2 min read August 2023 – In an interview with Invest:, Lakshmi Shenoy, CEO of startup hub Embarc Collective, talked about how the organization has been disrupting the traditional support model for tech entrepreneurs, the growth of Tampa Bay’s startup ecosystem and providing individualized coaching and support to local startups. While there are challenges, particularly when it comes to securing external capital, the region is striving to produce better, more successful companies, Shenoy explained.
What have been the overall contributions or impact of Embarc Collective to the Tampa region in the past year?
Embarc Collective is a new organization that opened its doors in 2020. We were created to level up the startup support available to tech entrepreneurs in the Tampa Bay region and across the state of Florida. Quality of support matters when you’re quickly growing as a business. With that in mind, Embarc Collective recruits top startup operators and attracts expert speakers from across the country to support the specific needs of the 125+ early-stage tech companies that are a part of the Embarc Collective membership.
What is the state of technology in Tampa Bay?
What we are seeing in Tampa Bay in the technology space is reflective of larger national trends. There has been a decrease in the volume and frequency of external capital being put into startups because of the shifts in the economy. It is a little bit more challenging to get external capital to fund your startup, and there is more diligence being done by investors. What that means is that founders are pushed to produce better companies prior to taking on initial or follow-on investments. Consequently, companies with a weaker business model or without a clear understanding of their target customer’s needs will have a harder time surviving in this environment.
Where do you see the greatest potential for growth in the entrepreneurial and innovation space?
The Tampa Bay region is starting to increase the number of entrepreneurs who have a track record of large, scalable businesses after years of being behind our peer geographies. As a community, we need to increase the number of entrepreneurs building high-growth companies as these are the organizations that create attractive high-wage jobs for the region, and their industries help define what this region is known for.
How do you partner with local colleges and universities to foster interest in entrepreneurship?
We partner with universities, colleges, and nontraditional training programs. Through our partnership with the University of South Florida, we have opportunities to get into the classroom and expose students to what it’s like to work at a startup, so students can determine if it’s a path for them. We bring clubs and other student organizations to Embarc Collective to give students exposure to startups in action. Finally, our internships and special capstone projects give students real work experience and the opportunity to be a part of startup culture to see how it is different from a larger organization.
How significant is Embarc’s role in the growth of the region’s economy?
One exciting aspect of startup building is that every job created is a net new job for the region. Embarc Collective serves about 400 individuals, and these are all net new jobs that did not exist until startup teams added the team member. These are also tech jobs that require high-demand skills, which ultimately increase the average salary of the region. In the few years that Embarc Collective has been open, the population of startups that we support everyday has raised nearly $200 million and by being a local company, that is money that gets invested back into the community.
What are the biggest challenges you are facing?
The challenge for us is that Tampa Bay is not the only place you can build a startup. Pre-pandemic, the place to go was San Francisco. As people spread across the country, realizing they could work remotely, we are now competing against a multitude of other places that are also doing a good job of supporting startups. Florida has done an exceptional job attracting great talent but now it is about keeping that talent as people settle into their new post-pandemic normal.
What are some upcoming initiatives or projects you are excited about?
I am looking forward to our annual Glaring Gap Summit. It is an event for women interested in learning about startup investing. Each year, we train 50 Florida-based women on the foundations of startup investing, which is made possible through the generous sponsorship of ReliaQuest. Data demonstrates if you have more women investors more women entrepreneurs will receive investment. There is a glaring gap between the percentage of capital invested in startups led by men versus those started by women. We are trying to address that by increasing the number of women investors, thus impacting the amount of capital invested in women overall.
The other news I am excited about is Embarc Collective being recognized as a top startup program globally by UBI Global. We were one of only two U.S. programs on the ranking and we are now on a quest to keep that recognition. This announcement comes at a great time when we are competing with other regions and states for great talent.
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