UND Center for Innovation April 2017 Newsletter

Center for Innovation Foundation Receives Two International Incubator Honors

James Ray: Angel Investor, Aviator, Philanthropist 1923–2017

Barry Beloff Joins Foundation as VP of Donor Relations

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NEWS Innovator Bruce Gjovig Retires from UND Center for Innovation After 33 years at the helm of the UND Center for Innovation and its Foundation, CEO and Entrepreneur Coach Bruce Gjovig will retire April 30.

“I am in great health and have lots of energy so retirement presents an opportunity to do new things that are innovative, entrepreneurial and interesting,” Gjovig said. “I have been living the entrepreneur life working 60 to 80 hours per week for years, so this may also offer me the chance to do other interesting work as well as travel and socialize more.”

The Center for Innovation Foundation will host a retirement celebration and reception for Gjovig starting at 4 p.m. April 18 at the Ina Mae Rude Entrepreneur Center for students, startups, donors and the community.

Under Gjovig’s leadership, the Center — launched in

Gjovig’s Jargon

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YOU’RE INVITED Bruce’s Retirement Event April 18th • 4pm Center for Innovation

1984 in a storage closet in Harrington Hall — started as an idea and became a leading entrepreneurial and innovation center in the nation with two tech incubators. The Foundation has received 16 national and international awards for excellence and received two international awards at the International Business Innovation Conference held March 27-28 in Seattle, including the “Mixed-Use Incubator of the Year” award.

“Gjovig has built an internationally recognized entrepreneur continued on page 6 program that is top-tier worldwide,”

“Think deeply, speak gently, love much, laugh often, work hard, give freely, pray earnestly, be kind…. and call or email once in a while. “

Center for Innovation Foundation Receives Two International Incubator Honors The UND Center for Innovation received two major international awards at the 31st International Business Innovation Association (InBIA) annual conference held March 28 in Seattle.

First, the Foundation’s incubators were recognized as the 2017 InBIA Mixed-Use Business Incubator of the Year. That recognition and honor qualified the Center for the second award — the 2017 Dinah Adkins Technology Incubator of the Year Award. The Center received the award for best exemplifying overall excellence and serving as the leading model for others to follow when striving for excellence in serving startups and entrepreneurs.

“Our venture development team has created a culture for helping entrepreneurs be successful, for building great ventures, providing the necessary infrastructure and programs and providing a great entrepreneur ecosystem,” said Bruce Gjovig, CEO and entrepreneur coach of the Center for Innovation Foundation.

In total, the Center for Innovation Foundation has received 18 national and international awards for excellence. Three of the Center’s staff were present at the conference to receive the latest set of awards: Travis Fretheim, Greg Syrup and Kevin Lunke.

InBIA is the world’s leading organization for advancing business incubation and entrepreneurship. It serves more than 2,100 2

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members in 60 countries. Each year, InBIA honors excellence in business incubation programs for those who exemplify the best of the industry.

Gjovig said he is honored that the Center for Innovation Foundation is among the handful of incubators to receive this international award for excellence.

“It is humbling to be recognized internationally for excellence in what we do, helping startups and entrepreneurs succeed with venture development,” he added. “The ‘mixed-use’ award singles out the Center for working with entrepreneurs in several industries, including drones, sensors, data, biotech, services, environment and others.”

InBIA especially took notice of the Center playing host to one of the nation’s largest UAS Entrepreneur clusters with 26 entrepreneurs as part of its ecosystem — more than any other incubator, entrepreneur center or tech accelerator. The UAS entrepreneur cluster includes entrepreneurs from Norway, Finland, Czech Republic and Israel. Gjovig and Tommy Kenville of the Foundation have been involved for 10 years in working with Unmanned Aerial Systems (UAS) or drones entrepreneurs to form the new industry cluster.

“The key word is ‘systems’ as it takes many tech entrepreneurs and experts to make the systems work well — the flying platform, all sorts of sensors, communication linkages, cyber security and the data collection, storage, analytics, and the actionable, useful data,” Kenville said. “Our Foundation has been able to attract and support a diverse and robust UAS entrepreneur cluster to work together to capture the opportunities to utilize drones for inspection, especially in energy and agriculture.”

Gjovig has also been working since 2011 to launch the nation's first UAS business park at Grand Forks Air Force Base called Grand Sky. The drone park officially opened in February 2016 with two key anchor tenants, Northrop Grumman and General Atomics. In late 2016, EdgeData signed a letter of intent with Grand Sky to build a 16,000-square-foot data center, a project Gjovig worked on for three years.

“Few entrepreneur centers have an opportunity to launch a new industry cluster, and we are building the UAS entrepreneur cluster from the most rural of states,” Gjovig said.

The Foundation was recently awarded a $1.2 million grant from North Dakota Commerce Department’s Centers of Research Excellence program to secure radar capability at Grand Sky with the Northern Plains UAS Test Site to enable the nation’s first beyond-visual-line-of-sight (BVLOS) flights for commercial UAS operations, especially for the energy and agricultural industries.

This visual radar capability makes North Dakota the only place in the nation to do BVLOS commercially without chase planes and visual observers which significantly lowers costs and thus is attracting industry and UAS entrepreneurs.

“Our venture development team has created a culture for helping entrepreneurs be successful, for building great ventures, providing the necessary infrastructure and programs, and providing a great entrepreneur ecosystem,” Gjovig said. “This award reflects how good our team is to be world-class in venture development.”

The Foundation also was honored in February by InBIA with the designation as a Soft Landings International Incubators — the fifth consecutive designation since 2006 — that signals to international entrepreneurs the Center excels in providing the facilities, services and programs needed to help them successfully break into new markets.

“To receive three international awards for excellence in 2017 as I get ready to retire on April 30 speaks to the international gem and asset that has been built for the benefit of startups and students,” Gjovig said. “It is very good to go out on a big high and at the top of your professional practice.”

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James C. Ray Angel Investor, Aviator, Philanthropist

1923–2017

James C. Ray, a man defined by his generosity and love of learning, passed away at 94 years old on April 1 in Naples, Fla., after a short illness. Since 2000, he donated $25 million to the UND Center for Innovation Foundation, the UND Aerospace Foundation and the UND Foundation.

While one of UND’s most generous benefactors, Ray was not an alumnus of the school. He first heard of the UND from his neighbor in Switzerland, Chester Fritz, in the late 1950s. At that time, Fritz was making his gift of the Chester Fritz Library for UND’s 75th anniversary celebration in 1958.

“We lost one of the biggest benefactors in UND’s history,” Center for Innovation Foundation CEO Bruce Gjovig said, “and he was a champion for students, entrepreneurs and aerospace. Mr. Ray had three great passions: one was investing in innovative ventures, another was aviation, and the third was investing in hard-working young people.”

It was in the late 1990s when Ray’s investments in Cirrus Aircraft brought him to Grand Forks during the construction of the company’s plant here, Gjovig said. He became close friends with Gjovig, Dennis Elbert and John D. Odegard after those early visits and became a major benefactor to UND, donating nearly $25 million toward the growth of entrepreneurship and aerospace for the benefit of students, enabling these programs to become nationally and internationally recognized for excellence.

Ray was one of the most accomplished angel investors in the nation, with investment in more than 300 ventures.

He had a significant record of investing in innovation and technology entrepreneurs, matched only by large institutional funds, not individuals. He also saw great success in his business interests such as cattle ranching, energy exploration, real estate and investing in the aerospace industry.

Ray served as a trustee and treasurer of the UND Center for Innovation Foundation from 2001 to 2014, and continued as trustee emeritus until his passing. Ray became the largest donor to the UND Center for Innovation and the UND Entrepreneurship Program, providing endowments in annual support for the student interns and staff at the Center and support for the chairman of entrepreneurship. He was a venture philanthropist making strategic investments to maximize impact.

James Chandler Ray was born on Jan 1, 1923, in San Francisco where his father was geology professor at Stanford and his mother a secretary for the school president. He attended the University of Nevada-Reno, majoring in engineering before becoming a steelworker. While working on a building for the U.S. Navy in Hawaii, he was about 400 yards from the USS Arizona during the Japanese attack at Pearl Harbor on Dec 7, 1941. He soon enlisted in the Army Air Corps and served as a B-17 command pilot, flying bombing missions over Europe. Among his 30 missions flown were raids on the Schweinfurt ball-bearing plants and a D-Day attack on a German army headquarters in Caen, France.

Ray was particularly interested in the outstanding students on the UND campus. The Center staff made sure he had great access to entrepreneur and aerospace students when he was on campus, and he engaged in their career stories and goals. He commented many times on the superior quality of our students who have good intellect, strong work ethic and who expect to earn their way into the world.

Following the war, Ray returned home, where he served in the Air National Guard until separating from service in 1949. After the war, he pursued capital investments, ranched in Montana and practiced philanthropy through his foundation. In addition to his gifts to UND, he supported aviation education programs around the country and causes ranging from therapy dogs to Alzheimer’s support.

He also was the majority owner of the Hilton Garden Inn on

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James Ray Drive. He is the namesake of the James Ray Idea Lab at the Center for Innovation and a UND hangar at the Grand Forks airport.

His zest for life was legendary. A lifelong learner, he was a voracious reader of nonfiction books about technology and great figures and leaders through history. Ray read every day and read thousands of books to find out what made great people great and smart people experts, often commenting on their leadership and entrepreneurial abilities. He recommended books to his friends, and the books were very much a part of his dinner conversations.

He was very curious and loved to share ideas. Ray traveled the world extensively by sea and air, owning many planes and ships over 70 years of travel. He lived life to its fullest.

His CEO and “wingman”, Charles Ahearn, described Ray as one of the most strong-willed people he had ever met, but also eternally optimistic, intensely honorable and suffered no fools. Jim often described himself as a curmudgeon but actually was a gentle soul and very humble. Much of his philanthropy was done anonymously, as it was never about him. The success of the people and institutions he helped was the greatest thanks he could ever receive. While he will be missed, his spirit will endure in the many people and places he touched. As Ahearn said in his message reporting his passing, “Godspeed Major Ray. Cleared for takeoff runway 27, fly runway heading, climb on course, altitude your discretion.”

Ray was married to Joan Leidy Paine from Newport, R.I. He was married to the love of his life for 36 years, raising two children, son Jim and daughter Joanie, and Joan’s two children from her prior marriage. Paine died in 1986 followed by Ray’s son Jim in 2005, and daughter Joanie in 2009. Ray is survived by many friends around the world, by the hundreds of people his philanthropy has benefitted, and by his loyal dog, a Papillon named Mia.

STEMFlash highlights tech businesses through marketing, public relations STEMFlash LLC, a Grand Forks-based public relations company, is shining the spotlight on research and startup companies in biotech and high-tech fields.

Launched by Deb and Juan Pedraza, STEMFlash offers public relations and marketing services that include multimedia publications, video production and calculating marketing metrics. The company serves clients working in biotech, unmanned aircraft systems and other technology areas.

Both Deb and Juan Pedraza bring extensive experience to the business with backgrounds in journalism, public relations, health care and real estate.

Juan Pedraza draws from experience in print and broadcast journalism, technical editing and both public sector and private sector public relations as well as a multicultural background with fluency in six languages.

Debra Pedraza is a former cardiovascular tech with a master’s degree in public administration from UND. She brings broad experience in project, real estate and organizational event management; in nonprofit program implementation and in health care.

Prior to founding STEMFlash, the Pedrazas built several successful startups, including a North Dakota-based, value-added venture that researched and marketed quick-cook, low-hydration food products focused on global food aid.

STEMFlash is located in the UND Center for Innovation.

For more information about STEMFlash contact: debra@stemflash.com juan@stemflash.com C: 701-420-1928 – Juan APRIL 2017

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Bruce Gjovig announces retirement (continued from pg. 1) said Dale Morrison, chairman of the Center for Innovation Foundation. “That is a great signature program for UND to build upon, and now that UND launched the second school of entrepreneurship in the nation, we see success coming from both of these innovative, signature programs.”

Gjovig says successful entrepreneurs have been extraordinarily generous to the Foundation to help the next generation of entrepreneurs. Nearly $35 million of support has been raised for two incubator buildings, endowments and student or entrepreneur programs.

“With entrepreneur support and student talent, a toptier entrepreneur center was built for startups led by entrepreneur experience and expertise,” he said.

Gjovig expressed his appreciation for the support of his Foundation board and especially to former UND President Tom Clifford, who supported and mentored him in the early years of pioneering the Center for Innovation. He also expressed his appreciation to the last four governors, the Legislature and North Dakota’s congressional delegation who supported new policies and appropriations to improve the entrepreneur business climate.

“Our focus is on students and startups, helping them through the journey of innovation, entrepreneurship and capital formation,” Gjovig said. “More than 1,000 students and entrepreneurs have started their ventures through the Center for Innovation, and that is our true impact and measure of success — the professional practice of entrepreneurship.”

Provost and Vice President for Academic Affairs Thomas DiLorenzo will appoint an interim director of the Center for Innovation who will also serve as executive director of the UND School of Entrepreneurship. That person will

Under Gjovig’s leadership, the Center for Innovation realized unprecedented growth and progress in a number of areas, including the following: 6

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report to the Provost Office while a national search will be conducted to find the right entrepreneur-minded talent to take the Center and School to the next level.

Gjovig will remain in Grand Forks and will continue to play an active role in the community. He currently serves as chairman of the Bioscience Association of North Dakota (BioND), chairman of Grand Forks Herald Business News Advisory Board for the Greater Grand Forks Chamber of Commerce, advisor to the Grand Sky Development Co., vice chairman of the Sunshine Memorial Foundation, chairman of the Delta Tau Delta Educational Foundation, a board member of the Public Arts Commission and a member of the Base Realignment Impact Committee (BRIC).

He also is an appointee of the U.S. Air Force Chief of Staff’s Civic Leader Group to provide civilian input to the Secretary of the Air Force, the Chief of Staff, and the major commands of the U.S. Air Force.

A native of Crosby, N.D., Gjovig has been affiliated with UND in some way for 48 years since starting as a freshman in 1969. Sir Gjovig was recognized with the Knight of the First Order, Royal Order of Merit by King Harald V of Norway for his years of service to education and entrepreneurship in Norway and educational exchanges between the U.S. and Norway. In 2014 he received the Ronald Reagan Award for 30 years of supporting entrepreneurship, capitalism and free enterprise.

“Innovation and entrepreneurship has made—and will continue to make—an indelible contribution to the state, the nation, and the world,” Gjovig said. “It has been my great privilege to work alongside students, faculty, entrepreneurs, trustees, benefactors and alumni who make innovation and venture development happen.”

Entrepreneur Center Pioneer In 1984 the Center for Innovation was among the first four entrepreneur centers in the nation along with MIT, Carnegie Mellon and Wichita State University. Gjovig is the only remaining leader of these early pioneers of entrepreneur centers that were created to foster more successful startups. Interestingly two of the other entrepreneur center founders also have North Dakota roots: Fran Jabara and Dwight Baumann.

Incubator Buildings When the Norm Skalicky Tech Incubator (first called Rural Tech Incubator) was opened in 1996, it was the first university business incubator on the Great Plains. The

second facility, the Ina Mae Rude Entrepreneur Center was opened in 2005, doubling the space available for startups and student entrepreneurs. In 2003, the entrepreneur incubator received the first Center of Research Excellence grant made under then Governor John Hoeven. The incubators are critical infrastructure and entrepreneur ecosystems for students, startups and angel investors.

Gjovig’s personal collection of more than 200 pieces of art in the incubators provide “a creative place for creative entrepreneurs.”

Student Venture Capital Bart and Lynn Holaday of Colorado Springs made a $300,000 donation to the Center for Innovation Foundation in 2006 to launch the nation’s first fully student-run venture capital fund. Over 140 students have been members of Dakota Venture Group and have invested in 29 ventures and realized three positive exits. They also have a positive return on investment (ROI) overall, and have out-performed all angel funds in the state. There are now over 30 student venture capital groups nationwide, but DVG remains the only one where students fully run the fund from sourcing deals, screening, due diligence, term negotiations, syndication, portfolio management, and exits – an exceptional and unusual experience for students in their early twenties.

Mueller Entrepreneur Internships In 1997 former foundation board member Kurt Mueller of Kansas City began providing modest grants to entrepreneur-minded UND students to encourage and enable them to start a venture. With his continued support more than 130 students have started a venture to learn entrepreneurship and practice the art of innovation and entrepreneurship. The resulting high number of student startups places UND in the top 5% of universities nationwide with students fully engaged in venture development. The Foundation has also secured grants for students to work as interns with startups, including recent grants from Alerus Financial.

Angel Capital Funds North Dakota ranks 47th in private equity for fast growth entrepreneur ventures. The Center led the effort to form 11 angel funds across North Dakota to engage more than 160 angel investors to invest in numerous entrepreneur ventures. Gjovig was a champion for North Dakota to become the 2nd state in the nation to offer a state tax credit to incentivize angels to invest in entrepreneurial ventures. 29 states now have angel tax credit incentives.

With the formation of those 11 angel funds, another 11 funds were formed with a total of 553 angels investing $41.3 M in 156 companies significantly improving access to entrepreneur capital.

SBIR/STTR Grants The Center has been North Dakota’s provider of SBIR/

STTR services since 1985 just one year after the federal program was launched in 1984. The Center offers outreach, technical assistance, education, mentoring contacts and funding for technology entrepreneurs seeking federal grants for research and development. Over 40 North Dakota companies have secured more than 148 federal awards totaling $34.5 M in SBIR/STTR grants, and the Center for Innovation has been recognized by the U.S. Small Business Administration (SBA) twice with the Tibbets award for excellence in SBIR/STTR programs. The Center for Innovation has also hosted the national SBIR Road Show three times, most recently in 2016, proving the opportunity for North Dakota innovators to meet one-on-one with federal granting agency program managers.

InnovateND In 2005 Bruce Gjovig and Dr. Jeff Stamp were the champions to establish a new entrepreneur program for the North Dakota Department of Commerce called InnovateND. In 10 years over 670 entrepreneurs across the state (i.e. employers) have been given a boost with hands on entrepreneur coaching and education. The program is known nationwide for entrepreneur impact as most other states have business plan competitions which are limited in scope and impact, and do not help the entrepreneur grow as a CEO leader who is a capable decision maker, strategic thinker and leader of people to build a sustainable venture.

Beginning Entrepreneur Loan Program Gjovig worked with Senator Ray Holmberg (R-Grand Forks) for the legislature to authorize the Bank of North Dakota to offer the nation’s first beginning entrepreneur loans in 1999. The loans did not require collateral like most loans and did not require immediate cash flow, but instead required a good business plan/model and good credit. It did require the startups to work with a local lender and the Bank of North Dakota provided a 85% loan guarantee to offset the risks of the local bank. Nearly 500 loans worth $28 million have been made by the Bank of North Dakota and it has led to several other entrepreneur lending programs to be expanded with the state bank. Since the program’s inception, only 2.17% of loans guaranteed by the BND have defaulted.

International Entrepreneurship The Foundation’s two technology incubators were recently designated as “Soft Landings International Incubators” by the International Business Innovation Association (InBIA) the fifth consecutive designation since 2006. The InBIA Soft Landings global network has just 31 members in 8 countries around the world. The Center was among the first six to be certified. The two-year designation is given to a select group of U.S. and international entrepreneur centers which work effectively with international entrepreneur entering domestic markets. The professional association serves more than 2,100 members in over 60 countries. This APRIL 2017

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(continued from pg. 7) designation is earned by successfully working with numerous international entrepreneurs. The Center has provided venture development services from countries such as Norway, Finland, Czech Republic, Canada, Israel, and China.

UAS Entrepreneur Cluster For ten years Gjovig has been involved with the development of the Unmanned Aerial Systems (UAS) industry in North Dakota including supporting and securing and managing grants for the development of Grand Sky, the nation’s first drone business park. In the last two years, the Center’s incubators have become host to 26 UAS entrepreneur ventures, more than any other incubator, accelerator or entrepreneur center in the nation. There are another 18 UAS entrepreneurs who have shown interest in being part of this UAS entrepreneur cluster to pursue commercial opportunities to use UAS technologies and capabilities to inspect energy infrastructure, agricultural fields and other uses. In February the Center for Innovation Foundation secured a $1.2M grant to install a first-of-its-kind solution to enable beyond-visual-line-of-sight (BVLOS) operations for unmanned aircraft systems in North Dakota out of Grand Sky. School of Entrepreneurship In 2014 UND became the second university in the nation to host a School of Entrepreneurship to bring innovation and entrepreneurship across the campus in all professional and scientific disciplines.

The push came from the Foundation board, and Provost Thomas DiLorenzo took ownership of the process to secure approval from the State Board of Higher Education in the spring of 2014. There are supporting efforts to establish a Bachelor’s Degree in Innovation and Entrepreneurship which is expected to be the most popular second major or degree on campus along with engineering, aerospace, health sciences, and other majors.

This will allow UND to be among the very few universities nationwide to allow students to double major and double degree with entrepreneurship attracting very creative students.

For More Information Contact: Bruce Gjovig CEO,UND Center for Innovation Foundation Director & Entrepreneur Coach, UND Center for Innovation Bruce@innovators.net C: 701-739-3132

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Nicole Evans Named Regional Director for N.D. Small Business Development Centers The North Dakota Small Business Development Centers (SBDC) office located at the UND Center for Innovation has announced Nicole Evans as its new regional director.

The Grand Forks SBDC office provides assistance to entrepreneurs with getting their business started, providing assistance with managing their business process and ultimately helping the growth of the business. SBDC collaborates with its resource partners to provide all these areas of service for free to entrepreneurs.

Evans said her goals in her new role are to provide consistent and collaborative structure with all network staff, provide great service to SBDC clients and maintain great relationships with all vendors and economic developers.

Evans became regional director in January 2017 and brings extensive business management and customer service experience to the position. Prior to joining SBDC, she worked as assistant director of technology for the UND College of Business and Public Administration for six years.

Startup experience also is part of Evans’ background that she gained as the owner of two small businesses for a combined 11 years in Hillsboro, N.D. She holds a bachelor’s degree in business administration.

For more information about SBDC contact: Nicole@ndsbdc.org www.ndsbdc.org P: 701-738-4851

Hambleton Named Grand Sky Program Manager for Northrop Grumman Dave Hambleton was recently named Grand Sky program manager for the Autonomous Systems Division of Northrop Grumman Aerospace Systems, a premier provider of manned and unmanned aircraft, space systems and advanced technologies critical to national security.

of military experience as an intelligence officer. During his military career, he served in positions supporting or conducting combat air force, ISR and special operations.

He commanded an intelligence squadron and held various staff positions.

In this role, which he assumed in February 2017, Hambleton is responsible for executing the work Northrop Grumman conducts at its facility within the Grand Sky business and aviation park on Grand Forks Air Force Base.

This includes guiding company investments in the facility and leading the technical, programmatic and logistics team working at Grand Sky.

Hambleton was an instructor at the USAF Weapons School, and has combat experience in Air Operations Center, Joint Task Force, Fighter Wing, and Air Force Distributed Common Ground System organizations in Operations Desert Storm, Southern Watch, Enduring Freedom and Iraqi Freedom.

Previously, Hambleton was a concept development manager supporting the autonomous systems portfolio of products. This included advancing concepts of operation for Intelligence, Surveillance, and Reconnaissance (ISR) processes and end-to-end architectures, as well as pursuing technical capability enhancements for products such as the U.S. Air Force RQ-4 Global Hawk. Prior to that, he was a business development representative for the Global Hawk program.

Hambleton earned a bachelor’s degree in mechanical engineering from Rensselaer Polytechnic Institute in 1989 and a Master of Aeronautical Science degree from Embry Riddle Aeronautical University in 2003. He graduated from the USAF Weapons School’s Intelligence Weapons Instructor Course in 1994. He lives in Grand Forks, N.D.

Before joining Northrop Grumman in 2010, Hambleton retired from the U.S. Air Force with more than 21 years

Veteran Entrepreneurship Program Accepting Applications for 2017 Business Bootcamp The Veterans Entrepreneurship Program (VEP) is accepting applications for a business development program set for October in Grand Forks, N.D. The Veterans Entrepreneurship Program seeks to assist veterans in translating skills learned during their service to the business world.

The program helps veterans launch successful businesses through online education followed by an eight-day bootcamp and eight months of ongoing mentoring from business experts.

The Center for Innovation Foundation and UND School of Entrepreneurship are offering the eight-day residential

bootcamp again this year and will accept applications until July 28, 2017.

Selected participants will attend the bootcamp held Oct. 21 to 28 at the UND Center for Innovation.

The VEP is free of charge to veterans who are selected for the program. The program covers travel, lodging and meals for the week of the boot camp.

Applications are available online at: https://ndvep.com/apply.html For more information on VEP: info@innovators.net

Veterans Entrepreneurship Program serves veterans who meet the following three requirements: • Have separated from active duty service (or are in the process of separating) with an honorable discharge • Are identified as disabled by the Veteran’s Administration or DOD based on a serviceconnected disability (or) are service distinguished based on exemplary military conduct • Demonstrate an intense motivation to start or grow a business APRIL 2017

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InnovateND Spotlight: dogIDs Provides High-quality Customized Pet Supplies

Barry Beloff Joins Foundation as Vice President of Donor Relations

Clint and Lori Howitz believe pets deserve the best so improving the lives of pets became the mission of their small business.

At the end of 2016, Barry Beloff joined the UND Center for Innovation Foundation team as the vice president of donor relations to work with donors, benefactors and foundations who wish to support entrepreneur startups and entrepreneur-minded students at UND.

In 2005, the pair founded dogIDs.com, a Fargo, N.D.-based ecommerce site that manufactures and supplies personalized and unique pet ID tags, collars, leashes and more. The company’s office dogs and family dogs even serve as product testers for all dogIDs products.

Clint Howitz says he owes part of the business’ success to InnovateND, a state-sponsored program that provides access to beneficial venture tools, online entrepreneur education and extensive resources to qualifying entrepreneurs.

Since participating in the program in 2009 and 2010, dogIDs has experienced significant growth.

The company will employ more than 20 people this year, and its website is the No.1 online store for customized pet products.

“InnovateND played a key role in helping me with initial startup concerns and gave me the extra push I needed to get it off the ground,” Howitz said. “I can confidently say that dogIDs would not be where it is today without InnovateND.” For more information about dogIDs: www.dogids.com For more information about InnovateND: www.innovatend.com 10

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“We are excited to have Barry on our Foundation team as he brings 20 years of experience working with high-net-worth individuals. Previously, he was as an entrepreneur in Grand Forks after he graduated from UND,” Bruce Gjovig, CEO of the UND Center for Innovation Foundation, said. “He is a great fit to enhance and grow our entrepreneur center.”

Beloff was the president and CEO of the Beloff Hotel Corporation and Beloff Enterprises in Grand Forks. He has bachelor’s degrees in business and psychology from UND and is a graduate of Central High School in Grand Forks. Beloff served on many state advisory boards being appointed by several North Dakota governors.

“Our Foundation has had to be selfsupporting for three decades, so being able to raise funds to support startup services and support entrepreneur students is a priority,” Gjovig said. ”As good at fundraising as we have been, the financial pressure is still intense so we need the additional support and help of entrepreneur-minded people like Barry. It is good to welcome him home from Minneapolis. Barry said that although he’s lived in Minneapolis for the past 20 years, Grand Forks has always been his home.”

“A lot of great work has been done over the years at Center for Innovation

to build a base of supporters who believe in the future of young talent on their journey through innovation, entrepreneurship and access to entrepreneur capital,” Beloff added.

“I plan to build on that good work done by Bruce and Tommy Kenville to further strengthen the Foundation to continue to support our entrepreneur students and startups which greatly enhances UND.” Beloff has worked in investment business advising for Northland Securities, Knelman Asset Group and Lloyds TSB as well as Lazard. Since October 2014, Beloff has served as vice president of product and new business development for Northland Securities. In this capacity, Beloff also did consulting work with major corporations that saved millions of dollars in labor costs and increased productivity. In his career he has dealt with labor unions, public funds, foundations, endowments, high net worth individuals and many major consulting firms in the U.S. For more information: BBeloff@comcast.net

Jay Schuler Appointed Commerce Commissioner by Gov. Doug Burgum Gov. Doug Burgum appointed GIANT Sunflower Seeds co-founder Jay Schuler to lead the North Dakota Department of Commerce, citing Schuler’s successful track record as a job creator and entrepreneur for more than 40 years.

“Jay Schuler’s impressive background of incubating and launching 15 startup companies spanning five continents and deep understanding of valueadded agriculture will be highly valuable as we seek to diversify North Dakota’s economy and reinvent state government,” Burgum said.

Schuler assumed his new role as commerce commissioner on Feb. 27.

As commissioner, one of his top priorities will be to advance the governor’s Main Street Initiative, focusing on a skilled workforce, smart, efficient infrastructure and healthy, vibrant communities. Schuler will oversee the department’s four divisions — Economic Development, Workforce Development, Community Services and Tourism — and continue its work to improve the quality of life for North Dakota citizens by leading efforts to attract, retain and expand wealth.

“As someone who has spent his entire career launching and growing businesses, I’m excited to join a cabinet led by a successful entrepreneur in Gov. Burgum,” Schuler said. “We share the view that in order for our urban and rural communities to prosper, we must create a regulatory environment and support network that encourages startups to

form and thrive, while ensuring our existing businesses have the tools and workforce they need to flourish and innovate.”

A native of Wahpeton, N.D., and neighboring Breckenridge, Minn., Schuler started his first company in college. He is a founding investor in both GIANT Sunflower Seeds, the largest sunflower confection retailer in the Upper Midwest, and Richland IFC, a dominant supplier of organic blue corn. Schuler also is an original investor in Ag America Network, which is carried by more than 30 radio stations in North Dakota and South Dakota.

Recognized as a teacher and mentor to new businesses, Schuler was selected to be the first Lynn Holaday Entrepreneur-in-Residence at the UND Center for Innovation in November 2012. His sons Robert and Jason are alumni of the UND Entrepreneur Program and are leaders in GIANT Sunflower Seeds, significantly growing the venture since their UND Days.

Schuler has a bachelor’s degree in agriculture economics from North Dakota State University, and he received the John Lee Coulter Award from the NDSU Agribusiness Club in 2003.

For more information: jpschuler@nd.gov

Bank of North Dakota Hires New Business Banker at UND Center for Innovation Office The Bank of North Dakota recently hired a new business banker for its office in Grand Forks at the UND Center for Innovation.

Rod Heit joined BND in January as a business banker in the financial institutions market. Heit comes to BND with a background in financial services and has worked on projects in the unmanned aircraft systems sector.

“The opportunity to work at BND with an office located at the Center for Innovation could not be more exciting,” Heit said. “I’m looking forward to being a part of the entrepreneurial community and adding to the Center in any way that I can.”

Heit earned his bachelor’s degree in finance and MBA from St. Cloud State University. He will begin training in Bismarck before moving to his permanent location in Grand Forks. Heit also is an officer of the Minnesota Air National Guard.

Heit anticipates he can begin taking appointments in his Center office full time starting July 1. He can be reached via his email: rheit@nd.gov APRIL 2017

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UND Center for Innovation Receives International Designation UND Center for Innovation Foundation’s two technology incubators were designated as “Soft Landings International Incubators” by the International Business Innovation Association (InBIA) — the fifth consecutive designation since 2006.

InBIA’s “Soft Landings” designation lets international entrepreneurs know which venture development organizations excel in providing the facilities, services and programs needed to help them break into new markets.

The InBIA Soft Landings global network has just 31 members in eight countries around the world. The designation is given to a select group of U.S. and international entrepreneur centers and is effective for two years. The professional association serves more than 2,100 members in more than 60 countries.

“This designation is earned by successfully working with numerous international entrepreneurs,” said Bruce Gjovig, CEO and entrepreneur coach at the UND Center for Innovation Foundation. “Performance is required for this prestigious designation.”

Gjovig said he is honored and humbled that the Center for Innovation Foundation is among such a small number of incubators to receive the designation worldwide. InBIA reports there are more than 5,000 business incubators and accelerators worldwide and about 1,000 in the United States, up from just 12 in 1980.

“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,” Gjovig said.

The Center for Innovation was one of first five incubators in the world to secure the Soft Landings designation in 2006, and 11 years later there are just 31 incubators out of 5,000 worldwide — about 0.5 percent — with that designation and certification.

The other Soft Landings incubators are located in places such as Hong Kong, Netherlands, Australia, France, Taiwan, Uruguay, Atlanta, San Jose, Baltimore, Boston, Orlando, and Philadelphia.

The Center for Innovation has been assisting international clients since 1992, with the majority coming from Canada, 12

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Norway, Finland and China.

Its staff also has worked with entrepreneurs from Israel and the Czech Republic.

“This designation not only recognizes our expertise but also sends a welcoming message to international entrepreneurs looking to call North Dakota home for their U.S. headquarters,” Gjovig said.

The UND Center for Innovation Foundation was selected for the program because of its wide array of entrepreneurial services for international entrepreneurs and its demonstrated success at helping these firms enter the U.S. market.

These designated incubators are capable of helping international firms enter into new domestic markets with entrepreneur coaching services, help cut through governmental red tape, and provide demonstrated success in helping provide access to capital, domestic market research, export entry strategies and an orientation to the resources and nuances of the American business culture.

InBIA said the judges were very impressed and complimentary with the Center for Innovation’s unique support for international firms, and recertification was an easy decision for the judges.

International entrepreneurs are continuously expanding into global markets. These firms become a valuable part of the entrepreneur community that bring in business, adding to increases in revenue, taxes, jobs, wealth prestige and more. Soft Landings incubators help international entrepreneurs get a good start in a new market, accelerate their growth, and take some risk and hassle out of expansion.

Gjovig explains that one important benefit to international companies that locate in an incubator is the ability to grow into a business presence without having to go through many of the capital-intensive acquisitions involved in opening a new location. The incubator offers turn-key office, servers, communications and lab space for early stage ventures as well as entrepreneur coaching assistance and the opportunity to be part of an entrepreneur ecosystem.

Some clients also find that the Center’s affiliation with UND provides easy access to entrepreneurial-minded students who are looking for internships, projects and employment.

In 2011, the Center for Innovation Foundation secured the EB5 Regional Center designation from the U.S. Citizenship and Immigration Services to foster the U.S. economy through job creation and capital investment by foreign investors. The Foundation’s EB5 Regional Center serves all of North Dakota and Minnesota.

The EB5 program attracted nearly 300 foreign investors to invest $149 million in North Dakota ventures. Attracting international investors also will help attract additional international entrepreneurs as many wealthy investors are entrepreneurs, Gjovig said. Additionally the Foundation has great access to angel investors and, in the last 10 years, nine angel funds affiliated with the Center have invested $26 million in 43 ventures.

The Center has done several seminars and webinars for NBIA members worldwide on how to prepare and secure the soft landings designation serving as an example for others.

Since 1997, the Center for Innovation has worked closely with the UND School of Entrepreneurship, which is among the first in the nation to put a focus on the professional practice of entrepreneurship and to foster close working relationships between students and startups.

The UND Center for Innovation Foundation works with innovators, entrepreneurs, angel investors and students to launch new technologies and ventures, coach entrepreneurs in the startup and growth of ventures, and provide access to entrepreneur capital. The Center operates two tech incubators: Skalicky Tech Incubator and the Ina Mae Rude Entrepreneur Center. The incubators host 30 ventures employing more than 120 people. The Center for Innovation was among the first entrepreneur outreach centers in the nation when it was formed 33 years ago in 1984. The Center has earned sixteen national and international awards for excellence in innovation and technology entrepreneurship.

For more information: Bruce@innovators.net

Student Reaches the Stars Through Kurt Mueller Entrepreneur Internship Program A UND internship program that has served more than 200 student entrepreneurs has allowed one student to create a business that is out of this world.

Utilizing his time in the Kurt Mueller Entrepreneur Internship Program, Alex Holland was able to build an idea into a business. He and two others founded Open Space Frontier Technologies LLC, a business devoted to space exploration.

They will sell small satellite parts and perform spacecraft related consulting services with a goal to encourage peers nationwide to customize and build their own satellites.

“We want to make that ‘spark’ that enables kids’ dreams of space exploration to come true,” Holland said.

Holland said knew little about starting a business before heading down this road and was able to successfully utilize the Mueller Entrepreneur Internship Program to educate himself on the processes and procedures required to do so.

The Kurt Mueller Entrepreneur Internship Program provides undergraduates of any major with the opportunity to work on their own venture in the entrepreneurial environment at the UND Center for Innovation.

Kurt Mueller of Grand Rapids, Minn., a previous president of the Kauffman Center for Entrepreneurial Leadership, made a generous donation for this student-based program in 1997 to encourage and stimulate student ventures,

learn the skillset of an entrepreneur and assist emerging entrepreneurs in North Dakota.

Utilizing the program’s resources, Holland and his partners developed Open Space Frontier Technologies and its product line. The company specializes in a product called CubeSats, a miniature satellite used for space research that are about 10 cubic centimeters and weigh less than 3 pounds. These tiny satellites are launched into low-Earth orbit.

Holland’s goal is to make the small satellites more affordable to the general public, as prices can range from $2,000 to hundreds of thousands of dollars.The company designs, develops and produces small spacecraft and satellites that are used for consultancy services. Its staff continues to build out the product line and started receiving orders during the summer of 2016.

Holland, a Grand Rapids, Minn., native and 2014 graduate of UND’s mechanical engineering program, came up with the idea of selling satellite parts while working on UND’s OpenOrbitor program. There, he became involved with the fabrication of a satellite that can fit in the palm of your hand. This team of students was even awarded with the opportunity to launch a CubeSat through the NASA Educational Launch of Nanosatellites (ELaNa) program.

Their CubeSat is scheduled to launch, along with six others, from Cape Canaveral Air Force Station in Florida.

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Center for Innovation Foundation Receives $1.2M Grant to Advance BVLOS at Grand Sky The UND Center for Innovation Foundation received a $1.2 million grant in March from the state’s Centers of Excellence Commission to help enable beyond visual line of sight (BVLOS) unmanned aircraft systems.

Centers of Research Excellence Base Realignment grants provide funding to a nonprofit university-related foundation to enhance economic development and employment opportunities associated with the Grand Forks Air Force Base.

The Foundation received the grant to cover expenses involved in accessing the digital radar system at the base that is required to begin research into flying UAS beyond visual line of sight. The funds will purchase the necessary equipment and software and establish a temporary physical location to house the equipment and to serve as a base of operations.

Funds also will be used to install and make the link to the system, known as Digital Airport Surveillance Radar or DASR-11, operational and then begin providing radar observer services to the Northern Plains UAS Test Site and Grand Sky customers that will conduct research, training and beyond visual line of sight UAS operational activities.

Customers include Elbit Systems of America, Northrop Grumman and General Atomics. Grand Sky is a 217-acre aviation business park under development on base land.

Linking Grand Sky to the base’s radar system will allow beyond-visual-line-of-sight (BVLOS) flight testing with a higher level of safety. This makes Grand Sky a uniquely qualified hub for UAS development in the nation. The BVLOS certification and testing are the latest stage of commercial flight in the UAS industry. As more companies begin to do BVLOS flights, the base will be able to track and monitor those flights taking place in the area and ensure the proper safety protocols are being utilized.

Technology Law Firm Danielson Legal Offering Office Hours in Center for Innovation Danielson Legal, LLC, an intellectual property and technology law firm with offices in Fargo, N.D. and Cambridge, Mass,, has announced a partnership with the UND Center for Innovation Foundation to begin offering legal services in Grand Forks.

Danielson Legal is a boutique intellectual property and technology law firm founded in Cambridge that represents international, national and regional companies, both large and small, in a variety of trademark, patent, copyright, licensing, and related areas of practice.

Beginning April 2017, Danielson Legal will have regular office hours at the Center every third Thursday of each month, and otherwise by appointment. During the office hours, entrepreneurs may visit with attorneys from Danielson Legal and ask legal questions relevant to their businesses.

Danielson Legal’s technology law practice serves clients in a wide range of corporate, business, transactional, licensing and dispute matters, including entity formation and maintenance, due diligence, technology-focused and general business transactions, mergers and acquisitions, commercial leases, and privacy and data security. The firm provides outside general counsel services to technology and branddriven companies in a variety of markets and industries.

“We are honored and excited to be strengthening our ties both to Center for Innovation and the greater Grand Forks area,” Miguel Danielson, managing member of Danielson Legal, said. “Bruce Gjovig and his venture development team are at the epicenter of technology entrepreneurship in North Dakota and our law firm was built to serve this exact market — a partnership makes perfect sense.”

Danielson is a native of Fargo and has been a practicing attorney since 2002, including tenures at two top law firms in Boston after graduating from Harvard Law School.

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For more information about Danielson Legal: miguel@danielsonlegal.com www.danielsonlegal.com

Dakota Venture Group Welcomes New Leaders, Anounces Two Investments Dakota Venture Group rang in the New Year with a few leadership changes as well as two new investments.

University of North Dakota senior Andrew Allen took the reins as chairman of the first studentled venture capital fund in the country in early January, while Emily O’Brien moved into the chairwoman emeritus role.

Allie Albrecht, a chemical engineer major who graduates in 2018, filled the vacancy in the managing director of business development role.

DVG also has put the finishing touches on its two most recent investments: Cartogram, Inc. and CrossTX, Inc. Cartogram, Inc. Cartogram, a Seattle-based company, provides indoor positioning services for large facilities such as malls, sporting stadiums and corporate campuses. Cartogram is able to custom tailor its software to fit with any location while dovetailing with Google Maps to provide seamless navigation from the street to the indoor location. Cartogram also provides several additional features ranging from line length prediction, near field advertisements and merchandise inventory tracking.

into a convenient database. In addition, the platform can be used in healthcare information exchanges, enabling these networks to see trends in among their members and in turn lower costs. CrossTX recently closed its angel round after raising $735,000.

DVG continues to screen companies as they come through the pipeline and is in the early stages of looking at follow-on funding for its portfolio companies.

The group also is preparing for many of its members to go out into the field for the summer to take on various jobs and internships. This summer, members will be traveling across the United States for work as well as to India for an internship.

DVG also would like to say thank you and congratulations to its members graduating this May: • Luke Schields • Sean Cleary • Jack Cassidy • Trae Ostman For more information about Dakota Venture Group: www.dakotaventuregroup.com

CrossTX, Inc. Based in Bozeman, Mont., CrossTX is a medical software platform that enables primary care providers and their nursing staff to more effectively quarterback their patient care. CrossTX allows physicians to combine heavily disjointed medical information from multiple providers

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NONPROFIT ORG US POSTAGE PAID GRAND FORKS ND INA MAE RUDE ENTREPRENEUR CENTER NORM SKALICKY TECH INCUBATOR

PERMIT #10

4200 James Ray Drive Grand Forks, ND 58203

Address Service Requested 701.777.3132 www.innovators.net newsletter@innovators.net The UND Center for Innovation helps entrepreneurs, 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.

SUPPORT STUDENTS AND ENTREPRENEURS

The success of the UND Center for Innovation is made possible by the investors in our quality programs resulting in national recognition for excellence. Our programs favorably impact our future talent 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 Invest in the Future UND Center for Innovation Foundation PRIORITY NEEDS • Entrepreneur Coaching for Venture Development • Student Startup Programs • Dakota Venture Group (Student Venture Fund) • Veteran Entrepreneur Program • Family Business Initiative School of Entrepreneurship PRIORITY NEEDS • Student Entrepreneurs - Entrepreneur Internships • Sponsorship of Entrepreneur Speakers and Forums • Experiential Learning Experiences • Professors of Entrepreneur Practice • Professional Practice of Entrepreneurship • Entrepreneurs-in-Residence

Bruce Gjovig

Entrepreneur Coach & CEO UND Center for Innovation Foundation 701.777.3134 bruce@innovators.net

Tommy Kenville

VP Development & Rainmaker UND Center for Innovation Foundation 218.779.9950 tom@innovators.net *Contributions to the UND Center for Innovation Foundation are tax deductible and included in your UND Foundation Giving record. *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.