University Incubators Are Becoming Micro Silicon Valleys

The Advanced Technology Development Center (ATDC) at Georgia Tech, is one of the better known university technology accelerators and has helped launch more than 120 startups. Combined, these companies have raised over a billion dollars in outside funding and produced millions in revenues. However, it's not the only incubator that's seen success at Georgia Tech. The Georgia Tech VentureLab also helps companies spinout of the university and commercialize cutting-edge research. They've launched over 150 more Georgia-based startups that utilize university IP.

There is clearly a trend here. Incubators that are built on campuses produce an ideal breeding ground for companies because it's surrounding ecosystem contains many of the resources required to start a company; technology, industry experts, scientists, researchers, business minds, young energetic entrepreneurs, research grants, and legal advice from tech transfer offices.

Are these university incubators becoming micro Silicon Valleys? 

I say Silicon Valley and not venture capital firms because the investing and startup landscape is changing. Stephen Fleming, vice provost at Georgia Tech, explains that "the startup market has changed over the past few years. Many startup companies do not want or need to pursue venture funding. Some are not even seeking traditional office space. ATDC's new initiatives directly address the demands of today's startup environment."

If they were focused on becoming more like venture capital firms, they'd be focused more on supplying funds. But Georgia Tech is going further than that and focusing on what may be more important - the entrepreneurial ecosystem.

Originally, ATDC was only open to Georgia Tech. Now they've announced they're opening their doors to any Georgia entrepreneur, whether its a startup in early conception, or one that's more established and ready to take on venture funding. By pooling resources, increasing staff, and merging with Georgia Tech's VentureLab and the georgia SBIR Assistance Program, they aim to increase their capacity and number of startups they can launch each year.

David Sung, one of ATDC's startup catalyst and a former partner at H.I.G. Ventures, explains that "there are many ways ATDC can help startups, from business coaching and providing networking opportunities to financing through angel investment, government grants and contracts, corporate partnerships, and classic bootstrapping. We will support all entrepreneurs, whatever path they may take, through their entire growth process.”

Georgia Tech is becoming a perfect model of a micro ecosystem that supports innovation and conception of startups similar to the environment of Silicon Valley.

Here are 5 several reasons why:

1. SeedSpace: According to the press release, "The center will be expanding its recent "SeedSpace" offering of small single-office leases in Technology Square for the earliest entreprneeurs and will provide a variety of co-working spaces to promote casual interaction among entrepreneurs."

2. Experience: Roberto Casas, a previous assistance director of Georgia Tech's VentureLab, explains: "By working at the very earliest stage with unviersity spinouts-not just pre-revenue but pre-incorporation-we have learned a great deal about the coaching required by brand-new entrepreneurial teams that are still establishing their business model."

3. Funding: The SBIR Assistance Program of Georgia (part of the VentureLab) has already helped hundreds of Georgia entrepreneurs obtain more than $30 million in federal awards. Now only is this experience important on the funding level, but it also helps entrepreneurs interact with state and local governemnts. This interaction is important for entrepreneurs who need to work with regulators and keep their technologies within compliance regulations and laws. The VentureLab also has $400 million in research funding.

4. Knowledge: The incubator is surrounded by the university, a seemlingly never ending supply of academics, research, technology, information, etc. By combining all three units, it'll help "broaden its knowledge base to provide comprehensive services to Georgia's technology entrepreneurs."

5. Recruiting: There's plenty of experienced professionals on campus; scientists, researchers, academics, professors who've started their own companies, industry experts, and a pool of students who are eager to get involved in startups or start their own.