Technology-based economic development organizations work with economic development professionals throughout the U.S. to help build their local innovation and entrepreneurship ecosystems. Sometimes, bringing in outside expertise with established networks to R&D and finance can accelerate the local capacity to support innovation-driven startups. gener8tor, a venture capital and startup accelerator founded in Wisconsin, is one such example of external partners supporting TBED capacity building anywhere.
gener8tor began working with the State of Indiana in 2018 and has since expanded that relationship to include Indiana University, the Central Indiana Corporate Partnership, and BioCrossroads. And while the priorities of each of these parties are unique, gener8tor assists these institutions in meeting their technology-based economic goals in a manner that helps build a cohesive innovation network for the state.
Innovation and entrepreneurship challenges come into focus in Indiana
gener8tor’s entry into Indiana came in response to the Indiana Economic Development Corporation’s 2017 innovation and entrepreneurship priorities. The IEDC took on the role of designing and executing a billion-dollar initiative and would eventually extend a contract to gener8tor from the State of Indiana.
At the time, Indiana had no formal accelerator program, so state officials considered recruiting or building an accelerator system. They began a global search for the best existing accelerator programming, wanting to investigate the possibility of partnering with an accelerator, rather than building one from the ground up.
They talked to several nationally regarded accelerators, but there were several drawbacks: they were outside of their budget, and the staff thought they did not understand the challenges of the Midwest.
So, they also looked at accelerator vendors that have had success in markets outside of Silicon Valley; gener8tor was one of them. gener8tor’s experience as a Midwest-based company and ability to provide mentorship, network and capital access to secondary markets outside of major tech hubs clicked with the staff.
gener8tor proposed that Indiana partner on a gBETA accelerator program, gener8tor’s free-to-participate, seven-week pre-accelerator that helps nascent local startups grow, connect with mentors and customers, and gear up for their first round of venture capital. After its initial contract with the State of Indiana, gener8tor continued to expand the types and number of programs. When the COVID pandemic led to increased federal funding for states, Indiana looked to them for help. So, during the COVID pandemic, Indiana partnered with gener8tor to develop impactful programming to deploy funds responsibly. “Now we're on our third contract with the IEDC," noted Troy Vosseller, Co-founder of gener8tor. "Every contract has grown in terms of scope and programming. Today we run a conference, high-tech accelerator programs in manufacturing, agriculture, life science, and mobility, and a Main Street small business program."
The state relationship leads to gener8tor's spread to higher education
gener8tor has recently expanded its presence in Indiana by its involvement in two programs at the Indiana University Launch Accelerator for Biosciences (IU LAB). One program is the IU Health Incubator Pre-Accelerator Powered by gener8tor (IU LAB x gener8tor), and the other is the LifeTech Accelerator Powered by Plug and Play & Central Indiana Corporate Partnership (CICP). A follow-on to the accelerators, BioCrossroads (a branded initiative of CICP), helps the companies establish themselves within the Indiana startup ecosystem, with the goal of keeping them in Indiana.
The IU LAB x gener8tor pre-accelerator offers a seven-week program. gener8tor and Plug and Play, which are collaborating for the first time, have developed a system where, as one is sourcing companies, the other is running their program. And then they switch roles, creating a steady stream of startups coming through the lab at any one point in the year.
gener8tor is also helping IU LAB develop the culture and the messaging for creating a startup ecosystem. David Rosenberg, CEO of IU LAB, notes that having gener8tor as a partner as they were building their entrepreneurial culture, especially in the life sciences space, was “huge."
gBETA delivers big impacts
Across Indiana, gener8tor’s success is impressive:
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To date, gener8tor’s gBETA accelerators have launched 219 companies. Those companies have created 915 jobs.
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The total amount of funding raised by startups graduating from the Indiana gBETA programs is $159,847,212.
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The goal is for 1/3 of all gBETA graduates to go on to raise at least $50,000, join an equity-based accelerator, or sell their business (acquisition). To date, 37% of the startups graduating from the Indiana gBETA programs have hit this metric.
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gBETA accelerators have seen a ratio of over $1:$40 in dollars spent on programming vs. follow-on funding raised by alumni startups.
gener8tor's presence is largest in Indiana, but its gBETA accelerators are operating across the U.S. and in three international locations. Below is a summary of the cumulative combined success of all the gBETA accelerators.
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1,423 companies accelerated
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6,480 jobs created
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43% raised at least $50,000, joined an equity-based accelerator or exited
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gBETA companies cumulatively have raised $949,268,216in funding