When Kuhcoon relocated to the Scranton Enterprise Center in June, founders of the startup technology company knew they had achieved a milestone.
"The incubator really gave us the legitimacy and the credibility we needed as young entrepreneurs," said company Chief Executive Andrew Torba, 21, of Moosic. "Before we had this, we were operating out of a shed in my parents' backyard."
Kuhcoon, a service company that builds and maintains social networking accounts for clients, follows other startups that have used the business incubator as a launching pad.
In March, the incubator will observe the 10th anniversary of its opening.
"We consider it a great success," said Austin Burke, president of the Greater Scranton Chamber of Commerce.
The chamber constructed the $9.5 million, 62,000-square-foot building at 200 Lackawanna Ave. in two phases after a 1999 research report resulted in the establishment of the Great Valley Technology Alliance, which promotes development of a high-tech regional economy.
The report, prepared by the Battelle Memorial Institute, an Ohio nonprofit research group, also endorsed the development of a low-rent office complex for startup companies.
"One of their recommendations was to facilitate the growth of new businesses, new entrepreneurial ventures," Mr. Burke recalled. "The original filled up so quickly, it made sense to go ahead and put the addition on."
The incubator provides discounted rent, high-speed Internet, marketing assistance and access to shared conference and meeting spaces.
Michele Dempsey was operating solo out of an attic in East Scranton before her new architecture, design and planning firm, DxDempsey, moved to the incubator in 2004.
"There's an instantaneous feeling of professionalism," said Ms. Dempsey, who relocated to the Bank Towers building in 2009 and now has seven employees.
She started in a 300-square-foot space in the incubator and grew to a 700-square-foot spot. When executives from a major retail client came to town, she balked at meeting at her small space in the incubator, but they insisted, Ms. Dempsey said.
"They were impressed that we were in a professional building with other startups," Ms. Dempsey said. "They thought that was cool."
Nineteen companies with 154 employees have grown enough to move out of the incubator, Mr. Burke said.
"Most of those companies have stayed local, which I think is a wonderful thing," Ms. Dempsey said.
The building today houses 19 companies with 270 employees.
Kuhcoon landed there after Mr. Torba and co-founder Charles Szymanski of Taylor won the annual Great Valley Technology Alliance business plan competition this year. Kuhcoon has grown to 10 employees from four when it began operations at the incubator, and it has clients worldwide, Mr. Torba said.
"We are doing wonderfully and growing fast," he said. "We are like the advertising agency of the 21st century."
Alumni from the center provide assistance to new tenants, Mr. Burke said, and Ms. Dempsey said being around other new startups helps young entrepreneurs.
"The incubator is just one of a whole number of things we executed under the Great Valley Technology Alliance," Mr. Burke said. "I don't think we have seen all the impact and all the benefits that are going to accrue from the incubator."
Contact the writer: jhaggerty@timesshamrock.comIncubator tenants:
- Kuhcoon LLC is a social media as a service (SMaS) platform built to help businesses create a social media strategy to drive sales by providing them with affordable social media management, data-driven marketing strategies, and a dedicated professional community manager. They moved to the center's incubator floor on May 23.
- Global Exercise Group LLC is a lower-back health exercise education company focused on helping individuals suffering from low-back pain by using a holistic approach. They moved to the center's incubator floor on Aug. 15.
- Angel Star Holdings LLC is a service-disabled veteran-owned small business committed to providing accurate and timely analytical results. Along with accredited labs, the AngelStar team has the knowledge and experience to solve the most complex testing needs as well as periodic regulatory requirements. AngelStar moved to the center on Oct. 1.
- Marshall, Parker & Associates is a law firm that provides elder law, asset preservation and estate planning and administration to seniors and their families. They moved to the center's incubator floor on Oct. 15.
- Perry Wellington Realty LLC is a regional brokerage that offers mortgage, title, real estate for buyers and sellers and a real estate training school as part of their company. They moved to the center on Nov. 1.
- Connie Phieff Speaks offers motivational speaking, executive coaching, workshop facilitation, and leadership mentor for association creativity and sustainability. The business moved to the center on Nov. 1.