CLEVELAND, June 25, 2012 —
/PRNewswire/ — Tech-based startups that receive early support from
mentors, advisors and investors are showing themselves to be significant
contributors to Northeast Ohio’s economy, even early in their growth.
In 2011, 121 young companies that benefited from business assistance and
sometimes seed capital from JumpStart Inc.
collectively generated more than $220 million in economic benefits for
the region, according to an annual report from The Center for Economic Development
at Cleveland State University’s Levin College of Urban Affairs. The
121 innovative businesses included in the report collectively increased
Ohio state and local tax revenues by $12.3 million in 2011, more than
covering the cost of both the technical assistance provided and the seed
capital invested by JumpStart.
“Thanks to the commitment of
public, private and philanthropic partners, organizations like JumpStart
are able to provide free or low-cost resources to entrepreneurs that
have the potential to go on to create wealth and opportunities for their
communities,” said entrepreneur and JumpStart Board Chair Doug
Weintraub. “Now we’re seeing some of the young companies we and our
partners in the region were able to help at pivotal points in their
development — companies like digital marketer Knotice, regenerative therapies developer Juventas Therapeutics or water remediator ABSMaterials —
really start to take off and produce returns on the region’s investment
by attracting additional risk capital, generating revenues, paying
taxes and creating new jobs.”
Companies analyzed in the report
helped create and retain 776 in-region direct jobs, with a total
Northeast Ohio employment impact of more than 1,600 total jobs in 2011.
“These largely IT, cleantech and healthcare companies need skilled
talent, so the positions they create are generally very good-paying
ones, in this case averaging a yearly salary of around $65,000,” says
Weintraub. Every new job created by these companies and their suppliers
also generated new earnings for local households, increasing total
household earnings in Greater Cleveland by $89 million in 2011.
JumpStart expects the impact some of these innovators have on the
region’s economy will increase as the companies continue to grow.
Sixty-three companies included in this 2011 impact analysis also were
surveyed in 2010. In one year, those companies increased their
aggregated Northeast Ohio employment by 111, payroll by $8.7 million and
expenditures by $20.6 million.
Data for the economic impact study
was collected via a survey of a sampling of companies that received
support to speed their growth from Cleveland-based nonprofit venture
development organization JumpStart and/or the associated North Coast Angel Fund.
The CSU report does not include the economic impact of all startups in
the 21 counties of Northeast Ohio or even all of the companies to which
JumpStart provides assistance, just those who responded to the survey,
reported some Ohio employment, payroll or expenditures in 2011, and
certified their responses. Weintraub adds, “This is a positive
indication of the transformative role JumpStart, our partners and others
tech-based economic development resources can continue to play in our
region’s economic transformation.”
To read the entire 2011 Economic Impact of JumpStart Inc. Portfolio and Client Companies report, visit www.jumpstartinc.org/results/reports.
JUMPSTART INC JumpStart
accelerates the successes of diverse entrepreneurs, their companies,
and the ecosystems supporting them. JumpStart has provided intensive
business assistance to more than 400 entrepreneurial clients and
invested in 64 early stage Northeast Ohio companies. To learn more,
visit www.jumpstartinc.org or follow @JumpStartInc on Twitter.
SOURCE JumpStart Inc.
CLEVELAND, June 25, 2012 —