20140421-NEWS--1-NAT-CCI-CL_--
4/18/2014
3:31 PM
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Vol. 35, No. 16
$2.00/APRIL 21 - 27, 2014
Entire contents © 2014 by Crain Communications Inc.
Startups stalled by lack of capital Fledgling businesses could be forced to leave state, find investors elsewhere By CHUCK SODER csoder@crain.com
tices that I did that.’ ” Shapiro said he didn’t get a “whole lot” of reaction from the subtle message, but that doesn’t diminish the impact of what the Indians believe will be a gamechanger. The Tribe preaches fan experience more often than Tom Hamilton makes an enthusiastic home run call, and until this season, they were somewhat hamstrung by a ballpark at which fans had difficulty doing something as simple as sending a text message or tweeting that they were at a Tribe game.
Northeast Ohio is mass producing high-tech companies, but something is wrong with the assembly line. There aren’t enough local investors willing and able to fund the dozens of tech companies pouring out of the region’s three business accelerators and other programs designed to help local startups, according to several sources. Competition for cash is increasing at a time when the pool of capital is shrinking. And locally, the pool was never that big. As a result, some startups could leave the state in an effort to find investors elsewhere. Others could have to survive with less, if they survive at all. The lack of capital is a big problem for companies graduating from the LaunchHouse Accelerator program. So big that the Shaker Heights-based program has decided to change its focus. Many of the 21 startups that have graduated from the boot camp-style business accelerator have had trouble raising money from local investors, according to LaunchHouse partner Todd Goldstein.
See TRIBE Page 20
See STARTUPS Page 22
TRIBE FANS ARE DIALED IN REBECCA R. MARKOVITZ PHOTOS
Indians quietly roll out new Wi-Fi, cellular networks during home opener By KEVIN KLEPS kkleps@crain.com
T
he Cleveland Indians hadn’t publicized the fact that, for the first time, the sold-out crowd at Progressive Field for the home opener on April 4 was able to access the club’s new Wi-Fi and cellular networks. But Mark Shapiro couldn’t help himself. When @skyfire1984, a Tribe fan named Nick, tweeted, “I thought I
couldn’t love the @Indians any more!” during the home opener, he included a screen grab that showed he was on the club’s ballpark-encompassing WiFi network. Shapiro, the Tribe’s president, retweeted the message and picture to his more than 54,000 followers. “I told Neil (Weiss, the Indians’ senior vice president of technology and chief information officer), ‘The fact that there is a small subset of people that are noticing, I’m going to tease that a little bit and see if anybody no-
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