Inaugural Hyperspace Challenge Successfully Brings Defense Community and Startups Together in Albuquerque

Inaugural Hyperspace Challenge Successfully Brings Defense Community and Startups Together in Albuquerque

 

In April 2018, AFRL New Mexico and ABQid began working together on Hyperspace Challenge. This one-of-a-kind program accelerates innovation for our defense community by exposing defense users to tech startups’ cutting edge capabilities. It also provides meaningful customer discovery opportunities for participating startups that they couldn’t get anywhere else. Hyperspace Challenge also promotes Albuquerque and New Mexico as a hub of technological innovation by bringing together successful startups and defense innovators in Albuquerque. This benefits our community’s long-term economic prosperity!

The inaugural Hyperspace Challenge program culminated with Hyper Accelerator Week, November 13-16, 2018. This multi-day event, hosted in Albuquerque’s Lobo Rainforest Building, convened 10 of our country’s top geospatial data analytics startups and a group of defense innovators to explore how startups’ capabilities could address 5 carefully-defined challenges in the defense community.

The 10 startups invited to attend Hyper Accelerator Week were selected after participating in a month-long webinar series in September 2018. The series helped startups learn firsthand from defense innovators about their technological obstacles. Startups then submitted proposals describing how their capabilities could address one or more of those problems. A team of tech, business, and defense experts evaluated these proposals using a rigorous rubric and helped select the 10 finalists.

During Hyper Accelerator Week, the 10 finalist startups met face-to-face with the defense innovators from the webinar series in intensive breakout sessions designed to give startups and defense innovators the opportunity to figure out how startups’ capabilities could be used to address specific defense community needs.

On the evening of November 15, startups took their learnings from the breakout sessions and pitched their solutions in a state-of-the-art Pitch Competition. A panel of three judges, including Matt Fetrow (AFRL New Mexico), Carlos Romero (NM Tech) and Bill Hartman (Ion Linac Systems) evaluated the startups’ pitches using a comprehensive rubric. CrowdAI (1st place), Enview (2nd place), and NOVI LLC (3rd place) received high scores and were awarded $25K, $15K and $10K, respectively, to expedite follow-on activities related to establishing acquisition or contracting opportunities with the Department of Defense.

We would like to congratulate the 10 startups who joined us in Albuquerque. We’d like to thank all of the defense innovators and business and tech experts who gave their time to Hyper Accelerator Week. The success of this event would not have been possible without their support.

We look forward to the next iteration of this program and to accelerating innovation for the defense community; to offering startups incredible customer discovery opportunities; and to promoting our city and state as a hub of technological innovation! To stay up-to-date on the launch of the 2019 Hyperspace Challenge program, follow us on social media on Facebook and Twitter. If you have any questions, please contact us at contact@hyperspacechallenge.com.

Guest Column: Opportunity Knocking by Deborah Burns, CEO, investUS LLC

Opportunity Knocking in New Mexico:
A Guest Column by Deborah Burns, CEO investUS LLC

In this guest column, Deborah Burns, CEO, investUS LLC talks about the investment value to be found in locating businesses within Opportunity Zones! She explains why startup CEO’s should be thinking of locating operations in an Opportunity Zone, and using a fund to help their investors avoid capital gains taxes.


One of the best kept secrets of the December 2017 tax legislation is the “Investing for Opportunity Act”.  It’s a timely program offering capital gains tax deferment and reduction to any US taxpayer that invests their capital gain into an Qualified Opportunity Fund (“ QO Fund”) that in turn invests in Opportunity Zone investments.  New Mexico Economic Development Department did a great job nominating 63 eligible New Mexico zones that have now been approved as Opportunity Zones ( interactive map).

The US Treasury department estimates there is over $7 trillion in unrealized capital gains that could be invested into Opportunity Zones given the tax deferment and reduction incentives.    The best feature for Opportunity Zone investment recipients is that the QO Fund investment in their company is also capital gains tax free if it remains invested for at least 10 years.  QO Funds will be a new conduit of investment capital flowing into Opportunity Zone investments driven by the desire to stay invested for at least 10 years to be capital gains tax free upon the exit.

To take advantage of these tax savings, the US tax payer must invest in a QO Fund within 180 days of realizing the taxable gain. It can be a taxable capital gain of any asset by any US taxpayer.  The QO Fund can invest in any qualified business or asset in a US Opportunity Zone excluding “sin” businesses consisting of golf courses, country clubs, massage parlors, hot tub facilities, race tracks or gambling facilities, and liquor stores as defined in the tax legislation.

One would wonder why you haven’t heard of this tax incentive or any promotions for QO Funds.  The lack of press coverage for the legislation hasn’t been helpful. To be sure, putting together a Qualified Investment Fund has its challenges. First, the IRS has yet to write the tax rules for the legislation and there is no indication when it might be forthcoming. To put together a QO Fund today requires hiring a sophisticated tax advisory firm that has a dedicated team focused on the new legislation and experienced tax counsel.  Second, as with any private equity fund, the fund manager must comply with federal and state securities laws, provide fund administration and reporting, financials statements and tax filings for investors. This is harder than it seems since the IRS has not yet created the reporting requirements nor the tax forms. Then there are the various liabilities of any securities offering and investment transaction.  All in all, QO Fund management is a challenging undertaking.

Today, investUS, as fund manager, is actively reviewing investment opportunities in New Mexico Opportunity Zones that are shovel ready now or will be ready for investment in early 2019.

For more details on the tax legislation, tax savings computations and recent IRS FAQ’s, contact your tax advisor or tax attorney.  For more information on the investUS QO Fund, contact Deborah Burns at dburns@investUS-eb5.com.

 

ABQid welcomes Harold Lavender

We are excited to announce that Harold Lavender has joined the ABQid team!  Harold will be working to expand what ABQid can do for the community and build awareness of our startup accelerator.  As a well known lawyer, businessman, and State Investment Council member, Harold will be a key asset in helping ABQid accomplish its goals.  His experience and passion for helping the local entrepreneurial community is vital to the ABQid mission.  We are very grateful to have Harold aboard and can’t wait to begin working together!

Harold

Everybody Has A Role To Play In Reinventing Our City

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ABQid News Release
Contact: Kathleen Gardenswartz (505) 681-6791, kat@abqid.com

Everybody Has A Role To Play In Reinventing Our City
ALBUQUERQUE, NEW MEXICO (Apr. 15, 2015) – The upcoming ‘Reinventing Our City 2.0: Growing Albuquerque’s Startup Economy’ event hosted by Albuquerque Business First on April 23rd will explore our city’s efforts to grow a vibrant entrepreneurial ecosystem. A handful of entrepreneurs are lined up to discuss the challenges and rewards of starting a business, including how their environment affects their
experience. While we all stand to benefit when our local companies achieve success, it is not always clear how each of us can help them.
Webb Johnson, Managing Director of ABQid, has witnessed the incredible impact of community members rallying around local startups and believes everyone has a role to play in helping them achieve success. “It
can be as simple as being willing to meet with an entrepreneur, making an introduction, or supporting them on social media” he explained. “We also have community members who share their expertise with local
entrepreneurs by leading a lecture or mentoring during our Office Hours program on Wednesday afternoons,” Johnson continued. He made it clear that you don’t have to fit any Silicon Valley stereotypes in order to make an impact on Albuquerque’s entrepreneurial ecosystem and highlighted a diverse group of ABQid volunteers who are leading the way.
Zach Lerner is one of these amazing volunteers. Zach may not look like your average lawyer, but he has quickly established himself as a local expert in venture law. Despite running a growing law practice, Mr. Lerner regularly makes himself available to local entrepreneurs for consultations during ABQid’s Office Hours program on Wednesday afternoons. Furthermore, he donates his time as prizes for events like
Startup Weekend Women’s Edition. “I truly enjoy helping entrepreneurs navigate legal issues associated with starting a business. From the first time I heard that a local accelerator would be launching in Albuquerque, I knew that I wanted to get involved in some manner,” said Lerner. Joanie Griffin is another community member stepping up to make a difference for local entrepreneurs. A marketing guru, Ms. Griffin was instrumental in the success of ABQid’s recent Ski Lift Pitch Contest in
Taos. The ABQid Ski Lift Pitch Contest provided unparalleled exposure for New Mexico entrepreneurs and was even featured on NPR’s national radio show ‘Marketplace.’ Like Zach, Joanie generously offers her
time to local entrepreneurs seeking guidance and her desire to see Albuquerque’s economy thrive is unmistakable. “Nothing would make me happier than seeing an explosion of successful small businesses in
Albuquerque,” stated Griffin. Valdamir “Vic” Berniklau has been an incredible ally for Albuquerque’s entrepreneurs for some time now.
Vic is a certified SCORE mentor, regular ABQid Office Hours mentor, and retired U.S. Department of Energy executive. He can be found all over town advising local entrepreneurs and he always has a smile
on his face. Inspired to make your own impact on our city’s growing entrepreneurial ecosystem? Join us for the Reinventing Our City 2.0 event on April 23rd from 7:30- 9:30am at the Albuquerque Convention Center to learn how. We can’t wait to meet you.
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For more information about ‘Reinventing Our City 2.0: Growing Albuquerque’s Startup Economy’ and to
purchase tickets, visit: http://www.bizjournals.com/albuquerque/event/115931#eventDetails

CNM collaborates with ABQid to teach students how to Kick-start their Business Idea!

by Tom Darling, CNM

On April 22nd, on the main campus of Central New Mexico Community College, a new step was taken in the development of the economic development of Albuquerque. Over 70 people attended a two hour boot camp titled “Kick-start your Start Up” to learn a new way of getting their business idea on to one page, in a way to validate their product, idea, and concept with the customer in mind. Students and community members were paired with local entrepreneurs, business owners and venture capitalists to work through their innovative business ideas in order to get them one step closer to reality. Earlier this Spring Central New Mexico Community College announced to the Albuquerque Economic Development community that we were opening the STEMulus Center in downtown Albuquerque within the new Innovation District to help stimulate and grow the local business community. This center will provide students and community members the opportunity to develop businesses, learn much needed skills for the ever growing workforce needs of the city, develop product prototypes, and grow their businesses. CNM partnered this Spring with ABQid to develop the Kick-Start your Start Up boot camp to introduce budding entrepreneurs to the concept of the Business Model Canvas method of business development with the intent to spread the concept throughout the city. As a result of the event on April 22nd, many of the attendees also participated in the 2014 Start-up weekend event hosted at the CNM main campus. CNM has committed to working with the ever growing economic development community of Albuquerque to help foster innovation and new business development in a way that brings together the community to grow new businesses in the city. We look forward to working with ABQid and the City of Albuquerque to make great strides in strengthening the economy of central New Mexico and securing our economic future!