This mission to promote entrepreneurship is a core component of President Obama’s national innovation strategy for achieving sustainable growth and quality jobs. The core goals of Startup America are to increase the number and scale of new high-growth firms that are creating economic growth, innovation, and quality jobs; celebrate and honor entrepreneurship as a core American value and source of competitive advantage; and inspire and empower an ever-greater diversity of communities and individuals to build great American companies.
Overall, Startup America, through a full range of public and private initiatives, is aimed at:
- Expanding access to capital for high-growth startups throughout the country;
- Expanding entrepreneurship education and mentorship programs that empower more Americans not just to get a job, but to create jobs;
- Strengthening commercialization of the about $148 billion in annual federally-funded research and development, which can generate innovative startups and entirely new industries;
- Identifying and remove unnecessary barriers to high-growth startups; and
- Expanding collaborations between large companies and startups.
Learn more about the Reducing Barriers Roundtables.
If you have questions regarding a roundtable please e-mail firstname.lastname@example.org
SBA’s Startup America Initiatives Expanding Access to Capital for Entrepreneurs
SBA to Launch Two $1 Billion Initiatives for Impact Investing and Early-Stage Seed Financing: The Small Business Administration (SBA) will commit $2 billion as a match to private sector investment over the next five years in promising high-growth companies. Using existing authority, with no new cost to taxpayers, and the operating infrastructure of the Small Business Investment Company (SBIC) program, SBA-guaranteed bonds will match private capital raised by these privately-owned and managed investment funds and serve as a catalyst for accelerating capital support for startups and high-growth firms.
- $1 Billion Impact Investment Fund: SBA will commit $1 billion to those funds that invest growth capital in companies located in underserved communities. This will include investing in economically distressed areas as well as those companies in emerging sectors such as clean energy. SBA will provide up to a 2:1 match to private capital raised by these funds, partnering with private investors to target “impact” investments.
- $1 Billion Early-Stage Innovation Fund: Early-stage companies face difficult challenges accessing capital, particularly those without the necessary assets or cash flow for traditional bank funding. For high-growth companies, the gap is particularly acute in the so called “Valley of Death” for financing rounds between $1-4 million. Over the past 4 years only 6% of all venture capital has been deployed in that stage, with 70% of the financings going to only three states – California, Massachusetts and New York. The Innovation Fund will target this gap, providing a 1:1 match to private capital raised by early stage seed funds.
The Department of Treasury and SBA will host a conference March 2011 to explore access to capital for small and entrepreneurial businesses. Access to capital is vital to spurring investment in small and innovative businesses, promoting job creation, and fueling sustainable economic growth. A broad range of options to expand growth capital will be discussed, including venture capital, private equity, public and alternative private markets along with obstacles to securing capital. The conference will encourage input from entrepreneurs, investors and policy makers.
Connecting Mentors and Entrepreneurs
SBA and Department of Energy Launch Mentorship Program for Clean Tech Startups: The SBA, in partnership with the Department of Energy (DOE) and Advanced Research Projects Agency-Energy (ARPA-E), will fund four private business accelerators. These four programs will have proven records of success and use the funding to support an additional 100 clean energy startups across the country. These accelerators will provide intensive mentorship from seasoned entrepreneurs to a selection of the most promising new companies previously funded by DOE and ARPA-E. This pilot program is the first step in the development of a large, distributed network of entrepreneurs, mentors, and startup accelerators.
The Department of Veterans Affairs (VA), in partnership with SBA and the Department of Labor, will establish two of the first integrated business accelerators focused solely on helping our Veterans launch and sustain their own businesses. The first accelerator program offers an interactive website that provides a comprehensive roadmap of the starting a small business and provides assistance in utilizing the diverse set of resources available to support Veteran entrepreneurs. The second program includes a business incubator facility, located in Waukesha, Wisconsin, where early-stage Veteran-owned businesses are mentored by experienced entrepreneurs and trained to develop the skills needed to build a successful businesses.
Making Government Work for Entrepreneurs
Top Administration Leaders Announce National Tour to Support Public Participation in Removing Barriers to Entrepreneurship:
The President has issued an Executive Order and accompanying memorandums to federal agencies to identify and take steps to eliminate or reduce processes that are outdated or overly burdensome to entrepreneurs. As part of this effort to receive feedback from entrepreneurs on the front lines, officials from SBA and other federal agencies will launch online suggestion tools for the public and go on the road to innovation centers like Silicon Valley and North Carolina’s Research Triangle Park to hear from entrepreneurs about the challenges they face, share current Administration efforts to support entrepreneurship, and to streamline or eliminate the biggest barriers to startup growth.
Taken from the Startup America Website.