CFI April 2013 Newsletter

Gjovig elected President of BioND page 2

Power Evolved page 5

Dick McConn elected to Foundation Board

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t the February, 2013, trustee meeting, Dick McConn of McLean, Virginia, was elected to a three-year term as trustee of the UND Center for Innovation Foundation. He replaced retiring trustee William Ness of Hudson, Wisconsin.

McConn is president & CEO of M International of McLean, Virginia, a company he founded in 1979. M International has become a leading solutions provider of new aviation parts, overhaul, repair, aftermarket and tech support in the aerospace and defense industries in North America, the Middle East, Southeast Asia, South America, and Africa.

After successfully starting M International Inc., in 1979, McConn developed Mintex (Rabat, Morocco) and McTurbine (Corpus Christi, Texas) soon thereafter. M International Inc., is the parent company to Mintex, Airborne Engines (Delta, British Columbia), MintTurbines (Stroud, Oklahoma) and Southwest Fuel Systems (Tucson, Arizona) and still continues to grow. McConn’s multi-million dollar international logistics enterprise is

known for integrity and ethical conduct.

McConn is a native of Valley City, North Dakota, and a 1966 graduate of the United States Air Force Academy. He received the US Air Force Academy’s Distinguished Graduate Award for 2011. Following his graduation at the academy, McConn served the Air Force as an intelligence officer. At a junior rank, he was assigned to Lowry AFB in Denver, Colorado, as the chief instructor of the Mobile Computer Training Team that pioneered intelligence data collection in the Air Force. Subsequent assignments took him to Washington D.C. where he served in the office of the USAF Vice Chief of Staff and in the office of the Secretary of Defense, and then as a White House aide to the President. After leaving active duty, he remained in the Air

Gjovig’s Jargon

McDonald appointed to Airspace Integration Team page 4

April 2013

Force Reserve and served in a key position in the office of the USAF Chief of Staff.

Throughout his life, he has been a strong supporter of education at both at the USAFA and the University of North Dakota. Seeing the need for additional opportunities for US Air Force Academy graduates to prepare themselves for leadership positions in America, he continued on page 3

“You may have to fight a battle more than once to win it.”

-- Margaret Thatcher, British prime minister

Gjovig elected President of Bioscience Association of North Dakota

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ioScience Association of North Dakota (BioND) elected Bruce Gjovig as the president of the association for the next two years at the organization’s annual meeting in December. Gjovig is Entrepreneur Coach and Director of the UND Center for Innovation. The center has worked with more than 560 startup ventures since its launch.

BioND was established in 2010 to support the biotechnology and life science industries in North Dakota. BioND members are involved in the research and development of innovative healthcare, agricultural, industrial and environmental biotechnology products and ventures.

BioND is a state affiliate of the Biotechnology Industry Organization (BIO). There are

Bio organizations in 46 states The organization coordinates the exchange of ideas and research, develops new business relationships and expands efforts to attract economic development opportunities for the biosciences in North Dakota. BioND helps promote bioscience industry development, champions science education, and helps attract high-quality jobs in the agriculture, life and energy science fields while concurrently growing economic opportunities in North Dakota.

The officers and directors of the BioScience Association of North Dakota for 2013-14 include: Officers: President: Bruce Gjovig, UND Center for Innovation Foundation, Grand Forks Vice President: John Ballantyne, PhD, Aldevron, Fargo Secretary: Joel Gilbertson, JD, Vogel Law Firm, Bismarck

Treasurer: Brenda Wyland, NDSU Research & Technology Park, Fargo Directors: Sen. Terry Wanzek, TMT Farms, Jamestown Rep. Lois Delmore, Grand Forks Kristi Jean, PhD, NDSCS Center for Nanoscience Technology Training, Fargo Randy Schneider, CPA, North Dakota Ethanol Producers Association, Bismarck Kerry Carlson, Altru Health Systems, Grand Forks Tom Lilja, North Dakota Corn Growers Association, Fargo Richard Glynn, JD, Avianax, Grand Forks Ex-Officio: Jolynne Tschetter, PhD, ND Department of Commerce, Bismarck http://www.ndbio.org/•

Entrepreneur Forum Features Medical Technology Inventor and Author

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he UND Center for Innovation’s University Center program hosted an EDA Funded Entrepreneur Forum featuring Patrick Kullmann, the founder and lead strategist at CG3 Consulting and author of the book: “The Inventor’s Guide for Medical Technology.” He presented “From Napkin to the Market” on January 20, in the Idea Lab at the Ina Mae Rude Entrepreneur Center.

Kullman’s presentation covered various top-

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ics that impact the success or failure of early stage companies in the medical device, pharmaceutical, biotech and healthcare IT spaces.

He provided a clear and concise understanding of the ‘’make or break’’ issues for startup companies in the life science areas from concept to market and beyond.

Patrick Kullmann, MBA, is a 30-year veteran of the medical technology field who has successfully exited two start-up medical tech-

nology companies for a combined value of $220 million. Kullmann was a senior director at Medtronic as well as a leader at Boston Scientific, Johnson & Johnson and Baxter International. He founded CG3 Consulting in 2008, with offices in Minneapolis, Boston and San Diego. Kullmann also contributes to the Minnesota Angel Network and the Minnesota Technology Cup as a business plan reviewer, mentor and coach.•

Strategic Patent Management for Entrepreneurs April 17, 2013 8:00 am–12:30 pm UND Center for Innovation 4200 James Ray Drive Grand Forks, ND

Contact: Jeff Carpenter Phone: 651.340.8031 jcarpenter@dcnteam.com

DCN’s Strategic Patent Management for Entrepreneurs Workshop reveals simple yet highly effective methods to gain control of your patent portfolio.

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his half-day workshop explores how to develop a strong patent strategy, work effectively with patent attorneys, understand and manage risks, and ultimately make solid patent investment decisions.

The Problem

High tech entrepreneurs need a strong patent portfolio to support product development, partnering, and fundraising. But many entrepreneurs lack the experience to forge and manage a strong patent strategy, especially when juggling multiple competing priorities.

The result is often a patent portfolio that carries far more expense and risk than expected.

McConn continued from page 1 established the McConn Scholars program which sends 2-3 active duty USAFA graduates to Georgetown University for a Master’s Degree in Public Policy. After finishing their degree, these graduates spend at least the

The Solution

Entrepreneurs do not need to be experts to develop a valuable patent portfolio or evaluate the competitive landscape. This workshop presents highly-effective techniques for: * Optimizing patenting strategy * Maximizing the value of intellectual assets * Extracting valuable competitive intelligence to enhance business planning, fundraising, partnering, and valuation

* Techniques to manage IP counsel and cost to increase the ROI of patent investments * Extracting valuable insights about competitors, vendors and partners

Who Should Attend?

* Entrepreneurial CEOs and CSOs * Innovators seeking to commercialize proprietary technologies * Seasoned entrepreneurs

The agenda includes:

For more information on this event, contact Jeff Carpenter, 651-340-8031, jcarpenter@ dcnteam.com•

next year serving on a congressional staff.

The program provides future senior officers a thorough understanding of how the U.S. government works.

McConn was a founding director of the USAFA Endowment and is currently on the boards of the Falcon Foundation, and the

National Defense Industrial Association. His son, Zach McConn, is a 2012 graduate of the UND College of Business & Public Administration’s Entreprenership Program. Dick McConn and his wife, Mili, also enjoy a lake home at Detroit Lakes, Minnesota.•

* Big and expensive missteps — and how to avoid them * A realistic overview of investments needed to get from invention to patent

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Doug McDonald Appointed to North Dakota Airspace Integration Team

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oug McDonald has been appointed

by Senators John Hoeven and Heidi Heitkamp, Congressman Kevin Cramer, and Governor Jack Dalrymple to serve on the North Dakota Airspace Integration Team. The team provides ongoing leadership in the integration of unmanned aerial systems into the national airspace and works to secure North Dakota as 1 of 6 national test sites.

McDonald is the director of special projects at the Unmanned Applications Institute (located in the Center for Innovation’s incubator) and he currently serves as president of the Great Plains Chapter of Association of Unmanned Systems International. He is the co-author of many significant UAS industry reports, including: “Aerospace: An Industry Sector Poised for Flight” for the Aerospace Power Group of the New Economy Initiative; “UAV Business Development Roadmap” for the Office of Economic Adjustment and the Grand Forks Region EDC; and “Community Base Enhancement Initiatives: Next Generation Collaborative Development Strategies for the Grand Forks Region and the Grand Forks Air Force Base” for the GF Base Realignment Impact Committee.•

Current Mueller Entrepreneur Interns

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he Mueller Entrepreneur Internship program was established in 1997 by Kurt Mueller when he was president of the Kauffman Center for Entrepreneurial Leadership. A total of 139 student entrepreneurs have launched 124 student venture through this highly successful internship program at the UND Center for Innovation.•

Featured Mueller Entrepreneur Intern Cory Bergsrud

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ower Evolved, LLC is an emerging high-tech startup located in Grand Forks. Founder Corey Bergsrud is a native of Devils Lake, and is currently an Electrical Engineering PhD student at the University of North Dakota (UND). The Power Evolved team is comprised of UND alumni from UND’s departments of electrical engineering, technology, and finance, who are currently located in North Dakota, South Dakota and Minnesota.

The company’s story began with the 2012 Innovate ND venture competition. A group of friends conceived a product that would allow consumers to stop worrying about charging their cell phones by providing “charge as you go” mobility. The resulting product, ChargeBook, is in currently in the development stage and takes advantage of wireless energy recycling. The team reached the final round of Innovate ND in 2012.

Currently the team is seeking capital from multiple sources. Power Evolved recently ap-

plied for a Technology Based Entrepreneur (TBEG)Grant through the North Dakota Department of Commerce, and is participating in two business plan competitions, the Giants Entrepreneurship Challenge–a local business plan competition at UND, and the Colorado Clean Tech–a national business plan competition for emerging clean energy products.

The company’s next steps include building the business and marketing plans, purchasing electrical/computing equipment and securing space needed to build and test prototypes of ChargeBook.

Power Evolved, LLC anticipates a vast market for ChargeBook and its associated products. The firm predicts that ChargeBook will follow the trend of rising cell phone sales.•

Connor Sundberg

Lakeside Dock & Lift located in Alexandria, MN For his Entrepreneur internship Connor is continuing to grow his business of removing and installing boat lifts and docks in the spring and fall along with adding a new shrinkwrapping winterizing service.•

Tom Holtzman

Beauty Status Hockey Co Tom is using his Mueller Entrepreneur Internship to further grow Beauty Status, a hockey apparel brand that makes quality, fashionable gear specifically for hockey players.

They make T-shirts, sweatshirts, hats, wristbands, stickers, and even custom team orders.•

Patrick Dehne

Brewpub Pat is taking advantage of the internship to learn more about starting and operating a successful brewpub. A brewpub is a small scale brewery and pub, combining handcrafted beer and food into one location and atmosphere.•

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Libera Systems Featured at Precision Agriculture Summit

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he development team at Libera Systems was recently invited to showcase their technology at the Precision Agriculture Summit in Jamestown North Dakota. The two day event was held at the recently remodeled Farmer’s Union building and had over 200 farmers, industry experts, educators, scientists, and businesspeople in attendance. The excitement surrounding the summit created the perfect opportunity to launch the complete redesign of Libera’s ZoneMAP software.

Using a Technology Based Entrepreneurship Grant (TBEG) from the ND Department of Commerce and assistance from the UND Center for Innovation, the team designed a tradeshow booth and marketing materials.

The booth allowed the team to

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stand out in a competitive industry and to showcase the software to the summit attendees. Libera was invited to conduct a live demonstration of the software for all those in attendance and was able to sign up 26 new users at the event.

Libera Systems began as a University of North Dakota start-up company commercializing a NASA funded research project known as the ZONE Mapping Application for Precision farming. The company was born out of the entrepreneurial technology commercialization initiative at the Center for Innovation and has been “incubated” at the UND Center for Innovation since 2011.

The team has been busy improving the ZoneMap software and expanding the business ever since.

ZoneMAP utilizes any combination of satellite imagery, yield maps, aerial images (UAV and plane), topographic maps, and farmers’ personal knowledge to produce the most effective variable rate map. The software generates a map highlighting and differentiating areas of fields based upon such factors as soil content and crop health. A farmer can adjust the rate of inputs following the pattern seen from the map as opposed to the traditional way of a uniform broadcast. For example, 40lbs of fertilizer may be applied to one acre of land and only 25lbs to the next. The newer agricultural equipment allows application variations only feet apart. The system will create as many different zones as the farmer desires or will automatically determine the

appropriate number. The ZoneMAP software allows the farmer to create personalized variable rate maps in minutes, at any hour of the day.

The number of users continues to grow as Libera implements the marketing plan developed by UND Entrepreneurship Department interns. As more users sign up, the company plans to expand its geographical reach and add additional features. The company is partnering with NDSU researchers on a variable rate proof of concept test this growing season. The results of the experiment will validate the scientific theory behind the software and boost the profile of the company nationwide. •

Center for Innovation Foundation Receives TBEG Funds to Assist Entrepreneurs

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ive clients of the Center for Innovation will receive technical assistance services made possible by the North Dakota Department of Commerce’s Technology-Based Entrepreneurship Grant (TBEG) program.

They include: DKX Manufacturing, Big Game Systems, Theratainment, Libera Systems and Field of View.

The North Dakota Department of Commerce established the TBEG program to assist with the growth of technology based entrepreneurship in the state. Under this program, qualified tech-based businesses work with one of the state’s eight certified entrepreneurial centers. As an entrepreneurial center certified by the Department of Commerce, the UND Center for Innovation Foundation is the fiscal agent for these TBEG grants and coordinates the services provided under the grant agree-

ment. Eligible TBEG projects must address one or more of the following areas: Access to Capital; Marketing Assistance; Entrepreneur Infrastructure; and Entrepreneurial Talent.

More information on the Technology Based Entrepreneurship Grant program is available from the Center for Innovation and can be found on the North Dakota Department of Commerce’s website: http://www.commerce. nd.gov •

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he Small Business Innovation Research (SBIR) program is a highly competitive program that encourages domestic small businesses to engage in Federal Research/ Research and Development (R/R&D) that has the potential for commercialization. Through a competitive awards-based program, SBIR enables small businesses to explore their technological potential and provides the incentive to profit from its commercialization. By including qualified small businesses in the nation’s R&D arena, high-tech innovation is stimulated and the United States gains entrepreneurial spirit as it meets its specific research and development needs.

Changes to program: http://sbir.gov/news/ time-and-schedule-changes-sbir-size-rules Current SBIR Solicitations: http://zyn.com/ sbir/scomp.htm Eligibility: http://www.sbir.gov/checklist The UND Center for Innovation can assist small businesses seeking SBIR funding. To learn more, or to receive the Center for Innovation’s SBIR Newsletter, contact SBIR@ innovators.net•

Since 2006, eight (8) angel funds have actively invested at least $16.6 Million in equity capital in 35+ firms

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he Center for Innovation recognizes that entrepreneurial talent in North Dakota is abundant. Early stage financing is critical in developing entrepreneur ecosystem for these exceptional entrepreneurs.

There is a growing movement towards engaging investors and entrepreneurs into a strong innovation ecosystem and building a trusting and lasting relationship. Toward that end, there are currently six angel funds that are networked for syndication and four other specialized

funds that look at venture deals in industry sectors like life sciences, IT, or clean energy.

Angel funds are a collaboration of private angel investors, usually in a defined region, who form a partnership that will invest collectively in venture deals locally or regionally and from across all industries. By working as a team, they are able to hedge some of the risk of early stage deals by developing a diversified portfolio of equity investments. Individual and side-by-side investments are commonly practiced within funds, as well as syndication with other funds. Angel fund investors take pride in helping develop their local community, supporting entrepreneurs and, of course, gaining a return on their investments. North Dakota provides a 45% state investment tax credit to encourage angel investing.

The Center for Innovation also houses the

nation’s first fully student-managed venture capital fund, called the Dakota Venture Group. UND students invest in high-risk, high growth, start-up ventures from all industries, and in return receive a percentage of ownership in those companies. They are currently establishing a second fund, called the Harvest Fund.

Since 2006, eight (8) angel funds have actively invested at least $16.6 Million in equity capital in 35+ firms. Coupled with side-byside investing and state lending programs, a total of $24.1 M in equity investment was secured since 2006.

Since 2012, five (5) angel funds are currently under development in North Dakota: Harvest Fund, Northern Valley Angel Fund, Lake Agassiz, Leading Edge, and H-Nergy Angel Fund.•

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NONPROFIT ORG US POSTAGE PAID GRAND FORKS ND

Ina Mae Rude Entrepreneur Center Norm Skalicky Tech Incubator 4200 James Ray Drive Grand Forks, ND 58203

PERMIT #10

Address Service Requested Phone: 701.777.3132 E-mail: newsletter@innovators.net The UND Center for Innovation helps entrepreneur innovators, students and researchers launch new technologies, products and ventures, develop business and marketing plans, access UND talent and secure venture financing.

We are a division of the UND College of Business & Public Administration.

Support Students and Entrepreneurs The success of the UND Center for Innovation is made possible by previous investors in our quality programs resulting in national recognition for excellence and quality. Our programs favorably impact future and existing entrepreneurs who will innovate, grow our economy, solve problems and make this a better world. For more information on how to help “pay it forward” in our entrepreneur community please contact Bruce Gjovig or Tom Kenville.

Opportunities to Give Center for Innovation - Priority Needs

•Entrepreneur Assistance/ Coaching

•EB-5 Program/ Foreign Direct Investment

•Angel Investor Education

•International Entrepreneurship

•SBIR outreach Entrepreneurship Department - Priority Needs

•Student Entrepreneurs - Entrepreneur Internships

•Sponsorship of Entrepreneur Speakers and Forums

•Dakota Venture Group (Student Venture Fund)

•Experiential Learning Experiences

•Faculty Recruiting & Development

•Unrestricted- Priority Use

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Bruce Gjovig Entrepreneur Coach & CEO Center for Inovation Foundation 701.777.3134 | bruce@innovators.net

Tommy Kenville VP Development Center for Innovation Foundation 218.779.9950 | tom@innovators.net

*Donors may qualify for up to a 40% income tax credit with an endowment. Contact Kim Woods at kimw@undfoundation.org or 701.777.4106 for more information. * Contributions to the Center for Innovation Foundation are tax deductible and included in your UND Foundation giving record.