Rocky Mountain Innosphere at capacity

Less than a year after its grand opening, the Rocky Mountain Innosphere is at capacity.

Envisioned as a hub for innovation and tech companies, the three-story Innosphere was half-empty at the beginning of the years but has since leased all of its office space.

The 32,260-square-foot facility, at 320 E. Vine Drive, now counts more than 20 tenants, which include startup businesses in clean-energy, life-sciences and information technology.

“We didn’t expect it to happen so fast,” acting CEO Ryan Speir said of the pace of growth. “It really shows the pent-up demand in the community for innovative companies.”

“The fact that they’re leased up within less than a year of opening their doors is phenomenal,´ said Josh Birks, economic advisor for the city of Fort Collins, which provided a loan to build the Innosphere facility. “It’s a testament to the strength of the business case of an incubator that provides not only services to its clients, but also the physical space.”

The leasing activity at the Innosphere has included the expansion of several tenants, building on the organization’s hopes of creating hundreds of high-wage jobs and attracting more than $100 million in investments and grants to the region. Tenants pay rents that are at or close to market prices.

With the building at maximum capacity, the tech incubator running the Innosphere, which began operations in 2008, can now focus on its primary mission: supporting new and emerging businesses, whether they’re tenants or not.

“It relieves us of having a financial burden to overcome, and we can get back to delivering services,” Speir said.

Progress at the Innosphere has come amid turnover in its ranks and a prolonged transitional period.

In May, Mark Forsyth stepped down as Innosphere CEO to take on a part-time role with the organization. Forsyth joined the entity in 2008 and led efforts to build the new facility and secure financing for the project. His replacement, former city of Fort Collins CFO Mike Freeman, intended to take over this summer, but had to push back his start date until March 2012 to abide with state ethics laws. Freeman helped arrange the city loan to the Innosphere as part of the project’s financing. Amid the shifts, Speir, who has served as Innosphere COO, has taken the executive reins on an interim basis.
Growth at the building is attributed to a range of factors, according to Speir.

Federal Small Business Innovation grants have supported several companies’ expansion. Firms also have benefited from participating in past educational and advisory programs through the Innosphere to navigate beyond the startup phase. Additionally, new projects for companies have developed out of the various regional industry clusters and other collaborations between the Innosphere and the Northern Colorado Economic Development Corp., Colorado State University, and the cities of Fort Collins and Loveland. Private investment, which has been drummed up through several venture-capital and other investor events, has also fed the brisk pace of development.

The Innosphere building is designed to allow companies to shift in and out their office space, in anticipation of somewhat regular turnover as firms may outgrow the premises or need to scale back operations.

Ventria Bioscience is one of the companies that have stretched out in the building. It now occupies three labs. BeginAgain Toys has also relocated within the new building to a larger space following a recent acquisition.

“It’s a very innovative culture, and we really like being close to other companies that are trying to make a difference,´ said Scott Deeter, Ventria CEO. “Although the technologies and the markets are different, the growing pains are the same.”

The makeup of tenants and Innosphere program participants has shifted in line with larger trends. While the organization initially attracted mostly tech business, the Innosphere is now catering to more clean-energy enterprises as the industry has boomed, fed by government grants and private capital and a global push for renewable energy. Biotech and life-sciences businesses have also grown regionally since the Innosphere began in 2008. Speir added that the incubator’s relationships with Colorado State University have helped.

“Companies that have moved here recently, they’ve done so because they see us as a community working hand in glove [with] the city and CSU,” Speir said.

With its tenant mix now relatively settled, the Innosphere is starting a fall session of its FastTrac TechVenture program, which guides startup businesses through early-stage development issues such as how to create marketing plans, hone investment pitches and identify customers.

A new course also is being developed on how to access capital during what some call the “valley of death,” a period between startup and establishment when many companies fail for lack of funds.

Birks said taxpayers should be happy about the city’s investment.

“When the public makes an investment in something, they’re not making it for a strict return-on-investment perspective. They’re looking to see what is the public benefit they get out of it,” he said. “In my opinion, the public benefit we’re getting out of the Innosphere is a greater level of success for our startups, with more startups making it through the valley of death, and job growth.”

As a prominent example, Birks cited the “pretty explosive” growth of Van Dyne SuperTurbo, which was launched in the Innosphere and now has separate offices where it develops its auto-engine superturbochargers.

“Van Dyne was three people [on staff] 18 months ago. They’re now 16,” Birks said. “If they continue on that trajectory over the course of the next several years, there’s a big upside for the city.”

Looking ahead, Speir said the Innosphere has teamed with the Colorado BioScience Association and National Renewable Energy Laboratory, among others, to host events aimed at showcasing its tenants and drawing investors. Speir said Innosphere staff also plans to foster better connections to businesses on the east side of I-25 in Weld County, as well as the Upstate Colorado Economic Development Corp. and University of Northern Colorado.

“Keeping companies here is always a challenge,” Speir said. “If we’re living up to our mission, we’re bringing greater access to capital than has ever happened here in the past.”

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