2009 was ‘transformational’ year for RMI2

For the Rocky Mountain Innovation Initiative, 2009 will be remembered as an evolutionary year.

While a majority of the business world went into “hunker-down” mode during the economic downturn, the business incubator program expanded in terms of geographic reach and programs and paved the way for a new state-of-the-art facility. It doubled the number of companies it serves and continues to screen applicants at a rapid pace.

RMI2 was founded in 1998 as the virtual Fort Collins Technology Incubator and has now evolved into a multiple-location, regional nonprofit serving 18 companies – up from just five in 2007.

“I don’t really know where to start,´ said RMI2 Executive Director Mark Forsyth in trying to sum up the year’s biggest accomplishments. “It really was a transformational year for us.”

Perhaps the biggest win for the organization in 2009 was landing the financing needed to move forward with a building project years in the making. The Fort Collins Urban Renewal Authority will supply $2.8 million in tax increment financing for the $7.1 million, 31,000-square-foot project. It will get an additional $1.8 million from the state-supported New Markets Tax Credits, resulting in long-term debt to RMI2 of about $2.5 million.

“Without the strong partnership with Fort Collins, (the financing) probably wouldn’t have happened,” Forsyth said.

The city’s support of RMI2 has so far kept a roof over the heads of the organization’s expanding membership. RMI2 offers startups below-market leases at four city-owned properties. Most recently, RMI2 expanded into the former Island Grove Regional Treatment Center on West Mountain Avenue. With new clientele and existing incubator companies ready to expand, that space is pretty much full.

Angels in the wings

Another major milestone for the organization was the passage of House Bill 1105 – the Colorado Innovation Investment Tax Credit introduced by state Rep. John Kefalas, D-Fort Collins. The credit, which goes into effect on Jan. 1, will offer tax credits to investors in qualified startup companies. The credit is expected to spur angel investment, which has been impacted by the recession just like any other funding mechanism.

Passing the angel investor tax credit represented RMI2’s first foray deep into the world of politics, with representatives from the organization heading down to Denver to testify in support of the bill. Forsyth, for his part, was pleased with the process.

“I was told it never goes that smoothly,” he said.

Proceeding with relatively few hang-ups turned out to be a theme throughout the year for RMI2, especially for the number of projects it undertook. In addition to working on financing, legislation and helping startup companies shift into high-growth mode, the organization laid the groundwork for several new programs launching next year.

RMI2 will launch the Kauffman Foundation’s FastTrac accelerated entrepreneurship program in March. It will also start a formal bio-incubator program for bioscience firms.

“I didn’t imagine that everything would come together so well,” Forsyth said. “I didn’t realize how much support there was across the community.”

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