Hartford Business Journal

8 Hartford Business Journal • August 8, 2016 www.HartfordBusiness.com FOCUS STARTUPS AND ENTREPRENEURS Entrepreneurial networking groups fuel CT's startup culture By Matthew Broderick Special to the Hartford Business Journal L ate last month, Tom and Lelaneia Dubay, co-founders of Hartford Flavor Company — a liqueur startup two-and- a-half years in the making — hosted a crowd at its public tasting room. In part, the event was designed, says Lelaneia, to make people aware of the company, the facility and its Wild Moon product line. But it also served a larger purpose: Hosting a Startup Hartford event to bring entrepreneurs together to share ideas, connections and encouragement. "It is great to see the camaraderie of local startups with everyone helping each other," Lelaneia said. "It will make it a bit easier for var- ious [startup] organizations to be successful." As Connecticut puts more focus on attracting and supporting startups, the state has begun to see the emergence of startup specific networking organizations, like Start- up Hartford. The organization, launched this past March, is designed to provide once-a- month networking events tailored to the unique needs and challenges of startups. "Connecticut has a lot of [networking] events for small businesses, but I was looking for some- thing more niche, geared towards startups," said Angelina Capalbo, founder of Startup Hartford, who — in addition to a full-time job and trying to launch her own business — inthemomknow. com — spends several hours a month planning the organization's events. Startup Hartford's events to date, says Capalbo, have drawn around 30 people each month — a broad demographic mix in all startup stages — from app developers to natural bever- age companies. "Our events are not about exchanging business cards," she said. "It's about connecting with like-minded startups and entrepreneurs." Tom Dubay of Hartford Flavor Company says social media channels like Facebook — which Startup Hart- ford uses to promote its events — and LinkedIn have made it easier for grassroots organizations to better connect startup companies. And those networking opportunities are not simply about encouragement — they're also about problem solving and advice, Dubay said. Having worked through a year of permitting issues to open the company's public tasting room last Novem- ber, while also working to get Wild Moon liqueurs into almost 500 restaurants and liquor stores in Connecti- cut, Dubay said he's learned many lessons to share with other local entrepreneurs. "Do the research to make sure whatever goods or services you are delivering are indeed needed," Dubay said. "And spend a lot of time working on — and have others review — your business plan. It's better to have [your business] fail on the drawing board and not after spending money and resources on it." David Menard, a partner at the Hartford law firm Murtha Cullina, agrees. "I think entrepreneurs need to first find subject-matter experts," Menard said. "Many don't understand customer research or have financial or marketing knowledge to prepare a good business plan." He said his firm runs a free business education lunch series in Hartford and New Haven and also puts together a handful of pitch nights annually for entrepreneurs to gain experi- ence in public speaking, testing out their business pitch and getting feedback from experienced judges. April Lukasik, founder and owner of Bright & Early Children's Learning Centers, knows firsthand how valuable outside feedback can be. Today, her 20-year- old company has locations across Connecticut and is thriving, but Lukasik recalls the struggles and isolation of starting out. "I operated in a bubble and didn't even realize what I was building," she said. "There was no one to say 'good job' or 'great idea.' " But she developed an instant network, she says, when she was recruited to join the Connecticut Chapter of Entrepreneur's Organization (EO), a member-based global peer-to-peer network, which offers forums to entrepreneurs and small business owners as well access to national speakers and experts. "EO's monthly 'think tank' forums [which provide confidential peer- to-peer problem solving in small group settings] have been instrumental in my [company's] growth," Lukasik said. "They gave me tools I didn't even know I needed." In 2016, networking events are crucial to both the professional and personal growth of entrepreneurs, Lukasik said. "These startup networking organizations provide a space through which ideas can bounce back and forth instantly," she said. And market demand for startup connections is fuel- ing growth among networking organizations in the state. EO Connecticut, for instance, has seen its membership — which costs about $3,500 a year and requires that members generate a minimum of $1 million in annual revenue — grow from 27 in 2012 to 44 today, according to Sal Giuliano, the volunteer president of the Connecti- cut Chapter and managing member of West-Hartford CPA firm GitlinCampisePrendergast LLC. Giuliano says EO Connecticut is looking to add 10 new members in the coming year. "Networking can make you think about [your business] differently," he said. "It's better to learn from others mistakes than make 10 different ones on your own." It's a culture that Tom and Lelaneia Dubay hope con- tinues to take root in Connecticut. Tom would like to see easier access to capital to fuel initial stages, repurpos- ing empty manufacturing and office spaces for startups and connecting startups with interns from the state's colleges and universities. "If we see a concerted effort from the business com- munity, lending institutions and higher education to get behind startups," Tom Dubay said, "Connecticut has a very good chance to become a leader in fostering small, innovative companies." n Q&A Communities compete for CT's innovation places Q&A talks with Glendowlyn L.H. Thames, director of small business innovation and CTNext, about the inception of innovation places, which aim to create a more vibrant startup culture in Connecticut. Q: Connecticut Innova- tions is out with a new program called "innovation places." What is it and who is the program tar- geted towards? A: Innovation places seek to support entre- preneurs and leaders developing places that will attract the talent high-growth enterpris- es need. It is a five-year, $30 million program that will provide fund- ing for entities that support innovation and entrepreneurship in their communities and/or regions and cre- ate a common vision, strategy and plan to make their commu- nity a sought-after location for people and companies. Q: What's the general phi- losophy behind "magnets for talent?" Do these hubs prove more effective for building net- works that produce more jobs? A: According to Enrico Moret- ti's, "The New Geography of Jobs," research supports the general idea that cities are more than "just a col- lection of individuals." Rather, they are "complex, interrelated environ- ments that foster the generation of new ideas and new ways of doing business." Innovation places set out to embrace that idea and cre- ate the vibrant environments that attract and retain quality talent. Q: Are there ways programs like these can be done without public seed money? Granted, it's not a large amount of funds, but why isn't the private sector, maybe in the form of chambers of commerce, getting behind programs like this? A: This program will not reach its full potential unless there is private-sector involvement. In all successful entrepreneur communi- ties, the private sector plays a big role. There will be the opportunity to encourage participation from the private sector through financing, developing a master vision, mentor- ing and other collaborative efforts. In addition, in most successful innovation hubs, the public sector has played a big role. In Silicon Val- ley and Boston, defense funding for public, private and university research and development pro- vided the core from which the tech community grew. In New York City, the Bloomberg administration pulled together the people, resourc- es and strategy to diversify the city's economy from finance and fashion into technology and entrepreneurship. In Raleigh-Durham, the public investment in Research Triangle Park was crucial to its growth. We welcome the private sector to take the lead. In some plac- es it has. Ideally, this invest- ment will bring together the right play- ers and resources so private leaders will be inspired to invest more energy and additional funds in Connecticut's e n t r e p r e n e u r s h i p communities around a common vision. Q: One of the aspects of the program is to attract anchor institutions. What's an exam- ple? Are they similar to anchor stores in malls? A: An anchor institution can be a large organization, hospital, university or cultural institution to name a few. Anchor institutions attract highly skilled people whose work, ideas, participation in the community, and spending improve the local economy and attract more business and talent to the area. Q: Is any preference being given to where these magnets for talent would be set up? Are you focusing on mostly urban areas like Hartford, New Haven and Bridgeport for these centers? A: The legislation outlines den- sity and walkability as priorities in the innovation places program because it increases the odds of running into people who can share ideas, networks and resources that allow for increased innovation. It also emphasized the importance of proximity to amenities such as public transportation, restaurants, affordable housing and retail spac- es. Though these resources often occur in urban settings, smaller cities are encouraged to apply if they have a compelling case to make about the existing entrepre- neurial and innovation activity in the community and their ability to attract more talent. GLENDOWLYN L.H. THAMES Director of small business innovation and CTNext Tom and Lelaneia Dubay, co-founders of Hartford Flavor Company, have played host to a Startup Hartford networking event, which aims to improve the region's startup culture. Continued P H O T O | H B J F I L E

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