organizational structure with a full staff and begins operating as its own fiscal agent (Fresno State acted as its fiscal agent until this time).
2003
2006
Established virtual membership through CVBI Online to increase access to facility resources and support.
2000 CVBI was awarded federal tax exemption status as a 501(c)3.
2001
1999
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March 30 – Opened the WET, collaboration between CVBI, ICWT and Fresno State.
Construction of the WET Center Commences; will be the first “green” building on campus and the first “incubator” to actively partner with a commercial testing facility.
CVBI merged with the Entrepreneurial Resource Center: expands CVBI capacity to offer business education and training.
Secured funding, venue and partnerships with Fresno County Workforce Investment Board and the University Business Center; recruited the first incubator clients. Ashley Swearengin hired as first Executive Director.
Central Valley Business Incubator is incorporated in California, initiated by Dr John Welty and the Fresno Business Council as a means to combat unemployment, poverty and escalating crime by strengthening the local economy through job and business development.
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When it comes to water management as an engine of its economic development, the Central Valley really has the perfect storm going for it. It surely has the need: it knows well that water scarcity is a mortal threat to its agriculture base. It has the skills, in its agriculture and irrigation industry. It has the scientific expertise, in its universities -Bakersfield, Chico, Davis, Merced and Fresno. It has the entrepreneurial base, with 160 water-related businesses in the region. It is within a drive of the venture capital and innovation expertise of Silicon Valley. And, above all, it evidently has the drive and desire to 'make it so.’ Peter Williams, CTO IBM Big Green Technologies
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CVBI - Operational Structure
The CVBI operational structure provides the backbone to all programs and initiatives, creating efficiencies and eliminating redundancies among programs. CVBI is, in essence, the corporate headquarters of the various CVBI programs and initiatives, providing infrastructure to the projects so that each delivers maximum benefit to the end user.
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Sustainability and Growth Potential of Blue Technology in the Central Valley
Research presented by John Melville of Collaborative Economics demonstrates the growth of water-based businesses. The above chart shows that Water and Wastewater cluster businesses represent the largest number of jobs, and the Water and Energy fields combined represent both the largest and fastest growing segments in the valley.
** Graphic representation taken from the June 9, 2011 presentation to the Clean Energy Forum by John Melville, Collaborative Economics, Advisors to Civic Entrepreneurs.
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Managing the Programs and Brands
Corporate Brand
Umbrella Brands Localized Brands Program Brands
Claude Laval
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CVBI - Serving the Central San Joaquin Valley
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Business & Innovation Acceleration
Programs
Incubation Available by application only. Admission criteria includes: • Tested technology • Feasible business idea • Relevant and executable business plan Services include: • Access to tech-specific training and consultation • Business consultation • Need-specific advisors • Access to testing and demonstration • Loan packaging • Investment grooming • Private-sector connections
Claude Laval
Physical Incubation
Innovation-centric office space at two physical locations ; shared office services; open-door access to advisors; exposure and promotion.
Virtual
Access to services and facilities including mail, conference room; printing and hot-desking; promotion and exposure as appropriate; free consultation and referrals to subject matter experts.
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Programs CVBI-Small Business Development Center Business Development and Starts Consultation and Training • Free to anyone who wants to start or grow a business • Robust referral network to consultant-based counseling on topics such as: business planning, marketing strategy, taxes, business forms and more • Workshops and training programs
CALIFORNIA
SBDC
UC Merced Regional Network
Loan packaging and assistance • Technical assistance for traditional loan applications and qualified low-rate micro-loans
CVBI Online Virtual Incubator Program Online training, turn-key incubation solution • Business assessment and feasibility tools • 24/7 access to business plan development tools • Webinars, online classes and extensive library of resources
CalValleyTech iHub Collaborating for Water, Energy and Ag Technology Innovation Statewide network of technology and innovation experts • Connection to resources and expertise of 11 other California iHubs • Supported by the Governor’s Office of Economic Development (GOEd) Innovation and technology focus • Hyper focus on developing technology and commercialization • Leverages regional assets Partnerships • Connects local and state stakeholders in a meaningful and action-oriented manner • Creates significant funding opportunities for ventures
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Programs Water, Energy & Technology Center Industry Focused • Leverages natural resources and assets • Develops and strengthens established industry • Promotes innovation and commercialization of technology • Stimulates new business launch, creates jobs and supports a developing work force Connections • • • •
Partners with multiple learning institutions (College/University) Connects industry and academic sectors Helps identify private sector needs relative to workforce demands Supports the development and commercialization of intellectual property
Funding •
Leverages local, state, national and corporate funding opportunities
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2011
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Primary Initiatives & Strategic Direction
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2011
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Primary Objectives: Growth & Alignment
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Claude Laval
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CVBI Primary Initiatives & Strategic Direction
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To create a sustainable funding source for CVBI operations Strategic Direction: • Identify and partner with funders who share CVBI’s mission and vision • Continue to seek grant opportunities for initiatives and programs that fall within CVBI’s core competencies and expanding vision • Establish sustainable funding sources • Develop a cash reserve of $500,000 as a funding-gap bridge to support continuous organizational operation
To further develop CVBI’s core competency: Incubation of business and technology Strategic Direction: • Expand and enhance the programs and services of business incubation to include the entire business lifecycle, from idea to execution, including: o Tech commercialization o Innovation via “Proof of Concept Centers” • Continue to develop the WET Incubation Program as a nationally-recognized program within the Water, Energy and Ag Technology spheres • Continue recruiting WET-oriented, high-growth potential startup businesses to mature their enterprises via the WET incubator program
To fully leverage the programs and services of the SBDC by becoming an accredited SBTDCCenter, achieving the “T” designation (“Technology”) for the UC Merced SBDC Regional Network (will allow for a greater technology focus and potential funding) Strategic Direction: • Research and develop a tactical timeline for achievement of SBTDC requirements • Attend and host Small Business Innovation Research (SBIR) Program and the Small Business Technology Transfer (STTR) workshops • Engage established SBTDC Regions in California via visits and hosted events
To position the WET Center as the “front door” to the region’s water and energy technology industry and the physical nucleus of the Central Valley’s globally recognized leadership in water innovation Strategic Direction: • Maximize WET Center partnerships • Develop and recruit high-potential, tech-based entrepreneurial and small business enterprises to launch and grow in the Central Valley • Operate the WET Center at maximum capacity • Develop and execute a national WET competition and/or conference
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CVBI Primary Initiatives & Strategic Direction
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To establish CVBI Online (a virtual incubator program) as an independent business unit andprofit center for CVBI •
Provide valuable business development resources for state and national SBDC’s and other agencies
To develop and enhance access to statewide assets by strengthening, enhancing and positioning the CalValleyTech (CVT) iHub as a recognized nexus of partnerships and resources for techtransfer and commercialization, leading to new business and job creation Strategic Direction: • Create and launch a CVTiHub website • Strengthen the role of CVTiHub within the statewide iHub network • Identify and meet CVTiHub outreach • Seek funding sources for CVTiHub
Launch new CVBI Centers of Focus (e.g. the WET Center) throughout the Central Valley, related to regional needs Strategic Direction: • Create a replicable process, from planning to budgeting to operational structure (based on the WET Center model) to establish Centers of Focus in other regions of the Central Valley • Complete a feasibility study for the establishment of additional Center(s) • Identify and secure committed stakeholders and partners to determine needs and initiate planning efforts • Establish Memoranda of Understanding with stakeholders • Identify and secure stable funding streams to launch new Center(s)
To facilitate the establishment of the BlueTechValley initiative – a regionally, nationally and internationally recognized leader of water, energy and ag tech innovation – to support water, energy and ag tech innovation in the private and academic sectors Strategic Direction: • Identify, promote and leverage the value of BlueTechValley to entrepreneurs both internaland external to CVBI • Support the development of a BlueTechValley collaborative asset referral process • Support the development of a BlueTechValley collaborative marketing campaign
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Goals & Targets
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WET Center/Incubator Goals & Targets
Formalize Center Development Structure & Process Develop replicable process for the establishment of industry-specific centers, including: • Adaptable mission and vision • Mandatory partnerships • Memorandum of Understanding template • Start-up costs/required funding • Operational budget • Required center staff • Shared services and operations Finalize WET Center Membership Criteria & Innovation/Business Launch Process • Standardize parameters for WET membership application • Develop multiple sources of high potential WET members • Formalize MOUs for access to resources and facilities • Develop a WET-specific funding initiative
Claude Laval
Achieve Full Capacity for WET Center Identify entrepreneurs and developing businesses to house in WET Incubator • Competition and Boot Camp feasibility • Graduate Program landing • Corporate referrals • Trade Show and partner representations
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CVBI-SBDC Goals & Targets
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Become an accredited SBTDC Center and achieve a “T” designation for UC Merced SBDC Regional Network • Draft a comprehensive plan (with timelines) to complete the requirements of the SBTDC designation • Identify funding sources for tactics • Attend Small Business Innovation Research (SBIR) Program and the Small Business Technology Transfer (STTR) workshop/host minimum of one SBIR/STTR workshop
CVBI Online Goals & Targets
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Expand the reach and capacity of the CVBI Online program and services to include the UC Merced Regional Network footprint • Work with SBDC to further develop channel partners • Work with Small Communities Network to identify areas of need • Work to establish Virtual Incubator Program (VIP) packages that support satellite centers
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CalValleyTech iHub Goals & Targets
Strengthen, enhance and position the CalValleyTech (CVT) iHub as a recognized point of partnership and resources for tech transfer and commercialization, leading to new business and job creation • Develop CVTiHub brand and launch website • Market the collaborative benefits of the iHub to a statewide audience • Establish corporate partnerships and funding opportunities • Develop iHub-specific funding (SBDC Grant) • Seek additional grant opportunities • Leverage statewide network; host networking event(s) • Establish formal relationship with Lyles Center’s Tech Transfer Program • Host a state-wide iHub Directors’ meeting • Attend professional development days at two iHubs via site visits
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BlueTechValley Goals & Targets
visionary Establish the Blue Tech Valley – a regionally, nationally and internationally recognized leader of water, energy and ag tech innovation – to support robust and vibrant water, energy and ag tech innovation in the private and academic sectors • Create the BlueTechValley Committee among business, university/college faculty, investors and other community stakeholders • Formalize the BlueTechValley product(s) • Identify the BlueTechValley value proposition • Establish the BlueTechValley website and marketing plan • Launch the BlueTechValley water conferences
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Exhibits
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Metrics of Success CVBI - Worksheet
Metrics of Success CVBI/SBDC - Worksheet
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Metrics of Success CVBI Online - Worksheet
Metrics of Success WET Center - Worksheet
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Claude Laval
Metrics of Success WET Incubator Program - Worksheet
Metrics of Success CalValleyTech - Worksheet
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Metrics of Success BlueTechValley - Worksheet
Notes
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The Business Model Leveraging Strategic Partnerships & Assets
The above diagram represents the dynamic connections and depth of assets and resources available to support business launch and technology development and commercialization. The model can be replicated as new Centers of Focus are developed and launched. Operating at the “front door� for the Water, Energy and Technology sectors, the WET Center provides an easily accessible conduit for entrepreneurs and businesses to access a rich network of resources. This model can also be applied to the BlueTechValley plan by empowering any partner to operate as the "center" of the system and orchestrate resource collaboration for the attainment of water, energy and ag tech innovation. 29
WET Center Terms & DeďŹ nitions Client:
An entrepreneur who receives consulting services from the SBDC program. There is no charge to received SBDC services.
WET Center Member:
Memberships are available to public, private and academic sectors with an interest in the development of WET Industries. WET Center members have access to programs and services designed to support the development of the WET industry including counseling, soft landings, office support and access to developing technologies. Levels of membership accommodate both startup and well established businesses.
WET Incubator Participant:
Participants in the WET Incubator program are startup companies that are actively growing and preparing to launch in the commercial market.
Resource Team (Resource Partners):
These are service providers and key partners in the community to whom clients and members are referred for additional service and support. The relationships are developed by CVBI-SBDC staff and directors.
Network Management:
The process of submitting work-orders/referrals to the Resource Partner for services to be provided. These essentially outline the client/member’s specific need. These are tracked by CVBI-SBDC staff and usedto gauge member development.
Resource One Sheets:
A one-page overview about each Resource Partner. These are distributed to clients/members as they are looking for providers. Collateral/materials from each organization may also be provided.
Mentorship Connections:
Assisting clients/members with the development of advisor/mentor relationships. CVBI-SBDC continuesto source business and community leaders interested in mentoring emerging and expanding enterprises.
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Mission Statement BlueTechValley BTV Vision The BlueTechValley will be globally recognized for water and energy innovation and technology commercialization.
BTV Mission The BlueTechValley will strategically leverage the region's unique environment, resources and physical assets for inventors, entrepreneurs, start-ups, established companies and investors creating a rich context for testing, developing and commercializing of innovative water and energy technology.
BTV Value Proposition The BlueTechValley offers state-of-the-art water and energy test facilities, business launch support and a comprehensive network of industry leaders, economic development professionals and university faculty - all aligned to turn entrepreneurial ideas and visions into solutions that spur innovation and growth in managing our finite resources, water and energy. Unlike most other regions, the BlueTechValley in California offers a working laboratory where concepts, products and business ideas can be put through rigorous, cutting-edge evaluation and receive honest customer feedback by a broad group of key industry leaders. The BlueTechValley is the world’s Water Hub, where great ideas and concepts unite to launch sustainable businesses focused on global growth opportunities, start-ups and established companies, creating a rich context for testing, developing and commercializing of innovative water and energy technology.
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Mission Statement Central Valley Business Incubator (CVBI-SBDC) CVBI Vision CVBI will be the driving force in the Valley for advancing economic development through entrepreneurship.
CVBI Mission • • • •
Nurture and grow entrepreneurs, innovators and businesses Create a network of incubation and business development partners Provide access to comprehensive services Create sustainable high-growth ventures
CVBI Value CVBI play a critical role in positioning the Valley as a globally-recognized leader of innovation, technology development and commercialization. Launching and growing the businesses that develop and support the workforce that strengthens our economy: One Entrepreneur, One Business, and One Technology at a time
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