CFI December 2012 Newsletter

Center for

nnovation

ncubator News

Grand Forks, North Dakota

December 2012

UND C ENTER FOR I NNOVATION R ECEIVES F OURTH I NTERNATIONAL H ONOR our expertise, but also sends a welcoming message to international entrepreneurs looking to call North Dakota home.”

The UND Center for Innovation’s two technology incubators have received a two-year Soft Landings International Incubator designation from the National Business Incubation Association (NBIA) for the fourth time since 2006. The NBIA identifies business incubators that are especially capable of providing a “soft landing” to international entrepreneurs wishing to expand into new markets.

The Center for Innovation was one of the first five Soft Landings incubators in the world in 2006. Six years later there are just 25 incubators out of 5,000 worldwide (half of one percent) who hold this designation. Other Soft Landings incubators are located in such places as Hong Kong, England, Netherlands, Australia, Belgium, France, Taiwan, San Jose, Baltimore, Boston and Philadelphia.

The Center for Innovation has assisted international clients since 1992, the majority of whom come from Canada, Norway and China. Entrepreneur Coach and Center for Innovation Director Bruce Gjovig said, “This designation not only recognizes Ina Mae Rude Entrepreneur Center Skalicky Tech Incubator 4200 James Ray Drive Grand Forks, ND 58203

Inside this issue: CFI W ELCOMES : A LEX N AASTAD & M YSTE H UTTON

CFI R ECEIVES : Randy Morris, NBIA’s director of member ser- SBA FAST G RANT vices, said the UND Center for Innovation was & selected for its wide array of services for internaEDA F UNDING tional entrepreneurs and its demonstrated success with helping these firms enter the U.S. market. He added the Soft Landings designation recognizes E NTREPRENEURSHIP D EPARTMENT outstanding incubators that offer entrepreneur C EREMONY services such as domestic market research and export entry strategies. They also provide access to capital, orientation to the resources and nuances of GIANTS the American business culture and help their clients E NTREPRENEURSHIP cut through governmental red tape. Morris said the judges were impressed and very complimentary C HALLENGE O PEN of the Center for Innovation’s unique support for FOR E NROLLMENT international firms and recertification was an easy decision for the judges.

J AY S CHULLER NAMED FIRST L YNN International entrepreneurs are continuously exH OLADAY panding into global markets. These firms become E NTREPRENEUR - IN valuable members of the entrepreneur community R ESIDENCE who bring in business and add to increases in revenue, taxes, jobs, wealth, prestige and more. Soft Landings incubators help international entrepreI NNOVATE ND neurs get a good start in a new market, accelerate O PEN FOR their growth, and take some risk and hassle out of E NROLLMENT expansion.

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Phone: 701-777-3132 Email: newsletter@innovators.net Web: www.innovators.net

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UND C ENTER FOR I NNOVATION R ECEIVES F OURTH I NTERNATIONAL H ONOR C ONTINUED ...

Gjovig explained that one important benefit to international companies that locate in an incubator is the ability to grow into a presence on U.S. soil without having to go through many of the capital-intensive acquisitions involved in opening a new location. The incubator offers turn-key offices, servers, communications and lab space for early stage ventures as well as entrepreneur assistance and the opportunity to be part of an entrepreneur community. Some clients also find that the Center for Innovation’s affiliation with the University of North Dakota provides easy access to entrepreneur-minded students who are looking for internships, projects and employment.

Gjovig said he is honored and humbled that the Center for Innovation is among a small number of incubators to receive the designation worldwide. Gjovig explained that NBIA reports there are more than

5,000 business incubators worldwide and about 900 in the United States, up from just 12 in 1980. Gjovig said, “It is good to be on the leading edge in globalizing incubator operations as more tech entrepreneurs find they need to enter international markets to capitalize on their opportunities.”

A new Center for Innovation program further enhances the incubator’s ability to help international entrepreneurs. The Center for Innovation Foundation was designated as an EB-5 Regional Center by the U.S. Citizenship and Immigration Services. This program fosters the U.S. economy through job creation and capital investment by foreign investors. The Foundation’s EB-5 Regional Center matches domestic businesses with foreign investors.

help attract more international entrepreneurs to the incubator as many investors are entrepreneurs, “said Gjovig.

In addition to a successful history of providing outstanding service to international incubator clients, the Center for Innovation has also become a resource for other incubators with growing international programs. At the request of NBIA, the Center for Innovation developed and lead seminars and webinars for organization members worldwide, presenting tips for how to prepare applications and secure the soft landings designation.

“Attracting international investors will also

UND C ENTER FOR I NNOVATION W ELCOMES : A LEX N AASTAD & M YSTE H UT TON

from Grand Forks, moved to Orange County, Calif., to study international business and economics at Chapman University. After a few years in the workforce, Alex decided to pursue an advanced

Alex Naastad 701-777-3132 alex@innovators.net

Myste Hutton

Alex Naastad Alex Naastad, originally

degree and returned home to complete her MBA with an international emphasis at UND. While working toward her MBA, Alex was introduced to the Center for Innovation through the student run venture fund, Dakota Venture Group. Alex joined the center staff upon completion of her MBA in May, 2012, to work on the EB-5 foreign direct investment program.

Myste Hutton joined the Center for Innovation staff in the fall of 2012. Myste is responsible for the center’s administrative duties and manages the Center’s meeting rooms: the Idea Lab,the Dahl Melroe Boardroom and the Holaday Boardroom. “ I am the

new face and voice at the Center for Innovation’s front desk. I previously worked a fast-paced job in the school district, managing the nutritional intake of elementaryaged students, a.k.a. “Lunch Lady”. Children are very charming and unpredictable. In my short time at the center I have noticed that my past and current jobs share many of the same characteristics. I feel right at home and every day is a new adventure.”

Myste Hutton 701-777-3132 myste@innovators.net

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C ENTER FOR I NNOVATION R ECEIVES SBA FAST G RANT The Center for Innovation at the University of North Dakota was awarded a $100,000 grant from the US Small Business Administration (SBA). The Federal and State Technology Partnership (FAST) grant will provide outreach efforts to increase the number of North Dakota businesses participating in the Small Business Innovation Research (SBIR) Program and Small Business Technology Transfer (STTR) Program. The federal grant required $50,000 in local matching funds that is provided by the North Dakota Department of Commerce through the Technology-Based Entrepreneurship Grant (TBEG) program.

The Center for Innovation has administered North Dakota’s SBIR outreach and technical assistance programs since 1987.

To date, about 30 North Dakota companies have been awarded over $27 million in SBIR/STTR awards. The Center for Innovation’s SBIR assistance program offers technical assistance to small businesses as they prepare competitive SBIR/STTR Phase I & Phase II proposals.

With the support of this grant, the Center for Innovation will collaborate with key partners in the state and region to work with North Dakota technology companies through one-on-one counseling and proposal review, SBIR conferences led by nationally-recognized presenters and financial support to complete their first Phase I proposals.

C ENTER FOR I NNOVATION W ELCOMES N EW I NCUBATOR T ENANTS I NFO T ECH

To learn more about how the Center for Innovation can assist your small technology business, visit www.innovators.net or call SBIR/STTR Director Eric Veidel at 701-777-6623 or email eric@innovators.net.

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R ED R IVER V ALLEY R ESEARCH C ORRIDOR U NIVERSITY C ENTER R ECEIVES EDA F UNDING The UND Center for Innovation recently received approval for the third year of a three-year grant from the US Economic Development Administration (EDA) to continue its Red River Valley Research Corridor University Center initiative. The university center leverages the strengths of the state’s two research universities to foster technology-based economic development initiatives.

EDA’s University Center program has enabled the UND Center for Innovation and the NDSU Research and Technology Park to collaborate in the areas of innovation, tech-based economic development, private investment and job growth. The North Dakota Department of Commerce provides the state-level cash match that is needed to secure this federal grant. This federal/state/ university partnership is working to diversify and grow the state’s economy.

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E NTREPRENEURSHIP D EPARTMENT C EREMONY

Clement & Porter

Silvernagel & Shope

Drew Parsley currently farms 7,000 acres and enjoys vertically integrating that business through direct marketing. In the fall of 2011 he formed an investor group to reenergize a bankrupt business, The event also featured the inaugural induction of three Rediflame, a honorees into the Department of Entrepreneurship Hall of manufacturer of Fame: alumni Michael Shope and Drew Parsley, and former all-natural firewood professor Don Porter. Michael Shope is the CEO of Clean logs which needed to reestablish itself in the marketplace. Lil’ Republic, a company he founded to produce practical alternative Whipper Snippers, stemming from a class project, was a energy products which business Parsley successfully created, launched, operated and empower consumers to sold. conserve money and energy without Don Porter sacrificing an enjoyable was a standard of living. Clean professor of Republic’s first product Management is the Hill Topper and Entreelectric bike conversion preneurship kit which has been sold at UND from in 14 countries with 1982 to 1,000 units currently in 1996. He the field in less than two served as an years. In 2011, Shope executive in was named the SBA Young Entrepreneur of the Year for North many Dakota and Region VIII, which is comprised of six western companies, including Beverage Line Supply, Concrete, Inc., states.

Berkley and Co., Farmhand, Inc. and Rain Bird Sprinklers, Inc. He also served as a director for the Bank of North Dakota, Dakota Gasification Co., Steffes Corporation, A W Research Corporation, Wilsey and Ham, and several smaller firms. Don consulted for approximately 100 firms and institutions in North Dakota, Minnesota, California and Washington D.C. He was Department of Entrepreneurship credited with being one of the first advocates for special classes in small business and entrepreneurship at UND. College of Business and Public Administration

Silvernagel & Parsley

The University of North Dakota Department of Entrepreneurship hosted a special event on September 7, 2012, at the Center for Innovation. A pinning ceremony was held for current entrepreneurship students. The pin was presented as a reminder of the students’ connection to the people, places, ideas, and opportunities embodied in the entrepreneur community of which they are now a part. Close to forty students received pins which were custom designed by the department in coordination with local artist, UND alumnus, and entrepreneur David Badman of Badman Designs.

140 Gamble Hall 293 Centennial Drive, Stop 8355 Grand Forks, ND 58202-8355 Phone: 701-777-3116 Fax: 701-777-2019

The event was held in the James Ray Idea Lab and attracted many students, alumni, and supporters of the department.

After the event the attendees were treated to a catered barbeque in the atrium of the Skalicky Technology Incubator.

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R EGISTRATION IS NOW OPEN FOR THE GIANTS E NTREPRENEURSHIP C HALLENGE !

The Department of Entrepreneurship at the University of North Dakota is pleased to announce the Giants Entrepreneurship Challenge, its fourth annual business plan competition, will be held on the UND campus in Grand Forks, ND, on April 12-13, 2013.

The competition is open to all student teams at colleges and universities in the United States and Canadian provinces. Judges for the competition will be experienced entrepreneurs and business development specialists. To ensure that the Giants Entrepreneurship Challenge provides as much useful feedback as possible, judges are asked to thoroughly evaluate the quality of each business plan in selecting winners.

Monetary and in-kind prizes will be awarded for 1st Place, 2nd Place, 3rd Place, Best Elevator Pitch, Most Improved, and Most Innovative Idea. All monetary and in-kind prizes will be announced at the Awards Ceremony on Saturday afternoon, April 13, 2013 Please join us for what promises to be another fun and exciting event!

To Register, please visit our website: http://business.und.edu/entrepreneurship/entrepreneurshipchallenge.cfm where you will find registration forms and a list of dates and deadlines.

For more information, please contact us at challenge@business.und.edu or by phone at 701-777-4916. You may also follow us on Facebook https://www.facebook.com/#!/ GiantsEntrepreneurshipChallenge where we will post updates and announcements.

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J AY S CHULER NAMED FIRST L YNN H OLADAY E NTREPRENEUR - IN -R ESIDENCE

Jay Schuler The Lynn Holaday Entrepreneur in Residence program was established by an endowment from Bart Holaday of Grand Forks and Colorado Springs to honor and remember his late wife, Lynn Buckingham Villella Holaday.

Jay Schuler of Wahpeton has been named the first Holaday Entrepreneur-inResidence. Schuler is a serial entrepreneur with a strong track record of success, a passion for the next generation of entrepreneurs, and a commitment to students and entrepreneurial education. He has been involved with 15 start-up businesses.

Schuler’s first venture, a hybrid seed company, was started while he was in college in 1973. He teamed up with one of his college professors, Dr. Gerhardt Fick. Two of Schuler’s companies failed but he believes with better insight, better business practices and maybe an entrepreneur coach they would have made it.

Five of Schuler’s companies were successfully sold to publicly-traded companies. In the last year, Jay and his partners sold SEEDS 2000 for $55 million to a large international hybrid seed company, NuSeed, a wholly owned subsidiary of NuFarm, a publically-traded company in Australia.

Schuler’s sons, Robert and Jason, are

alumni of the UND Entrepreneurship Program and are leaders in GIANT Sunflower Seeds who have significantly grown the venture since their UND days. Jay is thankful for the inspiration and education the Department of Entrepreneurship and the Center for Innovation provided to his sons.

and coaching of new business owners the past five years. This UND gig is a new and a more focused challenge. I look forward to giving back to the next generation of entrepreneurs. I want to be of value to the center, the entrepreneur program and most importantly, the students. I believe in what UND is doing.”

Jay Schuler maintains ownership and board involvement in GIANT Sunflower seeds, Richland Organics, The Blue Corn Company and Ag America as well as farming. Schuler is an active marathon runner who ran his first marathon at the age of 50. He plans to run in his tenth marathon on his birthday in St. Petersburg Russia and in another in Antarctica in March 2013. This will complete his “bucket list” of running one marathon on each of the 7 continents.

Since 2001 Bart and Lynn Holaday have supported numerous hands-on learning programs at UND through the Center for Innovation Foundation including establishing the nation’s first fully student run venture fund, the Dakota Venture Group which enables students to learn venture capital investing through building a venture fund portfolio.

Schuler says, “I believe that for rural communities to survive and prosper, they need to create an environment for startups to form and thrive. Every year, because of regulations, it is more difficult to start a new business. Progressive communities have business incubators where entrepreneurs can get help, overcome the hurdles and gain assistance in growing the businesses.” He added, “Large companies don’t move to rural areas. Jobs are home grown. For the good of our rural communities we need to keep the pipeline of new businesses growing. In my opinion, the UND entrepreneurship program is cutting edge in new business, innovation and new job development. I look forward to continual engagement with the entrepreneur students at UND.” He concluded, “I have done some advising

The Entrepreneur in Residence endowment continues the Holadays’ philosophy of learning by doing and learning from those who are experienced and successful. Proceeds from the endowment fund enable an experienced entrepreneur to reside part-time with the UND Center for Innovation to work with entrepreneur-minded students and emerging entrepreneurs.

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B ART AND L YNN H OLADAY Lynn Buckingham Villella Holaday married Bart Holaday on New Year’s Eve in 1998. The event was the culmination of a romance begun in the mid-1960s when Lynn was in college and Bart was a junior at the U.S. Air Force Academy. During their marriage the couple maintained homes in Placitas, NM, in Colorado Springs and in Grand Forks, while they traveled the world: all seven continents and more than 90 countries.

From the founding of their family foundation, the Dakota Foundation, Lynn served as executive director and joined Bart in support of the foundation’s mission to promote entrepreneurship and job creation in North Dakota and New Mexico, and to sponsor scholarships at Bart’s alma mater, Exeter College of England’s Oxford University.

In 2010, Lynn and Bart made a $5 million contribution to the USAFA Endowment to construct a new indoor athletic training facility for the Air Force Academy. Lynn passed away at age 68 from ALS, on October 1, 2010, the day of the groundbreaking for the USAFA athletic facility.

Lynn and Bart Holaday

Bart Holaday served as Chair of the UND Center for Innovation Foundation from 2004 to 2012, and has served the Foundation since 2002. He remains on the Foundation board to support innovation, entrepreneurship, and private investment for new ventures. He is currently the president and owner of Dakota Renewable Energy Fund which invests in early stage ventures in North Dakota. He also serves on the boards of directors for Adams Street Partners, a private equity investment firm; Alerus Financial of Grand Forks; Montana Dakota Utilities; the United States Air Force Academy Endowment (former-chair); the Falcon Foundation (former vice president); and is chairman and CEO of the Dakota Foundation. He is a past member of the board of directors of the National Venture Capital Association and Walden University.

Bart Holaday received a bachelor’s degree in engineering sciences from the U.S. Air Force Academy in 1965. He was a Rhodes Scholar, earning both a bachelor’s degree and a master’s degree from Oxford University. He holds a law degree from George Washington Law School and is a chartered financial analyst. In 2005, he was awarded an honorary Doctor of Letters from the University of North Dakota.

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E NROLLMENT O PEN The North Dakota Department of Commerce and a statewide network of partners announced that enrollment for the 2013 Innovate ND program is open, highlighting a new format that includes no deadlines. The program will feature six boot camps for participants to attend at entrepreneurial centers across the state where they can learn how advance their new or existing business venture.

Innovate ND is a statewide initiative designed to help entrepreneurs turn innovative concepts into new, viable North Dakota business ventures. The program helps entrepreneurs in the development of their business ideas though access to coaches from entrepreneurial centers, events such as the boot camps, and online educational tools.

“North Dakota’s economy continues to grow and we have a very positive business climate for start-ups,” Commerce Commissioner Al Anderson said. “The Innovate ND program has been instrumental in the development of more than 125 businesses. We invite anyone with a business idea to take advantage of this

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7 TH I NNOVATE ND

initiative to help turn ideas into viable Nearly 725 participants and 475 business ideas have participated in new businesses in North Dakota.”

Innovate ND since 2006. Last year, 160 participants submitted 75 ideas.

Registration is available online at www.InnovateND.com with no enrollment deadline. This is a change The program is organized by the to the program from previous years. North Dakota Department of Innovate ND includes online Commerce, the UND Center for entrepreneurial education, business Innovation and the NDSU Research planning tools and coaching to and Technology Park. Forum participants from their enrollment Communications is the lead sponsor. date until September, 2013.

Partner programs include DSU Strom Entrepreneurial coaches will develop Center for Entrepreneurship and unique, individual plans to fit the goals Innovation, IDEA Center in Bismarck, of each of the business ventures enBismarck State College Office of rolled in the program.

Innovation, and Minot State University Severson Entrepreneurship Academy.

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E NTREPRENEUR F ORUMS C RAIG S ILVERNAGEL

In July, 2012, Silvernagel became the chair of the Entrepreneurship Department in the UND College of Business and Public Administration, where he has taught entrepreneurship courses

since 2003. Silvernagel came to UND from the University of MinnesotaCrookston (UMC), where he helped develop a new program emphasis in entrepreneurship while serving as a marketing faculty member. Prior to his time at UMC, Silvernagel owned a full-service advertising agency he co-founded in 1994, working with several regional and national firms including Arctic Cat, Christian Brothers Hockey, and Simplot Soilbuilders.

An alumnus of UND, Silvernagel received B.B.A. in 1992, an M.B.A. in 1995, and is currently pursuing a Ph.D. in educational leadership with a cognate in entrepreneurship.

Craig Silvernagel

The Center for Innovation hosted an Entrepreneur Forum featuring Craig Silvernagel, advertising agency founder and current chair of the University of North Dakota (UND) Department of Entrepreneurship. He presented an introduction to brand development and branding on Thursday, September 20, in the Idea Lab at the Ina Mae Rude Entrepreneur Center.

S TEVE F INEBERG

Steve Fineberg

Management Group of Deloitte & Touche, LLP. Fineberg works with high-profile Silicon Valley technology companies including eBay, Equinix, Intuit, and Yahoo. He presented “Entrepreneurs Accessing Silicon Valley Professionals: UND Alumni return home to share lessons learned” on Monday, October 8, 2012, in the Idea Lab at the Ina Mae Rude Entrepreneur Center. UND alumni Al Royce and Doug Sobolik joined Fineberg for the presentation.

The UND Center for Innovation hosted an Entrepreneur Forum featuring Steve Fineberg, a partner in the Strategic Relationship

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OTHERS AT WWW . INNOVATORS . NET OR ON F ACEBOOK

During Fineberg’s 17 years with Deloitte, he has served a wide range of clients including publicly held and privately owned technology companies. His past experience also

ANNOUNCEMENTS OF FUTURE E NTREPRENEUR WWW . INNOVATORS . NET K ATIE @ INNOVATORS . NET K ATIE AT 701.777.3132

INFORMATION

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includes assisting companies with annual audits, initial public offerings, mergers, and acquisitions. Fineberg holds a B.S. in Managerial Economics from the University of California, Davis and is a Certified Public Accountant.

F ORUMS

Center for Innovation

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M UELLER I NTERN S UCCESS S TORIES S MAR T ECH We Americans love our phones. The ability to communicate, surf the web, and photograph memorable moments from the palm of your hand is a luxury few people are willing to give up after it is first utilized. In the modern world a phone is more of an extension of one’s body than it is a leash. SmarTech knows about smartphones, devices, and gadgets. If you want to know what device is right for you, we will tell you the noncorporate truth. If your smartphone is broken, we can fix it. If you want to make sure that you are saving as much money as possible with any service provider, we will make that happen. We will also tell you what accessories you may need, and where to get them on the cheap. Combined, we have helped more than a thousand people with their device and accessory needs.

SmarTech started out on December 25th, 2011 as a hobby venture called NOMADiagnostics. The name originated from the idea of “nomadic computing,” or the ability to be constantly mobile and still have the same capabilities as someone at a desktop. This lofty goal is something we hope to accomplish someday with smartphones, as much of what we do takes place in the cloud. As the business started seeing clients, we noticed the majority of work was mobile repair. We service both Apple and Android phones. Android devices represent more than half of the smartphone market, but with so many different phones, many repair companies aren’t able to keep up with the different models. Internet speeds upgraded drastically when 4G LTE (Long Term Evolution) came to Grand Forks recently, making Android devices incredibly valuable. Now the Verizon iPhone 5 can receive 4G LTE in the local area, so it is an exciting time for mobile device addicts, both new and old. 4G LTE is around ten times faster than 3G, and is slightly faster than the average WiFi connection.

C ONTRIBUTED BY M AT T D UNLEVEY

We felt that it was a good idea to repair smart devices, as no one else in Grand Forks services or consults on Android phones; we just had to find the confidence to make a business out of it. Two of us, Matthew and Michael Dunlevy, are brothers and graduate students at UND. Our ancestors started doing business in Grand Forks and East Grand Forks in 1891. The feeling of upholding our business tradition was the final push over the edge to get our venture going. Travis Vinje, a website design student, was a very strong addition to our team. Travis has a unique knowledge of smartphones because he has worked for every major cellular carrier. Recently, Sue LaPlante joined us as well. Sue is a Master’s student in Computer Science and runs the UND Women’s Association for Computing Machinery. Having worked on computers and smartphones for at least ten years each before we went into business made the initial start up go much more smoothly than we anticipated.

Though we are a local business, we started advertising on a statewide basis. We use virtually every form of social media available, and the results are better than we ex-

pected. We are astonished at how much business is generated from our website, Facebook business page, and Google advertising. Word of mouth is still king in terms of attracting clients, but even at a local level we are finding that social media is a kind of “dark knight” approach to getting business. Build a free Facebook page and clients will come; not necessarily immediately, but it is only a matter of time. We have fliers all around campus and the city, and now we are looking into roadside and radio advertising.

The cornerstone of our business is smartphones, and though our specialty is Android devices, iPhones are what we see the most of. Tablets are an increasing portion of the repairs we perform as well. What we find particularly harmonious for us is that virtually every aspect of our business other than a physical repair can be executed from our phones. Using smartphones we communicate with our clients and each other verbally or through email/text, we order parts, schedule appointments, keep real-time inventory and history, tweak our media, and even accept payments.

We recently posted office hours. All four of us are students, and it can be difficult to keep the office open to walk-ins around class times. Its a tough job being a student and satisfying customers, but we find it rewarding and we hope to expand to other college towns as soon as possible, and are recruiting potential technicians all the time.

Check us out at www.thesmartechs.com. We offer the best smartphone service and parts warranties in the state of North Dakota. We revive your mobile lives.

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H APPY B EE B UBBLE T EA C ONTRIBUTED

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J UNYU Y ANG

in making a perfect bubble tea is using fresh brewed, loose leaf tea, which provides a bold and strong flavor.

Happy Bee Bubble Tea has been in business for four months and the business is going strong.

Although bubble tea was introduced to California in 1990s, to Grand Forks, bubble tea is still a new thing. When being asked what exactly bubble tea is, founder Junyu Yang explained that bubble tea is a tea based beverage with green or black tea usually mixed with milk and fruity flavor. Chewy and delicious tapioca balls called boba or pearls can be found at the bottom of the beverage. A large straw is used so the boba can be chewed while enjoying the drink.

Happy Bee Bubble Tea was started by two avid fans of bubble tea. Junyu Yang and his partner, Yu Tian, who were both from China, were quite used to the delicious bubble tea they grew up with. After moving to Grand Forks for school, a lot of things changed in their lives.

The one thing they missed the most was bubble tea. Especially Yu, who used to enjoy bubble tea with friends or family almost every day. In China, bubble tea is a very popular beverage and bubble tea shops can be found on many street corners. People go to bubble tea stores after school or work to enjoy conversations over a cup of their favorite bubble tea.

After moving to the United States, Yu and Junyu thought that many people in Grand Forks would enjoy bubble tea and the bubble tea culture. They wanted to provide not only the delicious beverage but also the experience of sharing a bubble tea with friends. After testing countless bubble tea supplies, the duo finally found the perfect combination of supplies and most importantly, large, fresh tea leaves from a Taiwanese store in California. A key element

Junyu explains, “Comparatively, tea bags are made with small shattered pieces of lower grade tea. It does not have much flavor to start with.

Further, the paper wrap of tea bags cannot preserve the flavor very well. Most tea flavor will escape by the time being consumed.”

After testing their formula with friends and in two student food events, Junyu and Yu received good feedback and became more and more confident about their idea—opening the first bubble tea shop in Grand Forks.

products. The refreshing taste and the unique texture of bobas became a hot topic during the competition, encouraging Junyu and Yu to proceed with the idea.

By the end June, after months of discussion, planning and hard work, Happy Bee Bubble Tea finally opened its first store in the Columbia Mall food court. The refreshing fruity flavor mixed with freshly brewed tea created a buzz instantly in the local community. Food columnist Marilyn Hagerty shared her enjoyable experience in her column in the Grand Forks

“It was very risky idea at the time. Grand Forks was a huge coffee town. One could easily name 15 coffee shops, local or corporate. It was actually a relative saturated market for beverages,” Junyu recalled, “On the other side, we were not sure if the local general public would like tea or not. The power of habit should never be underestimated.”

The team decided to take the idea to the Giant Seeds Business Competition in the spring of 2012, where both entrepreneurs realized that there was a huge difference between serving bubble tea to friends and opening a bubble tea store. They worked day and night for two months to come up with solutions for the missing pieces of their business plan. During this time, the team worked with mentors at the Center for Innovation and the UND Department of Entrepreneurship. They learned more than how to make a cup of bubble tea.

New knowledge about financial planning, entrepreneurial marketing, legal protection and compliance all helped the young company avoid many critical mistakes The judges of the business plan competition showed great interest in bubble tea concept and enjoyed sampling the

Herald. The Asian Student Association of UND made a group visit to the Happy Bee Bubble Tea store. The group was very excited that Grand Forks finally has “a place where we can get our bubble tea thirst fixed!”. The UND College of Business also published the story on its Business@UND magazine in the fall of 2012.

Four months have passed since the grand opening and Happy Bee Bubble Tea has weathered the challenges and gained valuable knowledge. “We are very grateful for the people who have helped us throughout the last four months.” Junyu said, “Without their support, we wouldn’t have made it this far. We are very happy that we stayed profitable in each of the last four months, but what really helped us to make it this far is to see that our beverages have brought happiness and a fun time to many local people. There were difficult times for sure. But each time Yu Tian and I felt exhausted, the bubble tea fans were always there to give us support, to warm us up.

The experience has been unforgettable!”

Happy Bee Bubble Tea has grown to eight employees and serves its unique beverages in the Food Court at Columbia Mall in Grand Forks.

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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 Center for Innovation - Priority Needs Entrepreneur Assistance EB-5 Program Angel Education International SBIR outreach Entrepreneurship Department - Priority Needs Experiential Leaning Experiences  Faculty & Recruiting Student Entrepreneurs - Entrepreneur Internships Sponsorship of Entrepreneur Speakers and Forums Dakota Venture Group (Student Venture Fund) Unrestricted - Priority Use

Bruce Gjovig, Entrepreneur Coach & CEO Center for Innovation Foundation Ina Mae Rude Entrepreneur Center 701.777.3134 | bruce@innovators.net

Tommy Kenville, VP Development Center for Innovation Foundation Ina Mae Rude Entrepreneur Center 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 Center for Innovation Foundation are tax deductible and included in your UND Foundation giving record.