Funding ‘launches’ new range of free services

That’s when a group — business owners, chamber leaders and community stakeholders — came together to form what’s now know as The Launch Place.

Previously called the Southside Business Technology Center — and still technically the legal name — the now Danville-based nonprofit continues the original mission to provide consulting services to businesses. In recent years it added another aid in the form of seed investments for technology companies.

Now, a recent grant of up to $1 million will expand those offerings to include legal and financial advisory services.

The grant is designed to help small- and medium-sized businesses that face challenges and want outside advice, Eva Doss, the president and CEO of The Launch Place, explained to the Register & Bee in an interview last week.

It’s also there for new companies or an entrepreneur who wants to start one.

“And we don’t charge for that,” Doss, who’s been at the helm of the nonprofit since Feb. 14, 2005, said.

Depending on the project, they can allocate 10 or 20 hours of consulting.

“As you’re starting out, you can receive these consulting hours from us free of charge,” she said. “And you can receive legal advice as to how to establish your company or any challenges you might have about growing your company, or what are the basic principles of accounting and financial management.”

The more complicated services — like a strategic plan that takes six months to develop — will still come at a charge.

The money comes from an expansive federal program called the State Small Business Credit Initiative that set aside $10 billion devoted to providing services to “very small businesses,” Varun Sadana, the vice president of The Launch Place, explained.

That overall amount includes $200 million for technical assistance programs distributed throughout the nation. Virginia received $4.1 million of that funding and The Launch Place was approved for up to $1 million.

Tracing its roots back 19 years, The Launch Place has grown from one employee to three full-time workers, two consultants and a host of volunteer experts.

Now it’s a self-sustained operation — the goal from the beginning — generating revenue from consulting fees in the more in-depth endeavors and bringing a return on investment on the technological side.

The Southside Business Technology Center first launched in Martinsville after being approved for a grant in August 2004 from The Harvest Foundation, that area’s equivalent of the Danville Regional Foundation.

“Since then we have expanded,” Doss said of the Southern Virginia operation.

It was in 2008 that the Danville Regional Foundation sponsored the opening of the Danville office.

Even after 19 years, clients continue coming back. The Launch Place can do a deep dive inside a business when the operation wants to streamline or look at an expansion.

The name change coincided with a new investment aspect launched in 2012 specifically for technology companies.

“Even if it’s a great idea, even if it’s a great thing, these startup companies need investment capital,” Doss said.

That started a conversation with Karl Stauber, who was the president and CEO of the Danville Regional Foundation at the time.

In what was called an “unprecedented” $10 million grant from the foundation, The Launch Place was able to grow the consulting services and provide seed money for technology investments.

Since then, more money flowed from the foundation to aid technology-based companies.

The funds aren’t grants, instead it’s an investment that ranges from $100,000 to $250,000 in exchange for stock.

The goal is for the company to sell at some point, allowing The Launch Place to recoup the investment at a higher rate.

Prior to this seed funding, an idea was floated for an angel network — basically a group of investors — to start.

Those talked started in 2008 before the economy turned sour and the Great Recession, as it’s known now, started.

“We had to abort,” Doss explained.

But it turned out The Launch Place had some if its most busy years from 2008 to 2011 with companies struggling to stay a float.

Doss said they received calls for consulting on reorganizations, mergers and buyouts.

By 2011 — as is customary after a downturn — more startup ideas started to grow in the region.

Aside from big dollops of money coming from seed funding, there are smaller dollar amounts available from a pre-seed pot. That’s for businesses that aren’t yet established and still in the infancy.

“They still need to fine-tune much more,” Doss explained. In the technology world, that means making sure there’s a demand for a pitched gizmo. To find out, a smaller amount of money is spent to do interviews and talk to potential clients.

“And when the company has achieved that, then they will have a potential to receive additional funding from the seed fund.”

“The investments are only for technology-based companies … that will sell at one point so we can recoup our investment,” Doss stressed of a point that’s often confused. “The business consultancy services from the very beginning are available to any small business, you do not have to be a technology company.”

For consulting work, they’ve helped Averett University, the Arc of Southside and traditional businesses.

For Doss, one of the success stories is Jeff Bond’s Solex Architecture.

“He will never take credit for his success,” Doss said of the founder and owner of the architectural firm.

After graduating from Virginia Tech, Bond came to The Launch Place because he wanted to open his own establishment. He worked out of space at The Launch Place, a free option for up to a year.

“And ever since then he has been growing,” Doss said. “And ever since then, when he has some business questions, he always turns to us.”

The Launch Place also helped Danville’s 2 Witches Winery & Brewing Company with business planning.

“They got established, and ever since, they’re are continuous clients of ours,” Doss said.

Then there’s The Butcher’s Block in Dry Fork. The Launch Place was able to help that small business secure grants that revamped the entire shop, according to Sadana. Now it’s a United States Department of Agriculture inspected site, which has helped it grow.

However, sometimes it’s not always a win for the business. Just because The Launch Place provides consulting, it doesn’t mean the results will be what owners want.

“You’re solving a problem that doesn’t exist,” Doss said of some thing she’s encountered over the years. “Just because you paid us to do the study, it doesn’t mean you’re gonna have a yes.”

To find out if The Launch Place can help a business, Doss said the easiest thing to do is send an email listed for all employees at thelaunchplace.org.

“Don’t be afraid to call us even … if you’re not an IT company,” she said, again referencing the somewhat confusing nature of offerings.

“If you are an existing company and existing firm that is either expanding, has some difficulties, figuring out the future needs and organizational restructuring, any business problem you have, don’t be afraid to call us” she said. “And if you’re a startup, also, it’s a phone call away.”

Even if hey may not be able to help, they can likely pass along connections and resources for someone who can.

“If we don’t know your problem, we cannot help you,” she said bluntly.

Still after nearly 20 years, many people have either yet to hear of The Launch Place or fully understand its offerings.

Even when it hosts Ideafest — a business pitch competition — there are about 130 applications from all over Virginia and North Carolina.

“We don’t get enough applications locally,” Doss said, even though details of the yearly event are well advertised.

She said it’s the same with the Big Launch Challenge, another competition targeting startups across the nation.

The Launch Place has invested in 27 companies, Doss said, when asked why she’s stuck with it for 19 years.

“And they are growing every day, it’s a different challenge,” she explained. “It’s like raising children — at times it feels like — but it’s really good to see them grow and be successful.”

She also likes learning about new technology that companies are pitching. But another aspect involves the city itself.

“And also what has happened with the Danville Regional Foundation’s grants in the area and other infusions of talent and capital into Danville, it’s just really cool to see how far the city has come and the region,” she said. “And we just like to be part of it.”