Founded in 2003 within the bounds of Fort Meade and supported by the NSA, the contractor-turned-tech incubator called the Chesapeake Innovation Center (CIC) was once tasked with scouting the technology of private defense contractors. Today, now out from the shadow cast by the military base, CIC is a non-profit incubator working to mentor and build early stage tech startups as part of the Anne Arundel Economic Development Corporation (AAEDC).
CIC is a non-profit incubator working to mentor and build early stage tech startups
Currently located nearby the gates of the Forte Meade military base, CIC continues to value its relationships with, as Director Michael Tentnowski describes them, the “the 3- and 4-letter agencies.” But CIC’s focus has undoubtedly shifted. The incubator is working towards growing startups into companies that can offer high-paying, tech sector-based jobs to Anne Arundel County residents.
Structure
The incubator’s current class of 9 startups includes entrepreneurs that are working on technology for everything from cybersecurity to healthcare data—with the common theme being a connection to government-regulated industries. The CIC has the capacity to house 10-12 teams, but the location also allows for “planned” expansion.
When companies join CIC it’s understood to be a 2-3 year commitment. Office leases are designated on a yearly basis.
Nationally, the growth and proliferation of tech incubators has become a well recognized news story, but the CIC is far from a traditional incubator.
The organization is primarily funded by Anne Arundle County as part of the AAEDC. Other sources of funds are grants, membership fees, corporate sponsorship and conference room rentals.
Tentnowski, who joined the incubator as its new Executive Director in May, told DC Inno in an interview that CIC takes no equity in the incubator companies nor does it directly invest any money in them at this point. Instead, after members are accepted from a competitive application process, they pay a monthly fee. All of the revenue that is incurred, Tentnowksi said, “goes to expanding programs, lowering membership fees, and/or paying for our leased space to the building owners.”
“I work for the members, and will always do what I can to reduce their expenses when possible,” CIC’s Executive Director said.
Prior to becoming CIC’s Managing Director, Tentnowski, a 22-year business incubation veteran, worked as the Executive Director of the Enterprise Center at Plymouth.
"if I ever start another business it will be in an incubator"
CIC memberships range from $300/mo. to $1140/mo. depending on the size of the office being rented and the services desired by the startup. Regardless of membership tier, however, every startup founder is offered mentors, full access to the office, and CIC-enabled relationships with various federal agencies, law firms, accounting practices and funding sources.
CIC’s office space has a modern design; it’s very clean and efficiently organized, according to Mike Dombo of DarkWebIT, a startup in CIC’s current class. The office layout offers multiple cubicles, open-space working areas, a presentation event space and a number of surrounding, glass-enclosed conference rooms. Members can use any and all of these resources for potential meeting with investors or to complete works towards a project.
A full-time official from the Maryland Small Business Development Center (SBDC) is also onsite to offer business, accounting and legal advice to founders.
Classes regularly occur on a monthly basis and cover subjects like finding the right developers, how to negotiate with investors and general business practices. Some of these classes are taught by Tentnowski while others are led by guest speakers brought on for the day by the incubator. In the future, Tentnowski says that he would like to have CIC make use of its event space by hosting more local networking and business events.
“It’s really more of a hands-off approach with the knowledge that important resources are always there for you if you need it,” Dombo said of CIC. Another member, Diana Ma, the founder of medical research crowdsourcing startup Hippo Campus Analytics, relayed a similar description. Dumbo explained that he’s a serial entrepreneur, having started multiple businesses in the past, but previous to CIC, had never worked with/in an incubator.
“I can tell you, for sure, if I ever start another business it will be in an incubator,” Dumbo said.
Investor network
“The proximity to the 3- and 4-letter agencies allows our members rapid access to government personnel. Many unclassified meetings can take place outside the gates, which bypasses the admittance procedures required to enter the base,” Tentnowski told DC Inno, “companies [also] benefit from the extensive relationships built by CIC staff over that past 13 years. Introductory meetings, social events, and joint educational programs give them extensive exposure to potential customers and users of their products and services.”
Tentnowski, however, declined to comment on specific investors affiliated with the incubator, saying “we have a network of investors that over time have trusted us to screen the deals first before passing companies onto them … most funding sources wish to remain anonymous.”
In a phone interview with Dombo, the cybersecurity startup executive told DC Inno that Art Jacoby, a prominent local cybersecurity angel investor and the Managing Partner of MD Cyber Investment Partners, along with TEDCO, the state sponsored tech development fund, were active CIC investor contacts.
Surprisingly, Arlington, Va.-based In-Q-Tel, the CIA’s venture capital arm, is one firm that is not currently a “partner,” Tentnowski revealed. He added, “they [In-Q-Tel] would be a great addition to the mix.”
Eyes on the horizon
CIC, which pivoted towards an incubator model in the late 2000s—and away from its contractor identity—is, on its own, a still-young venture. But the hiring of Tentnowski is accelerating the incubator’s profile. In early August, CIC was recognized by Tribe Interactive, a large marketing agencies for tech startups, as the top incubator in the state of Maryland. Elsewhere, CIC has been introduced via featured local print news articles.
Ma, who prior to being a startup founder was a Research Fellow at the National Institutes of Health (NIH), told DC Inno that she believed Tentnowski was leading the incubator in the right direction by actively working to attract more startups and community members to the program.
Under Tentnowski’s direction a virtual/satellite membership tier for $300/mo. was created and the new option is already paying off, according to the incubator. As time progresses, he also has plans to expand the office space, grow the incubator’s investor network and to form partnerships with other local incubators.
“What’s exciting for me is that these companies, at CIC, are doing things that will actually impact how we do things in society. It’s all making a difference. And that impact will also be felt in the marketplace,” Tentnowski said.
