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A sunny outlook: for innovative local businesses, 2011 was not a slog but a fresh start

In the past year, the economy didn't rebound with as much bounce as anyone would have liked, but a few fascinating things are happening on the way to recovery: the Twin Cities business community seems to be getting closer, more creative, and in some ways, more relaxed. The past year has seemed less like a slog and more like a fresh start.
 
In covering the innovation and jobs beat for The Line, I've spoken to dozens of entrepreneurs, some CEOs of large firms, and quite a few non-profit folks, and the trends are the same across every sector. The recession delivered a blow, certainly, but rather than going right back to business-as-usual, many companies here are seeing success through different measures. They brag about flex time for employees, community-based projects, and buying locally. It's as if the economic storms brought many enterprises under the same roof, and now they've learned that rather than survive independently, they're better off thriving together.

An Incubator Boomlet
 
For example, look toward the business incubator boomlet, and the wealth of services for entrepreneurs, like CoCo, WorkAround, MOJO Minnesota, the Economic Gardening Network, Homegrown Business Development Center, Minnesota High Tech Association, and so many others. The University of Minnesota, in particular, is a powerhouse of advice and skill building. Even the engineering school is teaching its students how to play well together in a business setting. 
 
This level of closeness to each other has created a business community that supports new endeavors so enthusiastically. Look at our recent feature on Kindred Kitchen, an effort in North Minneapolis that supports food entrepreneurs, for just one example, but there are many others. A sampling of companies that got their start this year include Sophia, DogWonderful, BuyerCurious, Pashen, and CRAM.
 
Through strategic hiring and expansion of services and products, many companies are showing a sense of starting anew, even if they've been around for years. For instance, just look at Bulk Reef Supply, an aquarium supplies service that has done such tremendous growth through increased product offerings that it landed on the Inc. 5000 list.

Companies Chillaxin'
 
Finally, there's the relaxation factor. Business can always be a bit of a meat grinder at times, but as companies learned to operate lean and get creative, they started to identify different measures of success, like happiness. As Chris Trifilio, co-founder of Primordial Soup noted, "We don't want to be a 50-person firm. We want to keep going down the path we're on, because it's fun and we love it." That's a sentiment that I heard often this year, leading me to believe that if a company didn't start fresh in terms of operations, then maybe they did in terms of attitude.
 
In the year ahead, I predict that these trends will keep rolling strong, because they contribute to the health of the business community, and make the Twin Cities a strong and vital area. Happy, satisfied entrepreneurs and business owners are creating a business climate that's sweeping away the economic clouds of the recent past with something awfully close to a sunny outlook.

Elizabeth Millard, Innovation and Jobs Editor

Multi-Tech Systems sees steady hiring and greater demand

"Even in these tough economic times, many of the segments we target are thriving," says Jim Cairns, vice president of marketing at Multi-Tech Systems. "We provide technology that allows for greater efficiency and cost savings, and that's always welcomed."
 
Founded by Raghu Sharma, Multi-Tech has been producing connectivity technology for nearly 40 years. Part of the company's strength lies in its diversity: products range from smart grids that can monitor a house's electricity, to sensors that allow remote ATM machines to communicate with bank systems quickly, to patient-monitoring systems that make home health care easier and safer.
 
Health care is a major part of Multi-Tech's offerings, and the company has major clients like Medtronic and Boston Scientific. Cairns says, "The cost for health care these days is almost obscene. So, if we can allow people to manage their health care from their homes instead of rushing to the hospital, that makes for major savings."
 
Growth in all areas is creating a demand for new talent, he adds, and hiring has been steady at the company's headquarters in Mounds View. Recent hires have joined teams in sales, engineering, and manufacturing.
 
A unique part of Multi-Tech's operations is its in-house manufacturing facilities. By not outsourcing any production to overseas entities, the company doesn't benefit from cost breaks, Cairns notes, but there's greater control over the supply chain and more adaptability to customer needs.
 
For the future, Multi-Tech intends to keep hiring at a steady pace and expand into new markets. "We feel fortunate to be growing, while still striving to provide the best solutions for our customers," says Cairns.
 
Source: Jim Cairns, Multi-Tech Systems
Writer: Elizabeth Millard

Vaultas expands, expects more hiring and growth

Central Minnesota just got a little more connected.
 
Minneapolis-based Vaultas, a data center, colocation and business continuity provider, is expanding into the St. Cloud market, following completion of the company's newest data center facility in Alexandria.
 
The decision to build in the area was driven by demand, notes Vaultas president John Unger: "Outstate Minnesota really didn't have a colocation environment that local businesses could use, outside of the metropolitan area. There was one in St. Cloud, but that's somewhat private."
 
During the recent tough economic times, many companies throughout the state increased their use of managed services, making data center usage more popular. Rather than pay for power and cooling, as well as technology licensing, on their own, companies have been turning to data centers like those run by Vaultas to manage their data and drive down costs.
 
Although these types of arrangements can be utilized from anywhere—a company in Duluth could outsource to a data center in Denver, for example—there are advantages to having a data center close by, Unger believes.
 
"Not everyone is so eager to put data into a cloud computing environment," he says. "For some companies, it can be a high risk environment." Also, he adds, having a provider so far away doesn't give an entrepreneur or executive the ability to walk through the data center's doors and check on operations.
 
Factors like these are driving growth for Vaultas, which has been hiring more sales professionals and contractors in the past year, Unger says. More hiring could come in the future as well, if the provider stays on track with its goals. Unger is considering putting more data centers between Minnesota and Utah, taking advantage of the region's chilly weather to reduce overall cooling costs.
 
"Absolutely, we're on a growth track," he says. "We're looking forward to seeing what's ahead."
 
Source: John Unger, Vaultas
Writer: Elizabeth Millard

City of Eagan plans data center to lure jobs

Eagan isn't yet known as a telecommunications hub, but that may change in the near future, when the city builds a major new data center.
 
Known as The Connexion, the colocation facility will be open to all telecom and Internet service providers, as well as local and regional companies that need offsite data storage and disaster recovery.
 
The facility will be developed and owned by Five 9s Digital, a North Carolina firm that's well versed in the complexities of building and running these types of specialized data centers.
 
"This is an effort to protect technology jobs and attract new jobs," says Tom Garrison, the city's communications director and the liaison to the Eagan Technology Working Group, which has been studying the city's broadband needs for the past five years.
 
"The Connexion isn't jobs-intensive on its own, but it will provide the infrastructure for technology companies, and that could bring them to the area," Garrison says. "We think this will go a long way toward establishing Eagan as a top technology location."
 
The Connexion will provide high-connectivity private data suites, route redundancy, and environmental efficiencies. Private investment in the project is estimated at between $75 million and $100 million. The new facility will provide Tier III space, which is important, given the high demand for space at that classification.
 
Look for the facility to get kickstarted soon, with a projected completion of mid-2012.
 
Source: Tom Garrison, City of Eagan
Writer: Elizabeth Millard

Tekne Awards winners announced

The Minnesota High Tech Association (MHTA) recognized 14 companies that are contributing to innovation, development, and commercialization of technology in the state, handing out its annual Tekne Awards last week.
 
The awards included separate categories for small and growing businesses, with revenues under $50 million, and for established businesses. Winners range across a number of fields, from manufacturing to sustainable technologies to non-profit organizations.

"Minnesota’s technology community has responded enthusiastically to the Tekne Awards for the past twelve years," says MHTA President and CEO Margaret Anderson Kelliher. " Year after year the Teknes generate a tremendous amount of pride and help inspire a new generation of innovators."
 

Nova-Tech Engineering
won for advanced manufacturing, Ecolab took home the cleantech and energy award, and Global Traffic Technologies won the computer hardware and electronic devices award.
 
For the most innovative collaboration of the year, MHTA chose Maverick Software Consulting, which paired with Digital River, Thompson Reuters, and MnSCU to bring together computer science students and corporations providing software development and testing. Students received real-world experience working in the technology field, and companies got talented candidates. 
 
Other winners included Sophia Learning, Minntech Corporation, Pursuit Vascular, GeaCom, Imation, and Calabrio.
 
The City of Minneapolis received an award for technology excellence in a non-profit organization, with MHTA noting the city's work toward bringing technology and information together to make Minneapolis safer. The city's new emergency operations training facility and strategic information center blend digital data, streaming video and interactive interfaces to create a communications center for the city.
 
The Tekne Awards also featured more inductees to the Minnesota Science and Technology Hall of Fame, which was created four years ago to acknowledge the work of entrepreneurs, engineers, professors, inventors, researchers, and scientists.
 
Source: Margaret Anderson Kelliher, Minnesota High Tech Association
Writer: Elizabeth Millard

U. of M. gets $1.5 million grant for eco-friendly plastics research

Can plastics be more environmentally friendly and still remain cost-efficient? That's the question driving researchers at the University of Minnesota, and now they have some additional support for finding the answer.
 
Recently, researchers at the university's Center for Sustainable Polymers were awarded a $1.5 million grant from the National Science Foundation (NSF) Centers for Chemical Innovation program. The grant also makes the university eligible for additional funding opportunities in the future.
 
"We are tremendously excited about this new support from the NSF," noted Marc Hillmyer, director of the Center for Sustainable Polymers in a news release. "With our strong history in polymer science and seed funding from the University of Minnesota, we have already been able to establish a national presence in the sustainable polymer arena."
 
The Center focuses its research on creating advanced plastics from renewable, natural, and sustainable resources instead of fossil fuels. Researchers look at using sources like vegetable oils, sugars, and starches to develop materials that are cost-efficient, non-toxic, and able to be composted.
 
Hillmyer noted that the grant will help Minnesota become a leading global center of excellence in sustainable polymer science and greatly expand the center's capabilities.
 
"With Minnesota's leadership in the area of bio-based materials and the University's breadth of expertise, we are well positioned to make significant and important research contributions," he said.
 
What's the future of environment-friendly initiatives? One word: plastics.
 
Source: University of Minnesota
Writer: Elizabeth Millard

Proto Labs aids inventors with new award program

Many inventors apply for awards, but in order to win, they often need working prototypes for judges to examine, and that can be an expensive gamble.
 
Local manufacturing company Proto Labs aims to change that scenario by offering an award that allows inventors to make those prototypes, with Proto Labs footing all or some of the bill.
 
Launched in April, The Cool Idea! Award is designed to give product designers, entrepreneurs, and inventors an opportunity to see their visions transformed into working models. The firm is providing an aggregate sum of up to $100,000 worth of prototyping and short-run production services to award recipients, so they can take their product idea from a 3D CAD model to a first-run production stage.
 
"We wanted to recognize people who have truly cool ideas, but who need help bringing them to market," says Bill Dietrick, Proto Labs' vice president of marketing. "Other award programs only kick in when a product is in the market and commercially viable. We wanted to help people who are further back in the process."
 
Proto Labs will choose several winners throughout the year. The first award recipient, TruFlavorWare, will use the manufacturer's services to prototype a set a flatware designed for people undergoing chemotherapy. The flatware eliminates the bitter metallic aftertaste caused by traditional forks and spoons.
 
Entries have been coming in at a rapid pace, and Dietrick notes that they're overwhelmed with applicants. Because of the wealth of great ideas, the company created a new category called "honorable mention" and awards those winners a reduced manufacturing cost if they decide to use Proto Labs.
 
Although the program is currently available only to innovators in the United States, the company is considering opening up the awards next year to inventors worldwide.
 
"It's really been wildly successful so far," Dietrick says. "It's great to see all the amazing ideas that inventors have, everything from robotics to household products."
 
Source: Bill Dietrick, Proto Labs
Writer: Elizabeth Millard

October events: Giant Steps, Minnesota Venture Conference, and Women in the Boardroom

Giant Steps

October 7
Guthrie Theater
818 S. 2nd St., Minneapolis
$120
 
Designed for "creative entrepreneurs and entrepreneurial creatives," this gathering includes workshops on topics like creative collaborations, networking and promotion, funding models for creative projects, and using social media effectively. Registration includes access to an after-party and concert.
 
 
Downtown Minneapolis Job Fair
 
October 12
Minneapolis Convention Center
1301 2nd Ave. S., Minneapolis
Free
 
Held in the Convention Center's ballroom, this major job fair features companies that are hiring in fields like accounting, health care, management, sales, and construction.
 
The Minnesota Venture & Finance Conference
 
October 12 & 13
Minneapolis Convention Center
1301 2nd Ave. S., Minneapolis
$295 for members, $495 for non-members
 
Now in its 25th year, this conference showcases entrepreneurship and investment, with presentations, networking opportunities, and workshops. Panels this year cover topics like innovation financing, intellectual property rights, IPOs, tax credits, and general trends in financing.
 
Women in the Boardroom
 
October 17
Hyatt Regency
1300 Nicollet Mall, Minneapolis
$105
 
This executive leadership event is designed to assist women in preparing for board service, and includes panelists who share their knowledge and expertise. The organization holds these annual events in 15 cities nationwide, as a way to boost interest in diversifying for-profit and non-profit boards.

Tekne Awards finalists announced

Highlighting the strength of the state's technology sectors, the Minnesota High Tech Association (MHTA) announced finalists for the 2011 Tekne Awards.
 
The award program, now in its 12th year, recognizes innovations from 2010 that represent the brightest in development, commercialization, and management of technology in Minnesota. Forty-two finalists were named in fourteen categories.
 
The MHTA noted that recent growth in Minnesota's educational and robotic technology sectors were particularly visible this year, but that all technology sectors are staying strong.
 
In the education category, finalists are Capella University, Sophia, and Naiku--which recently won the recent Minnesota Cup award. Finalists in other categories represent a range of companies, from large firms like Imation Corp. and Digital River to smaller businesses like Xollai and QuickCheck Health.
 
The awards are designed to showcase these types of companies, and draw attention to the innovative and competitive companies in the state, according to MHTA president Margaret Anderson Kelliher. They're part of the organization's larger mission to boost education and entrepreneurship along with technology development.
 
"We're very excited about the opportunities available to technology companies here," says Kelliher. "In general, we believe that individuals and companies in the state have more potential than they do challenges. We're proud and happy to support them in any way we can."
 
The Tekne Awards will be presented on November 3 at the Minneapolis Convention Center.
 
Source: Margaret Anderson Kelliher, Minnesota High Tech Association
Writer: Elizabeth Millard

September events: building your company, bioscience summit, advanced search, developers conference

Everything it Takes to Build Your Company
September 8
Cowles Auditorium, Humphrey Institute
301 19th Ave. S., Minneapolis
$45 for members and $105 for non-members
 
Part of The Collaborative’s series on business growth, this event features an array of speakers giving advice on leveraging technology, building revenue, and finding success in medtech. Experts include speakers from Best Buy, Calabrio, Shavlik Technologies, Compellent, GovDelivery, and more.
 

Minnesota Bioscience Summit

September 20
Nicollet Island Pavilion
40 Power St., Minneapolis
$99 for members and $129 for non-members
 
Presented by LifeScience Alley and the BioBusiness Alliance of Minnesota, the summit features panels that tackle three overarching trends that are poised to radically impact all the bioscience industries.
 

Advanced Search & Analytics Summit
September 20
2112 Broadway St. NE, Minneapolis
$495
 
Put on by DemandQuest, this summit is for people who are familiar with Google AdWords and want to dig into a more advanced understanding of how to manage and refine their campaigns.
 

Minnesota Developers Conference
September 29
DoubleTree Bloomington Hotel
7800 Normandale Blvd., Bloomington
$150
 
Now in its sixth year, the Minnesota Developers Conference is the largest developers conference in the Midwest. This year features seven tracks totaling 28 sessions, with the spotlight on .NET, Ruby, mobile, Silverlight, cloud computing, and HTML5.

Minnesota Angel Network launches

Minnesota entrepreneurs may get some of their funding prayers answered, thanks to the launch of the Minnesota Angel Network (MNAN).
 
MNAN notes that it's a unique educational program for entrepreneurial companies that are looking to raise investment capital, as well as a connection point for investors looking for innovative companies. The typical business that will be boosted by MNAN will be one seeking to garner between $50,000 and $4.5 million, and will be in a high-tech or knowledge-based industry.
 
The group's advisors are picked out of a pool of experienced investors, business experts, entrepreneurial-minded CEOs, and technology experts. There are a number of foundational service advisors and partners, including Leonard Street and Deinard, Gray Plant Mooty, Fredrikson & Byron, and Messerli & Kramer. These advisors provide their insight on a pro-bono basis.
 
Designed as a first stop for entrepreneurs looking for investments, MNAN helps to prepare them for the rigors of fundraising--aid that the group believes will save valuable time and resources on both sides of the investment table. Candidate companies go through an evaluation process, and if they're deemed suitable for the program, they're launched into a rigorous training regime provided by up to eight advisors. The education process takes between 60 to 90 days, putting a candidate company on a fast track for investment.
 
The hotly anticipated MNAN is helmed by Todd Leonard, who's raised more than $50 million in equity for startup companies in the past. An angel investor himself, Leonard has held executive roles at companies in the construction and pharma industries, and has shared his insight on technology transfer processes as a consultant for government agencies.
 
The debut of MNAN is likely to be welcomed in the state, which has been experiencing increased vigor in its entrepreneurial efforts lately. And after all, who couldn't use a few more angels on their side?
 
Source: Minnesota Angel Network
Writer: Elizabeth Millard

 


New angel investor group will focus on tech startups

New technology companies may get some heavenly help in the near future, with investment from a just-formed angel investor group.

AngelPolleNation (APN) is the brainchild of attorney Jeffrey Robbins of Messerli & Kramer. After representing entrepreneurs in his practice for nearly three decades, Robbins began to notice that angel investors were lacking in the state more than ever before. Some news reports early this year confirmed his suspicions, and he thought there must be a way to amp up angel funding in the area, especially for technology firms.

Although there are a number of organizations that serve entrepreneurs with resources and networking connections, the crucial angel investment component has been dwindling, Robbins believes.

"When you go to entrepreneurial events, the number-one topic is money," he says. "Everyone in early-stage companies struggles with where to find enough money for what they want to do."

At the same time, investors benefit from joining together, Robbins notes, instead of attempting to fund companies on their own. "It's hard to be a solo investor," he says. "It's really nice to be connected to others."

The initial phase of APN will focus on getting investors and entrepreneurs communicating, and Robbins hopes to draw a number of angels to the group. In July, APN's first meeting at Interlachen Country Club attracted about 70 local investors, and featured presentations by other angel groups like Twin Cities Angels and Minnesota Angel Network.

The next APN event is set for mid-September, and Robbins anticipates that there will be quarterly meetings from that point onward.

Source: Jeffrey Robbins, AngelPolleNation
Writer: Elizabeth Millard


The Nerdery plans for even more growth, months after recent expansion

Last April, web development firm The Nerdery announced that it was about to double its Bloomington headquarters. Now, it turns out that's not enough room.

The 8-year-old firm has been growing at such a steady clip that it's been consistently outgrowing its space for the past two years. In 2009, the company began knocking down walls and taking over other parts of its headquarters to allow for more employees, and recently, it built a 225-seat theater for all-company meetings.

But even that space may have to include significant standing-room-only areas in the near future, according to CEO Mike Derheim, who says the company seems to be always expanding.

"We have a deal right now where we're about to take another 6,000 square-feet of space, but in the meantime, we're looking at another 9,000 square-feet on top of that," he notes. "We're also looking at other geographies in terms of opening offices."

The growth is driven by high demand for Nerdery services, he says. The firm partners with ad agencies and design firms that need the type of creative technology expertise that The Nerdery provides.

To fill that extra office space, the company has a position known as the "Nerd Hunter," who's in charge of recruiting and interviews candidates every day. Three other employees create nerd-finder events and post job openings on career sites. The company has also begun doing a "Nerdery Roadshow" to different parts of the state, in an effort to recruit more talent.

"What's unique about us is that we find people who wake up every morning excited about developing the coolest new technology, and we have clients who recognize that," says Derheim. "That's what's fueling our growth."

Source: Mike Derheim, The Nerdery
Writer: Elizabeth Millard

OATI moves to new 22-acre campus in Northeast Minneapolis

Application developer and data center provider Open Access Technology International (OATI) recently announced its move to a new campus in Northeast Minneapolis, which will house both the company's growing staff and its next-generation data center.

Founded in 1995, OATI pioneered the software-as-a-service business model for the energy industry, and has since created products and services for energy trading, risk management, compliance monitoring, renewable resources, and other strategies. The company won the 2010 Tekne Award in the Technology Services, Small and Growing Company category, presented by the Minnesota High Tech Association.

The software firm purchased the 22-acre property in 2009, scooping up a site once owned and occupied by Honeywell International, located at 3660 Technology Drive NE.

At the time, OATI's President and CEO, Dr. Sasan Mokhtari, noted that the acquisition would allow the company to meet future challenges in the energy industry, OATI's main client base. A centerpiece to the project is a data center with high levels of physical and cyber security, redundancy, and efficiency.

OATI's two data centers are linked into one virtual data center through multiple fiber links, with optimized infrastructure.

Also in the mix are an executive briefing center, conference center, customer care department, and training center, in order to meet the needs of OATI's expanding staff.

In announcing the current move, Dr. Mokhtari stated that the new campus is three times larger than the company's previous space, and provides for continued growth in staff as well as services.

Source: OATI
Writer: Elizabeth Millard

August events: marketing going mobile, mobile twin cities, summer garden party in the sky, bootstrap

Marketing Going Mobile
August 11
Metropolitan Ballroom
5418 Wayzata Blvd., Golden Valley
$30 for BMA members and $45 for non-members

The Minnesota chapter of the Business Marketing Association is hosting a panel discussion on how to successfully add mobile technology to B2B marketing campaigns. Topics include: leveraging mobile as a new media channel, integrating mobile into a marketing mix, and challenges associated with building applications for mobile devices. Attendees can register online at BMA's site through August 9, and a limited number of walk-up registrations are also available.

Mobile Twin Cities
August 16
Refactr office
11 Fourth St. NE, Minneapolis

Geared toward mobile developers, but open to non-techies, Mobile Twin Cities is a group of mobile enthusiasts who enjoy meeting on the third Tuesday or each month to discuss trends and software on all platforms. Past topics have included the challenges of training cellular sales teams, the use of QR codes, and the top news in mobile. For those who are interested, but can't make the meeting, Mobile Twin Cities offers videos of previous meetings on its site.

Summer Garden Party in the Sky
August 17
Crowne Plaza's Sky Garden
618 Second Ave. S., Minneapolis
free, but registration recommended

Put on by the MainStreetChamber, this networking mixer is a celebration of the gathering's first-year anniversary in Minnesota. The meetup is expected to draw hundreds of small business owners, and offers magnificent views of downtown as well as the hotel's rooftop garden.

Bootstrappers Breakfast
August 25
Wilde Roast
65 Main St. SE, Minneapolis
$10 fee + your own breakfast costs

Held monthly, the Bootstrappers Breakfast gives those in early-stage technology startups a chance to compare notes on operational, development, and business issues with their peers. The discussion is moderated by Kevin Spreng, an attorney specializing in entrepreneurial and investment issues. The focus isn't on fundraising through venture capital interest, but instead, on sharing ideas about how to grow a business.
65 high technology Articles | Page: | Show All
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