2012 Community Report
what’s next?
What’s next? No one really knows what tomorrow holds, but we’re fortunate enough to catch glimpses of what lies ahead through our work with startups. At this very minute, entrepreneurs are creating exciting new companies and hundreds of new jobs while commercializing cutting-edge technologies, developing life-saving medical advancements and solving complex environmental issues. By helping promising entrepreneurs perfect their pitch, Ray T. Leach | CEO
obtain a mentor, access their first institutional capital, secure a client or recruit key hires, JumpStart is investing in companies that will grow to enhance Northeast Ohio’s economic vitality. We thank our supporters for providing young companies with the resources they need to succeed, and for giving our next generation of leaders their best shot at both transforming the regional economy and changing the way the world lives, works and plays.
Mark Williams | Board Chair
Ray T. Leach | CEO
Mark Williams | Board Chair
Table of contents Stories of JumpStart Client Companies
Cleantech
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ADAP Nanotech 2/3 Phycal 4/5 Healthcare
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Cervilenz Inc. 8/9 SironRX Therapeutics 10/11
Information Technology
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Enforcer eCoaching 14/15 Amvonet 16/17
Business & Consumer Products & Services
Support, Recognition & Progress
18/19
Donors & Board
20/21
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JumpStart support began in 2009
Sunny Sethi, Ph.D. ADAP Nanotech | Executive Director & CTO
Taking a cue from nature, ADAP Nanotech makes dry, thermally conductive adhesives inspired by the structure of a gecko’s foot. This material is expected to be incorporated as a cooling mechanism in heat-generating electronic components found inside items such as smart phones and computers.
“Carbon nanotube-based adhesive . . . it’s a cool technology, and it has received a lot of attention. ADAP Nanotech makes thermally conductive adhesives that will allow electronics manufacturers to build faster, smaller and less expensive electronic components. Our goal is to capture a large part of the thermally conductive tape market. We are starting to ramp up production and, with the help of our advisors and our network, we are trying to form some strategic alliances with manufacturers and users of our material.” -sunnysethi
Heralded as one of the top 10 university startups in the 2011 University TechWatch Startup Report, ADAP Nanotech grew out of research at the University of Akron. The company, which has received business assistance from regional resources such as JumpStart, University of Akron Research Foundation and Akron Global Business Accelerator, was nominated for a 2012 Global Cleantech Cluster Association Later Stage Award.
the story continues at jumpstartinc.org/annualreport
ADAP Nanotech | Cleantech
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Phycal develops the biology, technology and projects to produce innovative, advanced and renewable biofuels from alternative high-yield crops such as algae and cassava. These biofuels will increase the country’s energy security and assist in the reduction of greenhouse gas emissions.
“The reason that folks keep returning to reliance on fossil fuels is because these fuels are really, really efficient. To me, it seems like inexpensive energy underwrites most of our lifestyle. Entrepreneurs need to develop renewable fuels that compete on cost, and that’s what we’re working to do. Eventually, Phycal will build many projects in many geographies, but our R&D facility will always be located in Northeast Ohio. There is deep energy and process expertise in the region and we’ve built a great group of people with a great culture.” -J.KevinBerner
Bloomberg Businessweek named Phycal one of the world’s most intriguing startups, just one of many bioenergy innovator lists on which it has appeared. In a competitive process, The Department of Energy selected Phycal for a $51 million contract, allowing the company to build and operate a demonstration-scale algae farm.
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Phycal | Cleantech
the story continues at jumpstartinc.org/annualreport
JumpStart support began in 2006
J. Kevin Berner Phycal | President & CEO
Clean tech By creating innovative technologies and processes that capitalize on the region’s manufacturing strengths while conserving and reusing valuable resources, JumpStart cleantech clients are getting global recognition. CNBC showcased the game-changing potential of industrial waste heat recovery systems built by
Echogen Power Systems. Strategic News Service selected MAR Systems, whose affordable, eco-friendly solutions remove heavy-metal contaminants from water, for world promotion through its FiReStarters program. The New York Times highlighted how ABSMaterials’ water-cleaning technology Osorb® could reduce waste byproducts produced by fracking, while company co-founder and chief science officer Dr. Paul Edmiston received Popular Mechanics’ Breakthrough Award. And nanotechnology materials science company Mesocoat and its CermaClad™ metal coating took top honors in The Wall Street Journal’s 2012 Technology Innovation Awards.
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Despite a tough healthcare fundraising environment nationally, JumpStart companies are managing to attract attention and significant dollars from investors across the country. Companies developing healthcare-related technologies accounted for 61 percent of the equity capital raised in Northeast Ohio over the last five years. In 2012, CardioInsight Technologies, developer of non-invasive electrocardiographic mapping technology, closed $7.5 million in Series C financing. Neuros Medical, whose patented Electrical Nerve Block™ technology is focused on chronic pain elimination, announced a $3.5 million funding round. And Juventas Therapeutics closed a $22.2 million Series B investment round, allowing the company to complete Phase 2 clinical trials of regenerative medicine treatments for both chronic heart failure and critical limb ischemia.
health 7
JumpStart support began in 2008
Dean Koch Cervilenz Inc. | President & CEO
Rosalyn Baxter-Jones, MD Cervilenz Inc. | Inventor
Cervilenz Inc. manufactures and markets a simple, low-cost medical device that measures cervical length. This measurement helps identify those pregnant women who might be at high risk for preterm birth, so preventative treatments can be administered in a timely fashion.
“I knew if a patient was having contractions and I ordered an ultrasound to measure the length of her cervix to determine if she was at risk for preterm birth, it would take two days. I thought, ‘Why can’t I get a measurement and an answer right now?’ Once I created a solution, I wanted to be sure it was available for all obstetricians.” -RosalynBaxter-JonesMD
“While the biggest challenge for any startup is access to capital, we’ve been able to raise capital by telling the story of prematurity, of our device and of reducing the risk of preterm birth worldwide. Now the biggest challenge we face is educating people on a very big issue as a small company without a lot of resources to do that.” -DeanKoch
Cervilenz Inc. received a CE Mark and ISO 13485 Certification for its CerviLenz® device and added to its already robust patent portfolio in 2011. It was one of five biomedical companies whose products toured the country as part of the “Make It In America” exhibit, which highlighted innovative, U.S.-manufactured items.
the story continues at jumpstartinc.org/annualreport
Cervilenz Inc. | Healthcare
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SironRX Therapeutics is developing novel therapies to speed up dermal wound healing and prevent scar formation.
“What appeals to me about being part of a healthcare startup is the ability to work on a technology that has the opportunity to transform the way medicine is practiced . . . But we could not do that without the capital we need to continue to grow. The support SironRX has been given from the angel community is nothing short of astonishing. One thing this region has that a lot of other regions trying to advance their biotechnology corporations don’t is access to early stage capital. We do that really well here in Ohio and, specifically, in Northeast Ohio.” -EvanFacher
SironRX Therapeutics received a $1 million grant from Ohio’s Third Frontier technology support program and raised nearly $3.5 million more from angels and early stage venture capital, including a $250,000 JumpStart investment. In 2012, the regenerative medicine company treated its first patient in a human clinical study.
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SironRX Therapeutics | Healthcare
the story continues at jumpstartinc.org/annualreport
JumpStart support began in 2010
Evan Facher, Ph.D. SironRX Therapeutics | President & CEO
b ation i InformC ation s tech JumpStart’s diverse information technology companies produce cutting-edge solutions that attract big-name partners and increase customer satisfaction.
Along with big brand names such as Canon, Fender and Oreck, direct digital marketing software and services company
Knotice counts eight of the nation’s top cable companies as clients. PreEmptive Solutions, a software company specializing in application protection and analytics solutions, provided exception analytics in Microsoft Visual Studio 2012. Software company OnShift unveiled Staff Exact, an acuity-based program that identifies precise staffing
requirements at long-term care and senior living facilities. And marketing technology company Segmint is
driving the digital analytics for a new INDYCAR Discover credit card program.
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&
bus iness mCon sumer Whether reporting on a niche industry or finding better solutions for common household concerns, JumpStart clients reach their target markets and generate revenues.
Wireless Environment’s energy-efficient, wireless LED lights are top sellers on Amazon.com. Still, the company reaches consumers and hones its business-to-consumer strategy via the use of crowdfunding and social media. MedCity Media shares healthcare and life sciences information on its daily news website, and then gathers innovators in those fields at offline events, diversifying its revenue stream and audience. Embrace Pet
Insurance, which has insured 20,000 pets through its customizable product, stresses the importance of developing trust and community with its clients, making it an industry thought leader.
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JumpStart support began in 2011
Marty Butler Enforcer eCoaching | President & CEO
Enforcer eCoaching is a health-coaching company offering a series of email-based, personalized wellness programs based on methodology developed by Cleveland Clinic’s Dr. Michael Roizen over 25 years. By encouraging employees to make healthier daily choices, Enforcer eCoaching gives employers a valuable tool to reduce healthcare costs.
“It’s great growing a company in such a big industry. We don’t have to explain to a customer why wellness is important; they already know. Our challenge is communicating why we’re different, which we do largely through our outcomes. Companies in our target market—large, self-insured employers—are frustrated with how much they are paying for employee healthcare and their lack of success with other wellness programs. They are looking for a solution that works, and we have that solution. In the future, when people think of losing weight, quitting smoking, managing chronic conditions or living healthier, I’d like them to think of Enforcer eCoaching first.” -MartyButler
Enforcer eCoaching’s program has helped more than 1,000 participants move and become healthier, and this number keeps rising. With JumpStart’s assistance, the startup recently found and hired its first salesperson, who is already helping generate revenue and facilitate growth.
the story continues at jumpstartinc.org/annualreport
Enforcer eCoaching | Information Technology
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AMVONET is a comprehensive, integrated software suite consisting of an e-learning management system, a live web-conferencing and virtual classroom solution, and a content-authoring application. This could make education more accessible to all.
“The idea for AMVONET originated when [my father] was a college professor. He asked me to create a prototype of an application because he wanted to teach students throughout the world. We showed our idea to a few people and our current partners were interested. And that’s how the solution began—with a simple prototype and initial seed funding.” -NikitaEelen
“The use of digital technology [is transforming] education. We offer a comprehensive solution that provides everything demanded by the 21st century’s educational process. [My son Nikita and I] believe AMVONET is a vehicle that can deliver affordable, high-quality education to every household.” -vadimEelen Buckeye Online School for Success, a public online K-12 school in East Liverpool, Ohio, was an early adopter of AMVONET and eventually became a partner who helped the company test and develop new functionalities. AMVONET, which has received business support and advice from JumpStart, currently has clients in nine countries.
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Amvonet | Information Technology
the story continues at jumpstartinc.org/annualreport
JumpStart support began in 2012
Nikita Eelen Vadim Eelen AMVONET | President, Co-Founder & CEO
AMVONET | Co-Founder & Vice President, Research & Operations
Organizational Support: Sources&Uses (7.1.2004-6.30.2012) Sources of Funds
(over 8 years)
$70.6m $24.8M Foundations
Recent Recognition
$31.1M State of Ohio
$.9M
JumpStart received the Gold Excellence in Economic Development Award for Entrepreneurship from the International Economic Development Council
Investment Returns
$1.9M
CEO Ray Leach was recognized as 2012 Ernst & Young Entrepreneur of the Year Northeast Ohio in the category of Financial and Business Advisory Services Richard “Duke” Jankura won the CFO of the Year Award from Crain’s Cleveland Business JumpStart Entrepreneur-in-Residence Vinny Gupta was honored with a Community Partners Award at the 2012 TiE International Entrepreneur Awards Cleveland was announced as a Goldman Sachs 10,000 Small Businesses location with Cuyahoga Community College, JumpStart, COSE, the Northeast Ohio Hispanic Chamber of Commerce and Urban League of Greater Cleveland as outreach partners
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$4.6M $7.3M
Uses of Funds (over 8 years)
$4.4M
Federal
Individuals & Program Fees Corporations
$70.6m
working with entrepreneurial ecosystems across the country
91%
of funds designated for Northeast Ohio directly benefit entrepreneurs
$5.7M
operations
$23.8M
funds invested directly into early stage companies
$36.7M
providing intense assistance and access to resources
Progress (7.1.2004-6.30.2012) unless otherwise noted
JumpStart supports entrepreneurs building fast growing, competitive companies that could go on to contribute significantly to the regional economy. Our progress is measured largely by the progress of our clients—their ability to raise capital, generate revenue and create jobs.
Capital
495M
69
71%
follow-on capital raised by JumpStart client companies ($256M in FY2011
number of JumpStart client companies that individually raised $1M+ in additional outside investment
portion of all venture dollars in Northeast Ohio that went to companies assisted by JumpStart or one of our partners (2005-2011)
$
and FY2012 alone)
Jobs
65k per year
$
2,740 jobs created and retained by JumpStart client companies (1,436 direct)
reported average salary for jobs created by JumpStart client companies in 2011
330 new hires and board members JumpStart has helped to place at Northeast Ohio startups since 2010
Impact
761 direct jobs created and retained by minority- and women-owned, and inner-city client companies
220M
$
economic benefit generated by 121 JumpStart clients in 2011, according to a Cleveland State University report
95M
$
revenue collectively generated by JumpStart client companies in 2011 alone
Reach
425 client companies that have received business assistance and/or funding from JumpStart
26M
642
seed stage dollars JumpStart has committed to 65 Northeast Ohio startups
hours donated by 31 JumpStart mentors to guide the growth of 22 young companies since March 2012
$
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Board of directors
Donor Community The Abington Foundation
Huntington Bank
An Anonymous Northeast Ohio Family
JobsOhio
Dr. Jacqueline Acho
Baker Hostetler
Jones Day
Mr. Philip Alexander
Calfee, Halter and Griswold
The Katherine and Lee Chilcote Foundation
Ms. Barbara Brown
The Charter One Foundation
The Lincoln Electric Foundation
Ms. Lauren Rich Fine, CFA
The David and Lindsay Morgenthaler Foundation
The Nord Family Foundation
Mr. Larry Goddard
Dix & Eaton
The Parker Hannifin Foundation
Mr. Jack Harley
Dollar Bank
The Raymond John Wean Foundation
Mr. Jim Hickey
The Dominion Foundation
Squire, Sanders & Dempsey
Mr. Jeff Hoffman
Eaton Charitable Fund
STERIS
Mr. Bob Hurwitz
Ernst & Young
The Summers Family Foundation
Dr. Joseph Jankowski
The Ewing Marion Kauffman Foundation
Third Federal Foundation
Dr. Eric Anthony Johnson
Fifth Third Bank
Thompson Hine LLP
Mr. Ray T. Leach
The GAR Foundation
Ulmer & Berne LLP
Ms. Carmen Ortiz-McGhee
The George W. Codrington Foundation
The U.S. Small Business Administration
Ms. Amy Millman
Geis Companies
The William J. and Dorothy K. O’Neill Foundation
Ms. Lee Nielsen
Goldman Sachs Foundation
Mr. Mark Williams Board Chair
Dr. Frank Papay Mr. Patrick Pastore Mr. Gary S. Shamis, CPA, M. Acc.
JumpStart gratefully acknowledges 100 percent participation of its board of directors and associates in financially supporting the organization.
Dr. Rachel Talton Mr. Todd R. Teter
In Northeast Ohio, JumpStart is part of a robust network of entrepreneurial resource providers.
Mr. Steve Walling
We would like to recognize our current partners in Ohio Third Frontier’s Entrepreneurial
Mr. Leonard D. Young
Signature Program: Akron Global Business Accelerator, BioEnterprise, Braintree Business
Observers Ms. Rebecca O. Bagley Ms. Deborah Hoover
Development Center, Great Lakes Innovation and Development Enterprise (GLIDE), Manufacturing Advocacy and Growth Network (MAGNET), Ohio Aerospace Institute and Youngstown Business Incubator. We also welcome our newest collaborators: Austen
Ms. Shilpa Kedar
BioInnovation Institute in Akron, Bizdom, Northeast Ohio Medical University (NEOMED),
Mr. David Morgenthaler
NorTech, Shaker LaunchHouse, The Tech Belt Energy Innovation Center, TECHudson, University
Mr. Chris Schmid*
of Akron Research Foundation and Akron Regional Change Angels (ARCHAngels) Network.
Mr. William R. Seelbach Mr. Doug Weintraub, CPA* Ohio Development Services Agency Representative * Former Board Chair
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Without the exceptional support of our public, private and philanthropic partners, we would not be able to help innovators, such as those highlighted in this report, access the resources they need to grow their tech-based companies. We appreciate our donor community’s commitment to accelerating entrepreneurial successes today in order to create a new tomorrow.
Leadership Donors
Ohio Third Frontier is an internationally recognized technology-based economic development initiative that is successfully changing the trajectory of Ohio’s economy. The $2.3 billion initiative supports existing industries that are transforming themselves with new, globally competitive products and fostering the formation and attraction of new companies in emerging industry sectors. Ohio Third Frontier provides funding to Ohio technology-based companies, universities, nonprofit research institutions and other organizations to create new technology-based products, companies, industries and jobs.
Fund for Our Economic Future
The Fred A. Lennon Charitable Trust
The Burton D. Morgan Foundation
Greater Cleveland Partnership and COSE
The Cleveland Foundation
The John S. and James L. Knight Foundation
The Donald and Alice Noble Foundation
KeyBank Foundation
The Economic Development Administration of the U.S. Department of Commerce
PNC Foundation
The FirstEnergy Foundation Forest City Enterprises Charitable Foundation
The Richard J. Fasenmyer Foundation Surdna Foundation
Contributors photos by laura webb | writing by annie zaleski & samantha fryberger | design by meg lalley icons courtesy of the noun project
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6701 Carnegie Avenue, Suite 100 | Cleveland, OH 44103 www.jumpstartinc.org | @jumpstartinc