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Todd Connor, CEO of Bunker Labs, begins his pitch in front of a Startup Week event in Columbus, Ohio with a compelling statistic. In the six years following WWII, 50 percent of returning veterans started their own businesses. Today, only 6 percent of post-9/11 vets do the same, despite surveys showing four times that number would like to do so.  What has changed to lead to such a contrast and entrepreneurship gap?

The latest Angel Resource Institute (ARI) survey of returns for nearly 250 angel investments reveals the number of projects failing to breakeven during their liquidity events is up sharply since before the Great Recession – nearly 35 percent more are losing money for their angels than ARI found in a 2007 survey.  In 2007, 52 percent of liquidity events failed to reach 1x, while that figure has grown to 70 percent in 2016. Add to that, angel investors are holding companies in their portfolios 12 months longer on average, 4.5 years in 2016, than they did in the first study.

A mixture of success and trepidation accompanied 2016 legislation introduced in  several states to create, extend, or recapitalize angel tax credit programs. While legislation in Arizona’s legislature failed due to a lack of support, angel tax credit bills in Kansas and Tennessee passed easily with broad support from their governors, lawmakers, and the public. In North Dakota, the state’s angel tax credit program faces an unclear future due to concerns about transparency and oversight. To stimulate investments in West Virginia’s startup community, Gov.

SSTI’s 2016 Annual Conference is November 1-3 in Columbus, Ohio. The agenda will cover the entire innovation ecosystem, including accessing capital, supporting entrepreneurs, developing clusters and expanding R&D. We would appreciate your help identifying specific session topics. Provide your input by responding to this brief survey by May 18—and you will be entered to win a free registration for an SSTI webinar. Take the survey...

Are you interested in influencing the design and development of national policy solutions to challenges in the innovation economy? The U.S. Department of Commerce is seeking applications for membership on the prestigious National Advisory Council on Innovation and Entrepreneurship (NACIE), which advises the secretary on fundamental issues affecting state, regional and university based innovation initiatives.

To mark the 10th anniversary of the SSTI Excellence in TBED awards program, we have made some exciting changes to the categories. Since last year, we have combined some categories with the intent of better reflecting the ever-evolving field of tech-based economic development and added a new category to reflect burgeoning activity in a new area.

Vice President Joe Biden announced a $100 million competition to expand tuition-free community college programs that connect young Americans to in-demand jobs. To support a growing trend of free community college programs, America’s Promise Job-Driven Training grants (America’s Promise Grants) will provide federal funding for the creation and expansion of regional and sector partnerships between community colleges, local industries, other training providers, employers, and, the public workforce system targeted at in-demand middle and high-skilled jobs across the country.

While the first quarter of 2016 was slow for venture capital investments in the United Kingdom (UK), recent weeks have seen significant new developments in both financing and converting technologies from six UK universities into the marketplace.  The goal of these new funding initiatives is, in part, to improve the survival rate of small- and medium-sized businesses (only 45 percent of all UK startups survive beyond the first five years).

A new report from the Lumina Foundation finds the U.S. is making progress in the number of Americans holding high-quality credentials beyond high school diplomas. For the seventh straight year, the percentage of the country’s working age population (age 25-64 years) with a quality post-secondary credential increased, reaching 45.3 percent in 2014. Even with the progress that has been made, however, the U.S.

The United States Department of Agriculture (USDA) announced last month the availability of more than $11 million in grants to support rural broadband through its Community Connect grant program, which seeks to help fund broadband deployment into rural communities where it is not yet economically viable for private sector providers to deliver service. For FY 2016, the minimum grant amount is $100,000, while the maximum award is $3 million.

The Department of Energy (DOE) announced today that they are seeking proposals for a new Clean Energy Manufacturing Institute, a part of the National Network for Manufacturing Innovation (NNMI). The $70 million Modular Chemical Process Intensification Institute will focus on developing breakthrough technologies that increase the energy efficiency of manufacturing processes used across an array of U.S. industries.

The Small Business Administration (SBA) announced the 2016 Growth Accelerator Fund competition. In its third year, the SBA will commit up to $3.95 million for accelerators and other entrepreneurial ecosystem models to compete for monetary prizes of $50,000 each. This year, the SBA will partner with several other federal agencies – NIH, NSF, Department of Education, and USDA – to provide additional prizes to accelerators that assist entrepreneurs with submitting proposals for the Small Business Innovation (SBIR) and Small Business Technology Transfer (STTR) programs. Applications must be submitted by June 3.

Wells Fargo & Company released a five-year, company-wide corporate social responsibility (CSR) strategy that includes significant commitments to inclusion, innovation, small business lending, and community investment. Its 2020 social commitment will target three commitment areas – diversity and social inclusion; economic empowerment; and, economic sustainability.

Coming off a record setting year, industry analysts contended that there would be a more cautious U.S. venture capital industry (VC) in 2016 with discussion of a VC bubble. However, in Q1 of 2016, venture capitalists invested more than $10 billion for the ninth consecutive quarter with little concern over a bubble. In total, VCs invested $12.1 billion in 969 deals in the Q1 of 2016, according to the MoneyTree Report from PricewaterhouseCoopers LLP (PwC) and the National Venture Capital Association (NVCA). At the same time, U.S. venture capital firms raised $12.0 billion for 57 funds during Q1 of 2016, making it the strongest quarter for funds raised since Q2 of 2006, according to the Fundraising Report by Thomson Reuters and NVCA. A review of the data indicates continuation of trends in where venture capital is being invested, the decline of investment in seed stage companies, and increasing corporate venture capital activity with 20.6 percent of funds invested in Q1 of 2016 coming from corporate venture capital.

On April 20, the Virginia General Assembly sent three economic development-focused bills (HB 1343, HB 846, and HB 834) to Gov. Terry McAuliffe. The bills include the creation of a new research fund and the creation of a network of regional economic development councils. Although the bills have yet to be signed, Gov. McAuliffe has publicly supported each of them. This package of economic development initiatives was originally proposed in the governor’s economic development strategy as well as his recent budget proposal. However, it took some compromise between the governor’s original proposals and the General Assembly to reach a final package.

As the 2015-2016 academic year comes to a close, universities and their industry partners have announced several new university-industry partnerships to leverage university research capabilities to address industry needs. Fortune 500 companies including IBM, Rolls-Royce, and several pharma companies have agreed to commit millions of dollars to support these partnerships targeted at increasing the pace of scientific discovery as well as training the next generation of STEM professionals.

In its first passage of a broad energy bill since the Energy Independence and Security Act of 2007, the U.S. Senate included provisions in the Energy Policy Modernization Act of 2016 (S.2012) that would: increase the authorization level for the Department of Energy’s (DOE) Office of Science by 5 percent per year to $7.1 billion; increase the Advanced Research Projects Agency-Energy (ARPA-E) program’s authorization level to $375 million in 2020, up from $291 million this year; help remove barriers for technology transfer at the federal laboratories; and, authorize the DOE to establish “microlabs” in close proximity to federal labs in support of regional innovation. The bipartisan legislation was approved by a vote of 85 to 12.

Only 8 percent of partners with the authority to invest at 2,300 micro- and venture capital (VC) firms are women (and only 7 percent of the top 100 firms), according to CrunchBase Women in Venture, a new report providing a detailed snapshot of the state of female investors and founders. The report finds of 54 corporate VC divisions and 101 accelerators, 12 percent of partners were female.

Last month, the Department of Energy (DOE) released its first United States Energy and Employment Report (USEER) in an effort to articulate in clearer terms the sector’s wide-ranging impact on the national economy. While this report covers the entirety of the energy spectrum, a related report released just weeks after, Clean Jobs America: A Comprehensive Analysis of Clean Jobs in America, looks only at those jobs related to the clean energy economy. Based on SSTI’s analysis, Clean Jobs America suggests that there are more than 2.5 million clean energy jobs in the United States, or 44 percent of the 5,729,882 energy jobs highlighted in the DOE report.

The Economic Development Administration (EDA) released the Federal Funding Opportunity (FFO) and began accepting applications for the 2016 round of Regional Innovation Strategies (RIS) Program funding. In this round of funding, the EDA has made $15 million in federal funding available to create and expand cluster-focused proof-of-concept and commercialization programs and early stage seed capital funds through the i6 Challenge and the Seed Fund Support (SFS) Grant competition, respectively. Managed by EDA’s Office of Innovation and Entrepreneurship (OIE), EDA has made $13 million available for i6 Challenge grants and $2 million available for SFS grants. The deadline for the 2016 RIS FFO is 11:59 P.M. ET on June 24.

To build 21^st century workforces in key S&T sectors, several new public-private initiatives have been launched in South Carolina, New Jersey, Utah, and Montana. These initiatives are intended to better align the educational training of students with the needs of industries that each respective state has identified as a key industry cluster. Target industries include advanced manufacturing, aerospace, biotechnology, chemistry and plastics, and cyber security.

South Carolina

The National Science Foundation tells of a record number of doctorates awarded at the same time the American Association of University Professors (AAUP) reports opportunities to secure tenure-track positions continue to shrink, the State Higher Education Executive Officers Association points out state support for higher education remain

The Internet of Things (IoT) is all the rage within the information and telecommunications sector and has both applications and implications for every aspect of your life.

In the last month, major new developments have occurred in TBED capital programs. Launch Tennessee and Pittsburgh-based Innovation Works both announced positive findings about the growth of their startup investment ecosystems with $1 billion being raised by Tennessee startups from 2012 to early 2016 and over $279 million invested in Pittsburgh startups in 2015. Meanwhile in Ohio, both Youngstown-based and Cincy-based startups will see an influx of capital, while a new $150 million fund focused on stem cell companies and regions has been launched.