Program Overview, Benefits & Timeline

Israel, “The Start-up Nation,” excels at technological innovation. But the market for its technologies is abroad, with the U.S. representing the single largest market opportunity. Therefore, its entrepreneurs must operate in unfamiliar territory.

To increase their chances for success, supportive business development services should be made available to bridge the gap between the technology’s birthplace in Israel and paying customers abroad. This should include a proven methodology to help the entrepreneurs test their value proposition in the U.S. market and find American customers, as well as provide seasoned business executives to mentor the Israeli entrepreneurs, an “instant infrastructure” of critical service providers (e.g., legal, accounting, banking, insurance, human resources, real estate, etc.), and facilities from which to work, that are close to potential customers.

The Maryland/Israel Development Center and Israel Innovation Authority (IIA) are announcing this joint program for the first time to provide a unique opportunity to Israeli start up companies seeking to expand their market presence in the US.

MarketReach America, modeled on the Lean Startup program and the National Science Foundation’s (NSF) and National Institutes of Health’s (NIH) successful I-Corps (Innovation Corps) entrepreneurial training program for American scientists and entrepreneurs will provide this continuum of business development services on both sides of the ocean for a select group of emerging Israeli advanced technology companies so when these young companies do venture abroad, they are prepared to succeed. The I-Corps/Lean program is the premier federally supported program for innovation and is the training vehicle for thousands of U.S. companies that receive or are seeking federal SBIR grants.

Customer Discovery

The fundamental principle of Lean Startup and I-Corps is to ensure entrepreneurs are developing products that solve customers’ immediate needs with a product, technology or service they are willing to pay for. Called “evidenced based entrepreneurship,” it trains entrepreneurs to use an extensive “customer discovery” and evaluation process to determine customer needs and target product development accordingly prior to the completion a new product or service and its introduction to the market.

For foreign entrepreneurs who cannot adequately understand American customer needs from abroad, this is doubly important. They need to be able to understand customers and markets, and what influences them. To do that, they need to be there.

Program Benefits

The value and opportunity of MarketReach America is that it provides a proven entrepreneurial development methodology to the participating business people, trains them to make invaluable customer connections in the U.S. market, provides a model and advice on scaling up a business, and integrates them into the U.S. market through long-term involvement of a Board of Industry Advisors. The knowledge and relationships developed during the program will help the participants to successfully launch in the U.S. market.

MarketReach America will provide:

1. Access to potential customers and design partners
2. A proven “customer discovery” methodology to determine U.S. customer’s needs
3. Training on development of the Business Model Canvas
4. Initial training in Israel followed by an in-residence customer discovery program in Baltimore near potential American clients and partners
5. Insight to “pivot” from preconceived notions to develop and deliver a “minimum viable product”that customers are willing to pay for
6. Training to inculcate this knowledge into the culture of the business
7. Guidance to determine the optimal strategy for market penetration and distribution
8. Access to business development services that will help them find customers and partners in the Maryland, Washington, DC and Mid-Atlantic region.

Timeline

• Participant Selection
  • Program announcement – November 1, 2018
  • Application deadline – Deadline extended to Jan. 6, 2019
  • Participant selection – January 31, 2019
• Entrepreneur Training in Israel – February 24-28, 2019
• Remote Mentoring and Training via Skype with Program Manager, March 1 to May 10, 2019
• Customer Discovery Program in Baltimore – May 12 to 24, 2019
• Follow up Skype sessions – May 27 to July 22, 2019
• Post Program Support with company advisory committees – May 2019 to May 2020

Program Components

Entrepreneur Selection

MarketReach America participants will be selected through a competitive application process that includes a written application, in-person interviews in Israel by the Maryland/Israel Development Center and the IIA, and by Skype interviews with the certified I-Corps trainers and program managers for final selection.

The program is intended for Israeli start-ups who have shown creativity in technological innovation, a team with track record of entrepreneurial success,international business experience, and have received preliminary market validation through initial sales, private sector investment (not just government funding), or industry awards or recognition.

• Criteria
  • Medical device or digital health company
  • Company must have a working protoype
  • Company must have raised private sector funding, not just government funding
  • Entrepreneurs must speak English

• Application Process
  • Fill out written application on Maryland/Israel Development Center website, MarylandIsrael.org/…
  • Preliminary interview by Maryland/Israel Development Center Israeli representative and IIA representative involvement in the selction/interviews
  • Face to face interview by Maryland/Israel Development Cetner Executive Director and IIA representatives
  • Skype interview by NSF certified ICorps trainers and program managers for final selection

Entrepreneur Training in Israel

The instructors will travel to Israel to conduct the initial three-day training session for the selected entrepreneurs and to prepare them for the in-residence “customer discovery” program in Baltimore, Maryland. The Israel-based training will emphasize the principles and methodology of the program; the importance of customer discovery vs. selling; techniques for effective customer engagement and interviewing; sequencing of hypotheses development, testing and product pivots; and methods for measuring the startups’ value and growth hypotheses.

Customer Discovery Program in Maryland

The heart of the program is the two-week in-residence, hands-on program at the University of Maryland, Baltimore, where the startup company teams will conduct intensive customer discovery meetings. The entrepreneurs will meet with as many potential customers as possible, a minimum of 30, as well as others who will affect the success or failure of their business such as strategic and channel partners, key opinion leaders, regulators and relevant scientists and engineers. They will also participate in both group and individual training sessions with the program managers. The results of the interviews will guide continued product development pivots back in Israel and U.S. market entry.

Product Pivot and Launch

Upon completion of customer discovery in Maryland, the entrepreneurs will return to Israel and continue in an eight-week product pivot and launch program and continue to develop their company, product and U.S. market penetration activities. They will:

• Implement the product “pivots” identified during the customer discovery phase to deliver a “minimum viable product” to customers as quickly as possible
• Participate in weekly individual company Skype and online discussions with the program managers
• Participate in weekly group webex discussions with the program managers
• Finish the business canvas, presentation, white papers and pitch
• Continue with customer discovery
• Plan next steps for U.S. market penetration and business development

Post Program Support

Recognizing that scaling up a company and successfully entering the U.S. market are long-term processes, the Maryland/Israel Development Center and Israel Innovation Authority will continue to provide value-added services and support to the selected entrepreneurs:

• Each company team will be paired with a Board of Industry Advisors composed of experts in the entrepreneurs’ sector, executive mentors and relevant service providers to provide mentoring,subject specific advice and “door opening” to American customers, suppliers, service providers,distributors, relevant technical experts including scientists, engineers and medical professionals, and regulators and government officials
• A package of service provider discounts will be offered.
• Industry specific support will be available through targeted resources in Baltimore, Maryland and the Washington, DC region including:
  • BioPark at University of Maryland, Baltimore for biotechnology, medical device and digital health companies with offices,wet labs, an animal facility, and access to medical professionals, scientists and a diverse patient community
  • LaunchPort™, the medical device manufacturing accelerator in Baltimore, a project of the MVR Company (Annapolis, MD) and The Quinn Group (Indianapolis, IN), with shared manufacturing equipment, space and expertise
  • Technology incubators including Betamore, the Emerging Technology Center and bwtech@UMBC, the incubator at the University of Maryland Baltimore County with a specialized cyber security program.
• Introductions to sources of capital including the Maryland Department of Commerce, Maryland Technology Development Corporation (TEDCO), the Abell Foundation, Baltimore Angels, local venture investors and angels and others.