MCP NETWORKS
MCP NETWORKS
Startup Spotlight: MCP Networks Offers Bandwidth Control Application for Parents
Brudvik Law Office Joins the Center for Innovation
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NEWS
Bank of North Dakota Hires New Business Banker at UND Center for Innovation Office Page 7
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Laurie Betting, Ed Schafer Join Center for Innovation during Director Search Two entrepreneurs experienced in higher education leadership have assumed interim positions at the Center for Innovation while the University of North Dakota searches for its next director. Laurie Betting, senior adviser to the UND president, has been tapped to fill the role of interim director. Former interim UND President Ed Schafer has been asked to serve as special adviser to the Center for Innovation Foundation’s board. Betting will be responsible for managing the day-to-day operation of the Center while Schafer’s role will focus on identifying strategy to build on the success of the Center and take it to a new level of performance, meshing with the new strategic plan for the university.
“The Center is focused on creating pathways and supports for emerging businesses,” Betting said. “I am humbled to be asked to contribute toward something that has done so much to launch businesses and add to the academic entrepreneurial education for students.” Betting brings 15 years of leadership at UND to the interim director position, including conceiving and constructing the campus Wellness Center, serving as associate vice president for health and wellness, serving as interim vice president for student affairs, co-chairing the campus master planning effort and, most recently, co-chairing the campus strategic planning effort. Schafer says he looks forward to assisting in development of a strategic plan to take the Center for Innovation into continued on page 3
Celia’s Pearls of Wisdom (she was born on the anniversary of Pearl Harbor)
“Conscience is the inner voice that warns us that someone might be looking.” - HL Mencken, author, critic and newspaperman
CFI Startup Spotlight: MCP Networks Offers Bandwidth Control Application for Parents Candice and Marc Perea, along with their partner, George Zarebski, have developed the perfect tool for parents in today’s technology-driven world. The trio developed a “smart” router called Aerez, a product of their new company, MCP Networks. Aerez allows customers to control their bandwidth through a mobile application that connects to the router.
Candice also worked for SRT Communications in addition to doing web development and tech support on her own. Zarebski is retired from the US Air Force. In addition to working full-time with MCP Networks, he also runs his own web hosting and web development company in Alaska. The Pereas originally started the business using a North Dakota Dept. of Commerce program called InnovateND, which helps new business with minimal financing and mentorship from professionals.
The router works by identifying each device and, using a unique algorithm developed by the Pereas, it balances the amount of bandwith able to be used by each user. This helps prevent internet lag caused by activities such as “It was great because we could use our past experiences online gaming and video streaming, which to develop a great product,” Marc said. George Zarebski are common activities for kids and teens. “The InnovateND coaching was fantastic! We both have tech backgrounds, so The Pereas are parents of four children, it helped us understand what steps and after experiencing connectivity issues we needed to take to turn this into a of their own and finding their kids on business.” the internet in the middle of the night, they — along with Zarebski — came up Formerly of Minot, N.D., the Pereas with a useful solution for those in similar have now relocated to Fargo to pursue situations. their new startup. Staff at the Center for Innovation are excited to welcome “It makes it easy to bust them to the North Dakota your kids,” Candice said. startup community and “We started first by sharing wish them the best of luck this with friends and family. with their venture! Over time, they gave us To hear more about MCP great feedback, and we have Networks and continued to improve the their smart router, Aerez, software.” please reach out to Parents or other candiceperea@ administrators are mcpnetworks.us. able to control internet access for any device Candice Perea Marc Perea and provide real-time graphs on internet-usage in the home, all within the app. Furthermore, the software can be used to identify Wi-Fi signal strength to devices in the area, which can help users get the most out of their internet. The Pereas are graduates of Minot State University, both holding degrees in computer science and management information systems. Marc has spent the majority of his professional career as a Network Engineer for SRT Communications, a Minot-based internet service provider. 2
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MCP NETWORKS
Laurie Betting, Ed Schafer Join Center for Innovation (continued from pg. 1) a new arena for entrepreneurs. His expertise and connections will assist the Foundation in designing a future that takes into account the evolving demands of the business community while meeting the needs of the region and state. Schafer’s leadership experience encompasses political and higher education roles, including serving as 30th governor of North Dakota from 1992 to 2000, as the 29th United States Secretary of Agriculture from 2008 to 2009 and as interim president of UND from January to June 2016.
Both Betting and Schafer have entrepreneurial experience to draw from during their time with the Center for Innovation. Betting owned and operated a brokerage and an LLC in the area of telecommunications construction. Schafer has extensive business and entrepreneur experience, including running a multi national consumer products business and several entrepreneurial businesses.
North Dakota Named as Best State to Start a Business If you’re looking to start a business, a recent online ranking says North Dakota is the place to do it. North Dakota recently was named the No. 1 best state to start a business by WalletHub, a financial wellness website. The Peace Garden State came out ahead of neighbors South Dakota (10th), Montana (11th) and Minnesota (30th). In creating the list, WalletHub ranked all 50 states across 20 key indicators of startup success. North Dakota ranked No. 1 in the categories of highest average growth in the number of small businesses and most accessible financing. “Building a business-friendly environment has been a goal for North Dakota, and Gov. Burgum’s strategy is to continue to grow our start-up opportunities,” Commerce Commissioner Jay Schuler said. “Rankings such as this point to North Dakota’s overall strength in attracting workers and businesses to the opportunities we have to offer.”
NORTH DAKOTA Ranked
STATE TO START A BUSINESS
WalletHub notes that a state that provides the ideal conditions for business creation — access to cash, human capital and affordable office space — can help new ventures not only take off but also thrive. Rounding out the top five were Texas, Utah, Oklahoma and Nebraska. The full ranking is available online at www. wallethub.com.
N O R T H DA KOTA AUGUST 2017
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University of North Dakota and SkySkopes Receive State Research Grant
InnovateND Program Restructured Following Adoption of New Legislation
A research project aiming to use unmanned aircraft systems to conduct energy audits of North Dakota college campus buildings received nearly $442,000 in grant funding in May.
Legislation passed this year in North Dakota required the restructuring of a state business development program for the next biennium.
The University of North Dakota Office of Research and Economic Development and UAS flight operations company SkySkopes were awarded the funding as part of the state’s Research ND program, which provides matching funds to help companies pay for the university research. The $441,983 grant will be used to test the feasibility of deploying small unmanned aircraft equipped with thermal sensors to collect energy audit data on buildings on all of the North Dakota University System’s 11 campuses. The data collected can be used by campuses to identify problem spots on buildings where energy such as heat is escaping. These issues could be corrected to reduce energy loss and save money. Research ND funding is awarded on a competitive basis for projects based on proposals submitted jointly by researchers from a North Dakota research university and a private sector partner. Through the Research ND program, more than a dozen dronerelated research projects in the state have received funding. SkySkopes is a tenant of the UND Center for Innovation’s Skalicky Tech Incubator.
Sky Skopes
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Previously operating as a five-phase program awarding funding for business growth, InnovateND is now structured as a three-phase program in which a business can access up to $24,000 in venture development funding to bolster its continued development.
The funds are issued in phases through a voucher and grant system that can be used for anything advancing the business — business plan development, patent work, prototype development, marketing assistance, website development, legal assistance or other qualifying expenses. Under the new structure, qualifying businesses could receive $2,500 at Phase I, $5,000 for Phase II and $16,500 for Phase III. Vouchers and grants enable startups to accelerate their business much faster than if they were to start their business with no assistance. The phased process also provides for exits in the event a participant is not moving forward in the program. Since 2014, 182 startups participated in InnovateND. In a recent survey with 106 participants reporting in 2016, these startups had created 279 jobs resulting in an economic impact of $34.7 million. For more information: Kevin Lunke kevin@innovators.net
Brudvik Law Office Joins the Center for Innovation A regional law firm now serves the Grand Forks area from the UND Center for Innovation. Brudvik Law Office began seeing clients by appointment at the Center starting in March. The full-service law firm has helped guide clients through increasingly complex legal issues for more than 35 years. With more than 70 years of combined legal experiences, Brudvik’s lawyers works together to address complex and straightforward legal issues facing businesses, individuals and generations of families.
Assigned to the firm’s Grand Forks location is Cassie Tostenson, a North Dakota native holding a bachelor’s degree in political science from University of North Dakota and a juris doctorate, along with a certificate in public interest law, from Santa Clara University School of Law in California.
Tostenson has worked for Brudvik Law for three years and has practiced law for 15 years. While in law school, she conducted pro bono work for East San Joe Law Clinic, representing clients before federal immigration courts. She is licensed to practice in California, Minnesota, North Dakota, and the United States District Court for the Eastern District of California and for the District of North Dakota. To make an appointment: 701-786-6177 www.brudviklaw.com
Cassie Tostenson
Veterans Entrepreneurship Program Reviewing Applicants for Bootcamp The Veterans Entrepreneurship Program application period has closed and the committee is reviewing and selecting the applicants who will join the eight-day program in Grand Forks, N.D. The program accepts veterans who have gained valuable knowledge and skills during their time of service, with the goal of helping translate these skills into the civilian world through business ventures. The VEP helps veterans launch successful businesses through online education followed by an eight-day resident boot camp and five months of ongoing mentoring from business experts. The program is free to veterans and also covers travel, lodging and meal expenses for the week of the boot camp.
The upcoming Fall VEP will accept a total of 25 veterans. The selected candidates will start their online instruction on August 21. The boot camp is scheduled for Oct. 21-28 at the Center for Innovation on the campus of the University of North Dakota in Grand Forks. The program is made possible through a collaboration between the Center for Innovation Foundation and UND School of Entrepreneurship. Apply online: https://ndvep.com/apply.html For more information on VEP: Tyler Okerlund tyler@innovators.net 866-580-4821
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Kenville Announced as North Dakota Economic Development Foundation Board Member North Dakota Commerce Commissioner Jay Schuler announced five new board members of the North Dakota Economic Development Foundation in June 2017, including the UND Center for Innovation Foundation’s Vice President of Development Tommy Kenville. “This group of individuals brings a wealth of experience and understanding of the business community and will be a great additional to our board,” Schuler said. “I am confident our new members will provide private-sector guidance, helping us to create strategic plans to strengthen and broaden North Dakota’s economic development.” Kenville, of Grand Forks, is the founder and president of Tglobal, Inc. and also serves as a consultant to the Center for Innovation Foundation in roles as a rainmaker and vice president of development. Kenville established T-Kort LLC and founded Unmanned Applications Institute
International. He also serves as a managing member for University Hotel Development LLC and chairs the Valley Angels investment fund. The North Dakota Economic Development Foundation is a private foundation established by the Legislature in 2001 to provide privatesector guidance and oversight of the state’s economic development efforts. The Foundation board helps create strategic plans to strengthen and broaden North Dakota’s economic development. The foundation, which serves as an advisory body to the North Dakota Department of Commerce, establishes and maintains a strategic plan for economic development managed by business leaders from all corners of the state. The board meets quarterly to monitor progress toward economic development goals, to discuss major business and economic issues and to offer suggestions for improving North Dakota’s business climate.
The North Dakota Department of Commerce works to improve the quality of life for North Dakota citizens by leading efforts to attract, retain and expand wealth. Commerce serves business and communities statewide through committed people and partners who offer valuable programs and dynamic services. For more information: www.NDCommerce.com Contact: tom@innovators.net
Angel Fund Tax Credit Sees Changes Following North Dakota Legislative Session The North Dakota Legislature made changes to the state’s angel fund tax credit law during its most recent session. After July 1, investors in angel funds will receive a 35 percent state tax credit for investments made in North Dakota ventures. Investments made in out of state ventures may receive a 25 percent state tax credit.
There is a five-year carryforward on tax credits. Enforcement penalties and payback provisions have been added prevent misuse of the tax program by allowing the state securities, tax and commerce commissions to work together and to combat abuses in real estate and loan deals. For more information investments to grow your business or investing in an angel fund: info@innovators.net
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SkySpecs, iSight RPV Services Partner for Multi-State Wind Turbine Inspection Two unmanned aircraft systems companies with ties to North Dakota inspected an unprecedented number of wind turbines in a 30-day period across several states this spring. SkySpecs, a drone solutions firm offering an automated inspection system tailored for wind turbines, partnered with Grand Forks, N.D.based flight operations firm iSight RPV Services to complete the inspections. In all, the two companies inspected 483 wind turbines for a total of 1,449 blades flown and documented using unmanned aircraft. The use of these aircraft significantly decreases the amount of time spent inspecting these structures.
“Using the SkySpecs system in the field has completely changed the way I work,” iSight Service Operator Adam Overvold said in a statement. “I press ‘GO’ to launch the inspection and the whole thing is finished in under 15 minutes. The time between turbines using SkySpecs’ system is 23 minutes as opposed to manual inspections, which were two hours from turbine to turbine.” iSight RPV Services is a tenant of the UND Center for Innovation and SkySpecs is a portfolio company of the Harvest Fund managed by Dakota Venture Group, a studentrun investor group headquartered at the Center for Innovation. Dakota Venture Group announced its investment into SkySpecs in June 2016.
Bank of North Dakota Hires New Business Banker at UND Center for Innovation Office The Bank of North Dakota recently hired a new business banker for its office in Grand Forks at the UND Center for Innovation. Tyson Zeltinger joined BND in June as a business banker in the financial institutions market. Zeltinger comes to BND with a background in community banking. “Having an office within the Center for Innovation allows BND to really be immersed within the entrepreneurial community,” Zeltinger said. “I could not be more excited for this opportunity to work for BND and to be a part of all that is happening at the Center.” Zeltinger earned his bachelor’s degree in business administration and MBA from the University of Mary. He has lived in Grand Forks for 10 years. To make an appointment: tzeltinger@nd.gov
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O’Brien Moves into New Role at Center for Innovation A familiar face at the UND Center for Innovation has stepped into a new role. Emily O’Brien recently was named program director for the North Dakota’s Small Business Innovation Research and Small Business Technology Transfer (SBIR/STTR) program. O’Brien has been a part of the Center for Innovation team for five years, previously working as an entrepreneur specialist where she focused on entrepreneur coaching, programs and marketing.
resources for research and development — 11 federal agencies reserve a percentage of their research and development budgets for small businesses. SBIR/STTR grants and contracts are awarded to fund research and development that encourages the commercialization of new technologies, and O’Brien helps companies secure those funds. For more information on SBIR/STTR: Emily O’Brien emily@innovators.net
In her new role, O’Brien helps small businesses secure federal SBIR/STTR funding for research development activities as well as coaching entrepreneurs through other Center for Innovation programs. Recognizing that high-tech innovation thrives in entrepreneurial settings — which often lack the
iSight RPV Services Granted Permission to Fly UAS at Night The Federal Aviation Administration has granted North Dakota unmanned aircraft systems company iSight RPV Services permission to fly its aircraft at night.
capture data for a variety of purposes. iSight currently flies unmanned aircraft for agricultural, critical infrastructure, wildlife management, insurance and emergency services.
On May 12, the company received a waiver needed for nighttime flights, which allows iSight to operate UAS at night for two years.
For more information on Isight:
Unmanned aircraft outfitted with lights and special sensors, such as thermal cameras, can fly in the dark and
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www.isightrpv.com
ISIGHT RPV SERVICES
Dakota Venture Group Members Keep Work a Priority during Summer Summer break is here for many University of North Dakota students, but Dakota Venture Group associates and directors continue to fulfill their responsibilities as a student investors. Several DVG members have spread out across the country for internships and jobs, some packing up and heading west to California and Washington. One member made an even longer trek, traveling to India for an accounting internship. Despite being spread out, the group continues to meet every two weeks and is currently working on two due diligence reports. Its members plan to make one or two more investments before reserving the remaining capital for follow-on funding. Earlier this year, DVG highlighted an investment into Cartogram, Inc. Since then, the company has made significant progress and a second, smaller, investment has been made with the company. Group members say they are excited to see the direction that Will Clausen, Cartogram CEO and founder, is leading his team and the hard work they are doing to ensure success.
New Board Members DVG also recently added two members to its advisory board, Phil Gisi and Sam McQuade. Gisi is the CEO and chairman of the board at Edgewood Group and brings an extensive background in both business administration and real estate. McQuade is the CEO, CFO and founder of M8 Financial and has an impressive background procuring merger and acquisition deals, leading strategic negotiations and post-deal integration activities. Golf Tournament To close out the summer, Dakota Venture Group would like to invite the public to its second annual golf tournament at the Grand Forks Country Club. All proceeds will be donated to the Bruce Gjovig Endowment to support entrepreneurial activities for students and startups at the UND Center for Innovation. The tournament will be held at 1 p.m. on Sept. 14. Drink tickets are provided and a dinner will follow the golf event. For more information about Dakota Venture Group: www.dakotaventuregroup.com
Harvest Fund 1 As Harvest Fund I nears the end of its fifth year, members are starting to discuss the possibility of raising Harvest Fund II. Harvest Fund I focuses on investments in high-growth, early stage ventures in the primary sectors of region including medical, technology and energy. Until a decision is made in regard to Harvest Fund II, DVG will continue to monitor its current portfolio and make follow-on investments as the opportunities present themselves. More information on raising a second fund could be expected within the next 12 to 18 months.
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NONPROFIT ORG US POSTAGE PAID GRAND FORKS ND INA MAE RUDE ENTREPRENEUR CENTER NORM SKALICKY TECH INCUBATOR
PERMIT #10
4200 James Ray Drive Grand Forks, ND 58203
Address Service Requested 701.777.3132 www.innovators.net newsletter@innovators.net The UND Center for Innovation helps entrepreneurs, innovators, students and researchers launch new technologies, products and ventures, develop business and marketing plans, access UND talent and secure venture financing.
SUPPORT ENTREPRENEUR STUDENTS & ENTREPRENEURS
The success of the UND Center for Innovation is made possible by the investors in our quality programs resulting in national recognition for excellence. Our programs favorably impact our future talent 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 Tom Kenville or Barry Beloff or info@innovators.net.
Opportunities to Invest in the Future UND Center for Innovation Foundation Priority Needs for the Center • Entrepreneur Coaching for Venture Development • Student Startup Programs • Dakota Venture Group (Student Venture Fund) • Veteran Entrepreneur Program School of Entrepreneurship
• Student Scholarships and Internships • Entrepreneur Speaker Series • Student Experiential Learning • Professors of Entrepreneur in Practice • Faculty and Staff Development • Entrepreneurs in Residence
Barry Beloff
VP of Donor Relations UND Center for Innovation Foundation 612.867.3142 barry@innovators.net
Tommy Kenville
VP Development & Rainmaker UND Center for Innovation Foundation 218.779.9950 tom@innovators.net
Kim Woods
Associate Vice President, UND Foundation College of Business & Public Administration 701.777.4106 kimw@undfoundation.org Contributions to the UND Center for Innovation Foundation are tax deductible and included in your UND Foundation Giving record. Donors may qualify for a 40% state income tax credit with a minimum gift of $5000 to an endowment.