The Obama Administration has launched a two-pronged initiative dubbed Startup America to boost high-growth entrepreneurship in the U.S. The initiative includes government programs as well as private-sector efforts to train, mentor, and fund entrepreneurs. The private-sector efforts will be coordinated by the Startup America Partnership, chaired by Steve Case, co-founder of AOL and CEO of Revolution LLC. Initial funding for the partnership will come from Case’s foundation and the Kauffman Foundation of Kansas City, MO. The partnership will replicate community-based programs that help entrepreneurial companies to grow, expand entrepreneurship education programs, and increase commercialization of university research.

The Obama Administration, meanwhile, announced a series of government programs aimed at boosting entrepreneurship. The President proposed permanently eliminating capital gains taxes on long-term investments in small businesses. Over the next five years, the U.S. Small Business Administration will use $1 billion to match investments by small business investment companies in clean energy companies and in companies located in underserved communities, such as inner cities and rural America. The SBA also will match $1 billion in private capital raised by SBICs for early-stage investments, aimed at helping early-stage companies to cross the Valley of Death.

In addition, the USPTO will offer entrepreneurs the option to pay a little extra for fast-track approval of patents, which will help companies seeking venture capital. (See eNews item above.) And the U.S. Department of Energy will team with the SBA to provide funding to four private-sector mentorship programs that will support an additional 100 clean energy start-ups across the country.

Startup America also wants to boost commercialization efforts at colleges and universities — a critical component of any move to spur innovation, according to W. Mark Crowell, executive director and associate vice president for innovation partnerships and commercialization at the University of Virginia. “It’s too early to tell whether or not Startup America is a gimmick or a savior,” Crowell says. “What I’m seeing are lots of good ideas and two wonderful partners — the Case and Kauffman Foundations — that have the potential to raise awareness of our need for innovation. I would feel even more confident in Startup America’s chances for success had I seen more inclusion of universities at the outset.”

Sources: South Florida Business Journal and E-Commerce News

Posted February 9th, 2011 under Tech Transfer

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