EC2 at USC Annenberg Proves Success of Non-Profit Incubators; EC2 and Other Non-Profit Incubators Outlast For-Profit Competitors.Business Editors LOS ANGELES--(BUSINESS WIRE)--Jan. 4, 2001 Showing its staying power during the technology shakeout of 2000, EC2, the business incubator Business incubators are organizations that support the entrepreneurial process, helping to increase survival rates for innovative startup companies. Entrepreneurs with feasible projects are selected and admitted into the incubators, where they are offered a specialized menu of at the University of Southern California The U.S. News & World Report ranked USC 27th among all universities in the United States in its 2008 ranking of "America's Best Colleges", also designating it as one of the "most selective universities" for admitting 8,634 of the almost 34,000 who applied for freshman admission , continues its record of success, while for-profit incubators buckle under Verb 1. buckle under - consent reluctantly knuckle under, succumb, give in, yield consent, go for, accept - give an affirmative reply to; respond favorably to; "I cannot accept your invitation"; "I go for this resolution" the realistic demands of the marketplace. EC2 now boasts eight graduate occupants, solid companies with significant revenues, and accepted six new companies in 2000. This veteran incubator, which provides resources for new media, communications and technology startup companies, has proven its non-profit business model is sustainable in a tumultuous business environment. "We give our companies time to grow -- to focus on intelligently developing their technology, products and business strategy -- not an IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. ," said Dr. Jon Goodman Jon Goodman (born 2 June 1971 in Walthamstow, England) is a former professional footballer, and was the Sports Scientist at Reading Football Club before leaving to concentrate on his consultancy business. , EC2's executive director. "Like the tortoise and the hare, the success of this business model proves that the smartest company to market outlasts the fastest company to market." Founded in 1995, EC2 is the nation's oldest Internet incubator, and has assisted companies involved in entertainment, software development, and hardware design. EC2 is a full-service incubator, providing office space, data storage, communications, multimedia production facilities, consulting, service providers and access to world-class expertise and guidance. "We provide more than just room and board; we provide unprecedented knowledge capital," noted Goodman. "Scientists, academics, noted experts from around the world, as well as business and thought leaders are active mentors to our companies. "Conversely, the for-profit incubator must rely on a network of venture capitalist Venture Capitalist An investor who provides capital to either start-up ventures or support small companies who wish to expand but do not have access to public funding. Notes: Venture capitalists usually expect higher returns for the additional risks taken. and service providers, who can be wise financial counselors but not necessarily people to turn to for insights into technology and society." EC2 has a specific knowledge focus -- new media. It has a secondary regional economic development mission. The EC2 incubator business model was devised to complement USC's Annenberg Center for Communications -- a think thank that identifies and explores ways in which communication technology affects education, law, science, engineering, health care, arts, entertainment and politics. While some large for-profit incubators have failed in 2000, EC2 has accomplished significant milestones. In July, El Puente Latino acquired EC2 occupant company SuCalle.com, a Spanish language Internet service. Mixx Entertainment, which graduated from EC2 in March, acquired $5 million in equity financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. from Japanese-headquartered Softbank in October. Dr. Nina Wakeford, an EC2 researcher, received $900,000 from Sapient sa·pi·ent adj. Having great wisdom and discernment. [Middle English, from Old French, from Latin sapi and Intel to study mobile communications design and content. |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion