Ignite VC: Fostering Sacramento Startups and The Backyard Advantage with Mark Haney | Ep59

Ignite: Conversations on Startups, Venture Capital, Tech, Future, and Society

In this episode of the Ignite podcast, host Brian Bell welcomes Mark Haney, the founder and managing partner of the Growth Factory based in Sacramento. Haney shares his journey and the ethos behind Growth Factory, an entrepreneurial development group with a venture capital arm that focuses on supporting local startups. He emphasizes the importance of fostering a supportive community, citing how they've invested in about 50 local companies. Their approach is not just financial; it involves building relationships and facilitating mentorship opportunities within the Sacramento region. Bell and Haney discuss the geographical and strategic advantages of Sacramento. Close to other major locations like the Bay Area and Lake Tahoe, Sacramento offers a quality living environment conducive to raising families and nurturing startups. Despite its proximity to the Silicon Valley, Sacramento has traditionally been overlooked by venture capital, which they are actively trying to change. Haney elaborates on the structure and goals of Growth Factory. Differing from standard accelerator models, they tailor their support to the specific needs of startups, emphasizing practical help over classroom-style learning. The conversation touches on the local connection, where Haney points out the importance of having a local presence, whether through headquarters or significant operations, as a criterion for their investment. A significant part of the discussion revolves around the concept of "the backyard advantage," which refers to the community and network effect of having local investors and mentors actively involved in nurturing the startups. Haney shares stories of how the Growth Factory has leveraged local partnerships and resources to foster a thriving startup ecosystem in Sacramento. Finally, the conversation shifts towards the future. Haney expresses his ambition to replicate the Growth Factory model in other regions, leveraging their learnings and network to create similar local ecosystems across the country. He highlights the importance of community-driven economic development and how it can significantly impact regions that are typically overlooked in the broader venture capital landscape. Chapters 1. Introduction to the Guests and Program (00:01.46 - 00:28.59)

2. The Growth Factory Overview (00:28.59 - 01:38.44)

3. Local Connections and Community Building (01:38.44 - 02:46.20)

4. Sacramento's Business Environment and Attractions (02:46.20 - 04:49.35)

5. Origins and Evolution of The Growth Factory (04:49.35 - 07:06.95)

6. Accelerator Model and Investment Strategy (07:06.95 - 09:40.81)

7. Community Impact and Local Economic Development (09:40.81 - 11:52.27)

8. Future Plans and Expanding the Model (11:52.27 - 14:56.11)

9. Local Challenges and Entrepreneurial Opportunities (14:56.11 - 19:19.98)

10. The Power of Local Storytelling and Community (19:19.98 - 25:15.75)

11. Investment Criteria and Portfolio Management (25:15.75 - 28:04.84)

12. Closing Thoughts and Future Directions (28:04.84 - 40:53.24)