Plug and Play potential: New investment could benefit economy quickly

Plug and Play will work with start-ups and entrepreneurs to help nurture cutting edge business opportunities as companies in the Orthopedic Capital of the World work to transform north central Indiana into a medtech hub that is much bigger than just hips and knees.

The hope and intention is that the efforts could help launch the next major orthopedic firm that will take root in Warsaw — a move that could boost the community’s economic development.

“The potential is for it to be an absolute game-changer — to be something that is bigger than anything we’ve seen in our community in a generation,” said Rob Parker, president and CEO of Kosciusko Chamber of Commerce.

State Rep. Craig Snow was asked about the possible influx of people participating in the program and seeking to get a foothold in the medical device field.

“I would think there will be a ton of entrepreneurs — what’s exciting is the market is huge,” Snow said.

Parker and Snow both attended the March 20 announcement at Zimmer Biomet’s headquarters of an arrangement to host a Plug and Play office at the orthopedic company’s downtown headquarters.

Plug and Play Warsaw is expected to bring in up to several dozen entrepreneurs a year to Warsaw, provide startup money and connect them with industry expertise to help launch companies.

Joining Zimmer Biomet initially in the venture with Plug and Play is Paragon Medical and OrthoPediatrics. More are expected to follow.

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Plug and Play posted the following video about its launch in Warsaw.
Click here to view.

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Snow has become the point person in the state legislature who is working closely with OrthoWorx on a pledge from the legislative leaders to provide $30 million from the state to initiate projects that will improve quality of life aspects to help attract more workers.

Snow hopes to parlay that money with other financial support from other entities to help finance capital improvement projects in Kosciusko County. The state will consider approving numerous projects that are part of the OrthoWorx proposal this summer.

The arrival of Plug and Play adds more urgency to that effort.

Officials concede not all startups that gain traction and establish themselves in the industry will decide to take root in Warsaw. On the other hand, there are good reasons to stay.

“Most of these guys who build out in orthopedics, they want to be in the 46580 zipcode because the suppliers are here,” he said.

Parker said he thinks the immediate effort to start working with the startups and providing investment dollars will have a direct benefit to the economy even though it might be somewhat hard to gauge.

The new pipeline of people and ideas could result in more people moving into the area and residual beneifts of new investment dollars being funneled into the local economy.

“There is a significant economic impact from these startups even if they don’t go big,” Parker said.

Officials, though, are willing to ‘play the long game’ and see what develops.

Speakers at last week’s announcement repeatedly used the term unicorn — an industry reference to new companies that establish a value of $1 billion or more.

“If we get 20 companies a year and if one of those turns into a unicorn … I think that classifies as a game-changing and altering to a community,” Parker said.

Plug and Play is considered a top tier venture capital firm with a strong track record.

The organization has helped 2,700 startups accelerate since 2006 and has a presence in more than 50 countries.

The Zimmer Biomet agreement is the first of its kind by Plug and Play in Indiana.

The company approach follows the belief that “technology has the power to make the world a better place” as it invests time and resources into entrepreneurs who are making an impact.

In addition to accelerating startups, Plug and Play provides matchmaking with corporate clients, and then invests in them.

Given its history, Parker is confident the Warsaw launch will succeed.