There’s been a shift in how Duke Energy develops smaller businesses relevant to its success, causing some concern in the local tech community, according to two sources who didn't want to talk on the record.
But Managing Director of Economic Development Marc Hoenstine told Orlando Inno “there’s no truth to the rumors” that recent layoffs indicate Duke Energy will stop backing startups in Central Florida.
Instead, he said, “we’ll be doing it differently."
The concern in the local tech community started after two team members in his department, Director of Innovation and Competitiveness John Fremstad and Marketing Manager Lisa Rain, were let go in February as part of a limited cost-cutting company reorganization.
Hoenstine said Fremstad and Rain worked directly with companies whose innovations could further Duke Energy’s objectives and improve services, though he didn't name the companies. When Fremstad was hired in 2013, his job was to recruit data center businesses in North Carolina, South Carolina, Florida, Kentucky, Ohio and Indiana.
Now, Duke Energy has discontinued that aspect of its economic development operations, said Hoenstine.
That's because Duke Energy’s leadership team realized some of the area’s existing entrepreneurial support organizations — such as Plug & Play Tech Center — are well-suited for innovation, so the company will invest dollars in those groups rather than engaging in direct, hands-on initiatives as it did in the past, he said. “We feel that that's a much better way to go about the innovation initiatives that we want to achieve within our community."
Why Duke supports startups differently now
Hoenstine believes indirectly helping startups by funding outside entrepreneurial support organizations is a way of letting the community decide what it wants. “[This way communities can] achieve the growth they want to see. We're not going to go and force development onto [communities]."
Hoenstine said Duke Energy chose Plug & Play Tech Center as one of its partners in economic development in October 2023. The Sunnyvale, California-based startup accelerator made its Florida entrance official Feb. 1 when it announced the opening of its Research Park office.
In April 2023, Hoenstine joined representatives from Orange County government and the University of Central Florida on a trip to Germany where they saw Plug & Play operations first-hand.
“What I've noticed about Plug & Play is they have had great success. I think the percentage of unicorns is one of the highest amongst accelerators,” he said. “The way they bring together mature companies with startups has been very interesting to solve problems that companies in business for a long time have not been able to solve.”
Even though Duke Energy won’t be leading the Plug & Play accelerator, “we are going to be in an advisory capacity as they get started.”
Sign up here for The Beat, Orlando Inno’s free newsletter. And be sure to follow us on LinkedIn, Facebook and Twitter.
