Emerging Technologies : Innovation + Job News

An organization’s name needs to reflect its mission. New Rules does exactly that. The North Minneapolis for-profit/non-profit hybrid merges community event center, coworking office space, retail and, eventually, a café. At its core, the multi-prong concept blends creative enterprise, social entrepreneurship and community engagement, with a focus on improving and connecting the immediate community near its home on Lowry Avenue.

New Rules seeks to meet the needs of artistic creatives and small businesses while giving back to the local community. “It started with my love for community building and visualizing resources,” says founder Chris Webley. In speaking with artists, he saw a connection between the artisans’ needs and those of other small businesses. While fleshing out the New Rules concept, he realized it naturally extended to the North Minneapolis community where he wished to set up shop.

“We’re looking at ways of engaging different audiences and having conversations to help,” he explains. “The idea is that everybody is doing something. I cut the check, do the heavy-lifting,” he admits, then artisans create products in the work space and then sell them to the community through the retail store. “Everybody has something to contribute…we’re trying to get people to rally behind that idea.”

The event space is open to the community now, whether that means a neighborhood gathering or an art exhibit. Webley hopes to add a café later, which will then feed the community as well.

“Our niche is creative occupations,” he says, but it’s not limited by that mission. New Rules is adaptive based on who can help and what services they can offer.

To cater to creative industries, Webley wired a state-of-the-art sound system, and is actively seeking funds and donations from local corporations for other high-end equipment such as a 3D printer. “I’m gung-ho on doing things the right way the first time around,” says Webley, emphasizing that high-end equipment establishes a sense of pride and professionalism that patchwork gear cannot. New Rules seeks to invest in the community and to give back, which is why he wants the best technology he can find. 

Webley purchased the building himself and has overseen renovations. Though the coworking spaces are open now and the retail shop is running in a pilot mode since October 15, he considers New Rules a work in progress. The idea is fully formed and he’s built it from the ground-up, but there is room to grow.

Tenants will come, he says. Currently, he continues, “It’s more about getting the right things that are going to enable us to have an impact.” As the creative businesses grow, so will the retail store and the overall entity’s ability to reach out to their neighbors.

“The biggest needs for a lot of our immediate neighbors are financial resources,” Webley continues. By emphasizing sustainable leadership and economic development through an adaptive format, New Rules can improve lives directly. “There are many examples I can give you where the underlying factor is not having traditional limitations on how you can help,” he explains, “but getting creative.” He cites an example from last summer, when the building lent its lawnmower to a local homeless couple, who used it to earn funds for food and shelter.

By truly engaging their neighbors and finding unique solutions, Webley wants to achieve far more than a high-tech workspace for small businesses. He sees New Rules as connecting workers and neighbors, forging bonds that go beyond vocation.

The New Rules event center will be buzzing this February in honor of Black History Month, serving as a launch pad for the fully integrated concept. The cowork space will be upgraded and the retail store remodeled. “We’re not going to have everything that we want in terms of amenities,” Webley admits. “But we’re continuing to trek toward things.”
 

Since 1990, the Americans with Disabilities Act (ADA) has ensured equal opportunity for Americans who suffer from physical and mental conditions that limit their means. While wheelchair ramps, closed captioning and wider doorways have become commonplace, the digital realm still lags behind.

Accessible360, founded by entrepreneur Mark Lacek, seeks to fix that oversight. The company’s purpose is to make websites and digital apps fully functional for those impaired by blindness, deafness, or physical or cognitive restrictions. The company was launched this April and began promotion last month, just in time to help businesses comply with a rollout of new regulations from the Department of Justice in 2018.

Technology has changed since 1990 when the ADA was passed, and the Department of Justice announced last year that it the law applies both to physical buildings as well as digital areas. Accessible360 is here to make companies accessible today.
Many screen readers don’t recognize 100 percent of a website, Lacek says. When a blind user can’t access an offer, it’s discrimination and a violation of the law. Some compliance issues are obvious, like font sizes that affect the visually impaired but, he says, most are subtle. “There are things you would never recognize as a sighted person. Technology just doesn’t pick them up.”

Checkout screens are a notorious problem for blind users, he explains, which alienates disabled users and decreases potential sales. Studies show that disabled Americans spend more time online than their non-disabled counterparts, so it’s essential for companies to adapt to their needs. “Up to 85 percent of websites are not compliant based on what the current ADA guidelines are,” says Lacek.

“It’s somewhat Y2Kish,” says Lacek, explaining digital ADA compliance. “There’s this pending thing on the horizon. The difference is everyone knew about Y2K and people are just becoming aware of this issue.”

Accessible360 offers three core services. Lacek’s team of 10— led by accessibility engineer Aaron Cannon (who is blind)—will provide an audit of a website to determine issues and potential fixes for a client. Other services are remediation (fixing the issues) and monitoring. Monitoring, he explains, works like a home security system or credit card alert program, where Accessible360 makes sure that any new content uploaded to a website remains in compliance even after the first two phases are complete.

“The biggest challenge is really awareness and education of the general public,” says Lacek. “A lot of people don’t realize that the ADA regulations applies to the internet and their sites need to be accessible.” The company was inspired by the number of lawsuits being filed about website accessibility.

So far, Lacek’s team has worked with retail, financial services, travel, health and medical, and educational websites. It’s important to be compliant, he says, but it’s more important to make the world a better place.

“No one wants to be that company or that website that’s not empathetic to all of society,” he adds, “including the disabled.”
 

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.
 

Sansoro Health, a Minneapolis-based electronic health records startup, has had a pretty good month. The company announced earlier this week that it had raised approximately $1.2 million in seed capital, including a substantial sum from TreeHouse Health, a health tech incubator on Loring Park.
 
Healthy Ventures, a San Francisco-based health tech fund, led the seed round. The fund’s involvement is a clear vote of confidence not just for Sansoro Health’s innovative EHR solution, but also or the state of MSP’s medtech industry in general.
 
“The seamless clinical data exchange between EMR [EHR] platforms and digital health vendors is critically important to achieving better health outcomes,” enthused Anya Schiess, Healthy Ventures general partner, in a statement announcing the round’s closing. “Sansoro Health’s real-time integration software bridges the gap to improve patient care.”
 
And the feeling was mutual. “We are proud to have the support of investors like Healthy Ventures who share our vision for EMR integration,” added Jeremy Edes Pierotti, Sansoro Health’s CEO. “We’ve had strong revenue since inception, which enabled us to bootstrap our development. This funding will allow us to further empower innovation by providers, payers, and digital health pioneers.”
 
Sansoro Health isn’t unique in its ability to bootstrap (until now). But it’s one more data point in favor of the argument that healthcare funders, including local players like TreeHouse and Bay Area guns like Healthy Ventures, are taking a more conservative approach in a capital-raising market that many impartial observers believe is overheated. When the smart money gets conservative, companies that can demonstrate their market potential — ideally, by pointing to balance sheets with real revenue from real clients — tend to come out ahead.
 
And a more measured funding landscape is good for MSP companies in general. Though data is sparse, Minnesota companies enjoy a longstanding reputation for prudent, iterative governance — a disadvantage when funders are all about flashy “next big things,” but a pronounced benefit during pullbacks.
 
And what about Sansoro Health, specifically? The company came into its seed round with a healthy head of steam. Healthcare Informatics, a noted industry publication, selected Sansoro as one of six “up and comers” for 2016 — a prestigious honor that the company is understandably touting left and right. It also won Venture+ Forum’s 2016 startup competition at this year’s Healthcare Information and Management Systems Society Annual Conference.
 

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.
 

If you’re a regular on the yoga circuit, you know that most studios’ climate-control settings pay little or no mind to accepted indoor heating and cooling conventions. When you walk into your morning vinyasa class, you’re primed to expect a fetid sauna, frost-lined meat locker or something in between—or maybe, as your session progresses, all of the above.
 
Good news, perennially uncomfortable yogis. With help from 75F, an ambitious Minnesota startup that makes responsive, Internet-connected climate control solutions, two Minneapolis YogaFit studios are bringing predictability (and comfort!) back to the yoga routine.
 
The studios, in Northeast and Linden Hills, tapped 75F to remedy years of HVAC frustration. Each studio operates 24/7, with a mix of class and open studio time, and attendance varies widely from hour to hour. During cold-season peak periods, attendees’ body heat is often sufficient to heat each studio with little to no assistance from the HVAC system. When attendance is sparse, passive heating can’t keep things comfortable. The inverse (or nearly so) is true during the warm season: heavily attended sessions require nonstop AC on full blast, while unoccupied studios require little to no climate control.
 
Needless to say, the studios’ multiple non-programmable digital thermostats simply couldn’t manage this constantly shifting demand. According to a 75F case study, studio temperatures ranged anywhere from 73 to 90 degrees on a typical day. Instructors would arrive 30 to 45 minutes early to set the proper temperature for each class, and had zero control over the studios’ temperature during unoccupied periods.
 
75F’s solution was seamless and elegant: unlike typical programmable thermostats, its multi-zone thermostats integrated directly with the studios’ scheduling software, empowering instructors to set comfortable class and open studio temperatures days in advance. And the system’s detailed analytics enabled management to track temperature changes (and anomalies) in near real time. The result: more comfortable studio environments, and more relaxed instructors, around the clock.
 
“We needed a partner, and a solution, that could react to our business—not the other way around,” says Ashok Dhariwal, YogaFit’s Minneapolis franchisee. “75F delivered a customized solution based on our business needs, [implemented] it very fas  and has supported us every step of the way.”
 
75F’s smart climate control systems are also suitable for restaurants, retail outlets and offices of virtually any size. According to 75F’s website, the technology reduces customers’ heating and cooling costs by up to 40 percent.
 

Bringing a new medical device to market is a costly, time-consuming process. Innovations that seem like a slam dunk in the research lab often turn out not to work as intended during development. Clinical trials require minute, painstaking attention to detail. Federal regulators, understandably, demand proof that any new device is reasonably safe and works as its manufacturer claims. Each of these steps requires adequate funding and skilled manpower.
 
At the end of it all, Medicare, Medicaid and private insurance firms must be willing to reimburse providers that use the device. With rare exceptions, devices that don’t qualify for reimbursement—a highly complex consideration—fail to find traction in the market.
 
“Even with unlimited funding, it can take two years or more to complete the process for relatively simple medical devices,” says FocusStart founder and CEO Dr. Daniel Sigg.
 
Sigg and FocusStart co-founder Peter DeLange, who previously ran a successful medical device startup called Devicix (recently purchased by Nortech Systems, a local medical engineering company), had each spent years searching for a better early-stage device development model. When they met a few years back, they quickly realized their professional skills complemented each other.
 
So they founded FocusStart, a St. Paul startup that shepherds promising medical technologies through the tricky testing and development phase, refines validated devices for commercialization, and seeks strategic partners (typically multinationals) to complete the regulatory approval process and actually bring devices to market. FocusStart’s model is less capital-intensive than traditional medical device development models, though the company still assumes risk for technologies that don’t pan out during development.
 
FocusStart currently has four promising technologies in its portfolio: a cardiac product that may reduce blood clot risk following certain surgical procedures; a urological catheter that may reduce the risk of certain infections; a “smart” respiratory inhaler; and a “tissue tension sensor” that may promote better outcomes following partial and total knee replacement procedures.
 
Sigg and the team are devoting substantial energy and attention to the tissue tension sensor, which is capable of directly measuring ligament tension without requiring an invasive cut. Direct measurement enables surgeons to properly “balance” the knee during the replacement procedure, reducing the likelihood of complications or outright failure.
 
The sensor could potentially benefit other orthopedic procedures, such as rotator cuff and ACL surgeries, though FocusStart is concentrating on knee replacement for now. According to Sigg, it also has potential as a training tool for newer surgeons, who lack the intuitive “feel” of more experienced operators.
 
Although each technology is different, FocusStart’s development approach is fairly standardized. First, the company approaches a research institution to work out a licensing agreement for the technology. FocusStart works with the University of Minnesota, Mayo Clinic, the University of Zurich (in Switzerland) and an Israeli inventor.
 
“We quickly found that these agreements are fairly standard, with some variation,” says Sigg.
 
FocusStart generally would pay a royalty on future sales of the product, possibly with an equity component to sweeten the deal for the institution should the technology find its way into a marketable device.
 
“We find it easier to develop relationships locally,” says Sigg, adding that his Swiss background (he grew up in Switzerland and attended medical school at the University of Basel) probably helped with the Zurich partnership.
 
FocusStart’s lean model helps, too. “Once [our partners] understood our approach, we become more successful in finding very interesting technologies,” says Sigg. And the combined expertise of the firm’s principals—Sigg was a board-certified anesthesiologist and subsequently amassed almost two decades of medical research and development experience, while DeLange had the business chops to build Devicix into a successful concern and boasts insider knowledge of the medical device field—doesn’t hurt.
 
But that doesn’t mean swift success is assured. FocusStart has been “fortunate” to receive National Institutes of Health grants during the early going, but the company continues to seek government grants and private funding—a process that will likely continue as Sigg and DeLange seek out and develop promising new technologies.
 
There’s no such thing as a perfect batting record in the medical device business. “As we do our own work, we may find challenges or problems that weren’t apparent previously,” says Sigg. “Occasionally, you have to know when to say ‘that’s it’ and walk away [from a technology].”
 

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.”
 

Healthcare spending accounts for a huge chunk of national GDP. And with dozens of major providers, insurers and medical device companies headquartered in and around MSP, the sector is absolutely critical for the local economy.
 
But the healthcare industry is notoriously inefficient. “Up to 30 percent of every dollar spent on healthcare is wasted due to unnecessary variations in care,” says Patrick Yoder, founder and CEO of LogicStream Health.
 
Yoder and LogicStream co-founder Dan Rubin want to bring healthcare delivery into the 21st century by making hospitals, clinics and individual medical professionals smarter about the care they provide.
 
Dozens of hospitals around the country believe in LogicStream’s solutions. Fairview, one of MSP’s largest hospital systems, is a current client; so is Yale-New Haven, a prestigious East Coast provider. LogicStream has nearly 500 ambulatory (walk-in) clinics in its system, too; not bad for a company that got its start just two years ago and still offices out of TreeHouse Health, a downtown Minneapolis healthcare business incubator.
 
LogicStream is built around the aptly named LogicStream Intelligence Platform, an algorithmic “learning system built for standardization,” as Yoder described it in an October 1 presentation at the MN Venture Conference. The goal of the LogicStream Intelligence Platform is to “improve clinical quality, provider satisfaction and cost efficiencies throughout the enterprise [while reducing or even eliminating] some critical hospital acquired conditions,” according to the company’s website.
 
While the technical aspects of LogicStream’s platform are complex, the gist is simple: It runs the huge amounts of data generated by each patient’s journey through the hospital or ambulatory clinic through a constantly evolving algorithm that spots trends and develops “rigid, clinically appropriate” (in other words, medically sound) protocols to reduce the risk of complications or waste.
 
LogicStream’s platform is designed to develop protocols rapidly, without hands-on human guidance. The platform’s speed and accuracy allows it to cover potentially thousands of life-threatening conditions that can affect hospital and clinic patients.
 
One early success: venous thromboembolism, a common clotting condition responsible for thousands of hospital deaths each year. According to a LogicStream case study, one client “reduced the rate of venous thromboembolism (VTE) in post-surgical patients by more than 80%, resulting in a significant overall decline in associated morbidity and mortality and $1.1M in cost savings.”
 
Yoder notes that, in most cases, reducing VTE risk is straightforward: Upon admission, “a patient’s care team needs to assess his or her individual risk for clots,” he says, not rely on statistical data that may not be relevant to the situation. LogicStream’s VTE protocols include an individual risk assessment; most electronic health records (EHRs), which clinicians use to track patient data and monitor condition changes, don’t.
 
As more clients discover LogicStream’s solution, Yoder expects the LogicStream Intelligence Platform to scale rapidly. At MN Venture, he projected three- to four-fold growth in total protocol content between Q3 2015 and Q1 2017, a huge boost to the platform’s power and reach. The company currently has 12 employees, and that count is likely to increase through 2016.
 
Job Listings
 

1. Executive Vice President of Sales, Minneapolis (downtown)

 
 

There’s about to be a new way for amateur and professional musicians to collaborate on original music without regard for geography — and it’s made in MSP.
 
Record Together, an innovative recording and idea-sharing platform developed and promoted by MSP brothers Scott and Mike Bishop, is nearing the launch of a completely revamped application that allows multiple musicians to collaborate on the same song, no matter where they live or whether they have access to sophisticated instruments and recording equipment.
 
Think of Record Together as a virtual, remote music studio that connects musicians who’d otherwise never even hear of each other, let alone meet up for a recording session. Users lay down one or more tracks — anything from an isolated piano line to a four-piece band’s guitar, bass, drum and vocal tracks. They then “draw in” outlines for other tracks (for instance, a vocal harmony to accompany the piano line) using automated music software and publish to Record Together’s online marketplace. Once published, other users record their own tracks to replace the drawn-in outlines and create a whole (or at least more complete) composition.
 
Record Together is intentionally designed for musicians of all ages, abilities and levels of seriousness. “We cater to professional jazz musicians with mindblowing musical skills and years of experience,” says Mike Bishop, “along with high school kids just messing around with a guitar or saxophone in the basement.”
 
The Bishop brothers fleshed out the revamped Record Together platform with non-technical, cost-conscious users in mind. According to Scott Bishop, Record Together isn’t the only cloud-based music recording solution that empowers cross-border collaboration. But musicians would be hard-pressed to find a simpler, more cost-effective option.
 
“Access to a professional recording studio is a major barrier to entry for most musicians,” he says, “due to the high cost of reserving studio space and the limited amount of space available.” Musicians who record demo tapes or digital imprints on their own solve the cost problem, he adds, but sacrifice collaborative potential and sound quality.
 
“Our objective with Record Together is to reduce recording expenses and remove every possible barrier to enjoyment and creativity,” says Mike Bishop. “We want to move users closer to their end goal — making great music.”
 
The updated Record Together app replaces a legacy platform born in 2011. The legacy platform was built around “opportunities” — calls for single-track contributions to unfinished songs. For each opportunity, users submitted recordings that fit the stated requirements; the opportunity’s poster then selected the winner and paid the creator an agreed-upon sum. The new platform is still transactional — “We want users to get something back for their contributions,” says Scott Bishop — but the “draw in” feature allows for a more seamless and expansive collaboration process.
 
Although the Bishops are coy about when the new platform will roll out to the public, they’re not shy about their plans or ambition. The brothers are currently putting out feelers for a seed funding round, says Scott Bishop, in the hopes of scaling the platform and ensuring that “everyone who wants to use it will be able to from day one.”
 
After that, the sky’s the limit. “We believe that Record Together has the potential to do for music what YouTube did for video,” he says.
 

In February 2015, Minneapolis startup Vidku raised $17 million in a 17-day Series A funding round led by Arthur Ventures, a Fargo-based venture capital group. The speed and size of Vidku’s fundraising effort was unusual: According to data from CrunchBase, the average Series A raised $6.9 million in 2014 and it often takes months to close a successful round.
 
So it’s no surprise that MSP’s investors and innovators sat up and took note of Vidku’s breakout success. CEO Jim Leslie attributes his company’s achievement both to the far-reaching capabilities of Flipgrid, its core “asynchronous video sharing” product, and the boundless belief of Vidku’s 35-plus employees.
 
“Our investors weren’t interested because they knew who [Vidku’s leaders] were or trusted us to execute,” says Leslie, a self-described “serial entrepreneur” who ran a handful of successful firms (and sold his most recent venture for a cool $100 million in 2011) before joining the Vidku team. “The passion of our entire team regarding Flipgrid’s future possibilities was infectious — our investors got as excited as we were” about Vidku and Flipgrid.
 
Users believe in Flipgrid, too. According to Leslie, the product has hosted more than 3 million video shares since its January 2014 launch, spreading chiefly through word of mouth. (Vidku has no formal marketing operation to speak of, though that may change in the future.)
 
Flipgrid admins, typically classroom educators, populate “grids” with video or text questions, prompting video responses from student users. Everyone with access to the grid can see and share the responses. There’s no limit to each grid’s capacity for questions and responses, though admins are limited to a specific number of grids per year — typically five to 10, or roughly one per class for full-time educators.
 
Though Flipgrid was originally designed for educators, Leslie is quick to point out that about 20 percent of the platform’s volume is devoted to non-educational use. Private businesses and government agencies use Flipgrid as a collaborative tool, while wedding planners and religious institutions leverage it to create more social events and environments.
 
“Flipgrid is a growing, powerful and highly effective technology tool that’s getting stronger all the time,” says Leslie. Following Vidku’s “design first” imperative, “we’re constantly developing new ways for users to participate.”
 
Vidku’s development activities have accelerated since the company spun out from an eight-person University of Minnesota team led by Dr. Charles Miller. Miller’s team is responsible for designing and building out Flipgrid’s base technology and critical elements. Leslie and co-founder Phil Soran, also a wildly successful tech entrepreneur, caught wind of Miller’s innovation and offered to form a private company capable of turning Flipgrid into a disruptive technological force.
 
“We were only interested in [spinning Flipgrid out of the U and forming Vidku] if [Miller’s] entire team was on board,” says Leslie. He didn’t need to worry: The response was an enthusiastic “yes.”
 
For Flipgrid’s core team and the U itself, the transition to private enterprise has thus far been smooth. All eight team members remain on staff at Vidku, generously compensated for their efforts and diligently working on the next big thing.
 
Perhaps more importantly, the U is a major shareholder in Vidku; Vidku’s success is quite literally the U’s success. Such public-private synergies, wherein universities drive innovation and investors provide the capital necessary to bring transformative ideas to market, are commonplace in established tech centers like Boston and Silicon Valley, says Leslie, but less so in MSP.
 
“A strong public-private linkage is the hallmark of a healthy entrepreneurial community,” he says. “We’re on the cusp of that here” in MSP.
 
In addition to Flipgrid, Vidku also offers a video-based assessment tool called Avenue. “Whereas Flipgrid is suited for discussions” and other forms of knowledge and experience delivery, Leslie explains, “Avenue is ideal for more formally assessing knowledge.”
 
Vidku’s team also handles development work for Passport, a language-learning application initially developed by St. Paul-based EMC Publishing. Though Vidku doesn’t own Passport, Fligrid and Passport are kindred spirits with the same lofty goal: reducing friction and improving knowledge delivery in the classroom.
 
Later this year, Vidku plans to launch an application that offers a “significant enhancement” to Flipgrid’s capabilities, says Leslie. The new update “is the first tangible fruit of our intensive development efforts” since spinning off from the U, he adds, though he’s mum on the software’s specifics.
 

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.
 
 
 

Though debate continues as to whether the average person needs eight glasses of water per day, many of us still forget to stay hydrated when we’re busy. Hidrate co-founder and recent University of Minnesota graduate Nadya Nguyen found out the hard way.
 
On the bus home from a 10-hour volunteer shift at TEDxMinneapolis, Nguyen felt faint and disoriented. Her head was pounding. With effort, she recounted the events of her jam-packed day and realized that she hadn’t taken a single sip of water since the morning. She simply hadn’t had the time, to say nothing of the mental bandwidth necessary, to stop what she was doing and take a drink.
 
Then it hit her: In the age of cloud-connected smartphones and tiny, powerful sensors, she didn’t need to remember to drink water. She could simply build an app that connected to a special water bottle that would remind her to hydrate. Along with three other recent U of M grads, she built out the app and a prototype water bottle—called Hidrate—during least year’s Twin Cities Startup Weekend.
 
“It’s so easy to forget to take care of yourself when life gets busy,” says Nguyen. “I wanted to create something that would make life better for people in this small but important way.”
 
The idea is breathtakingly simple: Users download the app for free on their phones and enter personal parameters (weight and other factors), location (temperature, relative humidity and altitude can affect water needs), and daily activity level, editing over time as this information changes. Hidrate uses this data to create a personal “daily water goal,” expressed in both ounces and water bottle equivalents. The app syncs with a 24-ounce, BPA-free, dishwasher-safe water bottle that can sense its own fill level and updates your total daily intake whenever you take a sip. If you go too long without drinking, a reminder message appears on your phone; if you really fall behind, the bottle glows gently until your fluid intake gets back on pace.
 
Hidrate isn’t the first smart water bottle to hit the market. But the talented, driven team enjoys the benefits of a heavily discounted shared workspace at Startup Venture Loft in the North Loop — a huge help for any startup operating on a shoestring budget.
 
The company’s Kickstarter campaign, launched June 1, had a seemingly ambitious goal: $35,000. Thanks to tremendous support from what Nguyen calls “a dedicated group of early adopters” and a high-visibility mention in widely read tech publication TechCrunch, the campaign blew through that ceiling in a couple days, notching nearly $200,000 from more than 2,500 individual donors in its first week. Everyone who donates $39 or more gets a personal bottle, with delivery expected in December 2015 or January 2016.
 
The Kickstarter campaign’s proceeds will mostly cover costs for the initial bottle-manufacturing round, which is likely to be larger than expected given the campaign’s success. Nguyen and the team are still working out a retail price for the bottle, but “it’ll probably be in the $39 to $45 range,” she says.
 
For now, interested buyers can reserve a bottle — in the color of their choosing — on Hidrate’s website. Longer-term, Nguyen expects to sell through gyms, sporting goods stores and other retailers. The team is already courting potential partners, though nothing’s ready to announce.
 
“We’re willing to work with any gym, specialty store or retailer that caters to our customer base,” says Nguyen. “We’ve been blown away by early demand for the product and can’t wait for the next phase of our growth.”

 
Hidrate Jobs in Minneapolis
 

1. iOS Mobile Developer
2. Android Mobile Developer

 

A while back, as Prodality co-founder Parag Shah scanned a credit card statement, he noticed a restaurant charge that seemed suspiciously high. Though he couldn’t remember the bill’s exact amount, he recalled the meal well enough to know he’d been overcharged. But Shah couldn’t find his receipt, and thus couldn’t confront the restaurant about the mistake.
 
“I hate paper, so I probably just threw the receipt out after signing,” says Shah. “But the experience made me ask why I didn’t have the option to receive my receipt by email and search through an archive of all my purchases.” Such an archive would also help with returns that required a receipt, he reasoned.
 
Shah set about developing the searchable receipt database that would become PurchaseBox. He soon saw the value in including promo emails in the concept: “The average person gets way too many promotional messages to keep track of, even with email systems like Gmail [which collects promo emails in a separate inbox],” explains Shah. “Most people just delete them as they come in, even if there’s a chance that they’d come in handy at a later time.”
 
By organizing retailer-specific promotional emails in a searchable database, PurchaseBox makes it easier for consumers to call up and use coupons while shopping online or in-store. Each PurchaseBox user gets an @purchasebox.com email account to which retailers can send digital offers and receipts. (Users can also photograph and upload paper receipts to their accounts, though that’s likely to become less common as more retailers switch to digital receipts.)
 
PurchaseBox exemplifies the customer-first approach to big-picture technology solutions of its parent company, Prodality. From its office near Uptown, Prodality is honing a unique business-building approach that could have a big impact on MSP’s burgeoning startup economy.
 
Shah, who serves as founder and chief executive, runs Prodality with business partner Whitney Johnson, who serves as director of marketing and oversees the company’s day-to-day operations. According to Johnson, Prodality is a “mix between a startup incubator and a capital investment firm.” Prodality turns ideas into new subsidiaries, taking an equity stake in every concept that makes it past the idea stage.
 
To get each new business off the ground, Prodality’s core team offers “labor support” during the startup phase, says Johnson, then builds “specific teams around each company as they continue to grow.” Prodality's startups are structured as separate legal entities, not departments of Prodality itself.
 
Prodality focuses on “big ideas” that can potentially achieve seven- or eight-figure valuations within three to five years, Shah says. “Before launching a new idea, we ask ourselves, is it a large enough opportunity?” he explains. “If the answer is ‘no,’ we don’t pursue it.”
 
Prodality’s ideas generally focus on business and consumer needs, depending on the company. Its most successful subsidiary to date, BookBottles, is an event management platform that caters to nightclub and entertainment venue owners. Regardless of target audience, Prodality’s startups must be cost-effective and “bootstrappable,” backed by software systems — either web or mobile — capable of being rolled out within weeks.
 
“One of the biggest advantages of our model is that it’s scalable,” says Shah. “We’ve put together a framework for providing the seed funding and labor to develop apps and other necessary technologies really quickly.”
 
Prodality’s model is attractive to local and national tech investors, who have participated in multiple funding rounds for the firm’s most successful startups. The ultimate goal of any Prodality backed startup, says Shah, is a full exit: the sale of Prodality’s stake to another firm or investment group. Prodality reinvests the proceeds of these sales into new ideas, some of which — hopefully — eventually make it through the same cycle.
 
As for PurchaseBox, it’s still early days. The app remains invite-only as the team works on functionality enhancements and tests new features, which Johnson says are critical to PurchaseBox’s eventual success. Current users tend to be tech-savvy “early adopters,” she says. “We count on experienced technology users to evangelize the product for us, and we always welcome feedback that helps us focus our development efforts.”
 
“The goal is to make PurchaseBox as user-friendly, seamless and convenient as possible,” Johnson adds. “Those attributes are what will ultimately drive adoption.”
 
According to Shah and Johnson, PurchaseBox is planning a big push — aided, again, by its early users — to put the app in front of retailers in MSP and beyond. “Our goal is to build a base of at least one million users” in the near term, says Shah. “Hitting that target will create a compelling value proposition for merchants and encourage adoption.”
 
Though one million users sounds like an ambitious target for an app that’s still technically in beta mode, Shah and Johnson clearly believe in PurchaseBox’s potential. And they’re fresh off a big visibility boost: PurchaseBox was one of a few hundred startups (out of 15,000 applicants) to appear at this year’s Collision, an annual tech expo held in Las Vegas in early May.
 

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.”