The 5-year initiative (with an expected 5-year extension) will select 15 high potential scaleup companies per year (150 over 10 years) to participate in a proven 36-month education, coaching, and technology-supported process to address four key aspects of scaling a business:
Does the firm have the right leadership team, advisors, partners, and access to sufficient talent to scaleup the business?
Does the business model provide sufficient cash flow to fuel its own growth and provide excess funds to take advantage of opportunities that surface (and to weather storms!).
Is there a compelling differentiated advantage over the competition to guarantee continued strong margins and revenue growth?
Are growing revenues accompanied by stronger profit margins as the business enjoys increased economies of scale as the company expands.
And the initiative will focus on addressing the five key barriers to scaling up identified in British entrepreneur Sherry Coutu’s Scale-Up Report:
1. Finding employees to hire who have the skills they need
2. Building their leadership capability
3. Accessing customers in other markets / home market
4. Accessing the right combination of finance
5. Navigating infrastructure
The three expected outcomes and benefits to each city/region include:
1. Putting one of the selected firms on a strong trajectory to $1 billion in revenue – adding an important anchor firm to the city and broader business community.
2. Helping five to 10 companies scale and then exit for a combined $1 billion to $3 billion – adding significant wealth to the community.
3. Assisting 70% - 80% of the remaining 140 firms to increase their size 3x to 10x