i&E Magazine Winter 2008

Winter 2008

iNNOVATORS

Entrepreneurs

Oklahoma’s Advanced Technology Magazine

iThryv Software Platform Helps Children Master Financial Literacy

ANGELS

AWAITING New i2E Program to increase angel connections

GROWING

NEW Dreamers

All College Competition Institutions Big and Small Flex Their Muscles Through Governor’s Cup

iThryv’s Gary Nelson and Scott Klososky

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C o n t e n t s

iNNOVATORS

Entrepreneurs

Oklahoma’s Advanced Technology Magazine

C O N T E N T S About i2E i & E Profiles Access Optics Charlesson mobiManage Swing Dynamics Access to Capital OCAST Technology Business Finance Program

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Oklahoma Seed Capital Fund SeedStep Angels:

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Entrepreneurs iThryv: Dollars and Sense

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Educational Growing the Governor’s Cup

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Helping Entrepreneurs Grow Wings.

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Cover iThryv

Software platform helps children master financial literacy.

Opportunities expand from this unique competition.

All College Competition Governor’s Cup draws contestants statewide.

The Entrepreneurial Leadership Program New fellowships help start-ups and students.

Economic Development Innovation: A Proven Investment in Oklahoma

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by Michael Carolina, Executive Director of OCAST

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Partners

iNNOVATORS

&ENTREPRENEURS

is produced by i2E, Inc., manager of the Oklahoma Technology Commercialization Center.

For more information on any content contained herein, please contact i2E at 800-337-6822. © Copyright 2008 i2E, Inc. All rights reserved.

OCAST’s Michael Carolina

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Governor’s Cup 3

A B O U T

i 2 E

A MESSAGE FROM THE PRESIDENT Welcome to the winter issue of innovators & Entrepreneurs, a magazine devoted to sharing exciting news from the expanding entrepreneurial economy of Oklahoma. This publication is filled with stories of Oklahoma entrepreneurs who have come up with bright, innovative ideas; developed those ideas into products and services that match the needs of large markets, and founded companies that are creating new jobs and drawing revenue into our state—and that is what commercialization is.

At i2E, we are all about growing Oklahoma’s advanced technology companies. In the last 10 years, more than 1,100 companies have been assisted by i2E’s commercialization services. The businesses started by these Oklahoma entrepreneurs are remarkably diverse. One of our state’s newest companies, iThryv LLC of Oklahoma, Tom Walker demonstrates special relevance in this time of significant national and personal financial crisis.

Founded last year by a team of technology and banking entrepreneurs who have a history of building successful businesses, iThryv aims to train children and young adults in financial literacy. The company’s online banking tool, which will be provided through banking institutions, will help children and young adults from ages 5 to 24 years manage checking and savings accounts online and learn the principals of financial security.

Oklahoma innovation would not be possible without seed and early stage sources of capital. We are pleased to announce the formation of SeedStep Angels, a new angel group for our state patterned after best practices from angel groups across the country and founded and managed by i2E. i2E portfolio companies have acquired more than $340 million in investment capital in the past several years. Two companies highlighted on page eight received OCAST Technology Business Finance Program funding. Swing Dynamics is developing a technology to track how the body moves through the golf swing to create best practices for golfers, and mobiManage produces software that enables full screen images to be suitably displayed on small screen devices.

Our state is becoming nationally known for strides in the commercialization of nanotechnology. Access Optics of Broken Arrow, a recipient of OCAST funding through the Oklahoma Nanotechnology Applications project, creates tiny optical devices for medical exams and procedures and has experienced a compound growth rate of more than 50 percent.

One of the best ways to nurture an entrepreneurial economy is to develop and retain entrepreneurs in state. Over the last five years the Donald W. Reynolds Governor’s Cup business plan competition has encouraged and educated hundreds of Oklahoma college students as they competed for more than $500,000 in cash and in-kind prizes. Read about this year’s competition on page 18.

Finally, you may notice that this issue of i&E has a new look. We have had so much interest and support from our readership that we have expanded our format. We welcome your comments and hope you enjoy reading about Oklahoma entrepreneurs and their companies as much as we enjoy working with them.

Tom Walker i2E CEO and President 4

i2E TEAM The i2E management and staff is composed of professionals with extensive experience in technology commercialization, technology transfer, business development, venture investing, finance, organizational management, and marketing.

Tom Walker

President and Chief Executive Officer

David Thomison

Vice President, Enterprise Services

Rex Smitherman

Vice President, Strategic Development

Tom Francis

Vice President, Investment Funds

David Daviee

Vice President, Finance and Administration

Sarah Seagraves

Director of Marketing and Events

Richard Gajan Enterprise Director

James Randall Enterprise Director

James R. Rogers Enterprise Director

Grady Epperly Marketing Specialist

Scott Thomas Network Administrator

Michelle Odom

Meeting and Events Specialist

Kelly Ruyle

Administrative Assistant

Cindy O’Hearn Administrative Assistant

www.i2E.org i2E was created in 1997 in response to the Oklahoma Center for the Advancement of Science & Technology’s (OCAST) initiative to establish a center to support technology commercialization in our state.

A B O U T

i 2 E

ABOUT i2E was created in 1997 in response to the Oklahoma Center for the Advancement of Science and Technology’s (OCAST) initiative to establish a center to support technology commercialization.

A year later, a program was formed to assist researchers, inventors, entrepreneurs and companies to turn advanced technologies and high-tech start-up companies into exceptional business opportunities for Oklahoma. This program is the Oklahoma Technology Commercialization Center (OTCC).

This initiative was taken even further when the OCAST Technology Business Finance Program (TBFP) was created to meet the capital needs of early technology-based enterprises.

In 2005, i2E received a grant to manage an annual statewide business plan competition for college students with cash prizes over $100,000. The Donald W. Reynolds Governor’s Cup was designed to encourage students to act upon their ideas and to promote the development and commercialization of technologies being discovered in our universities.

The Oklahoma Seed Capital Fund (OSCF), an innovative, public-private partnership established in 2007, is a $7 million venture capital fund that provides seed and start-up stage equity financing to small, advanced technology, Oklahoma-based companies.

In 2008, the i2E Angel Fund and the SeedStep Angels group was created to meet the early stage funding needs of these emerging companies. Also, the Entrepreneurial Leadership Program, a statewide fellowship program, was developed to match start-up technology businesses with talented students to further commercialization projects.

The success of all these programs, managed by i2E, provide Oklahoma entrepreneurs, college students and researchers with the knowledge, skills and access to capital for turning innovations into enterprises………i2E.

i2E BOARD of DIRECTORS Steve Cropper, Chairman

Roy Williams, Vice Chair

Mike LaBrie, Secretary

Robert Barcum

Steve Cropper

Merl Lindstrom, PhD

Craig Shimasaki, PhD

Entrepreneur & Investor

Investor

ConocoPhillips, Inc.

InterGenetics, Inc.

Howard Barnett, Jr.

Philip Eller

Dan Luton

Sheri Stickley

TSF Capital, LLC

Eller Detrich, P.C.

OCAST

Sean Bauman, PhD

Keith Erwin

Michael Neal

Immuno-Mycologics, Inc.

North American Insurance Group

Tulsa Metro Chamber

Marilyn Feaver

iThryv

Bob Berry D.C. Bass & Sons Construction Co.

C. James Bode Bank of Oklahoma, N.A.

Michael Carolina OCAST

Hiram Champlin Chisholm Trail Broadcasting

Bob Craine TSF Capital, LLC

Southwestern Oklahoma Impact Coalition

Barbara Hisey Retired Executive

David Hogan Hogan & Slovacek

Philip Kurtz Benefit Informatics

Hershel Lamirand, III Oklahoma Health Center Foundation

Gary Nelson David Pitts Stillwater National Bank

Oklahoma Department of Commerce

Kay Wade

Logan City Economic Development Council

Rainey Williams, Jr. MARCO Capital Group

Roy Williams

The City of Tulsa

Greater Oklahoma City Chamber of Commerce

Steven Rhines

Dick Williamson

Amy Polonchek

The Noble Foundation

Richard Rush The State Chamber

Darryl Schmidt BancFirst

TD Williamson, Inc.

Duane Wilson LDW Services, Inc.

Don Wood NEDC

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Access Optics Chief Executive Officer Bob Hogrefe Year Started: Incorporated, 2000, began business, 2001 Number of Employees: 22 Office Location: Broken Arrow, Oklahoma Product or Technology: Precision optics Market: Original equipment manufacturers in the U.S., Europe, Asia and South America.

Future Plans: Expanding medical OEM customer market share, plus designs and prototypes for our own line of commercial imaging products, offering new market prospects in industrial inspection applications.

Funding: OCAST funding in 2007 for the Oklahoma Nanotechnology Applications project.

Successes: We count it a notable success to have repatriated production work that had previously been farmed out to Europe and Asia. Significant portions of our present product portfolio have been brought back onshore, improving both production economies and product quality in the process.

Website: www.accessoptics.com

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here probably are more carefully thought-out superlatives that could be used, but “wow!” first comes to mind in considering the past achievements and future plans of Pam and Bob Hogrefe’s company, Access Optics LLC, in Broken Arrow.

They are self-professed veterans of the photonics industry who came to Tulsa several years ago to buy and run a small company in that business. As Pam explains it, “matters changed, we had the entire family with us, and we decided to stay.”

Then shortly thereafter Bob took over the management of U.S. business interests for a UK-based multinational company.

In 2001 they decided to start their own business in precision optics, producing FDA-regulated medical devices and components — still in photonics, and over the last seven years that company has experienced a compound annual growth rate of 55 percent!

“Bob was well known in our industry, and when we put out our sign we didn’t have to go looking for business because of his reputation,” Pam points out.

Bob is a graduate of the University of California at Berkley, and Pam received her degree in journalism at Western Illinois University. As CEO, Bob handles the technical issues, marketing and operations, and Pam, as general manager, takes care of administration, finance and personnel.

For the uninitiated, Bob explains the company’s products. “When you go to the doctor’s office and he looks in your ear, or turns the lights out and looks into your eyes, these are the kind of optics we would deal with.” Taken to the extreme in this illustration, he explains, if you have shoulder, knee or hip surgery, the doctor may use a device — an endoscope — to see and work through a tiny incision. “These optics, some as small as Lincoln’s eye on a penny, are our forte,” he adds.

The real impetus for a lot of current technology came from development associated with space exploration, Bob explains, and translating that esoteric technology into commercial applications has been the work of the industry.

As Bob points out, a grant from OCAST has allowed the company to develop nanotechnology that is used not only for a wide range of medical purposes, but also in other commercial and industrial applications. These include high-precision bore scopes and cameras. “We expect to see a big jump forward as we develop and introduce our own line of products,” Bob says.

Considering the company’s extraordinary growth rate, and its plan for launching its own line of products, it is not surprising that land has been purchased in Broken Arrow to build new quarters — three times the size of the current 6,000-squarefoott office/plant. Construction will start before the end of this year.

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Charlesson Chief Executive Officer Michael Moradi Year Started: 2005 Number of Employees: 19 Office Location: Oklahoma City Product or Technology: Charlesson consists of two different but related companies: A biopharma company that is developing drugs for eye diseases, and a clinical research organization.

Market: Eight million Americans suffer from macular degeneration and 5.3 million have diabetic retinopathy. The incidence of retinopathy is nearly 100 percent among those with Type 1 diabetes.

Future Plans: We expect to enter human clinical trials for our lead compound in 2009, and will continue to grow our clinical research organization.

Funding: Thankfully we haven’t had to raise a dime of venture capital, and we have no external investors. Charlesson has secured over $5 million in National Institute of Health funding, and generates a half million dollars annually in clinical research organization sales. We have received generous support from OCAST. Successes: Perhaps our greatest accomplishment is that we’ve built this company without having to raise money. We are talking to every major ocular pharma company, and have confidence that this company will continue to be successful.

Website: www.charlesson.com

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he founding of Charlesson is a classic example of people with differing talents, but similar objectives, coming together to achieve through cooperation the advancement of common goals, explains CEO Michael Moradi.

And the goal, in this case, is to deliver real hope to millions of people suffering from serious eye diseases: macular degeneration and diabetic retinopathy.

The chance meeting of Moradi and “Jay” Ma (Dr. Jian-xing Ma) at a National Health Institute conference set them talking back and forth, as Moradi describes it. The discussions involved the technology Charlesson had been developing through worldwide research, as well as the compounds Ma had begun working on at the University of South Carolina, continuing at the University of Oklahoma.

The value of operating two complementary companies, a drug development company and a clinical research organization (CRO), showed up right away.

“We had been trying to license some of our compounds out to large companies,” Moradi said, “but

when we presented them with our compound they weren’t interested. However, they were interested in the work we were doing through our clinical research organization, and wanted to know more.”

That initial rebuff did not dampen the company’s dual approach. Compound development and research continue, and both are registering success. Charlesson’s CRO has licensed technology from some of the best universities in the world, Moradi points out. Its lead compound is a treatment for diabetic retinopathy, a blinding disease in which the eye’s photo receptors “go out.” The incidence of diabetic retinopathy among persons with type-1 diabetes is almost 100 percent, and is greater than 60 percent for patients with type-2 diabetes, Moradi says.

The company plans to begin clinical testing of its compounds in 2009.

Moradi has high praise for the help of OCAST. “We have a unique approach in Oklahoma,” he points out, “and other states are wisely copying it.” But Charlesson does not want to rely on grant funding for its continuing health. “Our CRO continues to grow and generate considerable profit,” he says, “and we’re also testing the water with the investment community.”

The organization’s executive team has a history that supports that sense of independence. Charlesson is Moradi’s sixth company. NanoSource, a prior company, was acquired by DuPont, and SWeNT has built one of the first commercial manufacturing facilities for single wall carbon nanotubes in the world. Both companies have paid back in full their TBFP awards from i2E. “Because of the generous support of our state,” says Moradi, “we have created three tremendous success stories in Oklahoma.”

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mobiManage President/CEO Jeff Beasley Year Started: 2008 Number of Employees: 6 Office Location: Tulsa, Oklahoma Product or Technology: mobile Web

sites, custom mobile Web development solutions, content management system (CMS) for mobile sites.

Market: Current Web sites; plus specific markets such as mobiAgent for real estate agents; mobiAppetit for restaurants, mobiGreens for golf courses, mobiExhibit for museums and attractions.

Funding: Initial funding from Bluefrog Interactive. Also an OCAST Technology Business Finance Program (TBFP) company.

Successes: Developed and launched eight products designed to meet mobile Web needs. Built significant relationships with dotMobi, Dublin, Ireland. (dotMobi ensures that services and sites developed around .mobi are optimized for use by mobile devices.) mobiManage’s president, Jeff Beasley, serves on dotMobi Advisory Group, which helps set international standards for the mobile Web.

Website: www.mobimanage.com

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he partners of Bluefrog Interactive regular Web, but the image they receive have reached the conclusion that is usually distorted, or incomplete in “smaller” is in some circumstances bet- some fashion, Spillman explains. ter than “bigger,” and they’re counting The demand for special Web cateron 87 million potential U.S. customers ing to mobile instrument users is great, (1.3 billion worldwide) to agree with Spillman says. In China, as an example, them. the number of cell phone users has exBluefrog is a Tulsa-based firm created ploded, and there are predictions (moin 2007 by partners Jeff Beasley, Seth biManage agrees with them) that before Spillman and Justin Christian that is long there will be more customers using involved in Web and software develop- the mobile Websites than are using the ment, and other customer applications original Web. for the Web. While the focus on mobile commuIts newest project is mobiManage — nication is broadening, because of the a process launched rapid increase in in March 2008 for mobile instrument delivering images usage, the regular that are specifically …delivering images that Web will not be tailored to smaller are specifically tailored affected by the screen sizes for the attention to smaller screen sizes special proliferating presgiven the mobile ence of mobile for the proliferating market, Spillman communication says. presence of mobile devices, accordToday, mobiing to Spillman, communication devices… Manage has a runwho is scheduled ning start toward to open soon an its acceptance as Oklahoma City a dedicated server office from which the mobiManage divi- to the mobile market. It has been recsion of Bluefrog will be operated. ognized as a “Site of the Week” by dotBluefrog provided the seed money Mobi, an international consortium of which enabled the organization to get similarly dedicated companies, headits mobiManage funding from i2E as an quartered in Dublin, Ireland. Beasley OCAST Technology Business Finance serves as a member of the dotMobi Mobile Advisory Group.

Program (TBFP) company.

According to Spillman, mobiManThe organization’s incentive for launching into mobiManage devel- age expects a warm welcome from those opment was its discovery that, of the who place their dependence on “a small 80 million “.com, .net, .org” sites on window into a large world.” the Web, only .03 percent are “mobile friendly,” meaning that they produce a signal that displays properly on a mobile device. Mobile devices can access the

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he good news for golfers is that there may be, in fact, a “golf god.”

Surprisingly, it is a company, and may be more easily approachable than someone with a 21-handicap would dare have the audacity to hope.

Swing Dynamics didn’t set out to incite expectations of revolutionary change among the strikers of the little white ball, but some unexpected turns have it aimed in that direction, according to CEO Dr. Thomas Thompson.

The company is working with researchers at Mississippi State University on company-developed technology to track how the body moves through the golf swing. Ironically, the “force plate” (technology) that is being used in this research is the same that was used to help multiple sclerosis patients achieve better balance.

That was the rewarding “accident” to which Thompson refers.

With proper analysis and instruction a lot of things that are hard for people to do become easier, Thompson points out — and that includes executing the swing at a golf ball. Swing Dynamics purports to go to the heart of the average golfer’s problem: learning to move one’s body correctly. “Everything else tends to follow along,” Thompson says.

“I can show you that the turning of the shoulders”— a critical element of

the golf swing —“is a function of where the weight is on your right foot,” he explains.

A part of the research involves creating a “Web portal”— collecting body data on a broad cross section of golfers.

By studying the successful techniques of golfers of different height, weight, etc., the company expects it will be possible to develop “best practices” for golfers falling within each of the several separate groupings.

Thompson is a testament to the soundness of the company’s theory. As a golfer he formerly carried a handicap of 12 (meaning, for the benefit of nongolfers, that his skill should lead him to score, on average, 12-over-par on a good day). Within two years he cut his handicap to 2— almost a “scratch” score (though he admits that his inability to play regularly, due to the pressures of business, have caused him to slip back to a 4 handicap).

And the good news doesn’t end. The company has now devised a system to track the movement of the golf club in the putting stroke to focus on the motion that is most likely to produce a one-putt result! It is expected to be useful to golf professionals in fitting clubs and giving lessons.

We developed the technology for an unrelated project and later discovered its use in measuring the golf swing.

Swing Dynamics Chief Executive Officer Dr. Thomas M. Thompson Year Started: 2001 Number of Employees: 2, with four commissioned sales representatives Office Location: Ada, Oklahoma; Oklahoma City, Oklahoma, and Denver, Colorado Product or Technology: An integrated suite of technologies to measure human performance, specifically golf. We have integrated video with human movement and Doppler radar to measure outputs.

Market: Golfers Future plans: To develop a web portal that will collect, analyze and disseminate information about a golfer’s swing and performance.

Funding: Raised over $250,000 from investors and have been awarded a $100,000 OCAST Technology Business Finance Program (TBFP) award.

Website: www.puttingmonitor.com

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OCAST Technology Business Finance Program (TBFP)

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t began as the brainchild of the Oklahoma Center for the Advancement of Science and Technology (OCAST) and is funded by the state legislature to specifically address early stage capital needs of Oklahoma’s technology-based businesses.

The OCAST TBFP program is a fund available for “pre-seed investment� opportunities for qualifying, advanced technology companies. The investment funds can be used for proof-of-concept, market validation, business planning, critical equipment purchase, human resource acquisition, and other business needs that lead to successful commercialization.

Since 1998, dozens of innovative Oklahoma entrepreneurs have secured make-or-break financing through this state-funded program which is recognized worldwide as a model of best practices. To date, 100 awards totaling more than $10.7 million have been made to 90 Oklahoma companies.

So

far in

FY2009

In FY2008

How the TBFP Works An eligible entrepreneur must be at the early development stage of commercializing an advanced technology. The business must be classified as a small business based on SBA guidelines, and at least fifty percent of the employees and/or assets must be located in Oklahoma. Approved enterprises are required to provide a match for the award amount. Certain businesses, such as retail services, oil and gas exploration, ranching, farming, and real estate development are not eligible.

Approximately ten awards of $100,000 each are available each year.

the following companies have received awards:

the following companies have received awards:

TBFP Exceeds Expectations When companies repay their awards, the money rolls back into TBFP to fund additional companies.

More than 17 of the businesses funded have repaid more than $3 million enabling the program to become partially self-funding.

Operated by i2E, the OCAST TBFP provides proof-of-concept funding for Oklahoma advanced technology companies. This program is funded by state appropriations.

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OKLAHOMA SEED CAPITAL FUND (OSCF) Provides seed and start-up stage equity financing to small, technology-based Oklahoma companies

The total projected amount of Series I is $18.8 million with the OSCF participating with $3.4MM. For every dollar OSCF has invested, $5.5 of direct private investment has been generated. The Angel and Venture Capital co-investment has been $8.7MM and $6.6MM respectively.

SERIES I Altheus I Altheus II CreditPoint eMotion Media Lifetone Technology i2E Seed Capital, LLC, a subsidiary of the not-for-profit corporation i2E, Inc., manages the OSCF.

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reated in 2007, OSCF is a $7.025 million venture capital fund that provides seed and start-up stage equity financing to small, technologybased Oklahoma companies. An innovative public-private partnership, OSCF operates under the Economic Development Act of 1987 and is managed by a separate subsidiary of i2E. State funding is provided through the Oklahoma Center for the Advancement of Science and Technology (OCAST).

OSCF looks and operates like a conventional venture fund with the specific goal of furthering economic activity and success in the state

by bridging the early stage funding gap between personal sources and traditional sources of venture capital.

The Oklahoma Development Finance Authority and the Oklahoma Capital Investment Board are co-investors.

OSCF seeks and accepts private investment which may offer state tax incentives and benefits. How OSCF Works To be eligible for OSCF an entrepreneur must be at the seed or early development stage of commercializing an advanced technology. OSCF seeks firms that have the potential to become high growth, advanced technology businesses that will contribute i

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to the ongoing economic growth of the state.

The fund anticipates making up to 10 investments from $250,000 to $700,000 per year in rounds of up to $1 million. Investments will be determined by a traditional investment due diligence process that is timely, practical, and thorough.

The use of funds is based on the company’s submitted business plan.

They may include such activities as developing the IP, building prototype, market study, implementing business operations, identifying the management team, and securing the management team.

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SEEDSTEP

ANGELS Helping Entrepreneurs Grow Wings

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ot all start-up businesses turn out to be a Google or Facebook. But they are a vital economic driver. Small businesses create 60 to 80 percent of net new jobs annually. They attract and hire 40 percent of high technology workers and produce 13 percent more patents per employee.

“That’s why anticipating and providing the investment capital that entrepreneurial companies need at every stage of their growth is so important to the prosperity of Oklahoma,” says Tom Walker, CEO of i2E.

In all of 2007, Oklahoma had fewer than two reported VC deals.

When an entrepreneur decides to found a start-up, he or she typically uses personal resources and may tap “friends and family” to raise pre-seed money of between $25,000 and $100,000 to carry the business through the proof-of-concept stage. However, once the feasibility of the product or service is proven entrepreneurs typically need additional outside seed capital to take their idea from concept to a product or service that someone will buy.

“In the industry, we call this phase of commercialization the valley of death,” says Walker. “The challenge entrepreneurs face is two-fold. First, very few venture capitalists invest in seed and early stage companies any more. In recent years, in fact, less than 3 percent of venture capital dollars nationwide have gone to seed stage investments. This is in part because of the inherent risk and

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also because VC funds have grown so large that they need to make bigger investments than are appropriate at seed and early stages.

They don’t have the time or manpower to manage a significant number of small deals.”

Walker continues, “The second challenge for entrepreneurs is that even though angel investors do provide about 90 percent of the outside equity that funds the initial stages of start-up businesses, individual angel investors are almost impossible for entrepreneurs to identify and reach.”

So where can an Oklahoma entrepreneur with a proven concept, a pocket full of patents, and the makings of a great management team go to compete for capital?

“In a few weeks, one answer to that question will be SeedStep Angels,” Walker says, “a new angel group for our state founded and managed by i2E.”

SeedStep Angels aims to bridge the equity capital gap.

“The name SeedStep Angels signifies both mission and attitude,” says Walker. “This angel group will invest in seed stage opportunities and beyond. We want to see that an entrepreneur has a proven concept before we invest, but we also want to invest in early entrepreneurial deals where the potential for returns match the high risk. This angel group will also provide the important mentorship needed at the early stages of a company’s formation.”

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SeedStep Angels is patterned after best practices from angel groups across the country “We’ve met with TechCoast Angels and Band of Angels from California, New Vantage Group from Virginia, CommonAngels in Boston, and Ohio TechAngels,” says Walker. “We brought their experience and best practices back to Oklahoma to blend with our own ideas and have created an angel group model that we think will work best here.”

Angel investors are high net worth individuals (think millionaires plus) who put time and money into start-up companies.

Return on investment is the primary measure of their success but not the only reason that angels invest. “Many angels made their money as entrepreneurs,” Walker says.

“They enjoy the challenge and risk of this environment and like mentoring and advising entrepreneurs. Others are motivated to give back to their communities by helping promising new companies start up.”

SeedStep Angels will be organized as a traditional angel group with members making their own individual decisions on potential investments. “i2E will perform all the administrative work,” Walker says. “That includes meeting planning and logistics, receiving and screening business plans, and managing deal flow and assisting in the due diligence process. Our organization is very experienced in evaluating new technologies and helping start-up companies gain traction and grow.”

In the past 10 years i2E’s portfolio has acquired more than $340 million in investment capital.

“Our goal is to apply our experience to make the process of deal flow, investing, and portfolio management as efficient as possible for SeedStep Angels while remaining flexible as we move forward so that the angels themselves can take ownership in the group,” Walker says.

SeedStep Angels will be a member of the Angel Capital Association (ACA), a trade association of 165 organized angel group members representing just under 7,000 accredited investors, who fund about 700 companies a year and have an ongoing portfolio of more than 5,000 companies across the U.S. and Canada.

“Angel groups are an important part of professionalizing and rationalizing the deployment of seed capital to start-ups,” says Ian Patrick Sobieski, founder and managing director of the Band of Angels Fund, L.P and vice chair of the ACA. “They serve as a catalyst for seed and early stage investing. The formation of SeedStep Angels is a significant step toward making it easier for small companies to get started in Oklahoma.”

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SeedStep Angels will have its own Web presence and benefit from the interactive tools provided by AngelSoft, the nationwide start-up funding network used by almost 14,000 angel investors and VCs. Entrepreneurs will download their business plans to AngelSoft to be electronically reviewed, shared, and managed electronically among SeedStep Angel members.

“We already have accredited investors from across the state who have expressed interest and anticipate an eventual membership of between 30 and 50 angels,” Walker says. “We expect to begin operations by January. Our first location will be in Oklahoma City and we will be following that with a Tulsa launch.”

Group members will determine the industries where they want to invest. Life sci-

We already have accredited investors from across the state who have expressed interest… ences, medical devices, information technology, and software are the industries that interest many angel groups. i2E is making a commitment of nonstate dollars to get SeedStep Angels started. “We are going to travel the path that other angel groups do,” Walker says, “building our budget from membership dues and sponsorships. We also have and appreciate strong support from the Oklahoma City Chamber of Commerce.”

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iThryv Co-founder Scott Klososky

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iThryv

Dollars and Sense

iThryv’s new software platform will help children — and their parents — develop stronger financial skills.

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cott Klososky and Gary Nelson learned the lessons that lead to personal success early—and in the trenches. Now, they are applying their experiences from creating and operating companies to solving the problem of “financial literacy.”

And the starting point for this tailored revolution is among our five-year-olds.

The two have gathered a cadre of specialists in finance and technology to form a company, iThryv, which is dedicated in its creator’s own words, “to providing a world-class platform to both serve financial institutions with a great product, and help parents and children learn about handling money.”

The company and its program have been some time in reaching the point where they can confidently anticipate the project’s implementation. And even having cleared the early hurdles, Klososky acknowledges that there are still some challenges to overcome.

The Horatio Algerplot that is Klososky’s life story started when he was a teen-ager, taking a job as a delivery boy for an office supply store over the choice of entering college. He subsequently took over management of the company’s warehouse, moved into sales, and entered the firm’s computer division as a technician.

Computer technology then was still very much a “teach-yourself” challenge, and Klososky met that.

So successful was his self-education in technology that he became manager of the department and later bought that operation to run as his own company. It was the culmination of a seven-year uphill trek. He built the company into a 12-store operation in three states before selling it and starting new companies.

He worked out a Soviet/American joint venture, Paragraph, Inc., which he served as CEO. Half the company was sold, and the remaining half became Parascript, Inc., which is still growing. Though his business interests have stretched across international and state lines, Klososky has been an Oklahoma resident for many years.

Nelson’s resume is equally impressive. A native of Pauls Valley, Oklahoma, Gary Nelson has 30 years of senior and executive management experience in the domestic and international financial payments industry. His experience includes successful technology start-ups and playing an executive role with private and public corporations. He accomplished a life goal of retiring, for the first time, at age 49.

Ernst & Young (E&Y) honored Nelson in 2003 as their technology Entrepreneur of the Year.

His last software company, Advanced Financial Solutions, made the prestigious INC 500 four years in a row and Principal Financial’s Top Ten Best Private Companies. He currently serves on the Board of Directors for several Oklahoma organizations, the Board of Regents for a local university and as Chairman of the Nelson Family Foundation which is designed to assist underprivileged and underfunded organizations like their core family charity, Rescue the Girls, a program that brings hope and purpose to many Oklahoma women. iThryv, LLC is a relatively new company, having been formed in 2007. It all began when Klososky and Nelson met unexpectedly in the lobby at North Church in Oklahoma City. They were two totally

We want nothing less than to change the world for the better by educating people on successful strategies for handling money throughout their lives.

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different guys in every way except their success in starting and growing technology companies and their now-regular meetings at North Church to acknowledge their reliance on a “higher power.” One conversation led to many and that led to the discovery of a financial illiteracy epidemic that could be greatly improved with some commitment, passion, and a relevant software technology platform, Nelson explains, adding they took the approach of “We’ve done it before, we can do it again.”

The management team includes Klosoksy as the idea guy and Nelson, dubbed “The Repeater,” as CEO and President. Others are: Lou Iannaccone, the CFO of multiple banking companies in Florida, Bobby Gruenewald, “the technology guy,” Steve Meston, lawyer and CPA, and Heath Clinton, in charge of building out technology.

All of the founding team have invested funds in the company, “and are doing all the work,” Klososky says.

Regarding the idea behind iThryv, Klososky explains: “Millions of children and young adults have savings and checking accounts, but none of the institutions they interact with offer them an online ability to manage these accounts and at the same time, learn about handling money.”

The company’s goal, clearly set out on its Web site, is: We want nothing less than to change the world for the better by educating people on successful strategies for handling money throughout their lives. iThryv defines the problem that has developed over many years and can be seen growing at an escalating rate from one generation to the next — the problem the company will address: “When credit was born, savings accounts took a huge hit, and it’s only getting worse. By providing better tools and more educated consumers, we will create a much healthier economy for all. Best of all, spreading $Literacy can be profitable as well as community-conscious. Integrated family banking is a power-

ful win/win opportunity that the whole industry recognizes because it solves a number of the difficult financial issues we are facing today.” iThryv is a program that calls for an unprecedented level of joint cooperation/participation between the institutions of primary/secondary education and personal finance.

Although some representatives of both those institutions were initially reserved about the project’s workability, that wariness has for the greater part passed, and there is strong acceptance now for putting it into effect. One development that helped earn acceptance for iThryv in both camps was the Oklahoma Legislature’s passage of a measure requiring the schools to teach the responsible handling of finances, Klososky says.

“Working with banks and with schools is going very well,” he says of the great amount of time spent explaining, then selling, the institutions on becoming participants in the program. “A high percentage of banks and credit unions love it,” he reports, “and so do the schools — even though it’s a hard program to initiate.

“It will be a problem getting it worked into the curriculum,” Klososky admits, referring to how the company will go about introducing its program iThryv into the classrooms. “Primary teachers are excited, but as we get into junior high and higher there is less time for teachers to fit it into the class schedules.

They are not happy at the senior high level,” he adds. “But they are required to do it,” he points out, referring to the legislative mandate.

The two basic programs that will drive the project can be accessed and reviewed at “iThryv > Home,” under www.iThryv. com. iThryv is the “online banking platform” built for young people ages 5 to 24, and weProsper is the “community site that brings together parents, schools, financial institutions and sponsors to teach our children,” Klososky says.

Obviously the program that is introduced for five-year-olds is not the same that will be used for older students, or even young adults. As Klososky explains it, the very youngest will have the opportunity of being exposed to the program from the ground up, moving into a new phase every few years.

With this in mind, iThryv has developed three “flavors” (stages of advancement in the program), directed at successive age groups: a Youth flavor for those from 5 to 11 years old, a Teen flavor for ages 12 to 17, and a Young Adults flavor for those 18 to 24.

In its introduction of the iThryv program, the company proposes to “solve the following specific problems”: 1 – (Provide) a solution for teaching financial literacy at the point of transaction that is robust and unique. This is critical because of statistics such as the fact that approximately 25% of the personal bankruptcies in the U.S. are filed by people 25 years old or less.

2 – A service that helps banks and credit unions make more money through saving them costs on servicing small kids accounts on paper, making stickier relationships with parents, and providing an avenue for additional fee income.

3 – A free tool for schools to teach financial literacy. Many are being mandated to do this by their state government, yet are getting no funds to implement it.

It is on the latter point that iThryv expects education partners in the process to find the new program extremely attrac-

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tive. This is where iThryv With the weProsper and Gary Nelson, iThryv CEO and President steps up to the plate. Its iThryv programs “teachers plan is to provide its proat all grade levels can teach gram platform to schools financial literacy in the and teachers free, through classroom, and community the weProsper.org commuprograms and families can nity site. Participating fiuse it as a learning tool,” nancial institutions, which Nelson explains. Other would buy the equipment unique features in both and programs to interface programs, he points out, with the schools, would “are tools for kids to build cover the hard costs. neighborhood businesses As iThryv explains this from pre-built business, as advantage, “This allows well as for parents to set up a city to start kids in kinautomatic allowance drafts, dergarten with a simulated a savings-match program, banking platform that looks and a sophisticated conexactly like what they will tent delivery system that be able to use at a bank gives each young person with real money when they content that is appropriate choose. Not only does this to their level of financial enable schools to teach literacy.” financial literacy on a soIf iThryv experiences phisticated online delivthe success expected of it, ery system for free, it also the accomplishment will provides the onramp to be another notch on Scott drive new customers to our Koslosky’s gunstock. In banking customers.” addition to (and because iThryv looks at its finanof) his business-creating cial education program as open-ended. It is career, he is an in-demand public motivaanticipated that, in the future, new “flavors” tional speaker. His most popular current will be created targeting senior citizens, the topic is on “velocity leadership,” in which Spanish community and young married he suggests that, while technological adcouples. vancements are coming at a dizzying speed, Although iThryv has moved at an imbusiness leadership is not necessarily keeppressive pace in the relatively short time ing pace in recognizing and reacting to the work has been under way, it literally “got challenges and opportunities that result. feet” in September when it presented its It is evident in talking with Koslosky program in San Francisco to TechCrunch and Nelson that iThryv holds a special 50, a conference of the nation’s leading place in their impressive string of innovaventure capitalists, corporations, angel intive business venture successes. A strong vestors, fellow entrepreneurs and the intermotivation for pursuing the plan is that national media. the lack of financial responsibility causes TechCrunch50 was formed in 2007 by mismanagement of money. Nelson cites a entrepreneur Jason Calacanis. Michael Arrington is owner and recent meeting with 100 university students where not one stufounder of the blog TechCrunch, which was started in 2005, and dent in the room could raise his or her hand to acknowledge ever the co-founder of the conference. Its corporate sponsors include receiving any financial literacy training. “It’s absolutely shocking Google, Microsoft, MySpace, Salesforce, MSN Money, Symantec, and a disturbing epidemic in our country,” he says.

So how do you change the culture? By creating a financial Thomson Reuters and Yahoo. It is also supported by major venture capital firms — Sequoia Capital, Mayfield Fund, Clearstone literacy movement (similar to the environmentally friendly “GoVenture Partners, Charles River Ventures, Founders Fund, Per- ing Green” and “Pickens Plan” movements) and building a community of stakeholders (students, teachers, financial institutions, kins Coie and Fenwick & West.

Significantly, companies are invited to make their presentation civic leaders, corporations, government) that places high value to TechCrunch50 “exclusively on merit.” In appearing before the on adopting financial literacy skills. “We believe this is accomorganization, iThryv also places itself in competition for a $50,000 plished via an online software technology platform, endorsed by the “community of stakeholders” starting at age 5 and growing prize.

In his presentation before the TechCrunch50 audience, co- with relevant content to senior citizens,” Nelson explains.

In short, when fully implemented iThrive will be there to help founder and CEO Gary Nelson clearly described iThryv’s plan to help consumers — including their children — make better in- all thrive. formed choices.

Teachers at all grade levels can teach financial literacy in the classroom

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GROWING the Governor’s Cup From outreach to smaller colleges to a new leadership program, the Governor’s Cup is sending the message…

Oklahoma is a great place to be a young entrepreneur.

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Governor Brad Henry, the 26th governor of the state of Oklahoma, addresses the crowd at the 2008 Donald W. Reynolds Governor’s Cup Collegiate Business Plan Competition Awards Dinner April 24, 2008 at the Bricktown Event Center. (photo courtesy of i2E, Inc.)

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ver the last five years the Donald W. Reynolds Governor’s Cup has encouraged and educated Oklahoma college students with its statewide technology-based business plan competition. In fact, it has been so successful that new opportunities for these students have grown from this unique competition.

It began when The Donald W. Reynolds Foundation established the competition to encourage college students to become more involved with business, entrepreneurship and their state’s economic development. The first Governor’s Cup competition was held in Arkansas over eight years ago.

In 2005, the Reynolds Foundation expanded the competition to include Oklahoma and Nevada. i2E was asked to manage the Oklahoma program. Because i2E’s mission is to foster homegrown technology-based start-up companies, the Oklahoma Governor’s Cup became one of the nation’s first statewide collegic technology-based competitions.

The process challenges students to think outside the box and develop business plans either using existing technology in a novel way or developing a new innovative product or service. Teams compete in undergraduate and graduate divisions for over $100,000, one of the largest cash pools in America.

Competitors can also vie for the Innovation Award, which offers nearly $50,000 of in-kind services needed to start a new company. These services, supplied by five sponsoring business experts, will be awarded to the team best poised for commercialization. This unique sponsorship is limited to one leading firm in each field: marketing/branding, legal consulting, data services and Web hosting, commercialization services and extensive networking opportunities.

After only four years, the Governor’s Cup has attracted 136 innovative ideas from 26 campuses across the state.

Altogether over 500 students have tested their entrepreneurial skills while competing for $500,000 in cash prizes.

This program has helped to establish nearly 10 innovative companies, created job opportunities and been successful on sending the message to our college students that Oklahoma has the resources, the talent and the fortitude to retain our young fine minds and build an innovation economy.

“The Governor’s Cup competition, like no other, has had an immediate impact upon our efforts to grow the culture of

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entrepreneurship throughout Oklahoma.

In the past few years we have positively influenced the lives of hundreds of college students and helped nurture dozens of new technology-based companies,” says Governor Brad Henry.

The Tri-State Competition Today, Oklahoma students not only compete against each other, but other states. In 2008, the Donald W. Reynolds Foundation sponsored the inaugural TriState Competition for the undergraduate and graduate first- and second-place winning teams from Arkansas, Nevada and Oklahoma. Six teams competed in a one day oral competition for $80,000 and faculty advisors for $10,000 totaling an additional $90,000 in cash prizes.

Oklahoma teams brought home half the winnings — $45,000.

“If the business plans pitched by Oklahoma college students are any indicator, the state’s economic future is bright,” says Sam Walls III, vice president of Arkansas Capital Corporation Group, one of the original founders and sponsors of the event.

The Tri-State Competition will be an annual competition held in Las Vegas, Nevada, headquarters to the Donald W. Reynolds Foundation.

The Oklahoma Business Roundtable Scholarship Awards Also in 2008, the Oklahoma Business Roundtable offered a $5,000 Scholarship Award for an undergraduate student to use toward tuition at his or her college of

Nantiox, from the University of Oklahoma, Norman, receive their first place undergraduate division trophy at the 2008 Donald W. Reynolds Tri-State Collegiate Business Plan Competition Awards Dinner May 13, 2008 at the Red Rock Resort and Casino in Las Vegas, Nevada . (From left to right) Nantiox Researcher Jim McGuiness; William Cunningham; Faculty Advisor P. Lloyd Hildebrand, M.D. Associate Professor of Ophthalmology, Dean McGee Eye Institute; Chris Shilling; Michael Carolina, Executive Director of the Oklahoma Center for the Advancement of Science and Technology; John Woodson; Team Leader Kim Saylor; Lamar Davis, Arkansas Deputy Chief of Staff; and Brian K. Krolicki, Nevada Lieutenant Governor. Nantiox uses cerium oxide nanoparticles to prevent blindness caused by age-related retinal diseases.(photo courtesy of i2E, Inc.)

choice for the fall semester. The student is also given a chance to deliver a five-minute presentation on Oklahoma business development at the Oklahoma Business Roundtable annual meeting which is attended by the Governor and other top CEOs and business leaders from across the state.

The Roundtable Scholarship Award was established to recognize Oklahoma undergraduate students with the initiative to become involved with the state’s economic development.

University of Oklahoma senior entrepreneurship major Eddie Coates made

a successful scholarship application and presentation to the Business Roundtable, beating four other finalists for the $5,000 scholarship. Coates was a member of the OU undergraduate finalist team called Fusion Recruits, a social networking Web site for athletes and coaches that would allow them to promote themselves for scholarships or higher level play through videos and photographs.

For 2009, The Roundtable is expanding this award to include a $5,000 scholarship to a graduate student as well as an undergraduate student.

Governor Brad Henry and Roundtable Chairman Steve Hendrickson congratulate Eddie Coates, the winner of the first annual Oklahoma Business Roundtable Scholarship Award, which ran in conjunction with the in 2008 Donald W. Reynolds Cup Collegiate Business Plan Competition, at the 2008 Donald W. Reynolds Cup Awards Dinner April 24, 2008 at the Bricktown Event Center. (photo courtesy of i2E, Inc.)

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Enviro-Clear Innovations, LLC team member, Stephanie Wayne, presents to a board of judges at the 2008 Donald W. Reynolds Cup Collegiate Business Plan Oral Competition Finals, April 12, 2008. The Oral Competition was held at the Presbyterian Health Foundation. (photo courtesy of i2E, Inc.)

It’s an All-College Competition Open to all, Oklahoma colleges and universities large and small participate in the Governor’s Cup.

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he Governor’s Cup is open to all Oklahoma colleges and universities interested in supporting their entrepreneurial students.

“Meeting students from the smaller universities and rural colleges all over Oklahoma, I have been impressed with the skills, the aptitude, and the entrepreneurial interest they have shown. These students have competed well and made known that our state, from the Panhandle to the Red River, is full of innovative talent,” says Tom Walker, i2E President and CEO. Schools such as Tulsa Community College, Southwestern Oklahoma State University, Oklahoma State University- OKC, and Rogers State University have all submitted business plans, and Walker hopes that more schools across the state will take their lead.

“I think anything that gives students the opportunity to explore their creative side and their potential is worth pursuing,” says Mary Ann Philpott, dean of development workforce programs at TCC. “With this competition, students get to explore a side of themselves they didn’t know before and take some risks.”

Multiple TCC teams have competed

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in the Governor’s Cup since it began five years ago. Though the teams haven’t placed, Philpott says some students have gone on to pursue entrepreneurial opportunities that arose from their business plans. The students have also taken the plans they’ve created and placed in other national competitions.

“Once you take that leap to compete, find mentors in the community and see the opportunity for student growth, you’re spurred to do it over and over again, regardless of those extra hours,” Philpott says. “The mentors are also willing to give that extra time because they see the growth and excitement of the students.”

In fact, TCC has now devoted an honors class that will focus on the competition. TCC Professor Jack Williams leads the students.

Some larger schools may have technology and engineering arms which have reached out and embraced the competition and partnered with students to write business plans on university research and development. This hasn’t hindered smaller universities and colleges where faculty works together with their students to come up with original concepts. Some may even turn to local businesses to find a market need.

Jack Williams, Tulsa Community College professor, guides students through the business planning process.

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Larry McKee, Dobson associate dean at SWOSU, admits that resources are often an issue, but says the process of brainstorming for Governor’s Cup ideas is invaluable.

“It’s certainly a process where the students gain additional team skills and have an opportunity to apply the innovation they came up with as a group,” McKee says.

The SWOSU team competed for the first time this year, and though they didn’t place, McKee plans to lead a group again next year. “We think there is certainly a benefit for our students, and the competition gives them an opportunity for networking,” he says.

“It’s this kind of constant fortitude and ingenuity that has renewed my belief that Oklahoma entrepreneurial spirit is alive and growing in our students,” Walker says.

For example, OSU-OKC finished its fourth endeavor in Spring 2008 with teams in the semi-finals or finals every year.

“Students gain firsthand knowledge about how to put together a business plan and secure financing, as well as learn a lot about teamwork through the process,” says Joe Wilkie, OSU-OKC faculty advisor.

“Just as importantly, they find out what’s going on in their state regarding business development and become aware of the many resources available in Oklahoma.”

Wilkie attributes the school’s Gover-

nor’s Cup successes to brainstorming, grit and determination — not to mention a whole lot of research. Ideas such as selfhealing composite materials for aircraft construction and the transformation of a phone into a heart monitor are just two of the plans his students have generated.

“The competition can be intimidating, but I just take the approach telling my students not to worry about anyone else,” Wilkie says.

Chuck Atkins shares Wilkie’s resolve to remain unintimidated by teams who may have access to university technology. After several years of taking winning teams to the Governor’s Cup at Oral Roberts University, Atkins is now the Governor’s Cup faculty advisor at Rogers State University.

“Given the state of America and the regional industry, it’s very important to have a wellspring of new technological ideas.

Schools should only let gravity hold them back. We’ve shown that if we can meet a need or provide a solution then we can find a way to serve the market,” Atkins says. “Any community can have an idea that can be commercialized and bring a solution.”

Oklahoma has a long history of entrepreneurial ventures, and the Governor’s Cup will continue to carry on this trend in the name of entrepreneurship and Oklahoma economic development.

Ameliorate Composites team member Andrew Spellman, from Oklahoma State University, Oklahoma City campus, explains their business plan for a microcapsule intended to “self repair” microscopic cracks in epoxy-based composite materials to a board of judges at the 2008 Donald W. Reynolds Cup Collegiate Business Plan Oral Competition, April 11, 2008. The Oral Competition was held at the Presbyterian Health Foundation. (photo courtesy of i2E, Inc.)

The Governor’s Cup not only exposes students to real world experiences and enhances their entrepreneurial skills, but it can lead to real jobs in the real world. Here are two stories: Michelle Witt Michelle Witt moved to Oklahoma in pursuit of a Masters degree in Business Administration from the University of Tulsa. She had completed her undergraduate degree and several internships in engineering and decided that she wanted something more.

After a year here, she was halfway through her MBA coursework, had only met a few new people, and had no prospects for a job after school. Then she came across the Governor’s Cup and decided to put her entrepreneurial foot forward. Her decision paid off and her team, RedVault won $10,000 as the 2008 graduate second place winner with their plan for developing a hardware built to encrypt data imaging devices.

“It didn’t take long before my life in Oklahoma changed,” says Witt. “By the end of the competition, I had a large network of respected business leaders and investors and the chance to start my own company. I can honestly say that the Governor’s Cup changed my life and I am proud to tell people about the overwhelming support I have received which speaks volumes about Oklahoma and its commitment to young innovators and entrepreneurs.”

Continued on page 22

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The Entrepreneurial Leadership Program New fellowship program helps start-ups and students.

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arly in 2009, Governor’s Cup winners will have the chance to apply for a new pilot project — the Entrepreneurial Leadership Program, which provides 10-week fellowships for selected winners to work with start-up companies needing the students’ specific business skills. The Greater Oklahoma City Chamber of Commerce and i2E have partnered to fund the program.

The ELP is simply an extension and formalization of the natural development of Governor’s Cup participants building relationships with the investors, community leaders and others during the competition, says Rex Smitherman, i2E’s vice president of strategic development.

“What makes it unique,” he points out, “is that we are matching our best and brightest students with Oklahoma’s startup technology companies and placing them in project-based fellowships such as market assessments, financial modeling, operational analysis and partnering strategies.”

The opportunity is only available to students participating in the Governor’s Cup competition, he says, noting “We did research and found that some other universities’ programs have something similar, but none are matching up individual student business skills with a start-up technology

company needing assistance with critical projects to reach capital milestones.”

During the program’s first year, the highly competitive process will select up to five students and five companies whose skills and needs match. The students chosen will receive compensation amounting to $6,000 for undergraduate students and $8,000 for graduate students. The ELP will cover half the stipend for the 10-week participation period, with the start-up company paying the other half.

The program will serve start-up technology businesses and students with a strong interest in entrepreneurial environments while building a pipeline of entrepreneurs and identifying talent for future hires.

“Some of our most talented students are coming out of the Oklahoma university system… we’d like to keep them in Oklahoma,” says Robin Roberts-Krieger, executive vice president for economic development, Greater Oklahoma City Chamber of Commerce. “There is no better way to learn the transition from the classroom than being able to work directly with a company.” Although the Oklahoma City Chamber is the founding sponsor, Roberts-Krieger says, “We are hopeful others will step up to make it a strong statewide program.”

Judges Larry Grable, with Tomlinson & O’Connell, P.C., William D Paiva, Ph.D., manager, Oklahoma Life Sciences Fund and Michael Carolina, executive director of the Oklahoma Center for the Advancement of Science and Technology, listen intently at the 2008 Donald W. Reynolds Cup Collegiate Business Plan Oral Competition, April 11, 2008. The Oral Competition was held at the Presbyterian Health Foundation. (photo courtesy of i2E, Inc.)

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Robert Kuester “Prior to the Governor’s Cup, I had never seen a business plan outside of a textbook,” says Robert Kuester, 2006 Governor’s Cup competitor.

Kuester explained that with time short and his team being somewhat technology limited, an Ardmore-based high-technology start-up company, Amethyst Research, Inc. (ARI), an i2E client, engaged the team and allowed them to write a business plan based on one of their technologies — the manufacturing of wafers to be used in military and commercial focal plane arrays, which are incorporated into devices such as night-vision goggles, guided missile systems, and other optical and visual systems.

As the competition came to a close, ARI offered Kuester part-time employment in product development while he attended college classes fulltime. Rod has contributed to writing ARI’s business plans and financial projections, marketing efforts, and operations, all skills he honed while competing in the Governors’ Cup competition.

His personal business acumen was further enriched by engaging with i2E as a client under the ARI banner and as a judge for the 2007 and 2008 Governor’s Cup competitions.

Rod has also been instrumental in launching the University of Central Oklahoma’s undergraduate business plan competition.

“Developing an idea into a finished product is no small task,” says Kuester. “Equally important are the quality Governor’s Cup networking opportunities that introduced me to other government and private entities, such as the Oklahoma Center for the Advancement of Science and Technology, the Oklahoma Nanotechnology Initiative, and the Oklahoma Manufacturing Alliance to name a few.”

He continued his business education and is now the Ardmore Operations Manager for Amethyst Research.

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INNOVATION: A Proven Investment in Oklahoma

By Michael Carolina

Michael Carolina, executive director of OCAST

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tay the course, dollar-cost averaging, plan long-term for your investments — are all part of a vast compendium of advice for Oklahomans worried about their retirement savings in these uncertain economic times.

Could these same investment philosophies hold true for our state’s investment in technology and innovation? There is strong evidence that it does.

No sector seems unthreatened by the worldwide recession, but investigation reveals those geographic areas with patient steady investment in their research and development infrastructure seem to be outperforming other areas of the economy. That is not to say they are totally immune from economic concerns; however, traditional centers of innovation are much better positioned to withstand these trying times.

Let’s look at Oklahoma’s investment history. In our first 100 years, there was always investment in innovation, largely through research universities and oil companies. More recently, our leaders encouraged investment in R&D and backed it up with legislative funding for research and technology commercialization. Buoyed by

state investments, private investors stepped up to the plate. Today, more than at any other time in our history, Oklahoma has an established niche in technology and innovation.

We must be bold in our approach and cautious in implementation. By that I mean that a break in the chain of patient, regular investment creates years of disruption in economic growth.

It has only been in recent years the University of Tulsa created its Center for Information Security (ISec). The center’s focus is in concert with the federal homeland security initiative, in fact, placing TU in the forefront of cyber security worldwide.

Businessmen and scientists around the nation are talking about Oklahoma’s biotechnology initiative, much of it centered in Oklahoma City’s Presbyterian Health Foundation Research Park, the Oklahoma Medical Research Foundation and their spin-off companies, in addition to emerging businesses that had their genesis at the University of Oklahoma and Oklahoma State University.

Oklahoma is the state others look to for innovation in aviation and aerospace, advanced materials and energy supported technology. Our early-day leadership in energy production was the catalyst for Oklahoma companies now known worldwide for field support of all types of energy production.

Ardmore has made its own way as a community that welcomes technology-based companies ranging from production of stateof-the-art dental implants to redesigning aircraft interiors. The Noble Foundation is gaining international recognition for its plant science research.

Lawton is home to private firms that support Fort Sill and its R&D needs and the Oklahoma Panhandle is the site of the state’s first field trials for turning switchgrass into energy.

My point is this. It is sound advice to invest long-term, whether it be in your retirement plan or your state’s research and development. That means investing in challenging times as well as the good times. That means we should not break the chain of investment.

Future generations of Oklahomans will be better off for it.

Michael Carolina is executive director of OCAST, the Oklahoma Center for the Advancement of Science and Technology.

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P a r t n e r s P a r t n e r s

i2E: Turning Innovation into Enterprise

www.i2E.org

Our programs and services are possible because of the financial and in-kind support of our partners. These valued organizations are dedicated to the advancement of science and technology in our state and are strongly committed to Oklahoma’s prosperous economic future.

i2E SERVICES: Our services are designed to assist researchers and entrepreneurs in turning their innovations into exceptional home-grown business opportunities.

We do this by: • Providing hands-on product, market and business expertise designed to accelerate commercialization activities.

• Attracting and investing risk capital in advanced technology-based businesses.

• Promoting an innovation based economy and home-grown economic development. i2E delivers services statewide through operations in Oklahoma City and Tulsa. In 10 years of serving Oklahoma, 25% of the companies have been from rural Oklahoma and nearly 45% have been from areas outside of Oklahoma City and Tulsa.

Oklahoma Center for the Advancement of Science and Technology

www.ocast.state.ok.us

As the state’s only agency whose sole focus is technology, OCAST is a small, high-impact agency funded by state appropriations and governed by a board of directors with members from both the private and public sector.

OCAST works in partnership with the private sector, higher education, CareerTech and the Oklahoma Department of Commerce.

Mission: To foster innovation in existing and developing businesses by supporting basic and applied research

and facilitating technology transfer between research laboratories and firms and farms, as well as providing seed capital for new innovative firms and their products and fostering enhanced competitiveness in the national and international markets by small and medium-sized manufacturing firms in Oklahoma by stimulating productivity and modernization of such firms.

OCAST Statewide Programs: Oklahoma Applied Research Support (OARS)

OCAST Inventors Assistance Service (IAS)

Oklahoma Health Research Program

OCAST Technology Business Finance Program (TBFP)

Oklahoma Nanotechnology Applications Project (ONAP)

Oklahoma Alliance for Manufacturing Excellence (The Alliance)

Plant Science Research Program

Oklahoma Technology Commercialization Center (OTCC)

R&D Intern Partnership Program

Oklahoma Seed Capital Fund (OSCF)

Small Business Research Assistance Program (SBIR/STTR)

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Oklahoma Alliance for Manufacturing Excellence, Inc.

www.okalliance.com

The Alliance is a not-for-profit organization providing a variety of support to Oklahoma industry. Through a network of Manufacturing Extension Agents and Applications Engineers, they provide hands-on resources for improving productivity, increasing sales, and reducing costs.

Mission: To provide strategic assistance to Oklahoma manufacturers to help them become successful innovators in the global marketplace.

The Oklahoma Experimental Program to Stimulate Competitive Research

Oklahoma

www.okepscor.org

Oklahoma EPSCoR’s central goal is to increase the state’s research competitiveness through strategic support of research instruments and facilities, research collaborations, and integrated education and research programs.

They are funded through a three-year (FY2005-2008) $6M national Science Foundation Research Infra-Structure Improvement Grant matched by an additional $3M from the Oklahoma State Regents for Higher Education.

Mission: To contribute to sustainable research infrastructure with the purpose of preparing the state to compete nationally for large research center grants and form partnerships with business and industry.

Greater Oklahoma City Chamber of Commerce

www.okcchamber.com

The Greater Oklahoma City Chamber of Commerce works to create value-added membership opportunities and a business climate that attracts new businesses and enhances growth and expansion opportunities for existing business.

Mission: The Greater Oklahoma City Chamber is the voice of Business and the visionary organization in

Oklahoma City. Their goals are (1) To create a business climate that attracts new businesses and enhances growth and expansion opportunities for existing businesses, (2) To create a community with an irresistible quality of life and (3) To create value-added membership opportunities and benefits.

The Donald W. Reynolds Foundation

www.dwreynolds.org

The Foundation is a national philanthropic organization founded in 1954 by the late media entrepreneur | for whom it is named. Headquartered in Las Vegas, Nevada, it is one of the 50 largest private foundations in the United States.

Mission: The Foundation seeks to honor the memory of its benefactor by filling unmet needs and attempting

to gain an immediate, transformational impact of communities in Arkansas, Nevada and Oklahoma. In pursuing its goals, the Foundation is committed to the support of nonprofit organizations and institutions that demonstrate sound financial management, efficient operation, program integrity and an entrepreneurial spirit. In accordance with its articles of incorporation, the Foundation will cease to exist on or before June 30, 2044.

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E LUNCHEON SERIES

As a part of i2E’s efforts to promote Oklahoma’s innovation economy and growing entrepreneur sector, the iNNOVATORS &ENTREPRENEURS luncheon series is designed to help facilitate and promote technology commercialization and economic development. The events are presented by the Oklahoma Technology Commercialization Center and sponsored by the Greater Oklahoma City Chamber of Commerce and the Oklahoma Bioscience Association.

JANUARY Jan 6 OCAST R&D Workshop – Lawton Jan 8 OCAST R&D Workshop – Tulsa Jan 13 OCAST OHR Workshop – Stillwater

TECH NIGHT OUT NETWORKING RECEPTIONS These free receptions bring together over 150 entrepreneurs, investors, community leaders and service professionals to network and build relationships to increase and strengthen the economic development momentum in Oklahoma. These events are hosted in both OKC and Tulsa.

Jan 15 OCAST OHR Workshop – Norman Jan 20 OCAST OHR Workshop – Tulsa Jan 20 The Tulsa Metro Chamber Annual Meeting Jan 22 OCAST OHR Workshop – OKC

THE DONALD W. REYNOLDS GOVERNOR’S CUP With one of the largest cash awards in America, the Governor’s Cup collegiate statewide business plan competition is designed to encourage students of Oklahoma universities and colleges to act upon their ideas and talents in order to produce tomorrow’s businesses.

Student teams and their faculty advisors will compete in undergraduate and graduate divisions for cash prizes valued in excess of $100,000.

The competition provides students with access to networks of successful entrepreneurs, investors, team-building opportunities and business planning skills. Contact Sarah Seagraves, at 405-813-2403 or by email at sseagraves@i2E.org.

Jan 22 Tech Night Out Oklahoma City Jan 28 Greater OKC Chamber Legislative Breakfast Jan 29 The Tulsa Metro Chamber Legislative Reception

FEBRUARY Feb 12 The Tulsa Metro Chamber Business Afterhours

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Feb 18 i&E Luncheon Tulsa Feb 19 Tech Night Out Tulsa Feb 24 Greater OKC Chamber Greater Grads Career Fair

MARCH March 10 The Tulsa Metro Chamber Breakfast Networking Series March 18 i&E Luncheon Oklahoma City

APRIL April 3 Tech Night Out TBD April 14 Governor’s Cup Awards Dinner Oklahoma City April 22 i&E Luncheon Tulsa

MAY May 12 The Tulsa Metro Chamber Breakfast Network Series June 17 i&E Luncheon Oklahoma City

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OCAST EVENTS & DEADLINES The Oklahoma Health Research Program (OHR) funds projects for one to three years at a maximum level of $45,000 per year. Eligible applicants are Oklahoma universities and colleges, non-profit research foundations and commercial enterprises in Oklahoma. Proposal preparation workshops are presented to assist applicants. Scientists and engineers who are within four years of establishing their Oklahoma research presence are eligible for a maximum funding level of $100,000 per year. Contact Michelle McFarland at 405-319-8408 or email mmcfarland@ocast.

state.ok.us.

The Oklahoma Plant Sciences Research (OPSR) program supports basic and applied research in the field of plant sciences by allocating resources according to merit, promoting collaborations and leveraging federal and private resources.

Eligible applicants include Oklahoma scientists who conduct basic and applied research in the field of plant sciences. Applications will undergo peer review and funds will be awarded based on scientific merit, collaborative effort and the leverage of federal and private funds. A dollar-for-dollar match is required for the applied applications. Contact Jessica Vinson at 405-813-2412 or email

jvinson@ocast.state.ok.us.

The Oklahoma Nanotechnology Applications Project (ONAP) assists qualified Oklahoma companies with the process of applying nanotechnology through development and manufacturing to improve current products or processes or create new, cutting-edge products or processes. Eligible applicants include Oklahoma businesses, Oklahoma colleges and universities. Contact Jessica Vinson at 405-813-2412 or email jvinson@ocast.

state.ok.us.

The R&D Intern Partnerships (RDIP) program supports internships between local industries and two and four year colleges and universities. Eligible applicants include Oklahoma public or private colleges or universities, non-profit research foundations and private enterprises - a firm with its principal place of business in Oklahoma. Contact Michelle McFarland at 405-319-8408 or email mmcfarland@ocast.state.ok.us, or Arnie Hagen at 405326-4675 or email at aphagen@ocast.state.ok.us.

The Oklahoma Applied Research Support (OARS) program helps universities, foundations and businesses fund cutting-edge research that will benefit Oklahoma’s economy.

Eligible applicants include Oklahoma public or private colleges or universities, non-profit research foundations and private enterprises - a firm with its principal place of business in Oklahoma. Contact Michelle McFarland at 405-319-8408 or email mmcfarland@

ocast.state.ok.us.

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