Company profile: Starborn Solutions
June 29, 2009
After being on vacation and off the grid, I am back and have some new companies to profile.
Starborn Solutions is a startup founded by Randy Lynn. Randy is an IBM guy who has built an impressive team and is taking on the challenge of e-medical records for the home health industry. Randy spoke to me about his startup.
What is your company’s 30 second elevator pitch?
An average per day cost for a hospital stay is above $5,000. An average per visit cost for a home health visit is about $130. Whether it is privately or federally funded, home health will remain and will likely grow as a priority contributor to the complete health care team.
Starborn, recognizing this trend, and cost savings in the delivery of health care has studied, analyzed and concluded that the software and services are as much as twenty years behind where they could be for home health. There are certain operating characteristics of home health that are challenges unlike any other health care setting, yet at the same time it is those characteristics that offer an opportunity to drive efficiency, and move the quality of care beyond what only a few years ago was even thought possible.
We need to implement applications that filter data so that it becomes information, that transform information into knowledge, and that ultimately provide clinicians with wisdom based on that knowledge exactly when they need it. The existing software and systems were conceived and built decades ago. Not only do the agencies need us, the patients need us; now more than ever is there an opportunity to affect not only the bottom line, but the quality of life.
That is what drives us; the knowledge we can apply our technical skills to drive positive outcomes for the patient.
What has been your company’s funding & growth so far?
We are applying our software design and development experience, to the business domain of Home Health driving our software architecture and technical prototypes. The team is 9 strong right now, with the expectation to grow according to adoption of our product and processes in the home health industry. We are prototyping our first-generation products and services while developing customer relationships. Many have given advice, and the common thread is the importance of engaging your potential customers in the collaboration in design and validation of your product and services.
We have been approved for a Kentucky Enterprise Fund investment and We have made numerous presentations to various investment groups. Times have changed for the technical startup especially one built on software. Gone are the days of multi-million dollar budgets. It is our minds and ideas that are of the most value and the capital investment costs represent the time in exchange for our full-time effort. In that regard, we’re fortunate to be able to move our ideas forward with lower costs than other types of services or products, we could be and likely are, the traditional garage-startup (think Apple, Google and Microsoft).
What is the outlook for your business in the next eighteen months?
Starborn is focused on building customer relationships, building a technical prototype and then ultimately going through a BETA cycle with several customers. We cannot afford an extended development cycle and to that extent we’re focused on solving the most pressing need for home health. That is important; identifying the most pressing need and providing an economical solution. It is not enough to just be cost comparable, or even save a few dollars. You have to demonstrate substantial value – and when it comes to health care, you have to demonstrate an improvement in the quality of care.
What attracted you to entrepreneurship?
I believe in our product, I believe in our talent, and I believe in the future of home health. More importantly I love the idea that I can apply a passion of computers and software design and have a positive impact on a patient’s life.
So many business applications are just an abstract interface, a cog in a giant wheel. It’s difficult to recognize your value, assess your contributions to the world. It is a bit esoteric, but I think it is a characteristic of creative individuals to create not for the sake of making money, but for the sake of creation itself. It just so happens, that in this case our talent, passions and the market needs are aligned.
What have been the advantages and disadvantages of starting a high tech business in Kentucky?
One of our unique challenges is our distributed team. We have partners that live in Texas, Illinois, and Virginia complicating the design and prototyping ; but not an obstacle we cannot overcome. That is a unique challenge for our company that would exist regardless of the state we were incorporated in.
There is money in Kentucky, and there is talent; our challenge is embracing the risk/reward nature of entrepreneurship and connecting the two parties. It is more than a marketing campaign, it is more than an ordinance, legislation or an economic campaign; you cannot just create some innovation center, or business incubator. Some may remember the Silicon Central Conference started back in 2000. That conference is a classic example of the history of technology in Lexington and our efforts to not only garner local support, but advertise to the nation that we are building an innovators Mecca. We are building a culture that fosters, cultivates and expects innovation, and creativity. We have come a long way, and have a long way to go, but the first steps were taken many years ago.
IdeaFestival 2009
June 19, 2009
The schedule of speakers and agenda is out for the IdeaFestival 2009 to be held in Louisville. The biggest celeberity speaker will be chef, author and television personality Anthony Bourdain. Other speakers of note include:
Moria Gunn of NPR’s TechNation & Biotech Nation
Daniel Roth with Wired Magazine
Marc Yu- Music prodigy
The full agenda is here
Order Tickets here
Also check out dinner under the stars
Company profile: Alltranz
June 16, 2009
AllTranz is a Pharmaceutical startup based in Lexington. Audra Stinchcomb is a professor at UK and is the founder.
What is your 30 second elevator pitch?
AllTranz will be a leader in the development of innovative pharmaceutical products delivered via unique dermal solutions to treat a variety of neuroscience disorders. AllTranz leverages proprietary technology to modify existing chemical entities with proven clinical outcomes to produce important new pharmaceutical products that extend patent franchises.
What Stage of development are you at? what do the next 12-18 months look like?
In order to take the lead product through Phase II Clinical Trials in 2011, the Company anticipates a total funding of approximately $20 million. We believe that the Company will have a range of exit opportunities after it attains seminal milestones, such as completion of Phase II Clinical Trials, post the $20 million investment. With a pipeline of innovative products, we believe that AllTranz will have a range of exit opportunities, including potential licensing, partnering or an IPO, as well as the revenue stream generated through the launch of the lead product in 2015. The total financing sought at this time is $8 to $10 million dollars in order to complete the lead product Phase I Clinical Trial and move two other products through preclinical toxicology testing.
What funding/growth have you had to date?
We have raised over $1.2 million from the Bluegrass Angels, Kentucky Seed capital fund, Commonwealth seed fund and others. Our lead product is a proprietary synthetic cannabinoid for moderate to severe pain delivered via gel. The initial indication for the lead product is for the treatment of osteoarthritis.
Scott Shane on Angel Investing
June 11, 2009
I am a fan of Scott Shane and his research. His Book Fool’s Gold?: The Truth Behind Angel Investing in America (Financial Management Association Survey and Synthesis Series)
The stereotype of the “angel investor” is a retired wealthy entrepreneur who sees potential, asks tough questions, takes a large stake, and in a few years makes a massive return in an IPO. This outsider fills the gap between the venture capitalist and the professional investor, swooping in with cash and expertise to bring dreams to fruition.
Unfortunately, Shane observes, this figure bears no relationship to reality. In Fool’s Gold , he draws on hard data from the Federal Reserve and other sources to paint the first reliable group portrait of the lionized angel investors. Surprisingly, he finds that they are fewer, contribute less, and involve themselves in fewer start-ups than the conventional wisdom suggests. Most angels typically still have their day jobs, make investments of $10,000 or less, and take little or no role in assisting entrepreneurs build their companies. Few of the companies they put money into arrive at IPOs, let alone massive returns. But angels can play a critical role, he writes, if the fantasy is abandoned by all concerned. Drawing on his rich store of data, Shane offers recommendations to entrepreneurs and angels alike for the most productive use of angel investing, and suggests how policymakers can encourage it. Particularly promising are angel groups, which pool knowledge and money for wiser and more productive investments. In groups, angels can rely on each other’s expertise, share the labor of performing due diligence, and generally insure that their money is being placed–and used–wisely. Fostering the formation of such groups may be the single most important thing that government can do to boost angel investing.
Shane’s research focuses on angel investing and entrepreneurship through the broad brush, however, his books should be required reading for policy makers.
Has the US had an innovation shortfall?
June 8, 2009
BusinessWeek thinks so, writing in their cover story this past week. You could also see signs that perhaps innovation is on the cusp of rebounding if you believe their premise. I think in general people underestimate how much time, money and effort goes into creating the next wave of technological innovation and that is why they posit that the US is losing its’ place as the world’s innovator. In the Biotech space in particular, discoveries take years to find and many more years to exploit and consume large volumes of cash. Because of the risk involved, the government has been the primary funding source for the basic innovations and then VC’s and larger companies come in and provide the capital for commercialization. This process has not been successfully matched in any other country and is likely the key to our future success economically.
The next Silicon Valley is…
June 4, 2009
Not Louisville, Lexington or anywhere in Kentucky for that matter according to the Milken Institute. The survey looked at high-tech employment overall including Biotech. An example is Lexington, KY is ranked 10th nationally in computer peripheral manufacturing, obviously because of Lexmark. You have to register to view the full report
The top 50 ranked metros in US & Canada are as follows:
Total high-tech results* Top fifty ranked by 2007 tech pole scores
(Current rank 2003 rank Metro area Employment (thousands) LQ Share of North American wages Tech pole scores)
1 1 San Jose-Sunnyvale-Santa Clara, CA 244.0 4.6 5.7% 100.0
2 3 Seattle-Bellevue-Everett, WA 226.3 2.7 3.2% 46.4
3 2 Cambridge-Newton-Framingham, MA 163.6 3.4 2.8% 45.2
4 5 Washington-Arlington-Alexandria, DC-VA-MD-WV 275.7 2.0 4.2% 41.8
5 4 Los Angeles-Long Beach-Glendale, CA 376.4 1.6 4.2% 40.2
6 6 Dallas-Plano-Irving, TX 187.7 1.5 2.4% 21.8
7 7 San Diego-Carlsbad-San Marcos, CA 136.4 1.8 2.0% 19.3
8 11 Santa Ana-Anaheim-Irvine, CA 147.0 1.7 1.6% 17.7
9 9 New York-White Plains-Wayne, NY-NJ 262.0 0.9 3.9% 16.8
10 8 San Francisco-San Mateo-Redwood City, CA 106.4 1.8 2.0% 16.1
11 13 Philadelphia, PA 145.4 1.3 1.9% 14.4
12 12 Atlanta-Sandy Springs-Marietta, GA 164.1 1.1 1.9% 14.0
13 10 Edison, NJ 103.5 1.7 1.5% 13.9
14 14 Chicago-Naperville-Joliet, IL 200.0 0.9 2.5% 13.3
15 25 Toronto, ON 157.4 1.1 1.3% 12.5
16 15 Oakland-Fremont-Hayward, CA 98.0 1.6 1.4% 12.1
17 18 Minneapolis-St. Paul-Bloomington, MN-WI 131.0 1.2 1.5% 11.9
18 17 Denver-Aurora, CO 107.5 1.5 1.3% 11.9
19 27 Montreal, QC 128.2 1.3 1.0% 11.8
20 16 Austin-Round Rock, TX 81.5 1.8 1.1% 11.6
21 21 Houston-Sugar Land-Baytown, TX 151.7 1.0 1.9% 11.6
22 29 Huntsville, AL 42.5 3.5 0.4% 10.5
23 20 Phoenix-Mesa-Scottsdale, AZ 124.9 1.1 1.4% 10.4
24 31 Wichita, KS 50.6 2.9 0.5% 10.3
25 23 Bethesda-Gaithersburg-Frederick, MD 67.8 2.0 0.9% 10.2
26 24 Durham, NC 44.4 2.6 0.7% 9.7
27 28 Portland-Vancouver-Beaverton, OR-WA 88.1 1.5 1.0% 9.6
28 19 Boulder, CO 34.0 3.5 0.5% 9.3
29 26 Newark-Union, NJ-PA 84.9 1.4 1.3% 9.3
30 22 Warren-Farmington Hills-Troy, MI 90.6 1.3 1.1% 9.0
31 30 Kansas City, MO-KS 82.2 1.4 0.9% 8.4
32 32 Baltimore-Towson, MD 92.9 1.2 1.1% 8.3
33 35 St. Louis, MO-IL 85.1 1.1 0.9% 6.7
34 44 Salt Lake City, UT 54.8 1.5 0.5% 5.6
35 36 Tampa-St. Petersburg-Clearwater, FL 76.9 1.0 0.7% 5.6
36 64 Vancouver, BC 69.5 1.1 0.5% 5.6
37 66 Ottawa, ON 42.8 1.8 0.4% 5.4
38 34 Raleigh-Cary, NC 45.7 1.5 0.6% 5.3
39 39 Albuquerque, NM 39.3 1.7 0.5% 5.2
40 33 Nassau-Suffolk, NY 71.8 1.0 0.8% 5.1
41 40 Indianapolis, IN 58.9 1.1 0.7% 4.9
42 38 Fort Worth-Arlington, TX 57.5 1.1 0.6% 4.8
43 46 Orlando-Kissimmee, FL 63.6 1.0 0.7% 4.7
44 47 Hartford-West Hartford-East Hartford, CT 48.4 1.3 0.6% 4.7
45 50 Columbus, OH 57.0 1.0 0.6% 4.4
46 45 Pittsburgh, PA 63.3 0.9 0.6% 4.3
47 41 Bridgeport-Stamford-Norwalk, CT 39.0 1.5 0.5% 4.3
48 49 Palm Bay-Melbourne-Titusville, FL 26.3 2.1 0.3% 4.1
49 42 Lake County-Kenosha County, IL-WI 35.0 1.5 0.5% 4.1
50 37 Colorado Springs, CO 27.9 1.8 0.4% 4.0
Sources: BLS, Moody’s Economy.com, Statistics Canada. *Note: Due to a lack of recent data, Mexico was excluded from these rankings. An analysis of Mexico’s state-level performance, based on 2003 data, is found later
Mini Startup Weekend
If you are looking for somethiong to do this weekend then head over to the Collexion space at 941 Manchester street and participate in a mini-startup weekend. You will have te opportunity to brainstorm and work on a couple of projects. they will be hacking from 10-10.
Company Profile:FlowMingle
June 2, 2009
Local Entrepreneurs Ben Bryant, Phil Sauerbeck and Ben Vandgrift looked at the online dating ‘market’ at one point or another, and saw serious flaws that needed to be fixed. They liked the idea of helping people find each other online, and moving that relationship offline and so founded Flowmingle. I caught up with them for an interview.
What is the FlowMingle 30 second elevator pitch?
The goal is simple: to help people find a date. It’s a crowded space, and there are a lot of problems with traditional dating methods. We began with the idea of small group dating, then looked at the most common complaints, and the most common reasons people don’t either date online, or date offline, and built our methods around the results.
How does it work?
A person signs up, fills out a very short form about their demographic information, and builds what we call a First Impression page — this is like a tumblog of what they’ve been up to, what books they like, tv shows, activities, what they’re thinking and feeling. It can be as expressive or as terse as they want, can link to other sites, and include images. They pick a portrait, and then they’re ready to go. By matching the handful of criteria most important to most daters according to several surveys, we find a group of 20 local people, a mixture of guys and girls, and introduce them toeach other over the course of a week.
First they rate each other’s First Impressions, and each day, the answer an open-ended question designed to get our members to express themselves, and rate the other members’ answers from the previous day. By the end of the week, we generally know who feels what about whom, and we present the members of the Mingle with a selection page, where they choose the people they want to make a connection with. Those connections hang around for a couple of weeks, the idea being people will exchange messages and make plans offline. At no point do we try to keep people from exchanging information early: the goal is to get people together, not to collect a monthly fee. We don’t use long surveys and a gojillion points of compatibility, and there’s no search feature to return a million results that are impossible to choose from. The small group model makes it disadvantageous for spammers to participate — they’d be immediately exposed, and would only have access to a handful of users.
What are your plans for growth?
The software is functionally complete — there are of course always a few bugs. We’ve built this using Ruby on Rails, keeping as up-to-date as makes sense. We host exactly as much as we need, focusing on making the user experience as natural and intuitive as possible.
We have done almost nothing yet in the way of advertising, but we are hoping to make a large push into a handful of markets soon, to see what the best methods of generating interest are. We’re looking at small business financing, and hoping to attract the attention of an angel or two, but our financial needs are very modest.
What attracted you guys to Entrepreneurship?
Ben Bryant and Phil Sauerbeck are dyed-in-the-wool startup guys and entrepreneurs. I’ve historically been a Company Man, but wanted to do my own thing. We met up on another project (9up3down), got along well, and started bouncing around ideas.
