Incubator Case Study

Launch a new business incubator based on lean start-up principals.

Problem: A critical "social capital deficit" existed in Chicago, where first-time founders lack direct access to strategic networks, experienced mentors, and specialized legal or financial guidance. Complex regulatory hurdles, ‘red tape’ and lack of mentoring adds to the complexity of building a repeatable process for entrepreneurs to utilize.

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Key Findings

The Funding-Mentorship Link: There is a direct correlation between mentorship and capital; minority founders who lack warm introductions are disproportionately forced to rely on "cold outreach," which has a significantly lower success rate for securing venture funding.

Solution

Create a warm mentorship program co-located within easy reach of existing businesses. Build a mentor matching program based on goal alignment and specific local experience and connections. Host demo days and networking events to include both business and municipal human resources to build excitement and expertise for program entrepreneur participants. Design and circulate a mentorship guidebook to ensure the basics are understood by all participants and to build on lessons learned.

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