JumpStart Community 2009

REALIZING OUR FUTURESTORIES OF ICONS, INNOVATORS & IMPACT

2 0 0 9 C O M M U N I T Y R E P O R T

“JumpStart Inc. represents the best and brightest in 21st century economic development.”

–U.S. Commerce Secretary Gary Locke

Table of Contents

1 Message to Our Community

2 The Path of Icons

& Innovators

3 Stories of Icons

6 Stories of Innovators

12 JumpStart’s Impact

14 Recognizing Our Donors

16 Realizing Our Future

JUMPSTART 2009 COMMUNITY REPORT 1

This year, JumpStart is celebrating the entrepreneurial

icons and innovators of our region. We are inspired by

these visionaries who take an idea and with the right tools,

transform it into a company that brings wealth and prosperity

to an entire community. These are the people who have

generated prosperity for Northeast Ohio in the past, and are

in the process of realizing the region’s economic future.

In this report, we tell the stories of Charles Brush, B.F.

Goodrich, and Ray Kralovic, all of whom had the vision

to create companies that generated billions of dollars in

revenues and employed hundreds of thousands of people.

The region hasn’t had enough people with the vision, the

persistence, and the leadership of these entrepreneurs.

That is why JumpStart was created: to increase the number

of entrepreneurs able to turn a disruptive idea into an

impactful company, ultimately generating economic

prosperity and wealth for all the region’s citizens.

Today, we are working with a new collection of entrepreneurial

innovators. If history repeats itself, some of these individuals

will help realize the transformation of our region’s

economy once again. These entrepreneurs are following

the same paths to growth as the entrepreneurial icons of

the past, including raising capital, obtaining mentorship,

and accessing talent. But today’s entrepreneurs have one

additional advantage: the support of a community which

has created a robust entrepreneurial ecosystem, led by

JumpStart, to provide them with capital and assistance.

JumpStart’s work in guiding companies led the Economic

Development Administration to recognize JumpStart as a

recipient of the 2009 Excellence in Urban and Suburban

Economic Development Award. JumpStart’s other

accomplishments this year (ending June 30, 2009) include:

# Supporting over 400 entrepreneurs with thousands of

hours of free technical assistance and investing over $3.5

million in ten companies via JumpStart Ventures.

# Assisting the JumpStart Ventures portfolio of companies

in raising over $23 million in follow-on capital, and

the JumpStart TechLift Advisors clients in raising $15

million, in a year with almost unprecedented challenges in

fundraising.

# Reaching more than 5,000 community members and

entrepreneurs to tell them about JumpStart and Northeast

Ohio’s robust entrepreneurial ecosystem while building the

skills of more than 275 entrepreneurs with JumpStart’s own

educational seminars.

# Creating over $75 million in economic impact in the region,

including generating tax revenue of $8.3 million to the

federal and state government. This revenue is almost equal

to JumpStart’s annual budget, including funds for direct

investments.

# Rebranding our services to make ourselves more accessible

to more entrepreneurs by adding JumpStart TechLift

Advisors and JumpStart Inclusion Advisors (and the related

395 entrepreneurs these teams support) to our portfolio of

programs.

# Raising over $10 million to support the operations and

investments of JumpStart.

We are proud of these accomplishments, but it is the progress

of the entrepreneurs we support that makes our work come

to life. Read the historical stories and be inspired by what

entrepreneurs have accomplished, with the right tools.

More importantly, consider how the current innovators are

in the process of creating our region’s economic future.

We continue to be extremely grateful to JumpStart’s donor

community. Thank you for your support of our work and of

our region’s entrepreneurial innovators.

MESSAGE TO OUR COMMUNITY

RAY T. LEACh

Chief Executive Officer

DOUGLAS L. WEINTRAUb

Chairman

PhO

TO C

RED

IT D

iann M

iste

lske

REALIZING OUR FUTURE: STORIES OF ICONS, INNOVATORS & IMPACT2

The paths entrepreneurs take as they build a company are similar,

whether they started a business 100 years ago or start one today.

The entrepreneurial icons from Northeast Ohio’s past led their

companies down this high growth path and created organizations

that have continued to grow for decades. The innovators

JumpStart is working with today are on the same path and will

continue to follow that path as they realize their potential.

In the pages that follow, we tell the stories of both the icons of our

past and the innovators realizing our economic future. In addition

to telling these stories, we are using a chart to represent the growth

path they are following. The stages in the path are from Ohio Third

Frontier, one of JumpStart’s biggest supporters, and outline the

different stages of growth and activities in each stage. Although each

entrepreneur’s journey is slightly different, the general path is the same.

STAGES:

n IMAGINING (I): Idea and business model are conceptual.

n INCUbATING (IN): Technology and business model are in development, but products are not yet for sale. This can include preclinical trials.

n DEMONSTRATING (D): Prototype technology is completed and sales orders can be taken. Clinical trials and FDA approval occur.

n MARkET ENTRY (ME): Product or technology is being sold and revenue model is determined.

n GROWTh & SUSTAINAbILITY (G&S): Company is an established and growing business, with a plan to increase market share, revenue, and profits.

ThE PATh OF ICONS & INNOVATORS


Charles Brush | Brush Electric Company

ICON

George was impressed and invested, and with this vote of

confidence, Charles was able to raise additional money from

the Telegraph Supply Company. George’s company also

offered technical assistance in developing, manufacturing,

and marketing the dynamo. With the capital and

assistance, Charles filed his first of 50 patents

and continued to develop the arc lamp. His

research led to the ring clutch, an innovation that

let the arc lamp operate reliably and efficiently

without supervision, and led to increasing the

amount of fuel in the lamp, allowing it to run

all night without maintenance. Two years after

giving up his day job, Charles unveiled his

arc lamp system at what is now Cleveland’s Public Square.

According to The Plain Dealer, twelve lamps simultaneously

lit the square as thousands watched in amazement.

By 1883, the systems were across the country from Boston

to New York to San Francisco, the company’s revenues

reached $2 million, and it had a workforce of 400 associates.

By 1891, the company had merged with its top competitor,

Thomson-Houston Electric Company, and then again

with Thomas Edison’s company to form General Electric.

The mergers created the GE we know today, which has

over 300,000 employees with revenues of $183 billion,

and remains at the forefront of energy creation.

1880: Reorganizes company to form Brush Electric Company

1883: $2 million in revenue

1883: 400 employees

1891: Merges with Edison General Electric Company to become General Electric Co.

1878: Gains endorsement from The Franklin Institute

1879: Unveils electric lighting system on Cleveland’s Public Square

1877: Receives investment and guidance from childhood friend George Stockly

1876: Charles completes dynamo design improvements on paper

1877: Works full time to develop dynamo and electric arc lamp

And the growth continues:

2009: 300,000 employees worldwide

2009: $183 billion in sales

I IN D ME G&S

CHARLES BRUSH, the man credited with inventing the street

light as we know it, was a lifelong innovator. He innovated

throughout his life, from age 12, when he made his own

static electricity machine out of household items, to nearly

30 years later, when he built the world’s first automatically

operated wind turbine to power his home. Today, Charles

Brush’s legacy is cemented in the role General Electric

plays as a global innovator in energy creation.

Charles quit his job selling iron ore in 1877 to work

on his idea for a dynamo electric engine and a

powered arc lamp. At that time he looked to a

childhood friend for capital. George Stockly,

Vice President of Cleveland’s Telegraph

Supply Company, heard from his

own company directors that

electric lighting was “a

field without a

future.” But

PhO

TO C

RED

ITS Char

les

Bru

sh:

Copy

of

an o

rigin

al in t

he

Spec

ial Colle

ctio

ns

Res

earc

h C

ente

r, K

elvi

n S

mith L

ibra

ry,

Cas

e W

este

rn R

eser

ve U

niv

ersi

ty,

Cle

vela

nd,

Ohio

. Arc

Lam

p:

Perm

issi

on f

or

use

court

esy

of

Cle

vela

nd P

ublic

Lib

rary

Photo

gra

ph C

olle

ctio

n.


1888: $696,000 in sales

1890s: Introduces pneumatic tire and experiences rapid sales growth

1892: 400 associates

1892: $1.4 million in sales

1897: Winton Car Company uses and markets the pneumatic tire 1880:

$100,000 stock issued

1880: 55 full-time employees

1880s: Applies solid-band tire technology to bicycles

1870: Relocates company to Akron after $13,600 investment from Akron civic community leaders

1878: Secures angel investment and guidance from George Crouse who becomes VP

1869: B.F. invests in NY rubber company


1949: Produces first passenger car tire containing synthetic rubber


2008: Over 25,000 employees worldwide

I IN D ME G&S

Dr. Benjamin Franklin Goodrich | B.F. Goodrich Company

Akron, Ohio would never have

been dubbed the “Rubber Capital

of the World” if it weren’t for

DR. BENJAMIN FRANKLIN

(B.F.) GOODRICH. With an

entrepreneurial mindset and a

vision for the future, B.F. brought

his small, innovative rubber company

to Akron and laid the foundation for an

international organization that would introduce

the world’s first car tire, aircraft tire, and spacesuit.

B.F., a physician and inventor, invested in a small New

York-based rubber company in 1869 with his business

partner John P. Morris. He used his investment to pursue

his passion for inventing, but struggled to get the company

going in New York. Familiar with Ohio after attending

what is now CWRU School of Medicine, B.F. was inspired

by the financial incentives the city leaders of Akron were

offering for manufacturing companies to relocate to the

city. In 1870, seven prominent Akron citizens invested

$13,600 in the company (the equivalent of $250,000

today), which secured the company’s location in Akron.

With various follow-on funding investments throughout

the 1870s, B.F. added qualified, experienced business

leaders to his company. One of those individuals was

George W. Crouse, who made an angel investment in 1878

and put his finance and business background to work

as Vice President. George’s funds, which were used to

ICON develop an extensive research department

and allow B.F. to invent many of the

company’s initial rubber products,

laid the foundation for innovation

in rubber for the next century.

Out of the Goodrich research

facility came innovations

that put rubber tires on

automobiles, equipped every

U.S. World War I plane with

aircraft tires, provided airplanes

with de-icers, and put Alan

Sheppard in a spacesuit. The

effect the B.F. Goodrich Company

had on the city of Akron as one of the

largest tire and rubber manufacturers

in the world was transformational;

Akron became the “Rubber Capital of

the World” as additional industry leaders such

as Goodyear and Firestone came to the city. The B.F.

Goodrich Company eclipsed the million dollar

sales mark in 1892, reaching $1.4 million and

employing 400 people. Its sales numbers

continued to climb in the 20th century

and as the Goodrich Corporation

today, the company employs over

25,000 and is continuing its

legacy of innovation.

PhO

TO C

RED

ITS P

erm

issi

on f

or

use

court

esy

of U

niv

ersi

ty o

f Akr

on

Univ

ersi

ty L

ibra

ries

Arc

hiv

al S

ervi

ces.


1988: Manufac-tures and ships first product

1990: Begins international shipments

1992: IPO on Nasdaq

1992: 200 employees

1988: Completes regulatory reviews and receives market clearance

1987: Receives Primus investment and guidance from Bill Sanford who becomes President

1983: Ray’s employer denies request to fund sterilization idea

1985: Moves to Mentor and founds STERIS with Ed Schneider

1985: Secures funding


1998: Moves to NYSE


I IN D ME G&S

Microbiologist RAYMOND KRALOVIC, Ph.D.,

had an idea. He thought he could develop

an improved process that would sterilize the

small, sensitive, and complex instruments

used for minimally invasive surgery.

The passion he had for this one

innovative solution helped define

Northeast Ohio as a center for

medical technologies and devices.

Over 25 years ago, Ray proposed the idea to his employer,

an established leader in infection control equipment. His

employer however, thought the innovation was too radical

and a risky investment. After being refused R&D funding for

two years, Ray left his job and partnered with Ed Schneider,

a medical engineer and entrepreneur, to work on the idea.

With his first external investment in 1985, Ray completed the

prototype of the SYSTEM 1® Sterile Processing System and

filed his first patent. The Mentor-based company received

follow-on funding from the State of Ohio in 1986 and Ray

began to validate the product’s marketability. To continue

development, he contacted Primus Venture Partners, a

Cleveland-based private equity partnership. The fund

put Ray in contact with Bill Sanford, President of Symark

Associates and a healthcare consultant with a history of

buying and selling medical technologies. Ray won Bill’s buy-

in, brought him in as President of the company, and received

a venture capital investment of $1.2 million from Primus,

ICON

Dr. Raymond Kralovic | STERIS Corporation

PhO

TO C

RED

ITS Ray

Kra

lovi

c: C

ourt

esy

of

Ray

Kra

lovi

c. S

yste

m 1

®:

Photo

pro

vided

court

esy

of

STERIS

Corp

ora

tion.

McDonald and Company, Invacare, Ameritrust,

and other Cleveland area investors in 1987.

Within three years of the venture

round, STERIS began international

shipping of SYSTEM 1 and a couple

years later it made an initial public

offering with revenues over $45

million and employment at 200. The

company’s innovation didn’t stop with

Ray’s idea, as STERIS holds 280 U.S.

patents and 626 foreign patents, with another 96

U.S. and 374 foreign patents pending. Its revenues

reached the $1 billion mark five years ago and

today STERIS employs 5,000 people with

representation in more than 60 countries.

It remains the preeminent prevention,

decontamination, and surgical

technology company in

the world.


I D ME G&SIN

2008: Completes product formulation and initiates FDA-guided pre-clinical animal studies

2008: Raises nearly $7 million in Series A investment

2009: Secures $800,000 from Ohio Center for Stem Cell & Regenerative Medicine

2009: Submits Investigational New Drug application to FDA for first product

2007: Rahul launches Juventas Therapeutics with Dr. Marc Penn and Cleveland Clinic

2007: Raises $750,000 institutional investment round led by JumpStart

2007: Secures $1 million through Ohio Global Cardiovascular Innovation Center

of its development milestones and demonstrated pre-clinical

proof of concept for its lead product. During this time, Rahul

continued to work with a JumpStart Venture Partner, executing

a follow-on funding strategy necessary to complete additional

FDA-guided animal studies and a Phase I clinical trial.

Juventas closed a Series A venture round in October 2008,

led by Cincinnati-based Triathlon Medical Ventures and

including investment from Early Stage Partners, Fletcher

Spaght Ventures, and Reservoir Venture Partners, as well as

every investor from the initial funding round. Since his initial

meeting with JumpStart, Rahul has raised nearly $10 million

in funding, including $1 million from the Global Cardiovascular

Innovation Center and $800,000 from the Ohio Center for

Stem Cell & Regenerative Medicine, and is transitioning

Juventas into its Phase I clinical trial. Completion of this

human trial will position the company to raise additional

funds, which will be used to further develop its lead product

and expand into other clinical disease states. “JumpStart

has been critical to Juventas’ development. By leading our

initial seed round and providing ongoing support, they are

playing a vital role in transferring our technology from the

laboratory to the successful treatment of human disease.”

DR. RAHUL ARAS has seen hundreds of biotechnology and

pharmaceutical technologies come out of the Cleveland Clinic.

As the former Director of Life Science Commercialization at

Cleveland Clinic Innovations, he was responsible for licensing

dozens of technologies to industry partners, including the two

largest biotechnology deals in Cleveland Clinic history. Of those

technologies, Rahul is most excited about the one he is now

working to commercialize through Juventas Therapeutics, a

Cleveland Clinic spin-off company he helped create in 2007.

Juventas Therapeutics is developing novel regenerative therapies

for cardiovascular disease discovered by Dr. Marc Penn, a

Cleveland Clinic cardiologist. Rahul introduced Juventas to

JumpStart Ventures while working to close an initial funding

round that would fund early product formulation and pre-

clinical animal studies. JumpStart Ventures led the financing,

which closed in July 2007, and included investment from North

Coast Angel Fund, Blue Chip Ventures,

and several local angel investors. Within

one year of funding, Juventas reached all INNOVATOR

“JumpStart has been critical to Juventas’ development. By leading our initial seed round and providing ongoing support, they are playing a vital role in transferring our technology from the laboratory to the successful treatment of human disease.”

Dr. Rahul Aras | Juventas TherapeuticsA JumpStart Ventures portfolio company

PhO

TO C

RED

IT L

aure

n P

arse

lls

From ThE iConS oF our pAST To ThE innovATorS who ArE rEAlizinG our FuTurE.


Because of his company’s funding progress, Kevin was able to

assemble a team of 25 full-time associates, many of whom hold

Ph.D.s in their fields. Positions include research scientists,

engineers, and project managers, plus an additional 17 seasonal

interns who are learning from experts in the alternative

energy field. “Growing a renewable energy company in

Northeast Ohio is the ride of a lifetime. The region has

a tremendous asset in JumpStart, which helped us

immensely initially, and continues to support us

even after we have ‘graduated.’ The region’s other

assets have made it very easy for me to attract

talented people from other places. The

excitement of a clean energy startup, in

an area with a low cost of living and

tremendous cultural assets,

is a very attractive

package.”

DR. KEVIN BERNER introduced the world to a new alternative

energy technology in 2005 through Contained Energy. But

leading the development of one innovation wasn’t enough for the

former Army Officer and McKinsey Partner, and when Contained

Energy presented yet another opportunity, he took it on.

Kevin brought Contained Energy, which produces direct carbon

fuel cells that use inexpensive, readily available carbon as

fuel, to JumpStart Ventures in July 2006. Alongside another

engineer, Kevin worked with a JumpStart Venture Partner to

set aggressive technical, fundraising, business development,

and hiring milestones. During their development, Kevin

found tangential intellectual property that sparked the launch

of Phycal, which develops and commercializes systems for

growing algae and harvesting commercially viable energy

products from the biomass. Contained Energy and newly-

formed Phycal both became subsidiaries of a new parent

company, Logos Energy. As a JumpStart Ventures client,

Kevin has been successful in his fundraising efforts. Logos

Energy has raised nearly $8 million in additional investment

for the two operating companies and levered that funding

with an additional $5 million in development contracts from

the Ohio Department of Development, the U.S. Army, the

U.S. Air Force, and the National Science Foundation.

INNOVATOR

Dr. Kevin Berner | Logos EnergyA JumpStart Ventures portfolio company

“The region has a tremendous asset in

JumpStart, which helped us immensely initially,

and continues to support us even after we have

‘graduated.’ The region’s other assets have made

it very easy for me to attract talented people

from other places.”

I D ME G&SIN

2007: Raises angel investment and grant money

2008: Raises additional angel investment and grant money

2008: Creates holding company Logos Energy and subsidiary Phycal

2009: 42 employees and interns

2005: Kevin licenses fuel cell technology and starts Contained Energy

2006: Secures funding and guidance from JumpStart

PhO

TO C

RED

IT D

iann M

iste

lske


an extensive beta test and in early 2009 connected with and

secured a Fortune 500 industry leader as its first beta customer.

John also looked to JumpStart TechLift Advisors for metals

expertise while developing the test site. “We were able to land

our beta customer in large part because of our

partnership with JumpStart TechLift Advisors.

They are well connected in the technology field

and got us in touch with the right people.”

Completed in the summer of 2009, the beta test’s

results provided John with a Six Sigma validation

of the tool’s ability to provide manufacturers

with higher productivity at a lower cost. M.O.M.

Tools, along with Entrepreneurs-in-Residence

at JumpStart Inclusion Advisors and JumpStart

TechLift Advisors, is now developing a strategic

plan to roll out its dual head punch throughout its

customer’s entire plant with an extended plan to

introduce it to the company’s sister plants around

the world. With a first customer and continued

sales he expects based on the validated beta test,

John projects the company’s revenue to exceed $1

million by the second year of implementation.

JOHN COLLIER is ready to revolutionize the metal fabrication

industry. After perfecting and patenting the design of its punch

tool, M.O.M. Tools is taking on the $30 billion worldwide market.

The design of John’s dual head punch tool incorporates an

angular groove that acts as a second punch head, resulting

in less breakage of the metal (maintaining the integrity of

the entire metal piece) and a cleaner hole than today’s punch

tools, all at a lower cost. As he began his search for a beta

customer in January 2009, John connected with JumpStart

Inclusion Advisors for guidance in forming

the company’s assessment guidelines. Out

of that partnership, M.O.M. Tools developed

John Collier | M.O.M. ToolsA JumpStart Inclusion Advisors and JumpStart TechLift Advisors client

I D MEG&SIN

2009: Starts commercial test with Fortune 500 beta customer

2009: Completes beta test with successful results

2008: Works with JumpStart to secure beta customer

Prior to 2008: John patents idea for tool and founds M.O.M. Tools

INNOVATOR

“We were able to land our beta customer in large part because of our partnership with JumpStart TechLift Advisors. They are well connected in

the technology field and got us in touch with the right people.”

PhO

TO C

RED

IT L

aure

n P

arse

lls


With the new funding, Doug made significant progress against

key milestones, receiving an additional $500,000 in funding,

tripling the size of his team, and completing the 3.0 version of the

SparkBase software. This version incorporates an SMS Gift Card

Portal that connects to more than two million card holders –

all of whom will be using the SparkBase network when they

cash in their cards – and allows merchants to connect

with their customers instantly. SparkBase’s client base

has also tripled in just six months and Doug recently

signed a $125,000 deal to develop a whole new

platform tailored to one customer. “JumpStart’s

team helped fill a gap that allowed us to

grow much more quickly. Without

the help of my Entrepreneur-in-

Residence, I’d still be thinking

of my vision instead of

making it happen.”

DOUG HARDMAN had a vision

for his software tool. Based on his

expertise and past experience in

software development, Doug believed

he had developed a network that

introduced modern technology to

the gift and loyalty card processing

industry, which had been dominated

by antiquated systems and thinking.

What Doug lacked was the resources

he needed to add additional features

to the system and get the word

out to the rest of the industry.

Doug connected with JumpStart

TechLift Advisors in January 2007

and began to finalize the company’s

business plan and perfect his investor

presentation. With the technical assistance and connections

provided by JumpStart TechLift Advisors, Doug secured a loan

from Cuyahoga County’s North Coast Opportunities Technology

Fund (NCOF) in October 2008. This infusion of development

capital paved the way for a Series A round by Blue Olive Partners

to ensure proper staffing and marketing of SparkBase.

Doug Hardman | SparkBaseA JumpStart TechLift Advisors client

INNOVATOR

“JumpStart’s team helped fill a gap that allowed us to grow much more quickly. Without the help of my Entrepreneur-in-Residence, I’d still be thinking of my vision instead of making it happen.”

PhO

TO C

RED

IT L

aure

n P

arse

lls

2009: Raises Series A and additional angel funding and completes new product development

2009: Increases customer base by 400%

2007: Works with JumpStart to develop business plan and investor presentation

2008: Secures funding from Cuyahoga County’s NCOF

Prior to 2006: Doug begins development of SparkBase

2006: Doug becomes CEO of SparkBase

I D ME G&SIN


In order to achieve these and future milestones, Jodi has

developed a capital efficient hiring plan that meets the

company’s growth and investment needs. So far, Jodi has

created eight positions within the company. Aside from herself,

iGuiders now employs two web developers, a marketing director,

and a marketing associate, as well as a contract sales director,

a part-time web developer, and a part-time chief technology

officer. “Eight jobs might not seem like a lot, but that’s just

the beginning. I am expecting to grow our reseller channel

significantly, which will require iGuiders to hire customer

service personnel and marketing professionals to

support our growth strategy. I also expect to add

additional developers to create advances in our

search and decision technology and lead-

generation platform.” Jodi’s expanded

team is anticipating dramatic revenue

generation in the next

few years.

JODI MARCHEWITz knows there is over a $25 billion

market out there for her company. She identified the need

to create easier and more productive Internet searches in

early 2007 and had the skills to develop a new technology

solution based on expertise gleaned from senior roles at

Rockwell Automation. Now Jodi is leading iGuiders into a

new market and hoping to align her company with search

engine powerhouses like Google, Yahoo!, and Microsoft.

The iGuiders team consisted of Jodi and one contractor when

she began developing the prototype and looking for technical

support and investment. iGuiders’ patent-pending online

decision technology, called Guiders, helps Internet users quickly

identify what they want, leads them to the exact information

they need, and guides them to make decisions faster. Upon

receiving funding from the Civic Innovation Lab and Flashline

Partners, Jodi looked to JumpStart TechLift Advisors in

August 2008 to build a strategy that would lead to funding to

continue product development. After helping to finalize her

investor presentation and assisting with market validation,

Jodi’s TechLift Advisors Entrepreneur-in-Residence brought

iGuiders to JumpStart Ventures. Jodi moved her company

into the Beachwood Business Development Center just prior to

receiving a JumpStart Ventures investment in February 2009.

With ongoing coaching from a JumpStart Venture Partner,

Jodi refined her operating strategies, initiated beta testing,

and launched her lead-generation platform in June 2009.

Jodi Marchewitz | iGuidersA JumpStart TechLift Advisors client that became a JumpStart Ventures portfolio company

INNOVATOR

“Eight jobs might not seem like a lot, but that’s just the

beginning. I am expecting to grow

our reseller channel significantly, which

will require iGuiders to hire customer

service personnel and marketing

professionals to support our growth

strategy.”

I D ME G&SIN


2009: Launches Guiders platform

2009: 8 employees2007: Jodi identifies need for iGuiders

2007: Raises friends and family capital

PhO

TO C

RED

IT L

aure

n P

arse

lls


funding, Mark completed development of the software and

began to expand his sales and marketing efforts. He knew the

company needed additional funding to penetrate the initial

target market of healthcare, so Mark began working with his

JumpStart Venture Partner to increase the company’s visibility

among angel and venture capital investors and effectively

articulate the product’s strength and market potential.

By the end of fall 2009, BSKLive expects to attract another

equity investor in the range of $1 to $1.3 million. The

company continues to secure new customers in the

healthcare market, with each customer’s cost savings

averaging $50,000 to $100,000 per year. This

is expected to set the company on a course to

capture a substantial portion of all companies

employing shift-based workers, including

those beyond healthcare. This market

represents 40 percent of the U.S.

workforce, which the team

calculates to be valued

at over $2 billion.

Mark Woodka | BSKLiveA JumpStart TechLift Advisors client that became a JumpStart Ventures portfolio company

INNOVATOR

MARK WOODKA has a successful entrepreneurial past.

His first software startup became the sales arm for TMW

Systems, a software company he helped grow from $1

million to $20 million in revenue. From there Mark became

Vice President of Sales at Flashline, an early-stage software

company that was eventually sold to BEA Systems. Now

Mark is Chief Executive Officer of BSKLive, another software

startup reaping the benefits of his successful past.

BSKLive’s flagship product,

StaffKnex, is a web-based

application that manages

employee scheduling and

staffing for companies with

shift-based workforces. After

presenting at JumpStart

TechLift Advisor’s First Pitch,

Mark secured a JumpStart

Ventures investment in

January 2009 alongside an

angel investment from North

Coast Angel Fund. “The

process of going through

JumpStart is very similar

to the fundraising process,

which I’ve gone through

before. It’s tremendously

helpful for entrepreneurs

because it prepares them for the follow-on rounds of funding

that most businesses will need in order to grow.” With the

2009: Secures beta clients and prepares to scale sales

2009: Beta clients validate value proposition

2009: Expands implementations and proves sales repeatability

2008: Mark becomes CEO of BSKLive


2009: Completes next stage of software development

Prior to 2008: Mark sees potential in BSKLive’s product

I D ME G&SIN

“The process of going through JumpStart is very similar to the fundraising process, which I’ve gone through before. It’s tremendously helpful for entrepreneurs because it prepares them for the follow-on rounds of funding that most businesses will need in order to grow.”

PhO

TO C

RED

IT L

aure

n P

arse

lls


JumpStart’s work since 2004 has created

impact not just with the entrepreneurs and

their companies, but within the Northeast Ohio

economy as well. Our impact includes reaching

entrepreneurs and investing in companies,

helping our clients identify and secure external

funds for growth, and creating jobs and ripple-

type impact in the region.

Impact | On Entrepreneurs Inception through June 30, 2009

Reaching

30,140 members of the entrepreneurial

community (6,030 of whom are diverse)

to introduce the services of JumpStart

Reviewing

6,620 business overviews from entrepreneurs

(1,125 from diverse entrepreneurs)

Providing over

67,650 hours of free assistance to entrepreneurs

Connecting

3,500 entrepreneurs with investors, business

mentors and service providers through

IdeaCrossing, the online resource

Impact | On Company Growth Inception through June 30, 2009

JumpStart VenturesInvesting

$14.37 million through 51 investments in 39 companies, of

which 12 are woman or minority-owned or led

Creating the connections for

portfolio companies to raise an additional

$74.2 million

in external funding (excluding

JumpStart funding) – a 5:1 leverage

ratio of JumpStart’s investment

JumpStart Inclusion Advisors Advising 25 client companies,

of which some are JumpStart Ventures

portfolio companies and have raised $23.3 million

in external funding

JumpStart TechLift AdvisorsAdvising

370

client companies, which have raised

$19.1 million in external funding

JUMPSTART’S IMPACT


Economic impact over the past

three years totaling

$175 million, including $76 million in Northeast Ohio in 2008,

as reported by Cleveland State University – a 29

percent increase from JumpStart’s 2007 impact of

$59 million

JumpStart’s 2008 impact included

$8.3 million in taxes generated – almost equal to JumpStart’s

annual budget, including funds for direct

investments

$20.9 million in household income generated in 2008

502 jobs created (direct and indirect)

Impact | On Northeast Ohio’s Economy

Impact | Recognized

JumpStart was the national recipient of the

2009 Excellence in Urban or Suburban Economic Development Award

from the Economic Development Administration

JumpStart is the 15th most active early-stage investor

nationally according to Entrepreneur magazine and

has been featured in The Wall Street Journal,

The new York Times, USA Today,

and The Chronicle of philanthropy,

with over 1,000 cumulative media placements

IdeaCrossing was recognized with the

Dominion Foundation Community impact Award and the

oberlin research Group Award for Best Single Innovation

porTFolio AnD CliEnT CompAnY hiGhliGhTS

The portfolio and client companies with which JumpStart works

have had tremendous accomplishments.

(Inception through 6/30/09)

Here are some highlights:

Recognized in the Top 10 in their fields

Embrace Pet Insurance• No. 2 pet insurance company according to PetInsuranceReview.com

InSeT Systems • Top 10 technology of 2008 by Popular Science

STACK Media • Top 10 most visited sports website in the country according to comScore Media Metrix

Synapse Biomedical• Top 10 medical innovation for 2009 by the Cleveland Clinic

recognized as leaders in their industries

Great Lakes Pharmaceuticals• “One of the more exciting technologies we have seen” according to the National Institutes of Health

PreEmptive Solutions• “A company to watch” according to one of the leading consultants in their field

Tremont Electric• One of “America’s Most Promising Startups” according to BusinessWeek

recognized by national media

CardioInsight Technologies• graced the cover of Heart Rhythm magazine

CardioInsight Technologies• , CerviLenz, and Synapse Biomedical highlighted in The New York Times

Embrace Pet Insurance• and PreEmptive Solutions featured in Entrepreneur magazine

iCubed International• ’s microwave featured on ABC’s The View

InSeT Systems• featured in Inc. magazine

MAR Systems• featured in Black Enterprise magazine

PreEmptive Solutions• noted in USA Today

reXorce Thermionics• featured in The Wall Street Journal

Synapse Biomedical• featured on Forbes.com

Wireless Environment• highlighted in VentureBeat

Secured 94 patents with another 87 in process (JumpStart ventures portfolio companies alone)

Secured partnerships with global leaders — microsoft, Sears, FedEx, novelis, marriott, and lloyd’s of london, among others

hired 269 employees (JumpStart ventures portfolio companies alone)

raised $134 million in external funding (not including JumpStart ventures investments)


The Burton D. morgan Foundation

The mission of the Burton D. Morgan

Foundation is to strengthen the free

enterprise system by investing in

organizations and institutions that foster

the entrepreneurial spirit.

The Cleveland Foundation

The Cleveland Foundation improves

the lives of Greater Clevelanders now

and for generations to come by building

community endowment, addressing needs

through grant making, and providing

leadership on vital issues.

CoSE

COSE is Northeast Ohio’s largest small

business support organization and

provides cost-effective group purchasing

programs, advocacy on legislative and

regulatory issues, and networking

and educational resource to help the

region’s small businesses maintain their

independence and grow.

The Economic Development

Administration, a division of the

u.S. Department of Commerce

The Economic Development

Administration’s mission is to lead

the federal economic development

agenda by promoting innovation and

competitiveness, preparing American

regions for growth and success in the

worldwide economy.

The FirstEnergy Foundation

Forest City Enterprises

Charitable Foundation, inc.

The Fund for our

Economic Future

The Fund for Our Economic Future

unites philanthropy in Northeast Ohio

to strengthen the region’s economic

competitiveness through grant making,

research and civic engagement.

Greater Cleveland

partnership

As an association of business members, the

Greater Cleveland Partnership mobilizes

private-sector leadership, expertise, and

resources to create jobs and leverage

investment to improve the economic

vitality of the region.

KeyBank Foundation

The objective of the KeyBank Foundation

is to improve the quality of life and

economic vibrancy of the places where our

customers, employees, and shareholders

live and work.

The John S. and

James l. Knight

Foundation

The John S. and James L. Knight

Foundation promotes excellence in

journalism worldwide and invests in the

vitality of 26 U.S. communities where the

Knight brothers owned newspapers.

The national City Corporation

Charitable Foundation,

now pnC Foundation

The PNC Foundation actively supports

organizations that provide services for the

benefit of the community, especially those

services that assist in the development of

preschool children for success in school

and life. The PNC Foundation receives its

principal funding from The PNC Financial

Services Group (NYSE: PNC).

The Donald and Alice noble

Foundation

ohio Third Frontier

Ohio Third Frontier catalyzes innovation

that is transforming Ohio’s economy

for future generations by creating

new technology-based products,

companies, industries, and jobs. It has

four major pillars: to bring industry

and academia together to accelerate the

development of new innovations and

breakthrough technologies, to create

new opportunities for Ohioans, to build

sustainable and competitive industries,

and to build new businesses and invest in

entrepreneurialism.

JumpStart is only able to accelerate the vision of the region’s entrepreneurs and the growth of their

companies because of the generous support of our philanthropic partners. It is because of their

commitment to our region’s current and future entrepreneurial economy that we are collectively on

the path to realizing a more prosperous future for Northeast Ohioans.

Leadership Donors

RECOGNIZING OUR DONORS

JumpStart especially recognizes the leadership and support of Ohio Third Frontier, a program of the State of Ohio. Ohio Third Frontier, which catalyzes the innovation that is transforming Ohio’s

economy, has dramatically improved the entrepreneurial ecosystem across Ohio. JumpStart’s accomplishments manifest the vision of the leaders of this program.


Donor CommunityJumpStart’s unique public-private partnership reflects

the commitment to the growth of entrepreneurship

in this region shared by the Northeast Ohio civic,

business, and foundation communities with the State of

Ohio and the Economic Development Administration.

Thank you to all the members of our unique donor

community who make the work of JumpStart happen.

Civic, Business, and individual Donors

Baker Hostetler

Calfee, Halter and Griswold

Dix & Eaton

Dollar Bank

Ernst & Young

Fifth Third Bank

Huntington National Bank

Jones Day

100% of JumpStart’s Associates

100% of JumpStart’s Board of Directors

The David and Lindsay Morgenthaler Foundation

Oberlin Research Group

Squire, Sanders & Dempsey

STERIS Corporation

The William & Pamela Summers Family

Thompson Hine

Foundation Donors

The Charter One Foundation

The Kathryn and Lee Chilcote Foundation

The George W. Codrington Foundation

The Dominion Foundation

The Eaton Charitable Fund

The GAR Foundation

The Ewing Marion Kauffman Foundation

The Fred A. Lennon Charitable Trust

The Lincoln Electric Foundation

The Nord Family Foundation

The Parker Hannifin Foundation

The Raymond John Wean Foundation

State of Ohio $9.2 64%

Foundations $4.3 30%

Corporations $0.9 6%

$14.4 100%

SourCES oF FunDS – opErATionS

uSES oF FunDS

State of Ohio $6.6 31%

Federal Government $1.3 6%

Foundations $8.0 38%

Corporations $4.3 20%

Individuals & Program Fees $1.0 5%

$21.2 100%

Investments $14.4 41%

Ventures/ TechLift/Inclusion $13.2 37%

Marketing/ IdeaCrossing $4.3 12%

General Admin/ Fundraising $3.7 10%

$35.6 100%

64%

40%

37%

12%

10%

38%

31%20%

5%

6%

30%

6%

l State of Ohiol Foundationsl Corporations

l State of Ohiol Federal Governmentl Foundationsl Corporationsl Individual & Prog. Fees

l Investmentsl Ventures/TechLift/Inclusionl Marketing/IdeaCrossingl General Admin/Fundraising

SOURCES & USES TO DATEJuly 1, 2004 Through June 30, 2009 All figures are in millions

SourCES oF FunDS – invESTmEnTS


In this report, we reflect on the historical accomplishments of a few of our region’s entrepreneurial icons

to give context to the progress of our current entrepreneurs and the role of JumpStart in helping them

along that path. We provide the same critical resources past innovators leveraged to build their successful

companies. If history is an indicator of the future, we can have faith

that some of these talented individuals, with the support of JumpStart,

will be able to achieve the ultimate goal of generating significant

wealth and creating thousands of new jobs across Northeast Ohio.

From 1997 to 2007, the 21-county region JumpStart serves lost over 50,000

jobs (-1.7 percent)1 while the rest of the U.S. experienced, on average, an

11.2 percent job growth. To create new jobs to replace these 50,000 lost

positions and transform our region’s economy in a time of globalization is going to require tremendous focus

and accelerated progress. JumpStart and our supporters believe that accelerating innovative, entrepreneurial

companies from our community is one of the most important actions we can take to address this challenge.

How long will the process of transformation take?

We can learn from cities within our own region that have experienced

similar transformation, such as Akron. Akron’s economy faltered

dramatically in the late 1970s and early 1980s with the decline in

the rubber industry; more than 10,000 manufacturing jobs were

lost in that time2 and declines continued for the next 15 years. The

city, under the inspired and determined leadership of Mayor Don

Plusquellic, responded consistently with a variety of economic development initiatives, including

establishing an incubator to promote entrepreneurship and investing in an Israeli incubator to bring

startups to the area. The universities and local companies also consistently increased investment in

polymer chemical R&D activities. As a result, while still lagging national performance, Akron’s job

growth has been, on average, double the rate of the rest of the region. From 1997 to 2007, Akron

experienced job growth of 6.1 percent3 (almost 20,000 jobs), compared to the losses experienced in

the entire region. Per capita income growth is also the highest in the region. While Akron’s journey

isn’t over, it shows us that support for entrepreneurship and innovation can change a region.

With JumpStart playing a leadership role, we have finished the first chapter of a new story about a

revitalized regional entrepreneurial economy in Northeast Ohio. We are confident that the rest of the story

will be about our collective success. There are entrepreneurial icons in the making here whose innovative

ideas and high growth companies will create thousands of jobs and lead to prosperity enjoyed by not

just Northeast Ohio, but the nation. We remain committed to our mission of providing

these entrepreneurs with the resources they will need to accelerate their journey.

Thank you for your commitment to our region’s entrepreneurial economy and its entrepreneurs.

REALIZING OUR FUTURE

1Eco

nom

y.co

m,

1997-2

007;

2Eco

nom

y.co

m r

eport

ed b

y Le

deb

ur

and T

aylo

r, “

Akr

on,

Ohio

: a

Res

toring P

rosp

erity

Cas

e Stu

dy”

; M

etro

polit

an P

olic

y Pr

ogra

m a

t th

e Bro

oki

ngs

Inst

itution;

3Eco

nom

y.co

m,

1997-2

007

Spec

ial th

anks

to D

r. Z

iona

Aust

rian

, D

irec

tor,

Cen

ter

for

Eco

nom

ic D

evel

opm

ent

at t

he

Max

ine

Goodm

an L

evin

Colle

ge

of

Urb

an A

ffai

rs o

f Cle

vela

nd S

tate

Univ

ersi

ty for

pro

vidin

g t

he

regio

nal

dat

a.Ph

OTO

CRED

IT L

aure

n P

arse

lls

There are entrepreneurial

icons in the making here

whose innovative ideas and

high growth companies will

create thousands of jobs and

lead to regional prosperity.

COUPADCOUPAD®

COUPADCOUPAD®

ThESE ARE SOME OF ThE COMPANIES WhOSE INNOVATORS ARE WORkING TO REALIZE OUR FUTURE

JumpStart Inc. | 737 Bolivar Road, Suite 3000 | Cleveland, OH 44115

Voice: 216.363.3400 | Fax: 216.363.3401

Board of DirectorsMr. Doug Weintraub, CPABoard Chairperson, JumpStart Inc. Serial Entrepreneur

Mr. Mark WilliamsVice Chairperson, JumpStart Inc. Executive Vice President, Corporate and Institutional Bank, PNC

Ms. Jacqueline Acho, Ph.D. President, The Acho Group

Ms. Barbara BrownPrincipal, BrownFlynn

Ms. Terri Hamilton BrownOpportunity Corridor Project Director, Greater Cleveland Partnership

Ms. Judith Cone Special Assistant to the Chancellor for Innovation and Entrepreneurship, University of North Carolina at Chapel Hill

Mr. Mark Coticchia Vice President for Research and Technology Management, Case Western Reserve University

Mr. Larry Goddard President, The Parkland Group, Inc.

Ms. Bonnie W. Gwin Managing Partner, Heidrick & Struggles

Mr. Peter D. Hancock Vice Chair, KeyCorp

Mr. John W. Harley Co-Founder and Co-President, FirstPower Group LLC

Mr. Jim Hickey President and Founder, Arras Group

Dr. Jagdish D. Kulkarni, M.D. President and CEO, J&J Enterprise

Mr. Ray Leach CEO, JumpStart Inc.

Mr. Rich Lunak President and CEO, Innovation Works

Mr. David M. Powell Vice President, Environmental Affairs and Government Relations, NetJets Inc.

Mr. Chris Schmid Founder and Partner, LuK, Inc. and Tekfor Inc.

Mr. R. Louis Schneeberger Former Partner and Managing Director, Knowledge Investment Partners

Mr. William R. Seelbach Operating Executive, The Riverside Company

Mr. Ken Semelsberger Senior Vice President–Finance and Planning, Eaton Corporation

Dr. Anthony Stallion, M.D., FACS, FAAPStaff Surgeon, Cleveland Clinic Children’s Hospital

Mr. Steve Walling Chairman and CEO, Plasticolors, Inc.

Mr. David Wilhelm Founder and Partner, Adena Ventures D

esig

n:

Boondock

Wal

ker

Documents

JumpStart Community 2009