Growth firms beginning incubation in the CUBE

Norman Smith is fielding plenty of proposals from entrepreneurs with interesting ideas as he works methodically to find companies to participate in a new business incubator in downtown Reno.

But Smith and the other organizers of The Center for Unique Business Enterprises better known as the CUBE say they want to be sure they can provide sufficient support to the companies that sign on with the incubator.

Participating entrepreneurs are matched with mentors, tap into a pool of experts on financing, legal affairs and other subjects, and begin a structured approach that will lead to the creation of well-capitalized, well-managed companies.

Smith, the executive director of the CUBE, says he's been cautious about taking on more companies than the organization can support with mentors and technical advisors.

"We still need more community support," he says.

Nine companies currently participate in the CUBE, and Smith says about five more are expected to sign on shortly.

Among early participants:

* Walton Global Green, which is developing high-efficiency compact fluorescent lights.

* 3D Armor Systems, whose products include armor that can automatically change color to blend with a background.

* Stretchhanger LLC, which is developing clothes hangars that can be changed in size.

The incubator's offices at 300 E. Second St. have capacity for about 30 companies and 120 workers, and the CUBE also provides "virtual incubator" services to companies that are housed elsewhere.

Along with helping entrepreneurs develop strong companies, the organizers of the CUBE want to increase opportunities for investors who are looking for northern Nevada com-panies and want to help generate new jobs for the region.

Already, a couple of start-up companies have migrated to the Reno incubator from California, says Ky Good, who worked more than four years to get CUBE established.

Themes among companies that have applied to participate in the CUBE are the convergence of entertainment media, on-line delivery of goods and services, development of renewable-energy resources and creation of better solutions to retrofit industrial equipment to meet changing environmental standards.

Among the companies selected to partici-pate in the CUBE incubator, organizers seek entrepreneurs with unique technical solutions or intellectual properties that can be developed into a business that can be scaled up to capture big markets.

And participating entrepreneurs need to be able to accept coaching from CUBE's entrepreneurs in residence and other advisors.

In exchange, CUBE organizers note that start-ups that undergo a structured process are more likely to survive than other young companies, and the organization expects a survival rate of at least 70 percent among its participants.

If applicants don't make the cut, Smith says he's spending a fair amount of time helping them find the resources at other agencies that will help them establish solid companies.

"Figuring how to get other people to share your passion can be remarkably difficult," Smith says. "It's not self-evident."

At the same time, organizers of the CUBE are working to line up investors to provide angel and venture capital to young companies.

The organization also hosts monthly investors' forums at which companies from around the region make their pitch for financing.

The CUBE leases space in the downtown office building from Basin Street Properties, which houses its own corporate headquarters a few floors upstairs.

"They've become more of a partner than a landlord," says Good.