Venture Development Organizations

Speaking at the U.S. Economic Development Administration's (EDA) Southwest Region Conference on Innovation and Entrepreneurship in Albuquerque, N.M., U.S. Assistant Secretary of Commerce for Economic Development John Fernandez today (May 11) unveiled a new website to connect Venture Development Organizations (VDO) in America's regions and accelerate economic development efforts that promote growth and job creation. The Regional Innovation Acceleration Network (RIAN) will bring VDOs together to share best practices and leverage resources that will strengthen regional economic ecosystems.

Developed in partnership with the State Science & Technology Institute, the new website - www.regionalinnovation.org -- highlights how VDOs are helping entrepreneurs turn their innovations into businesses by providing direct funding and increasing access to capital.

"The Regional Innovation Acceleration Network builds on President Obama's national innovation agenda by bringing Venture Development Organizations within America's regions together to help increase business development and competitiveness," Fernandez aid. "Across the nation, these organizations are helping to grow local economies and create jobs, and this new network will enhance their impact and efficiency."

The RIAN offers an interactive map designed to help economic development practitioners identify their regional innovation colleagues, where they operate, and connect with them. To facilitate the growth of existing innovation networks, the website provides technical assistance; and for those regions where networks have yet to develop, it provides the means for peer-to-peer sharing of information between existing and emerging VDOs.

VDO's are non-profit, business driven partnership organizations that include government, community foundations, universities and civic organizations that work together to promote technology and innovation-based development. They provide a multifaceted portfolio of services tailored to address the specific needs of the regional economy, helping to create 21st century jobs.

Ben Franklin Technology Partners of Northeastern Pennsylvania is one of many examples of a successful VDO that is boosting economic growth and job opportunities in its community. The organization invests in early stage technology entrepreneurs to help create sustainable technology jobs. They are currently expanding their Ben Franklin TechVentures facility in Lehigh Valley to support more innovative research and cutting-edge ideas. The project is expected to create up to 200 sustainable, high-paying technology jobs and retain 100 additional jobs at new, start-up companies in its first three years. TechVentures has already launched 44 successful companies, grossing more than $675 million in annual revenue and creating more than 4,000 jobs since 1983.

With the new RIAN, Ben Franklin Technology Partners can share its knowledge and experiences with emerging VDOs and find new partners as it works to foster business growth that supports economic prosperity and jobs in America's regions.

Startup America

Launched earlier this year in response to President Obama's call to celebrate, inspire, and accelerate high-growth entrepreneurship, the Startup America Partnership has announced commitments from more than fifteen companies and nonprofits to provide resources valued at approximately $400 million to U.S. entrepreneurs.

Building on existing pledges of support from some two dozen companies, new corporate commitments include products and services valued at over $125 million from American Express; training worth more than $3 million from Cisco; $100 million from Google to help entrepreneurs promote their companies through Google advertising programs; discounts on HP products valued at $100 million; and free access for all qualified startups to Microsoft software and support through the company's BizSpark program.

In addition, new nonprofit partners include Palindrome Advisors, which pledged to connect a thousand first-time entrepreneurs with top industry advisors; the National Venture Capital Association, which will provide access to its more than four hundred venture capital firms, four thousand investors, and thousands of venture-backed company CEOs; the National Center for Women & Information Technology, which will help high-tech startups capitalize on the increased innovation and business benefits of gender diversity; and the Angel Capital Association and Angel Resource Institute, which together will work to increase access to investment capital by doubling the number of high-caliber investors in angel groups across the country.

"We're gratified by the response we've seen from the private sector since launching the Startup America Partnership less than ninety days ago," said Startup America Partnership chair Steve Case. "Today's announcement of new commitments highlights the progress we're making to provide entrepreneurs with resources to grow and scale. We're grateful for the companies that have stepped up to help celebrate and accelerate entrepreneurs and we look forward to adding additional partners in the near future."

“New Startup America Partnership Commitments From Google, LinkedIn, Microsoft, American Express, Intuit and others to Support Tens of Thousands of U.S. Startups.” Startup America Press Release 4/20/11.