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CITY OF GLENDALE, CALIFORNIA
REPORT TO THE SPECIAL CITY COUNCIL
AGENDA ITEM
Report: Acceptance of state funds from the State of California Governor’s Office of Economic Development; and Authorization to Negotiate with Up to Two Tech Startup Growth Program Proposer(s) to Develop and Implement the Startup Growth Program(s)
1. Council Motion approving acceptance of state funds in the amount of $1,000,000 from the State of California Governor’s Office of Business and Economic Development (GO-BIZ).
2. Council Resolution of Appropriation in the amount of $1,000,000 for the Glendale Tech Startup Growth Program(s).
3. Council Motion authorizing the City Manager or designee to negotiate and execute professional services agreements and all related documents with FoundersBoost and SmartGateVC LLC for the operation and program management of Tech Startup Growth Programs located in Glendale.
COUNCIL ACTION
Item Type: Action Item
Approved for October 8, 2024 calendar
EXECUTIVE SUMMARY
Since the adoption of the Glendale Tech Strategy in 2017, the Economic Development Division has effectively launched programs and events focused on advancing the local startup and innovation ecosystem.
To further support the tech community, the city received a $1 million grant in 2019 from the State of California’s Office of Business and Economic Development (GO-BIZ), secured by Senator Anthony Portantino. In 2024, the city was awarded a second $1 million grant from GO-BIZ, again through Senator Portantino’s efforts. This funding will continue to foster tech-focused initiatives within the city and support the creation or expansion of tech startup studios, incubators, and/or business accelerator programs in Glendale.
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On May 15, 2024, the city released a Request for Proposal (RFP) seeking operators to lead tech startup growth programs aimed at accelerating the city’s tech industry, with submissions due by July 12, 2024.
In response, a total of seventeen proposals were received. The Selection Committee reviewed all submissions and interviewed the top five based on pre-determined metrics, qualifications, and experience. Ultimately, FoundersBoost and SmartGateVC LLC emerged as the top two final candidates.
RECOMMENDATION
Approve a motion accepting the $1,000,000 from the Governor’s Office of Economic Development and authorize a Resolution of Appropriation to appropriate a total of $1,000,000; authorize the City Manager to execute professional services agreements to implement the Startup Growth Programs from the recommended Operators.
ANALYSIS
For many years, the City’s Economic Development Division has dedicated efforts to fostering a vibrant business community by developing programs and resources to support local businesses. With quality office space, access to talent and amenities, and a competitive business environment, cultivating the technology sector in Glendale was seen as the next step in revitalizing downtown and growing the city’s economy.
On February 23, 2016, the city contracted with Estolano Advisors to develop a roadmap for growing Glendale’s technology sector and economy. The Glendale Tech Strategy report, adopted by Council in 2017, outlined recommendations to strengthen this ecosystem including hosting networking events, enhancing marketing efforts, improving amenities, and fostering stronger collaboration with the community and partners.
Since the adoption of the Tech Strategy, staff has implemented many of the recommendations, including the following:
Business Retention and Engagement visits to Glendale’s top tech employers to further promote Glendale as a tech hub and business-friendly city; Hosting Glendale Tech on Tap, a monthly meet-up event that convenes tech entrepreneurs in a casual networking and learning environment. Coordinating Glendale Tech Week, an annual community event series that highlights the ecosystem of innovation and technology across all sectors and age groups. Tech Week 2023 attracted more than 2,000 local and regional attendees to share ideas, gain insights, make connections, and celebrate the achievements of the growing tech community in the city. This year’s Glendale Tech Week is the City’s 9th year running the event and involved over 60 different local and regional companies and organizations.
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Supported the launch of two local startup accelerators, Hero House of Glendale and KidsX of Children’s Hospital of Los Angeles (via State Grant Funding). Assisted in the retention and expansion of large tech companies such as Service Titan, Age of Learning, and Beyond Limits, while recruiting additional companies such as Evite.
Began work to develop a robust marketing campaign to highlight Glendale’s strengths and advantages to the local and external tech communities.
While the Economic Development Division has continued with these efforts, staff has recently intensified efforts on developing additional programming and resources to further support the tech and business community. These initiatives include:
Industry Infographics – Industry-specific collateral that provides compelling at- a-glance data points to showcase Glendale’s value proposition. Business Resource Guide – A comprehensive guide offering general information about federal, state, county, and local programs and incentives. How to Do Business in Glendale Guide – A step-by-step guide outlining the necessary steps and resources for establishing a business in the city. Annual 2024 Let’s Grow Glendale Small Business Summit – Now in its second year, attendance has doubled to nearly 400 attendees and features a series of breakout sessions on key topics to support business growth. Upstart Valley Marketing Initiative with the city of Burbank: A collaborative marketing initiative to boost the region’s tech profile. Complimentary Human Resource Hotline to Glendale employers: Offers local businesses guidance on critical HR-related matters such as benefits, hiring, leave laws, termination, and wage laws.
Regular Business Seminars/Events: A series of seminars providing deeper insights into effective business strategies and access to experts to support business growth.
Initial $1 million from the State of California Governor’s Office of Business and Economic Development
On November 15, 2019, the City of Glendale received a $1 million grant from the State of California, secured by State Senator Anthony Portantino. As part of the agreement, the City was responsible for allocating these funds to a qualified accelerator or accelerators over three years.
In January 2020, the city released a Request for Proposal (RFP), and the selection committee recommended KidsX from the Children’s Hospital of Los Angeles (CHLA) and Hero House as the final two accelerator operators for the Council’s consideration of approval. The Council approved the committee’s recommendations in December 2019.
Contracts executed with both accelerators were from 2021 to 2023. 4{{section.number}}1
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With this initial state grant, Glendale successfully supported the launch of two tech- focused accelerator programs, enhancing the city’s brand and business-friendly reputation, attracting new companies and tech workers, and increasing opportunities for tech startups globally.
Some of the successes of both accelerator programs are as follows:
Children’s Hospital of Los Angeles (CHLA)
61% of KidsX alumni have successfully raised capital and about $129 million has been raised through public series funding
Two alumni startups have been acquired (Rose Health was acquired by Precision Behavior, a behavior health company based in Westlake Village, CA, and OneRecord was acquired by Millman IntelliScript) for undisclosed amounts. KidsX has built out its consortium of hospitals to include over 30 pediatric hospitals across three continents
KidsX continues to have a tremendous impact on digital innovation within pediatric health and has led 10 innovation programs
64 startups have participated in KidsX programs over the course of seven accelerator cohorts
Hero House by Smart Gate VC
Some of the accelerator and alumni successes include:
eLabNext: Opened a new office in Glendale within Hero House Britive (Cloud identity Security Company – Hero House Alumnus): Now has an office in Glendale
Esper Bionics (Engineering Company – Hero House Alumnus): Made Time Magazine’s list of best inventions for their game changing AI-powered bionic hand.
Expper Technology (Hero House Alumnus) – Invented Robin the Robot, the world’s first emotionally intelligent robot and named Time Magazine’s Best Invention of 2021
Hero House continues to host regular events and has become a central location for the early-stage startup community in Glendale and the broader innovation ecosystem in SoCal, connecting entrepreneurs to each other, investors, and collaborators
Economic Development Strategic Plan (2022 – 2025)
In June of 2022, the city reaffirmed its commitment to strengthening the tech ecosystem by adopting its first Three-Year Economic Development Strategic Plan. The plan identified four key priority areas:
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Brand Identity – Strengthen brand identity and enhance awareness of Glendale on a local, national, and global scale.
Business Culture – Develop a business-friendly ecosystem that supports business attraction, retention, and expansion efforts to ensure a diverse, equitable, inclusive, and resilient economy.
Innovation Ecosystem – Grow the local innovation and tech industry sector to attract and retain talent and support the growth and success of entrepreneurs. Entertainment & Lifestyle – Enhance the arts, culture, and entertainment sectors to position Glendale as a premier destination city.
While several successful initiatives have been launched, more can still be done to support the ecosystem of innovation, particularly for early-stage founders and startups.
Additional State Funding Received
In April 2024, California State Senator Anthony Portantino, successfully secured another $1 million for the city to continue fostering tech-focused initiatives and support the creation or expansion of tech startup studios, incubators, and/or business accelerator programs. To obtain these funds, the State requested a Standard Agreement, Scope of Work, Budget Detail and Payment Provisions (attached as Exhibit A).
On April 22, 2024, the Governor’s Office of Business and Economic Development executed an agreement with the City of Glendale. As part of the agreement, the City is responsible for allocating these funds to expand Glendale’s technology hub from April 2024 to March 2027. The city is required to submit annual reports to the State of California detailing expenditures, services provided, and the positive economic outcomes of these programs.
On May 15, 2024, the city issued a Request for Proposal (RFP) seeking operators to lead startup growth programs aimed at accelerating the city’s tech industry, with submissions due by July 12, 2024. The full RFP is attached as Exhibit B, with addedums provided in Exhibits C & D.
Glendale’s Technology Sector
With a resident population of nearly 200,000, a daytime population of over 211,000, and a workforce consisting of 72% white collar employees, Glendale is home to over 1,146 high-tech companies, ranging from startup to industry giants. In total, high-tech industries employ over 12,000 individuals, with the top 5 industries consisting of management of companies and enterprises; aerospace product and parts manufacturing; management, scientific and technical consulting services; computer systems design and related services; semiconductor and other electronic component manufacturing (see table 1 below).
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Table 1. Number of High-Tech Firms by Subsector, Glendale* High-Tech Subsector in Glendale # of Employees
Management of Companies and Enterprises 3,186
Aerospace Product and Parts Manufacturing 1,480
Management, Scientific, and Technical Consulting
Services 1,430
Computer Systems Design and Related Services 1,376
Semiconductor and Other Electronic Component
Manufacturing 1,329
Architectural, Engineering, and Related Services 1,042
Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services 246
Scientific Research and Development Services 238
Professional and Commercial Equipment and Supplies
Merchant Wholesalers 208
Electric Power Generation, Transmission and Distribution 201 Navigational, Measuring, Electromedical, and Control
Instruments Manufacturing 200
Facilities Support Services 143
Pharmaceutical and Medicine Manufacturing 135
Web Search Portals, Libraries, Archives, and Other
Information Services 126
Other 718
Total 12,059
*Industries were defined by NAICS code classifications that JobsEQ has categorized as “High-Tech” industries. Data was based on Q3 2023 data.
Startup Growth Programs – Why it Matters
Glendale has a growing tech startup community and a budding reputation as a tech hub within the broader Los Angeles region. As crucial drivers of economic vitality and innovation, these small businesses have the potential to become high-growth 7{{section.number}}1
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enterprises that generate revenue, create jobs, and innovate solutions. While many startup tech companies exist within the City of Glendale, the support structure within the City required to incubate, accelerate, fund, and guide these companies to success still has a large opportunity to be strengthened.
The successes of the accelerator programs funded through the 2019 GoBiz grant show how essential growth programs are in building the local tech community, attracting companies and talent to and retaining them within the City, and benefiting innovation within the community as a whole. There still exists, however, an opportunity to expand the capacity, broaden the scope, and increase the diversity of growth programs available to the entrepreneurs looking to grow in Glendale. As an example, very early- stage companies, founders, and entrepreneurs have been given a community at Hero House, who has done a tremendous job establishing itself within the region as a destination for this audience. There does not exist, however, a similar community anchor for mid-sized and growth-stage startups within the City. Similarly, the Disney Accelerator and KidsX both provide top tier programming for a very narrow set of startup industries (entertainment tech and pediatric digital healthcare respectively), yet there remains a dearth of opportunity for startups within industries outside those niche focus areas.
Therefore, in order to continue advancing the City’s Tech Strategy, the Economic Development Division needs to sustain its role in building community and expanding the resources available to entrepreneurs and startups at all stages and within all industries.
Having a variety of support programs fosters an ecosystem where innovation can flourish at all stages, from idea inception to market domination. This diversity attracts a wider range of entrepreneurs, from first-time founders to seasoned tech leaders, while also drawing investors, mentors, and talent to the region. It creates a vibrant, interconnected network where startups can evolve, pivot, or scale depending on their needs, ensuring a dynamic and resilient tech ecosystem. Additionally, these programs help foster collaboration, knowledge-sharing, and innovation across sectors, making the community more competitive on a regional, national, and even global level.
Allowing for the expansion of the startup support system through the introduction of additional Growth Programs will further strengthen the tech community within the City, elevate the innovation and entrepreneurship occurring locally, and equip startup teams with more tools, support, and opportunity to build and scale a thriving company in Glendale. These efforts will further enhance Glendale’s business-friendly reputation and tech identity, positioning the city to attract new firms and catalyze the growth and success of local tech companies while bolstering its reputation as a destination for companies looking to grow and succeed.
STARTUP GROWTH PROGRAM GOALS AND OBJECTIVES
The goals and objectives for the Startup Growth Program identified in the RFP include:
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Goals:
1. Showcase the local startup community and provide emerging companies with the tools and support they need to thrive in today’s market;
2. Promote Glendale and the region as an innovation hub;
3. Attract and retain a diverse pool of tech talent to Glendale and the broader area; and,
4. Drive local economic development through supporting entrepreneurs and potential high-growth startups that may generate revenue, create high-wage paying jobs, and create products/ideas that are solving meaningful problems.
Objectives:
1. Establish, launch, and operate a Startup Growth Program within Glendale;
2. Develop a marketing and recruitment plan for attracting companies;
3. Construct programming that would include, but is not limited to: business coaching, networking, mentoring, and investment opportunities;
4. Identify quantifiable metrics to gauge the Growth Program’s success
5. Maximize the awarded grant funding over three (3) years and identify other funding sources and/or in-kind services for continued operation of the Growth Program beyond three years;
6. Market the Growth Program as a way to promote the region; and,
7. Absorb and/or work alongside City of Glendale programming efforts established to support the Glendale Tech ecosystem (e.g., Glendale Tech Week and Glendale Tech on Tap).
Submission Requirements:
Eligible respondents may include individuals, private companies, venture capital firms, incubator or accelerator program operators, non-profit organizations, industry groups, academic or research institutions, co-working spaces, etc. Respondents may be comprised of one or more individuals or entities; if so, respondents must identify a primary entity and formal program partners.
The City encourages partnerships with local entities to ensure full program capacity and expertise, and to serve the needs of the Tri-City region and Los Angeles County startup ecosystem. The ideal respondent will demonstrate proven relationships with angel investors, venture capital (VC) firms, and other seed-stage investors that would be willing to meet with and potentially fund companies, as well as have access to a wide network of professionals in the tech industry who can serve as mentors to participating companies.
A summary of key business terms in the RFP include:
Term: A three-year term. Funds will be disbursed each year following successfully fulfilling metrics. The City will also provide in-kind assistance through an assigned Glendale business concierge staffer on permitting, incentives, marketing, etc. for companies looking to locate within the City of Glendale during or post-program.
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Budget: Must provide a line-item budget outlining the costs for the Growth Program for the first year, including direct labor, rent, travel, supplies and other categories as applicable. The $1 million in grant funding is intended to be split between two (2) selected operators, allocating $500,0000 to each operator spread out over the contract period. If respondent believes it could further advance the city’s tech strategy by being awarded both halves of the grant ($1 million total), the respondent shall submit a second budget. Growth Program Location: Must have a physical location within the City of Glendale and must hold at least one in-person event within the City as part of the Program each year.
Local Companies Supported: A minimum of one cohort per year and ten (10) companies supported per year, in addition indirectly supporting other startups through community efforts and interactions with companies. Efforts to advance the Glendale Tech Strategy’s goal of increasing the number of tech companies operating within Glendale is required.
Stakeholders Engagement: Must demonstrate connections to or planned partnerships with established investment funds, existing accelerator operators, existing co-working spaces, local colleges and universities, and other local businesses, non-profits, and educational institutions in order to provide a support network to the tech startups that are part of the proposed programs.
The critical timeline milestones identified in the RFP are as follows:
Date Milestone
May 15, 2024 Issuance of Request for Proposals
May 29, 2024 Pre-Bid Conference (also recorded and
made public)
June 21, 2024 Written Questions Due from Proposers
June 28, 2024 City Responses to Written Questions
Issued
July 12, 2024 Deadline for Submitting Proposals
Late July and August 2024 Selection Committee Reviews Proposals Late August 2024 Interviews with Top 5 Proposals
September/October 2024 Selection Committee’s Recommendations to City Council for Final Approval
STAKEHOLDERS/OUTREACH
Since receiving confirmation that the city would be receiving the additional funds, Economic Development staff engaged in an outreach strategy to the startup and business community, potential corporate businesses, and accelerator operators.
Various methods of outreach were utilized to have as broad of a reach as possible within both the traditional business community ecosystem as well as the tech community ecosystem. Outreach efforts are detailed below:
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Media Outlets:
A formal press release was sent to the following media outlets and journalists:
Los Angeles Business Journal, San Fernando Velley Business Journal, Glendale News-Press, Los Angeles Times, Crescenta Valley Weekly, Glendale Independent, Pasadena Now, Outlook Newspaper, AsianWeek, Appo US Armenia Today, Asbarez Editorial, Asbarez English News, Asbarez News, La Opinion, Fox TV, Armenian Media Group of America, Armenian Observor, USArmenia TV, KBS America, KPCC, Go Glendale, California Courier Armenian Newspaper, Center for Asian American Media, American Multimedia Television USA, Korea Times, City News Service, Waste Dive, LA Sentinel, Fil-Am LA, “Associated Press – Los Angeles Bureau”, CBS, Fox TV, “Journal of Hispanic Higher Education”, Radio Korea, First Nations Experience (FNX), ARTN Shant – TV, Freelance Reporter, Pace News, Koreatown Daily, LA Weekly, Los Angeles Daily News, Horizon Armenian TV, International Christian Family Network, Iranshahr News Agency, KNBC TV, PublicCEO, Hispanos Unidos, Japan America Media Association, KABC TV, LA Taco, KTLA, John Quarterly Mailer, China Biz News, Korea Times Los Angeles, Edition, Tolucan Times, Burbank City Government PIO, El Aviso, Sing Tao Daily, Korea Times, Latino Times, Laist, KPCC, Korean Christian Press, NBC Universal, Univision Noticias, US Armenian TV, US Armenian TV Info, USA Armenian Life, ABC 7 News, Local News Pasadena, La Opinion, AABC TV, AABC TV, World Journal, China Daily, The Armenian Report General, The Armenian Report Press, The Asian Journal, CBS, The California Report – KQED-FM, Hoy Los Angeles, Tehran Magazine, Cultural News, Pan Armenian TV, CBS, ABC 7, Beacon Media News, Pasadena Journal, NBC Universal, AsianWeek, The California Report – KQED-FM, LA Sentinel, Pasadena Now Press, Balita Media, NBC Universal, KCBS Channel 2, KCET, Kandid Koffee, LA Business Journal, LA Canada Outlook, LA Cop, LA Daily News, LA News, CBS, The California Report – KQED-FM, NBC Universal, Armenian Radio, NY Times, Estrella TV and Radio, CBS, City News Service, Massis Weekly, Tikkun, Orange County Register, ABC 7, Molorak Weekly, Outlook Newspaper – Pasadena, Tapesh TV, NBC Uni/LA Telemundo, New Armenia, Associated Press, Korea Daily, KTLA Assignment Editor, Nor Gyank Armenian Newspaper, KNBC TV, Tribune, Valley Sun, Koreatown Daily, Palmira Perez, “Estrellas en Los Angeles”, ANCA Western Region, Rafu Shimpo, and Yue Zhang.
Community Groups:
Personalized emails, social media mentions, and the formal press release were sent to the following community groups who distributed information about the RFP to their membership and communities:
SoCal Innovation Alliance, ReCast, Startup Starter, AI LA, ReDesign Health, BioScience LA, Glendale Chamber of Commerce, Montrose-Verdugo Chamber of Commerce, Greater Downtown Glendale Association, Montrose Shopping Park Association, Valley Economic Alliance, Crescenta Valley Chamber of Commerce, Professional Development Center – GCC, Glendale Community College, Verdugo Job Center, Los Angeles Area Chamber of Commerce, 11{{section.number}}1
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Glendale Latino Association, Filipino American Business Association of Glendale, Filipino American Business Association of Glendale (Filipino Sister City Association), Glendale Chamber of Commerce, Armenian Council, Auto Club of Southern California (AAA)
Prior Applicants to 2020 Glendale Tech Accelerator Grant:
Personalized emails were sent to all former applicants and interested parties to the previous tech community grant released by the City of Glendale. The recipients were:
KidsX, Techstars, Untapped Ventures, HeroHouse, Plug and Play, Continental Advisory Services, IBA DMZ USC Accelerator, Grid110 & Hacker Fund, EvoNexus, iLab Collective, NextGen Media Foundry, I3 Consortium, WeWork, ListVentures & Sophist Capital, Green2Gold, Cal Lutheran University, TechFire, Womens Startup Lab, Ruzanna Dinger, Tech Coast Angels, Gener8tor, Noorcon, Center for Social and Technological Entrepreneurship, CSUN, Hacker Fund, Startup Council, Expert Dojo, SEC Construction Management, Le Health Innovation
Additional Interested Parties:
Personalized emails were sent to the following individuals and parties who expressed interest directly to the Economic Development Division during conversations, meetings, or other venues:
Tim Carson, Triple S Ventures, Knox Labs, Karl & Done, Sunstone Cities, Hamaynapatker, Harut Sassounian, Silva Media Group, Pegasus Angel Accelerator, ScaleHealth, All Raise, Polo, Kara Nightingale
RECEIVED PROPOSALS
In total, seventeen proposals were received as follows (alphabetical order):
1. 2080 Ventures
2. Cela Innovation
3. Continental Advisory Services
4. EQM Ventures and Westgard
5. Expert DOJO
6. FoundersBoost
7. Gener8tor
8. KnoxLabs
9. Larta Institute and CVWD
10.Passbook Cartel Venture Studio
11.Plug and Play
12.ScaleHealth
13.SEC Construction Co
14.Silva Harapetian
15.SmartGateVC LLC
16.Sunstone
17.Untapped Ventures
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Selection Committee
To ensure a comprehensive and impartial evaluation process, a Selection Committee (“Committee”) was assembled to review the proposals. The Committee was comprised of individuals with diverse expertise, perspectives, and backgrounds that allowed them to speak to the growing tech ecosystem in Glendale and how it plays into the broader Los Angeles Area innovation ecosystem. The Economic Development Division created and selected judges to fit seven personas representing different backgrounds and points of view. The diversity of perspectives in the Selection Committee allows for a recommendation that has considered how the Operator(s) will improve the internal tech ecosystem within the City, advance the startups participating in their programs, bring an increased reputation to the City, and elevate the City’s role as a collaborative and driving member of the SoCal Tech scene.
Selection Committee Members (alphabetical order):
1. Armen Vartanian
a.Title: Founder, Oceanview Capital Partners
b.Relevant Experience: An enormous champion of tech-ecosystem- building efforts within Glendale, a veteran investor within the Glendale innovation ecosystem, and part of the Selection Committee for the 2019 GOBiz grant for a Glendale Tech Accelerator.
c.Persona: Investor
2. David Yeom
a.Title: CEO, Evite
b.Relevant Experience: CEO of a large tech company that chose to move its headquarters to the City of Glendale, has perspective on the needs of smaller sized and larger sized tech companies with an emphasis on building the culture of the City of Glendale to support tech. c.Persona: Tech company in Glendale
3. Espree Devora
a.Title: Founder of We Are LA Tech
b.Relevant Experience: Multiple-time founder of tech companies both within and outside the Los Angeles area who is one of the original community-builders for the tech and startup ecosystem that helped to shape LA’s tech scene.
c.Persona: Startup perspective / Broader tech ecosystem
4. Gillian van Muyden (Selection Committee for Interviews only) a.Title: Chief Assistant Attorney, City of Glendale
b.Relevant Experience: Served as a member of the Selection Committee for the 2019 GOBiz grant for a Glendale Tech Accelerator, longtime advocate for the advancement and growth of Glendale’s tech economy while ensuring the City’s legal and municipal needs are being met. c.Persona: City of Glendale’s Legal Perspective
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5. Omkar Kulkarni
a.Title: Chief Transformation & Digital Officer, CHLA; Director, KidsX b.Relevant Experience: Former awardee of the 2019 GOBiz grant for a Glendale Tech Accelerator, leader within the LA Region’s health tech and innovation landscape, current and founding director of a highly successful accelerator program who can speak to the financial, logistical, and operational aspects of leading a tech-startup growth program. c.Persona: Broader tech ecosystem
6. Dr. Ryan Cornner
a.Title: President, Glendale Community College
b.Relevant Experience: Visionary president of the local Community College who has proactively engaged with the local and regional tech industry to strengthen the tech talent pipeline within and surrounding Glendale. c.Persona: Tech Talent Education Pipeline
7. Soua Vang
a.Title: Deputy Director of Economic Development, City of Glendale b.Relevant Experience: The city’s Economic Development Division head, led the development of the City‘s Economic Development Strategic Plan and champion of the growth and development of the City’s tech and business ecosystem.
Persona: City of Glendale’s Economic Development and Tech Strategy The division’s Senior Economic Development Coordinator, David Crawley Delgado, was the project manager and facilitated discussions but was not a voting member or judge on the committee.
Selection Process and Evaluation Criteria
Economic Development staff facilitated all meetings and discussions throughout the selection process, which included the following:
July 15, 2024 – All proposals sent to Committee for Review and Ratings August 16, 2024 – Committee Responses Due to the City
August 19, 2024 - The Committee met to discuss initial ratings of the proposals.
It resulted in narrowing down the pool from sixteen to the top five candidates, based on the evaluation criteria detailed below.
August 20 – August 23, 2024 – Virtual interviews with the Top Five qualifying candidates and recommendations of the top two finalists.
The Evaluation Criteria utilized included the following:
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Proposed Plan and Approach (30%), including level of detail and viability in the proposed plan. Specifically, applicants were rated on curriculum module and/or service; recruitment process; quantifiable metrics; and marketing and branding. Relevant Qualifications and Experience (30%), including experience in developing, implementing, and operating a startup growth program; qualification and experience of key personnel, including relationship between the primary entity and program partner(s), if applicable; connection to or planned partnerships and references
Financial Capacity (20%), including demonstrated financial stability, readiness to proceed, and ability to meet city’s general terms and conditions, including contract terms; detailed line-item budget; and proof of leverage funding. Commitment to the Glendale Tech Community (20%), including demonstrated commitment and plan to engage the Glendale tech ecosystem and to advance the Glendale Tech Strategy, and viable physical location for the Growth Program within Glendale.
Interviews – Top Five Candidates
Following the review and rating of all proposals, the Committee held interviews with the top five candidates who achieved the highest scores based on the evaluation criteria.
The companies interviewed included (in alphabetical order):
Expert DOJO
FoundersBoost
Plug and Play
SmartGateVC LLC
Sunstone
The scores are detailed as follows:
Expert
Dojo
Founders
Boost
SmartGateVC
LLC
Plug and
Play Sunstone
Avg.
Proposal
Score
(#/100)
67.17 75.50 72.17 71.67 69.50
Avg.
Interview
Score
(#/100)
66.71 81.00 89.71 58.71 69.85
Total 133.88 156.50 161.88 130.38 139.35
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City’s Due Diligence
The Economic Development team reached out to all references provided by the top candidates via email and/or phone calls to verify the claims made in the proposals.
Top Two (2) Ranked Proposals (in alphabetical order)
FoundersBoost (Recommended to receive $500,000 over 3 years) SmartGateVC LLC (Recommended to receive $500,000 over 3 years) The selection committee unanimously approved the recommendation of the FoundersBoost and SmartGateVC LLC as the equal recipients of the funds contained in the GOBiz grant. These two candidates demonstrated, over the course of the application and interview process, a track record of building and running highly successful startup growth programs, an ability to accelerate the tech ecosystems they have been involved in, and a commitment to the advancement of the tech community here within the City of Glendale.
The selection committee reserved the right to recommend the full grant total ($1,000,000) to a single operator if the increased budget achieved the goals of the grant better than the top two proposed plans for $500,000.
After engaged discussion, it is the expert opinion of the selection committee that recommending the distribution of the grant funds to both operators will best achieve the goals outlined in the RFP. The existence of both programs, proposed by SmartGateVC LLC and FoundersBoost, will both broaden and deepen the resources available to tech startups. These will augment existing resources, expand the capacity to impact more entrepreneurs, engage with local schools, increase the frequency and impact of tech events and gatherings, and elevate the brand, image, and reputation of the Glendale tech ecosystem.
These two programs, if Council approves the selection committee’s recommendation, will work symbiotically to create an even stronger network of support that can help attract, form, and drive startups towards success. Each type of program serves a unique function within the ecosystem, targeting different needs and stages of growth for startups.
Overview of the FoundersBoost Program
FoundersBoost Foundation, in partnership with Hacker Fund and the Alliance for SoCal Innovation, will establish, launch, and operate the Glendale Growth Alliance (“The Accelerator”). This innovative program aims to support high-potential underrepresented founders from the LA region, attracting them to the Glendale ecosystem. The core initiative revolves around bi-annual FoundersBoost accelerators focused on scalable tech startups led by underrepresented founders. Additionally, graduates will receive 16{{section.number}}1
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support to enter the Alliance’s SoCal Venture Pipeline, providing them with further opportunities for growth and investment. In addition, the Glendale Growth Alliance has proposed hosting large-scale hackathons within Glendale, bringing in students, entrepreneurs, and innovators from around the region together to collectively solve pressing problems. The program touches upon every stage of the startup journey, from idea development through company funding and growth.
Key Program Components (as outlined in Exhibit E pages 16-18) Formal bi-annual accelerator program for 8 startups run by FoundersBoost including:
oWeekly Sessions over a 7-week program
oTailored Mentorship
oPitch Development Process
oProvision of Resources
oDemo Day
oGlobal Investor Showcase
oOngoing Support
Innovation Hackathons run by Hacker Fund
Investment support for top startups through the SoCal Venture Pipeline Overview of the SmartGateVC LLC Proposed Program
SmartGateVC presents a comprehensive three-year proposal to the City of Glendale, building upon the foundation established during their successful three-year partnership with the City. SmartGateVC proposes a Venture Building program which will be a premier studio located in the vibrant City of Glendale, California. Its mission is to bridge the gap between cutting-edge research and market-ready products by fostering collaborations between academic institutions and industry leaders. With a focus on laboratories in universities across Southern California, the proposed Venture Building program will be dedicated to building companies from groundbreaking technologies.
The objective of the program is to build businesses, help founders to raise pre-seed funding following the program, and acquire their very first paying customers.
Key Program Components (as outlined in Exhibit F pages 28-30) Creation of startup-creation program focusing on:
oAI & Physical World
oAI & Cyber Security
oAI & Our Brains
oAI & LLMs
Program focus will include:
oBuilding companies
oSupporting entrepreneurship
oEnhancing Economic Growth
oFacilitating Collaboration
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The selection committee feels confident that funding these two programs will be a powerful step for the City towards achieving the vision of Glendale as a vibrant tech hub.
For full details about both proposed programs, refer to Exhibit F and G.
The specifics and Scope of Work of the programs will be determined as part of the negotiation and contracting process but will adhere to the minimum requirements outlined in the RFP.
FISCAL IMPACT
Funding for the Startup Growth Programs is from a $1 million grant from the State of California, which was not included in the adopted FY 2024-25 budget. Therefore, staff is requesting these funds to be appropriated to the following accounts:
Requesting Appropriation
Amount From (Account
String)
To (Account String) Funding Source
$1,000,000 32610-2160-CDD-
0020; CDD01306AG
43110-2160-CDD-
0020; CDD01306AG
State Grants –
Grant Fund
ENVIRONMENTAL REVIEW (CEQA/NEPA)
Not applicable.
CAMPAIGN DISCLOSURE
Campaign disclosure information is provided below pursuant to the City’s Campaign Finance Ordinance No. 5744. All disclosures from each participant can be found in Exhibits F and G.
ALTERNATIVES TO STAFF RECOMMENDATION
Alternative 1: Authorize staff to negotiate with one operator or combination of operators to operate the Startup Growth Programs located in Glendale.
Alternative 2: Do not move forward with funding the Startup Growth Programs at this time and return the grant/check back to the State of California.
Alternative 3: Council may also consider any other alternative not proposed by staff.
ADMINISTRATIVE ACTION
Submitted by:
Bradley Calvert, Director of Community Development
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Prepared by:
Soua Vang, Deputy Director of Community Development
David Crawley Delgado, Senior Economic Development Coordinator Approved by:
Roubik R. Golanian, P.E., City Manager
EXHIBITS/ATTACHMENTS
Exhibit A: State of California Standard Agreement
Exhibit B: Glendale Tech Startup Growth Program RFP
Exhibit C: Glendale Tech Startup Growth Program RFP Addendum 1 Exhibit D: Glendale Tech Startup Growth Program RFP Addendum 2 Exhibit E: Recommended Proposal #1 – FoundersBoost
Exhibit F: Recommended Proposal #2 – SmartGateVC LLC