Cleveland : Innovation + Job News

Last May, Brandt Butze had what he calls an “Aha! moment.” He was 370 pounds and wanted to lose the weight and get in shape. He went on Facebook and posted that he was committed to walking.
 
“I had 225 comments on my Facebook page and all sorts of support,” he recalls. That first morning, his sister and a group of people met Butze and they went for a 30-minute walk. “We jogged the last block,” he says. “I was in tears there was so much support. Thirty-minute walks turned into 45-minute walks and in three weeks, I was walking six to seven miles a day.”
 
In fact, Butze had so much support that trying to schedule people to walk with him was interfering with actually walking. “I was spending three to four hours a day trying to plan walks,” he says.” I looked for an app to help and I realized other people were in the same boat I was -- finding some way to have a workout schedule where people can work out with other people.”
 
So Butze and friends Aaron Marks, Jonathan Schultz and Kevin Rahilly created FitVia, a mobile app that allows users to post their workout schedules and find others to join them.
 
“We tried different hypotheses, talked to friends and friends of friends and asked them what motivated them, what de-motivated them,” Butze says. “We realized we were on to something.”
 
The four approached LaunchHouse for help developing FitVia and were accepted to the accelerator program. FitVia will launch by the end of the year. “We’re launching this as a premier app initially,” says Butze. “We’re hoping to gain as many people as possible as quickly as possible.”
 
FitVia plans to hire additional staff as they grow. Butze plans to branch out to corporate America as they grow, targeting HR departments as a way to keep healthcare costs down.
 
To date, Butze has lost 71 pounds.

 
Source: Brandt Butze
Writer: Karin Connelly

NorTech received one of seven Regional Innovation Cluster contracts from the Small Business Administration to grow its flexible electronics cluster FlexMatters. The four-year, $385,000 contract will allow NorTech to train and assist small companies in the FlexMatters cluster in attracting larger market leaders as customers through its Anchor Customer Engagement (ACE) Academy.
 
“One of the really important things about this contract is it gives us recognition on a federal basis,” says NorTech vice president Byron Clayton. “Being nationally recognized as an emerging cluster helps us bring more federal funding to the region.”
 
This is the fourth time the FlexMatters cluster has been recognized on a national level. The ACE Academy will help give the region an upper hand in terms of both jobs and securing the first customers for new technologies.
 
“It’s designed to help small, emerging businesses capture the first significant customers,” says Clayton of the academy. “It helps them be prepared so if they do get that opportunity to present themselves, they put their best foot forward. The goal is to go away with something concrete.”
 
Success of these businesses translates into more jobs in the region. “It really helps small businesses grow and create high paying jobs in growth industries,” says Clayton. “We’re already seeing success, and we’re just getting started.”

The SBA award is for one year, with a four year renewal option.

 
Source: Byron Clayton
Writer: Karin Connelly

Big River helps organizations get the most out of their online giving campaigns with a simple theory: Appeal to what the potential donors react to and they will donate. The theory apparently proves correct. The 18-month-old cloud-based online fundraising platform has won accolades from clients such as the Cleveland Museum of Art and Lorain County Metro Parks in Big River’s ability to increase online giving.
 
“It’s almost like the last 17 years of e-commerce hasn’t made itself accessible to nonprofits,” says Big River founder and CEO Ron Cass. “Nonprofits haven’t done more than PayPal. The Big River product puts the most effective appeal in front of the donor at the right time to maximize that donation.”
 
The key is telling donors what the impact of their donations will be. “They want to know what their money does,” explains Cass. “They want to know what impact their gift is going to have. We allow organizations to create donation products, and then target those asks based on the donor’s history with the organization.”
 
Big River has eight customers of varying sizes and is already generating revenue. The Cleveland Museum of Art is one fan of Big River, reporting that membership has doubled since they hired Big River.
 
One of the first companies to be a part of Bizdom’s Cleveland operation, Big River is expanding within the Bizdom offices. JumpStart announced on Tuesday, November 13th a $250,000 investment in Big River to further expand.
 
“Any time you get an investment it changes the slope of the company,” says Cass. “We are going to focus on sales, marketing and product development.”
 
In addition to adding some new tools and bringing some ideas to reality, Cass also hopes to expand his staff. “A big part of the investment is hiring -- rapidly,” he says. “Around the order of four people in marketing and development.”
 
In the meantime, Cass was impressed with the connections he made at JumpStart’s Entrepreneur Expo this week. “I spoke to a lot of people who said, ‘I know someone with this organization,’” he says. “I got about 20 leads. I was very impressed.”

 
Source: Ron Cass
Writer: Karin Connelly

NASA will showcase its best developments in its Space Technology Program November 28-30 at NASA Technology Days, held at Cleveland Public Auditorium. The event will allow the public to see what technological developments come out of NASA Glenn Research Center, many of which could be adopted and implemented in the private sector.
 
NASA Glenn is working with NASA’s Office of Chief Technologies, which conducts ground experiments to further space technology. “Ninety-nine NASA technologies will be showcased,” says Joe Shaw, deputy director of NASA’s Office of Technology Partnerships and Planning. “We want to demonstrate the existing technologies.”
 
Attendees will have the chance to see technologies ready for commercialization, learn about opportunities to partner with NASA on technology development and meet with major research companies.
 
The technologies featured can be transferred into a variety of industries, says Shaw, such as advanced energy, automotive, human health and innovative manufacturing. “These are technology experts showing off their technologies,” says Shaw. “Even though they were developed for space aeronautics, they can be broadly used across many sectors. These industries are extremely important, not just for Northeast Ohio, but for to the Midwest. There are a large number of people in these sectors.”
 
The hope is Technology Days will build partnerships and foster technology transfer between NASA and local businesses. “These technologies can be moved quickly to the commercial sector, which creates economic development, which creates jobs,” says Shaw. This will give companies a chance to learn about the opportunities.”
 
The event is free and open to the public.

 
Source: Joe Shaw
Writer: Karin Connelly

Developing Cleveland area businesses showed off their ideas, technologies and talents at the 2012 Northeast Ohio Entrepreneurial Expo and JumpStart Community Meeting on Tuesday, November 13 from 1 to 5:40 p.m. at CSU’s Wolstein Center.
 
“The theme is, ‘What’s next Northeast Ohio,’” says Samantha Fryberger, JumpStart director of communications. “The idea being, a lot of companies are really early in their development.”
 
The expo featured 96 area tech startups as well as 32 support organizations, such as Bizdom, Youngstown Business Incubator, Shaker LaunchHouse, Akron ARCHAngels and Ohio Aerospace Institute. Nine student companies were also featured, one of which will be presented with an award at the event’s close.
 
The showcase was followed by a panel discussion featuring success stories of area companies that have grown into multi-million dollar businesses. “[These are] some of the biggest success stories who have merged, sold, been bought out or exited,” explains Fryberger.
 
Goldman Sachs representatives talked about its 10,000 Small Businesses program, followed by an announcement of JumpStart’s newest portfolio companies.
 
And of course, investors were also on hand to see what the next great thing is in the region. Fryberger says 25 investors attended the event last year, and she expected the same this year.
 
“It’s a little bit of everything,” says Fryberger. “It’s an opportunity to network. There are some of these companies who could help each other quite a bit. And if you’re very early in development, this is your first opportunity for exposure.”

 
Source: Samantha Fryberger
Writer: Karin Connelly

TWIST Creative had been adverse the word "agency" for many years, as the term represented something the Cleveland-based branding firm was not. That all changed eight months ago when TWIST shifted its strategy to target bigger clients, spurring a period of growth that has led to a flurry of new hires as well as new customers.

That's four new hires and about 20 new clients to be exact, says Michael Ozan, TWIST's president and chief creative officer, who in 2000 founded the firm with wife Connie. Add promotions and an overall company realignment to that list and TWIST has had a very busy 2012.

"We looked at our market position and decided to turn in the direction of being an agency," says Ozan. "We needed more people [on hand] to make that change."

In September, TWIST hired a new director of media relations, an art director and two designers. The agency also named marketing director Josh Taylor as its new director of strategy and development, while lead senior designer Chris Oldham is now director of design operations.

To its burgeoning client portfolio TWIST added 20 new brands, including big-name consumer product companies Hoover Vacuum and Hinkley Lighting; aerospace industry manufacturer Voss Industries; and multi-market restaurateur Paladar.

This was an exciting year, but one also full of difficult changes, says design director Connie Ozan. Although the former boutique is now a full-service brand agency, the challenge for TWIST looking ahead is to continue to grow its position within the market.

 "There's been lots of energy over the last eight months," she says. "It will take awhile for the new team to gel, but 2013 is going to be a great year."
 

SOURCE:  Michael Ozan, Connie Ozan
WRITER: Douglas J. Guth

Mike Stanek, president of Cleveland Cycle Tours, is offering the newest way to see Cleveland: A group bike tour. But unlike most group bike tours, this one employs just one vehicle. Nearly the whole group gets behind powering this 15-person, 1,600-pound bike.

“We are a group party bike, a group cycling experience,” Stanek explains. “There’s no motor, there’s no other way to move it except to pedal it.”
 
Ten people pedal Stanek’s 15-person bike, whether it’s a site-seeing tour, a pub crawl, a corporate team-building event or a wedding. Stanek can also haul the bike out to any location a customer chooses. A driver steers and operates the brake. The bike goes four to five miles per hour, and Stanek designs the routes to be mostly flat.
 
Cleveland Cycle Tours has hosted three or four tours since launching in September. Although Stanek applied for the license in July, some red tape kept him from officially launching. For now he is focusing on a successful spring tour season. He’s received a lot of support so far. “We’re building nice relationships with the taverns downtown and in Ohio City,” he says.
 
Stanek got the idea from a group in Minneapolis who brought a similar bike there from the Netherlands. Today that company has seven bikes operating in Minneapolis. Stanek hopes to grow his company in Cleveland similarly.
 
“The ultimate goal is to purchase a second or third cycle for Ohio City and Lakewood,” Stanek says. “The biggest challenge is finding a 10-foot high garage because the bikes are 9-feet, 4-inches tall.”
 
Right now, Stanek operates Cleveland Cycle Tours with his wife, who runs the daily operations, and oldest son, who drives the bike. Stanek hopes to hire and train three or four more drivers by spring.

 
Source: Mike Stanek
Writer: Karin Connelly

Munchit co-founders Tim Holmes and Jon Dinardo were living worlds apart -- Holmes in London and Dinardo in Los Angeles -- but they had one thing in common: the desire to find a better way to snack.
 
“I was based in London and lived inside the city and ended up eating a lot of junk,” says Holmes, a native Brit. Meanwhile, Dinardo was living a fast-paced lifestyle on the west coast. The two, along with Holmes’ wife (and Dinardo’s sister) Nicole, were craving something better.
 
So the three moved back to Dinardo's Ohio hometown to start Munchit, an all-natural snack company. Munchit sells snack boxes, either on a weekly or monthly subscription basis, in which the buyer chooses from 25 wholesome snacks. Snacks feature things like dark chocolate espresso beans, nuts, cranberries, rolled dates and seed mixes. Each box features four different snacks.
 
“You log in and go through all our snacks,” explains Dinardo. “If you love 18 out of the 25 items we mix it up each time.”
 
Holmes and Dinardo source their products from small, local companies as well as national family-owned suppliers. “All of our food is 100-percent natural, with no preservatives or artificial colors,” says Dinardo. “The snacks are portion sized and are 180 calories.” They focus on environmental issues, keeping packaging to a minimum.
 
They decided to start the company in Cleveland to not only be close to family, but also for economical reasons. “Cleveland is a good area logistically because it’s very close to the hub of business,” says Holmes. “The cost of suppliers is right.”
 
Munchit currently is trying to raise $50,000 by Oct. 25 on Kickstarter. “Our goal right now is to launch and stay afloat in the short term,” says Holmes. “We want to make it past the first year. After that, the opportunities in the market are open to us to grow and expand.”
 
While right now it is a family affair, Holmes and Dinardo predict they will hire people to help with packaging and fulfillment as they grow. Eventually they plan to hire people to help with finance and bookkeeping.

 
Source: Jon Dinardo and Tim Holmes
Writer: Karin Connelly

Mobile workforce management software company TOA Technologies has spent most of its existence dealing with the "nuts and bolts of American industry," says Jeff Wartgow, vice president of channels and alliances. It's the company's tech, for example, that ensures the cable technician is getting a proper signal so he can complete his work.
 
Thanks to its recent partnership with Racktime Sales & Marketing Services, a Netherlands-headquartered field marketing services provider, TOA now gets a taste of the "sexy" side of the tech industry, Wartgow says. Racktime will be using TOA's  new ETAworkforce and ETAdirect Professional software to optimize its mobile business operations, which include cool stuff like DVD displays and Playstation demo booths.

"Racktime is a fun, young company," says Wartgow. "It's great to see that side of the culture coming into the market."
"Field marketing" represents the distribution or sampling of promotions in the public space. TOA software will assist Racktime in automating assignments, optimizing schedules and providing its customers with real-time visibility and collaboration capabilities.

Field marketing "is a completely new frontier for us," Wartgow says. "We had to find a progressive prospect like Racktime willing to take a risk on us."

Creating a product far afield from its core is exciting, says the TOA vice president. "Our mission is to keep expanding and taking on these challenges," adds Wartgow. "It's energizing to [work in] this part of the market."
 

SOURCE: Jeff Wartgow
WRITER: Douglas J. Guth

The Irish Taoiseach (Prime Minister) announced a new partnership between Ireland-based company i360medical and Cleveland Clinic Innovations during a speech at the City Club of Cleveland last week.
 
The partnership will result in i360medical representing the European wing of the Cleveland Clinic’s Innovation Alliance program -- the corporate venturing arm of the Cleveland Clinic. The program itself has 52 spinoff companies that have raised approximately $620 million in equity financing, according to Executive Director Chris Coburn.
 
i360medical bills itself as a medical device innovation company acting as an international and national hub for new healthcare ideas and medical technologies.
 
Frank Ryan, CEO at Enterprise Ireland -- a government funded organization tasked with developing and growing Irish companies in world markets, says there are two reasons why they wanted to work with the Cleveland Clinic.
 
“First of all, innovation. The clinicians here at the Cleveland Clinic are renowned for competence and expertise,” he says. “Secondly, it means exposing Irish companies to those clinicians and the development of new medical device technologies.”
 
Coburn says the Clinic first linked with Enterprise Ireland in the middle of the last decade. “20 percent of cardiologists in Ireland were trained in Cleveland Clinic,” he says, adding Cleveland’s strong Irish heritage was another building block early on in their relationship. It quickly became clear that Enterprise Ireland was “a perfect fit.”
 
“We view Enterprise Ireland as an absolute leader in terms of public-private entities looking to stimulate growth,” says Coburn. “This is a very sophisticated operation, and I think a role model for other entities, whether state or county or local, in terms of doing it right.”
 
 
Source: Chris Coburn, Frank Ryan, Brian O’Neil
Writer: Joe Baur

After Robert Knighton’s grandmother had a stroke, she could only use the right side of her body. It made keeping clean in the hospital difficult. Knight’s wife Nina, a nurse at the VA Medical Center, noticed the same problem with some of her patients.

“The bed-bound patient population can’t get up to wash their hands,” explains Nina. “If a nurse comes in and she’s contaminated and touches the bedrails, the patients have nothing to wash their hands.”
 
The problem gave Nina an idea. “After working at St. Vincent Charity Hospital and then the VA she noticed it more in conjunction with the spread of hospital-acquired infections,” says Robert. “One day she was driving and it just came to her that patients needed a personal convenient device.” So Robert and Nina formed RKN Corporation in 2010 and started to develop the Bedside Sani-Holder, a bedside hand sanitizer dispenser. “This is a smart dispenser that helps with compliance, reminds patients if they haven’t used it and tracks usage,” says Robert.
 
Working with agencies like MAGNET and NorTech, RKN is working on a prototype of the Bedside Sani-Holder. They expect to hit the market by the second quarter of 2013. The Sani-Holder is part of NorTech’s Speed to Market Accelerator.
 
“We’ve really been able to use Northeast Ohio to launch our product,” says Robert. “Cleveland is known for healthcare and technology. It kind of feels like we’re entering the market at the right time.”
 
Robert and Nina are targeting hospitals and nursing homes with the Bedside Sani-Holder. So far, interest has been high. “We have spoken with quite a few hospitals in Northeast Ohio and have received welcoming feedback and interest,” says Robert. “Humility of Mary’s purchasing department said they would be interested in trialing our product once we are ready to go to market.”
 
When their product hits the market, RKN will be hiring IT staff, customer service, sales reps and operations staff. Two people that have been helping with management tasks will also join RKN working in permanent project management and operations.

 
Sources: Robert and Nina Knighton
Writer: Karin Connelly

Lindsay Sims has been a lifelong renter and knows the headaches involved with trying to reach a property management office for leasing information. She also knows that property managers are not using social media effectively to promote their properties.

So, in 2011 Sims founded Renter’s Boom, a resource for property managers to use sites such as Facebook, Twitter and LinkedIn as leasing portals.
 
“We are a software and service company smashed together,” says Sims. “We offer three apps: refer a friend, a listings app, and a make an appointment to see an apartment app. It makes it easy because that’s where some users spend five to 10 hours of their day.”
 
Sims originally designed a maintenance app where renters could text the property managers. But after going through the Bizdom U program, she refocused her businesses. “I figured out what business was going to work,” she says. “The feedback was property managers wanted to know how to handle social media.”
 
With that feedback, Sims developed Renter’s Boom. “For the past six months we were really running as fast as we can, figuring out the silver bullet that works,” she says. Originally working out the Beta Space at MAGNET, Sims recently moved into new offices at E. 55th and Euclid.
 
Business is good. Sims has a solid client base and hopes to start hiring around the first of the year. “I want to make sure our revenue strategy is okay,” she explains. “But I’ll be looking for people to get our clients serviced -- sales and marketing people.” In the meantime, Sims is looking for a fall intern to help with the daily operations.

 
Source: Lindsay Sims
Writer: Karin Connelly

The LaunchHouse Accelerator kicked off its inaugural program on September 4 with 10 technology startup companies eager to move to the next level. The program is funded through a $200,000 ONEFund grant and a $50,000 grant from Clarion Direct Investment. Each company will receive a $25,000 investment from LaunchHouse to grow their business.
 
“We’re quite excited,” says LaunchHouse CEO Todd Goldstein. “It’s changing the way investments are made in Northeast Ohio. With a little bit of capital we work with them to go from idea to validation.”
 
Goldstein describes the accelerator program as “customer-centric,” emphasizing the identification and needs of potential customers to grow the business. The 12-week program will provide mentors and instruction to the startup owners, guiding them through set goals.

“We’re hitting the ground running,” says Goldstein. “We’re not starting from scratch. We’re looking at the best innovators and how the company has grown.”
 
More than 60 companies from around the world applied for the accelerator. Twenty were selected to make their pitches to a panel of experts. From there, 10 companies were chosen, nine of which are from Northeast Ohio. The hope is that these 10 businesses will remain in Northeast Ohio once they are better established.

“The goal is to keep these companies in the region,” says Goldstein. “We believe Northeast Ohio is prime for an explosion of entrepreneurs.”

 
Source: Todd Goldstein
Writer: Karin Connelly

TiE Ohio will recognize international entrepreneurs at its awards ceremony on Thursday, Sept. 20. Two Cleveland business executives, Jose Feliciano and Wayne Duigan, will be honored.
 
TiE Ohio is a resource for entrepreneurs to network and find mentors for their businesses. This event recognizes immigrant and American-born entrepreneurs who have taken their businesses to an international level.

“Entrepreneurs have the passion, the dream and they are willing to put themselves all in,” says Joe Cole, executive director of TiE Ohio. “We want to reward the entrepreneurs who are going global.”
 
Jose Feliciano, a trial lawyer with BakerHostetler, will receive the Community Catalyst Award. The award recognizes people who have supported immigrant entrepreneurs. “He’s really been in the forefront of advocacy of the immigrant entrepreneur,” adds Cole. “He has a predisposition to being an entrepreneur.”
 
Feliciano is the founder and chair of the Hispanic Roundtable, is former chairman of the Hispanic Leadership Development Program, founder of the Hispanic Community Forum and was a founder of the Ohio Hispanic Bar Association. He also hosts the monthly talk show, El Sol de Cleveland. “He’s really been out in the forefront,” says Cole.
 
Wayne Duigan, director international sales for Horizons, Inc. is nominated for the Global Entrepreneur award. “He has significantly grown Horizons’ global presence,” Cole notes. “They’ve really done a great job in establishing an international presence.”
 
The event will be held at the Ariel International Center at 5:30 p.m. Mark Kvamme, president and CIO of JobsOhio, will be the keynote speaker. 

 
Source: Joe Cole
Writer: Karin Connelly

Mario Schulzke has always been fascinated with the spirit and drive behind entrepreneurs. The Plettenberg, Germany native came to America on his own at age 16, went to college and ended up in advertising in Los Angeles.
 
“I always wanted to be an entrepreneur but I couldn’t because of my work permit,” Schulzke recalls. So in 2009, he launched IdeaMensch, a vehicle to celebrate and learn from entrepreneurs. “I’d always admired entrepreneurs and people who brought their ideas to life. The original idea was to learn more from these people.”
 
This year Schulzke, now 31 and with his green card, decided to take his search on the road. He and a few friends are traveling across the country, inviting local entrepreneurs to share their stories. “People with ideas truly live everywhere,” Schulzke says. “I figured there was no better way to start this than to go on a road trip and try to learn from these people in person.”
 
The group is organizing 50 events in 48 states in 115 days. This past week they were at Quicken Loans Arena. The entrepreneurs featured were Eric Wobser of Ohio City Inc., Joe Pulizzi of Content Marketing World, Laura Bennett of Embrace Pet Insurance, David Levine of Wireless Environment and Deb Papes-Stanzak of Ronwear. Each entrepreneur gave a 15-minute speech about how and why they brought their ideas to life, followed by a brief Q&A.
 
Schulzke’s goal is to get other would-be entrepreneurs to act on their ideas. “The goal is to encourage and inspire people to bring their ideas to life,” he says. “If I could get one person to say ‘I have this idea and I’m going to get started on it,’ I’ll be happy.”

 
Source: Mario Schulzke
Writer: Karin Connelly