Cleveland : Innovation + Job News

Last month, the northeast Ohio-based Burton D. Morgan Foundation announced grants totaling $982,500 that will support a wide array of youth, collegiate and adult entrepreneurship endeavors.
 
“The Board meets three times each year to consider grants to support strategically positioned entrepreneurship initiatives in the northeast Ohio region,” explains Deborah Hoover, President and CEO of the Foundation. “These grants reflect our best thinking on how we can foster entrepreneurship in our region and help to create a pipeline of entrepreneurially-minded individuals who will help reinvent the economy through new ventures and fresh approaches to solving problems.”
 
Recipients include the Fund for Our Economic Future, BioEnterprise and Akron Public Schools. A complete list of awardees is available at the fund’s official website, bdmorganfdn.org.
 
Regarding how the funds will be used, Hoover says all recipients will be subject to the detailed agreements that govern each grant. “The grant purposes reflect a variety of strategies aimed at advancing entrepreneurship in the region.” These strategies will ultimately help grow and support Northeast Ohio’s entrepreneurial ecosystem.
 
The response from the entrepreneurial community throughout the state, Hoover says, has been overwhelmingly positive and upbeat, with notable excitement about the future. “As I have traveled to other regions of the nation in recent months sharing our story, people are fascinated to hear about the entrepreneurial spirit that is growing in our region and excited to learn how Northeast Ohio has come together to rekindle its entrepreneurial base,” notes Hoover. “The Burton D. Morgan Foundation is proud to be part of this unfolding and vibrant story of determination and resurgence.”
 
 
Source: Deborah Hoover
Writer: Joe Baur

BlueBridge Networks isn’t trying to be the biggest cloud-based data storage and recovery company; the Cleveland-based company simply wants to be the best for its customers. To ensure that it is, BlueBridge recently announced a $6 million investment in technology to build the best network and facilities possible.

“We are controlling our own destiny,” explains managing director and partner Kevin Goodman. “We’re building our network to be cheaper, better and faster. Over time, the $6 million will be about time, talent and treasure.”
 
The three key players at BlueBridge -- Goodman, CFO Phillip Weihe, and director of operations Petar Bojovic -- sat down and made a plan for strategic growth that includes hardware and software improvements, updates to facilities and hiring the right people to make it all happen.
 
“The three of us strategically put together what we have to do to build it better,” says Goodman. “It’s a terrific time for us. Our focus has always been the next step. We always look at operational excellence, but we’re also always poised for growth.”
 
Pat Garcia, associate partner of technology at Rosetta, one of BlueBridge’s long-term customers, backs up Goodman’s mission to be the best provider to its customers. “We’ve really had a good experience with their response time,” Garcia says. “They are service oriented and all about customers and getting things done right.”
 
In addition to its Cleveland headquarters, Bluebridge has data centers in Mayfield Heights, Columbus and, more recently, Grand Rapids, Michigan. Goodman says the centers are all located on the line of the technology telecom track and centrally located. The bulk of the investment will be in the Cleveland headquarters, Goodman says, where the majority of the cloud platform is located. The new and improved platform is called bCloud2.0.
 
BlueBridge currently has 14 employees and 30 contractors. Goodman says they plan to bring on 15 additional people this year, and already are hiring people from all over the country.

 
Source: Kevin Goodman
Writer: Karin Connelly

Lynde Vespoli has a background in the tourism industry. When she started hearing about projects like the Global Center for Health Innovation, the Cleveland Convention Center and the Horseshoe Casino, as well as plans to host the National Senior Games this summer and the Gay Games next, Vespoli decided to put her talents in destination management to work.
 
Last November Vespoli started Discover My Cleveland, a Destination Management Company. “Think of it as a one-stop shop for events and meeting planners who are coming to Cleveland,” Vespoli says. “With all of the events coming to Cleveland, we needed a company to assist groups full-time.”
 
Discover My Cleveland provides group tours of Cleveland attractions and landmarks, such as city bus tours and historical walking tours. Vespoli can tell visitors, and locals, all about the Daniel Burnham Group Plan, the 1903 plan that includes the public buildings on The Mall.
 
For the National Senior Games, Vespoli has organized some unique tours for the 11,000 athletes and 12,000 spectators expected. Group tours include everything from a visit to Amish country to a Beer and Bourbon tour, to a tour of Cleveland’s sacred landmarks.
 
These tours, which run daily from July 21 to July 28, are open to the general public as well. In fact, Vespoli encourages Clevelanders to join the tours and act as ambassadors. “It’s a neat way for people to do these things, but also mingle with the athletes,” she says.
 
Vespoli employs eight tour guides on a contract basis. She says she is always looking for additional guides, who have to learn a script and be able to direct a bus driver with their backs to the window.
 
Vespoli has some other groups lined up for her tours, and only expects business to increase. “”When people start to realize how affordable Cleveland is and how nice we are, they’ll start coming back,” she predicts. “This is a very exciting time for Cleveland and I’m excited to be a part of it.”

 
Source: Lynde Vespoli
Writer: Karin Connelly

Knowta recently raised more than $300,000 in angel investments, exceeding its goal of $250,000 to roll out the next phase of its software solution. The LaunchHouse company offers free or discounted printing at libraries in exchange for accepting advertising on the bottom of the printed pages. A percentage of the revenue generated from the full-color ads is then returned to the libraries to offset their costs.
 
Initially, founder Ryan Clark and his four partners tested Knowta’s usability at CWRU’s Kelvin Smith Library during the 2012-2013 school year. They looked at three factors: Would library patrons use the service; would it work well in the university environment and provide value to the university; and would it deliver desirable results to advertisers. “We got an affirmative response on all three,” says Clark.
 
The next step is to improve upon the software. Clark says the investments, 90 percent of which came from individual Northeast Ohio investors, will be used to roll out the next phase. “There are a number of features we want to add to make it more attractive to our advertisers and make it more robust,” he says. “We’re excited about it. We’ve received tremendous feedback from users at Case.”
 
Knowta currently is in talks with five other universities in Northeast Ohio, and Clark says they are open to talking to any school that is interested in their product. Their goal is to secure five to six new schools this year.
 
Knowta currently has 25 advertisers in a range of industries, most of them local. Clark’s goal is to tap into the national market. The most popular ads are for the food and beverage industry.
 
Knowta has two full time employees, one paid intern and uses four to five contractors to build out the second phase of software development. The company plans to hire a lead developer/solution architect by the end of the year.

 
Source: Ryan Clark
Writer: Karin Connelly

Ohio Third Frontier is enhancing its commitment to innovation, adding three new programs that identify methods to move technology products to the marketplace more quickly, resulting in more jobs and a stronger tech-based economy in Ohio.
 
“Each one of the new programs introduced by Ohio Third Frontier has a specific focus on advancing technologies to a place where they can be profitable in the market, creating companies and job opportunities in the process,” explains Katie Sabatino, Senior Media Strategist at the Ohio Development Services Agency’s Office of Communications. “By designing results-driven programs, Ohio’s economy will benefit and improve our foothold as a leader in innovation and advanced technology industries, which are key to our long-term success."
 
Requests for proposals were released in May for the following:

The Commercial Acceleration Loan Fund offers Ohio tech companies loans to assist in developing products and services where they may otherwise have difficulty securing funding due to the risks associated with developing technologies. Loans range from $500,000 to $2.5 million.

The Technology Commercialization Center program invests in new technologies with the goal of creating companies and jobs while helping businesses attract capital. Centers will commercialize research from universities, medical centers or nonprofit institutions and advance the technology into the marketplace. The program offers up to $25 million to create a center with the expectation that after four years it will be self-sustaining.

The Technology Asset Grant supports shared infrastructure projects needed to develop new technologies. Program funding can go towards facilities and/or equipment when a federal procurement agency or at least two Ohio companies believe it is critical to commercialize technology. The grant program offers up to $5 million per project for up to three years.
 
These programs, the state agency believes, will better streamline the flow of new technology products to the market.
 
“When developing and commercializing new products, roadblocks can slow the process, creating a gap where generating funding can be difficult,” Sabatino explains, adding that the new programs will help bridge the gap between funding and commercialization with the goal of impacting the Ohio economy.
 
Never one to rest, Sabatino says Ohio Third Frontier is always looking for new opportunities. “We are focused on continually evaluating Ohio’s strengths and growth opportunities and creating programs that benefit the state’s tech-based economy and create jobs.”
 
 
Source: Katie Sabatino
Writer: Joe Baur

Young professionals are full of ideas, but turning ideas into fruitful startups takes funding, which is not always easy to come by—especially for recent college graduates.
 
“We have a lot of talent in Cincinnati, and we don’t want that talent to leave this city," says Tangela Edwards, communications chair for FUEL Cincinnati. "We want to keep it here."
 
FUEL Cincinnati, which is a division of Give Back Cincinnati, is a local micro-grant funder that provides philanthropic entrepreneurs with the ways and means to kick-start an idea that will impact the city for the better.
 
The nonprofit funds projects year-round, but its second annual fundraising event, Fuel the Fire, takes place tonight, June 27. That event enables five projects to not only have the opportunity to receive funding, but also to gain recognition and exposure so that other interested individuals become aware of their concepts.
 
“Major donors might not want to give initially—they want to see how well you do,” Edwards says. “And sometimes that takes a small amount of money to help a startup get off the ground. Our main focus is to give awareness to five groups—they’ll be able to fundraise outside of this—but this is one thing we’re able to do for them.” At the event, participants will present their ideas, and the public will vote on its favorite project.
 
This year’s entries span a wide range of concepts, and cover everything from indoor composting, bike sharing, leadership and training for adolescent males, edible landscaping, and even a series of pop-up biergartens in the intersections of five alleyways in Walnut Hills.
 
“Community building, education, environment, diversity—the idea is that if they can fit into any of those categories, we want to hear from them,” Edwards says. “If someone has a great idea that they feel will impact Cincinnati in a positive way but they don’t have the funding or need additional ideas and support, then that’s what we’re here for.” 
Interested part.

Purchase a ticket for tonight's event here.


By Brittany York

Both Bizdom and LaunchHouse received hundreds of entrepreneurs applying for their respective accelerator programs this year. LaunchHouse received a record 115 applications for 10 spots in its 2013 LHX accelerator program, while Bizdom already has seen more than 100 applications this year from all over the country.

Both organizations each received $200,000 from Ohio’s New Entrepreneurs (ONE) Fund earlier this year. So, Bizdom and LaunchHouse decided to collaborate in investing in 20 technology startups this year.
 
"We feel it is important to collaborate with every organization that is helping to revitalize the region and LaunchHouse is certainly one of these organizations,” says Bizdom leader Paul Allen. “When we found out that Shaker LaunchHouse had also received ONE Fund support for its accelerator we reached out to see how we could closely collaborate to optimize the experience for all founders and to show the startup community that we are coordinated in our efforts.”
 
The organizations plan to share mentoring sessions, jointly host classes and open up their office spaces to each other’s entrepreneurs. “We have a strong network, and so does Bizdom,” says LaunchHouse CEO Todd Goldstein. “So why not collaborate to build a successful business community in Northeast Ohio?”
 
The whole idea is to foster the growth of Northeast Ohio as a hotbed for startups and a place that supports entrepreneurs. “Really, we are about the accelerator and the entrepreneurs working together to build a great community,” says Goldstein. “We’re not on an island by ourselves. We’re all out to build successful entrepreneurs in Northeast Ohio.”
 
Allen agrees that the collaboration will help the entrepreneurs as well as continue to attract startups from outside the region. “Participants will be able to socialize with a greater number of peers and hopefully they will be able to learn from one another,” he says. “Collaboration strengthens the Northeast Ohio entrepreneurial community because it gives us an opportunity to articulate a consistent and more powerful message within and outside the region about the opportunities and resources that exist here."

 
Sources: Paul Allen, Todd Goldstein
Writer: Karin Connelly

As an entrepreneurship/business management senior at Ohio University, and the president of the school’s Entrepreneurship Club, Richard Rodman has started two successful companies during his studies. Most recently, he noticed the need for some guidance in the crowdfunding trend.

So Rodman first started 530Funds in November 2012, a search engine and news site for the crowdfunding industry. “It was really hard to sift through Google to find the right platform,” he says.

But Rodman quickly realized the real need was in helping users navigate the forthcoming SEC regulations on equity crowdfunding and make sure they are compliant while raising money for their cause. Individuals, investors and crowdfunding platforms must comply with these regulations.
 
That’s when Rodman came up with Crowdentials. “Crowdentials is regulatory software for the rules SEC has created,” he explains. “It’s a simple web form -- kind of like TurboTax -- where you can cross-reference to see if you comply.”
 
Crowdentials helps take the legwork out of fundraising. Through the site and one form, investors, businesses and crowdfunding platforms ensure they are in compliance while raising money or investing in a new company. “We take care of compliance; you take care of business,” says Rodman says. “Businesses shouldn’t have to waste their time researching all the regulations.”
 
Crowdentials was accepted into the inaugural FlashStarts program, run by Charles Stack and Jennifer Neundorfer, this summer. Rodman says there was an “instant connection” in the interview process. “I think it’s going to do a lot,” he says of the program, adding that he enjoys working with the mentors and interns on hand and bouncing ideas off the other entrepreneurial teams.
 
Rodman has two partners.

 
Source: Richard Rodman
Writer: Karin Connelly

Zuga Medical, a medical device company, recently received a $250,000 investment from JumpStart to launch its dental implant system. In April Zuga received FDA approval for its system, which allows a general dentist to perform implants using a screw, a procedure previously done only by oral surgeons.
 
“Our patent-pending technology makes it simpler, easier and more cost-effective for both the dentist and the patient,” says Zuga CEO Steve Cornelius, who met the company’s founder and CSO, Chan Wang, a year-and-a-half ago through BioEnterprise and joined the board of directors. He then became CEO. With 15 years of experience in the dental industry, Cornelius was intrigued with Wang’s product. “Chan had a vision of making things simple for general dentistry.”
 
Zuga will use the JumpStart investment to conduct a soft launch with eight to nine local dentists. Those dentists will take a training course on placing the implants next month. “We’re using the local soft launch in Cleveland to prove out our business model and raise the next round of investments,” Cornelius says. “Our vision is to create a dental company right here in Cleveland.”
 
As Zuga grows, Cornelius hopes to hire three to four sales reps, a marketing person and a customer service rep by the end of the year.
 
Zuga Medical has also received investments from the Cuyahoga County North Coast Opportunities Fund and the Innovation Fund.

 
Source: Steve Cornelius
Writer: Karin Connelly

Last week, fifteen early stage business owners pitched their companies on the Cavs’ practice court at Open Pitch Night. The free event, held at Quicken Loans Arena and sponsored by Bizdom, The Incubator at MAGNET, Herman Miller and APG Office Furnishings, was designed to let owners of young companies perfect their pitches in front of a live audience.
 
“It’s an opportunity for them to get up in front of a group and practice their pitches, get some quick feedback from a bunch of folks and improve their delivery,” says Bizdom leader Paul Allen.
 
The 15 entrepreneurs were selected out of a group of 20 applicants. “We were looking for a diverse range of ideas and markets,” says Allen. “It’s a nice mix of people at different levels of maturity or evolution. Some businesses are little more than an idea; some are built out a little bit. They represent the continuum of startups.”

Attendees provided feedback and insight to the pitchers.

 
Source: Paul Allen
Writer: Karin Connelly

When Paul McAvinchey moved to Cleveland in April 2012 with his wife Rebecca to lead product innovation for MedCity Media, the seasoned entrepreneur was impressed with the entrepreneurial community here.

“When I got here, I was really excited to see all the startup activity going on,” McAvinchey says. But the native of County Tipperary, Ireland, who has also lived in Chicago, Munich and Dublin, was surprised that there were no informal events bringing all the startup organizations together. “I was used to having events where all the disparate groups came together to share their thoughts and ideas.”
 
So McAvinchey set out to start TechPint, a casual gathering for entrepreneurs and investors in internet technology. He made hundreds of phone calls and brought the area’s startup organizations together to plan the first TechPint event, which debuts tonight at 5:30 p.m. at Market Garden Brewery. Can't make it? No worries. McAvinchey plans to hold TechPint every three months. Space is limited to 150 people. Tickets are $12 each for preregistration and $15 at the door. Registration details are available here.
 
McAvinchey calls TechPint a “mini-tech conference in a bar with pints.” But that doesn’t mean TechPint isn’t a valuable resource. “It’s a really casual setting with drinks,” he says. “But we’re focused on a value-driven event where you are likely to go home with new ideas to work on or new things to think about.”
 
Many of the major startup organizations are on board, including JumpStart, Bizdom, LaunchHouse and MedCity Media. Speakers will be Mike Belsito, founder of eFuneral, John Knific, founder of DecisionDesk, Josh Walsh, founder of Designing Interactive, and Bizdom’s Paul Allen.

 
Source: Paul McAvinchey
Writer: Karin Connelly

With the help of an Economic and Community Development Institute (ECDI) loan obtained through the Bad Girl Ventures business plan program, Jillian Davis’ Toast wine bar opened in Cleveland's Gordon Square Arts District earlier this year. Her unique take on food, wine and cocktails fits right into the neighborhood. The restaurant/wine bar specializes in doing things a little differently.

“We serve revitalized farm fare, and most of what we serve is locally sourced,” says Davis. “We have wines that are off the beaten path and craft cocktails.” Toast makes their own tonics for their cocktails and grows some food ingredients on-site. All dinners are served up in small plate fashion. “People like to graze a little more these days,” Davis says.
 
While it took Davis a little while to open Toast’s doors, things are thriving now thanks to the BGV program and ECDI loan. “The BGV program was great, I learned a lot,” says Davis. “ECDI was someone BGV put forth as an alternative to the banks. It worked out really well for me. I got money for inventory and equipment. No one will give you money for that stuff.”
 
Davis has hired 10 employees, including chefs, servers and bartenders and hopes to add more staff as Toast grows. “Our chefs are really slaves to the kitchen at this point,” she says. “As we start spreading the word and getting people in the door, we’ll be getting more staff.”
 
Toast has fit right into the neighborhood culture as well. Davis calls Toast’s wine list a bit more “geeky” than other area places, and they are the only restaurant in the area serving small plates.
 
“We all really complement each other; there’s a great synergy in the area,” says Davis. “Our wine selection sets us apart. We’re different than everybody, but we fit in."

 
Source: Jillian Davis
Writer: Karin Connelly

Fairview Hospital's emergency services have gotten some much-needed room to breathe thanks to the opening of an $83-million emergency department and intensive care unit. 

The two-story, 155,000-square-foot expansion in Cleveland's West Park neighborhood debuted during a June 6 ribbon-cutting ceremony. The new ICU is scheduled to open this week.

The addition was constructed in front of the 504-bed hospital to offer improved access to emergency and critical care services, says Fairview president Jan Murphy. The expansion includes a 55-bed emergency department with a separate 16-room pediatric emergency space, two Level II trauma rooms, and an expanded ICU with 38 private patient rooms.

The undertaking dramatically enlarges the cramped quarters that sometimes had sick patients waiting in the hallway, Murphy notes. The Cleveland Clinic-affiliated hospital, which treats a significant number of patients from Lorain County, now has separate X-ray, CAT scan, lab and EKG facilities to help the emergency department speed diagnosis and treatment.

"The overall flow is conducive to faster, more efficient access," says Murphy.

The hospital president expects the new facility to handle up to 100,000 patients a year, a leap from the 76,000 visits the emergency department tallied in 2012. More room for patients and staff along with brighter lighting will lend to a more positive healing environment, she believes.

"We're thrilled to be doing this in a beautiful space," Murphy says.

 
Source: Jan Murphy
Writer: Douglas J. Guth

During the past school year, Youth Opportunities Unlimited (Y.O.U.) brought entrepreneurship education to five area high schools. Certified entrepreneur teachers helped more than 200 students come up with business ideas, create the businesses and execute the plans.
 
On May 23, 11 semi-finalists gathered at Ernst and Young’s education center in Cleveland to present their final business pitches in hopes of winning the E City (Entrepreneurship: Connecting, Inspiring and Teaching Youth) Northeast Ohio Young Entrepreneur of the Year title.
 
The semi-finalists gave eight-minute presentations, describing their businesses, marketing plans and business strategies. The audience voted to determine the three finalists and a three-judge panel selected the winners.

“They had fun, but it’s competitive,” says Carol Rivchun, president of Y.O.U. “They have to stand and make their PowerPoint presentations to the judges. The presentations included cash flows, Return on Investment, and budgets. And the judges really grilled them.”
 
Vanessa Galvan of T.W. Harvey High School in Painesville won the top honor of Young Entrepreneur of the Year, as well as $1,000 for her business, Piñata Time. Galvan's company makes kits that include everything needed to create a piñata. The judges felt Galvan has a strong business and marketing sense of what it would take to make Piñata Time a success.
 
Julianna Pierson of Shaw High School took home second place and $500 for Cat Sit, a cat sitting business that includes all toys and supplies.
 
Both Galvan and Pierson will travel to New York in October to compete for $10,000 in the Network For Teaching Entrepreneurship’s national business plan completion.
 
Maria Moreno, also of T.W. Harvey High School, took third place and won $250 for her customized floral accessories business, Bright Pickins.

 
Source: Carol Rivchun
Writer: Karin Connelly

Mansfield Frazier, the entrepreneurial mastermind behind the improbable Chateau Hough vineyard at E. 66th and Hough, says he will break ground on the world's first biocellar this year. He's raised more than half of the $100,000 needed to complete the experimental, innovative project.

"This is about growing crops in the wintertime," says Frazier. The biocellar, which has been described as a passive solar greenhouse, will consist of a glass structure built on top of the basement of a demolished home. "We plan to grow mushrooms because they're $12 a pound, an acre yield higher than anything else. This is about renewing neighborhoods, reusing buildings and creating wealth in the inner city."

"The biocellar is based on two concepts," Frazier explains of the glass-topped structure developed by permaculture designer Jean Loria. "One is a root cellar, which has been around thousands of years, and the other is a greenhouse. It's basically taking a greenhouse structure and putting it on top of a root cellar."

Frazier says that he hopes to break ground in July so that the biocellar will be completed by fall. The two- to three-month build-out will be handled by Don Lasker of ALL Construction, and Frazier will also employ a lot of neighborhood residents and guys from a local halfway house. The biocellar was designed by Arkinetics.

Funding sources include local council people, storm water management funding from the Northeast Ohio Regional Sewer District and a local angel investor.

"We're budgeting $100,000 for the first one, but hopefully the cost will go down once we know what we're doing," says Frazier. "We know the science is there."


Source: Mansfield Frazier
Writer: Lee Chilcote