Last week, we joined MK Mendoza, host of KSFR’s Wake Up Call, for a conversation about Santa Fe Innovates, our social entrepreneur accelerator program and work to put an added spark in Santa Fe’s startup and tech community. Follow KSFR on Twitter!
Listen to our conversation!
Transcript from conversation on KSFR radio
MK Mendoza:
And joining me is Jon Mertz. He is the founder of Santa Fe Innovates, and he’s here to tell us all about it. Welcome Jon, it’s such a pleasure to have you on our show today.
Jon Mertz:
Thanks so much, MK. It’s great to be on the show, I really appreciate it.
MK Mendoza:
Well, we appreciate what you’re doing. One of the important things that you’re doing is mentoring, and there is nothing more important for our future generations than mentoring.
MK Mendoza:
But, tell us a little bit about Santa Fe Innovates. How it all began, what it was inspired by?
Jon Mertz:
Sure, absolutely. I’ve been involved at the Santa Fe Business Incubator for two or three years. We started to look at starting a tech accelerator program in Santa Fe, and what it would take, and so I got involved in that. It just made sense to set up a separate organization to pursue the accelerator idea. What I added to it was a social entrepreneur wrapper around it.
Jon Mertz:
So we were planning to launch right during the pandemic, so we had to pause because we were planning to meet in person. We had to pivot to launch in a virtual element, so we are doing that right now. Really, our goal is to work with entrepreneurs in Santa Fe and Northern New Mexico, and bring in experienced mentors to help them and guide them, answer their questions, interact with them, as they work through an educational process to see if their idea solves a real problem, and is there a business model behind it to help it grow and scale.
Jon Mertz:
It’s really a call-to-action on two fronts. One is, on the entrepreneurial side, if you have an idea that’s been sitting on the shelf for a while, now is the time to bring it to life and join a community of support that will help you along the way, but challenge you along the way, too. And hold you accountable to doing the work, and seeing if this is an idea that can be made into a business. And then I think the second element is, whether you’re part time or full-time in the Santa Fe area, now is the time to give back and help diversify our economy. So be a mentor, be a coach, be an investor, be a connector, join the community that we’re trying to build to enable the next generation of social entrepreneurs here in Santa Fe.
Jon Mertz:
I think that’s maybe one thing just to mention, too. Social entrepreneurship is part of our focus, and in my view it fits very well with what we are as a community, and a lot of our history and traditions. We’re trying to create a generation of business leaders who embrace not only profit, but a clear purpose as part of their business. Within their business model it’s to grow and add good jobs, but it’s also to give back in some way, whether it’s environmentally, socially, whatever the cause may be, that they’re doing both as part of their business.
MK Mendoza:
Right. Meaningful, productive, substantive work that makes the world a better place somehow.
Jon Mertz:
Right, exactly. We need more of that.
MK Mendoza:
Yes, we need a lot more of that. You know, it brings to mind what Robert Edgar talks about, he talks about social enterprise. It’s not a brand new idea, people have been talking about this for a while, but it does seem, just as we move forward as a human race, that this is definitely an idea we’re going to have to start really looking at, is making business not just all about money, and profit, and wealth, but about building community and strengthening ourselves as a people.
Jon Mertz:
Yeah, absolutely. I think the younger generations in particular, Millennials and Gen Z, are helping lead that effort because that’s what they want to see out of business. They want to see business take a stand on social issues and try to be positive changemakers, but also that they believe there’s a responsibility of business to not only be profitable, but to make society better in some way. We need to support that next generation of entrepreneurs.
MK Mendoza:
For your Santa Fe Innovates program here it says, “Where business begins with soul.”
Jon Mertz:
Yes. Again, it gets at there’s more to business than just profit, and that’s what we’re trying to build in Santa Fe. I really believe that Santa Fe can be known as place where social entrepreneurs will come, stay, thrive, and really have that robust community of support to keep that momentum going, and be known as a place where social entrepreneurship thrives.
MK Mendoza:
When you say social entrepreneurship, what exactly does that mean?
Jon Mertz:
Yeah. It really does get to the same idea of social enterprise, that’s part of it. You have definitely a profit motive, because you need to have a sustainable business model, and be able to hire people, and so on. But, you’re also balancing that with some purpose element. Whether it’s your company could solve a social problem in a for-profit way, or you set up a mechanism to give back, whether it’s some social issues that’s important to you as a company, or it could be an environmental issue that’s important to our society as well. It’s that balance and that tempo between profit and purpose.
Jon Mertz:
It can create an added challenge to entrepreneurs, but it’s one that not only do new leaders expect, but customers and consumers do as well.
MK Mendoza:
And also investors, right?
Jon Mertz:
Yeah.
MK Mendoza:
You have this idea of impacting investing, right? That’s a whole new …
Jon Mertz:
Exactly, yeah. Absolutely. We are working to try to attract that into our community, too, and develop that. It takes time, obviously. As we started off, it takes a track record so we know we need to build success as far as the entrepreneurs that go through our program, and launch, and begin to grow. But, we need the other elements, too, the mentorship and the investors, to really bring it together and make it as robust a community as possible.
MK Mendoza:
Right. Can you describe for the listeners, if they’re not familiar with impact investing, what that actually is?
Jon Mertz:
Yeah. Impact investing is similar to a social enterprise in that they’re looking at a financial return as part of their formula, but they also are looking at the social impact return as well. So they try to balance both the financial and the social impact metrics, and make smart investments in companies that return on both fronts.
MK Mendoza:
We’re seeing more high tech coming in. Tell us a little bit more about that community. How much of that community actually exists in Santa Fe, and what does it look like?
Jon Mertz:
Yeah. I think we’re at a tipping point, if you will, where there’s definitely some good stories to point to. Descartes Lab gets a lot of print, obviously, in their story and their growth. They’ve set an example of how a software technology company can thrive within Santa Fe.
Jon Mertz:
But there’s others, too. Falling Colors focuses on the healthcare space. Openeye, Pebble Labs. There’s a number of technology companies that are within Santa Fe that maybe don’t get the attention, but there is really the beginnings of a community that we want to tap into, as well as figure out how we can help it grow to the next level.
MK Mendoza:
When you say high tech company, what are we actually talking about? What do they do, actually? What do they deal in?
Jon Mertz:
It’s interesting. Some of our applicants are varied. Most of them have some kind of software component, whether it’s an app, or a software-as-a-service type model. But, it could include companies that embrace some type of hardware element, application and software’s a given. But really, when you think about it, many businesses no matter the industry or sector probably have some type of technology component. It could be even as simple as how you’re doing eCommerce for your business.
Jon Mertz:
So technology is part of a business, whether they want it to be or not, maybe. But, we’re really looking to support those entrepreneurs who have an idea that has merit, has viability, and can add good jobs to the Santa Fe and Northern New Mexico economy.
MK Mendoza:
If you just tuned in, we’re speaking with Jon Mertz, founder of Santa Fe Innovates, a new organization that is all about supporting disciplined, purpose-filled entrepreneurs, and bringing together mentors, investors, and community to launch and grow these enterprises with a primary focus on startups who have a scalable idea with a focus on technology or other solutions.
MK Mendoza:
I understand you literally walk people through the different stages of business development. Can you highlight what going through your program looks like?
Jon Mertz:
Sure. We’ve broken down into three stages. The first stage is open right now. Given that it’s our first cohort, and also given the COVID situation, for the first cohort we’re making it free to all those who sign up and participate in the program. So we’re just getting underway now, with stage one, which is focusing on, really, the foundational elements of being an innovation leader. But then, also beginning to determine whether you have a good idea or not. By having a good idea, does it solve a problem, a real customer problem. And, does it have the beginnings of a business model to support bringing that to market, so the first stage is really focused on that.
Jon Mertz:
But then, we also will add in, early on, just what is the purpose of your business, so looking beyond just making a profit, but what other social good or environmental good do you want to focus on as part of your company. We’ll have a pitch event, and then the entrepreneurs would advance to stage two.
Jon Mertz:
And then, we’ll get much more in-depth into who the customers are, who would be some of the early customers, starting to look at more of what the minimal viable product is, and bringing that to market. Working on some early prototypes, to test it, and gain that traction. While at the same time, working on the business model to make sure that, again, that it can be a profitable, growing, sustainable business as well. And then, we’ll begin to look at some of the other elements of social entrepreneurship, whether it be pursuing certification through the B-Corp process, or becoming a benefit corporation, or just what’s the social element that they want to build into their business model. Then we’ll have another pitch event for those entrepreneurs, and then we’ll go into stage three.
Jon Mertz:
Stage three will get much more in-depth into building out the business plan, getting ready for pitching to investors their idea, to get funding. Investors could be venture capitalists, impact investors, it could be loans, different financing options that are available. But then, we’ll also get much more in-depth into the leadership requirements of leading a business for profit and purpose, how to build and organizational culture, ensuring that there’s good underlying ethics in the business model. We have a partnership with UNM Anderson that will help deliver some content, especially around strategy, leadership, organizational culture, and some business planning that will be part of the program. And then we’ll end it with a final pitch to investors.
Jon Mertz:
But, the reality is this just doesn’t end there. We’ve also launched a virtual community, where there’s forums or interactions, so we’re trying to build those relationships and partnerships. Both virtually and in real life, when we can meet again. In our current environment, we’re trying to enable both.
MK Mendoza:
Is there a cost that people have to pay to join your program?
Jon Mertz:
No there isn’t, especially for the first cohort anyway. We are focused on trying to help out and diversify our economy by supporting startups during this time. So for the first three stages, there will be no cost to join. The application process is pretty simple. There’s a form on our website. It’s name, email address, and a three sentence pitch of your idea. Then, the ideation and going through the process will help determine whether you continue forward or not. It’s doing the work, it’s making sure there’s a business model to support the idea, and those types of things.
MK Mendoza:
Yeah. Somebody who has worked on her own business before, which is me, I cannot tell you how valuable this advice is. I think this is true of a lot of people who go into business. Not everyone who goes into business was a business major, so when you go into business by yourself, I used to say it’s like getting your PhD with no professors around because you have to learn every aspect of business. You’re pretty much on your own. And because you’re in a competitive market, nobody’s going to tell you how they work, or what to do so you have to sleuth your way through trying to figure out how to operate. So offering this kind of information to young mentors is really priceless, it can make all the difference.
MK Mendoza:
In fact, I was speaking with the woman who started the Tumbleroot Brewery, and she was saying that she won a contest that was a competition for a business idea. But she talked about going through all the stages of feasibility, really assessing whether or not this was a good idea, and whether or not it could be done before spending an ounce of her own money. A lot of times, I think people get excited about their idea, and just because I think it’s great, the world is going to think it’s great, not necessarily true. You start spending money, and then get yourself into a hole you can’t get yourself out of.
Jon Mertz:
Yeah. No absolutely, MK. I think that’s a key point, is that people fall in love with their solution.
MK Mendoza:
Right.
Jon Mertz:
Then it’s not a solution that really solves a market need or a customer problem, so you can spend a lot of money without getting the traction that you need as a business.
MK Mendoza:
Right.
Jon Mertz:
I think the second point is that it really does take a neighborhood to raise a new startup, so that’s why focused a lot on also having mentors apply to be mentors to the entrepreneurs that go through the program. People that have real experiences in either a startup setting, or an industry, or some type of business function, so that they can serve as a sounding board, challenge the entrepreneurs, share their lessons learned through their own process and experiences. That is so important to help give an entrepreneur the foundation they need to increase the odds of being successful.
MK Mendoza:
I’d like to have you talk about that a bit more. Can you speak to the mentors that you’re looking for? And where you recruit them from, and what the process is to bring mentors on? If there’s anyone listening that says, “Hey, I’d like to get involved in that.”
Jon Mertz:
Absolutely. We’ve been very active over the last 30 to 45 days to try to build a good mentoring database, so we have the resources available to help our entrepreneurs. So we’re looking for people in Santa Fe, part time or full-time, who have some type of startup experiences through their worklife. Or again, have a deep industry expertise, or functional expertise within a business. That could be marketing, sales, finance, corporate law, whatever the case may be.
Jon Mertz:
On our website, we have a mentor tab and we have a form that they complete so that we understand their experiences and their interests. So that when we’re ready to match them with an entrepreneur, that we have the information that we need to do that as effectively as we can. One of the things that going virtual has given us some flexibility on is that we are also trying to attract virtual mentors. People that may love Santa Fe or Northern New Mexico, but may not live here full-time or even part time, but visit often, and want to help a new entrepreneurial community. We’re working diligently to tap into people from Austin, Dallas, Phoenix, Denver, Silicon Valley in particular, or anywhere in the United States, basically, who have an interest in supporting this new social entrepreneur community within Santa Fe.
MK Mendoza:
This isn’t something where you have to be selectively only have experience in the high tech industry?
Jon Mertz:
No. Again, we don’t know what type of entrepreneurs are going to show up in the program, if you will. Whether it’s healthcare experience, retail experience, there’s definitely industry experience that we’ll need to support our entrepreneurs. Because some of it is about mentoring, guiding, challenging along their path, but sometimes it’s also just being a good connector. If it’s an idea that’s in the retail sector, or in oil and gas, or solar, that we have people within our mentoring community who have industry experience there, but also have connections to help them validate their idea, or figure out their go-to-market strategy.
Jon Mertz:
In our view, I guess mentoring is a broad term, so it can be anything from being a coach, to being a connector, to being an investor. It’s really how deeply involved does that mentor want to get involved with that entrepreneur. We just opened our applications this past week. This is brand new, so we’re holding it open for about another week or so, for entrepreneurs that …
Jon Mertz:
It’s interesting. During tough economic times, and obviously we’ve got tough economic times plus a health crisis, but this is also times where many entrepreneurs go to work. In past history anyway, when there’s been tough times like this, about six to nine months later, new startups start to emerge and start on a path of growth. Even though we have these challenges, we’re hoping to tap and find entrepreneurs who maybe have had that idea set aside for a while, and now maybe they have the time to begin work on it. We want to create a platform to try to bring those ideas to life, and then engage a mentoring community to help them along the way.
MK Mendoza:
Now again, this is selectively high tech ideas, right?
Jon Mertz:
Well yeah, we’re being broader than that in the sense that tech is definitely a focus area of ours, but if there’s an idea that scales we don’t want to exclude it, we want to include it in our cohort as well. Basically, we’re looking for companies that, if they’re successful, they’re going to be hiring 15, 20, 30 plus people within our communities, and creating good jobs, and really helping diversify our economy.
Jon Mertz:
Tech is definitely a focus, but it’s not a focus if it’s a good idea that has the potential to scale in jobs, and market share then we definitely will embrace them, just like we would a tech company.
MK Mendoza:
Okay, great. Just any great, good idea that is sitting there, waiting to be had, this is the place to go.
MK Mendoza:
We’ve been speaking with the folks from Santa Fe Innovates, a mentorship program for entrepreneurs who are coming up with great ideas and need a little support along the way. Jon, how can people get a hold of you, if they want to find out more?
Jon Mertz:
Sure. SantaFeInnovates.com is the best place to begin, and we have contact forms and emails on our site. You can reach me at Jon, J-O-N, @SantaFeInnovates.com. We are active on social media, most of our social media accounts are @SantaFeInno, I-N-N-O. Through our website, my email, or our social media accounts, you can definitely find us and engage with us.
MK Mendoza:
Fantastic. You know, you’re such a leader, you’re such a community leader in Santa Fe, you really get involved in the cutting edge things that are going on in town, and give back to the community. How long have you been in Santa Fe?
Jon Mertz:
I’m still a newbie, so I’ve been in Santa Fe three years. But, Santa Fe’s just such a great community, rich obviously in all the things that we know about, from nature, to art, to science and technology, and many other things. It’s just there’s a great opportunity, I think, to bring younger generations to keep them here, and to create the types of jobs that they can raise their families here, and continue to be active citizens within our community.
Jon Mertz:
I think diversifying our economy is so important, more now than ever, and keeping the younger generations in our communities is part of that goal.
MK Mendoza:
If you just tuned in, we’ve been speaking with Jon Mertz. He is the founder of Santa Fe Innovates. Thank you Jon, so much, for joining us today.
Jon Mertz:
Thank you, MK.
MK Mendoza:
For KSFR’s Wake Up Call, I’m MK Mendoza. Talk to you next week, and have a great weekend.
