SSTI Digest

The Angel Resource Institute has released its latest analysis of 2018 angel investing. Characterizing the full year of investments captured in the annual survey – more than 2,500 individual transactions – the report profiles activity by several different factors useful in understanding regional differences in the early stage financing community. It should be noted, however, that adjustments in the deal size ceiling for inclusion in the analysis for 2018, to reflect the degree to which angels are participating in next-stage rounds (Series A), make comparisons to previous years less meaningful.  

A new scorecard from the nonprofit American Council for an Energy-Efficient Economy (ACEEE) reveals that while U.S. cities are ramping up their clean energy efforts, most cities with climate goals are either not on track to achieve them or are not yet tracking progress. The 2019 City Clean Energy Scorecard ranks 75 cities on more than 50 metrics and this year for the first time, includes policy efforts to advance renewable energy in addition to energy efficiency.

The number of women-owned business has increased significantly in recent years, but more needs to be done to level the playing field to increase the revenue and employee counts of these businesses, according to two recent studies. More venture capital is needed, as well as mentoring, training and opportunities for women of color.

More borrowers are utilizing the rapidly growing fintech lending industry to garner record numbers of unsecured personal loans.  American have “sharply increased their use of unsecured personal loans because of the growing presence of fintech lenders,” according to a new report from the Federal Reserve Bank of St. Louis.

The U.S. Economic Development Administration (EDA) announced Regional Innovation Strategies awards — i6 Challenge and Seed Fund Support — to 44 organizations. Those awards are worth $23.5 million in federal funding matched by $26 million from a variety of private and public sector sources for nearly $50 million for projects to support entrepreneurship and innovation in 28 states and two territories.

Ten states from across the country have been selected as part of a unique program designed to grow and strengthen their manufacturers. Over the course of the next year, interdisciplinary state teams will meet together in Washington, D.C., and separately in their home states, to develop and refine strategies impacting manufacturing industries.

With the Census Bureau’s July 17 release of the 2019 2nd Quarter update, the bureau’s Business Formation Statistics (BFS) changed format. Originally developed as an experimental research project in the bureau’s Center for Economic Studies in February 2018, the BFS has been redesigned as a formal release, complete with interactive data selection and visualization tools, and relocated with the bureau’s other regularly released economic indicators.

The continuing trend toward automation could widen the disparities between high-growth urban areas and rural counties at a time when workforce mobility is at historic lows, and the current economic health of urban, suburban and rural economies will impact their ability to adapt, according to a new report from the McKinsey Global Institute: The Future

A recent story from the Federal Reserve Bank of Kansas City examines how hospital closures in rural areas have economic impacts that reverberate throughout the community. The report’s author, Kelly Edmiston, found that rural counties with hospital closures saw meaningfully lower annual growth in employment and aggregate wages three years after the closure than counties without hospital closures. Closings were found to have a larger effect on smaller counties, where the hospital has a higher share of employment and wages relative to the total county employment and wages.

Several mega-deal IPOs, including Uber, Zoom and Pinterest, and strong merger and acquisition activity, combined to create a record-setting $188.5 billion in venture-backed exit value for the first half of 2019, according to VentureMonitor, the quarterly report on venture capital investment compiled by the National Venture Capital Association and PitchBook. According to the report, the six-month total for 2019 has already topped the full-year total for all prior years.

A recent report from Georgetown University’s Center on Education and the Workforce (CEW) details the changes in manufacturing’s geographic concentration across the country between 1940 and 2016. Manufacturing was the largest source of employment in 15 states in 1940, concentrated in the Northeast and Midwest, and had grown to the largest source of employment in 18 states by 2000, concentrated in the Southeast and central states. However, manufacturing was the largest source of employment in only Indiana and Wisconsin by 2016.

The Department of Labor recently announced awards totaling $183.8 million in Scaling Apprenticeships Through Sector-Based Strategies grants. Funded through H-1B visa fees, the grants will support the training of more than 85,000 apprentices. The grantees include 23 academic institutions and grant-matching industry consortia representing 18 states, and includes three SSTI members — the University of Cincinnati, Lorain County Community College and the State University of New York Research Foundation.