High Technology : Innovation + Job News

Mia is teaming up with 3M and Accenture to bankroll MSP’s most innovative—not to mention financially rewarding—art prize of the year: The 3M Art and Technology Award Competition (#ARTtech16), which is accepting entries now through September 30.
 
The competition promises up to $50,000 in prize money for the lucky winner. The pot is split between a $25,000 cash prize and up to $25,000 more for research, development and travel. According to Mia’s award explainer page, the winner earns the opportunity “to work with Mia, 3M, Best Buy, Microsoft and others to help bring [their] concept to life.”
 
3M Art and Technology Award Competition submissions are intended to slough off “stuffy” artistic conventions and explore the intersection of art and technology. “If you’re passionate about art and technology and have an idea about how to enhance the museum experience [at Mia], here’s your chance to impress the best,” according to Mia’s website. “Our panel of digital experts is looking for innovative, out-of-the box concepts that will inspire, connect, and engage museum audiences—young and old alike.”
 
According to Mia, the best submissions will have all these attributes:

• Innovative and creative: “something that’s never been done before”
• Engaging to viewers and users
• Accessible to everyone, including “historically underserved” audiences
• Multifaceted: offering “deep audience engagement via digital platforms, interfaces, tools, experiences”
• Impressive and impactful: offering a “wow factor” or “pleasant surprise”
• Feasible to implement

Additionally, entrants need to clearly communicate their ideas and demonstrate they can implement their proposals as planned. Contestants can submit as many ideas as they like through Mia’s application form.
 

CBRE, a Los Angeles-based commercial real estate company with a global footprint and a presence in virtually every major American city, is consolidating its entire Minnesota team in one chic downtown Minneapolis location. CBRE’s move is the latest in a long string of companies relocating from the suburbs to MSP’s twin downtowns.
 
The 34,000-square-foot office, on the 19th and 20th floors of LaSalle Plaza, brings together nearly 200 employees previously housed in Bloomington’s Two MarketPointe and downtown Minneapolis’ Young Quinlan Building.
 
CBRE’s Minnesota move is part of the company’s global “Workplace 360” initiative, an ambitious plan to reposition the firm as a millennial-friendly innovation engine. According to a press release, Workplace 360 “promote(s) flexibility, mobility and productivity through technology-enabled, free-address and paperless offices.”
 
In Minneapolis, Workplace 360 means open, airy offices connected by spacious hallways and a custom-designed internal staircase. CBRE’s MSP employees don’t have assigned desks; the bulk of the space qualifies as “collaborative.” (“Employees have the flexibility to choose where they want to work for the day,” says CBRE, “whether at a desk, in a team huddle room or the social cafe area.”) The office is paperless, and designed around employees’ mobile devices, not company-owned desktop computers and printers.
 
“We understand how the office environment impacts culture, productivity, and talent recruitment and retention,” says Blake Hastings, CBRE’s managing director in Minneapolis. “The nature of work is changing in our industry and we see it every day with the clients we serve.” To paraphrase, CBRE is working to attract and retain more talented young people, and keep them engaged and on point.
 
CBRE Minneapolis seems off to a good start. Though CBRE’s corporate Workplace Strategy Team oversaw the buildout in collaboration with its Project Management Team, the company did assign key design, decorating and culture choices to local employees — for instance, they selected the “WELCOME TO MINNESOTA” wall mural centerpiece and developed the office wellness program.
 
“The whole design is inspired by the Mississippi River running through Minneapolis,” says Tiffany Bagley, CBRE Workplace Strategy director, “and fully represents CBRE’s embrace of the concept ‘think globally, act locally.’”
 

Player’s Health, a sports medicine startup based out of COCO’s Northeast Minneapolis hub, has made quite a name for itself in the short time it’s been in Minnesota. Last week, the company earned top prize at Google Demo Day, arguably the United States’ most visible startup pitch competition. Though the award itself doesn’t have a monetary component, more than 100 Silicon Valley financiers attend Demo Day each year, and the event is widely regarded as one of the world’s best places to raise startup capital.
 
Case in point: according to the Star Tribune, more than 100 Silicon Valley-based investment firms listened to this year’s 11 pitches.
 
Though Player’s Health hasn’t raised any funding off the award yet, there’s plenty of opportunity in the weeks ahead. AOL founder and former CEO Steve Case has pledged to personally give $100,000 to any finalist that raises $1 million within 100 days of Demo Day. Player’s Health has a head start: It’s currently in the midst of its first major fundraising push, slated to continue through the spring.
 
Founded by Chicago native and former pro football player Tyrre Burks, Player’s Health uses data to make youth sports safer for kids, less worrisome for parents, and less logistically challenging for coaches and school systems. The company’s signature solution is a HIPAA-compliant platform that builds and stores complete player profiles for youth sports participants.
 
These profiles contain a stunning breadth of information: not just personal health data, but also the type of field each kid plays on, the type of equipment used, where injuries occur and more. Over the long term, Burks hopes to tap an ever-growing body of injury data to produce targeted insights about where, how and why injuries occur. School systems and non-academic sports leagues can then use those insights to mitigate injury risk and ensure injured athletes recover properly.
 
“We manage not just injury, but record proper diagnosis and when patients can come back,” Burks told the Star Tribune. He saw his promising football career cut short by injury. “We need an app that collects this info to better understand the environment and how to make it safer.”
 
Player’s Health’s platform won’t be fully operational until June, when it begins tracking player injuries as they occur. But that hasn’t stopped Player’s Health from lining up a host of clients from Minnesota and surrounding states — including Minneapolis’ Homegrown Lacrosse, a youth lacrosse league.
 

Barely six months after its launch, Minneapolis women’s health startup Ova Woman is taking the reins as a national thought leader on issues routinely — and entirely without justification — dismissed as taboo.
 
Elise Maxwell, Ova Woman founder and CEO (and full-time Carlson School of Management MBA student), calls Ova Woman “the [country’s] only comprehensive, puberty-to-post-menopause women’s health e-commerce community.”
 
Maxwell is funding Ova Woman with the proceeds from two entrepreneurship competitions — $5,000 from the 2015 Acara Challenge and $31,000 from the 2015 MN Cup — and a $5,000 Sands Fellowship grant. According to remarks at October’s Minnesota Venture Conference, she’s targeting a $500,000 raise by June of 2016 and $1.6 million by the end of 2017.
 
Ova Woman publishes a lively mix of frank, useful content through four professional, if not always polished, channels: the Ova Vlog, a video blog usually featuring Maxwell and at least one friend or colleague; Your Questions, Our Answers, an in-depth question-and-answer resource with input from clinicians; Ova Stories, a long-form content portal; and The Speculum podcast, which “explores different intimate health issues,” says Maxwell.
 
Ova Woman is unsparing in its treatment of taboo topics. The inaugural Speculum podcast, for instance, devotes more than 20 minutes to the topic of douching; the second gives similar play to genital exams and anatomical awareness.
 
Maxwell wants to turn Ova Woman into an authoritative resource for fact-based information about women’s health, including potentially embarrassing issues that many refrain from discussing in public.
 
When it comes to women’s health issues, “[t]rust shouldn’t just mean a medical practitioner’s voice,” says Maxwell. “Other women’s opinions and experiences are valuable as well.”
 
Maxwell stresses that Ova Woman’s content isn’t meant to replace or counterbalance clinical advice. In the short term, her aim is to create a friendly, useful portal that offers actionable advice: a crowd-sourced alternative to WebMD.
 
Ova Woman’s longer-term plan — and the reason for its ambitious fundraising goal — is to build out a comprehensive retail platform with common and lesser-known products for a wide range of women’s health needs. There’s a huge market to reach: More than 100 million U.S. women experience incontinence, painful intercourse or period leaks, according to Ova Woman.
 
Ova Woman won’t manufacture its own products, at least to start. Instead, Maxwell plans to aggregate the best women’s health gear on the market for sale on its website, along with detailed, unbiased educational material, reviews and testimonials culled from a growing network of Ova Woman product testers: a cross between Amazon and Consumer Reports, with a laser focus on women’s health.
 
If Ova Woman’s retailing efforts are successful, says Maxwell, the company may launch its own white label — literally stamping its seal of approval on the best women’s health products available.
 

In August, downtown Minneapolis-based healthcare incubator TreeHouse Health teamed up with LifeScience Alley, a local biotech accelerator, for a well-attended demo day called Healthcare Innovation Is Alive and Well in Minnesota. According to Dr. John Blank, a TreeHouse Health cofounder (and, previously, a pediatric oncologist and health system administrator), the event supported TreeHouse’s ambitious-sounding mission: to turn MSP into the “Silicon Valley of medical technology innovation.”
 
Healthcare Innovation is Alive and Well featured lectures and workshops on pressing issues facing early-stage medical technology and life science companies — raising capital, bringing ideas to market, becoming cashflow-positive and more — plus an open, craft brew-fueled networking hour with some of the region’s top healthcare decision-makers.
 
But the real stars of the show were the innovative startups tapped to pitch their solutions to the high-profile crowd. Many were current TreeHouse Health tenants: Cellanyx, whose diagnostic solution could revolutionize the industry’s approach to certain cancers; PerkHealth, a virtual health coaching app that made The Line’s 10 life-changing startups list last year; and VitalSims, an education platform for medical professionals.
 
TreeHouse Health’s portfolio is compelling. But Blank believes that if MSP is to live up to TreeHouse’s “Silicon Valley” promise, more needs to be done to support current and future medical technology entrepreneurs. At the moment, MSP lacks a critical mass of native venture capitalists willing to go out on a limb for potentially disruptive healthcare ideas.
 
Blank cites an early-stage health IT firm, currently in residence at TreeHouse Health, that had struggled to meet a $2 million funding round target with local backers despite a proven technology solution and more than $1 million in annual revenues. After six or seven months of banging on doors in MSP, the firm broadened its search and eventually completed the round with outside investors.
 
“There are plenty of investors interested in the health IT space,” says Blank, a Massachusetts native, “but they’re mostly based on the East or West Coasts and tend to fly over Minnesota.”
 
That’s why Blank and the TreeHouse team are fanatical about boosting the visibility of the companies in and outside of TreeHouse’s portfolio, starting with initiatives like the Life Science Alley collaboration.
 
TreeHouse is also working to attract promising companies that began life in regions better known for tech innovation, like Boston (arguably the capital of the U.S. life sciences industry) and the Bay Area. According to Blank, TreeHouse currently has one tenant from each region, with an eye for more.
 
A key selling point for TreeHouse and MSP in general, he says, is location. “You can easily travel anywhere in the continental United States and back within a 24-hour period, or even in the same business day” from MSP, says Blank. He mentions a TreeHouse tenant that recently flew overnight to Seattle for morning meetings with hospital executives there, then caught an early-afternoon flight back in time for dinner—a nearly 3,000-mile round trip in less than 24 hours.
 
“That kind of turnaround isn’t possible when you’re based on the coasts,” says Blank.
 
Another big advantage for MSP: a diverse array of established medical “payers” (health systems like Mayo and HealthPartners), insurers (like UnitedHealth Group), and device/technology manufacturers (like Medtronic and St. Jude Medical).
 
In other words, local life science and medical technology startups that do manage to find funding here are apt to find lots of paying customers close by, regardless of niche—an important measure of security for any early-stage company. Over the long term, that existing customer base, coupled with a healthy dose of Minnesota nice, should prove enticing for coastal entrepreneurs looking to relocate to a cheaper, business-friendly locale.
 
“[MSP] is one of the few places in the country where you have Fortune 100 companies in every major healthcare sector,” says Blank. “And it’s a friendly enough place that you can make real progress toward building a professional network within a few days.”
 

Minneapolis’ status as the Internet hub of The North (and IOT, or Internet of Things), is now even more secure. Just months after opening an ultra-connected “Meet Me Room” in a new, state-of-the-art facility at the 511 Building in downtown Minneapolis, Cologix has announced a high-profile partnership with Nebraska-based Great Plains Communications, a network provider for carriers and enterprise clients across the Heartland.
 
The deal sees Great Plains establishing a major presence, known as a Point of Presence (POP), at Cologix’s Minneapolis data center, colloquially known as a “carrier hotel.” Great Plains’ Minneapolis POP will serve about 75 clients in MSP, greater Minnesota and other areas throughout The North.
 
According to Lynn Mead, Great Plains’ head of carrier and wholesale communications, the new POP is part of a major expansion and modernization drive that includes the laying of about 5,000 miles of additional broadband fiber in Nebraska, South Dakota and Minnesota.
 
“Across our markets, we saw new demand from customers seeking connectivity into Minnesota, including both carrier and enterprise clients,” says Mead. “Our customers want low latency and high bandwidth connections into The North” — two advantages Cologix’s carrier hotel, part of the “most connected building in Minneapolis,” is equipped to provide.
 
“Cologix’s Minneapolis facility is designed very well and the staff accommodates customers by ensuring the framework to extend fiber is in place,” she adds.
 
Cologix’s staff is thrilled to have another high-profile partner to add to the likes of Netflix, a key bandwidth user at its carrier hotel.
 
“We are thrilled to add a prominent company like Great Plains Communications to the ecosystem of our Minneapolis data center,” says Mike Hemphill, general manager at Cologix’s Minneapolis facility. “As we continue to increase the fiber connectivity with a robust collection of carriers, the network fabric of [The North] is strengthened to sustain the increasing demand we continue to see in this market.”
 
Cologix’s carrier hotel isn’t the only super-connected hub in MSP. The area is home to several other major data centers, most clustered at or near the intersection of several high-traffic fiber lines in downtown Minneapolis. For instance, the AT&T Building hosts IronGate’s main data center, which itself hosts dozens of network providers and high-bandwidth enterprise clients.
 
MSP has emerged as the Internet hub of The North — the most connected place between Chicago and Seattle, and the north-central United States’ only real data center alternative to Chicago — for a host of economic reasons. Two are worth singling out.
 
In 2011, the Minnesota State Legislature passed a 20-year tax holiday on qualifying data center investments, including infrastructure and power generation. That dramatically lowers the cost of opening and maintaining data centers here.
 
MSP’s climate helps, too. The long cold season reduces year-round cooling bills — typically a huge overhead expense for data centers, which are prone to overheating. In places like Dallas and Jacksonville, both popular data center hubs with famously scorching summers, cooling costs can eat into centers’ profits and raise costs for carriers and enterprise clients.
 
 
 

It’s no secret that women and minority entrepreneurs struggle to achieve equal footing with their white male counterparts, particularly in the fast-growing science and tech fields. The problem isn’t unique to MSP: According to American Express OPEN’s much-cited 2014 State of Women-Owned Businesses report, women-owned firms account for 30 percent of all U.S. businesses. Though the number of women entrepreneurs is growing at a rapid clip, women-owned businesses still employ just 6 percent of all U.S. workers — a proportion that hasn’t budged since the late 1990s.
 
MSP’s talented cohort of current and future women entrepreneurs may soon lead the nation on these critical representation and employment metrics. Locally based Technovation[MN] is expanding an exciting new initiative to level the playing field for local women and girls, especially those from disadvantaged backgrounds — and seeing impressive early results.
 
Now in its second year, Technovation[MN] helps small, all-female teams conceive, develop and pitch apps to the thousands-strong audience at the global Technovation Challenge, held in San Francisco every June since the late 2000s.
 
Led by Thomson Reuters veteran (now Bluespire marketing director of product development) Shawn Stavseth and sponsored in part by Code Savvy, the volunteer-run organization draws entrants mostly from MSP (including historically disadvantaged areas like Cedar-Riverside and North Minneapolis), its suburbs and the Rochester area. According to International Falls native Stavseth, the organization plans a push into outstate Minnesota over the next couple years.
 
Technovation[MN]’s volunteer mentors — tech-savvy parents, local tech entrepreneurs or computer science entrepreneurs — walk participating kids through an intense, 12-week course that includes ideation, competitor research, big-picture market analysis, actual app building and pitch practice. According to Stavseth, most apps focus on social entrepreneurship.
 
“The girls are incredibly passionate about the social issues of our time,” she says.
 
Each team works roughly four hours per week, usually after school or at local community centers. Due to the significant time investment required and the fact that mentors are usually busy professionals, Technovation[MN] requires no fewer than three mentors per team — basically a one-mentor-to-one-student ratio. The 12-week course culminates in a pitch day called Appapalooza, when each team debuts its idea.
 
In addition to the usual suspects like local financial institutions and tech companies, says Stavseth, Technovation[MN] has cross-disciplinary classroom support.
 
“We’ve heard from English teachers who frame coding as a second language and make the argument that kids who can ‘talk’ to computers will be more successful than those who can’t,” says Stavseth. Meanwhile, “[g]ym teachers and coaches are enthusiastic about the wearable-device revolution” and want students to know how to make fitness apps for those devices.
 
Despite its newcomer status, Technovation[MN] is clearly on the ascendancy. The global Technovation Challenge’s judging panel chooses a relative handful of finalists — this year featured just 10 teams in all, split between high school and middle school groups — from among hundreds of global entries. Though no MSP teams are slated to compete at this year’s event, a Rochester-area middle school team called Furst Class did make the finalist cut.
 
Technovation[MN] is also growing. The group boasted 28 teams this year, up from 11 last year, and Stavseth expects even more to sign up this coming school year, despite a barebones publicity campaign that turns mainly on word of mouth. But Stavseth cautions that Technovation[MN] can only grow so fast: Since its talented teens need intense support from mentors, the total number of teams depends on how many parents, educators and community members are willing to devote substantial amounts of their time to the cause.
 
“We’re very pleased with how things are going, but we’re also fighting a huge battle,” says Stavseth. “There’s a tremendous need to have girls in computer science and to fight the stereotypes associated with the field.”
 

St. Paul’s Macalester College is aiming to be the first higher education institution in MSP to generate all of its electricity from renewable sources. In mid-April, the college announced a partnership with SunEdison, a leading builder of solar generation infrastructure, to purchase a share of the output of a soon-to-be-constructed community solar garden in rural Dakota County. The deal permits Macalester to offset up to 120 percent of its campus consumption.
 
According to the college and SunEdison, the solar garden should be mostly built out by the end of the year and will be operational sometime in 2016. As soon as the facility is reliably generating enough electricity to offset consumption on Macalester’s campus, the college will be functionally carbon-free (or better). The agreement will remain in force for 25 years, guaranteeing Macalester’s carbon-free status for a generation.
 
“Given our projected consumption patterns and the expected rising trend in electricity rates over the period of the agreement, we believe that the savings over the term of the agreement could be in the millions of dollars,” said David Wheaton, Macalester’s vice president for finance and administration, in a recent release.
 
Wheaton estimates that the partnership will cut the college’s power bills by 50 to 67 percent over the life of the agreement, though the exact savings depend on long-term pricing for carbon-intensive energy sources. It costs more than $1 million annually to power Macalester’s roughly 50-acre campus at current prices. Colorado College, a similarly sized institution near Colorado Springs, has saved more than $1 million per year since switching to solar.
 
Macalester also recently applied for a state grant to fund the installation of solar panels on the roof of Markim Hall, a building on campus. Those panels would supply some of the energy used on that part of campus and would help make up any deficit if output at the SunEdison garden dips temporarily.
 
Given the clear financial benefits — not to mention the cachet of being a sustainable trailblazer — other MSP higher education institutions may soon hop on the solar bandwagon. Just down Summit Avenue from Macalester, the much larger University of St. Thomas has committed to carbon-neutrality by 2035, and may push that timetable forward if circumstances dictate. Even the University of Minnesota, a far larger institution, has made noises about going carbon-neutral. Such moves could be a boon to Minnesota’s solar industry, which employed about 1,000 people last year, not to mention MSP companies like SimpleRay Solar.
 
Macalester’s ambitious 100 percent-solar initiative was made possible by the passage of a solar-friendly law during last year’s legislative session. Though Xcel Energy, Minnesota’s largest utility, recently warned the state utility commission that the law was promoting the growth of “utility-scale” solar installations that could have unintended consequences for the state’s energy grid, the commission isn’t bound to act on Xcel’s recommendations. Macalester officials have expressed confidence that the college can make good on its 100 percent-solar commitment in the still-unlikely event that the SunEdison deal falls through.
 

The U of M’s Carlson School of Business hosted its annual Tech Cities conference on March 27. The event drew hundreds of local innovators, investors and social entrepreneurs to the West Bank on the University of Minnesota campus in search of answers to a simple but vexing question: “How can we strengthen and promote MSP as a source for tech leadership, talent and innovation?”
 
The packed “Supporting Innovators in the Tech Cities” workshop offered a glimpse of the problems the region faces — and offered hope that workable solutions are within reach.
 
According to Matt Lewis, Greater MSP Strategy Manager and workshop moderator, MSP could produce “tens of thousands of jobs by 2020” that the region currently lacks the talent to fill. This “talent gap” is mostly due to two structural forces.
 
First, the accelerating pace of technological change is dramatically reordering the economy, rewarding highly skilled professionals and tech-savvy innovators while challenging those who don’t acquire new, relevant skills. This shift is happening everywhere, but it’s more pronounced in regional hubs like MSP (i.e., the capital of the North), where much of the tech economy’s most exciting, cutting-edge advances are forged.
 
The second structural force is unique to MSP: Despite a strong economy, reasonable living costs and excellent quality-of-life metrics, the region perennially struggles to attract the country’s — and world’s — best and brightest. The upside is that once transplants find their way here, they tend to stick around.
 
“The cliche that it’s hard to get people to come here and even harder to get them to leave holds true,” Lewis noted at the workshop. “We need to change the conversation and make [MSP] a global destination for people who self-identify as innovators.” Doing so would solve both problems: the technological talent gap and MSP’s “attraction issue.”
 
Four self-identified innovators who already call MSP home piped up to offer their ideas. Scott Cole, co-founder of the local tech cooperative Collectivity, proposed a “comprehensive tech accelerator” that would combine and magnify the efforts of existing local initiatives like the Minnesota High Tech Association, Greater MSP, MN Cup, university-based tech groups and others. The ultimate goal: to create a pervasive culture of innovation wherein cash-strapped innovators with great ideas effortlessly connect with investors, mentors and customers.
 
Melissa Kjolsing, MN Cup director, highlighted the tech world’s persistent gender gap — an issue that has gotten plenty of press in MSP and elsewhere. She noted that while women run 30 percent of all U.S. companies, most are solo operators. The solution: “deeper peer networks for women,” she argued. Women entrepreneurs need positive role models, namely successful female business owners who have made it through the male-dominated startup gauntlet. 
 
Kjolsing noted that though MN Cup has yet to achieve parity, the prestigious tech competition is spearheading the drive to empower women entrepreneurs: In 2014, about one-third of MN Cup entries came from all-women teams, up from 25 percent the previous year; 45 percent of 2014’s teams had at least one woman on the roster.
 
Lee George of the James J. Hill Reference Library argued that MSP must do more to support ambitious people at the two biggest “pinch points”: the moment when the entrepreneur moves from tinkering with an idea in their spare time to quitting their day job and fully plunging into their startup; and the exit strategy, or the point at which the entrepreneur steps away from the company he or she founded to focus on a new project or simply “cash out.”
 
Without support from mentors, investors and talented employees, many entrepreneurs never make it past the first pinch point, and their dream either dies or goes into a long slumber. Meanwhile, those fortunate enough to be able to contemplate an exit strategy often don’t know how to forge the connections with leaders of the established firms that typically buy up successful startups. It’s worth noting, for instance, that though MSP has a deep bench of Fortune 500 firms capable of financing numerous buyouts, one of the region’s most successful startups — SmartThings — turned to a Korean firm (Samsung) for its exit.
 
George advised existing organizations like Greater MSP and MHTA to adjust their programming in two ways: creating better and more numerous mentorship opportunities for soon-to-be-full-time entrepreneurs, and deepening connections between successful startups and major firms.
 
David Berglund, the fourth speaker, exemplifies the power of connections between MSP’s startup community and established business players. He’s UnitedHealth’s “entrepreneur in residence” and co-founder of Hoodstarter, a real-estate crowdfunding app. At UnitedHealth, he’s more or less in charge of “building healthcare startups from the ground up.”
 
“We need to accelerate the pace of innovation in large, sometimes bureaucratic corporations,” he said. “To do that, we need to get off the corporate campus and out of our comfort zone.”
 
Berglund believes that MSP’s major corporations need to communicate better and experiment more, both with one another and with the region’s entrepreneurs. Knowledge — and knowledge sharing — is power, after all. Berglund’s dream: an MSP in which big companies, successful small businesses and fledgling startups “forge partnerships and come together without fear of stealing each other’s ideas.” Such an outcome could accelerate the pace of business formation here and transform MSP into a truly global innovation hub.
 
 

Confluence Capital, the groundbreaking MSP venture capital (VC) fund, is now Matchstick Ventures. The rebrand comes amid a flurry of other changes announced early last month, notably the addition of several high-profile investors and advisors.
 
New investors, according to Minneapolis-St. Paul Business Journal, include Seth Levine, managing director at Boulder-based Foundry Group, a venture capital fund; Lisa Crump, co-founder of Eden Prairie-based digifab giant Stratasys; Scott Burns, CEO of St. Paul-based GovDelivery, a software communication platform that serves government organizations; and Darren Cotter, founder of St. Paul-based online rewards company InboxDollars. Advisors include Levine and Joy Lindsay, principal at Minneapolis-based StarTec Investments.
 
But why “Matchstick”?
 
“The ‘Matchstick’ name rings truer to the entrepreneurs and startups that we exist to serve,” says founder and managing director Ryan Broshar, who also founded beta.mn and Twin Cities Startup Week. “Our goal is to act as a catalyst — not just for the companies we invest in, but for MSP’s startup economy as a whole.”
 
To date, Matchstick/Confluence has invested in 14 early-stage companies. Though most are headquartered in the MSP area, there are a few outliers: Denver, Seattle, Chicago, St. Louis, and Lincoln, Nebraska. Far from diluting Matchstick’s local potency, Broshar sees these wayward investments as central to the fund’s mission: “evangelizing” MSP’s emerging tech ecosystem.
 
“We talk up the region every time we interact with out-of-market clients and prospects,” says Broshar, adding that his company gets at least one inquiry from outside entrepreneurs or VC funds who’ve heard about Matchstick and are excited about what’s happening in MSP. “Interest in the Twin Cities is definitely gaining momentum.”
 
“The writing is on the wall for MSP’s startup scene and capital ecosystem,” he adds.
 
Broshar should know what an up-and-coming tech hub looks like. He lived in the Denver-Boulder area in the late 2000s and early 2010s, when the Front Range’s tech economy was blowing up. Broshar threw himself into the local scene, parlaying a pending MBA at UC-Boulder into a gig as a consulting firm principal. He networked with and advised ambitious Front Range entrepreneurs for a few years, then turned his focus to finding and investing in early-stage companies through partnerships with the Foundry Group and other local VCs.
 
When he moved back to MSP in fall 2012, Broshar found the same entrepreneurial energy he’d grown accustomed to in Denver-Boulder. But with few notable VC firms and a relatively conservative commercial financing ecosystem that eschewed risk, many local startups had to look elsewhere for capital.
 
“We’re blessed with a lot of gritty entrepreneurs who just go to work and get stuff done, rather than talking about what they have yet to do,” says Broshar. “But even the most talented and ambitious entrepreneurs can’t survive without capital,” along with the mentoring and peer support services provided by organizations and initiatives like Broshar’s beta.mn and Twin Cities Startup Week.
 
“The goal was, and still is, to put MSP on the map,” he says.
 

Cologix, one of the country’s most prolific data center operators, recently unveiled a new state-of-the-art facility in Downtown East’s 511 Building, the company’s MSP headquarters. According to a company press release, the 28,000-square-foot hub has space for more than 250 server cabinets and upward of 70 network connections, making it the most connected piece of real estate between Chicago and Seattle — the Internet capital of The North.
 
“People think of the Internet as this ethereal cloud,” says Graham Williams, chief operating officer, Cologix. “But in reality, that cloud is very solid. The world is crisscrossed with untold miles of fiber optic cables and dotted with servers, routers and switches. That physical infrastructure — the Internet’s plumbing — intersects at data hubs like [the 511 Building].”
 
The heart of Cologix’s new facility is the Meet Me Room, the hub where the networks actually intersect. Clients who rent space in the facility can pick and choose which networks to use. The setup is akin to a co-working space: Tenants pay to be there and provide their own equipment, but they get access to most of the service providers operating in MSP.
 
They also enjoy lower latency (faster connection speeds), which is particularly important in the video streaming business. “We enable companies like Netflix to get closer to their end users,” explains Mike Hemphill, general manager of Cologix’s Minneapolis facility. “They’re pushing copies of the shows and movies people want to watch to their servers here in Minneapolis, rather than calling everything up from California and traversing thousands of miles of fiber to get here.”
 
Increased competition for clients in the Meet Me Room reduces’ service providers’ pricing power by as much as 20 to 40 percent, says Williams. But it’s a worthwhile tradeoff. The alternative is an expensive, piecemeal approach wherein providers lay fiber all the way to clients’ offices, wherever they might be located. Depending on the fiber’s final cost per mile, directly connecting to clients could end up being less cost-effective than using a facility like the 511 Building.
 
Cologix’s new data center also houses the Midwest Internet Cooperative Exchange (MICE), a nonprofit, donation-supported network exchange used by smaller Internet service providers and telecoms as well as data-hungry content providers like Netflix. MICE was devised in 2010 to improve MSP-area bandwidth and connection speeds, and to level the playing field for smaller operators. FWR Communications, Cologix’s predecessor in the 511 Building, donated a modest square footage to house MICE’s first servers; with more than 50 participants at last count, MICE is now a major Cologix tenant.
 
“It’s an exciting time to be in this business,” muses Hemphill, whose telecommunications career has spanned nearly a half-century. “I’ve had more fun in the last decade than at any time previously.”
 

Visual, a Northeast Minneapolis startup run by co-founders Chuck Olsen and Taylor Carik, has an ambitious vision for “social VR,” a blend of social media, virtual reality and everyday experience. The company’s current app, an interactive social dashboard that hovers in an immersive, computer-generated 3D environment, will soon be available on two virtual reality headsets: Samsung’s Gear VR, an affordable consumer model, and Oculus’s DK2, a higher-end device ideal for gaming.
 
Visual’s app grew out of Futurekave, a far-reaching “virtual world platform” developed by Olsen and Carik. To help build it, the pair tapped Dual Reality Games, a group of talented app designers with members in MSP and Oregon. Users sync their social media profiles with the app, manipulating photos, posts, tweets and profile information using a keyboard or touchpad. Visual only works with Instagram at the moment, but other social networks are in the works.
 
Social VR’s time has come, explains Olsen. “Facebook is hiring 1,200 employees right now,” he says, “many of whom will be working on building a VR presence for the company.”
 
“But Facebook [and other tech companies like Apple] aren’t VR natives, like we are,” he adds. “That puts them at a disadvantage.”
 
As a small, lean startup, Visual is more nimble than Facebook et al. And as possibly the first independent social VR company anywhere in the country, Visual is uniquely positioned to take advantage of what Olsen and Carik believe will be a fundamental change in the public’s relationship with mobile computing and connectivity.
 
In the short term, VR is about to get a lot more accessible. Samsung is planning a big consumer push later this year for its $200 Gear VR headset, a goggled apparatus that syncs up with the Note 4 smartphone’s screen to immerse wearers in a 360-degree VR. Thus far, the Note 4 is the only piece of hardware that works with Gear VR, though (according to Olsen) that’s not as big of an obstacle as it seems.
 
“[Gear VR] is going to be under Christmas trees this year,” predicts Olsen. “If you’ve got a free phone upgrade, it’s not a huge commitment to get a Note 4 and then buy the headset.” And Samsung may tweak the Gear VR interface to work with other mobile devices, he adds.
 
Visual’s social VR app is also compatible with the DK2, a similar headset device from Oculus, the company responsible for many of the recent advances in VR interfacing.
 
In both cases, the headset experience is incredibly lifelike, with realistic sound, HD-quality video and just-barely-perceptible lag when the user moves his or her head. The big drawback, explains Olsen, is that VR is not yet interactive: You can move your head to look at different parts of the virtual environment, but you can’t reach out and manipulate your surroundings.
 
Visual’s social VR system could solve, or at least mitigate, the interactivity problem. Olsen and Carik imagine headset-wearing concert-goers using Virtual’s app to post real-time images and video with friends who aren’t at the event, or meet and engage with other social VR users who are present. While users wouldn’t actually be able to manipulate the performers or anything else about the environment, they’d be able to process and share it socially.
 
Olsen, Carik and the Dual Reality Games crew aren’t placing all their eggs in the headset basket, of course. Longer-term, they’re interested in the concept of augmented reality: a virtual, Internet-connected field of vision overlay, like a much more advanced version of Google Glass. They see Visual as a “hardware agnostic” app that can handle the social element of augmented reality, which some technology experts believe is the future of mobile Internet — the post-smartphone world.
 
“Imagine having your social dashboard in the corner of your living room, waiting for you to engage with it,” says Olsen. “That could really be powerful.”
 

SPS Commerce, a retail supply-chain software company that occupies six floors in downtown Minneapolis’ Accenture Tower, has added about 200 employees since 2012. “And the rate of hiring is not slowing down,” says Peter Zaballos, VP of marketing and product. SPS Commerce has more than 800 employees as of this month. The company just added a new floor to its downtown headquarters, with an option for additional space in the building.
 
“We’re positioning to become a world-class, global supply-chain business” in the tech space, he adds. “That’s making us a magnet for talent in the Twin Cities region and around the world.”
 
Most of SPS’ employees work at its Minneapolis headquarters. The firm also has a big presence in New Jersey, as well as international operations centers in Beijing, Hong Kong, Mumbai, Sydney, Melbourne, London and Kiev. Each office will grow “organically” even as SPS adds employees in Minneapolis, says Zaballos.
 
SPS Commerce’s ambition got big boost last month, winning MHTA’s prestigious Tekne Award for best software platform in the “established company” category. SPS was one of 12 Tekne winners this year, out of more than 100 entrants. According to an SPS release, the company won plaudits for “embracing innovation and the changes that today’s retailers are facing, while giving global organizations access to an established online trading community.”
 
“The Tekne win really communicates to the local and national tech communities that SPS is on the forefront of the ongoing reinvention of retail,” says Zaballos. “We’re on the move.”
 
SPS Commerce is also raising its profile in the booming Twin Cities tech community. The company’s CEO and CTO earned Minneapolis/St. Paul Business Journal’s prestigious Titans of Technology Award in September. And the company routinely hosts events for programmers and business professionals at its offices.
 
“We enjoy sharing our success with other members of the local technology community,” says Zaballos. “It’s a great opportunity.”
 
Zaballos and other SPS executives are thrilled with the Twin Cities tech community’s progress. Zaballos came to SPS less than three years ago, after extended stints in major coastal tech hubs: Silicon Valley, Boston, Seattle. He’d never set foot in the Twin Cities. But he was “stunned by the breadth, vibrancy and depth” of the industry.
 
“The quality of the people here is amazing,” he says. Local professionals are also “aware of the game they’re playing”—a game, Zaballos argues, largely controlled by elites in the Bay Area and New York. “To compete on a global basis, you need to play in that league,” which the Twin Cities does very well, he says. Finding competent, talented workers is easy here.
 
SPS Commerce helps retail clients manage and expand digital sales channels, providing analytics, inventory management and seamless interfacing with suppliers and other software platforms.
 
“Things that seem easy to do when you’re shopping online are actually super complicated for retailers,” says Zaballos. A dramatic increase in mobile device use complicates matters further. “Mobile shoppers are especially high maintenance,” he says.
 
More than 55,000 retailers and suppliers now use SPS’ solutions. But most local residents have still never heard of SPS Commerce, despite current revenues of nearly $130 million.
 
When Zaballos took his current job, the company had no marketing department to speak of. “Our sales team was and is really good at getting suppliers into our network,” he says. “We got to around $100 million in revenues and tens of thousands of users before anyone [outside the retail industry] had heard of us.”
 
SPS kept its low profile despite an IPO back in 2010. It’s listed on the NASDAQ, under the ticker symbol SPSC. “Being public is a big advantage for us,” says Zaballos. “Prospective clients and employees can look at our annual reports and financial disclosures and know that we’re a fundamentally sound, growing business.”
 
One item of note in SPS’ public filings: The company currently has $170 million in cash on hand, an impressive sum for a firm of its size. That cash pile will support SPS’ aggressive hiring and expansion drives—and possibly spur more exciting investments in the future.
 
And the company is finally investing in publicity for itself. “We’re thrilled to be telling our story,” says Zaballos. “We want talented Twin Cities professionals who share our values to see a future with us.”
 
Current SPS Commerce Job Listings in Minneapolis
 

1. Account Executive
2. Business Analyst
3. Marketing Acquisition Manager
4. Software Engineer
5. Supply Chain Strategist

 
 

Outsell, based on the 32nd floor of the Capella Tower in downtown Minneapolis, is one of the fastest-growing companies in the U.S. according to Inc. Since 2010, Outsell has roughly tripled its employee base and quadrupled its revenue. The company earned a spot (#455) on the 2014 Deloitte Fast 500, a closely watched list that tracks revenue growth at public and private North American companies. According to Deloitte, Outsell is Minnesota’s third-fastest growing tech company.
 
And Outsell shows not signs of slowing down. The company has added 15 jobs this year, bringing its total headcount to more than 100, and predicts an equal or greater number of employees for 2015.
 
“Our people are our most important asset by far,” says founder and CEO Mike Wethington. “We’re constantly looking for talented, self-starting candidates, especially web developers, data analysts and marketing specialists.”
 
Outsell’s current office space measures about 18,000 square feet, with a variety of spaces that encourage collaboration. Depending on the pace of hiring next year and beyond, says Wethington, his company may soon need to exercise an option to expand into the Capella Tower’s 31st floor.
 
Outsell was started in 2004, when Wethington, a self-described “serial entrepreneur,” bought Judson Bemis’s Solv Technology, which had developed an online lead generation solution for auto dealers. Wethington and his first employees improved and streamlined the platform, developing analytics to predict customer preferences and deliver automated, high-value marketing material.
 
For instance, a recent car buyer might receive emails or texts advertising oil changes, tune-ups and vehicle-appropriate accessories consistent with the buyer’s past purchasing and web navigating habits. “We customize and automate everything for the dealers so they can devote more resources to selling and fixing cars,” says Wethington.
 
“The experience is brand-consistent, like Amazon,” he explains, allowing independently owned and franchised dealers to use the same platform and analytics as others selling the same model. Outsell currently works with about 1,000 U.S. dealers and seven automotive brands, sending out automated communications to about 10 million consumers per month.

If you’ve recently purchased a new or used vehicle from a franchised dealer, there’s a good chance Outsell is behind the marketing emails and texts it sends you.
 
Despite its reach, there’s room for Outsell to grow. Dealers spend well over $1 billion per year on marketing, says Wethington, and many don’t yet use automated customer-contact solutions.
 
Even as Outsell racks up impressive growth figures and finds new ways to improve the customer experience, the company devotes significant resources to employee retention. The company offers unlimited paid time off, with no questions asked, and no distinction between sick days and vacation time, a rarity in the modern workplace.
 
“We place a lot of trust in our employees,” Wethington explains. “We expect them to take care of their work and reward them for holding up their end of the bargain,” –i.e., getting their work done on time.
 
Outsell also offers a profit sharing program for all associates, including entry-level employees, as well as performance bonuses, a matching 401(k) and tuition reimbursements for associates looking to further their careers with advanced degrees.
 
In a typical year, says Wethington, Outsell devotes 3 to 5 percent of total operating income to charitable contributions. The company’s employee-led Caring Committee partners with the Minnesota Keystone Program to distribute financial resources and manpower to groups like the Make-a-Wish Foundation, Boys & Girls Clubs of America, and the ASPCA.
 
Giving back to the local community is a win-win experience for employees, says Wethington—just like every workday at Outsell. The company’s perks earned it a spot on a recent Star Tribune list of best Minnesota work environments.
 
“We love being based in the Twin Cities,” he says. “We’ve got a talented, smart, kind workforce that understands the value of hard work and doing the right thing.”
 
Outsell Jobs in Minneapolis
 
Senior Software Analyst

Senior Software Developers
 
 

The Minneapolis Downtown Council recently announced that Aimia, a consumer loyalty and engagement management firm, would move its U.S. headquarters, along with more than 300 employees, to a 50,000-square-foot space in the North Loop’s Butler Square building. Aimia previously occupied space in a Plymouth office park near I-494.
 
Aimia is the latest company to relocate, expand or retain space in downtown Minneapolis since the launch of the Minneapolis Downtown 2025 Plan. Other notable companies include CenterPoint Energy, Valspar, XCel Energy, Olson and Be the Match. Three years into the Downtown 2025 Plan, the momentum is palpable.
 
“Aimia saw the merits of moving downtown...and all the opportunities and progress on display here right now,” says Steve Cramer, president and CEO of the Minneapolis Downtown Council & Downtown Improvement District. “Our mission is to create an extraordinary downtown.”
 
One of the core goals of the Downtown 2025 Plan is to create a more vibrant, energetic downtown for workers, businesses and residents. Another goal is to accelerate economic and cultural progress by eliminating the either/or distinctions between those three categories. The plan recognizes that a truly world-class downtown core needs a diverse mix of uses, and a high density of people, ideas and economic activity.
 
“Cities with a strong central business district thrive because they have companies, big and small, working in close proximity [and collaborating] with clients and partners,” Cramer says. “When the area as a whole succeeds, it creates new opportunities for everyone involved.”
 
The addition of thousands of new residents has raised downtown Minneapolis’s profile, too. With a broader, more creative pool of potential recruits within walking or biking distance, talent-driven companies like Aimia find it much easier to justify the temporary cost of moving downtown.
 
“Our population has risen to more than 37,000 people,” Cramer says, “and we’re seeing apartments and condos under construction across the area.” The increasing density of creatives downtown dovetails with other Downtown 2025 Plan initiatives, including the recently announced Minneapolis Idea eXchange and a street beautification partnership with the University of Minnesota’s College of Design.
 
Aimia’s move is just another sign of how far downtown Minneapolis has come. “For the first time in decades, we’re seeing an incredible trend of people moving in toward the downtown area,” Cramer adds.
 
“Downtown Minneapolis is a leader for the [Twin Cities] region,” he adds. “If it thrives, the region as a whole thrives.”
 
Aimia Jobs in Minneapolis
 
Director of Business Development - CPG, Retail, Finance
 
IT Sales Engineer
 
Mobile Delivery Manager