I came across an interesting article from earlier this week that appeared in the Hartford Business Journal (Startups Find Home At CI’s Incubator). In the article, its author, Jason Millman, discusses the invaluable assistance provided by business incubators in Connecticut, and, in particular, CTech, the incubator started by Connecticut Innovations.
CTech is located in New Haven at Science Park at Yale, where it houses start-up technology companies. Along with providing space with below-market rent and shared admin equipment amongst other incubating companies, CTech has also gotten commitments from service providers (e.g. lawyers, accountants, etc.) to provide a certain amount of pro-bono and discounted services.
My firm (Updike, Kelly & Spellacy) helps to provide such services to CTech companies. Personally, I’ve been involved with a couple of companies there, and, in my opinion, incubators like CTech are needed now more than ever. As exhibited by many of my ConnTIP posts (See The Need for Seed and The Need for Seed (continued)), I’m a firm believer in the importance of fostering high-tech start-ups in the area, as it’s my belief that it’s these type of entrepreneurs who are going to be the foundation for economic recovery. I’m not alone in that belief…..
The venture capital industry does not profess to be able to solve all of our nation’s economic ills. And we certainly don’t expect the government to be able to do so alone. But working together, the public and private sectors can continue to build on a continuum of innovation, from basic scientific and engineering research to product development, manufacturing, and marketing. In so doing, we can grow the most promising innovations into real companies that will create jobs for American workers and needed products for the American people.
History has shown that during recessionary times like these, creative juices start flowing and people seem more willing to take risk and launch new businesses – they think creatively about new ways to earn a living. Entrepreneurs are born.
- On March 11, Kauffman Foundation president and CEO Carl Schramm was interviewed by Erin Burnett on a segment of CNBC’s “Street Signs” discussing how the economic downturn can spark innovation and entrepreneurship:
The big corporate giants get all the headlines, and even moreso now. However, it’s the “little engines that could” that have always made the U.S. economy churn, and I have no doubt that it will continue to do so….so let’s keep feeding (and seeding and incubating) them!
- Gregg J. Lallier
Update: Also check out blog post from yesterday (Angels Keep Our Economic Future Alive) by Mark Peter Davis venture capitalist at DFJ Gotham Ventures:
Startups are the fresh blood in our economic system. From a macro-perspective new companies drive growth, create jobs and increase the overall standard of living. They are always the team to be rooting for. As a result, the fact that angels are helping to keep the pipeline of new companies full is important news – news that beats expectations.
