Strong Local Economy : Innovation + Job News

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

Accounting, tax, and consulting firm McGladrey is clearing plenty of desk space for the months ahead, anticipating an increase of at least 25 more people before January.
 
The hiring push isn't surprising, considering that the firm has been bringing on new employees at a steady clip over the past six months, adding about 100 employees since the beginning of May. Currently, the Minneapolis office has about 325 people, with most of them getting ready for the busy tax season ahead.
 
Growth has also come from an increase in business consulting, notes Christine Mack, Northern Plains Assurance Leader and Partner at McGladrey. She says that for the past few years, many companies have been delaying the use of consulting in areas like risk advisory and technology services, but that the demand is increasing again.
 
She says, "There's a subtle shift in the economy. What was put on the back burner is now coming to the front, as people recognize they need advisory services to keep their businesses growing."
 
Expanding the firm's employee number comes at the same time as another major effort at McGladrey: implementing a paperless tax process.
 
The move toward a paperless strategy was sparked by a desire to create more efficiency in the tax process, says Mike Nelson, Managing Director of Tax Services. By going paperless, McGladrey employees can be more mobile and work electronically, allowing them to access files from a client office, for example. It's an innovative approach that's already making McGladrey unique among competitors.
 
"It just makes sense," says Nelson. "We can be mobile, it helps the environment, and our employees appreciate the flexibility. Everybody wins."
 
Source: Mike Nelson and Christine Mack, McGladrey
Writer: Elizabeth Millard

Consumers are switching to credit unions and community banks in record numbers, and this past weekend, "Bank Transfer Day" had some financial institutions jammed full of new customers.
 
For Affinity Plus Federal Credit Union, that means plenty of hiring to keep up with demand.
 
President and CEO Kyle Markland notes that the credit union has been adding about 2,000 members per month, which is double the amount they saw a year ago. About 80 percent of those members have been referred by existing members, but they're also seeing an uptick in interest thanks to their "ditch your bank" campaign.
 
"We've been very public about letting the general population know that there's an alternative to large banks," he says. "Our members see the value in the type of service that we provide, and I think more and more people are looking for that level of service."
 
Affinity currently has 356 employees, but that number is likely to increase as the credit union sees an increase in transaction volume, Markland notes. He says that in the last five years, members have been depending on the credit union for more of their banking needs, such as loans.
 
Because of the growth rate, Affinity is likely to add another 100 employees over the next 12 to 18 months. Just in the past two weeks, they've brought on almost 20.
 
That level of hiring is likely to be tricky, Markland says, because the credit union is very particular about who joins their team. Employees have to be motivated by an environment where they're empowered to make decisions, he says, and can fit in with Affinity's service-oriented culture.
 
"It all comes down to finding good people who want to work with other good people," says Markland.
 
Source: Kyle Markland, Affinity Plus Federal Credit Union
Writer: Elizabeth Millard

First Tuesday
 
November 8
University of Minnesota
Carlson School of Management
McNamara Alumni Center
$28, includes lunch
 
Held for nearly 20 years on the first Tuesday of every month at the McNamara Alumni Center, the First Tuesday Speaker Series has showcased top executives and their insights about business and leadership. This month's round features John Stumpf, the Chairman, President, and CEO of Wells Fargo.
 
 
Best Practices in Leadership Effectiveness & Employee Engagement
 
November 10
Embassy Suites Minneapolis Airport
Bloomington
Main conference: $200 members, $300 for members of partners, $400 non-members
 
Put on by the Minnesota Council for Quality, this two-day event features a main conference on Nov. 10 and post-conference workshops the following day. Organizations such as Toro, US Bank, and Allina Hospitals & Clinics will share best practices in succession planning, communication, employee engagement, and other topics.
 
CityCamp Minnesota
 
November 12
University of Minnesota
Humphrey Center
free
 
Touting itself as an "unconference," CityCamp Minnesota aims to bring together community organizations, technology startups, social media experts, software developers, open government advocates and "everyday citizens" for a discussion about how to strengthen local communities. Although there will be breakout sessions and at least 25 different interactive discussions, the conference organizers note that the "coffee break becomes the conference."
 

Robotics Alley
 
November 17
University of Minnesota
Carlson School of Management
$145
 
ReconRobotics (see our previous coverage here) teams up with the Minnesota High Tech Association to host a gathering of 250 leaders in the global robotics industry. Featuring a keynote address by renowned robotics expert Peter Singer, the program also includes a series of open-format talks on the business of robotics from experts in the financial, legal, policy, and academic sectors.

A new group is hoping to bring more jobs and investment to the Twin Cities, and is amping up its marketing campaign to achieve its ambitious goals.
 
Called Greater MSP Partnership and based in St. Paul, the organization has developed a website that contains resources for local companies that want to grow their businesses, information for firms that are considering relocation, and tools for finding commercial and industrial properties.
 
A news feed features upbeat items, such as recent profit increases for St. Jude Medical and Supervalu. For companies looking at the Twin Cities from other parts of the nation, Greater MSP includes information on what makes the region so noteworthy, highlighting areas like our high rate of volunteerism, the arts and culture scene, and healthy lifestyle factors.
 
Covering the 13-county area around the Twin Cities, Greater MSP is a public-private partnership funded by charitable donations. The partnership works with dozens of partners and intends to set a strategic vision for regional economic development, among other aims.
 
Helming the effort is Michael Langley, who ran an economic development consulting practice on the East Coast before coming to Greater MSP. Recently, Langley noted that there are already at least 40 projects in the works, and the hope is that the number will expand to 150 to 200 over the next year.
 
Source: Greater MSP
Writer: Elizabeth Millard

In the seventh annual Minnesota Cup competition, the top winner of $50,000 in seed capital was AUM Cardiovascular, a Northfield-based startup that developed a handheld device that can detect coronary artery disease.
 
The company's founder and CEO, Dr. Marie Johnson, started the firm after her husband died suddenly at age 41 while she was still a Ph.D. candidate the University of Minnesota.
 
Although he'd seemed to be in perfect health, Johnson's husband had suffered a heart attack, and it moved her to focus on creating a system that could identify symptoms of coronary artery disease.
 
Johnson estimates that she'll need about $3 million to accomplish the goal of preparing her device for market, and she believes that the award's seed money, combined with the presentation skills she learned through the award process, will help her to reach a new level of entrepreneurship.
 
Launched in 2005, the Minnesota Cup has become a high-profile and competitive event among entrepreneurs. Companies compete in six divisions, including biosciences, clean technology, high tech, and social entrepreneurship. There's also a student division.
 
This year, more than 1,000 participated, and in addition to AUM's win, several semi-finalists also received seed funding to grow their businesses. Other winners are Energy Max Panel, Naiku, Anser Innovation, Tesgen, and HOURCAR.
 
According to the Minnesota Cup, past participants have many notable success stories to tell. For example, the 2009 grand prize winner, 8th Bridge, raised $5 million in series A funding soon after the competition, and another $10 million in series B in 2011.
 
Other winners have been acquired, secured new capital, or garnered major distribution agreements as a result of their awards.
 
So, for entrepreneurs looking to fatten up their funding: start thinking ahead, because Minnesota Cup 2012 is likely to be even livelier.
 
Source: Minnesota Cup
Writer: Elizabeth Millard

 

Hennepin and Carver counties are rife with community garden efforts, but the counties are now embarking on a whole new kind of growth initiative. They're hoping to sow the seeds of business expansion, and they're currently looking for savvy CEOs to benefit from the process.

The Economic Gardening Network is an idea that came out of a project in Colorado, according to Hennepin County senior planning analyst Ron White. He notes that a large defense contractor there began struggling and was forced into layoffs, but the community came together in order to prevent widespread unemployment. They pooled their money to support local businesses in their second stage of growth.

In a similar move, the Economic Gardening Network is now looking for businesses with between 10 and 99 employees, with current revenues between $1 million and $50 million. "Statistics show that companies at this level have the most potential for job growth," says White. "They have a good chance for steady growth, and that's what we want to focus on."

Other eligibility criteria include: having maintained a business presence in Minnesota for at least the last two years, and growth in employment or revenue in two of the past five years.

The counties will be selecting 15 companies for a pilot program that includes technical assistance from a strategic research team, market research, project management, and other resources. It's an all-around education program meant to spark growth, White says.

Already, there's been a very encouraging response, he adds. The counties reached out to economic developers in various cities, then broadened their search from there. White is confident that they'll fill the pilot program, and hopefully keep gardening in the future, too.

Source: Ron White, Hennepin County
Writer: Elizabeth Millard

Those looking for green jobs have a powerful resource in RENEW (Renewable Energy Networks Empowering Workers), a program that trains Minneapolis and St. Paul residents for green jobs and places them in living-wage positions.

Kicked off in April 2010, the program has already had nearly 600 participants, with 350 of them earning credentials in green-related fields, and 240 gaining employment as a result of the training.

The success of RENEW led Minneapolis Mayor R. T. Rybak and Saint Paul Council Member Lee Helgen to highlight the program at a recent hiring fair, held at the Dunwoody College of Technology.

Funded by a $4 million grant from the U.S. Department of Labor, RENEW is a unique program, thanks to its strong focus on green-economy skills, notes Cathy Polasky, Director of Economic Development for the City of Minneapolis.

"Having these type of credentials is important, because it allows employers to have a tangible measure of what a prospective employee knows," she says. Even some employers that are not usually recognized as green companies have been eager to talk to program participants, Polasky says. For example, Doubletree Hotels is very interested in those who have learned environmentally-friendly tactics for housekeeping and maintenance, which allow the hotel chain to cut down on water use and streamline its operations.

Seventy different training tracks are offered through RENEW, with 12 training entities partnering with the program. Community-based service providers are also part of the effort, helping to inform low-income workers of the opportunities provided by the program.

Although the program's funding was a one-time award, Polasky and others are hoping that the Feds will come out with "a sequel" to keep the training rolling along.

"There's been such remarkable success with this, that we're really hoping to keep it going," she says.

Source: Cathy Polasky, City of Minneapolis
Writer: Elizabeth Millard

Trade association LifeScience Alley is looking to boost its legislative activity, with the creation of a new role: vice president of government and affiliate relations.

The group has hired Shaye Mandle, an expert on policy and coalition-building to take the post. Mandle most recently served as the executive director of the FedEx Institute of Technology at the University of Memphis, where he helmed economic development and industry engagement.

In the private sector, Mandle managed government affairs, university relations, and business strategy for the Science Applications International Corporation, a firm with extensive R&D operations in Arlington, Virginia.

At LifeScience Alley, Mandle will work to develop a public-policy strategy, and be responsible for working with key state and national groups, including federal agencies, other industry associations, and legislators.

The group is hoping to improve the regulatory and economic climate for life-science innovation, and more involvement in legislation and policy is an important next step in that effort.

"The mission of the organization isn't changing," says Mandle. "Part of our core competency is to be a voice for the industry. So, we'll be lobbying on a day-to-day basis around existing legislation, and also looking for other ways to play in the policy arena."

Mandle's first steps will be connecting with the association's membership, to determine levels of need, and what they'd like to see happening in terms of policy action.

"If you look at the evolution of our government relations, you'll see that it's been mainly reactive," says Ryan Baird, director of marketing and communications at the organization. "We've finally gotten to the point where we can take a more proactive approach, and Shaye is a big part of that."

Source: Shaye Mandle and Ryan Baird, LifeScience Alley
Writer: Elizabeth Millard

Minnesota companies account for one-fourth of the start-ups that will advance from the North-Central region and hope to compete on the national stage in this year's Cleantech Open.

The 20 semi-finalists from the 10-state North-Central region include five Minnesota companies in three of the six categories. A Cleantech Open news release describes the companies:

Green Building category
Supreme Energy Products of Lakeville--Seamless building envelope systems to enable 50-70 percent greater energy savings

Renewable Energy category
Atmosphere Recovery of Eden Prairie--Dramatic energy output increases from gas or liquid-based renewable energy processes
INVELOX of Chaska--Technology for safe, silent, low-cost and high-efficiency wind power generation

Transportation category
CleanTrack of Plymouth--Fleet fuel consumption and hydrocarbon emissions reduction system.
RoutePerfect of Minneapolis--A new fuel optimization technology for the transportation industry

In October, finalists will be chosen from the regions to compete nationally for up to $250,000 in investment and services and an opportunity to present in front of 2,000 attendees at The Cleantech Open's Global Forum in November.

Perhaps more important is the advice, education, and access to investors that each semifinalist company will receive in the coming months, including coaching from a network of business mentors, one-on-one consulting with specialists, an intensive "boot camp," and other local supporting events and training.

Win or lose, it's an opportunity to develop or perfect business plans and showcase ideas in search of capital to get a start-up off the ground

This year marks the second year of participation for the North-Central region in the competition, which began nationally in 2006. Illinois, new to the region this year, also sends five companies into the semi-final round.

In total, 163 start-ups made the semifinal round nationwide.

Source: Cleantech Open
Writer: Jeremy Stratton

After picking up speed over the last month, Minnesota's first tech accelerator is set to cruise with its first class of companies.

Following a weekend-long "bootcamp" June 10�12, Project Skyway chose eight "Skywalkers" from the field of 25 semi-finalist companies. Over the course of the weekend, the companies pitched their own and each other's ideas to fellow entrepreneurs, Project Skyway organizers, and the public. They attended roundtables with lawyers, investors, accomplished tech and software entrepreneurs, and others, and they met potential investors and customers.

"They certainly got a lot out of it," whether they moved on or not, said Project Skyway founder Cem Erdem of the 25 bootcampers. Project Skyway asked many of those not selected to apply for the next round after fine-tuning their ideas, adding a business partner, raising capital, or otherwise advancing their businesses.

After the bootcamp, the companies were rated by all involved, including each other and members of the public. In the end, eight were chosen:

COR² Technology--The company offers a cloud-based business-process and work-flow automation service to help organizations with 5 to 500 co-workers eliminate piles of paper by integrating simple applications with unlimited user licenses that power the whole organization.

Naiku--Naiku creates an affordable Software-as-a-Service that K-12 teachers use to easily individualize learning with a dashboard created by its proprietary analytics model.

Nitch--Nitch is an online platform for B2B collaboration and commerce.

Paypongo--Paypongo's service is a secure mobile payment solution that allows consumer-to-merchant transactions; consumer-to-consumer transactions; and merchant-to-merchant transactions, all through mobile devices. Transactions can originate from banking accounts or credit cards.

Qualtrx--Qualtrx is a new healthcare sales channel--an online solutions marketplace where healthcare providers publish patient-care needs, goals, and priorities, and where pharma and device vendors purchase these needs as "keywords" to make targeted needs-based proposals via the Qualtrx platform.

Telementry Web--TelemetryWeb helps makers of Internet-connected sensors and industrial devices build a new class of innovative, data-centric solutions by leveraging a ready-to-use, scalable Software-as-a-Service platform to secure, store, process, and integrate sensor data in novel ways.

Vanquish AP--VanquishAP is developing a real estate management platform that connects property managers, building owners, and tenants by creating local social communities while automating redundant tasks and centralizing logistics.

UHungry--UHungry is developing a social networking site to help college students save money and time by making it easy for them to place orders online at quick-serve restaurants with a group of friends while earning points to spend on future orders by completing tasks. This company, hailing from Long Island, was the only one not from Minnesota.

Erdem notes that the Skywalker companies are all early-stage companies, beyond the more basic start-up level.

Erdem and Casey Allen's video run-down of the eight Skywalkers gives an inside look not only at each of the companies, but at the Project Skyway decision process and model.

Cem and Casey Play-by-Play Skywalker Commentary from Casey Allen on Vimeo.

Although the accelerator class was intended to begin Aug. 1, Erdem sent an email this week informing the finalists that they would move forward now with the momentum of the bootcamp.
 
The class, and Project Skyway in general, will be based out of the tech accelerator's new shared space (with the co-working organization CoCo) in the Grain Exchange building in Downtown Minneapolis. Project Skyway plans a 'big party' at the end of July after the move in mid-July.

Erdem's personal email to each of the eight finalists reflects the tenor of his passion, and it sets the bar high for the participants:

"I bought into your vision," he writes, "but more importantly I bought into your purpose, your character, who you are. Our entire community will be watching you every step of the way. They are thirsty to see you succeed and bring the long lost entrepreneurial fame back to our region."

Source: Cem Erdem
Writer: Jeremy Stratton
 

Ximedica (pronounced "Zye-medica") is already established near one medical device hotspot (Boston) and is now expanding to another: the Twin Cities.

"Minneapolis is the hub of so many medical device companies and the hub of so many of our customers," says Sandra Weiss, director of marketing for the Providence, Rhode Island-based firm.

Ximedica provides up-front research, design, strategy, product development and introduction, and many other services to medical device and consumer healthcare companies.

The new office will be located in the University Enterprise Laboratories (UEL) Center, near University Avenue and Highway 280.

The company will be hiring locally, says Weiss--a key part of maintaining the presence and trust with local partners that the company has established on the East Coast for nearly 25 years.

"We're [hiring locally] so we can continue to maintain that service, we can continue to earn that trust locally, just like we've done in Providence," says Weiss, who notes that the Twin Cities is also a hub of academia and research related to the industry.

Ximedica does not have a solid target for the number of employees there, but it is "actively recruiting" and "aggressively hiring," says Stephanie Chamberlain, human resources manager for Ximedica.

As of mid-June, the staff count was one: Director of Human Factors Industrial Design David Copeland. His team will eventually include a director of engineering; senior level mechanical, software and electrical engineers; and program managers.

The Minnesota facility is expected to be at full capacity this fall, according to a press release, and Ximedica is also expanding its Providence location to 100,000 square feet of "integrated product development space."

Source: Sandra Weiss, Ximedica
Writer: Jeremy Stratton

The Minneapolis City Council in April approved the Homegrown Business Development Center, aimed at supporting small and start-up food-based businesses in the city.

The center is a loan program and technical assistance center, through which Minneapolis-based businesses associated with the processing, manufacturing, distribution, and marketing of local food products can apply for loans of up to $10,000 at 2 percent interest. Businesses will need to match the loan amount.

The April approval by the City Council set in motion a year-long pilot with $100,000 in total loan funds available.

The center is part of the larger, ongoing "Homegrown Minneapolis" effort, "one small piece of the homegrown pie," says Kris Maritz, loan and technical assistance specialist for the Metropolitan Consortium of Community Developers (MCCD), which administers the loans for the city. It's "another tool in the toolbox of loans that the city provides for small businesses."

Eligible businesses exist in the middle of the continuum of grower-to-consumer local foods, says Maritz. While other resources exist for local growers and retailers, the program might benefit a small producer that has been selling at farmers' markets, for instance, but wants to take the step to packaging and selling in greater volumes.

Maritz says the newly approved center has yet to receive its first application, but she has spoken to about a dozen interested companies. Maritz expects the first round of loans to go to existing companies that already have  products and/or sales under their belts. That said, the loans are intended to support start-ups as well.

The center will also refer companies to other resources such as experts in food packaging or nutrition labels, says Maritz.

Such resources could be just a part of a company's preparation to apply for the loan, notes Maritz. "Just because you send in an application doesn't mean you're going to get the cash," she says. "There's a lot of legwork that has to be done before a business is even ready to apply for a loan."

Once off the ground, Maritz says she thinks the program can be very successful. "I think it can really help a lot of the food manufacturers in the city � not just the loan capital, but sending this message to food businesses in the metro. Even if you don't come to us for a loan, you can still get a lot of informational help."

 More information is available in the city's Guide to Starting a Local Food Business in Minneapolis. (pdf)

Source: Kris Maritz, Metropolitan Consortium of Community Developers
Writer: Jeremy Stratton

The Minnesota Angel Network is beta-testing and fine-tuning its process in anticipation of a public launch in July.

Announced in January, the network will help companies prepare for funding by angel investors and will connect the two groups.

Right now, seven companies are beta-testing the process, says Todd Leonard, executive director of the Minnesota Angel Network. They represent various industries, regions of the state, and even stages of development--"from the whole spectrum of business," he says.

The company types include software, internet sales, biotech/cleantech firms, and animal health, and they include new startups, firms that have been through the equity process previously, and operational companies seeking outside funds for the first time.

"We're finding that even very seasoned CEOs that actually have functional, operating companies still are finding our educational process extremely helpful," says Leonard.

It's that educational process, more than connecting companies with capital, that Leonard stresses the network is about.

"Our primary concern is the educational side to this," he says. "The investment is really an additional benefit that we have, in that we have this relationship with those investors."

Investors are poised for that relationship, however, according to Leonard, and the Minnesota Angel Network is aligned with a number of other states with angel investment networks--at least 18 other network funds that "represent a significant amount of angel investment monies," he says. The network has also partnered with Rain Source Capital and other networked funds in Minnesota and elsewhere.

The network is also leveraging regional economic development organizations across the state with which it partners. While many may refer companies to the emerging program, those that sponsor the network as donors will take an early-stage role, facilitating intake and some of the training.
 
Those basic steps include due diligence and gap analysis, readying companies and their information for investors --an effort that mitigates risk for investors and companies alike.

The angel network also now has a full-time chief operating officer: David Wagy, a former senior director of finance for Medtronic and an angel investor.

Leonard says his own role is currently focused on fundraising. The network's goal is to not use any funds outside of donors, he says, and to be self-sustaining within its second year of operations.

Source: Todd Leonard, Minnesota Angel Network
Writer: Jeremy Stratton