Tech Talk: Don’t Miss Out on inX3 Extravaganza

What is one of the biggest challenges for Indiana’s technology and innovation communities? Many would agree that it’s securing the needed venture capital to take promising start-ups to the next level.

What is a new event to try and overcome that hurdle? It’s inX3 and it’s coming in just two weeks – June 13-16.

inX3 stands for inspire, innovate and invest. Indiana’s leading tech organizations are coordinating a series of events that will bring together entrepreneurs, venture capitalists and investors. And most of the action takes place at The Union 525 space in downtown Indianapolis.

A special Almost Fail Entrepreneur Reception celebration kicks off the week, which concludes with the next in a series of Indy Civic Hack programs. The two middle days feature a variety of programs – Pitch Competition Finals, Invest Indiana Forum and much more – as well as an AT&T Street Party on June 14.

There’s something for everyone at inX3. Details are on the web site, with app updates available through iTunes and GooglePlay.

inX3 asks the simple question: Are you in? The answer should be equally clear: Y-E-S.

Tech Talk: Sapp Moving But Not Going Away

By now, many of you have seen the stories and video (Inside INdiana Business interview) about Dustin Sapp. The Rose-Hulman Institute of Technology grad and Indiana tech leader for more than 15 years is moving to Colorado (for health reasons) but has also taken on a new role with Indianapolis-based Formstack.

Sapp was honored as the first Indiana Vision 2025 Dynamic Leader of the Year when the Chamber instituted the award in 2015. It was based on his business creation efforts – NoInk Communications, Vontoo and TinderBox (now Octiv) – and his contributions in giving back and helping grow the tech community.

Here are a few excerpts from our Dynamic Leader of the Year profile in BizVoice® magazine.

  • On founding a business: “Starting a company is a lot harder than people make it out to be. You can go to an event and it’s all about the energy and the excitement, but they don’t talk about the difficulty. Especially when you first begin – you’re the boss and the employee and the one making the coffee and the custodian and the accountant. It’s often a very lonely job.”
  • On priorities and why work should not be No. 1: “When it comes to burnout, a pattern we see is that it’s most often those who are the most career-driven. They pour everything they have into career, and it’s all that exists for them. So a requirement that I have for people is that they have something that’s more important than this business in their lives. For me, it’s straightforward: it’s my God and it’s my family.”
  • On the tech scene in central Indiana: “Indianapolis has always had the right attitude about the ‘rising tide,’ but now as you list the successes, you have a second level of talent investing back into the ecosystem, starting and joining other companies in earlier stages. We’re seeing a magical moment. Now our biggest gap is in getting a number of $20-$30 million companies, not just one or two. We need that middle tier, not just big successes and early stage start-ups.”

Profound words 18 months ago – and today. Dustin, thanks for everything you have done thus far and will continue to do for your team and our state. We wish you nothing but the best.

Nominations close June 16 for the 2017 Dynamic Leader of the Year award. The winner is selected based on success within their own organization, as well as their efforts to grow the state’s technology and innovation communities. Contact Jesse Brothers at jbrothers@indianachamber.com for more information.

A Clearer Path for Indiana’s Innovation Sector

Last summer, the Indiana Chamber formed the Indiana Technology & Innovation Council. A large part of the group’s mission it to protect and advance the public policy interests of related organizations. The Indiana Technology & Innovation Council’s Tech Policy Committee developed an agenda going into the 2017 session with several significant objectives.

We are happy to report – thanks to the work of many – that the group’s first legislative session proved to be highly productive and rewarding, with several key policies to advance innovation, technology and entrepreneurship in Indiana set to become law.

These include enhancing early-stage and scale-up funding for promising Indiana business opportunities, an increased focus on innovation and entrepreneurship, better digital and physical connectivity with other parts of the world, funding for better use of big data and providing funding mechanisms to enhance regional infrastructure projects.

Management and Performance Hub Information Holds Promise
Indiana has been a leader in using government data to improve the delivery of services to its citizens. The Management and Performance Hub (MPH) is an evolving integrated data system that links government agency data and allows for data-driven analytics and research, which can help inform policy and improve the delivery of government services to come from that information. House Bill 1470, Government Data, authored by Rep. David Ober (R-Albion), was the main vehicle to codify the MPH and ensure it has maximum utility for taxpayers, government agencies, the Legislature and other external stakeholders.

The measure started off smoothly, but when it got to the Senate, it was derailed during a hearing before the Senate Commerce and Technology Committee. Based on fear that the information would not be secure or de-identified, the committee amended it to be only a summer study committee issue. Fortunately, the original content was restored by Sen. Brandt Hershman (R-Buck Creek), the bill’s sponsor, on the Senate floor. The Chamber has supported HB 1470 to maximize its utility as a consistent data source and analytical tool for a variety of public issues with multiple stakeholders.

Fortunately, the budget bill, HB 1001, authored by Rep. Tim Brown (R-Crawfordsville) ended up providing good resources to the MPH –$9 million per year for the next two years. This allows MPH the ability to continue to develop to provide timely and accurate information that can help track vital information for the state’s economy, education and a host of other matters where better data can help inform better decisions.

Municipalities Work to Hinder Small Cell Legislation, But It Passes
A bill to more easily move Indiana’s mobile broadband connectivity to the next generation of technology passed the Indiana General Assembly. Senate Bill 213, Wireless Support Structures, authored by Sen. Hershman, focused on streamlining permitting, fees and co-location to increase coverage by current cell towers and facilitate more rapid installation of small cell technology in Indiana communities.

Specifically, an objective was to eliminate excess fees and permitting by local units of government that would hinder installation of small cell antennas. A lot of misinformation was communicated by detractors to say many of the antennas were the size of a refrigerator or Volkswagen, when, in fact, they are much smaller. It is in the providers’ economic interest to co-locate small cell antennas on current towers, light poles or other structures.

This legislation also highlighted an interesting dynamic: Many municipalities who want better broadband in their communities as an economic development tool also want a “say” in the small cell tower locations and to be able to collect fees and issue permits. And those desires are quite strong.

Case in point: There is a provision in the bill that allows Indiana communities to designate local ordinances (and possibly resolutions) to direct where and how those small cell devices can be put in their community by making them an underground or buried utility area. The deadline for seeking this additional protection was May 1. Realizing this, Accelerate Indiana Municipalities (AIM) sent information to its members around the state to quickly pass an ordinance or resolution by that date. Almost 100 locales were considering doing so. But that move may backfire on these same communities whose citizens want
better broadband. What’s more, whether those new ordinances are legal remains to be seen.

The Chamber supports more and better broadband for Indiana and strongly advocated for SB 213 during the process. We appreciate the hard work of Sen. Hershman and Rep. Ober in getting this legislation over the finish line.

Major Tech, Innovation and Entrepreneurship Progress
Several tech innovation issues ended up advancing in the state biennial budget, HB 1001, authored by Rep. Tim Brown.

A Chamber priority was to increase early stage capital in promising Indiana companies. While making the Venture Capital Investment (VCI) Tax Credit transferrable (to attract out-of-state investment to Indiana) didn’t happen, it arguably worked out even better with the creation of the $250 million Next Level Trust Fund. This allows for up to half of the $500 million corpus from the Major Moves highway infrastructure program to be used for investments outside of conservative fixed income investments. It creates a Next Level Indiana Fund investment board with fiduciary responsibility to direct investments in equities or “funds of funds” which could be directed toward promising Indiana businesses.

In addition to the Next Level Trust Fund, legislators adopted options for Indiana public employees and teachers with defined contribution plans to invest up to 20% of their contributions in an Indiana-focused fund.

This summer, the Legislative Services Agency is conducting a deep study of the impact of the VCI. That report is due in October 2017 and based on information that comes from that report, we hope to better advocate for the enhancement of the tax credit during the 2018 session, if warranted. In SB 507, authored by Sen. Randy Head (R-Logansport), the expiration date of the VCI tax credit of 2020 was eliminated so the tax credit now has more certainty for the future.

House Bill 1001 also funded $30 million for the 21st Century Research and Technology Fund. Additionally, $15 million for each of the next two years was allocated for the Business Promotion and Innovation Fund, which combined several requests. It gives authority to the Governor and the Indiana Economic Development Corporation (IEDC) to incentivize direct flights from international and regional airports in Indiana, encourage regional development activities (aka Regional Cities), advance innovation and entrepreneurship education programs through strategic partnerships and support international trade.

The Indiana Biosciences Research Institute was funded for $20 million for year two of the budget. This should pay dividends down the road to further grow Indiana life sciences opportunities.

Better Performance Metrics to Recertify Technology Parks
Certified technology parks (CTPs) around the state will benefit from House Bill 1601, authored by Rep. Todd Huston (R-Fishers). The bill requires IEDC to develop new metrics for performance of CTPs as they are up for recertification.

The IEDC will work with local units of government to develop the metrics. They will include the criteria used to evaluate each category of information by a CTP and a minimum threshold requirement to be recertified in each category.

This is good for both state and local governments to ensure the CTPs are truly being an effective driver of economic activity for that community and region. The bill did not receive any no votes during the legislative process and was supported in a bipartisan fashion. The Chamber backed the bill and appreciates the good work that Rep. Huston and Sen. Hershman, the Senate sponsor, did to ensure its passage.

Talking Technology at Connect & Collaborate Sessions

“Today, every company is a technology company. We know technology is evolving quickly and not just in current businesses, but those that are looking to make their mark in Indiana,” says Brock Hesler, Indiana Chamber director of membership.

“If you don’t evolve, you could be left behind and your business growth might be hindered.”

The Indiana Chamber is once again hosting the Connect & Collaborate series as a thank you to its members and investors. The 2017 focus is technology – how it is permeating Hoosier businesses, and how companies can learn and adapt to new and improved ways of getting things done. Presented by AT&T, the series begins in May and concludes in August.

Consider these examples from the world of agriculture. What if technology could provide an answer to how much moisture is in a stalk of corn or a field of beans? What if farmers could drive tractors from a remote location or control an entire farm from a keyboard?

These scenarios sound futuristic, but are starting to become reality around Indiana. It’s not just the agriculture industry that is heavily impacted by new technologies: advanced manufacturing, logistics and others are already changing dramatically – as are the workforce skills required to staff these industries.

Attendees can hear an update on the Indiana Technology & Innovation Council, and a local business/community leader from each of the 12 Connect & Collaborate locations will comment on how that area or region is utilizing technology. A panel discussion will also allow for audience questions.

The free series – with either breakfast or lunch included (depending on the time of day) – enables companies to hear directly from Indiana Chamber representatives and learn more about membership resources available to them. Several new locations are included in 2017.

“This is a way to thank our members for their investment and support,” Hesler adds, “while also providing information that we think can help them succeed at an even higher level.”

Dates and cities for the Connect & Collaborate series:

May 9, Indianapolis
May 11, Lafayette
May 30, Bloomington and Columbus
June 6, Huntingburg and Evansville
June 8, Muncie and Richmond
June 13, Terre Haute
June 20, South Bend
June 22, Fort Wayne
August 16, Scottsburg

For complete details on locations and to register, go online or call Nick at (317) 264-6885.

Mixed Bag With Tech, Entrepreneurship and Innovation Priorities in Senate Budget

The long-awaited announcement of the Senate initial version of the budget came late
last week. In it, there are several technology-related issues that were either included or dropped from the bill, as well as some funding amounts also reduced from the House version:

  • Transferability of the Venture Capital Tax Credit was deleted. The Chamber would like to see it included to increase the flow of venture capital funds for promising qualified businesses.
  • Funding of the 21 Fund (21st Century Research and Development Fund) remains at $20 million a year. The Chamber prefers $30 million a year.
  • Funding to backstop the initiation of direct flights to Europe was reinstated, although it is $4 million rather than $10 million over the two years. A good start.
  • Funding for the Management Performance Hub (MPH) was reduced to $6 million for two years, which is less than what the House reduced from the Governor’s original amount.
  • Keeps $20 million for the two years for the Indiana Biosciences Research Institute
  • Removed the Next Level Trust Fund, which would have provided investment guidelines and supervision to direct a portion of the Major Moves Trust Fund to invest in promising Indiana opportunities.
  • It allocates $1 million for the biennium for the Launch Indiana program.

We will work to keep the things we like in the bill and try to restore other items that were reduced or removed as it advances through the Senate and goes to conference committee. The Chamber will continue to educate legislators on these important economic development priorities currently in the bill.

Many Tech, Entrepreneurship and Innovation Priorities Remain in Budget Bill

The House Republicans’ budget priorities were recently announced, as HB 1001 goes from the Governor’s initial budget priorities to more in-depth House consideration. The Chamber was glad to see several technology and innovation priorities in the bill including:

  • Makes the Venture Capital Tax Credit transferrable to people who don’t have Indiana tax liability. It also removes the 2021 expiration date of the tax credit, which helps enhance certainty
  • Several parts of the $1 billion over 10 years for innovation and entrepreneurship plan:
    • It caps the amount of the Next Level Trust Fund that can be invested in Indiana businesses to 50% of that $500 million fund. It still appoints a board of trustees to oversee the investment policy of the fund
    • Has $20 million over the two years for the Indiana Biosciences Research Institute
    • Due to budget pressure, it reduced the 21st Century Research and Development Fund by $10 million per year to $20 million per year
    • It allocates $1 million for the biennium for the Launch Indiana program

We expect many changes in HB 1001 as it advances through the legislature. The Chamber will continue to educate legislators on these important economic development priorities currently in the bill and why they need to remain.

House Off to Fast Tech Start

A brief update on some tech/innovation legislation at the federal level, courtesy of the Chamber Technology Engagement Center.

Women will play an important role in the 21st century workforce. Congress recognized that this week when it passed the INSPIRE Women Act (H.R. 321) to recruit women into STEM fields and encourage their research and work in technology.

With the HALOS Act (H.R. 79), the House removed an important burden to allow for angel investors to support start-ups – a huge growth sector in our economy.

Thanks to the Modernizing Government Travel Act (H.R. 274), government employees will soon be able to travel smarter and more cost effectively, saving taxpayer money thanks to a bill modernizing work travel.

Lastly, with the Support for Rapid Innovation Act of 2017 (H.R. 239), the Department of Homeland Security is now a few steps closer to being able to utilize the best and brightest within agencies and industries to help combat the ever-growing cyber security threats to both government and business.

Indiana Technology and Innovation Council Moving Forward

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The Indiana Chamber announced the creation of the Technology and Innovation Council earlier this summer. The goal of the group is to leverage the Chamber’s statewide presence and ability to convene leaders and partners so we can enhance the growth of innovation, entrepreneurship and technology in Indiana with forward-thinking public policies and relevant programming.

Below is an update on the main aspects of the program:

Tech Policy Committee
This committee is in the process of working with leaders of various technology and innovation entities to develop the Chamber’s technology and innovation policy agenda. While many of the policies are updating current policies, such as venture capital incentives, new subject areas are being carefully considered. The committee chairman is John McDonald with CloudOne and vice chairman is Bill Soards with AT&T.

After the committee does its work over the next month, the tech policy agenda for the 2017 legislative session will be affirmed by the Chamber board this November. It will be publically announced at our Technology and Innovation Policy Luncheon on Thursday, December 15.

We hope to augment Indiana’s strong business climate with a renewed focus to better meet the needs of innovators, entrepreneurs and technology-oriented enterprises.

Programs and Trends Committee
Work is underway by this committee to think through what additional programming and information can help accelerate the growth of Indiana’s innovation and technology companies. Indiana has many excellent programs going on around the state and we hope to better connect the dots through the work of this committee. The chairman is John Wechsler of Launch Fishers and vice chair is Kristin Marcuccilli of STAR Financial Bank.

Already, the Chamber has enhanced its technology and innovation communication efforts through its BizVoice magazine and with Chamber members and customers through frequent email communications. It has created the web site, Indiana Chamber Tech, to provide relevant and useful information. Other activities being planned include a technology/innovation road show, a series of peer-to-peer lunch events and an innovation summit. The goal is to help better inform stakeholders around the state with useful programming and information relative to our future economy.

A Worthy Read
One of the most interesting white papers on business I have read recently includes this excellent paper from the Kauffman Foundation titled, A Tale of Two Entrepreneurs. It talks about two different types of businesses (we need both) and some important differences in fostering economic growth. I hope you take a few minutes to read it.

Please contact me directly to learn more about the Tech Council or sign up now.

TECH THURSDAY: Innovation ‘Critical Part’ of Kosciusko Brand

k countyEDITOR’S NOTE: BizVoice® has featured technology/innovation stories throughout its 18-year history. Look for these flashbacks each Thursday. Here is a 2015 favorite.

George Robertson wanted to know the answer to a pretty significant question: “Why is a small city in Northern Indiana (Warsaw) the Orthopedic Capital of the World?”

When Robertson came on board five years ago as the first fulltime executive director of the Kosciusko Economic Development Corporation (KEDCo), he began researching but didn’t have to look far to determine the answer.

“You see it in the stories of the companies, DePuy Synthes, Zimmer Biomet and Dane Miller (founder of Biomet). You see a trend of innovation and entrepreneurship. … Why is one of the largest automated material handling companies – CTB Inc. – in Milford? It’s entrepreneurship and innovation. And it just struck me that that was a critical part of our brand,” he emphasizes.

Read the full story online.

And learn more about the Indiana Chamber’s new Technology & Innovation Council. Our first meeting was earlier this month, and was well-attended. Want to participate? Contact Mark Lawrance at mlawrance(at)indianachamber.com.

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