Look To Startups For Your Next Job Creation Wave
“New and young companies are the primary source of job creation in the American economy”.
The quote above may sound like a slight exaggeration, but it brings home an important point that represents a new trend. Though startups account for only 3% of overall employment in the US, they represent nearly 20% of new job growth.
The best medicine to ensure a healthy business environment is a vibrant startup community and a thriving entrepreneurial environment. New and disruptive ideas have the power to rejuvenate local economies.
Although young businesses are important job creators and tend to grow more rapidly, the path to long-term local job creation is often turbulent. Sadly, at least 20% of percent of start-ups do not survive past year one. Some business churn is necessary as this “creative destruction” ensures that capital is allocated to more productive uses. But in many cases, it’s avoidable. Startups with great business ideas often fail because they are lacking funds or a supportive policy environment.
Going beyond entrepreneurship and startup encouragement by properly supporting the path to growth and job creation has never been more important. But how do you find these young companies in need? General start-up statistics by metro or county exist but do not identify individual firms requiring support. Some cities and institutions have made great strides in profiling and tracking their start-ups beyond incubation. However, this is typically restricted to specific sectors or communities, leaving other potential newcomers on the sidelines.
We all want new companies with growth potential to stay local while making their quantum leap. The tricky part is identifying them.
Come out, come out wherever you are: Targeting The Right Start-Ups
Finding business hotspots in San Francisco or New York is quite easy. Identifying potential growth companies in entrepreneurial communities like Madison, Wisconsin is a little trickier. The $64,000 question is which young companies with venture capital funding are ready to scale up?
Finding the start-ups you seek is no easy task. There are several steps required including:
- Find, compare and validate different subscription services that cover a subset of the universe. The key is understanding what universe they cover and what information is available.
- Fill in missing companies with additional research on memberships of entrepreneurship associations, university tech transfer offices that track spinoffs, or incubator and accelerator graduates. Every state has many different organizations and many don’t provide full membership information online. Phone calls may be required!
- Fill in missing information on addresses, or contacts, or business linkages with desk research for EACH individual company.
- Map out the results to visualize where companies are clustered. This may require access to mapping software.
Let Gazelle.ai do the heavy lifting
Exploring the Midwest Great Lakes region, you will find close to 20 Madison companies that have received VC funding in the past 2 years, of which over 40% were less than 5 years old.
With Gazelle.ai, you have the luxury of one-stop-shopping. You can quickly identify companies that have received seed and early-stage venture capital funding as well as young growth companies that are prime targets for financing and business support services. And as an added bonus, information is validated and complemented with social media and web scraping technologies. Finally, with Gazelle.ai’s company mapping feature, you can seamlessly identify start-up cluster locations.
Let Gazelle.ai identify your next generation growth companies so you can help them scale up and secure them for the long haul!