SSTI Digest

The angel investor market in 2015 had a slight increase in investment dollars and in the deal size according to a new report from the Center for Venture Research (CVR) at the University of New Hampshire. In The Angel Investor Market in 2015: A Buyers Market, CVR reports that total angel investments in 2015 were $24.6 billion – an increase of 1.9 percent over 2014. CVR also reported that the total number of entrepreneurial ventures that received angel funding in 2015 declined by 3.1 percent from 2014 – in total 71,110 startups received funding. The result of these two trends was larger deal sizes for 2015 – an increase of 5.1 percent larger from 2014. CVR concluded that these findings, combined with yield rates and valuations data, indicate that angels were selective in their investment behavior in 2015.

The Employment Training Administration (ETA) released solicitations for a total of 12 ApprenticeshipUSA Single Industry Intermediary Contracts and ApprenticeshipUSA Multiple Industry Intermediary Contracts to become national ApprenticeshipUSA partners and have a leading role in the Sectors of Excellence in Apprenticeship (SEAs) in several key industries. Through these grants, ETA will commit up to $7.5 million to start or scale national apprenticeship programs that meet the occupational and skill needs of their industries. The department will award both single and multi-industry contracts to national organizations – such as industry associations, joint labor management organizations, workforce groups, educational institutions, and consortia of organizations – that will provide financial and technical assistance to employers pursuing apprenticeship training.

With the U.S. facing an anticipated skills gap of two million manufacturing jobs by 2025, SME – a national manufacturing workforce development organization – launched the SME High School Membership program – a free online platform to “educate the next generation on the value of manufacturing and encourage careers in the field.” The new platform is the expansion of a pilot program that engaged more than 600 high school students via memberships, which included SME’s 16 PRIME (Partnership Response In Manufacturing Education) schools. Utilizing STEM Premier’s online platform, students can create a digital profile to showcase their skills and abilities; receive customized academic and career guidance; match up with $20 billion in scholarship opportunities; and, directly connect with colleges and companies looking to recruit.

More than 85 percent of the nation’s total income growth between 2009 and 2013 went to the top 1 percent of earners, according to a recently released report from the Economic Policy Institute (EPI). Furthermore, the top 1 percent captured at least half of all income growth in 24 states between 2009 and 2013, and the entirety of income growth in 15 of those states during the same timeline. Since the 1970s, every state has seen a rise in income inequality, as measured by the ratio of top 1 percent to bottom 99 percent income, according to the report.

This week, the Appalachian Regional Commission (ARC) and the Department of Commerce’s Economic Development Administration (EDA) announced that FY 2016 funds for the Partnerships for Opportunity and Workforce and Economic Revitalization (POWER) program are now available. Now in its second year, POWER is a multi-agency effort to invest federal economic and workforce development resources in communities and regions negatively impacted by changes in the coal economy. In total, the EDA is making an additional $19.6 million available for POWER project grants under the agency’s Economic Adjustment Assistance program, while the ARC is making $45 million available under the Appalachian Area Development Program.

The Clinton campaign released on Tuesday, Hillary Clinton’s Initiative on Technology & Innovation, a wide-ranging platform with a heavy emphasis on technology-based economic development. Most of the coverage emphasizes her proposals for universal broadband access, computer science education, and student-debt forgiveness for entrepreneurs. The plan also explicitly supports policies sought by SSTI members, including increased support for the Regional Innovation Program and using a portion of federal research budgets for commercialization capacity building grants.

Secretary Clinton’s agenda defines five broad pillars:

Deadline Extended Until July 15, 2016!

SSTI has extended the due date for SSTI Excellence in TBED Awards applications to July 15, 2016. We hope the extended time will help you perfect an organizational narrative that is worthy of national recognition. The application process is as simple as one, two, three:

The Department of Labor’s (DOL) Employment and Training Administration (ETA) announced the second phase of the ApprenticeshipUSA program – a $175 million national effort intended to help states and regions provide pathways for workers to acquire the skills and knowledge needed for good-paying jobs in fields such as information technology, healthcare, advanced manufacturing, building trades, cybersecurity, and business services.  In this second phase, ETA will commit up to $50.5 million for ApprenticeshipUSA State Expansion Grants to help states:

The National Institute of Standards and Technology’s Hollings Manufacturing Extension Partnership (NIST-MEP) released a federal funding opportunity (FFO) for the operation of MEP state centers in 11 states – Delaware, Hawaii, Iowa, Kansas, Maine, Mississippi, New Mexico, Nevada, North Dakota, South Carolina, and Wyoming.  The objective of the MEP Center program is to provide business and technical services to small- and medium-sized manufacturers within the state of operation. NIST anticipates awarding one five-year cooperative agreement for each of the 11 identified states. Nonprofit and institutions of higher education are eligible to oversee the operation of MEP state centers.  MEP will host information webinars on July 21 at 2:00 P.M. ET and July 26 at 2:30 P.M. ET. Proposals are due Sep 27. 

Each month, several Federal Reserve Banks post survey results for manufacturing activity within their districts. The June results for those released to date vary sharply by region. For instance, the production index of manufacturing activity in Texas contracted for the second consecutive month, while the nearby Tenth District bank, located in Kansas City, posted its first positive month-over-month composite since January, 2015. 

Last week, the U.S. Department of Transportation announced that Columbus, home to SSTI’s 2016 Annual Conference, has won a $40 million grant from the agency, beating out five other cities in the Smart City Challenge. As is often the case in Columbus, partnerships were vital to the city’s success; to complement the federal funds, businesses and other public entities in the region pledged $90 million to support the future transportation initiatives.

The Senate Commerce Committee approved Wednesday the American Innovation and Competitiveness Act (AICA), a reauthorization of the America COMPETES Act. SSTI thanks Sen. Jerry Moran (R-KS) for his leadership in successfully offering an amendment to increase the authorization level for the Regional Innovation (RI) program to $30 million, which provides support for local innovation, entrepreneurship and economic growth. SSTI also recognizes Sen. Roy Blunt (R-MO) and Sen. Amy Klobuchar (D-MN) for their support of the organization’s priorities.