A Coachella Valley business incubation program has openedits second outpost in Indiowith the aim of spurring entrepreneurship and job creation in the eastern reaches of the valley.
The Innovation Hub, or “iHub,” has opened its doors at the Greater Coachella Valley Chamber of Commerce at 82921 Indio Blvd. The goal of the pilot program is to help support local entrepreneurs who are creating start-ups. Organizers tohope to lure six to 12 businesses to the Indioshared workspace, where they can work on their operation free of charge.
Businesses in the space can use theWi-Fi and conference room, plusmailing service and front desk support. The Coachella Valley Economic Partnership (CVEP) provides business guidance and support for the entrepreneurs, includingseminars and workshops.
Thefirst iHub was foundedin Palm Springs in 2011and anotherone inPalm Desert is slated to openthis spring.They’rea collaboration between the Greater Coachella Valley Chamber of Commerce and CVEP.
Joe Wallacejoined CVEPabout eight years with the specific charge to launch the iHubs, and later became the organization's CEO.He said that giving business owners tools to help start their businesses gives them a better chance of growing jobs locally.
"Homegrown entrepreneurs, if they have their fundamental needs, won't leave town," he said.
About 85 companies have come through the Palm Springs iHub, and while some failed to launch or have since shuttered, anestimated $33 million has been invested in companies affiliated with the iHub overall, according to CVEP.
Companies that have joined the iHub span a range of industries. While it initially focused on supporting renewable energy companies, it's expandedto incorporate ideas involving health and medicine,app technology, manufacturing and consumer products.
At the iHub, Palm Springs residentBill Schlanger is building alithium-ion battery manufacturer calledEV Enterprises, drawing on his past experience workingin the energy industry.
"There's a great deal of support and coaching that we get from the iHub," he said. "A lot of people come to see it, and we get to meet them and it's a great source of contacts."
Indio Mayor Glenn Miller said the new iHub was "a long time coming," as plans for a business incubator have been discussed for years.
"The most the east valley rises up, the more the rest of our community rises up," he said.
The Indio City Council approved the pilot business incubatorin November. The city increased its annualcontribution to CVEP from $25,000 to $50,000to support the pilot through 2021.
Councilmember Waymond Ferman said that Indio — which isthe most populous valley city with about 90,000 residents and is also the fastest-growing —is in the middle of a business growth spurt.
Gesturing around the downtown areawhere the city is coming up with a new specific plan, Fermansaid younger generations who are making their home in Indio want to be able to start their own businesses there.
"There aregoing to be many opportunities for entrepreneurs," he said.
As the program gets established, CVEP and the city will look into getting additional funding opportunities and a permanent site, per a memo of understanding on the project.
CVEP and Indio are also planning to work with College of the Desert to connect the iHub to the CENIC, which operates a powerful, high-bandwidth computer networkwith more than 8,000 miles of optical fiber.
Applicationsfor the IndioiHub can be found and submitted at www.cvep.com.
The Palm Springs iHubis funded by the city and Wells Fargo. Various programs exist to help companies at different stages of development. Currently, there are 36 companies affiliated with the Palm Springs iHub:
- Seven resident companies are working out of the iHub headquarters near the Palm Springs International Airport andare in the very beginning stages with a proof of concept.
- 11 companies are working in the iHub accelerator campusprogram; these businessesmight be farther along and becoming profit-driven
- Another 18 "virtual" companies who may be based anywhere but could have a physical presence in the valley at some point, and participate in iHub coaching virtually.
Some companies that have gone through the iHub include Indie Power Systems, which designs and manufactures energy equipment and used their systems to energize anoff-grid electrical supply center in Buffalo, Wyoming. Hepplot Wind Energy, a wind turbine company founded by Palm Springs resident Johann Steinlechner, secured two phases of financing for a grid-scale prototype of its patented Vertical Axis Windmill from Los Alamos National Laboratory.
Melissa Daniels covers business and real estate in the Coachella Valley. She can be reached at (760)-567-8458 or melissa.daniels@desertsun.com. Follow Melissa on Twitter @melissamdaniels
