{"id":1194,"date":"2017-03-31T23:29:27","date_gmt":"2017-03-31T23:29:27","guid":{"rendered":"https:\/\/www.startupblink.com\/blog\/?p=1194"},"modified":"2023-10-30T13:13:54","modified_gmt":"2023-10-30T13:13:54","slug":"south-bend-region-startup-ecosystem-report","status":"publish","type":"post","link":"https:\/\/www.startupblink.com\/blog\/south-bend-region-startup-ecosystem-report\/","title":{"rendered":"South Bend Region Startup Ecosystem Report"},"content":{"rendered":"
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Mural called Touchdown Jesus at the University of Notre Dame campus in South Bend<\/figcaption><\/figure>\n
Click here to view South Bend Startup Ecosystem<\/a><\/h5>\n

An Introduction to the South Bend Startup Ecosystem <\/strong><\/h1>\n

The greater South Bend Elkhart region encompasses communities within north central Indiana and southwest Michigan. It is a knowledge-driven, highly connected region that serves and provides access to a global innovation economy.\u00a0 In StartupBlink’s 2019 report<\/a><\/strong>, South Bend is ranked 219th in the United States and 586th globally. <\/p>\n

Historically, the area has been known for producing Studebaker cars, Alka Seltzer, band instruments and recreational vehicles. This is partly due to its central Midwest location which is traversed by major highways, railroad lines, and dark fiber lines. But it can also be attributed to the region\u2019s strong entrepreneurial spirit that still exists today and is evidenced by a growing startup community.<\/p>\n

The region makes more than 80 percent of the recreational vehicles purchased each year across the globe and is known for its manufacturing skill. Companies have emerged around its historic industries, but there are a growing number of tech companies that are choosing to start and operate in South Bend.<\/p>\n

Historical industrial buildings being redeveloped throughout the region are creating an exciting and unique setting for the region\u2019s up-and-coming innovation districts. To attract the talent the urban cores within the region are building mixed-use housing developments that engage the riverfronts and water amenities. In addition, the region is geographically close to Lake Michigan, Chicago and offers a burgeoning local food scene, minor league and college sporting events, bike trails and plenty of lakes and rivers for water sports.<\/p>\n

South Bend-Mishawaka and Elkhart-Goshen, the two largest urban areas in the region, have lower than average costs of living compared to urban areas across the United States. The region\u2019s tax rates are also competitive, particularly in comparison to state rates and other parts of the United States.<\/p>\n

The region is attracting investment from Wall Street and potentially Silicon Valley. The low cost of living, plentiful space and access to a range of resources are some of the reasons for this.<\/p>\n

Most successful startups in the South Bend Region<\/strong><\/h2>\n

The success stories include everything from local startups growing out of manufacturing plants to companies founded on the commercialization of ideas sprouting on campus.\u00a0 In the RV Industry, Lippert Components (<\/a>@lippertproducts<\/a>),\u00a0 and Forest River (#forestriver) have grown into two of the largest recreational vehicle companies in the world.<\/p>\n

Press Ganey Associates<\/a> (@pressganey<\/a>) started after University of Notre Dame professors Irwin Press and Rod Ganey took an interest in using statistics and survey methodology to improve health care. The agency has become one of the leaders in the field and is used by more than 26,000 health care facilities.<\/p>\n

More recently, the sale of SMART-Temps<\/a>, a high growth company that sourced local venture capital to break through into new markets, to Digi International<\/a> validates the momentum that has been built around smart technology, connection to capital and a vibrant startup community.<\/p>\n

Serial entrepreneur Kevin Smith<\/a> has built several companies and nurtured the rehabilitation of the last remaining Studebaker Factory building, which is now<\/a> poised to become the Midwest\u2019s largest technology campus. Smith has steered the vision for this project that will transform downtown South Bend and the region. The former Union Station is already home to a regional server center that utilizes densest fiber corridor in the nation underneath the Renaissance District on the former Studebaker campus. The largest carrier hotel and data center in the region, Global Access Point<\/a>, is already part of the district and there are plans to transform 1.3 million square feet of industrial space and 83 acres into a number of uses.<\/p>\n

Ben\u2019s Soft Pretzels<\/a> (@benspretzels<\/a>) started in 2008 when Brian Krider, Scott Jones, and Ben Yoder combined a recipe with an aggressive business plan. The business has become one of the fastest-growing franchise companies in the country with 76 locations and plans for more.<\/p>\n

Tire Rack<\/a> (@tire_rack<\/a>) Pete Veldman opened the first Tire Rack store in 1979 and turned it first into a mail-order tire company and then one that embraced Internet sales. Its headquarters in South Bend cover 2.4 million square feet under roof and features an outdoor test track.<\/p>\n

Better World Books<\/a> (@BWBbooks<\/a>) Three friends from the University of Notre Dame started selling books online in 2002 to earn extra money and it became a cause-based success. Better World sells used books and gives a portion of the proceeds to literacy efforts worldwide. It\u2019s sold 117 million books, given more than $15 million and diverted more than 73,000 tons of books from landfills. It\u2019s also donated more than 10 million books.<\/p>\n

Carved <\/a>(@carvedllc<\/a>). In 2011, John Webber formed a company to utilize wood in phone cases and sell them online. As Carved has grown its product line, sales climbed 1,480 percent in three years. It had $2.8 million in sales in 2015 and made the 2016 Inc. 500 list.<\/p>\n

Strengths of South Bend Region for startups<\/h3>\n

The South Bend-Elkhart region has fostered entrepreneurship for decades but is at a key point in its history as dozens of community leaders come together to look at how it can become one of the world\u2019s elite communities for startups. Winning a $42 million state grant to enhance the quality of place<\/a> and securing a $2.5 million partnership with Elevate Ventures to foster the entrepreneurial ecosystem is just a couple of examples of the region\u2019s focus on attracting talent and supporting entrepreneurs.<\/p>\n

Young mayors in the region, including Pete Buttigieg in South Bend, are also focused on livability and making cities more business friendly<\/a>.<\/p>\n

The region\u2019s key strengths include many existing place-based assets, a competitive cost structure, access to markets, higher education resources, and cultural diversity. Innovation districts are also already emerging throughout the region.<\/p>\n

The region is home to the University of Notre Dame and other colleges who are collectively educating more than 40,000 students, creating a strong ecosystem to support entrepreneurship and innovation.\u00a0 The commitment by universities to partner with the community and grow its economy is sparking transformational change. The direct and indirect benefits of the University of Notre Dame accounted for more than $1.3 billion in economic activity<\/a> in the fiscal year 2014 and the university generates more than $16 million in state and local tax revenues<\/a>.<\/p>\n

Notre Dame and IUSB are engaged in scientific discovery and technology commercialization programs. In 2014, 108 inventors produced 65 new disclosures, 33 investors were awarded 24 patents, and 13 technologies representing the work of 19 researchers were licensed. Since 1986, 64 current faculty members have had 166 patents issued.<\/p>\n

Notre Dame, in partnership with private and public organizations, recently opened a $36 million Turbomachinery Laboratory in Ignition Park on the edge of downtown South Bend. This facility will be \u201cthe nation\u2019s foremost research and test facility for advancing the technology used in the massive gas turbine engines used by commercial and military aircraft, power plants and the oil and gas industry.\u201d<\/a> General Electric committed $13.5 million to fund research and testing at the lab. Others are working together to install a new 138kV electrical substation to serve the lab and support other technology-driven businesses in the park.<\/p>\n

Innovation Park, a 12-acre campus across from Notre Dame, has 55,000 square feet of collaborative space where research, education, and entrepreneurship come together. Based on its early success, an additional 40,000 square feet is under construction. \u201cSince Innovation Park’s opening seven years ago, 59 new ventures have launched there, 29 companies are currently operational, 38 Notre Dame faculty members are working there, 67 Notre Dame student interns are employed by ventures and 15 companies have secured significant outside funding,\u201d according to an August 2016 article in the South Bend Tribune<\/a>.<\/p>\n

The region features hard-working people who connect in vibrant social and civic communities. Strong non-profit agencies strengthen the region, including EnFocus<\/a>, which helps 17 young innovators work as fellows in the community after finishing their college education.<\/p>\n

The region attracts tourists to visit the University of Notre Dame or learn more Amish life and culture. The region\u2019s growing craft beer scene, successful southwestern Michigan wineries and a strong farm to table movement are also attracting both tourists and residents.<\/p>\n

Weaknesses of South Bend Region for startups<\/h3>\n

Historically, the counties in North Central Indiana and Southwest Michigan haven\u2019t thought or talked regionally. County and state lines have acted as barriers as communities seek funding, make plans and govern themselves. The current conversation about the future of the region has reached more deeply into the communities than any previous effort and the energy and commitment to move the region forward as a whole is strong.<\/p>\n

The South Bend Elkhart Region benefits from world-class educational institutions and Indiana\u2019s business-friendly environment, yet it needs to grow or attract a tech-savvy workforce and entrepreneurs to establish businesses in new sectors.<\/p>\n

Unless a new generation of higher skilled workers emerges, it will lose population and employment density as the existing workforce ages and retires.<\/p>\n

Additional investment in amenities will be needed to create recreation spots, trail systems, entertainment venues and transit services. Improved rail service to Chicago with frequent reliable services under 90 minutes is key to the region\u2019s advancement.<\/p>\n

The South Bend-Elkhart region is known for being home to Notre Dame, but has yet to become known for its smart, connected communities. Because of its location in the Rust Belt and association with low-skilled manufacturing, changing the perception of the community could take time, but conversations and efforts at a regional level are aimed at doing just that.<\/p>\n

Biggest sources for startup news<\/h3>\n

The region needs more sources for news and reflection its growing startup ecosystem. A regional business journal is no longer active and other magazines in the region tend to focus on lifestyle more than business activities.<\/p>\n

The region has a number of weekly and daily newspapers. The largest is the South Bend Tribune<\/a>, which devotes considerable space to business coverage. The Elkhart Truth<\/a> and The Goshen News<\/a> are also daily newspapers.<\/p>\n

Inside INdiana Business<\/a>, a blog that covers the entire state, pays a lot of attention to northern Indiana. Mendoza Business<\/a> is the biannual publication for alumni of Notre Dame\u2019s Mendoza College of Business.<\/p>\n

Edible Michiana<\/a> does a great job covering the farm-to-table and entrepreneurial food realm for the region.<\/p>\n

RV Business<\/a> is a significant trade publication based in northern Indiana that covers all aspects of the recreational vehicle industry.<\/p>\n

Michiana Partnership<\/a>, which is working at economic development throughout the region, is emerging as one of the key sources for information about meetups, startups and regional efforts.<\/p>\n

Biggest players in the South Bend startup ecosystem<\/h3>\n