Six early-stage companies recently were accepted into the BLUEPRINT Accelerator Network, allowing a new batch of business owners access to free office space, professional services and mentoring.
Hoping to jumpstart the next Regeneron Pharmaceuticals or PepsiCo, the Westchester County Association launched the initiative a year ago by calling on the area”™s landlords, lawyers, accountants and marketers to offer their services to entrepreneurs free of charge.
Rather than spend money on rent, for instance, program participants can invest their money in hiring new employees or in product development to accelerate their growth.
With more than 35 partners in real estate, banking and professional services, the WCA hopes to initially support 25 to 30 startups every year. Ten regional banks have also set aside $250 million in debt financing for those that qualify.
“We”™re looking to help accelerate existing businesses,” said William Mooney Jr., WCA president. “This will bring in new companies and let others know this is a good place to do business.”
The six new companies initiated into the program are Lola Granola Bar, a Bedford Hills organic granola company; Mobile Health One, a digital health care platform; Nuvita, an online employee wellness program; Sternbach & Rose, a Valhalla accounting firm; W@tercooler, a Tarrytown coworking space, and Yonkers Brewing Co.
In order to participate in the program, David Crane of Mobile Health One said he even plans to relocate his Long Island-based company to Westchester County.
All companies accepted into the network must agree to remain in the county for at least five years after “graduating” from the program. Crane said the resources available for entrepreneurs in Long Island “aren”™t anywhere near” the amount in Westchester. He estimates he”™ll save up to $100,000 on rent alone ”“ enough to hire one or two people. As a bonus, the move will also land the company closer to two of its biggest clients, White Plains Hospital and Scarsdale Medical Center.
“Rent is the last thing I want to spend money on,” Crane said. “This allows me to spend money on something that adds value for customers.”
With an estimated 6 million square feet of vacant office space in Westchester, the initiative aims to both immediately fill empty space and to generate a future demand for real estate.
In leases negotiated with a landlord, businesses enjoy one year of free rent followed by a second year of rent 50 percent off market rate. The remainder of the lease term is then set at market rate.
So far at least nine office building owners have joined the initiative: BioMed Realty; GHP Office Realty; Heritage Realty; Heyman Properties; Mack-Cali Realty Corp.; Normandy Real Estate Partners; Reckson, a division of SL Green Realty Corp.; RPW Group; and Silverman Realty.
Christian Wielage, CEO of PlanGuru, the first company accepted into the network, said he could confidently say his software company in White Plains wouldn”™t be where it is today without the accelerator”™s help over the last year.
This month Wielage plans to launch a new product. Since joining the network, his customer base has grown 50 percent, he said. The company sells financial forecasting and performance review software for small businesses.
“Without the accelerator, we”™d still be home-based,” Wielage said. “We”™d have the same products but not the team and infrastructure in place to take the company to the next level.”
In addition to free office space in downtown White Plains, compliments of Reckson, Wielage said he greatly benefited from the free accounting and legal services which helped him structure a round of Series A financing. Harrison Edwards Inc. also helped with public relations and marketing.
“The savings have helped me hire at least three to four people,” Wielage said. “And it has absolutely translated into that.”
