EB-5 First Investor Approval page 3
Randy Newman Sioux Award page 4
Heidi Dammen, InfoTech page 6
December 2013
UND Center for Innovation Foundation Receives National Award
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he State Science and Technology Institute (SSTI) recognized the UND Center for Innovation Foundation’s tireless work through numerous exemplary programs, with the Excellence in TechnologyBased Economic Development Award. The UND Center for Innovation Foundation was the sole winner in the increasing access to capital category. “The Foundation’s success demonstrates that well-executed capital initiatives can help foster more entrepreneurship,” SSTI President and CEO Dan Berglund said. “In just a few short years, the UND Center for Innovation Foundation has shown its ability to secure angel, SBIR, and EB5 funding for successful ventures and create new companies and industries with high-paying jobs.” SSTI is a national organization that encourages state and regional growth through science, technology and innovation. “The UND Center for Innovation Founda-
tion is honored to be recognized by this leading national organization for state technology based economic development,” Foundation CEO Bruce Gjovig said. “This award is a reflection of the commitment of the North Dakota
public and private sectors to entrepreneurship and innovation and more specifically, to increasing the flow of entrepreneur capital in the region.” The UND Center for Innovation Foun-
Gjovig’s Jargon
dation’s mission is to foster innovation, entrepreneurship and access to entrepreneur capital. Since 2006, the UND Center for Innovation Foundation has helped 160 angel investors launch nine angel funds in North Dakota and Northwest Minnesota. The angel funds have invested in 38 ventures which, with co-investment and syndication, have resulted in over $24 million of equity investing, an average investment of $636,000 per venture. Additionally $30 million of Small Business Innovation Research (SBIR) funding has been secured through 132 awards for 30 companies, with an average of nearly $1 million per company awarded. The UND Center for Innovation Foundation has also been approved to manage its own EB-5 Regional Center. The EB-5 program is a federal program that provides companies an untraditional source of equity financing. The North Dakota/ Minnesota EB-5 Regional Center is the first and only organization approved by the U.S. continued on page 2
All best wishes for a joyous and Merry Christmas and a New Year filled with health, love, passion, prosperity and happiness! And may we all find a little wisdom along the way. God Jul og Godt Nytt År ! - - Sir Bruce
SSTI Award continued from page 1 citizenship and Immigation services to operate in North Dakota and/or Minnesota. In North Dakota, the EB-5 program is anticipated to account for $83M of foreign investment into local companies by the end of 2014. “A key to future success in North Dakota is fueling innovation and nurturing entrepreneurs who help build the businesses of tomorrow,” Commerce Commissioner Al Anderson said. “The capacity to innovate and grow entrepreneurs increasingly separates regions that are growing from those that are not. This award is evidence that our efforts are paying off.”•
The North Dakota/ Minnesota EB-5 Regional Center’s First Investor Approval
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n October 9, 2013, the North Dakota/ Minnesota EB-5 Regional Center received notification from the U.S. Citizenship and Immigration Services (USCIS) that the first EB-5 investor’s I-526 visa petition was approved for the Ultra Green project. For Ultra Green, this approval prompts the release of the investor’s funds from escrow to use for expanding operations to Devils Lake, N.D. from China. For the EB-5 investors, this approval makes the investor and their immediate family eligible to receive a U.S. conditional green card. The USCIS approval of one EB-5 investor’s I-526 petition in the Ultra Green project has a direct effect on all subsequent filings. The approval serves to strengthen the investment opportunity by shortening the processing timelines for future investors. After the UCSIS approves a project, all subsequent EB-5 investor filings are solely subject to validation that the investor is eligible to enter the U.S. and their funds are from legal sources. While EB-5 processing times have been particularly slow, this marks the first of many approvals for the Ultra Green project. The implications of the USCIS I-526 approval have not gone unnoticed. Following the notice of approval, the North Dakota/ Minnesota EB-5 Regional Center has secured several additional investors, putting Ultra Green 50% vested. Additionally, the North Dakota/Minnesota EB-5 Regional Center staff has received elevated interest from agents and potential investors. “It is a testament to the sound North Dakota/ Minnesota EB-5 Regional Center team and the Ultra Green project that we have been able to obtain EB-5 investors prior to this first I-526 approval. This news will certainly aid our efforts to successfully assist EB-5 investors.” Jordan Schuetzle, North Dakota/ Minnesota EB-5 Regional Center Director.
Photo taken by Ethan Arlien
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The North Dakota/ Minnesota EB-5 Regional Center is the first and only USCIS approved Regional Center in North Dakota and/or Minnesota. In North Dakota, EB-5 program may account for $83M of investment by the end of 2014. As a direct result, more than 2600 jobs are anticipated to be created from North Dakota EB-5 investments in the pipeline over the next 2 years. Program Background: The Immigrant Investor Program, also known as “EB-5”, is a job creation visa program. The program was created in 1990 by Congress and is administered by USCIS. The purpose of an EB-5 Regional Center is to stimulate economic development, create jobs, and improve regional productivity through direct foreign investment, while providing eligible foreign investors an opportunity to become permanent U.S. residents. The EB-5 program requires a minimum capital investment of $1,000,000 in a qualified project. If the investment is in a targeted employment area, then the minimum investment is lowered to $500,000. As a result of the EB-5 investment, a total of at least 10 full-time direct and indirect U.S. jobs must be created per investor. • www.ndmneb5.com
Center Receives SBA Grant for Entrepreneurs Funds help lift North Dakota business participation in federal innovation programs
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he UND Center for Innovation has been awarded a $95,000 Federal and State Technology Partnership (FAST) grant from the Small Business Administration. The aim of the FAST grant is to encourage more North Dakota businesses to participate in the Small Business Innovation Research (SBIR) Program and Small Business Technology Transfer (STTR) Program. To date, North Dakota companies have received 132 SBIR awards totallying $30 million. The UND Center for Innovation has been the North Dakota administrator for the SBIR outreach and assistance program since 1987. The program provides technical assistance to small businesses as they prepare competitive
SBIR/STTR Phase I & Phase II proposals. “Through the grant, the UND Center for Innovation will collaborate with key partners in the state and region to work with North Dakota technology companies with one-onone counseling and proposal review,” said Eric Veidel, SBIR/STTR Director. “We also will help entrepreneurs with SBIR conferences led by nationally-recognized presenters, and we will provide some financial support to help the entrepreneur complete their first SBIR or STTR proposals.” •
North Dakota Department of Commerce Grants Promote Tech-Based Business
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he North Dakota Department of Commerce offers the TechnologyBased Entrepreneurship Grant (TBEG) Program to technology-based businesses in North Dakota. To be eligible for a TBEG award, an applicant must be working with a certified entrepreneurial center such as the UND Center for Innovation Foundation. The TBEG program’s Phase I grants provide up to $10,000 to assist tech-based businesses with the following activities: 1. Access to Capital- technical assistance for technology-based entrepreneurs seeking sources of capital. 2. Marketing Assistance- develops programs or provides marketing assistance for a specific project. 3. Entrepreneur infrastructure- increase services, networking, education, and access to resources or facilitating those activities.
4. Entrepreneurial Talent- talent search to build an entrepreneurial team or tap into the youth/college entrepreneur pool. Entrepreneurs who have demonstrated success with a Phase I grant-funded project may be eligible for a Phase II grant for up to $14,000 if additional funds are needed. Applicants must work with a certified entrepreneurial center and meet the following eligibility criteria: * Is the underlying product or service technology-based? OR * Does the underlying product or services require the innovative use of technology for manufacturing the product or delivery of the services? * The sale of a product or service online does not in and of itself constitute a technologybased product or service. For more information, contact the UND Center for Innovation. www.commerce.nd.gov
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DVG Exit and New Investment
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akota Venture Group (DVG) recently exited one of their portfolio companies, Clean Republic, LLC. The portfolio company’s Chief Executive Officer, Michael Shope, was a former aviation and entrepreneurship student at UND. DVG invested in Clean Republic, LLC, in 2010 and recently received a return five times the original investment. DVG, a student-managed organization, is excited about this positive outcome and the outstanding learning experience it has provided for the group. DVG will look to continue this success and momentum moving forward. The group continues to see an increase of deal flow from quality companies throughout the region. DVG recently finalized an investment in Corvida Medical, a medical device company out of Iowa. While attending college at the University of Iowa, founders John Slump and Jerrod Garfield created a closed system transfer device (CSTD) for use in chemotherapy treatment. Recent studies have found that exposure to chemotherapy drugs have led to harmful effects for caregivers in the industry. Corvida Medical’s CSTD solution has shown to be more effective and easier to use than alternatives on the market. DVG has invested a total of $100,000 into the company with $40,000 coming from the Innovation fund and $60,000 from the Harvest Fund. Through due diligence, the group is confident in Corvida Medical’s product and management team. •
www.dakotaventuregroup.com Dakota Venture Group
Randy Newman Sioux Award Alerus CEO/President Randy Newman Receives Sioux Award
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andy Newman, Alerus Financial CEO & President, was honored with the Sioux Award—the highest honor given by the UND Alumni Association & Foundation for achievement, service, and loyalty. The award was presented to Newman on October 10, 2013, at the Sioux Awards Banquet in Grand Forks, N.D. Newman was recognized for his exceptional leadership of Alerus Financial not only during times of prosperity, but also during times of economic hardship such as the 1997 flood and 2008 economic downturn. Newman, a 1975 and 1979 graduate of UND, became president of Alerus Financial at 34 years of age. “The Sioux Award comes at the most successful time for our company,” Newman said. “Grand Forks, the University of North Dakota and Alerus Financial have not just survived, they’ve prospered.” Newman’s passion for education was emphasized in his acceptance speech, by stressing the importance and need of available student loans to allow access to college for those who can’t afford it. “I sincerely hope our
country continues to give these opportunities to our young people,” Newman stated. Newman serves as the chairman of the Board of Directors of the Federal Home Loan Bank (FHLB) in Des Moines, Iowa and represents the Des Moines FHLB on the Council of FHLBs in Washington, D.C. Newman shares his incredible talent as a trustee of the UND Center for Innovation Foundation, where he serves as the Vice Chair. Additionally, Newman stays connected to his alma mater in various ways including his current roles as committee member for UND Business School Advisory Board and UND Fellows. •
“ I have not failed. I’ve just found 10,000 ways that won’t work “ - - Thomas Edison
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Entrepreneurship Honors Dean Dennis Elbert and Alumus Tommy Leikas at Hall of Fame
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he UND Department of Entrepreneurship honored College of Business and Public Administration Dean Dennis Elbert and entrepreneur alumnus Tommy Leikas at its Hall of Fame and Changemakers Induction Ceremony on September 26, 2013. The event took place at the UND Center for Innovation’s Idea Lab. Dean Elbert was honored as an “entrepreneurship changemaker” for his contributions to the entrepreneurial environment in North Dakota and his support for entrepreneurship progress at UND. In 2014, Elbert will retire from his position as dean to join the UND Department of Entrepreneurship faculty, as the Eugene Dahl Chair of Leadership and Innovation. Tommy Leikas’ entrepreneur career started in 2006 as a UND student majoring in entrepreneurship. Leikas gave up his last two years of playing basketball for UND to focus his attention on developing his first e-commerce venture. Leikas secured a $20,000 investment from the student-run Dakota Venture Group, took out a loan from the Beginning Entrepreneur Loan Program with the Bank of North Dakota and for two years after graduation, located his new venture in the UND Center for Innovation’s Incubator. Leikas’ first e-commerce venture was winestandard.com. In 2012, he secured $1 million in angel capital to launch Glisten, a skincare and beauty company based in downtown Fargo, N.D. Leikas has developed, operated and sold several internet shopping sites around target industries, including the recent sale of his venture, TopHoops.com. • www.business.und.edu/entrepreneurship/ index.cfm
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DVG’s First Alunmi Reunion
he same week DVG welcomed 11 new talented students into the group, DVG celebrated its alumni. On October 5, 2013, DVG hosted its first official alumni reunion at Eagles Crest. During the event current and former DVG members reunited to share food, stories and ideas. Every member in DVG has played an intricate role in maintaining and growing a legacy of excellence, while providing unprecedented experiential learning opportunities for future students. Priceless stories were shared as alumni reflected on the impact DVG has had on their careers. In addition to providing leveraging advice for this rare opportunity, the current members provided an update on the fund and showcased the group’s continued success. The event reunited past members, while allowing current members the opportunity to build connections with the DVG alumni. DVG feels that growing the relationships between current members and alumni is invaluable in the success of the fund and continue personal and professional development of all its members. DVG plans to make it an annual alumni event, as it was well received by all in attendance. The group is already discussing ways to make the next gathering bigger and better DVG’s website has undergone a recent makeover, check it out for more news • www.dakotaventuregroup.com Dakota Venture Group
UND Entrepreneurship
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Software Spotlight: Heidi Dammen, InfoTech Solutions for Business Heidi answers questions about her experience in software systems:
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s senior software developer for InfoTech Solutions for Business, Heidi Dammen knows her way around a computer. A typical day in the office, Dammen searches through code on multiple monitors, humming along to music from ear buds. A sound on the computer alerts her that the financial development team from New York is calling for a web conference. Accepting the call, she smiles warmly at her coworkers and discusses the plan for the next install. Dammen grew up in Pipestone, M.N., and studied computer information systems at Southeast Technical Institute in Sioux Falls, S.D. Dammen started working for InfoTech in 2007 in the Minot, N.D., office and later moved with the company to Grand Forks, N.D. Over the years, Dammen has been instrumental in programming financial research publishing applications, internal applications and static web development. Dammen has been recognized for her technical abilities, work ethic, and bubbly personality.
What is the best part of being a software developer? It never gets old. Even though I have been working on the same project for the past few years, it’s different every day. I don’t feel like it’s a repetitive procedure. Technology is always changing and I enjoy challenging myself to keep up with it.
What has been the highlight of your career? I can see the growth in myself from when I started my career eight years ago. My team trusts and relies on me; I’m not the new girl anymore.
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What’s it like to be a woman in a male-dominated industry?
What is your favorite memory with the company?
To me, it’s challenging and exciting. I stand out because I’m female and I’m proud of that. With confidence, knowledge and experience, women can prove that they are just as important in the industry as men.
There are so many fun memories. At InfoTech, we often say “work hard, play hard.” We’ve had some really amazing holiday parties in both North Dakota and New York. I enjoy being a part of the team; my coworkers are like an extended family. If you are interested in a technology career or internship with InfoTech Solutions for Business in our Grand Forks or Manhattan offices, please contact us at hr@infotechfb. com. If Heidi’s job sounds like fun, connect on Facebook, Twitter or LinkedIn sites •
Were you surprised to find a technology career in North Dakota? Usually, you think of Silicon Valley when it comes to technology but with the internet, programming can be done anywhere. I have spent a few weeks working in InfoTech’s midtown Manhattan office. The city is vibrant and fast paced; it was thrilling to be part of that energy. But I also love being near my family in the Midwest so it’s great that with InfoTech, I can have the best of both worlds.
What is some advice you would give to young professionals interested in technology careers? Take any technology classes you can while in high school so you have an idea of your interests and strengths before you enroll in college courses. ASP.net has tutorials and videos for beginning programmers. Employers are looking for versatility; if you are knowledgeable and comfortable with various technologies, you will be more attractive to potential employers.
www.infotechfb.com InfoTech Solutions for Business
Ette Lifestyle Inc. Provides Achievable Lifestyle Model for Children
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tte Lifestyle founder, Tanya Friesen, turned personal experience into a business through the recognition of her harmful relationship with food. Friesen realized her current habits would not teach or inspire her own children to lead healthy lifestyles by balancing proper nutrition and portion control. Friesen and business partner, Emily Spicer, make it their business to provide the skills, tools, and education to teach parents and clients to eat mindfully, maintain weight-loss for individuals who are overweight or obese, and lead balanced lives. Realizing parents are role models to their children, Friesen said, “It’s our mission to help people teach their children, because if we don’t, history is going to continue to repeat itself.” Friesen and Spicer began working with the UND Center for Innovation 3 years ago, as participants of InnovateND. It was the InnovateND program and professional business consultations that motivated the women to base Ette in Grand Forks.
The Fargo Forum featured an article on Ette stating, “Tanya wants to help build more positive relationships with food and body image than she had as a child and young adult. ‘I am very comfortable in my skin, but it took me a long time to get there,’ she says.” Ette advocates for a healthy approach to food, by not refusing yourself the foods you love, but rather enjoying them in moderation and ensuring portion control is practiced. Ette encourages practicing these habits in front of your children to set the example. It is vital to understand the downfalls of being on a diet (temporary, restrictions, substitutions) and encourage a realistic and achievable lifestyle
for the whole family. When Spicer was asked about her decision to join forces with Friesen on the start-up she stated, “The Ette Program saved my life, which is why I am so deeply passionate about sharing it with others and for what we as a company promote. Educating people and giving them the tools they need to succeed in their journey to better health is the best reward I could ask for.” • www.ettelifestyle.com Ette - Lose the weight, not the lifestyle.
Support Students and Entrepreneurs The success of the UND Center for Innovation is made possible by previous investors in our quality programs resulting in national recognition for excellence and quality. Our programs favorably impact future and existing entrepreneurs who will innovate, grow our economy, solve problems and make this a better world. For more information on how to help “pay it forward” in our entrepreneur community please contact Bruce Gjovig or Tom Kenville.
Opportunities to Give UND Center for Innovation - Priority Needs •Entrepreneur Assistance/ Coaching •EB-5 Program/ Foreign Direct Investment •Angel Investor Education •International Entrepreneurship •SBIR outreach Entrepreneurship Department - Priority Needs •Student Entrepreneurs - Entrepreneur Internships •Sponsorship of Entrepreneur Speakers and Forums •Dakota Venture Group (Student Venture Fund) •Experiential Learning Experiences •Faculty Recruiting & Development
Bruce Gjovig Entrepreneur Coach & CEO UND Center for Inovation Foundation 701.777.3134 | bruce@innovators.net
Tommy Kenville VP Development UND Center for Innovation Foundation 218.779.9950 | tom@innovators.net
*Donors may qualify for up to a 40% income tax credit with an endowment. Contact Kim Woods at kimw@undfoundation.org or 701.777.4106 for more information. * Contributions to the UND Center for Innovation Foundation are tax deductible and included in your UND Foundation giving record.
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NONPROFIT ORG US POSTAGE PAID Ina Mae Rude Entrepreneur Center Norm Skalicky Tech Incubator 4200 James Ray Drive Grand Forks, ND 58203 Address Service Requested Phone: 701.777.3132 www.innovators.net E-mail: newsletter@innovators.net The UND Center for Innovation helps entrepreneur innovators, students and researchers launch new technologies, products and ventures, develop business and marketing plans, access UND talent and secure venture financing. We are a division of the UND College of Business & Public Administration.
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GRAND FORKS ND PERMIT #10