Cleveland : Innovation + Job News

Electricity in places like Appalachia and the deserts of the Middle East can be somewhat scarce. But with a little help from Cleveland-based Technology Management Inc., those places could be led from the dark.

"What would your life by like without 24/7 electricity � 24/7 availability?" asks TMI CEO/President Benson Lee, who is also the founder. "There are many people who know what that's like."

TMI has been developing modular, solid-oxide fuel-cell systems since 1990, but the company isn't satisfied with simply using natural gas as its fuel. The company employs a chemical process converting "ordinary" fuel into electricity, using what's available in a specific area. In Ohio, soybeans and corn are choice.

There are only a handful of companies in the world using "ordinary" fuel-cell systems. "We are the only ones in the world with Ohio in the address," Lee says.

Companies like Lockheed Martin have taken notice. So have other big supporters, including the U.S. Department of Energy, Department of Defense, Department of Agriculture and the EPA.

"Having someone in the bleachers always helps," Lee says. "The typical technology company starts by pushing, and eventually the market starts getting it. We think we're seeing that happen now with fuel cells."

The portably designed device could be parachuted into places like the front lines of the Middle East. "If we can use it in Afghanistan, we can use it in places like Appalachia."

Currently, there are 14 people employed with TMI. "We decided to be the nimble, fast-moving entrepreneurial group."

Source: Benson Lee
Writer: Colin McEwen

About 100 years ago, 20 percent of Cleveland's population was composed of immigrants. Those entrepreneurial and innovative minds helped shape the Rockefeller-run city. Today, Cleveland's immigrant population has sunk to 4 percent.

TiE Ohio is hoping to reverse that trend.

The organization (founded in the 1990s in Silicon Valley) is filling a niche in Northeast Ohio's business-development landscape by focusing on immigrant and minority entrepreneurs within the region � and encouraging others to consider Ohio as a destination for new businesses.

The Ohio chapter of TiE (The International Entrepreneur) is the 50th out of 53 worldwide and celebrated its one-year anniversary in October. So far, so good.

While the chapter covers the entire state, most members are based in Northeast Ohio. Every month, 113 members of TiE Ohio meet at the organization's Cleveland office to socialize. And talk shop.

R�ka Barab�s, the executive director of TiE Ohio, says networking is key, but the organization also provides support to up-and-coming entrepreneurs through mentoring and business education programs.
But, why Cleveland?

"If you think about what the made the U.S. great -- and Cleveland for that matter -- it was immigrant entrepreneurs," she says. "If you came to the US to pursue your dreams, you were a risk taker� When the immigrant population is gone, you lose that fresh, entrepreneurial spirit."

There are plenty of opportunities to re-create a lively economy in Ohio, with a burgeoning medical and technology base. And the potential for lots of additional jobs.

"We certainly hope that will be the ripple effect of what we do," Barab�s says. "In our first year, we are just trying to promote international entrepreneurship."

Source: R�ka Barab�s
Writer: Colin McEwen

CardioInsight Technologies takes its work to heart. Literally.

The Cleveland-based company is working to develop the first non-invasive, real-time, beat-to-beat simultaneous mapping solution for the treatment of cardiac arrhythmias and heart failure.

And with heart disease as the leading cause of death worldwide, there is certainly a market for CardioInsight's work.

Headquartered at University Hospitals of Cleveland, CardioInsight has taken tremendous strides lately, including its involvement in a number of trials and its movement toward a commercial trial for its technology called Electrocardiographic Mapping.

The technology -- which takes non-invasive images of the heart's surface -- was developed at Case Western Reserve University.

The mapping and localization technology could be critical to ongoing efforts to improve the diagnosis and treatment of heart conditions, company officials say. The ECM will provide detailed cardiac electrical activity information for the entire epicardial surface of the heart for each heartbeat by combining body surface electrical data simultaneously with 3-D anatomical data obtained from CT scans.

Officials say ECM fills the gaps where current cardiac mapping falls short -- including simultaneous, beat-by-beat mapping and making the entire process quicker.

CardioInsight was quietly founded in May 2006 as a collaborative enterprise by Dr. Charu Ramanathan and Dr. Ping Jia, Case Western Reserve University, Jumpstart Inc. and Draper Triangle Ventures.

There are now 14 people employed with the company including contractors and researchers, says CardioInsight spokesperson Norma Simione. The technology has been evaluated extensively in animal studies and more than 75 human studies. Stay tuned.

Source: Norma Simione
Writer: Colin McEwen

A clinical-stage biopharmaceutical company with a growing pipeline of "potential best-in-class therapeutics" with high-hopes of tackling issues such as heart attacks, obesity and cognitive disorders�

Sound too good to be true?

The drugs � although still in the clinical stages � are very real to Athersys.

Currently, the Cleveland-based company is continuing its enrollments in safety and efficacy trials of its adult stem-cell therapy MultiStem, for heart attack patients and for those who run the risk of rejecting bone marrow transplants. MulitStem is a biologic product manufactured from human stem cells obtained from adult bone marrow.

However, Athersys is also exploring other avenues of development including medicines for the treatment of metabolic and central nervous system disorders � utilizing proprietary technologies, including Random Activation of Gene Expression (RAGE).

While the company is still in the clinical phase of developing its pharmaceutical remedies, Ahtersys leaders remain optimistic.

"Based on our research to date, we believe that MultiStem may provide key benefits over current standards of care in the bone marrow transplantation area, as well as other areas such as heart attack, stroke and other ischemic neurological disorders," Athersys CEO Gil Van Bokkelen says in a recent statement to his shareholders.

Van Bokkelen co-founded Athersys in October 1995 and has served as its CEO and a director from the beginning. Just recently, he rang the NASDAQ closing bell in Times Square.

"In addition to advancing our clinical and preclinical programs, we remain actively engaged in partnering discussions involving multiple programs," Bokkelen says.

Source: Gil Van Bokkelen
Writer: Colin McEwen

Ohio is emerging as a national hub for the growth of minority and female-owned businesses as well as those in the inner city, says Cathy Belk.

Want evidence? Consider the choice of Cleveland for a Dec. 3 conference that is expected to draw 250 entrepreneurs from throughout the Midwest.

Belk, chief marketing officer for Jumpstart Inc. -- the northeast Ohio venture development organization that accelerates the progress of high growth early-stage businesses -- says the conference is unique in its focus.

"This is definitely the first of its kind in Cleveland which focuses on minority, female and inner city early stage companies and raising capital for them," she says.

Titled "Transforming the Landscape of Business in America: A Minority Business Early-Stage Capital Summit," the summit is a partnership between JumpStart, The Initiative for a Competitive Inner City (ICIC), The Institute for Entrepreneurial Thinking, and The Marathon Club.

Two panels will feature expert angel investors and venture investors to help emerging companies understand what it takes to find capital.

Speakers will include Deborah Shufrin, senior vice president and director of programs, ICIC, who will focus on her organization's partnership with the Obama Administration in fulfilling the administration's Urban Strategy. Serial entrepreneur William Pickard will give the luncheon keynote address. Pickard organized the Detroit partners of the MGM Grand Casino in Detroit and owns a significant stake in five African-American newspapers, several automotive companies, and multiple McDonald's restaurant franchises.

The event also will feature investor pitch presentations, open to all attendees, from six of Northeast Ohio's most promising minority entrepreneurs.

For more information or to register, go here.

Source: Cathy Belk, Jumpstart Inc.
Writer: Gene Monteith

Geoff Hardman admits that his Cleveland-based company lacks the sex appeal of other, more glamorous tech startups. As a processor of customized stored-value programs, SparkBase operates behind the scenes, servicing its client base while garnering little attention.

"Folks never think about these systems, but somebody has to make them run," says Hardman, the company's president.

When a customer uses a gift or loyalty card at one of his or her favorite merchants, the transaction is wired to a company like SparkBase, which manages and keeps track of the money. Fast becoming a leader in the stored-value card field, SparkBase handles millions of transactions annually for merchants in five different countries.

What makes SparkBase unique, says Hardman, is that clients have complete control of the loyalty card programs, which allows them to rebrand them any way they wish before marketing them to merchants. The system is also fully customizable, permitting configurations that appeal to a wider range of companies.

"We are more like a technology partner," adds Hardman. "Every bit of code, every piece of hardware is owned by us."

Founded in 2004 and located in Cleveland's AsiaTown neighborhood, SparkBase has 10 full-time employees. That number is expected to double in the very near future, says Hardman, as the technology expands to new applications.

Source: Geoff Hardman, SparkBase
Writer: Douglas Trattner

Like most freelance jazz musicians, John Knific was always searching for his next gig. While attending classes at Case Western Reserve University, the student supplemented his income by playing in trios at restaurants. When Knific looked at ways to promote himself on the Internet, he found that the available tools were woefully lacking.

"The only real option was MySpace Music, which was like Web 1.0," explains Knific. What he was looking for, he adds, was something more like LinkedIn for musicians. The model didn't exist -- so he created it.

Founded last year, CitizenGroove is radically different from the "flat" one-person, one-profile social networking sites dedicated to music, says Knific, the Cleveland-based startup's CEO. Artists work with numerous people on various projects, making static portfolio pages inadequate. CitizenGroove's dynamic platform links musicians to all the artists with whom they have collaborated.

This structure makes it easier for listeners to discover new music by creating a trail from a favorite band or artist. Talent scouts can use the site similarly, finding acts that fill certain niches and attract specific audiences. Conservatories are finding the platform extremely useful in promoting their music students and helping them succeed in the post-grad world.

At present, the company employs the four founders and a fulltime developer. The team has wrapped a successful beta launch and is preparing to go live in early 2010.

After receiving his undergraduate degree, Knific was accepted to Case Western's medical school. That's on hold.

"I took a one year deferral to make a go of this company because I knew I'd never forgive myself if I didn't," he says. "I don't think I'm ever going back."

Source: John Knific, CitizenGroove
Writer: Douglas Trattner

Chefs adore locally grown produce. Farmers enjoy selling it to them. The problem, though, has always been connecting the far-flung parties in a mutually beneficial arrangement.

That's where Fresh Fork Market comes in. Founded by Case Western Reserve University grad Trevor Clatterbuck, the innovative start-up offers a supply chain solution that moves the product from grower to chef.

The concept � billed as a "virtual farmers market" � has caught the attention of the Cleveland Foundation's Civic Innovation Lab, which doles out $30,000 grants to start-ups it believes can provide a boost to the local economy. During its six-year existence, the Lab has contributed roughly $1.5 million to help nurture over 50 great ideas -- ideas that might not attract the interest of more traditional funders.

It appears to be working. A recent study conducted by Cleveland State University's Center for Economic Development found that the Civic Innovation Lab generated $9.4 million and added 128 jobs to the local economy. In addition to Fresh Fork, the Lab has extended a financial leg up to an indoor mountain bike park, a teen-centric magazine, and CityWheels, the first car-sharing service in Ohio.

The modest grants are often the difference between survival and success. Often more helpful than the cash is the mentorship and training these young companies receive from more seasoned professionals.

"The money from the Civic Innovation Lab really gave Fresh Fork traction," explains Clatterbuck. "We used it to build an innovative web platform for local farmers and customers to interact. It turns out that what was designed to be a tool for us is actually a desirable product to sell as well. The business has now evolved to involve licensing the technology to other parties across the country."

Sources: Trevor Clatterbuck, Fresh Fork; Civic Innovation Lab
Writer: Douglas Trattner

There's a glimmer of hope for "no-option" cardiovascular patients, thanks to the work being done by a Cleveland-based medical device company.

Cardiovascular disease continues to be the leading cause of death in America. For many sufferers, traditional treatments prove ineffective, leaving the patient with no practical options.

Now, advances in stem cell research and innovations developed by Arteriocyte Medical Systems, Inc., promise to give these so-called "no-option" patients a new lease on life. Arteriocyte is currently testing proprietary adult-derived stem cell therapies for use in surgery. The technology will allow a surgeon to harvest stem cells and platelets from a patient's own body for immediate use.

"Our bodies naturally build all the cells and tissues necessary to repair injury," explains CEO Don Brown. "By harvesting and redelivering therapeutically derived cells, we can affect repair of tissues damaged by poor blood flow."

In April, the company announced the receipt of a $4.99-million award courtesy of Ohio's Third Frontier Research Commercialization Program. Brown says that the state funding will allow the company to conduct efficacy studies of its bedside blood fractionation device for treatment of cardiac disease and also amputation prevention. Research partners within the state include The Cleveland Clinic, The Ohio State University and The University of Toledo.

Brown anticipates that the grant will lead to the generation of 30 new jobs during the next three years, and 50 during the next six. Success of the technologies could lead to $150 million in revenue within six years, he adds.

Source: Don Brown
Writer: Douglas Trattner

What if you could paint your house this fall knowing you wouldn't have to do it again for another 100 years?

That's the prospect facing those who maintain large steel structures like bridges and battleships, thanks to an innovative new coating and application process developed by MesoCoat, Inc., of Euclid.

The Federal Highway Administration estimates that the annual cost of corrosion nationally is $442 billion, or 3.1 percent of the gross domestic product. The estimated cost in Ohio alone is $15 billion.

MesoCoat is addressing that problem by developing a coating to replace the noxious chrome-based applications that have been the mainstay of corrosion control. But here's the best part: According to MesoCoat President and CEO Andrew Sherman, the new coating will last at least 100 years, compared to the current eight to 20 years. It's as cheap as current materials without the hazardous chemicals associated with traditional processes.

The patented coating, called PComP, was initially developed for application within the aerospace industry, extending the life of components such as shafts, actuators and landing gears. Now the company is preparing to launch FarCoat equipment that will match PComP with nanocomposite coatings for application to very large structures such as ships and bridges.

Over the next two years, Sherman expects both the coatings and the application technology to be available for use nationally.

MesoCoat, formed in 2007, now employs six, is looking to fill three open spots and, as its Series A financing is completed, will add another five. "When we transition into the marketplace we will about double," Sherman says.

Source: Andrew Sherman
Writer: Gene Monteith

Like many great stories, this one starts along the Appalachian Trail.

Making his way down the famed footpath, Tremont Electric, LLC owner Aaron LeMieux realized that his movement was generating loads of kinetic energy, evidenced by the annoying abrasions that appeared where his backpack met his hips. If only there was a way to harness that energy, he mused, and apply it to something more useful than blisters.

A few prototypes later, LeMieux had perfected nPower™, a technology that converts simple motion into electricity. The first commercial application of that technology is the PEG (personal energy generator), a lightweight gadget that can power handheld electronic devices. Slipped into a backpack � or purse or briefcase � the PEG charges iPhones, Blackberrys or GPS units via USB cable with every step its owner takes.

While other kinetic energy generators exist, none are as elegant, refined or practical as the PEG. Weighing just nine ounces, the slender cylinder-shaped unit charges mobile devices at the same rate as a wall outlet. Goodbye bulky back-up batteries; goodbye dead devices. 

The PEG was a hit at the 2009 International Consumer Electronics Show in Las Vegas, and Tremont Electric was included in BusinessWeek's recent feature on "America's Most Promising Startups." Production is expected to begin in October of this year, but already there have been over 1,000 preorders online at $149 each.

Jessica Davis, Tremont's director of sustainability, says the Cleveland-based company hopes to add 16 employees in 2010 and twice that by 2011. And those figures don't take into account secondary and tertiary job growth at suppliers.

Source: Jessica Davis
Writer: Douglas Trattner