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2021-016 HRV and Stoke Annual ReportDate: March 5, 2021 Report No. 2021-016       INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: 2020 Stoke Denton Annual Report EXECUTIVE SUMMARY: Stoke Denton, operated by Hickory & Rail Ventures, LLC (HRV), provides support for the entrepreneurial, technology-focused, and start-up community in Denton. In Fall 2017, Denton City Council executed a contract with HRV for management of Stoke Denton. The management agreement is in place through June 30, 2021. As a requirement of the management agreement, HRV provides a comprehensive annual report to the City’s Director of Economic Development that summarizes the outputs and outcomes related to membership, marketing, programming and events, and partnerships. BACKGROUND After a request for proposals (RFP 6571) process in Fall 2017, City Council awarded a one-year contract for management of the City’s Stoke Denton Entrepreneur Center to Hickory & Rail Ventures (HRV), LLC. HRV began management of Stoke on Dec. 1, 2017. Throughout the first year of the contract, HRV met all contract terms. In November 2018, City Council approved an extension and amendment to the management contract that will continue until Feb. 28, 2021. On October 27, 2020, the City Council extended the management agreement through June 30, 2021 to align with the termination date of the City’s lease at the Railyard. HRV is a local business founded by a Denton tech entrepreneur with established relationships in the Denton tech community. HRV’s goal is for Stoke to be self-sustaining by the end of the City’s lease term for the space, and its RFP pro forma was built on that goal. One of HRV’s methods to work toward sustainability is to pay the City a $1,000/month rent offset in contract Year 2 and a $2,000/month rent and utility offset in contract Year 3. HRV began management of Stoke on December 1, 2017. The contract specified deliverables and metrics to be provided, including a comprehensive annual report and a semi-annual report. In addition, City and HRV staff meet regularly to review and discuss Stoke’s monthly report, ensure that all conditions are being met under the contract, and to identify opportunities for business development and collaboration. Annual Report Summary Attached as Exhibit 1 is the annual report provided by HRV for Stoke Denton, which includes metrics related to membership, marketing, programming and events. Key takeaways from the report include:  Of 64 member companies at Stoke Denton, 48% are technology-based. Date: March 5, 2021 Report No. 2021-016        While most companies paid for virtual memberships or access to the general coworking area, Stoke maintained consistent memberships for companies who required a dedicated private office for their operations.  In August 2020, Stoke and the Texas Woman’s University (TWU) Center for Women Entrepreneurs launched AccelerateHER, a startup program for female entrepreneurs.  Stoke sponsored the University of North Texas Hackathon in November and Texas Academy of Mathematics & Science hack events.  Stoke partnered with North Texas Central College to host a virtual tech career fair.  Stoke Executive Director, Heather Gregory, currently serves on the Denton Business Allies. This committee, coordinated by the City of Denton Economic Development Department, is a consortium of Denton civic leaders that aims to support local businesses with resources and educational efforts.  Stoke transitioned to virtual programming in March 2020.  Staff held weekly “Coffee + Convo” and “Lunch + Learns” with local entrepreneurs and community members to maintain community connection. Programming was published on Stoke’s social media channels.  In April, Stoke held “FlintConf,” a startup conference for “hipsters, hackers, and hustlers.” This three-day, virtual conference consisted of sessions focused on lean methodology, marketing, branding, finance, and wellness.  In September, Stoke organized “Big Ideas,” a mixer for Denton creatives and entrepreneurs. Community members could share ideas and projects for improving Denton.  During Global Entrepreneurship Week, Stoke organized speakers to share branding tips, Denton’s AccelerateHER program highlights, and a State of Entrepreneurship. The week ended with a virtual Denton startup crawl.  The year ended with a total of 69 events for members and 46 programs taught by mentors and leaders of the Denton entrepreneurial community. ATTACHMENT(S): Exhibit 1 –2020 Stoke Annual Report STAFF CONTACT: Jessica Rogers Director of Economic Development (940) 349-7531 Jessica.Rogers@cityofdenton.com REQUESTOR: Staff initiated PARTICIPTAING DEPARTMENTS: Economic Development STAFF TIME TO COMPLETE REPORT: 2 hours Sessions 10,078 9.8% Overview Compared to Previous Period Avg. Session Duration 00:01:17 -11.6% Users 7,737 7.2% Bounce Rate 69.0% 17.8% Bounce Rate YTD Jan ▼ Users  YTD Sessions Trends YTD  Goal Completions 215 -11.9% Users Users (previous year) Jan 2020 Feb 2020 Mar 2020 Apr 2020 May 2020 Jun 2020 Jul 2020 Aug 2020 Sep 2020 Oct 2020 Nov 2020 Dec 2020 0 500 1K Bounce Rate Bounce Rate (previous year) Jan 2020 Feb 2020 Mar 2020 Apr 2020 May 2020 Jun 2020 Jul 2020 Aug 2020 Sep 2020 Oct 2020 Nov 2020 Dec 2020 0% 50% 100% Sessions Avg. Session Duration Sessions (previous year) Avg. Session Duration (previous year) Jan 2020 Feb 2020 Mar 2020 Apr 2020 May 2020 Jun 2020 Jul 2020 Aug 2020 Sep 2020 Oct 2020 Nov 2020 Dec 2020 0 500 1K 1.5K TOUR REQUESTS  Website Goal Breakdown YTD CONTACT FORM  Newsletter Sign-up (Goal 1 Completions)Newsletter Sign-up (Goal 1 Completions) (previous year) Jan 2020 Feb 2020 Mar 2020 Apr 2020 May 2020 Jun 2020 Jul 2020 Aug 2020 Sep 2020 Oct 2020 Nov 2020 Dec 2020 0 20 40 Tour request Form Submit (Goal 3 Completions)Tour request Form Submit (Goal 3 Completions) (previous year) Jan 2020 Feb 2020 Mar 2020 Apr 2020 May 2020 Jun 2020 Jul 2020 Aug 2020 Sep 2020 Oct 2020 Nov 2020 Dec 2020 0 10 20 google / organic google / cpc (direct) / (none) m.facebook.com / referral t.co / referral twu.edu / referral 33.3%12.5% 16.7% 29.2% google / organic (direct) / (none) twu.edu / referral google / cpc dallasinnovates.com / referral fb / ads Stoke Coworking Newsletter / email others 22.4% 19.8% 22.4% 6% 9.5%11.2% google / organic google / cpc Stoke Coworking Newsletter / email (direct) / (none) Form Submission / email Facebook / post Instagram / post of photo and copy others 28.6% 15.7% 5.7% 8.6% 10%24.3% NEWSLETTER SIGN UP Source/Medium Source/Medium Source/Medium Contact (Goal 2 Completions)Contact (Goal 2 Completions) (previous year) Jan 2020 Feb 2020 Mar 2020 Apr 2020 May 2020 Jun 2020 Jul 2020 Aug 2020 Sep 2020 Oct 2020 Nov 2020 Dec 2020 0 2 4 6 Top Channels Sessions Pageviews 0 1K 2K 3K 4K 5K 6K 7K Organic Search Direct Paid Search (Other) Social Referral Email google (direct) m.facebook.com fb facebook.com twu.edu Instagram Stoke Coworking Newsletter Facebook others 44.2% 13.3% 3.8% 25% Top Trac Sources 0 500 1K 1.5K 2K 2.5K 3K 3.5K Stoke Coworking Stoke Memberships and Space Rental Pricing — Stoke Coworking AccelerateHER — Stoke Coworking RENT SPACE — Stoke Coworking Stoke | Coworking, Meeting, and Oce Space Events — Stoke Coworking Virtual Member — Stoke Coworking Coworking — Stoke Coworking Dedicated Desk — Stoke Coworking Users Top Pages  Top Cities by Users City Users Pageviews Denton 1,545    Dallas 1,186    (not set)1,011    Fort Worth 242    Lewisville 149    Irvine 132    Little Elm 129    Boardman 116    Frisco 113    Corinth 108    ▼ mobile desktop tablet 49.6%48.6% Users Demographics female male 47.5%52.5% Top Converters Organic Search Direct Paid Search Referral (Other) Email Social 28.4% 16.7% 6% 8.4% 8.4% 15.3% 16.7% Users 0 500 1K 25-34 35-44 45-54 18-24 55-64 65+ Facebook Twitter Instagram LinkedIn Jan 2020 Feb 2020 Mar 2020 Apr 2020 May 2020 Jun 2020 Jul 2020 Aug 2020 Sep 2020 Oct 2020 Nov 2020 Dec 2020 0 1K 2K 3K 4K Facebook Reach Twitter Reach Instagram Reach LinkedIn Reach Jan 2020 Feb 2020 Mar 2020 Apr 2020 May 2020 Jun 2020 Jul 2020 Aug 2020 Sep 2020 Oct 2020 Nov 2020 Dec 2020 0 20K 40K 60K 80K Social Media Followers Social Media Reach Blog Posts Expertise Building Blog (broad/general info relate…Stoke-Focused Blog (coworking info, event previe… Jan 2020 Feb 2020 Mar 2020 Apr 2020 May 2020 Jun 2020 Jul 2020 Aug 2020 Sep 2020 Oct 2020 Nov 2020 Dec 2020 0 1 2 3 m.facebook.com facebook.com Instagram Facebook l.facebook.com linkedin.com LinkedIn Twitter lm.facebook.com others 390 239 150 178 191 Social Media Trac Facebook Twitter Instagram LinkedIn Jan 2020 Feb 2020 Mar 2020 Apr 2020 May 2020 Jun 2020 Jul 2020 Aug 2020 Sep 2020 Oct 2020 Nov 2020 Dec 2020 0 500 1K 1.5K Social Media Engagement General Public Newsletter Open Rate General Public Newsletter CTR Jan 2020 Feb 2020 Mar 2020 Apr 2020 May 2020 Jun 2020 Jul 2020 Aug 2020 Sep 2020 Oct 2020 Nov 2020 Dec 2020 0% 10% 20% 30% 40% 0% 1% 2% 3% 4% Member Newsletter Open Rate Member Newsletter CTR Jan 2020 Feb 2020 Mar 2020 Apr 2020 May 2020 Jun 2020 Jul 2020 Aug 2020 Sep 2020 Oct 2020 Nov 2020 Dec 2020 0% 20% 40% 60% 80% 0% 5% 10% 15% Event Reminder CTR Event Reminder Open Rate Jan 2020 Feb 2020 Mar 2020 Apr 2020 May 2020 Jun 2020 Jul 2020 Aug 2020 Sep 2020 Oct 2020 Nov 2020 Dec 2020 0% 0.5% 1% 1.5% 2% 2.5% 0% 10% 20% 30% 40% 50% Email Newsletter Subscribers Email Subscribers Jan 2020 Feb 2020 Mar 2020 Apr 2020 May 2020 Jun 2020 Jul 2020 Aug 2020 Sep 2020 Oct 2020 Nov 2020 Dec 2020 0 200 400 600 800 General Newsletter Specialty Emails Member Emails CLICKS IMPRESSIONSCOST PER CLICK Impressions Clicks Jan 1 Jan 25 Feb 18 Mar 13 Apr 6 Apr 30 May 24 Jun 17 Jul 11 Aug 4 Aug 28 Sep 21 Oct 15 Nov 8 Dec 2 Dec 26 0 25 50 75 100 Stoke Keywords via Search Console Facebook Advertising 2,138 CLICKS 122,212 IMPRESSIONS $1.09 COST PER CLICK Contact (Goal…Tour request…Newsletter Si… -1 0 1 Conversions COST PER CONVERSION NA COST PER CONVERSION $27.04 1 Newsletter S…Contact (Goa…Tour request… fb0 1 2 2 0 0 Conversions 32 $3.38 7,874 64 Member Companies Memberships + Venue Rental Oce Memberships Nights and Weekends Dedicated Memberships Virtual Memberships Coworking Memberships Jan 2020 Feb 2020 Mar 2020 Apr 2020 May 2020 Jun 2020 Jul 2020 Aug 2020 Sep 2020 Oct 2020 Nov 2020 Dec 2020 0 20 40 60 80 100 41 8 Membership Breakdown Half Day Full Day Hourly Jan 2020 Feb 2020 Mar 2020 Apr 2020 May 2020 Jun 2020 Jul 2020 Aug 2020 Sep 2020 Oct 2020 Nov 2020 Dec 2020 0 1 2 3 4 5 Venue Rental Breakdown Tours Given Total Venue Rentals 48% % of Tech/Tech enabled Events 2 Regional/Startup/Tech (Sponsored) 13 Educational  (Hosted) 15 Startup/Tech  (Hosted) 46 Mentor Sessions  (Hosted) 69 Member Events  (Hosted) Number Of Events Event Attendees Jan 2020 Feb 2020 Mar 2020 Apr 2020 May 2020 Jun 2020 Jul 2020 Aug 2020 Sep 2020 Oct 2020 Nov 2020 Dec 20200 50 100 150 0 5 10 15 Event Breakdown Partnership Updates TWU - In 2020 - Stoke and TWU Center for Women Entrepreneurs launched AccelerateHER - a startup incubator for women entrepreneurs. This program received regional press coverage and forged new connections in the metroplex. Chamber of Commerce - Heather co-hosted the Denton Insider Podcast from August-December. Additionally, Heather served on the steering committee for Denton Emerging Professionals with is a forthcoming program of the Chamber. Denton Business Allies - Heather is serving on the Denton Business Allies committee coordinated by the Economic Development Department. UNT - Stoke sponsored UNT Hackathon and TAMS hack events. NCTC - Worked to host a small virtual tech career event. Program Updates Coffee + Convo - In March we changed our weekly group mentor session to be held virtually over Zoom. Lunch + Learns - In March we transitioned our monthly Lunch + Learn to be held virtually on Zoom. We record the sessions and add them to our content library on YouTube. FlintConf - FlintConf - Denton's startup conference for hipsters, hackers, and hustlers was held virtually at the end of April. Three afternoons of local speakers. Big Ideas - At the end of September we held our Big Ideas event where we heard business and civic ideas from the Denton community. Global Entrepreneurship Week - The Stoke team planned a series of virtual events for GEW including a startup crawl, panel discussion with the member of the AccelerateHER cohort, and a State of Entrepreneurship talk. Hickory & Rail Ventures PROFIT AND LOSS January - December 2020 Cash Basis Monday, January 18, 2021 11:41 AM GMT-06:00 1/1 TOTAL Income 50000 Revenue 195,197.58 Total Income $195,197.58 GROSS PROFIT $195,197.58 Expenses 71000 Facilities 24,429.21 72100 Advertising & Marketing 6,758.51 72200 Bad Debt 600.00 72300 Bank Charges 15.00 72400 Communication 1,204.92 72500 Continuing Education 223.35 72550 Staff Development 1,142.44 72600 Dues & Subscriptions 1,020.36 73000 Insurance 1,702.00 74100 Lessee Expenses 4,107.13 74300 Merchant Fees 910.28 74400 Minor Equipment 1,609.69 74500 Office Supplies 2,056.91 74600 Payroll Processing 709.92 74700 Postage & Shipping 36.30 74800 Software 4,135.43 75000 Legal & Professional Services 1,361.50 76000 Travel 485.77 78000 Payroll Expenses 78100 Salaries 141,975.70 78600 Employee Benefits 10,070.29 78700 Payroll Taxes 10,928.44 78800 Contractors 2,930.50 78900 Reimbursements 121.33 Total 78000 Payroll Expenses 166,026.26 Total Expenses $218,534.98 NET OPERATING INCOME $ -23,337.40 Other Expenses $52.00 NET OTHER INCOME $ -52.00 NET INCOME $ -23,389.40