JumpStart: IdeaExchange Blog

There’s a new email communication in town, and I like it. I really, really like it. What am I referring to, you ask? It’s hiVelocity, the brand new email which shares the news from across the state about the companies, R&D, applied innovation, job growth, and lifestyle of the entrepreneurial community here in Ohio. Things are moving forward fast, and this newsletter captures the stories of that movement. Why do I really, really like it? A few reasons:

• More visibility for Northeast Ohio entrepreneurs! What a great way to showcase the ideas, milestones, and successes of entrepreneurs in Northeast Ohio. Lots of people across the state will see that Ohio, and Northeast Ohio, are emerging as national hubs of innovation due to the passion and commitment of our region’s entrepreneurs. I LOVE knowing that we have one more way to share our stories.
• The producers are experts in online communication. It’s brought to us by the people who invented and publish some of my favorite other email newsletters, such as Keystone Edge and PopCityNews. I consider these best-in-class email newsletters so the idea that we have our own, from them, means I can expect to enjoy reading every single article.
• Keeps me in the loop easily. With the many communications I know we all read or hear about, it’s hard to keep up. This is such an easy way to learn about progress occurring across the state, so next time I’m in Toledo, I don’t say “who’s Xunlight?”

One of my new, exciting challenges will be to make sure that the stories of progress from Northeast Ohio are visible in this new newsletter. With NEO’s growth in the entrepreneurial ecosystem, we could surely fill hiVelocity each week! I’ll be pitching like crazy, so if you have something you want to have featured in hiVelocity - let me know! And don’t forget to sign up yourself!

Cathy Belk is the Chief Marketing Officer of JumpStart. She specializes in branding, marketing communications, and business management. She brings 16+ years of experience in a variety of marketing and business roles, but gets her energy from working daily with entrepreneurs and their growing companies.

JumpStart’s 4th Annual Community Meeting will be October 9th from 7:30 - 10:00 am in the John S. Knight Center in Akron. While hundreds of people have RSVP’d already, if you haven’t yet, here are a few reasons that you will want to register right now:

6)  The donut machine for fresh donuts with customized toppings! I dare you to find a better start to a Friday than a freshly-made donut with chocolate frosting alongside a steaming hot cup of coffee.

5)  A tie between two things:

• There’s no cost. Two and a half hours of entertainment plus breakfast, for no cost. No better bargain anywhere on October 9th, that’s for sure.
• Your chance for 15 minutes of fame due to our roving reporter. Find Tiffan Clark to share your live comments about the growth of our entrepreneurial ecosystem, the amazing entrepreneurs, or those donuts, on video.

3)  Over 350 of your fellow entrepreneurs, venture capitalists, civic leaders, community members, and JumpStart associates. The first hour and a half (7:30 - 9:00 am), when you have the chance to enjoy the company of your friends in our entrepreneurial community, will feel like ten minutes.

2)  Special guest speakers. Of course Ray will speak in the program that starts at 9:00 am, but we will have several other guests from (SPOILER ALERT!) the EDA in Washington DC, people you don’t get to hear from every day. The Economic Development Administration is one of the leading agencies providing funds from the American Recovery and Reinvestment Act, so you’ll have the opportunity to hear the Administration’s vision for deploying those funds to spark innovation and generate job growth.

1)  The Showcase of Entrepreneurs, where you will be inspired and thrilled by the ingenuity and passion of 30 of the region’s most talented entrepreneurs, all of whom are leading JumpStart portfolio and client companies. There’s absolutely no way to feel more excited about the future of our region and our potential than to talk with these entrepreneurs.

And, thank you to Dollar Bank and Ernst & Young, the two sponsors for our Annual Meeting. See you on the 9th!

Cathy Belk is the Chief Marketing Officer of JumpStart. She specializes in branding, marketing communications, and business management. She brings 16+ years of experience in a variety of marketing and business roles, but gets her energy from working daily with entrepreneurs and their growing companies.

I’m a bit of a data geek. Yes, it’s true. So, when I decided to blog about the venture capital “situation” here in Northeast Ohio, I figured I’d better put pen to paper to confirm my thesis that Northeast Ohio’s venture activity, while pretty good, was significantly below the predictions made by the Early Stage Capital Task Force back in 2005. Well, I was wrong – and I’m happy about it.

The chart below is a summary of my quick and dirty analysis (remember, it’s a blog post, not a white paper) and shows that the early stage funding environment in Northeast Ohio has played out pretty much exactly as the Task Force predicted:

The “prediction” column comes from data published in the Early Stage Capital Task Force report in 2005. The “actual” column comes from data published in the 2008 Venture Capital Report and represents the average over the past five years (2004-2008). Overall, it made me smile; while entrepreneurs will always complain that there is never enough capital and fault can always be found with the existing sources of capital, the data shows that the ecosystem is pretty healthy. There is no doubt in my mind that the two most important contributors to this success are (1) the Ohio Third Frontier program and (2) The Ohio Capital Fund. Ohio Third Frontier provides funding for organizations involved at the earliest stages of a company’s existence (Pre-Seed/Seed category above) and has funded most, if not all, of the organizations in Northeast Ohio that provide business assistance and funding to researchers and entrepreneurs. The Ohio Capital Fund is a fund-of-funds that invests limited partner capital in early stage (Series A and B) venture funds with a quid pro quo approach – the funds receiving the dollars must invest a certain percentage of the money in Ohio-based companies. Both of these efforts have directly contributed to the positive results highlighted above.

What we have to remember, however, is that we’re in this game for the long haul. Ohio Third Frontier is coming up for renewal in the Spring of 2010 and The Ohio Capital Fund is about to invest the last of its $150 million and needs to be renewed ASAP if it is to continue attracting VCs to Ohio. So, while it might be self-serving to say that we need to continue funding these efforts (after all I work for an organization funded by an Ohio Third Frontier program), I’ve tried to provide objective data to support my position. As both of these issues come up for renewal (by the voters and in the legislature), the only thing we need to remember is to Keep on Truckin’.

Late last month, WKYC-TV3 spent some time with JumpStart to get a sense for what we are doing for the local economy. What came out of the meeting was a great piece for the station’s What Works in Cleveland segment. On August 28, 2009 the NBC local affiliate aired the piece, which not only tuned viewers in to what JumpStart is doing to help high growth potential companies, but gave them an insider’s view as to what one of those companies, AnalizaDx is up to.

AnalizaDx is developing early cancer detection tests, which the Cleveland Clinic and University Hospitals have found to be highly effective. From its lab, which is a converted elevator factory located on Cleveland’s near east side, AnalizaDx President, Arnon Chait, explained that they’ve been able to bridge the gap between idea and a company with the help of JumpStart.

Beyond AnalizaDx, JumpStart Ventures has invested in 39 other high growth potential companies located in Northeast Ohio because we believe that entrepreneurship growth is critical to our economy’s future.

Click here to Play the Video