Energizing an Ecosystem: Brewing 1 Million Cups

Energizing an Ecosystem:

In what some might consider an ironic twist, technology seems to play a lesser role in building a local entrepreneurial community for startups than good old-fashioned face-time and word of mouth. That’s one of the key findings in a paper by the Ewing Marion Kauffman Foundation that surveyed participants in 1 Million Cups (1MC), Kauffman’s popular entrepreneur educational program launched in Kansas City, Mo., in April 2012.
March 2013
Senior Analyst Kauffman Foundation

1 Million Cups
Jared Konczal

Brewing

Yasuyuki Motoyama
Senior Scholar Kauffman Foundation

Fostering economic independence by advancing education and entrepreneurship

with the Kauffman Foundation: Nick Seguin, Cameron Cushman, and Nate Olson. name 1MC references the stereotype 1MCTheattendance

communities.

has grown rapidly, driven primarily by word of mouth.

1% OTHER WEBSITE
OTHER OTHER ESHIP GROUPS TWITTER % 10% 13 8%

NOT EARNI NG NOT FULL- FULLTIME TIME 26% FOR STARTUP 74%
EAR
NIN G REVE NUE

250 200 150 100 50 0
April 2012
ATTENDANCE OVER TIME

1MC WEBSITE

WORD OF MOUTH

67%

O

Business acquaintances

Contagion of Community Word of Mouth in Building an Entrepreneurial Ecosystem

Venture capitalists

Did not use any financing

About 2x month

1x month
About

First time
0 5 10 15 20

Attendance is frequent and retention is high.
25 30 35

Government grant

Friends

42%

11%

2

%

% 4% 8

11% 11% 13%

23%

66% attend two or more times each month, and 42% attend almost every week.

87 46% fun
Have

%entrepreneurs

for Attending

AG E

Reason

AT TE

Connect with other

1MC Migration Patterns
Attendees are a mix of KC natives who either attended a local university and stayed or attended outside the region and returned, and those who moved to KC before or after college. %

Attendees Demographics

check it out

Just to

46%

for my company

24%ideas Find 12% people

Generate or test new

From KC; attended local univ.; never left

35

55–64 45–54 8% % 17or younger 3 % 18–24 11%

ND EES

6

From KC; outside univ.; came back

From outside KC; attended local univ.; stayed

22

% Other

From outside KC; attended outside univ.; now in KC Unknown

13% 15% 19% 18%

GENDER

35–44

Female

16

%

35%

37%

25–34

Male

84%

www.1millioncups.com
* Question asked of 53 respondents who classified as founders/co-founders.

Family

weekly

Angel investors

Almost

3

Personal or business bank loan

Personal or business credit card

79%

Savings

Jan 2013

W

RE

SPO

R N D E N TS FI

S

TH

AR

E

Financing Sources*

D

4%

1%

UP

6

The majority of 1MC founders and co-founders are early stage, but report working full-time in their startup and having some revenue. *

ENUE 36% REV

STA

RT

H

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