Miami

You're Invited: Celebrating CIC Miami's 2 Year Anniversary!

Remember our launch party from two years ago?

We’re throwing another party on November 28th.

This one will be a doozy.

We'll be doing the things one normally does on a two-year anniversary party: hosting talks and activations on sustainability, policy, life sciences, global connectivity, and the arts with our partners, clients, colleagues, and closest friends. 

Community partner activations include: Miami-Dade Department of Cultural AffairsCommissionerThe Nature ConservancyFrost Science MuseumBefore It's Too LateThe Inter-American Development BankCR MiamiWhy MiamiSupport LocalPrism Creative GroupUniversity of MiamiIMCDSensieGraupelPathwavesFittingBoxSkilliedDeep BlocksCity of Miami, and more to come!

Complimentary beer provided by Veza Sur Brewery! Food for purchase from Fufi Empanadas and Della Bowls. Regular cocktails to be provided as well!

Free entrance and free, limited parking. Ride sharing encouraged.

You can find the link to the Eventbrite page here.

Entrepreneurship as Economic Development

Entrepreneurship as Economic Development

In 2020, six of the county commissioners will term out and their seats will be open for election. For those unfamiliar, the role of the county commission is to make laws for Miami-Dade County, create policy solutions to our most challenging problems, and allocate resources in our $7B budget. At its most effective, this board should be able to work together to bring us much closer to solving transit, affordable housing, economic development, and climate change preparedness.

Finconecta, A Miami-Based Company, Selected at Milan’s Endeavor International Selection Panel

Finconecta, A Miami-Based Company, Selected at Milan’s Endeavor International Selection Panel

A marketplace for the fintech industry has been added to Endeavor Miami’s growing portfolio of Endeavor Entrepreneurs. Endeavor Miami announced today that Finconecta is now the 22nd active Endeavor Miami company, after being selected at Endeavor Global’s 80th International Selection Panel (ISP), held in Milan, Italy from June 27-29th. The company was founded in 2016 by Jorge Ruiz and Mauricio Lorenzetti.

El boliviano Jorge Ruiz fue elegido como emprendedor Endeavor

El boliviano Jorge Ruiz fue elegido como emprendedor Endeavor

CIC Client FinConecta chosen as Endeavor Miami’s 22nd company.

Finconecta, una empresa global de software empresarial que conecta y combina instituciones financieras y fintechs de todo el mundo, fundada por Jorge Ruiz y Mauricio Lorenzetti fue elegida como la 22ª compañía activa de Endeavor Miami, luego de ser seleccionada en el 80º Panel de Selección Internacional (ISP) de Endeavor Global, que se realizó en Milán-Italia, del 27 al 29 de junio.

Venture Café Miami and CIC Miami named finalists for 2018 Beacon Awards

Venture Café Miami and CIC Miami named finalists for 2018 Beacon Awards

The Beacon Council named Venture Café Miami and CIC Miami as finalists for the 16th Annual Beacon Awards, both in the category of Entrepreneurship and Innovation.  These awards are bestowed on organizations and individuals who have made impact and demonstrated leadership in the categories outlined in the One Community, One Goal initiative.  

Meet CIC Miami client: Pathwaves

Meet CIC Miami client: Pathwaves

Pathwaves are the creators of Neural Empowerment. What do they really do? They help people optimize their flow, however they define that for themselves. Said another way, they compress time and compound change by working at the intersection of neuroplasticity, neurotech and psychology.

Monthly Event Series Creator's Lounge Aims to Help Miami Creatives Succeed

Monthly Event Series Creator's Lounge Aims to Help Miami Creatives Succeed

“Artists should think of themselves as innovators and entrepreneurs... The birth of Creator’s Lounge was a mission to make local creators and makers aware of the resources around them... and [give them] practical business skills to thrive and survive and respond to the market,” says Medrano, who also works as a senior relationship partner at the CIC.

Tax Cuts and Jobs Act for Start-Ups and Emerging Growth Companies

This guest post was written by Kevin P. Martin, Jr., CPA and managing director of KPM.

Happy New Year!

As you’ve certainly heard by now, just about 10 days ago, President Trump signed into law H.R. 1, the “Tax Cuts and Jobs Act,” a sweeping tax reform package that promises to entirely change the tax landscape for you, your investors and your start-up or emerging growth company. Only time will tell whether the new law fosters or inhibits technology and innovation. What we do know already is that the law is going to challenge us in many ways, including how we balance, overall, lower tax rates with “doing the right thing” like investing in research and drugs for rare diseases. 

I’m guessing whether you braved the cold on New Year’s Eve and met up with friends or whether you sat home, worked and binged on TV reruns and Chinese food, it’s likely that you pondered at least one tax reform question: What’s this mean for my company? Do I have the right entity structure? Am I now going to get the benefit of those NOL’s? Am I going to lose that foreign investor? How about R&D, is it in or is it out? And the list goes on and on…

There are lots and lots of business tax changes under the new tax law, including a reduction in the corporate tax rate to a flat 21% rate; a 5-year write-off period for R&D expenses; a limitation on the deduction for business interest, and an elimination of the domestic production activities deduction. I’m not going to hit every issue but I am going to highlight those hot topics for which CEO’s, CFO’s and entrepreneurs are stopping me in the halls and at community tables to discuss.

  • The very good news is that the final version of the legislation has preserved the research and development (“R&D”) tax credit, which was made permanent in the Protecting Americans against Tax Hikes (“PATH”) Act of 2015. At the same time, we need to be mindful about how those credits are calculated and the ways in which the new tax law will directly or indirectly affect the taxpayers claiming those credits.
     
  • Corporate tax rates have been reduced from a maximum rate of 35% to a flat 21% and the corporate alternative minimum tax (“AMT”) has been repealed. For tax years beginning after 2017 and before 2022, the AMT credit is refundable and can offset regular tax liability in an amount equal to 50% (100% for tax years beginning in 2021) of the excess of the minimum tax credit for the tax year over the amount of the credit allowable for the year against regular tax liability. That’s a mouthful but from a basic, R&D perspective, the AMT repeal removes the AMT restriction on corporations which has long prevented them from utilizing R&D tax credits to offset regular tax liability. 
     
  • Congress passed The Orphan Drug Act in 1983 to provide a better incentive for companies that are willing to embark on the development of orphan drugs (for diseases that affect fewer than 200,000 people). Instead of calculating the benefit for orphan drug development using the rules under IRC section 41 for the R&D tax credit, the Orphan Drug Act provided for a tax credit of 50% of clinical testing expenses (“CTEs”) under IRC Section 45C. Under the new law, the OD tax credit will be reduced to 25% of a company’s costs related to clinical trials for developing rare disease treatments. We are getting lots and lots of feedback here and what we are hearing is that patient groups fear that without the 50 percent tax credit, drug companies will cut back on developing drugs for rare diseases and focus on more common ailments. What we yet to fully understand is the new, optimal inflection point of lower rates, the lower OD credit, the R&D credit and the repeal of AMT that will continue to spur medical innovation.
     
  • The new law has repealed the “domestic production activities deduction.” Section 199 may still be claimed for any open tax years beginning before January 1, 2018. Thinking out loud, taxpayers with production or service activities that are within the scope of Section 199 should consider claiming the Section 199 deduction for current years or possibly reviewing claims made in prior tax years and filing amended returns where applicable.
     
  • Are you doing software development? For tax years beginning after December 31, 2021 taxpayers will be required to treat research or experimental expenditures as chargeable to a capital account and amortized over 5 years (and 15 years in the case of foreign research). Specified R&E expenditures subject to capitalization include costs for software development, but not costs for land or for depreciable or depletable property used in connection with the research or experimentation.
     
  •  Big capital needs? For property placed in service in tax years beginning after December 31, 2017, the maximum amount a taxpayer may expense under Code Section 179 is increased to $1 million, and the phase-out threshold is increased to $2.5 million.
     
  • Except for companies with an average gross receipts of $25 million or less during a 3-year look-back period, for tax years beginning after December 31, 2017, businesses are subject to a disallowance of a deduction for “net interest expense” in excess of 30% of the business’s adjusted taxable income. The net interest expense disallowance is determined at the tax filer level. There is a special rule that applies to pass-through entitles, which requires the determination to be made at the entity level, for example, at the partnership level instead of the partner level. As you legally set up your new venture, depending on many variables, good entity selection is still ever so important. And to make it just a little tougher to digest, for tax years beginning after December 31, 2017 and before January 1, 2022, adjusted taxable income is computed without regard to deductions allowable for depreciation, amortization, or depletion and without the former Code Section 199 deduction as discussed above.
     
  • Stock options…now I’ve got your attention! Let’s face it, options are a big part of compensation methodologies.  The Act creates a new Section 83(i) and permits eligible employees of a private corporation to elect to delay federal income taxes arising on an option exercise or restricted stock unit (“RSU”) settlement for up to 5 years, subject to early acceleration if there are certain triggering events. “Excluded employees" who are ineligible from using this election include CEOs and CFOs, and individuals who are or were 1% owners or one of the top four, highest paid officers at any time during the last 10 years. There’s a lot more to it but the new rules apply to option exercises and RSU settlements after December 31, 2017.
     
  • If you’re a start-up, there’s a good chance you’ve got some net operating losses (NOL’s) from business activities in a prior year. For NOLs arising in tax years ending after December 31, 2017, the two-year carryback and the special carryback provisions are repealed, but a two-year carryback applies in the case of certain losses incurred in the trade or business of farming (yes, we’ve got some farming tech). And here’s the kicker: For losses arising in tax years beginning after December 31, 2017, the NOL deduction is limited to 80% of taxable income (determined without regard to the deduction). Carryovers to other years are adjusted to take into account this limitation, and, generally, NOLs can be carried forward indefinitely.
     
  • Got employees? For wages paid in tax years beginning after December 31, 2017, but not beginning after December 31, 2019, the new law allows businesses to claim a general business credit equal to 12.5% of the amount of wages paid to qualifying employees during any period in which such employees are on family and medical leave (FMLA) if the rate of payment is 50% of the wages normally paid to an employee. The credit is increased by 0.25 percentage points (but not above 25%) for each percentage point by which the rate of payment exceeds 50%.
     
  • For amounts incurred or paid after December 31, 2017, deductions for entertainment expenses are disallowed, eliminating the subjective determination of whether such expenses are sufficiently business related; the current 50% limit on the deductibility of business meals is expanded to meals provided through an in-house cafeteria or otherwise on the premises of the employer; and deductions for employee transportation fringe benefits (e.g., parking and mass transit) are denied, but the exclusion from income for such benefits received by an employee is retained. In addition, no deduction is allowed for transportation expenses that are the equivalent of commuting for employees (e.g., between the employee’s home and the workplace), except as provided for the safety of the employee.  What does this mean?  Thou shalt host business meetings in coffee shops and thou shalt walk from your loft to work!
     
  • There is a new 20% qualified business income deduction for certain owners of flow-through entities (such as partnerships, limited liability companies and S corporations) and sole proprietorships - through 2025.  Lets just say, like life...it’s complicated.
     
  • The dividends received deduction (“DRD”) has been reduced for companies owning significant equity in other companies. We’ve got a bunch of these types of companies. Currently, if ownership constitutes less than 20% or greater than 20%, but less than 80%, the deduction is equal to 70% and 80%, respectively.  The new legislation reduces those deductions to 50% and 65%, respectively.  This will affect dividend declaration policies made by corporations.
     
  •  The Code occasionally has provided various incentive programs aimed at encouraging economic growth and investment in distressed communities by providing Federal tax benefits to businesses located within designated boundaries. The new law provides temporary deferral of inclusion in gross income for capital gains reinvested in a “qualified opportunity fund” and the permanent exclusion of capital gains from the sale or exchange of an investment in the qualified opportunity fund.

Lastly, we work with a number of companies that have foreign investment or are wholly-owned by foreign entities. The new law contains a number of provisions that relate to foreign dividends, the expansion of the definition of “US  shareholder,” base erosion anti-abuse tax (“BEATS”), denial of deductions relating to certain related party payments and limitations of income shifting through intangible property transfers (“transfer pricing”).

Now, I’m betting you wish you had one more drink on New Year’s Eve! Will the new tax law allow tech companies to spur innovation and meet their growth potential? We are still scratching our heads. Let’s face it, start-ups and early growth companies face unique challenges – they need big upfront investment, they incur operating losses in those early years, they aren’t getting the immediate benefit of a reduction in the corporate tax rate, they are tight on cash and often choose to compensate key team members through stock options and they are dependent on R&D to push forward their ideas.

There’s a lot going on under the new law and we are still working through the text ourselves, particularly the foreign investment provisions.  There’s likely to be a technical corrections bill coming which should add some clarification, and likely lots more confusion.  We’ve been working with companies like yours for over 50 years and we would be delighted to guide you through the new law and what you should be doing now…and later.

Kevin P. Martin, Jr. is the Managing Director of Kevin P. Martin & Associates, P.C, a Boston-based CPA and consulting firm specializing in start-up and early stage tech, biotech and life sciences companies. Kevin spends most of his time advising clients, growing companies, putting business ideas to work, giving lectures and can be reached always at kmartinjr@kpm-us.com.
 

Weighing in on Miami’s entrepreneurial ecosystem

Weighing in on Miami’s entrepreneurial ecosystem

Two years ago, Cambridge Innovation Center announced it would be expanding to Miami, taking most of the space in the University of Miami Life Science & Technology Park, which is now called Converge Miami. And at that time it made a bold prediction: that it would quickly become a hub for entrepreneurship in Miami.

CIC Miami Launches Corporate Innovation Program

CIC Miami Launches Corporate Innovation Program

CIC SEEKS TO CONNECT THE REGION’S CAPITAL, IDEAS, AND TALENT BY INTRODUCING MIAMI’S ENTREPRENEURSHIP COMMUNITY TO THE CITY’S ESTABLISHED CORPORATIONS

University of Miami and CIC Miami Partner to Establish South Florida's First Shared Wet Lab for Early Stage Biomedical Startups

University of Miami and CIC Miami Partner to Establish South Florida's First Shared Wet Lab for Early Stage Biomedical Startups

The University of Miami and the Cambridge Innovation Center in Miami (CIC Miami) have
partnered to establish South Florida's first shared wet lab space for early stage biomedical startups. Years in the making, it is the final piece of the puzzle to attracting and fostering biomedical discoveries in the South Florida region.

Connecting entrepreneurship & art in Miami

Connecting entrepreneurship & art in Miami

At CIC Miami, our mission is to change the world through innovation by developing ecosystems that allow exceptional entrepreneurs to create new products and companies better and faster. We enable startups to connect, collaborate and grow by building resource-rich communities. Since opening in Miami in October 2016 as part of the Converge Miami innovation district, we have tried to not only become a center of entrepreneurial and innovative activity in our city, but also to reflect the artistic personality and dynamism that Miami is known for. As such, we have worked with numerous local craftsmen, artists, and designers for both permanent installations and temporary activations of our space."

CIC Miami strengthens relations with Chile to promote entrepreneurial exchange, innovation, and collaboration

As we at CIC Miami prepared to open last year, we worked to identify key areas of strategic and programmatic focus to guide our efforts. We fundamentally believe that our success is defined by the value we add to the entrepreneurial communities we expand to, and a large part of that value lies in identifying the unique gaps in that specific city and doing our part - mindfully, collaboratively, inclusively, excitedly - to address them.

In Miami, one such gap lay in contributing to make South Florida a more effective isthmus between Latin America and North America - a promise our city is perfectly positioned to keep, but only if we work to create tangible and bidirectional bridges between us and the region’s main innovation hubs.

In this context, Chile was a natural ally. Distinguished as one of the most robust and stable innovation engines in the continent, Chile’s startup scene has been praised as “magical” by Bloomberg News. The Chilean tech ecosystem has aggressively expanded during the last six years, primarily through various incentives spearheaded by the Chilean government through the National Development Corporation (CORFO for its acronym in Spanish). In fact, Chile was highlighted by Gust as the Nº1 country in Latam in terms of public investment.

As such, we are thrilled to announce the four inaugural agreements CIC Miami has signed with Chilean partners. These organizations represent various perspectives, stakeholders, and approaches, but stand united in their desire to foment their local ecosystem and help connect it to the U.S. via Miami. CIC Miami will be a key partner to the incubators/accelerators which receive CORFO’s Scaleup/Expansion funding, aimed at  supporting startups to increase their revenues, receive more funding, and internationalize. CORFO is also incentivizing venture capital  investment via a tax benefit for international investors that invest in a public fund based in Chile (dividend distributions and capital gains on the sale of quotas from the this fund are subject to a 10% withholding tax, instead of a tax rate of 35%).

As CIC Miami, we have been fortunate to find not just willing, but experienced and seasoned partners to sign agreements with as we set out to map out new directions from collaboration and bidirectional engagement. It is our hope that these relationships will allow entrepreneurs and innovators in Chile and Miami to access valuable information about each respective market, provide strategic connections with clients, peers, investment capital, talent, et al. Ultimately, we believe this is the first step in promoting new investment and business opportunities in both markets and look forward to working together.

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Start-up Chile - This well-known –government sponsored– public accelerator awards selected startups with up to $45,000 in non-equity funding, along with a four or six-month residency in Santiago. For their role in boosting and enlivening Chile’s economy, Fast Company named Start-Up Chile the most innovative company in Latin America in 2017.

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Chilean Association of Venture Capital -  The ACVC seeks to promote the venture capital industry in Chile by communicating the positive role of VC industry in the Chilean economy and promoting the Chilean industry to local and international entrepreneurs and investors, government, press/media and civil society. Currently composed of 12 member entities, ACVC seeks to increase capital deployments to $100 million/year, focused mainly in Pre-Series A or Series A rounds of $500.000 to $3 million.

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Endeavor Chile - Endeavor Chile seeks, selects and delivers strategic support to entrepreneurs who have the potential to become high-impact entrepreneurs. Endeavor's goal is to catalyze economic and social development through the impulse to entrepreneurship in the countries where it operates.

Endeavor helps entrepreneurs achieve the economic sustainability of their companies, generate growth and employment, become role models and foster an entrepreneurial culture that motivates more people to think big.

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Fundación Chile -  is a private non-profit organization that fosters innovation and its partners are the State of Chile and BHP-Billiton-Minera Escondida, one of the largest mining companies in the world. FCh develops local and international networks, delivering high impact solutions in areas such as sustainability, human capital development, education, aquaculture, entrepreneurship and foods.

 

Interested in learning more? Email us at space@miami.cic.us

Medellin and Miami are strengthening relations to promote innovation and bilateral cooperation

Medellin and Miami are strengthening relations to promote innovation and bilateral cooperation

A Memorandum of Understanding signed between Medellin's Ruta N and the Cambridge Innovation Center Miami (CIC Miami) will create a connection between the companies located in The Sun City and the capital of Antioquia to exchange experiences, practices, resources and knowledge and to facilitate the expansion and growth of entrepreneurship linked to both institutions.

Babson College plans to launch Miami presence within CIC Miami

Babson College plans to launch Miami presence within CIC Miami

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Babson College plans to announce Monday that it is expanding to Miami, where it will begin offering some of its top-ranked graduate programs in the fall of 2018.

Babson’s newest hub, which will be located at the Cambridge Innovation Center at 1951 NW 7th Ave., will build on its base of 1,300 area alumni, the institution’s fourth largest alumni group, and a growing relationship in Miami’s entrepreneurship community. Miami will be Babson’s third location outside its main campus in Wellesley, Mass. It also has campuses in Boston and San Francisco."

"How CIC Miami dominated Miami’s startup ecosystem in less than a year"

"How CIC Miami dominated Miami’s startup ecosystem in less than a year"

"As with any good metropolis, Miami’s startup success is scattered across a couple key neighborhoods, like Wynwood, Brickell, and Lincoln Road. But a focal point has emerged inside a single building on the border of Overtown and Allapattah.

In less than a year, Cambridge Innovation Center (CIC) Miami, located in the old UM Life Science & Technology Park building off I-95, has grown into a launch pad for some of the city’s most promising startups."