INNOVATION TO ENTERPRISE
2009 ANNUAL REPORT
2009 Provided commercialization services to 114 Oklahoma technologybased start-up companies. Assisted 32 companies in raising $25M in private capital. Awarded $1M in proof-of-concept funding to 10 Oklahoma start-ups. Fully Committed the first series of the Oklahoma Seed Capital Fund. Created a fellowship program linking Oklahoma college students with technology start-up companies. Launched the SeedStep Angels and became accepted as a member of the Angel Capital Association. Profiled by Inc. Magazine for our angel and seed capital efforts raising Oklahoma’s national visibility.
Letter from the president i2E has just completed our eleventh year of operations. We are proud of our contribution to Oklahoma’s growing technology sector. Expanding our state’s innovation economy calls for a pipeline of entrepreneurs. Those entrepreneurs need professional development, a proven and efficient approach to commercializing their ideas and technologies, and access to capital. i2E helps meet each of these needs. As we continue to evolve as one of the leading technology-based economic development organizations in the country, i2E identifies and addresses the gaps in Oklahoma’s entrepreneurial ecosystem. This past year, we established SeedStep Angels, a group of angel investors banding together to assist high growth companies. We also launched the i2E Fellows, a program which embeds university students in start-up companies for a paid fellowships that that advance the company while building entrepreneurial skills for the students. Our services are made possible by state funding through the Oklahoma Center for the Advancement of Science & Technology (OCAST). This investment is having a positive and measurable impact on the creation of high-growth businesses and knowledge-based jobs in our state. It is my pleasure to present our 2009 accomplishments. We look forward to continuing to help our state’s early stage advanced technology entrepreneurs start up and grow businesses that create jobs and wealth for Oklahoma.
Tom Walker President & Chief Executive Officer
PARTNERS:
COMMERCIALIZATION SERVICES
OKLAHOMA IDEAS, OKLAHOMA PEOPLE
“ Technology and knowledge-based jobs are the engine that will drive Oklahoma’s future economy. For a decade now, i2E has fueled that engine with its nationally acclaimed commercialization services, management of capital resources and initiatives to grow the numbers of young entrepreneurs in the state. We are fortunate to have i2E putting its expertise to work to build our tech-based economy. ” – Brad Henry, Governor of the State of Oklahoma
Location: Oklahoma City Start year: 2002 Employees: 20 Technology: Internet-based software that provides analytical data for the healthcare industry. Market: Ambulatory Surgery Centers Funding: Received proof-of-concept funding in 2006 through the Technology Business Finance Program and within two years paid back the award. In 2008, Medibis was acquired and the core business continues to grow in Oklahoma.
www.genascis.com
“Our story is that we were a start-up. We created revenue and jobs, got acquired, and get to keep growing our business in Oklahoma. It’s the best of all worlds. We are very grateful and appreciative of i2E’s assistance.” – Roy M. Georgia, Founder of MEDIBIS
COMMERCIALIZATION SERVICES
As a single point of entry for services, knowledge and advice, i2E works with innovators and entrepreneurs on how to analyze risk, create business plans, pitch to investors, and network with business professionals.
We help high growth small technology-based businesses.
Client Companies by Number of Employees
11-20 13%
1-10
72%
21-50
13% 2%
51-100
We work with a diverse portfolio that employs a highly educated workforce. Client Companies by Industry
Education Level of Client Workforce ENVIRONMENTAL
5% IT/SOFTWARE
ENERGY
8%
44%
9% 11% 23%
PhD
9% MASTER’S
SUBASSEMBLIES & COMPONENTS
15%
OTHER BACHELOR’S
LIFE SCIENCES
51%
OTHER
25%
In 2009, i2E provided services to 114 companies and positioned 42 for funding, resulting in 75% of these companies securing $25M in private equity investments.
Building a pipeline of Oklahoma technology-based companies.
40
Client Companies Positioned for Funding
35 30
PROOF-OF-CONCEPT
25
SEED
20 15 10
EARLY STAGE
5 0 FY 2007
FY 2008
FY 2009
During the past 5 years, 82 companies have raised $145M in equity investments.
2005-2009 Equity Investments: Percentage of Companies by Industry
IT/SOFTWARE
2005-2009 Equity Investments: Amount Invested by Industry
50% 9% 17% 24% LIFE SCIENCES
ENERGY
OTHER
IT/SOFTWARE
$64.7 M $6.8M
ENERGY
$13 M $60.5 M LIFE SCIENCES
OTHER
COMMERCIALIZATION SERVICES
Thriving entrepreneurial regions offer a broad menu of networking opportunities essential for linking companies to potential sources of capital, employees, strategic partners and service providers.
We provide statewide networking opportunities to Oklahoma innovators and entrepreneurs.
We connect them to the business community through events, news media and publications.
i&E Luncheons Provided a forum for 16 client companies and researchers to present their technology to 320 business and community leaders.
Media and Communications Published 147 local media articles on i2E clients and programs.
Tech Night Out Receptions Hosted 6 networking receptions bringing 732 entrepreneurs, investors and community leaders together. i&E Magazine Shared 20 client stories and 14 articles on Oklahoma entrepreneurial topics to a readership of 6000 nationwide. Who Wants to be an Entrepreneur Workshop Partnered with Oklahoma EPSCoR on a full day entrepreneurial workshop for 200 college students and faculty advisors. Tech E News Highlighted 20 client portfolios, 30 blogs on up and coming Oklahoma entrepreneurs and researchers.
Conducted 148 local and national presentations, including radio shows. Profiled in Inc. Magazine for the development of angel and seed capital. Testified before the House of Representatives Small Business SubCommittee on the “Expanding Equity Capital in Small Businesses�. Prepared 103 clients for 63 investor presentations.
i2E clients drive innovation and prosperity, paying 84% higher wages than the state average and have a propensity to export products with 77% of their revenues coming from outside the state.
High growth businesses import capital and create higher paying jobs. Client Companies Sales Distribution
OUTSIDE OF OKLAHOMA
66% 23%
OKLAHOMA
11% INTERNATIONAL
Client Companies Average Annual Wage Comparison
$70,000 $60,000
Commercialization Impact i2E clients report the following impact on Oklahoma’s economy:
$50,000 $40,000 $30,000 $20,000 $10,000 $ OKLAHOMA AVERAGE
i2E CLIENT
• $116M in annualized revenues • 77% of revenues outside state • $43M in annualized payroll • 948 full time employees • Average annual wage of $65,461 • 336 new products/services
A C C E S S T O C A P I TA L CONNECTING DOLLARS WITH GOOD IDEAS
“ When speaking to groups around the country on angel investing, I often point to i2E as a positive example of what can be accomplished through creative use of commercialization services and specialized programs.” – John May, Chairman Emeritus of the Angel Capital Association
Location: Tulsa Start Year: 2003 Employees: 5 Technology: Proprietary software application automatically converts digital photos to create high-impact, multi-media presentations. A second proprietary application automatically creates a secure proofing tool allowing customers to view photos at home on full screen television. Market: $7 billion professional photography industry. Funding: Received proof-of-concept funding through the Technology Business Finance Program, private equity investors and Oklahoma Seed Capital Fund.
www.emotionmedia.com
“i2E continues to provide great consulting and guidance. Our advisor is absolutely fantastic. The whole organization has so much experience, and everyone there is so committed to what they are doing. They are able to provide assistance to any entrepreneur, but especially someone who hasn’t done a start-up before.” – Brian McMurray, Co-Founder
ACCESS TO CAPITAL
The U.S. Small Business Association reports that access to organized risk capital early in a company’s life greatly increases its survivability. Access to proof-of-concept funds, seed capital investment and supporting the growth of angel groups are just a few ways that i2E helps connect companies to funding. Over the past 10 years, thirty seven of 42 companies that received venture capital investment were i2E clients. These companies received 90% of all the venture capital investment that went to Oklahoma technology companies.
The Capital Lifecycle
PROFIT
PROOF-OF-CONCEPT
BREAK EVEN TIME EARLY SEED
START-UP
Fully committing the first series of the Oklahoma Seed Capital Fund and creating a new angel group were among our accomplishments in 2009. Our efforts in angel and seed formation were profiled in Inc. magazine, increasing Oklahoma’s national recognition. We have been active in the angel capital movement, serving on the boards of directors of the Angel Capital Education Foundation and the Angel Capital Association, of which we currently chair the membership committee.
MATURITY
GROWTH
This year i2E launched the SeedStep Angels as an independent manager-led angel group meeting the SEC’s qualifications for accredited investors. Our efforts were recognized when we were accepted as a full member of the Angel Capital Association.
ACCESS TO CAPITAL
The OCAST Technology Business Finance Program (TBFP) provides Oklahoma technology companies the critical Proof-of-Concept funding needed to support early product development and business development. This funding acts as a catalyst for additional private investment and is managed as a revolving fund; paybacks from entrepreneurs have funded nearly 30% of all proof-of-concept awards.
95
70%
Companies Funded
Survival Rate
30%
Entrepreneurs funded by Entrepreneurs
The TBFP funds a diverse portfolio of technology-based industries. Proof-of-Concept Funding by Industry
OTHER MANUFACTURING EQUIPMENT
2%
ENERGY/ENVIRONMENTAL ADVANCED MATERIAL
COMPUTER HARDWARE AND SOFTWARE
9%
6%
27%
6% 24%
LIFE SCIENCES
26% INFORMATION TECHNOLOGY
In 2009, 10 Oklahoma companies received a combined $1,000,000 in proof-of-concept funding. Entrepreneurs repaid $367,746 and an additional $100,000 of unused funds were reclaimed.
TBFP Funding History 1999-2009 $10M
• Since inception, TBFP has received $3.3M in principal and premium repayments and 17 awards totaling $1.57M have been written-off or written-down.
$8M $6M
• Awardees have gone on to raise over $210M in additional private capital, leveraging the state’s investment more than 28:1.
$4M $2M
• TBFP clients represent 53% of all i2E client companies receiving venture capital investment.
$ COMPANIES FUNDED
REPAYMENTS
TBFP recipients access a significant amount of private investment. Cumulative Private Equity Investment 1999-2009
$250M $200M $150M $100M $50M $ 1999
2001 ALL TBFP COMPANIES
2003
2005
ACTIVE TBFP COMPANIES
2007 STATE INVESTMENT
2009
2009 PROOF-OF-CONCEPT PORTFOLIO
Since 1999, nearly $9M has been funded to 95 Oklahoma start-ups. Currently, 54 companies are in the active portfolio. Cog Togs, Inc. recognizes parental fears of child predators and safety surrounding the Internet. As safety experts explain, children do not understand they can be talking to strangers. They do not consider that engaging in conversations with people they do not know presents dangers. Thus, despite high demand by young children, parents are reluctant to allow them to engage in social networking. Digitouch Innovations has developed an innovative Digital Signage Product, the Digierge, and a revolutionary admin and advertising network, the Touch Network. The Digierge “Digital Concierge” is a sleekly designed information device for Hotels, Resorts, Sports Arenas, Convention Centers, Casinos and more. The device is a 42” LCD monitor embedded with a PC, speakers and preloaded with the Digierge Software. By identifying the items a shopper plans to buy and then matching coupons to those items at the least expensive local grocer Grocio.com offers to save shoppers a substantial amount of money at the checkout counter. Grocio.com offers not only dollar savings, but the time savings could be significant too. The shopper no longer has to spend time clipping coupons, managing them and the remembering to take them to the store. The Merchant Metrix Shopping Cart (MMSC) has developed patent pending ecommerce software that opens the doors to the search engines and ensures top search placements. The MMSC will provide merchants with insight into how their online businesses function through a unique set of reports, statistics and analytics packages. Merchants will be able to take these reports and evaluate the business’ performance and make educated adjustments to increase sales and profitability. NexGenData is a partnership of four founders with extensive experience in developing, selling, and implementing systems for communications service providers (CSPs), large enterprises, and governmental agencies. Their first product, NexGen Navigator, innovatively applies the approaches of Internet leaders like Google and Amazon.com to solving long-standing enterprise problems.
Radi-Lux provides Customer Community Software, also called Social Business Software, as a true Software-as-a-Service (SaaS) offering. The Radi-Lux Customer Community Software is a solution for an emerging market, providing powerful feedback and proprietary analytical tools that alert companies of their customers in danger of being lost, identify opportunities to cross-sell/upsell products, and create/facilitate customer collaboration, reducing support costs. Search and Clear is a secure, SaaS (“software as a service”) collaborative workflow platform that enables clients to create, annotate and share critical documents and communications in real-time, within an exceptionally intuitive interface. S&C’s completely Web-based, seamless collaborative workflow addresses key issues facing both business and government. Sigma Blood Software Suite is a blood center technology created to solve major problems faced by blood centers worldwide. Sigma Blood uses Six-Sigma principals to address areas of blood center operations that directly improve the bottom line. Sigma Blood Software Suite consists of three main applications: Platelet Manager™ to optimize platelet pheresis manufacturing, QC Manager™ to comprehensively manage a blood center’s quality control operations, and Blood Tracker™, which controls and tracks blood samples and blood bags for testing and inventory management. Synthesized Nano Coatings, Inc. (SNC) was formed to develop and commercialize a platform nanochemistry technology. The patented technology has been tested on a lab scale and has been shown to enable the production of water and stain resistant cotton fabric. The Company is focusing on process development and optimizing the formulation to achieve scaled-up fabric performance. UVIZZ is a platform for user-generated ads, and is designed specifically for social networks. Their platform will combine user ads with viral spread, which will unlock the advertising potential of the social network. UVIZZ is a Facebook application. The system is designed to support multiple social networks giving users complete coverage of their online social circle.
Oklahoma companies accessing this proof-of-concept funding have filed for 17 patents and hired 151 full time professionals just in the last 12 months.
The active TBFP portfolio generates intellectual property and high paying jobs. TBFP Clients Patent Portfolio
TBFP Clients Average Annual Wage Comparison $80,000
200 180 160 140 120 100 80 60 40 20 0
$70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000
$ OKLAHOMA AVERAGE FILED
ISSUED
FILED
TBFP CLIENT
ISSUED
Since Company’s Inception Last 12 Months
Proof-of-Concept Impact i2E clients receiving TBFP funding report the following impact on Oklahoma’s economy: • $38M in annualized revenues • 63% of revenues outside state • $25M in annualized payroll • 405 full time employees • 66% of jobs: Bachelor’s or higher • Average annual wage of $71,605 • 105 new products/services • 197 patents filed, 84 issued
ACCESS TO CAPITAL
The Oklahoma Seed Capital Fund is a series of investment funds created to provide seed and start-up equity financing to Oklahoma advanced technology companies. In 2009, i2E concluded the investment cycle of the first series of the fund with investments in 7 Oklahoma companies that attracted more than $15M in co-investment. This first series was approximately a $7M fund which included the Oklahoma Center for the Advancement of Science and Technology, Oklahoma Development Finance Authority, Oklahoma Capital Investment Board and i2E as investors.
2009 Oklahoma Seed Fund Investments About 1.2 million Americans suffer from inflammatory bowel disease. The two most common forms, ulcerative colitis and Crohn’s Disease, are chronic lifelong conditions which significantly impact the quality of life. The Altheus therapy combines two FDA approved drugs in a novel way and has been shown to be highly effective in animal models. CreditPoint is a single software application that can be deployed either as an Enterprise installation or via the Company’s Software as a Service (SaaS) platform. The Enterprise solution is designed for Fortune 1000 companies and installed on the server platform behind the customer’s firewall. eMotion Media, LLC has developed a proprietary DVD technology that gives photographers a higher quality, less expensive way to present and sell their photos. DVDs are created in a fraction of the time using technology automation and includes a professional, production-quality media presentation with music, motion and special effects. Exerbotics, LLC manufactures advanced technology equipment and devices for commercial fitness applications such as: Collegiate/ Professional Athletics, Physical Medicine Rehabilitation and Occupational/Industrial Medicine.
iThryv provides an intuitive on-line banking experience for kids through young adult. Their platform utilizes a sophisticated algorithmic content engine that “serves” information to the user based upon Savings Scores, age range schema’s, parental and institutional controls. The Lifetone (Innovalarm) prototype product is a stand-alone device capable of correctly detecting, identifying, and interpreting either a Smoke Alarm or Carbon Dioxide Alarm from the current standard “sounding signal” or “time signature.” It then rebroadcasts the warning signal at a much lower frequency. Selexys Pharmaceuticals is focused on the development of a humanized anti-PSGL-1 antibody for the treatment of Crohn‘s disease and delayed graft function in Kidney transplant. In parallel, Selexys is developing an anti P-selectin antibody to treat vasoocclusive crisis in Sickle Cell Disease.
The Seed Fund portfolio is driving innovation with 12 patents filed and $5.4 million in revenue generated in the past 12 months. The demand for seed funding continues to grow as Oklahoma’s entrepreneurial community builds a diverse array of technology companies.
Building a pipeline of seed capital opportunities. Clients Companies Positioned for Seed funding
SUBASSEMBILIES & COMPONENTS COMPUTER HARDWARE PHARMACEUTICALS BIOTECHNOLOGY MEDICAL COMPUTER SOFTWARE 0 1 2 3 4 5 6 7
Seed Fund Impact The Seed Fund portfolio reports the following impact on Oklahoma’s economy:
• 49 full time employees • 44% job growth rate • Average annual wage of $102,000 • 32 patents filed, 16 issued • $5.4M in revenue • Nearly $4M in federal grants
ENTREPRENEURIAL DEVELOPMENT
ENHANCING TALENT & ENCOURAGING ENTREPRENEURSHIP
“The programs that i2E has established over the last decade are helping grow the state’s knowledge-based economy with new high-tech startup businesses and entrepreneurs who possess the necessary skills to manage them. It has been my honor to be involved with the Donald W. Reynolds Governor’s Cup collegiate business plan competition, which has provided the opportunity for hundreds of our future entrepreneurs to gain insight into researching the market, writing a business plan and presenting that plan to potential investors.” – Glen Johnson, Chancellor of Higher Education for the State of Oklahoma
Location: Oklahoma City Start year: 2005 Employees: 2 Technology: Vaccine to prevent periodontal disease offering a simple once a year solution for pet owners that will improve the quality of life and possibly extend it by 3 to 5 years. Market: A global animal health product market of $3.2 billion. Companion veterinarians are the principal customers and sales force with pet owners as beneficiaries. Funding: Received proof-of-concept funding through the Technology Business Finance Program, Oklahoma Applied Research Support (OARS) grant and funding through the City of Oklahoma City’s Emerging Technology Fund in its Strategic Investment Program (SIP).
“When you are deep into a company and the idea of a technology, sometimes you don’t look at the bigger picture. You plan it all out and think it should take this long to do one step and it always takes a lot longer. There is nothing you can do about it. It’s just how it works. That’s when it is helpful to have someone else, like i2E, who is there to provide assistance say, ‘have you thought about this, or what would happen if you tried that?’”
– James Haddock, CEO
E N T R E P R E N E U R I A L D E V E LO P M E N T
Encouraging Oklahoma’s young entrepreneurs through a statewide collegiate business plan competition that is based on innovation and technology.
Donald W. Reynolds Governor’s Cup This statewide business plan competition encourages college students to act upon their entrepreneurial ideas and develop skills to lead tomorrow’s innovative new businesses. Students compete for nearly $200K in cash, $40K in fellowships, and $15K in scholarships. Students gain access to networks of successful entrepreneurs, community leaders and investors; enhance their business planning skills; and are encouraged to pursue a career in entrepreneurship.
GRADUATE DIVISION First Place-$20,000 HEXAKIT, LLC, Oklahoma City University Faculty Adviser: Robert Greve Team Leader: Paul Poputa-Clean Team Members: Bridget Shuck and Timothy Harlin Concept: Hexakit produces and promotes Hexamibi, which is a generic version of a heart imaging drug used to investigate the damage caused by a heart attack.
Second Place-$10,000 Digital Native Learning, University of Oklahoma Faculty Adviser: Daniel Pullin Team Leader: Matt Colwell Team Members: Stafford Marquardt, Steven Watts and Glenne Whisenhunt Concept: Digital Native Learning is developing innovative software to provide a more effective and engaging educational experience for sixth grade through 12th grade student. Third Place-$5,000 Bio-Oil Extraction Technologies, LLC, University of Oklahoma Faculty Adviser: Lowell Busenitz Team Leader: Nicholas Harrison Team Members: Linh Do and Greg Khandogin Concept: Bio-Oil Extractions will use newly developed technologies to make biodiesel a viable alternative fuel.
UNDERGRADUATE DIVISION First Place-$20,000 Renephron Pharmaceuticals, University of Oklahoma Faculty Adviser: Daniel Pullin Team Leader: John Woodson Team Members: Ben Ikard, Juan Diego Alonso and Sam Galoob Concept: Renephron Pharmaceuticals is developing life-changing drug therapies for patients with polycystic kidney disease and other inflammatory diseases.
Second Place-$10,000 DustDown, University of Oklahoma Faculty Adviser: Cameron McCoy Team Leader: Blaine Pinard Team Members: Steven McClung, Ryan Reber, Taylor Toth and Heather Matthews Concept: DustDown provides an oil polymer mixture that forms a thin, hard sealant layer when applied to unpaved roads, solving the problem of dust and erosion. Third Place-$5,000 Fifth Slope, University of Oklahoma Faculty Adviser: Lowell Busenitz Team Leader: Andy Nicek Team Members: Bradley Short, Justin Shofner, Doug Rains and Daniel Sposito Concept: Fifth Slope developed a custom and comfortable form fitting inflatable ski boot liner designed to increase safety.
INNOVATION AWARD The Innovation Award recognizes the most feasible business plan with at least one member who plans to continue on to commercialize the technology. Innovative Solutions will receive $50,000 of in-kind services to advance the business from the following local industry experts:
THE PAULSEN AWARD The Paulsen Awards, sponsored by the Oklahoma Business Roundtable, awarded two $5,000 scholarships to Oklahoma entrepreneurial students participating in the Governor’s Cup competition. Timothy Harlin, Oklahoma City University Nicholas Harrison, University of Oklahoma
Cole & Reed i2E, Inc Jordan Associates Oklahoma Business Roundtable Partners HR Innovative Solutions Oklahoma State University, Stillwater Faculty Adviser: Jon Wiese Team Leader: Chas Craig Team Members: Conley Fincannon and Shannon Jarmer Concept: Innovative Solutions is bringing a new standard of health care to the market with the innovative Perry Intravenous Catheter. The patentpending closed design Intravenous IV and patent pending syringe create a solution to a long-standing problem of conventional open systems that expose health care workers to blood-borne illnesses and patients to infection.
TRI-STATE WINNERS The first and second place winning teams in the undergraduate and graduate divisions competed in a TriState oral competition in Las Vegas. These teams competed with winners from Arkansas and Nevada for $90,000 in cash prizes. Oklahoma teams brought home two of the four prizes. Graduate Second Place
Hexakit, LLC Undergraduate Second Place
Renephron Pharmaceuticals
Governor’s Cup Impact • 26 Campuses statewide • 150 Innovative ideas • 650 College students • $700,000 in cash awarded • $150,000 in kind services • $15,000 in scholarships • $40,000 in fellowships • 12 ideas commercialized
E N T R E P R E N E U R I A L D E V E LO P M E N T
Fostering entrepreneurship by matching start-up technology businesses with college students to gain hands-on experience and develop networks.
2009 i2E FELLOWS Through sponsorship by the Greater Oklahoma City Chamber and the participating companies, five Oklahoma college students embarked on a 10-week unique business project-oriented fellowship this summer. When their Fellowships were completed, the students all reported a rewarding experience that helped refine their career goals. Fellows were selected from participants in the Donald W. Reynolds Governor’s Cup competition and the companies competed to be selected. Students earned stipends ranging from $6,000 - $8,000 during their Fellowship. Each of the Fellows carried specific skills to their posts that allowed them to tackle meaningful assignments. Some fellows continued working for the companies, while others were inspired to consider entrepreneurship as a career option. All gained new-found respect for the ingenuity and work ethic that entrepreneurs showed in building their businesses.
Nicholas Harrison, University of Oklahoma, Dual-track grad student, OU School of Law and an MBA candidate in the Price College of Business Administration Nicholas Harrison conducted a nationwide market analysis for Avansic during his Fellowship. His work helped determine new markets in which the company may enter. Avansic is one of the country’s leading digital forensics firms and services the legal and business communities through electronic evidence discovery, data preservation, expert witness testimony and litigation support. – Tulsa Project: The project involved assisting Avansic in validating, confirming and enhancing the metrics used to determine the viability of their eight expansion markets, including competitive analysis, access to local resources and other economic factors.
Ryan Reber, University of Oklahoma, Entrepreneurship Venture Management major Not only did Ryan Reber help develop administrative processes to enhance customer growth and services associated with the launch of Breeze Legal Solutions legal document management software, he also conducted market research for the company among other tasks during the Fellowship. Breeze Legal Solutions provides software that allows legal firms to process electronic evidence. – Tulsa Project: The project focused on developing various administrative processes to support the customer growth and services associated with the company’s new product launch.
“We know we have technology based start-up companies that are looking for expertise and assistance, and we know we have emerging entrepreneurs coming out of our university system who are looking for real world experiences. The Greater Oklahoma City Chamber is very excited about this opportunity.” – Robin Roberts-Krieger, Executive Vice President, Greater Oklahoma City Chamber
Dustin McBride, Oklahoma State University –OKC, Finance major
Nathan Nelson, Oklahoma City University, Economics and Finance major
Dawit Soparkdithapong, University of Tulsa, MBA candidate and MS in Finance
The 10-week i2E Fellowship Dustin McBride served with Digitouch Innovations went so well that he continued as a fulltime employee until the fall semester began, when he transitioned to part-time status. McBride developed standardized management operational procedures for Digitouch during the Fellowship, but also contributed to accounting, office organization and myriad other tasks.
Nathan Nelson completed a demographic study for Orbus Technology Group that identified potential school districts in four states for its managed IT infrastructure applications. He also developed a complete return-on-investment analysis for client school districts that revealed the total cost of using the services provided by Orbus.
Dawit Soparkdithapong described his tasks as an i2E Fellow as mapping the workflow at Orthocare to determine ways to be more efficient. Working at an early stage company such as Orthocare allowed him to see how decisions are made and provided an experience that will likely spill over into his plans to one day establish his own business. The Fellowship experience also brought the biosciences field into focus as a career possibility for him.
Digitouch Innovations distributes digital interactive information to unique physical locations via a centralized web interface. They manage a digital signage advertising network that allows clients to control the location, frequency and content of their messages to the public. – Oklahoma City Project: The fellowship involved developing and standardizing management operational procedures.
Orbus Technology Group’s flagship product, Think 12 is a proprietary managed IT infrastructure solution for school districts with minimal or under-funded IT budgets. – Oklahoma City Project: Orbus Technology Group’s Fellow spearheaded a return-on-investment analysis on Think 12.
Orthocare Innovations is a small medical device research and development company focused on commercializing advanced “smart” technologies for prosthesis. – Oklahoma City Project: The project included financial modeling and integration, developing managerial reporting structures, and integrating inventory, invoicing and costing transactions with the company’s accounting/controlling structure.
FINANCIAL REPORTS
i2E TEAM
Statement of activity 2009 2008 Revenues OCAST Funding $ 2,238,575 2,241,960 Governor's Cup Sponsorships & Grants 414,172 431,641 Fund Management Fees 252,500 205,000 Grants 46,720 91,332 Other Revenues 102,389 147,432 Total Revenues $ 3,054,356 3,117,365 Expenses Commercialization Services $ 2,017,387 2,047,473 Proof-of-Concept Financing Program 194,487 194,487 i2E Seed Capital, LLC 202,538 148,068 i2E Management Company, LLC 82,606 101,110 Donald W. Reynolds Governor's Cup 347,926 317,956 Other Expenses 146,913 190,739 Total Expenses 2,991,857 2,999,833 Excess of Revenues Over Expenses 62,499 $117,531 Net Assets at Beginning of Year 957,286 839,754 Net Assets at End of Year $ 1,019,785 957,286
Tom Walker President and Chief Executive Officer David Thomison Vice President, Enterprise Services Rex Smitherman Vice President, Operations Sarah Seagraves Vice President, Marketing Tom Francis Director, Investment Fund Administration David Daviee Director, Finance and TBFP Administration Richard Gajan Director, Enterprise Services Richard Rainey Director, Enterprise Services James Randall Director, Enterprise Services Jim Rogers Director, Enterprise Services
FY2009 Revenues GOVERNOR'S CUP SPONSORSHIPS & GRANTS
14% 8% 3% 73%
FUND MANAGEMENT FEES
2% GRANTS OTHER REVENUES
OCAST FUNDING
Casey Harness Commercialization Associate Scott Thomas Network Administrator Grady Epperly Marketing Specialist Jim Stafford Communications Specialist Michelle Odom Meeting and Event Specialist
FY2009 Expenses DONALD W. REYNOLDS GOVERNOR’S CUP
11% PROOF OF CONCEPT FINANCING PROGRAM 6% i2E SEED CAPITAL, LLC 7% 3% i2E MANAGEMENT COMPANY, LLC 5% OTHER EXPENSES 68% COMMERCIALIZATION SERVICES
Sources of State Funding: OCAST provides funding for i2E Commercialization Services, the TBFP Proof-of-Concept Fund and is an investor in the Oklahoma Seed Capital Fund.
Cindy Williams Administrative Assistant
CORPORATE GOVERNANCE
BOARD OF DIRECTORS
Institutional Governance i2E strives to have the highest standards of corporate governance practice and ethical conduct by all Board members and staff. Consistent with those intentions, i2E has adopted the following charters for its Board of Directors and Board Committees:
Roy Williams, Chair Mike LaBrie, Secretary Robert Barcum Howard G. Barnett, Jr. Sean Bauman, PhD Bob Berry C. James Bode Michael Carolina Hiram Champlin Bob Craine Steve Cropper Philip Eller Marilyn Feaver Barbara Hisey David Hogan Philip Kurtz Hershel Lamirand III Merl Lindstrom, PhD Dan Luton Michael Neal David Pitts Amy Polonchek Richard Rush Darryl Schmidt Craig Shimasaki, PhD Sheri Stickley Kay Wade Rainey Williams, Jr. Dick Williamson Duane Wilson Don Wood
Board of Directors Charter of Governance: Sets and ensures fidelity to i2E’s mission. Reviews and approves organizational strategy, goals, plans, and budgets. In addition the Board is charged with establishing policies, approving major engagements in public policy, and ensuring that management systems are in place for compliance. Executive Committee Charter: The function of the Executive Committee is to exercise powers of the Board of Directors on matters which arise between regularly scheduled Board meetings or when it is not practical or feasible for the Board to meet. This Committee also reviews and monitors all compensation, benefit and human resource policy matters, plus monitors and evaluates the performance of the corporation’s CEO. Finance and Audit Committee Charter: The primary purpose of this Committee is to assist the Board of Directors in fulfilling its fiscal oversight responsibilities. It serves as an independent and objective party to monitor the integrity of the Corporation’s financial accounting and reporting processes and internal control system. Nominating and Governance Committee Charter: The Committee assists the Board in developing and overseeing the Corporation’s policies and procedures regarding Board composition and recommendations of candidates for nomination to the Board. Investment Committee Charters: The Board engages two Investment Committees, the Technology Business Finance Program Committee and the Oklahoma Seed Capital Fund Investment Committee to consider and approve applications for investment within the requirements of the investment programs. Code of Ethics and Conflict of Interest The i2E Code of Ethics and Conflict of Interest Policy outlines principles and standards of honesty and ethical accountability by which all Board members and employees agree to adhere to with respect to the company and its associates.
Greater Oklahoma City Chamber McAfee & Taft Unisource Program Administrators TSF Capital, LLC and Oklahoma State University – Tulsa Immuno-Mycologics, Inc. D.C. Bass & Sons Construction Co. Bank of Oklahoma, N.A. OCAST Chisholm Trail Broadcasting TSF Capital, LLC Investor Eller Detrich, P.C SOIC Retired Executive Hogan Taylor, LLP Benefit Informatics Oklahoma Health Center Foundation ConocoPhillips, Inc. OCAST The Tulsa Metro Chamber Stillwater National Bank Governor’s Office of Education Strategy and Innovation The State Chamber BancFirst BioSource Consulting Group Oklahoma Department of Commerce Logan County Economic Development MARCO Capital Group TD Williamson, Inc. LDW Services, LLC Norman Economic Development Coalition
i2E is a 501(c)(3) private not-for-profit corporation focused on wealth creation by growing the technology-based entrepreneurial economy in Oklahoma. We are able to accomplish our mission through support from the Oklahoma Center for the Advancement of Science and Technology (OCAST). We would like to thank OCAST and the state of Oklahoma for their ongoing financial support. The success of i2E and our client companies also relies on the contributions of many individuals and organizations who invest their time, expertise, and capital in Oklahoma’s start-up technology companies. The economic impact statistics used throughout this report are based upon client company responses to i2E’s annual economic impact survey.
840 Research Parkway Suite 250 OKC, OK 73104 2 West Second, Suite 210 Tulsa, OK 74103 800.337.6822 • www.i2E.org