ParkVu relocating to Louisville & Hiring
March 8, 2010
Jeff Fedor and Terry Goertz, the founders of ParkVu, contacted me over a year ago through this blog, asking whether Kentucky would be a good place to relocate their startup. Over the past year they have investigated and compared it to other startup hotbeds and have chosen Kentucky. ParkVu is a mobile consumer media company. We develop products for the Android, BlackBerry, Symbian and Maemo platforms along with OS X and Windows. They are having a launch party/job event tomorrow night in Louisville, details below and we will have more on their move soon.
We’re immediately looking to fill the following positions based in Louisville:
- Senior Software Developers (C#, Java, Objective-C, C++ or similar)
- Tester/Quality Assurance Developer
- Community Manager
- Office Manager
Come celebrate with us:
When: 5 PM, Tuesday, March 9th
Where: O’Shea’s (map)
RSVP: Here
And if you’re interested in the any of the above positions, make sure you talk to Terry or myself (Jeff) on Tuesday or send an email to careers@parkvu.com. We look forward to meeting you.
Two Kentucky Energy Startups receive funding
March 2, 2010
Wellhead Energy Systems, located in Somerset, was approved for an investment of up to $500,000 to develop generator systems that can be placed near natural gas wells to produce electricity for rural communities. Southeast Biofuels, in Mt. Sterling, was approved for a grant of up to $30,000 to develop a portable system that can produce ethanol using sorghum as a feedstock. Many natural gas wells in Kentucky’s rural areas are unproductive because they lack access to transport pipelines. Wellhead Energy Systems’ technology can take natural gas from these isolated wells, clean it, compress it and feed it into a self-contained, on-site generator system. The natural gas-powered generators convert the gas into electricity for use by local utilities, rural residents and industrial locations.
“By placing the generators closer to electrical users, our company plans to create a distributed energy supply to provide secure and reliable electrical power for rural communities,” said David Weddle, president and CEO of Wellhead. “We are also going to use an existing local manufacturer to produce our generator units, which will help keep and create jobs in the Somersetarea.”
Southeast Biofuels is developing a portable system to convert sweet sorghum into ethanol for use as a fuel additive. The modular fermentation system will produce the liquid fuel at sites where the sorghum feed stock is grown and harvested. Sweet sorghum is similar to corn and grows well inKentucky, even on marginal lands. The stalks and leaves can be processed in ways similar to sugar cane, with the juice pressed out so it can be fermented into ethanol.
“We plan to initially focus on expanding existing sorghum crops, and then later extending our production onto marginal lands,” said Stephen Popyach, president of Southeast Biofuels. “Our crops will help keep money within the Kentucky economy that is currently flowing out to pay for petroleum fuels. We’ll also help existing farms earn an income by paying to use their land to grow our crops.”
Wellhead Energy Systems, located in Somerset, was approved for an investment of up to $500,000 to develop generator systems that can be placed near natural gas wells to produce electricity for rural communities. Southeast Biofuels, in Mt. Sterling, was approved for a grant of up to $30,000 to develop a portable system that can produce ethanol using sorghum as a feedstock. Many natural gas wells in Kentucky’s rural areas are unproductive because they lack access to transport pipelines. Wellhead Energy Systems’ technology can take natural gas from these isolated wells, clean it, compress it and feed it into a self-contained, on-site generator system. The natural gas-powered generators convert the gas into electricity for use by local utilities, rural residents and industrial locations.
“By placing the generators closer to electrical users, our company plans to create a distributed energy supply to provide secure and reliable electrical power for rural communities,” said David Weddle, president and CEO of Wellhead. “We are also going to use an existing local manufacturer to produce our generator units, which will help keep and create jobs in the Somerset area.”
Southeast Biofuels is developing a portable system to convert sweet sorghum into ethanol for use as a fuel additive. The modular fermentation system will produce the liquid fuel at sites where the sorghum feed stock is grown and harvested. Sweet sorghum is similar to corn and grows well in Kentucky, even on marginal lands. The stalks and leaves can be processed in ways similar to sugar cane, with the juice pressed out so it can be fermented into ethanol.
“We plan to initially focus on expanding existing sorghum crops, and then later extending our production onto marginal lands,” said Stephen Popyach, president of Southeast Biofuels. “Our crops will help keep money within the Kentucky economy that is currently flowing out to pay for petroleum fuels. We’ll also help existing farms earn an income by paying to use their land to grow our crops.”
Backupify: good news and Bad news
February 16, 2010
Louisville based Backupify recently raised and angel round from some prominent national investors and was featured on Techcrunch. That is the good news. The bad news is founder Rob May states that the company will probably be moving from Kentucky soon. The idea that you have to build these type of web services only in Silicon Valley or New York or Boston has been debunked by many. The growth of Boulder has a tech hub is one good example. Rob may have had to make this promise in order to raise the funding but I think he should stand up, be a man, and build his company in Louisville.
Innovation Scorecard and playbook
January 26, 2010
Bill Warner, A technology entrepreneur in Boston posted the following Scorecard and play book for building an innovation economy. Bill is in Boston but this simple methodology is applicable elsewhere including Kentucky. We need plays and metrics with which to judge the success of efforts to boost a technology cluster. Our politicians often tout the work they are doing in these areas but use outdated or no methodology at all to judge their impact and many of the tactics are outdated or ineffective. This might give us a common language.
Scorecard
Alltech & UK offer entrepreneurial FastTrac program
January 8, 2010
Alltech and UK are putting on the program for $2500 a person. Details can be found here.
The Fast Trac program was conceived in 1986 at the University of Southern California in Los Angeles and the Kaufman Foundation purchased the program’s intellectual property in 1997.
Topics covered include:
- Exploring Entrepreneurship
- Identifying and Meeting Market Needs
- Objectively evaluate your concept and plans for moving forward.
- Develop a working knowledge of business fundamentals such as marketing, product/service development, management, and financials.
- Begin building an infrastructure for your business operations and processes.
- Explore the risk and success factors in the marketplace.
- Understand how to access the human, financial, and business resources.
- Network with entrepreneurs and professionals.
- Respond to changes that can impact your business.
- Build an actionable business plan
Classes will meet every Tuesday and Thursday from 5 pm to 8:30 pm between March 16 and April 22.
The modules will be presented by Gatton staff and senior managers from Alltech
Summitt Biosciences receives 250K
December 14, 2009
Summit Biosciences, a specialty pharmaceuticals business will expand its operation investing over $5 million in new people & facilities. The company received 250K from the state’s high-tech investment pool.
Summit develops and manufactures generic prescription and new over-the-counter (OTC) pharmaceutical products administered to patients by means of a nasal spray. The company is also developing new OTC nasal spray products for which it will apply for patents and plans to begin manufacturing in the first quarter of 2010. To date, Summit has secured a partnership with a publicly traded generic-drug manufacturing company to jointly develop generic versions of five FDA-approved nasal spray products, including one to treat osteoporosis and others used to treat migraine headaches. The company has also secured a contract manufacturing agreement with a company to develop and make a new nasal spray product to treat pain.
How to handle PR problems
November 30, 2009
Below is an interview with Gary Gerdemann, Vice President of Account Services at Peritus Public Relations. Gerdemann has been involved in several high-profile startups including eToys.com, Homestore.com, Gamefly.com, Boston Market and Einstein Bros. Bagels.
On the tech and startup side of your experience, what was a major Public Relations issue you encountered?
A very interesting example was eToys.com. At the time I was the Senior Director of Corporate Communications and Investor Relations for E-Toys.com. One major hurdle we faced was a reputational issue that faced the online industry. The previous Holiday season was marred by spectacular market failures. Toys ”R” Us not only failed to deliver toys by Christmas, they failed to alert customers about the delay. The FTC opened an investigation on the industry and fined Toys “R” Us. Angry mom’s and major public skepticism ensued.
What did you do to counter public skepticism?
Our solution: radical openness. Typically, in our business, the logistics and fulfillment system are secret from the public because of inside / proprietary information. But this time we knew that our ‘trust us’ system wasn’t going to be enough for mom. We needed to show people how awesome our delivery process was so that they could formulate their own opinion.
We worked with NBC on a ‘how does it work?’ segment on NBC Nightly News (10 million weekly viewers). We had someone place an order from NBC’s studio office in New York as a camera crew tracked the whole process. From when the order was received in California, to when it was shipped and finally received by the customer in Denver.
Our message was that all of our employees were serious about every order every time. For example, our head of Logistics was a Vietnam War veteran. His job was to make sure the package was packed, shipped and delivered on time. NBC loved this. They even asked for his old war photos to air. During the segment, we interviewed all employees involved and discussed all high-tech machinery used in the process.
What was your success from this?
Well, our overall success was a real time result:
A) No government intervention and no restrictions on business.
B) Put customer concerns to rest.
Any other words of wisdom in handling PR crises?
The lesson is that sometimes in a difficult business position, you have to make a move that is well beyond what you may normally consider prudent. It’s worth doing some mental computation and asking yourself: What if we took an idea and blew it up 100 times larger? What if we did the exact opposite of that which most would consider “safe”? When we originally approached NBC with a standard pitch, they weren’t interested. But, we doubled down and offered unfettered access and they jumped at the chance. It was a hit and the piece the aired was a gem.
Five companies receive matching funds
November 17, 2009
The following five companies received matching funds through the state’s program to match federal SBIR/STTR awards:
Adaptive Intelligent Systems, established in Lexington in 2005, is developing innovative, intelligent sensing and control technologies that help improve welding quality and productivity.
SureGene, of Louisville, is developing and commercializing its AssureGene™ test, the first in a planned series of proprietary tests designed to help physicians provide more precise and individualized diagnoses for patients with bipolar disorder and schizophrenia.
Vision Dynamics, located in Louisville, has developed an array of innovative materials, processes and equipment to manufacture advanced eyeglass lenses, including a nanotechnology-based system first marketed in 2006.
Louisville Bioscience, of Louisville, is developing a blood test that profiles a patient’s blood plasma proteins to help detect autoimmune and infectious diseases, as well as cancer in the early stages. The new platform technology is also expected to have other applications, including identifying biomarkers and targets for new drugs.
EndoProtech, located in Louisville, is developing and commercializing unique therapies for organ transplantation and cardiovascular surgery, including a product that will protect patients’ cells, tissues and organs that can be damaged when blood flow is restored following the procedures.
Advantage of being a Startup outside the valley
November 11, 2009
The following post by Ali Davar , CEO of Worio, a Vancouver-based startup creating a new category of personalized Web search highlights many of the advantages that I have been preaching about when your high-tech startup is not located in Silicon Valley (or Boston, Austin, Boulder etc). Also some valuable tips about how to stay relevant in the valley when you are not located there.
Avoid the “Valley premium” – Startups that set up shop in the Valley fork over a premium for the exclusive location. As one of the most expensive urban areas to live in nationwide (according to ACCRA), the Valley drives up basic costs, ranging from salary and benefits to rent and utilities. This means the $5 million in funding your Valley-based competitor receives may barely keep the lights on, while a smaller round of funding could mean major growth for your firm. Leverage this fact with investors that are interested in hearing about how you can do more with less.
Be the local rock star, instead of a dime a dozen - The Valley is like a modern day Gold Rush: the possibility of striking it rich draws the masses and every tech company wants a piece of the action. As a result, it’s easy to get lost in the crowd. (And, to add insult to injury, there are no economic incentives or tax breaks for your business.) In contrast, local governments outside the Valley bubble often give entrepreneurs the star treatment and big cost-savings— such as tax breaks or subsidized health care—to stimulate growth.
Recruit Valley ambassadors - An industry influencer or PR agency based in the Valley can serve as an advisor, champion your technology and help you penetrate the exclusive bubble – giving you a “physical” presence despite being geographically removed from the Valley. They can also teach you the lay of the land, arrange networking meetings, alert you to local events and help fine-tune your Valley strategy.
Don’t be a stranger - Travel to the Valley at least once a quarter, timing your visits around major conferences/events to maximize in-person meetings and networking opportunities. Regular face time ties a personality to a name, which ultimately may be all people remember about your company. It’s also a key ingredient for maintaining relationships.
Be a joiner - Participate in local industry and entrepreneur groups – not only will they help you build a stronger presence where you’re based, but they can connect you with sister organizations or other entrepreneurs in your industry that are based in the Valley.
Give your startup space to stretch its wings - The Valley offers a high concentration of opportunities, but niche industries often struggle to get even a sliver of that pie. Consider opting for an area with a concentration of companies in your space that can help nurture your startup with good talent and resources. Colorado, for example, has a strong portfolio of UI and design startups and Canada is known for its video gaming industry.
Take advantage of the talent - When you are a company of 10, your talent is your business. Without resource-wealthy giants creating silos for incoming talent, startups outside of the Valley have a fighting chance to recruit and retain great employees without having to resort to alternatives such as outsourcing – an option that has become less cost-effective in highly-skilled industries. Target areas with academic institutions that groom the type of talent you seek or governments that allow you to import talent without heavy regulation.
Take advantage of the upcoming economic turn - Historically, investors have had a primary focus on the Valley, but with Bay Area deals falling by a much faster rate than the rest of the country last year (57 percent according to Dow Jones) investors are now more willing to look outside the bubble for innovation.
Comparing entrepreneurial cultures
November 6, 2009
Below are some excerpts from an article on xconomy about the startup scenes in Boston, Boulder and Seattle. I highlighted the statements I thought were important to or resembled Kentucky and other areas trying build high-tech ecosystems.
Brad Feld of TechStars and Foundry Group gave a brief history of the startup scene in Boulder, CO—useful for any city with entrepreneurial aspirations. “When I showed up in ’95, what I found was on the software side you had a lot of smart engineering talent but you didn’t have much else. A handful of entrepreneurial companies in storage and cable infrastructure. Not much in the way of entrepreneurial executive leadership other than from these pockets. In the mid-90s, because of the counter-culture community—and the Internet was purpose-built for places like Boulder—you had a lot of people who were independent, very smart, doing their own things suddenly intersecting with a medium that allows you to be anywhere. It’s 100,000 people plus 25,000 college students. A pretty small town, but it has the largest percentage, per capita, in the United States of computer scientists and PhDs. Yet there wasn’t a broad wave of entrepreneurial experience,” Feld said.
“In the mid-to-late 90s, there was huge activity around the Internet. Anybody with a pulse could get a company started. The predictable thing eventually happened, there was a lot of wreckage. But from ‘95-2001, Boulder had imported a lot of executive talent—CEOs, VP sales, engineering leadership. We also had a lot of entrepreneurs who had one or two companies in that cycle. So by 2003, people were starting to come back and get re-engaged in entrepreneurial activity. There were probably 50-plus people that made $10 million or more, so there was enough of an angel community. There was critical mass around this. But what was missing was something that tied the community together. There was the endless cocktail party circuit of entrepreneurs. Eventually people got bored and stopped going….“The other thing was that one of the hardest things for first-time entrepreneurs is to have an engaged relationship with an experienced entrepreneur. We found we were creating this thing that integrated the whole value chain of entrepreneurs. It really energized the existing entrepreneurial activity.”
Chris Sheehan of CommonAngels then gave his thoughts on the Boston innovation scene. [Disclosure: Chris is on Xconomy’s board.] “In the IT ecosystem in Boston, there are a number of things going on,” Sheehan said. “It’s a wonderful place for universities and colleges. MIT has been the granddaddy in terms of the entrepreneurial ecosystem. But what I’m seeing is a fresh set of energy coming through the other universities—Harvard, Boston University, Babson, Brandeis, the list goes on and on. They’re all embracing startups. There’s a deep bench of entrepreneurs around Boston. On the larger companies, we’ve been lacking there at times, but I’m seeing renewed vigor from companies in terms of your ability to go in and get experienced executives. And Google and Microsoft have finally made a big commitment to Boston.
“There’s been a lot of wealth created in Boston from startups, most of it from the computer, hardware, telecom, networking industry. You’ve seen the rise of angel groups in the last 10 years in Boston. We were the first back in ’98. Today in New England there are 23 or 24 angel groups, representing 800-1,000 angels. The venture community, there are probably 20-25 active firms doing IT investments. But I think we can do more on the seed and early-stage side.
“The final building block is startup resources. Part of the challenge in Boston is, you’ve got this very dispersed ecosystem. You overlay that with a conservative culture. Trying to make connections there and get in and see the right people can be challenging, can be time-consuming.
On the Seattle front, Greg Gottesman of Madrona Venture Group pointed out the importance of anchor companies like Microsoft and Amazon. “I think the most exciting thing going on in Seattle on the entrepreneurial scene is actually Amazon and the wealth it’s creating for a lot of people who’ll be the next generation of angels and entrepreneurs,” he said. He also stressed the importance of wins in establishing an entrepreneurial culture at the University of Washington—his example was Farecast, the travel search startup co-founded by UW prof Oren Etzioni, which Microsoft bought for $115 million last year.
Steve Hall of Vulcan Capital stirred the pot a little by pointing out some of the shortcomings of Seattle. “The first is the question of whether Seattle has enough capital. It’s a very short list of funds. You need a critical mass of capital to drive entrepreneurs’ willingness to quit their jobs and burn the midnight oil to start businesses. While I think it’s good for us VCs to have the market to ourselves, you need a little more activity to jumpstart the system. The good news is there are a lot of Bay Area firms spending a lot of time up here. But I think there’s room for another fund or two, probably in the $100 million range,” Hall said.
