TechShop started in 2006 by Jim Newton, because he\u00a0 wanted a world-class workspace to work on his\u00a0 inventions.\u00a0 In order to rent the space and equip it with the necessary tools, Newton sought loan commitments from individuals, asking for $25, 000 each.\u00a0 He soon discovered that many people were interested in such a space and before long had the $350,000 required to get started in Menlo Park, California.\u00a0 The initial business model relied on people buying monthly memberships, renting workshop space and taking classes offered in the space.<\/p>\n
Interest in the model soon spread, and TechShop began expanding to other cities.\u00a0 To start in each city, a minimum number of investors providing a $25, 000 loan each\u00a0 is required.\u00a0 On average it can take 2.5-3 million dollars to get each site fully funded and equipped. TechShop’s model is similar to a retailer.<\/p>\n
Membership packages are similar to fitness centers and several levels of membership are available, including monthly rates, yearly rates, family rates and lifetime membership packages.\u00a0 Courses and workshop rental space may also be bundled with membership packages.\u00a0 There are about 100-200 classes per month, with 5\/6 people in each class.\u00a0 Each facility can handle around 50 members at a time, and the cap is normally around 500 members, to avoid overcrowding.\u00a0 Hours of operation are generally 9am -midnight.<\/p>\n
Each TechShop is divided into sections.\u00a0 Some areas are cornered off for dangerous, bulky equipment such as laser cutters, milling equipment etc.\u00a0 There are areas for tasks that are noisy such as sand -blasting and sanding, and craft areas for objects like high end embroidery equipment and 3D printers.\u00a0 There are also private workshops, studios and areas rented out to small businesses.\u00a0 Many people often end up hanging out in the common areas.\u00a0 There is also free coffee and popcorn, to make sure everyone gets something to eat.<\/p>\n
Initially, participants were 85% university\/college educated males.\u00a0 More recent numbers indicate more female involvement at around 35%.\u00a0 Members range in age from children up to people in their 80s.\u00a0 Demographics are typically flat –\u00a0 20s, 30s, 40s and 50s across the board.\u00a0 Artists, entrepreneurs and tinkerers are often the target market – or as Mark Hatch puts it “anyone who likes to make things.”<\/p>\n
In the last several years TechShop’s business model has changed.\u00a0\u00a0 Mark Hatch came on board in 2007 as CEO, and within a couple of years tripled the revenue and made TechShop a major brand in the commercial makerspace industry.\u00a0 One major change in the business model is the pursuit of corporate sponsors to build new locations and fund spaces.\u00a0 One report had TechShop’s revenue split as 80% corporate sponsorship and 20% membership fees.\u00a0 Partnerships with corporate sponsors such as Intel, Ford and the US Department of Defense, has helped open up more locations.\u00a0 With Ford in Detroit, Hatch started this new model.\u00a0\u00a0 Ford guarantees a certain number of members and ensures that TechShop will minimally break even for a few years.<\/p>\n
Often members and staff from corporate sponsors share the space.\u00a0 In Washington –\u00a0 in the case of the US department of Defense, members use the space during regular hours, but at night the Defense Advanced Research Projects Agency uses the facility to work on projects.\u00a0 Another reason behind the partnership is that DARPA wants to see if regular citizens can out invent military contractors.\u00a0 They also have a deal to train 1000 veterans in the next few years to run and own their own makerspaces.\u00a0 All in all, it looks like a win-win solution for Tech Shops.<\/p>\n
Also as a part of its business model TechShop offers Series B Preferred stock for sale to accredited investors.<\/p>\n
TechShop currently has 9 locations in the U.S.\u00a0 It is currently looking to expand\u00a0 to dozens of locations and is seeking $60 million of funding to do so.<\/p>\n
Success Stories<\/h3>\n
TechShop has been very successful in helping small startups get started and promoting entrepreneurial spirit.\u00a0 Perhaps you’ve heard of the Dodocase for ipad.\u00a0 Its creator, Patrick Buckley used TechShop facilites to learn how to design and create this ipad case.\u00a0 In his first year, he sold $4 million dollars worth of cases.<\/p>\n
This is not a unique success story.\u00a0 Many successful products have been created and fabricated at TechShop facilities.\u00a0 A Super Mario Bros. sounding lamp, portable credit card reader, infant warmer etc. have all started at TechShop locations.\u00a0 From there many products and start-up businesses get funding from Kickstarter <\/a>and other investors.\u00a0 The list is just too long to go into in depth. TechShop helps these businesses get their start by greatly cutting down on the cost of manufacturing and product development – as they have access to machines that they would otherwise\u00a0 have to purchase and could not afford.\u00a0 Makerspaces like TechShop, have started a new manufacturing and inventing revolution.<\/p>\n For more information, check out the TechShop website<\/a> or if you have the time, feel free to check out this long (1 hr.) YouTube video.<\/p>\n Now that you’ve seen a successful model of a makerspace, it’s time to engage in our next activity.<\/p>\n![\"YouTube](\"http:\/\/img.youtube.com\/vi\/88vTsKdysoo\/0.jpg\")
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