Strong Local Economy : Innovation + Job News

Now it's down to 19.
 
The eighth annual Minnesota Cup continues to draw attention in announcing the division finalists, whittling the top contenders down to just three companies in each category. The contest features high tech, bioscience and health IT, clean tech and renewable energy, general, and student divisions. Four contenders are competing in the social entrepreneur category.
 
Finalists include OrthoCor Medical, which proposed ideas for noninvasive therapeutic devices to alleviate pain, and PreciouStatus, a mobile application that allows care providers to interact with patients' family members throughout the day.
 
Division finalists will deliver an eight-minute presentation to a panel of judges, and winners will be announced on August 29. The grand prize will be awarded on Sept. 6 at an event held at the University of Minnesota.
 
This year's competition has been closely watched, in part because it offers the highest total prizes in the Cup's history. One finalist from each division will receive $25,000 in seed capital ($10,000 in the student division), and runners-up each receive $5,000. The grand prize winner will get an additional $40,000.
 
Cup co-founder Scott Litman believes that the contest serves as a catalyst for innovation in the state. He notes that selecting the top ideas is always a challenge, since the Cup draws impressive applicants every year. Those who've won in the past or have been finalists went on to attract significant investment, he adds: "Our track record shows the level of intelligent and inspiring entrepreneurs in the state is truly remarkable."
 
Source: Scott Litman, Minnesota Cup
Writer: Elizabeth Millard

Minnesota Cup Final Awards Event
 
September 6
University of Minnesota, McNamara Center
5:00pm - 7:30pm
free
 
One of the liveliest entrepreneurial competitions, the Minnesota Cup has been a source of innovation and fresh ideas since its founding. (Read about this year's finalists here.) In its final awards event, attendees will get to hear elevator pitches from the division winners and hear the announcement of the grand prize winner. The event promises to be an ideal networking opportunity for the state's entrepreneurial community.
 
Work/Life & Flexibility Expo
 
September 13
Minneapolis Marriott Southwest
8:30am - 4:30pm
$50 - $150, depending on registration type
 
As the economy recovers, engaging highly skilled talent will be crucial for all organizations, and employee retention will be vital. This conference offers insight and strategies for building a work environment that attracts the best talent and positions a company for future growth.
 
Minnesota Blogger Conference
 
September 22
Allina Health
Midtown Exchange Building, Minneapolis
9:00am - 5:00pm
free
 
The first Minnesota Blogger Conference, in 2010, was such a success that organizers decided to keep it rolling. The highly popular conference--tickets are released at strategic times, as for a rock concert--will feature speakers who've taken blogging to new levels, including turning their blogs into business opportunities. Last year's sessions also included insights on legal issues, writing topics, and video blogging.
 
Food + Justice = Democracy
 
September 24 - 26
Radisson Plaza Hotel
35 S. 7th St., Minneapolis
Ranges from $85 - $195 depending on registration type
 
A distinctive national meeting, this event brings together food-justice activists with the aim of pushing political leaders to prioritize a fair, just, and healthy food system. Instead of traditional breakout sessions, the meeting features "People's Assembly sessions," connecting attendees with fellow participants in order to craft elements of a national food-justice platform.

Online broadcast reporting service BringMeTheNews (BMTN) made some news itself recently, when the company announced that it had raised $3 million in capital from the Shakopee Mdewakanton Sioux Community (SMSC).
 
In announcing the funding infusion, SMSC chairman Stanley Crooks noted that the company is the face of 21st century media since it's local, social, and mobile.
 
The SMSC has been a sponsor of the firm for almost two years, but this major funding boost will help to spark even more growth, according to founder Rick Kupchella.
 
He notes that BMTN has grown to nearly 20 employees, including some notable names in the local news scene. In addition to Kupchella, who's been an Emmy-winning investigative reporter and TV news anchor in the Twin Cities for two decades, BMTN includes other high-profile news reporters and producers like Don Shelby, Eric Perkins, William Wilcoxen, and Amy Hockert.
 
"There's a lot to be proud of with the tremendous growth we've seen in BMTN in just three years," Kupchella notes, adding that the firm has aggressive plans for growth in the next three years.
 
The investment will allow BMTN to enhance the user experience of the site, he says, as well as provide the funding needed for improving the speed and relevance of the content. Also, the company is eyeing additional markets. Already, the news delivery system has been dubbed the top radio newscast in the state by the Society of Professional Journalists, and Kupchella is hoping to bring that expertise and reputation to other areas.
 
Source: Rick Kupchella, BringMeTheNews
Writer: Elizabeth Millard

The Minnesota Angel Tax Credit Program recently celebrated its second birthday, and boasts some impressive numbers for a two-year-old.
 
Since its launch in July 2010, the program has attracted more than $126 million in private investments for small, entrepreneur-led companies in the state. According to Mark Phillips, Commissioner for the Minnesota Department of Employment and Economic Development (DEED), over 100 businesses have received funding in 2012 alone. Companies attracting the most attention from investors and angel funds tend to be software, biotechnology, and medical device firms.
 
The program has been a tremendous help for promising businesses, Phillips believes. Some of the companies earning funds could be the state's next big high-tech success stories, leading to job growth and a more robust local economy.
 
Run by DEED, the program provides incentives to investors or investment funds, steering them in the direction of putting money into emerging companies, particularly those focused on high-tech endeavors. The Angel Tax Credit gives investors a credit of 25 percent for investments of at least $10,000, and the past few years have shown that plenty of investors are eager to take advantage of that incentive while helping to get innovative companies off the ground.
 
Over two-thirds of $12 million in tax credits allocated for this year have already gone out, Phillips noted, and DEED expects the remaining credits of about $3.3 million to be allocated by the end of August.
 
The program is slated to continue operation through the end of 2014, and if everything works as DEED expects, close to $236 million will have been invested in Minnesota high-tech startups by the time the program ends.
 
Source: Mark Phillips, Department of Employment and Economic Development
Writer: Elizabeth Millard

Forget the Olympics: for a truly ferocious competitive environment, take a look at the Minnesota Cup.
 
The annual competition seems to keep gaining prominence and momentum every year, and recently announced the semi-finalists for its eighth go-round.
 
Designed to accelerate the development of the state's most innovative business ideas, the Minnesota Cup gives applicants the opportunity to compete for a share of $200,000--up from $185,000 last year--and to network with individuals and organizations that can help turn a business plan into a reality.
 
Judges chose 49 entrepreneurs, inventors, and innovators for the second round of the competition, and Cup co-founder Scott Litman notes that this year is full of exciting and strong business ideas.
 
"We love seeing all the excitement around the program, and it does seem that we see more applications every year," he says. "Everyone is very supportive of the competition."
 
The range of semi-finalists is broad, from a yoga studio that specializes in pre- and post-natal classes to a holistic treatment company to a web application developer for forms processing. Companies include BuyerCurious, Omnicron Health Systems, QuadROI, and EnergyPrint.
 
During this round, the semi-finalists will be paired with entrepreneurial mentors who will help them refine their business plans and presentations. Finalists will be chosen in late August, and winners announced in early September.
 
Source: Scott Litman, Minnesota Cup
Writer: Elizabeth Millard

Twin Cities residents looking for information on urban food growing, zoning changes, permits, community kitchens and other food topics now have a one-stop online location, thanks to the City of St. Paul.
 
The Healthy and Local Food site is intended to aid the growing number of community organizations and individuals who are working on local food issues like food security and backyard farming.
 
"One of the things we kept hearing from the community was that they'd like to have a central source of information about local food issues," says Anne Hunt, the city's Environmental Policy Director. "We developed this to help people navigate all the information that's available, especially since there's such a growing interest."
 
Through the site, visitors can find out about permits for having chickens in their yard, for example, or the rules regarding compost on an urban property. The site also offers guidance on finding resources like gardener networks and food share programs.
 
St. Paul supports numerous initiatives designed to increase the production and distribution of sustainable, locally grown food. Recently, the city broke ground on the development of a huge greenhouse on Rice St. where fruits and vegetables will be grown for Twin Cities grocery stores.
 
The Healthy and Local Food site lists a few of these projects, including micro-farm collective Stone's Throw Urban Farm and a master plan for turning Lowertown into a massive urban farm.
 
"We're trying to make things really clear and straightforward for people," Hunt says. "Hopefully, this will accommodate even more access to urban agriculture."
 
Source: Anne Hunt, City of St. Paul
Writer: Elizabeth Millard

When it comes to predicting a product's shelf life, or detecting leaks or aromas in packaging that could affect flavor, people around the world turn to Minneapolis-based MOCON.
 
For over 40 years, the company has been a leader in the development of testing services and instruments, and its capabilities are impressive. Numerous clients depend on the firm for insights on packaging, cost reduction, sustainability, and food safety.
 
Because it's often considered the industry standard when it comes to such tests (many scientific papers note that researchers did a "MOCON test" to demonstrate a specific result), it's not surprising that the company is growing at a nice clip. Now at 150 employees, some have been brought on as the result of acquisition, while the rest were hired to meet demand.
 
"The packaging industry is a hidden but huge industry," says the company's marketing manager, Guy Wray. "Think about everything around you that has packaging, and you'll get an idea of the scope of this work."
 
MOCON's expertise lies in detecting moisture and oxygen levels within packaging, as well as other factors. Those two issues in particular can destroy food flavor, affect product safety, and significantly shorten shelf life. After all, nobody wants soggy potato chips.
 
About 90 percent of the company's product development is done locally, but it also relies on scientists and engineers in Germany, China, Texas, and Colorado.
 
"We feel very lucky to have gotten to the point we're at," says Wray. "We've become the Hoover or the Kleenex of the industry."
 
Source: Guy Wray, MOCON
Writer: Elizabeth Millard

Founded in 1991 by entrepreneur Tom Salonek, Intertech has grown from a one-person operation to the largest combined software-developer training company in the state.
 
The firm's consulting services and software development give the company an even greater edge and now with more facility space, Intertech is making a splash nationally as well as locally.
 
Recently, the company moved to a new building, and although it stayed in its hometown of Eagan, it nearly doubled the amount of square footage of its offices and training rooms.
 
In addition to expanding geographically, the company took the opportunity to boost its virtual technology as well, giving its training spaces a high-tech flair that's increased its client base as a result.
 
"People have greater ability to attend classes virtually, and that's significantly increased enrollment for us," says Salonek. "Also, it's driven our consulting to a higher level as well." For example, the company just signed a consulting contract with a firm in South Korea, and will conduct business via the virtual technology at the new facility.
 
Salonek believes that the growth will remain robust, and he predicts that the company should bring in about $12.5 million this year. Several new employees have been added just in the past month, and hiring should continue at a steady pace, Salonek notes, especially in the sales and technology departments.
 
"We're looking forward to building out additional offerings and bringing on more clients, in addition to serving existing clients," he says. "It's an exciting time for us."
 
Source: Tom Salonek, Intertech
Writer: Elizabeth Millard

Sometimes, the decision about whether to "build or buy" can lead to even greater things than a more efficient software system.
 
At least, that's what happened when convention and visitors association Meet Minneapolis began looking for a better database system in 2003. The organization found that a solution didn't exist that was specific to the destination marketing industry. After deciding to build their own, the phones started ringing.
 
"We heard from other convention bureau leaders who told us that if we built a solution, they were interested in buying it," says Mark Lynch, vice president of sales and marketing at iDSS (Internet Destination Sales System), the company that was formed to market the subsequent system.
 
Recently, iDSS noted a significant new enhancement that will provide destination marketing organizations with the ability to measure the economic value of an event, and calculate the return on investment to the local community. In other words, if a city wants to know how much sales tax and lodging tax a certain convention would generate, iDSS could give the answer. Other factors can also be reported, like the anticipated number of jobs created as a result of an event.
 
The advancement comes as part of a technology partnership with Destination Marketing Association International, the trade association for Meet Minneapolis and other convention bureaus. Lynch notes that it should help iDSS get even more traction as it continues to expand.
 
"We're adding new clients every day," he says. "Many organizations have been waiting for the capability that we have to offer. So, we're looking forward to what's ahead."
 
Source: Mark Lynch, iDSS
Writer: Elizabeth Millard

In a January opinion piece in TechCrunch, entrepreneur Jon Bischke suggested the most successful urban leaders are those who view cities like startups. CEOs for Cities, a national network of urban leaders dedicated to creating next-generation cities, will examine that premise at its 2012 Spring National Meeting: The City As a Startup--Creating Demand, Attracting Talent, Taking Risks, and Going to Scale.

The meeting is set for May 17-18 at Great American Ball Park in Cincinnati and is made possible with support from The Carol Ann and Ralph V. Haile Jr./U.S. Bank Foundation. Former AOL Chairman and CEO Steve Case will deliver the morning keynote and also sit on a panel conversation about Startup America.

CEOs for Cities will also release its latest City Vitals report, a framework for measuring the success of cities. Other panels include considering Songdo, South Korea as the planet's smartest city and using the collective-impact approach to catalyze social change. There will also be opportunities to tour Cincinnati attractions and examples of success.

Register here. View a draft agenda here.

Issue Media Group, the parent company of The Line, partners with CEOs for Cities in exploring new options for urban growth.

About 13 years ago, business partners Cameron Henkel and Dave Gooden were both looking for lake property and shared their war stories about going through newspaper listings and calling multiple realtors.
 
"We wondered why there wasn't a one-stop shop for that kind of thing," says Henkel. "So, we decided to create it for ourselves." The pair had been selling computer equipment online, and began adding cabin rentals on their site as well. About a year later, they had about 600 realtors and thousands of properties on their site, LakePlace.com.
 
They decided to expand in 2006 and become a real estate brokerage. That meant giving up their classified-ad revenue and taking a big chance. Henkel says, "We had to make a bet that being a brokerage would be better. It was hard to make that gamble, but it paid off."
 
They added another site to the lineup, LandBin.com, and opened offices in Brainerd, Hayward, and Wayzata. They employ 30 real estate agents and LakePlace.com has become the second most visited site in the Midwest, with 1.5 million visitors a year.
 
"We're growing every day, I'm not kidding," says Gooden. "Hopefully, we'll be making some exciting announcements this year. We have a solid roadmap of where to go."
 
The founders, who've been friends since kindergarten, foresee abundant growth through acquisitions and hiring. And for site visitors, there's finally a place to shop for cabins and land without resorting to the classifieds.
 
Source: Cameron Henkel, Dave Gooden, LakePlace.com
Writer: Elizabeth Millard

Now in its eighth year, the Minnesota Cup is ready to award $200,000 in prize money to innovative entrepreneurs, inventors, and small business owners.
 
Designed to award breakthrough business ideas, the competition has six main categories: bioscience and health IT, clean tech and renewable energy, general, high tech, social entrepreneur, and student. Since 2005, more than 6,000 people have participated in the competition, and finalists from the last three rounds have gone on to raise $45 million in capital.
 
The competition's co-founder, Scott Litman, notes that the program expands every year, which has always been one of its major goals. Also, the number of partners increases--this year, UnitedHealth Group and Proto Labs have signed on as partners, bringing more prize money to the competition.
 
In terms of trends, Litman says he's seen a good deal of energy around high tech ideas in the past few years, and he expects that this year should continue that trend.
 
The program's judges are expecting a last-minute rush--and that's meant literally. Litman says, "About 10 percent of our entries come in during the last hour of the competition, and some come in during the last couple minutes. It gets pretty intense, actually." Entrants have until May 18th to submit their ideas. The contest ends at 11:59 pm on that day.
 
That level of excitement is felt during all aspects of the Minnesota Cup, and Litman is looking forward to another lively round of competition. "We love seeing the entries, and watching people talk about the program over social media," he says. "This should be another great year."
 
Source: Scott Litman, Minnesota Cup
Writer: Elizabeth Millard

To say that Burnsville-based DigitalTown has school spirit is an understatement.
 
The enterprise, founded in 1982, purchased its first web domain in 2005, when the founder, Richard Pomije, was chatting with Kay Joyce, then the principal of Burnsville High School. They talked about how effective it would be to have a site outside the school's official website that connected parents, students, and other community members.
 
Pomije bought www.burnsvilleblaze.com, and then went on a buying spree. The company now owns about 20,000 "school spirit" sites, and CEO Robert Castle notes that they have big plans.
 
"We want to build a powerful, nationwide publishing tool," he says. "We're ready to take this to the next level."
 
The sites only have local sports scores right now, but Castle envisions community-provided content as well as advertising that will give half the revenue back to the schools. The advantage of a school spirit site, he notes, is that schools don't have to manage them, or deal with liability issues that might crop up.
 
DigitalTown has 10 full- or part-time employees, but Castle sees the potential for rapid growth, which would also include hiring. "We've done the hard work in building the sites, and now we're at the point where we'll add the content to get it the rest of the way," he says.
 
Source: Robert Castle, DigitalTown
Writer: Elizabeth Millard

To say that Minneapolis-based Code 42 Software is having a good year already is something of an understatement.
 
In late January, the firm announced that it had secured $52.5 million in venture funding, which will accelerate product development and greatly expand the company's sales and marketing efforts. A few weeks later, the Wall Street Journal published a lengthy, favorable review of its data backup system, CrashPlan.
 
"This year has started with a bang, that's for sure," says Code 42 co-founder and CEO Matthew Dornquast. "We're very happy with how it's been going in terms of growth in the past few years."
 
The company has added about 60 employees within the last year--bringing the total number to 86--and expects to hire more in the months ahead as CrashPlan gains an even broader customer base. In the last three years, Code 42 has experienced more than 500 percent growth.
 
First offered in 2007, CrashPlan was developed as a way to streamline backup. The company developed multiple versions of the product, targeting home users, private and public cloud creators, small businesses, and large enterprises.
 
With the new infusion of financing, Code 42 has become the recipient of the largest venture round ever for a private Minnesota-based software company. Now, that's the way to ring in a new year.
 
Source: Matthew Dornquast, Code 42
Writer: Elizabeth Millard

The Minnesota High Tech Association (MHTA) recently added three new members to its staff, with the positions reflecting a new strategic plan for the organization.
 
MHTA is dedicated to making Minnesota one of the country's top five technology states within the next decade, notes President and CEO Margaret Anderson Kelliher, and by boosting skills in certain areas, the group will be able to move forward on that vision.
 
Tim Barrett joins as STEM (science, technology, engineering, and math) Coordinator, a role that will be instrumental in meeting ambitious goals for more STEM education and outreach in the state.
 
The organization's previous coordinator left to go to law school, Kelliher says. With Barrett stepping into the role, the MHTA has had a chance to reformulate its position so that it focuses more strongly on STEM connections between business and education sectors.
 
"This is about being the voice of businesses that are engaged in science and innovation, and making that vital connection to classrooms," says Kelliher. "We want to strengthen that, and create a science and technology ecosystem that's truly dynamic."
 
Another position was made possible through a grant from the Minnesota Science & Technology Authority: a "SciTechsperience Program Coordinator," who will manage a paid internship program for college students pursuing STEM degrees. Becky Siekmeier, who worked in advertising and marketing at Best Buy for 16 years, will take on the role.
 
A third new hire, Erika McCallum, will act as the organization's Programs and Events Assistant. The three positions are aimed at increasing MHTA's effectiveness and reach, and Kelliher is excited about the direction that the group is taking.
 
"There are so many opportunities around science and technology here, there's so much innovation," she says. "We're happy to be fostering the connections needed to make Minnesota one of the top technology states."
 
Source: Margaret Anderson Kelliher, MHTA
Writer: Elizabeth Millard