[StBernard] Local Community Leaders Launch New Orleans Startup Fund

[Westley Annis]

Local Community Leaders and GNO, Inc. Launch New Orleans Startup Fund 

Nonprofit Fund to Benefit Burgeoning Local Entrepreneurial Community 

 

	NEW ORLEANS --  <http://gnoinc.org/images/134.jpg> Today, local community and business leaders joined together to launch the New Orleans Startup Fund, a nonprofit venture capital fund designed to accelerate local early-stage companies that demonstrate high-growth potential. By providing seed capital and business assistance to local startups, The Startup Fund seeks to create more jobs and economic prosperity for the Greater New Orleans region. 

"In the past few years, New Orleans has seen a surge of talent and energy," said Leslie Jacobs, Executive Vice President of Strategic Comp and Founder and Secretary of the Startup Fund. "Now more than ever, these entrepreneurs have the opportunity to strengthen and diversify our economy with new ideas and companies. But to do so, they will need early-stage capital --and this is exactly what the Startup Fund will provide." 

In recent years, New Orleans has harnessed the power of its competitive advantages to develop a strong entrepreneurial community and establish the region as a hub of innovation and creativity. However, a lack of access to early-stage funding and a relatively undersized venture capital market have prevented the local startup community from maximizing its full potential. The Startup Fund will correct this deficiency by providing "proof-of-concept" funding – the first rung of the "capital ladder" – to not only help start and grow companies, but also build the local capital infrastructure in the process. 

"When we founded TurboSquid in 2000, there were few companies like ours, and we were incredibly lucky to get seed funding," said Matt Wisdom, CEO of digital marketplace TurboSquid and Chairman of the Startup Fund. "We've been fortunate to have so many companies starting up in New Orleans in recent years, but we need to take the luck out of the process. The Startup Fund will provide the seed capital needed to help new organizations transform our economy." 

In order to qualify for funding, the startups must be headquartered within the 10-parish Greater New Orleans region and must demonstrate a clear vision to grow their business to $20 to $50 million in revenue within five to seven years. The Startup Fund will seek to provide $25,000 to $250,000 to startups that can meet these requirements. In addition, startups will receive technical assistance – including Financial Modeling, Marketing Strategy, Operation Planning, Management, and Follow-on Capital Raising. With a current fund size at $3.9 million, consisting of private, state, and federal monies approved and in process, the target size of the fund is $7 million. 

"Greater New Orleans is at an economic inflection point," said Michael Hecht, President and CEO of GNO, Inc. and CEO of the New Orleans Startup Fund. "Our rates of entrepreneurship, talent attraction, and business development are all rapidly increasing - and the early-stage capital of the Startup Fund will be the key to transforming these ideas and energy into jobs and wealth." 

GNO, Inc. is incubating the Startup Fund, which is a separate 501(c)(3) organization. 

The Startup Fund is modeled after successful venture development programs across the country and has developed a partnership with Cleveland’s JumpStart program, considered the best in the country, ensuring that local startups and the New Orleans economy benefit from their experience and insights. Unlike other venture development programs, the Startup Fund does not measure success by return on investment (ROI), but by the creation of a strong portfolio of companies able to attract outside financing and the development of a local capital ecosystem. In fact, the fund is "evergreen" and will reinvest all profits back into the program. 

"By investing $2 million of hurricane recovery funds through the Office of Community Development in the Startup Fund, we are supporting local innovators and harnessing their creativity to create jobs in the region," said Paul Rainwater, Louisiana Commissioner of Administration. "This public-private partnership will help Louisiana businesses access the capital they need to continue to grow." 

With a Board of Directors led by experienced local businesspeople and philanthropists, the Startup Fund Investment Committee will be led by John Elstrott, Chairman of the Board of Whole Foods and internationally recognized leader in investing and entrepreneurship. His associate, Ralph Maurer, Professor of Strategy and Entrepreneurship at Tulane University, will be Executive Director of the Startup Fund. 

"The New Orleans Startup Fund is the catalyst needed to ensure that more entrepreneurial ventures in the Greater New Orleans region break through to create jobs and wealth," said Elstrott. 

Applications for funding will be taken, beginning immediately, through the Startup Fund’s online application form, available at http://account.neworleansstartupfund.org/index.php/applications <http://emarketing.mudbugmedia.com/c/13049655/23/7MzuLny/lBUw?redirect_to=http%3A%2F%2Faccount.neworleansstartupfund.org%2Findex.php%2Fapplications%2F> . 

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About Greater New Orleans, Inc.

The GNO, Inc. Mission is to serve as the catalyst for wealth creation in the Greater New Orleans region. GNO, Inc. will accomplish this by pursuing an aggressive agenda of business development - marketing the region - and product development - improving regional business conditions through policy, workforce and research initiatives. 

The GNO, Inc. Vision is for the Greater New Orleans region to fulfill its potential as one of the best places in the country to grow a company, and raise a family. The ultimate indication of success for GNO, Inc. will be the presence of a robust and growing middle class in southeastern Louisiana. 

More information can be found at www.gnoinc.org <http://emarketing.mudbugmedia.com/c/13049655/25/7MzuLny/lBUw?redirect_to=http%3A%2F%2Fwww.gnoinc.org> .