Hartford Business Journal

8 Hartford Business Journal | April 5, 2021 | HartfordBusiness.com COVID-19 disrupts Hartford's startup efforts By Sean Teehan steehan@hartfordbusiness.com D isruption is a common theme in the tech industry. And that's precisely the impact COVID-19 has had on Hartford's fledgling efforts to develop a startup ecosystem — particularly on accelerator programs that have brought dozens of early-stage companies to the city in recent years with hopes they will stay and grow here. In fact, Startupbootcamp, the London-based company that was hired to run two Hartford accelerator programs focused on grooming insurance and healthcare firms, has essentially left the market, leading some to worry about what's next for the region's efforts to cultivate a vibrant startup scene. But others aren't ringing the alarm bells just yet, arguing that while COVID-19 may have limited opportunities to physically bring new startups to Hartford, there are plenty of ongoing efforts to make the city more attractive to innovative early-stage companies. They also say that accelerator programs, while important cogs in a startup ecosystem, aren't necessarily the whole machine. "I think we learned a lot of lessons through hosting [Startupbootcamp]," said Michelle Cote, director of Launch[H]artford, a nonprofit that works as a go-between for startups, government officials and corporations in the city. "I think our partner companies have become much more sophisticated in their ability to host innovation activity." Cote said Startupbootcamp served its purpose, and was a good way for Hartford to distinguish itself as a place where people are serious about creating an innovation economy. But she added the accelerator model isn't the only way to accomplish this. Cote said Launch[H]artford is currently working on a significant program to bolster the city's entrepreneurial efforts that will be unveiled later this month. She declined to provide further details. Economic 'engines' Startup accelerators have been around for years, largely getting their start in tech havens like Silicon Valley and Boston. Each program can differ somewhat but they all essentially provide education, mentorship, financing and/or office space to early- stage companies, typically over the course of several months. The goal for host cities is to get some of those startups to relocate there and eventually add jobs and economic activity. Startupbootcamp's arrival in Hartford was heralded as a major win for the city. It first entered Connecticut in 2017 to run the state's inaugural insurtech accelerator (Hartford InsurTech Hub), which lasted for three years until its final cohort finished amid the pandemic in May, 2020. It was also tapped to run a medical technology accelerator — in partnership with Hartford HealthCare, Trinity College and the UConn School of Business — that was announced in 2019 and ran for one session. Dawn LeBlanc, managing director of the Hartford InsurTech Hub, said Startupbootcamp made a decision to largely put aside its U.S. efforts and focus on other countries where it operates, although it still plans to continue an all-virtual program — called Hartford InsurTech Hub 2.0 — that matches mature startups with insurers, including some based in Connecticut. Shana Schlossberg, CEO and founder of downtown coworking and incubator space Upward, said Startupbootcamp's exit from the two accelerators should serve as a warning that the burgeoning startup community that gained momentum in the three years leading up to the pandemic could fizzle without increased support and public funding. "We all got slapped in the face by COVID, and now we kind of have to go back to 2017, actually invest more and give more to these [accelerators] so they can make up the lost time," said Schlossberg, who also runs an accelerator called Upward Labs that focuses on grooming smart building and senior care technology. "How can we go backwards now? We need to continue promoting this city around the world." The state is focused on building up Hartford as an attractive place for entrepreneurs, said David Lehman, commissioner of the Department of Economic and Community Development (DECD). Lehman praised accelerator programs for bringing startups to Hartford, and promoting the city as a desirable place to do business. The state has financially supported several of these programs in recent years, including about $7 million in funding from DECD and Connecticut Innovations — the state's quasi- public venture capital arm — to Upward and Upward Labs, Lehman said. One possible source of additional support could come from the federal government's American Rescue Plan, which will bring billions of dollars in COVID-19 relief to Connecticut. Some of that money should go toward promoting startups, Lehman said. But that doesn't necessarily mean direct funding to accelerators or coworking spaces. "There's not a magic bullet here other than sound policy and continuing to lean into the workforce and make it easy to start these businesses," Lehman said. "Silicon Valley was happening before the era of WeWork and Upward Hartford, as was Cambridge, so I think it's more than just the accelerator." The startup accelerators that Startups, Innovation & Technology Michelle Cote Startup founders participate in a strategy session during a pre-COVID Hartford InsurTech Hub accelerator program in downtown Hartford. PHOTO | CONTRIBUTED Shana Schlossberg

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