anatomy of the 1mc entrepreneur

© 2013 Ewing Marion Kauffman Foundation

www.kauffman.org© 2013 Ewing Marion Kauffman Foundation

The Anatomy of the 1MC

EntrepreneurArnobio Morelix and Colin Tomkins-Bergh


Research and Policy

• Policyo Startup Act

o Startup Visa

• Datao Kauffman Index

o Used by the Whitehouse and 15 governors

• Researcho The Importance of Startups in Job Creation and Job Destruction

• Growthology Blog


Previous 1MC Research

Goals:

1. Understand the growth of 1MC

2. Learn how to improve the program

Previous Research

• Energizing an Ecosystem: Brewing 1

Million Cups - 2012o Understanding the value that 1MC gives entrepreneurs

• Think Locally, Act Locally - 2014o Discovering the connectivity of 1MC entrepreneurs within

their communities

http://www.kauffman.org/what-we-do/research/a-research-compendium-entrepreneurship-ecosystems/energizing-an-ecosystem-brewing-1-million-cups

http://www.kauffman.org/what-we-do/research/a-research-compendium-entrepreneurship-ecosystems/think-locally-act-locally-building-a-robust-entrepreneurial-ecosystem


Today’s Outline:

• Anatomy of 1MC Founders

• Anatomy of 1MC Startups

• Mapping 1MC

• Takeaways


1MC Survey

• Overview

o 605 responses from 1MC presenters in 58 cities

o Asked 20+ questions about themselves (founder) and their startup

o Questions included:

• How would you describe the stage of your company?

• What sources of financing have you drawn from to finance your / current

company?

• What would you say is the primary sector of your venture?


1MC Kansas City Interview Project

• Overview:o Interviewed 15 Entrepreneurs in Kansas City who have presented at 1MC

o Did two focus groups and 5 individual interviews

o We wanted to gain insight to the following three questions:

1. What perceived impact does 1 Million Cups have on businesses and

entrepreneurs?

2. How does an entrepreneur connectedness to the ecosystem changes (or

does not change) after involvement with 1 Million Cups?

3. What is the effectiveness of the education curriculum


Everyone Loves 1MC

• All entrepreneurs interviewed said they would

recommend 1MC to another entrepreneur

• “1MC is a big eye-opener”

• “There is no stage like that of 1MC”

• “1MC has strengthened my confidence of being an

entrepreneur”


3 Insights on Presenting Founders:

1. Presenting entrepreneurs participation in local entrepreneurship events

2. Founder’s make lots of connections from their presentation at 1MC

3. Top skill sets of 1MC entrepreneurs

Anatomy of 1MC Entrepreneurs:


Three stages of engagement with the community:

1. Entrepreneurial Networkingo Entrepreneurs interact a lot with other startups by attending lots of events to

grow their network

2. Launcho Entrepreneurs tend to disappear from the events scene once they launch their

initial product or service on the market

3. Initial Tractiono Once the product service is successful or not, entrepreneurs look to become

more involved in entrepreneurial events and want to help fellow startups

Anatomy of 1MC Entrepreneurs: Engagement

with 1MC


Revenue-Generating Count Average of Programs Attended

No 52 2.00

Yes 58 1.66

Non-founders 51 0.98

Grand Total 161 1.42

Entrepreneurs generating revenue attend more programs?

Having Employees Count Average of Programs Attended

No 41 1.78

Yes 70 1.79



Full-Time Commitment Count Average of Programs Attended

100% for this company 53 1.56

Have another job 48 1.85



Entrepreneurs employing other people attend more programs?

Entrepreneurs committed full-time attend more programs?

Anatomy of 1MC Entrepreneurs: Community

Engagement


• Presenting entrepreneurs roughly double their participation in local

entrepreneurship events

• Some examples of events and organizations that they became involved with

after their presentation are: o KC Source Link,

o Digital Sandbox,

o Sprint Accelerator,

o LEARN (women business education program),

o Chamber after hours,

o GEW,

o Urban Core, Mayors challenge cabinet steering community,

o Startup of the Year Brand Competition

o KC Roundtable.

Anatomy of 1MC Entrepreneurs: Outside

1MC Connection


• 35% are more connected (26 out of 74).

0

5

10

15

20

0 1 2 3-5 6-9 10-14 15-18

May-13 Jan-14

35 33

Anatomy of 1MC Entrepreneurs: Within 1MC

Connection


What are the Top 3 Skills of 1MC Entrepreneurs ?

• Designer/Creative

• Developer/Engineer

• Finance

• Logistics

• Management

• Other (please specify)

• Sales/Marketing


• Management, Designer/Creative and Sales/Marketing are the top 3 skill sets.

• Only 9% of founders identify their primary skill set to be that of

developer/engineer (typical high-tech skills)

Designer/Creative17%

Developer/Engineer9%

Finance2%

Logistics1%

Management27%

Other (please specify)

29%

Sales/Marketing15%

SKILL SETS

Anatomy of 1MC Entrepreneurs: Skills


Anatomy of 1MC Entrepreneurs: Gender

Female28%

Male72%

Similar to national average. But something to think about


Anatomy of 1MC Startups:

• Percentage of companies with full time employees

• Percentage of companies with > 50k in revenue per year

• Percentage of companies that have generated revenue.


What percentage of

companies have full time

employees?


• 60% of all presenting companies have generated revenue.

Idea Stage2%

Active Development (pre-revenue)

20%

Deployed Product/Service (pre-

revenue)18%

Have generated revenue

42%

Profitable18%

Anatomy of 1MC Startups: Business Stage


• Over 50% of companies that have revenue make > 50k in revenue per year

Anatomy of 1MC Startups: Revenue

29.61

13.41

8.1

12.57

17.6

6.42

11.17

$10,000 or less $10,001 to$25,000

$25,001 to$50,000

$50,001 to$100,000

$100,001 to$500,00

$500,001 to$1,000,000

$1,000,001 ormore

Revenue (%)


• 38% if companies have 1 or more full time employee

• Over 60% of companies have no full time employees

61.27

12.05

5.16

4.13

3.1

14.29

0 10 20 30 40 50 60 70

No Full-Time

1

2

3

4

5 or more

Full Time Employees

Anatomy of 1MC Startups: Employees


What are the top five

sectors of Presenting

companies?


• Information and Communication Technology, Education, and Health are the

three most represented industries by 1MC startups.

• More than 15 industries are represented by 1MC startups

Anatomy of 1MC Startups: Sectors

3.97

7.12

7.62

9.77

16.06

0 2 4 6 8 10 12 14 16 18

FINANCIAL SERVICES

FOOD OR RESTAURANT

HEALTH

EDUCATION

INFORMATION AND COMMUNICATION TECHNOLOG

Top 5 Sectors (%)


• Not everyone is always seeking capital

14.93

28.52

19.07

37.48

0 5 10 15 20 25 30 35 40

ALREADY RAISED SUFFICIENT CAPITAL

BOOTSTRAPPING (DO NOT PLAN TO SEEK ANY MORE MONEY)

HAVE NOT STARTED SEEKING CAPITAL

SEEKING CAPITAL

Current Stage of Financing (%)

Anatomy of 1MC Startups: Financing


• Reflects national trends of early stage companies

Anatomy of 1MC Startups: Financing

3.8%

4.1%

7.0%

7.8%

14.9%

16.1%

17.6%

17.7%

20.4%

29.2%

35.0%

79.3%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0%

OTHER COMPANIES

VENTURE CAPITALISTS

GOVERNMENT GRANTS (E.G. SBIR OR STTR)

CROWDFUNDING

OTHER (PLEASE SPECIFY):

ANGEL INVESTORS

PERSONAL OR BUSINESS LOAN FROM A BANK

BUSINESS ACQUAINTANCES

CLOSE FRIENDS

PERSONAL OR BUSINESS CREDIT CARD

FAMILY MEMBERS

PERSONAL SAVINGS

Sources of Financing


Where are all of these

Entrepreneurs and

Startups?


Interactive Map


Takeaways:

1. The 1MC Launching Pad

o Presenting entrepreneurs roughly double their participation in local entrepreneurship events.

o Using 1MC as a bridge into greater entrepreneurial community to other organizations

2. Understand 1MC Entrepreneurs

3. Understand 1MC Startups

o To better serve their needs

4. Learn about other 1MC chapters across the country

o Interactive map to learn from others and get in touch!


Thank You!

• Colin Tomkins-Bergho [email protected]

• Arnobio Morelixo [email protected]

• Follow us on The Growthology Blog

mailto:[email protected]

mailto:[email protected]

http://www.kauffman.org/blogs/growthology/2015/04/1-million-cups-san-diego

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