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New Coworking Space, Incubator Set Up in UTC

Already a hub for San Diego’s startups, University City has landed a new coworking space and a new startup incubator.

Both are located at the Aventine, where WeWork opened

Mark Bernier
List Of ThinkTank Incubator Companies

a 54,000-square-foot coworking space in August, making for WeWork’s second spot in the San Diego metro since it first came to downtown in 2016.

“We are always looking to grow our community, and given San Diego’s geographic sprawl, we knew we had to expand to serve businesses in different areas of San Diego,” Kley Sippel, WeWork’s general manager for Southern California, wrote in an email. “UTC is a major business hub in San Diego with strong demand for our product. We also listened to feedback from members at our downtown location, who were either commuting from the north or looking for space to meet with their clients in UTC / North County.”

The new space gives WeWork a prominent view of La Jolla, with access to the Aventine’s upmarket amenities, including valet parking, an onsite cafe, and access to a pool and tennis courts. WeWork’s office will also serve as the home of a new incubator program, called ThinkTank.

ThinkTank, a nonprofit program, recently brought its first cohort of 17 to UTC. Mark Bernier, a local investor and former CEO of Thornton Americas Holdings, has been building the program for the past two years.

Bernier had been investing on a family office basis before he founded venture capital firm, VentureMoney Management Co., which put $3 million into ThinkTank to kick off the program. That allows ThinkTank to bring in companies without taking equity upfront.

“It provides the ability for us to offer programs at a no-cost basis, so there’s no friction to attract the best high-tech companies from around the world here,” Bernier said. “We’re funding this out of venture money to create a pipeline.”

At the end of the 90-day program, some of the startups may receive offers for investment, in exchange for equity.

First Cohort

ThinkTank launched its first cohort in early December. They range from early-stage startups that are putting together prototypes to companies that are bringing in $4 million in revenue. While many of the companies are from San Diego, the program also brought in businesses from places such as Spain and Mexico.

For the 90-day program, the startups receive office space at WeWork, up to $120,000 in IBM services, and advising. Bernier said the program also serves as a 90-day due diligence period for VentureMoney to decide whether to invest in the companies.

“We’ve been able to attract a number of high-quality businesses. We think that’s going to get better as marketplace gets to know us.”

ThinkTank also has a $10 million fund that it will use to invest in some of the companies that have gone through the program. The investments will range from $200,000 to $1.5 million.

Bernier said he has identified a few investment prospects in the current cohort, as well as a few from ThinkTank’s TacticalLaunch Program, an incubator for veteran-owned businesses.

“Some (of the companies) are already generating significant revenues. We can get in and help them achieve significant results in the marketplace,” Bernier said. “There will be others we think over time will generate further interest.”

Bernier tapped Diego Alarcon, social innovation director of the Zip Launchpad at San Diego State University, to lead ThinkTank. Zip Launchpad helps university faculty, students and staff turn their ideas into a startup.

Alarcon said for him, the next logical step was to work with companies that are preparing to enter the marketplace and scale.

“(ThinkTank) is filling a huge gap in the ecosystem with early venture capital,” he said.

Alarcon saw an opportunity in the program by flipping the traditional incubator process on its head.

“It’s a way for us to get to know them and a way for them to get to know us. Then, they don’t have to dilute their equity in the company,” he said. “You want to make sure if you’re going to give up an equity stake, that it’s going to add value.”

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