PRESENTER: Presenter
Jonathan Packer, President & CEO, New Braunfels Chamber of Commerce
Body
SUBJECT: Title
Presentation and discussion on a New Braunfels Economic Development Corporation project expenditure for up to $1,200,000 to Gener8tor for a multi-year entrepreneurship incubator project, pursuant to 505.102 of the Texas Local Government Code.
Header
DEPARTMENT: Economic & Community Development
Body
COUNCIL DISTRICTS IMPACTED: Citywide
BACKGROUND INFORMATION:
Gener8tor, founded in 2012, operates entrepreneurship and accelerator programs designed to connect startup founders with mentorship, networks, and capital. Gener8tor has operated more than 400 cohorts in approximately 50 communities, supported more than 2,100 startups, helped participating companies raise more than $2.9 billion, and supported the creation of more than 14,000 jobs.
There is a gap in access to startup capital and support infrastructure for New Braunfels entrepreneurs. While New Braunfels has a growing base of entrepreneurs and innovative companies, local founders do not have the same access to structured accelerator programs, experienced mentors, and investor networks available in larger startup ecosystems.
The proposed project would bring Gener8tor's gBETA accelerator program to New Braunfels. gBETA is a cohort-based program designed to help early-stage companies refine their business models, develop their companies, build relationships with experienced mentors, and prepare to pursue outside investment. Gener8tor does not take equity in participating companies as a condition of participation in the gBETA program.
The program brings three capabilities that are particularly important to building a stronger entrepreneurship ecosystem in New Braunfels:
• Founder sourcing: Gener8tor's network and recruitment process provides the ability to identify and attract promising founders and companies.
• Mentor network: Program participants gain access to an expansive network of experienced entrepreneurs, business leaders, subject-matter experts, and other mentors who can help them address the challenges of building and scaling a company.
• Capital connectivity: Gener8tor provides founders with connections to angel investors, venture capital firms, and other funding sources while helping participating companies become better prepared to pursue investment.
These capabilities are intended to complement New Braunfels' existing entrepreneurship resources by creating a stronger pipeline from promising founder to mentorship, investment readiness, and ultimately access to capital.
The New Braunfels gBETA program would operate two cohorts annually for three years. Participating companies would receive individualized coaching, mentor and investor connections, peer engagement, assistance establishing financing goals and milestones, and opportunities to present their businesses to potential investors and community stakeholders.
In addition to operating the gBETA cohorts, Gener8tor will:
• Employ a full-time employee based in New Braunfels to facilitate the program;
• Maintain office space within the City limits;
• Host quarterly entrepreneurship and networking events in New Braunfels;
• Develop a Lunch & Learn series to support local entrepreneurs and startups; and
• Develop and host an in-person showcase event where program graduates can present their companies to investors, entrepreneurs, business leaders, and community members.
The annual cost of the program is $375,000, subject to applicable reductions associated with complimentary office space and annual investment by the New Braunfels Economic Development Foundation.
Section 505.102 of the Texas Local Government Code permits the NBEDC to contract with other organizations to assist with the development and operation of economic development programs.
The project advances the NBEDC Strategic Plan's focus on business recruitment and retention by strengthening the infrastructure available to entrepreneurs and high-growth companies. Building a stronger local startup ecosystem can help New Braunfels retain entrepreneurial, creative, and technical talent that might otherwise seek these resources in larger startup markets.
ISSUE:
New Braunfels has a growing entrepreneurial community but limited dedicated infrastructure for sourcing high-potential startups, connecting founders with experienced mentors, and providing access to regional and national investment networks. The proposed three-year gBETA program is intended to address these gaps and strengthen the City's capacity to develop and retain high-growth businesses.
STRATEGIC PLAN REFERENCE:
YES Economic Mobility N/A Enhanced Connectivity N/A Community Identity
N/A Organizational Excellence N/A Community Well-Being
FISCAL IMPACT:
The NBEDC has appropriate fund balance to approve this expenditure. The Gener8tor program will be a three-year program at an annual cost of $375,000.
Recommendation
RECOMMENDATION:
No action is required; this item is a presentation on a proposed expenditure.