i&E Magazine Spring 2013 by Shannon Carr

T H E M A G A Z I N E F O R O K L A H O M Aâ&#x20AC;&#x2122; S G R O W I N G S M A L L B U S I N E S S E S

EMERGING BIOSCIENCE: IDENTIFYING PANDAS Moleculera Labs tests for troubling neurological disorder in children

SICKLE CELL STORY EpimedX advances drug to reverse hereditary blood disease

SAFETY FIRST

Failsafe Hazmat Compliance Ensures Safer Shipments of Hazardous Materials

SPRING 2013

INSIDE 6 Immersion Program

We’re Proud to Help

The Oklahoma Business Roundtable serves as the state’s major economic development support organization. We are a collaborative non-profit organization whose sole purpose is advancing Oklahoma’s economic development – through business recruitment, business expansion, start-up and quality improvement activities. Comprised of over 170 top Oklahoma corporations and business organizations, the Roundtable assists our state’s business and government leaders, Department of Commerce, and key economic development groups. Roundtable members also network with key business prospects and site location consultants.

We invite you to join us in our efforts! Contact us today.

Bryan Gonterman Roundtable Chairman AT&T – Oklahoma

During the past 21 years, the Roundtable has supported hundreds of state and national business promotion activities resulting in millions of dollars of corporate investment throughout Oklahoma. The group also funds efforts to enhance our workforce and entrepreneur pipeline – such as sponsorship of the Donald W. Reynolds Governor’s Cup collegiate business plan competition, The Oklahoma Quality Award Foundation, the Oklahoma Bio Association and more. Oklahoma is a great state for business. Our members are committed to growth and diversification of our state’s economy. We believe that the best is yet to come.

Oklahoma Business Roundtable 900 N. Stiles Oklahoma City, Oklahoma 73104 405-235-3787

The Tulsa Immersion program launched in January with a goal of helping five early stage companies reach out to first customers and create a minimally viable product over 20 weeks.

10 OKBioscience OKBio has become part of i2E and will have a special section in each i&E magazine. This issue features profiles on EpimedX and Moleculera Labs, two bioscience companies advancing important healthcare innovations.

14 Cover Story Failsafe Hazmat Compliance has created a unique software solution to help ensure that shipments of hazardous materials are safely shipped with properly labeling and packaging.

18 Entrepreneurship The 2013 Donald W. Reynolds Governor’s Cup introduced a new Small Business Division that attracted business plans from 2-year, private and regional colleges across Oklahoma.

22 Education More college and universities across Oklahoma and the nation are buying into the value of entrepreneurship education by launching courses and degree programs

23 Partners

innovators & Entrepreneurs is produced by i2E, Inc., manager of the Oklahoma Technology Commercialization Center. For more information on any content contained herein, please contact i2E at 800-337-6822. © Copyright 2013 i2E, Inc. All rights reserved.

www.okbusinessroundtable.com

INSIDE 6 Immersion Program

We’re Proud to Help

We invite you to join us in our efforts! Contact us today.

Bryan Gonterman Roundtable Chairman AT&T – Oklahoma

Oklahoma Business Roundtable 900 N. Stiles Oklahoma City, Oklahoma 73104 405-235-3787

The Tulsa Immersion program launched in January with a goal of helping five early stage companies reach out to first customers and create a minimally viable product over 20 weeks.

14 Cover Story Failsafe Hazmat Compliance has created a unique software solution to help ensure that shipments of hazardous materials are safely shipped with properly labeling and packaging.

18 Entrepreneurship The 2013 Donald W. Reynolds Governor’s Cup introduced a new Small Business Division that attracted business plans from 2-year, private and regional colleges across Oklahoma.

22 Education More college and universities across Oklahoma and the nation are buying into the value of entrepreneurship education by launching courses and degree programs

23 Partners

www.okbusinessroundtable.com

ABOUT i2E Over our 14-year history, i2E’s nationally recognized services have provided business expertise and funding to more than 560 of Oklahoma’s emerging small businesses. With more than $40 million of investment capital under management, we are focused on serving companies in all phases of the business life cycle, from startups looking for their first round of capital all the way to established businesses seeking funding to expand their markets or products. We also are helping lead new business developments into the marketplace more efficiently and more quickly while providing guidance to bring more funding to Oklahoma’s researchers and entrepreneurs. In the past year we have launched several new initiatives, including the Oklahoma Proof of Concept Center that helps identify more quickly promising new technologies developed on state research campuses, and the Tulsa Immersion Program, which works with new companies at the earliest stages of their development. Finally, the Oklahoma Bioscience Association recently became part of i2E, a development that means we will carry on the organization’s mission of supporting and enhancing the biotechnology industry in Oklahoma. Plans are being developed for significant workshops, summits and educational opportunities throughout the coming year. Through our proven business and venture development process, we turn ideas into successful enterprises ... i2E. WHAT WE DO • Evaluate the potential of new concepts • Assist with evaluation of business plans, marketing plans and raising capital • Provide guidance in building a management team, business structure and financial forecasting • Assist with developing an effective investor presentation • Assist in obtaining funding through federal grant programs • Work with research universities to encourage spin-outs • Provide grant capital assistance and equity investment

i2E TEAM

BOARD OF DIRECTORS

The i2E management and staff is composed of professionals with extensive experience in technology commercialization, business development, venture investing, finance, organizational.

Stephen Prescott, Vice Chair OMRF

Scott Meacham President & CEO David Thomison Senior Vice President, Client Services Group Rex Smitherman Senior Vice President, Operations Sarah Seagraves Senior Vice President, Marketing Tom Francis Director of Funds Administration Josh O’Brien Director of Entrepreneurial Development David Daviee Director, Finance Elaine Hamm Venture Advisor & Director, Proof of Concept Center Shintaro Kaido Venture Advisor & Director, Tulsa Immersion Program Mark Lauinger Venture Advisor & Director, Tulsa Services Richard Rainy Venture Advisor & Director, OSCR Program Casey Harness Director, i2E Fellows Program & External Relations Coordinator Kenneth Knoll Venture Advisor & Director, Advisory Services Scott Thomas IT Manager Grady Epperly Marketing Manager Michael Kindrat-Pratt Venture Advisor & Manager, SeedStep Angels Jay Sheldon eMedia Specialist Jim Stafford Communications Specialist Katelynn Henderson Events Specialist Cindy Williams Underwriting Specialist

www.i2E.org facebook.com/OKGOVCUP twitter.com/i2E_Inc

Jennifer Buettner Executive Assistant Kate Nelson Administrative Assistant

Howard G. Barnett, Jr., Chairman OSU-Tulsa, OSU-CHS

Michael LaBrie, Secretary McAfee & Taft Leslie Batchelor Center for Economic Development Law C. James Bode Bank of Oklahoma, N.A. Robert Brearton American Fidelity Assurance Company Bill W. Burgess Vortex, Inc. Michael Carolina OCAST Bob Craine TSF Capital, LLC Steve Cropper

Philip Eller Eller Detrich, P.C. Carl Edwards

Price Edwards

Suzette Hatfield Crawley Ventures Brad Krieger Arvest Bank Philip Kurtz Benefit Informatics Hershel Lamirand III Oklahoma Health Center Foundation Merl Lindstrom Phillips 66 Justin McLaughlin Tulsa Regional Chamber Mary Mélon The Journal Record Fred Morgan The State Chamber David Myers Ponca City Development Authority David Pitts Stillwater National Bank Mark Poole Summit Bank Meg Salyer Accel Financial Staffing Darryl Schmidt BancFirst Wes Stucky Development Management, Inc. Roy Williams Greater Oklahoma City Chamber Richard Williamson T.D. Williamson Duane Wilson LDW Services, LLC Don Wood NEDC

Welcome letter from Scott Meacham This edition of i&E magazine provides a little bit of insight into the many initiatives under way at i2E to create jobs and build wealth for Oklahoma through our innovative and award winning business advisory and access to capital programs. The Tulsa Immersion Program (story page 6) is a completely new approach to client engagement for i2E. Instead of waiting for companies with developed concepts to come to us for validation of those concepts, we are reaching out to the community with initial validation funding and services for promising new untested concepts in a particular field and geographic location. Our venture advisors will begin working with companies at the very earliest stages and help them build a strong foundation. The Immersion Program launched in January with five startups that shared collaborative space in our Tulsa office. They learned proven strategies from seasoned professionals, connected with their first customers and developed working prototypes. By the end of the program, each of the companies expects to have a clear vision of its concept and customers, and be positioned for investment funding. We are happy to report that the Oklahoma Bioscience Institute recently became part of i2E, which means that we are embracing and enhancing its mission of advancing Oklahoma’s bioscience industry. As a result, we are debuting a special OKBio section in this issue in which we profile companies and organizations involved in discovering new drugs, advancing new therapeutics and creating bioscience jobs for Oklahoma. In this edition, we profile EpimedX

(page 12) and Moleculera Labs (page 13), two up-and-coming companies devoted to stopping illnesses and disorders that affect millions of people around the world. Failsafe Hazmat Compliance, on the other hand, is in the software industry. Launched in 2010, the company solves a big challenge for customers who ship hazardous materials. Failsafe has a developed software product, funding and customers. Our story (page 14) tells you what problems it solves for hazardous materials shippers and the role that i2E has played in its development. Finally, we recently wrapped up our ninth Donald W. Reynolds Governor’s Cup and in this issue provide a look at the results, along with photos from this year’s competition (page 18). And an accompanying article (page 22) highlights the value of entrepreneurship education not only to individuals, but to emerging small businesses everywhere.

i2E TEAM

BOARD OF DIRECTORS

The i2E management and staff is composed of professionals with extensive experience in technology commercialization, business development, venture investing, finance, organizational.

Stephen Prescott, Vice Chair OMRF

www.i2E.org facebook.com/OKGOVCUP twitter.com/i2E_Inc

Jennifer Buettner Executive Assistant Kate Nelson Administrative Assistant

Howard G. Barnett, Jr., Chairman OSU-Tulsa, OSU-CHS

Philip Eller Eller Detrich, P.C. Carl Edwards

Price Edwards

TU L SA IMME RSI O N PRO GR AM

BUILD... MEASURE...

LEARN O

Deborah Karns 6

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Founder of EmpowrNet, one of the first 5 inaugural Immersion Program companies. Spring 2013

klahoma has a new resource to help grow successful ventures in targeted communities and industries. It is the i2E Tulsa Immersion Program. When the inaugural class of the Tulsa Immersion Program launched in January with five early stage startups, it changed the entrepreneurial landscape of Oklahoma. The Immersion Program invests $38,000 per startup with a goal to position the ventures for follow-on funding during the 20-week program. The Immersion Program turns i2E’s traditional model of client intake upside down. Instead of waiting for clients ready for the funding of their ideas to come in the door, it reaches out into the community and pulls in those early stage ideas that, with a little work, may be ready to become funded companies. Participating in the inaugural Immersion program were: Campaign Solutions, EmpowrNet, Medefy, ReTenant and Tubis (see accompanying profiles). The program provides an avenue for i2E to tap into promising early stage opportunities while talented entrepreneurs get a chance to rigorously develop their ventures. It’s a win-win for all parties: i2E, entrepreneurs and the state of Oklahoma. The i2E Immersion program is a very intensive program designed around the Lean Startup methodology where the focus is to “build, measure and learn.” The program supports the entrepreneurs especially in the areas of measuring and learning through i2E’s Sales Executive-in-Residence partners, a network of national and local industry experts and mentors, and a dedicated venture advisor. “i2E’s guidance has been essential in developing our venture into what is today and what will be tomorrow,” said Medefy founder Matt Scovil. Medefy is a Web-based venture which aims to help self-insured companies reduce

REACHING OUT TO NEW CONCEPTS AT THE VERY EARLIEST STAGES OF THEIR DEVELOPMENT

healthcare costs by analyzing claims data. The Immersion program is supported by funding from a federal Economic Development Administration grant along with the Oklahoma Center for the Advancement of Science and Technology and the Oklahoma Business Roundtable. Bill Payne, an internationally recognized angel investor who founded four angel investment groups including Aztec Venture Network, Tech Coast Angels, Vegas Valley Angels and Frontier Angel Fund, worked with the Immersion companies in February to help them understand the current angel investment landscape and how to build value in a startup, from an investor’s perspective. Medefy’s Scovil called the workshop a “real eye-opener” for him. “One of the biggest takeaways for me was how early an entrepreneur has to think about his exit strategy,” Scovil said. “In the beginning of the venture, we’re so focused on getting the concept to fly we forget that oftentimes the investors who are providing the lift are already concerned with how it’s going to land.” Another Entrepreneur in Residence, Giff Constable from New York City, brought a message of “lean product development” to the Immersion Program participants and others in an April workshop in Oklahoma City. Constable, managing director at Neo, a global consulting company, presented a program entitled “The Shape and Practice of Lean Product Teams.” For EmpowrNet’s Deborah Karns, the workshop validated her efforts to connect with potential customers. She is building a business to connect aging people and their families with long-term care insurance carriers and service providers, ensuring that day-to-day needs of the aging-in-place are met while they continue living at home. “Giff kind of kept me going in terms of, ‘yeah, I’m on the right track,’ ” Karns said.

“I’m asking questions and getting feedback and learning more than actually acquiring information I would use to pitch venture capital. I have to spend a lot time face to face with people asking them if they have this problem… I’m going to change my product based on the feedback I’m getting from them.” The entrepreneurs are tasked to develop a “problem-solution fitted product” through the program. That means focusing on refining their minimum viable product. Minimum viable product, often referred to as “MVP,” is a development strategy targeted at avoiding building products that customers do not want and also seeks to maximize the information learned about the customer per dollar spent.

Nathan Gilchrist and Matt Scovil of Medefy

“At the end of the 20 weeks, we will know what to build on top of the MVP to have a good chance of being successful”, Scovil said. For the inaugural class of i2E’s Immersion Program, one milestone led to another and then another. And then? Time to reach out to the next class of fragile seedlings and nurture them until they begin to flourish and move down the path toward commercialization.

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TU L SA IMME RSI O N PRO GR AM

BUILD... MEASURE...

LEARN O

Deborah Karns 6

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Founder of EmpowrNet, one of the first 5 inaugural Immersion Program companies. Spring 2013

REACHING OUT TO NEW CONCEPTS AT THE VERY EARLIEST STAGES OF THEIR DEVELOPMENT

Nathan Gilchrist and Matt Scovil of Medefy

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TULSA IMMERSION PROGR AM

MEDEFY

Bill Payne, i2E’s lead Entrepreneur-in-Residence, leads a workshop for participants in the inaugural Tulsa Immersion Program. The new program brings new concepts into i2E at the earliest stage of their development.

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Co-founders: Matt Scovil and Nathan Gilchrist Virtually no American escapes the burden of runaway health care prices that shackle consumers, employers and even the government with crushing financial costs. “The price of medical services has increased over 140 percent in the last 10 years vs. about 30 percent increases in family income,” said Matt Scovil, cofounder and CEO of Tulsa’s Medefy. “Add a recession on top of that and you have the recipe for disaster, which we’re seeing playing out right now.” Medefy has developed an innovative solution to the problem of rising health care costs. Founded in 2012 by Scovil and business partner Nathan Gilchrist, Medefy offers a proprietary software product designed to help self-insured employers lower health care costs by guiding employees to the lowest cost providers. “Our software will reveal the costs and prices of different procedures and doctors to employees in their company’s benefits plan,” Scovil said. “By showing them the widely varying costs for the same procedures – the same types of doctors and procedures can vary by up to 1,000 percent in the same city – we incentivize the employees to choose the lower cost providers without sacrificing any quality.” After obtaining his MBA from Oklahoma State University, Scovil teamed with Gilchrist, also an OSU grad, to open an unrelated niche health care business in 2007 before the pair started a Web design business in 2009. They approached i2E for feedback on the viability of their concept in early 2012. “If i2E wasn’t interested in it, we would drop it,” Scovil said. “If they were, we would see where it led. More than a year later, Medefy is bringing a ray of hope to the health care crisis for consumers and employers.

CAMPAIGN SOLUTIONS

Founder Dan Mazzei Campaign Solutions was founded on the theory that future political campaigns will be more successful if equipped with advanced technology as well as ideology. As a former political candidate, successful campaign manager and political consultant whose brother is a prominent Oklahoma state senator, Dan Mazzei put his education as a structural engineer to work solving problems that challenge political campaigns. For example, how do candidates identify and contact the fraction of registered voters who actually vote on a regular basis? Campaign Solutions is developing a sophisticated, Web-based software that will help candidates implement a five phase strategic campaign process and connect with motivated voters. Mazzei came to i2E seeking the tools to validate his business model, complete the software development and position the company for funding. “Essentially, I’ve imported a few million registered voters, their last 30 million votes, and related demographic information into an interactive database that works like a political CRM,” Mazzei said. “It works well at the local level and is accessed via PC and mobile devices. However, to scale up for use on a national level, I need additional funding.” Throughout the 20-week Tulsa Immersion Program, Mazzei seeks to build an MVP – minimum viable product – to validate his concept and attract the funding needed to fully build it out. “The Immersion Program has forced me to think about questions that other interested parties would want validated, such as market size, industry needs, industry acceptance and MVP,” Mazzei said. “I understand that these are basic business questions future investors will want answered.”

RETENANT

Co-founders Dan Fisher, Jacob Johnson, Rania Nasreddine and Scott Ayres When the co-founders of Tulsa’s ReTenant were asked to create an app to help the owners of a group of apartment complexes communicate with their tenants, they saw a huge, unfilled market waiting for a solution. So, they created a native Android and iOS app that allows apartment owners to keep tenants posted on local happenings, submit maintenance and security reports, send notifications for tenant-specific messages, as well as providing a tenant to tenant social network. “All of our features were designed with one thing in mind: tenant retention,” said ReTenant co-founder Jacob Johnson. “We know that providing better service to your tenants and helping foster a community within your complex are two of the most effective ways to increase tenant retention.” ReTenant clients can brand the software as their own and offer it to apartment tenants through Apple or Android software platforms. Also, built into the software is a social networking element to help create true community among neighbors. The ReTenant co-founders have designed, built, and launched 9 apps in the past two years and saw this as an opportunity not just to create another app, but a platform which they could sell to a broad market of apartment owners. ReTenant joined i2E’s Immersion program to help them focus on discovering what potential customers would want in the software and how their app can assist in the goal of tenant retention. “The Immersion Program has done a great job at asking the tough questions and helping us stay attentive to the real buying questions,” Johnson said. “It was a perfect fit for ReTenant.” Tough questions and honest answers that emerged through the Immersion program will help ReTenant connect apartment owners and managers nationwide to tenants through its innovative software.

TUBIS

Co-founders Kamal Golabi and Dick Williamson Tulsa’s Tubis LLC has created a high tech solution to a problem that challenges gas pipeline operators: how do they prevent pipeline leaks and protect both the public and the environment from hazardous materials spills? Guidelines established by The Pipeline Hazardous Material Safety Administration require gas pipeline operators to develop a pipe and leak information management system and tools for risk assessment. That’s where integrated software product developed by Tubis fits in. Co-founded by Dr. Kamal Golabi and Dick Williamson, the Tubis software suite provides a comprehensive pipe and leak information management system, along with tools for risk assessment, risk management and resource optimization in pipeline networks. Dr. Golabi is an industry expert in the field of operations research and a respected academic leader who has been recognized multiple times by the Institute of Operations Research and Management Sciences. Williamson is a leading Tulsa businessman and chairman of the board of TD Williamson. He also is a member of the American Gas Foundation Board of Trustees. They brought Tubis into the Immersion Program because of what they saw in the vision and mission of i2E in fostering Oklahoma’s startup community, Williamson said. “We have been proud to participate in i2E’s Inaugural Immersion Program class as it has provided a professional blend of learning and insight through access to a wide network of domain experts and advisors from various disciplines of business,” he said. “We have especially valued the support of i2E’s Tulsa personnel and the collaborative learning environment created by the other program participants.”

EMPOWRNET

Founder Deborah Karns Surveys show that an overwhelming majority of Americans over the age of 50 want to “age in place,” which means they don’t see themselves living in an assisted living center or nursing home as they grow older. The challenge will be for those individuals to continue living independently when their health status changes and long-term care services are needed. That’s where Tulsa’s EmpowrNet offers a solution. EmpowrNet is a Web-based tool that insurance companies offering long term care insurance, as well as third party administrators of long term care policy benefits, can use to better coordinate delivery of services. EmpowrNet’s technology allows aging consumers to remain at home as independently as possible for as long as possible. By helping people remain in their homes longer and reducing nursing home care by 5 to 10 percent, EmpowrNet has the potential to save insurers up to $750-$1.5 billion annually. A serial entrepreneur with a long history of working in the long-term care industry, Karns recognized the challenge for consumers aging at home and the need for insurers to contain costs. “I’ve been through the process myself with family members,” Karns said. Past experience with i2E led her to return for its business expertise, then eventually into the Immersion Program. “I needed a lot of coaching, a lot of information and a lot of advice,” she said. “That’s what I’ve been getting here.”

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TULSA IMMERSION PROGR AM

MEDEFY

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CAMPAIGN SOLUTIONS

RETENANT

TUBIS

EMPOWRNET

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A NATURAL FIT OKBio is now part of i2E The recent merger of the Oklahoma Bioscience Association (OKBio) into i2E has formalized the already close ties between i2E and the state’s life sciences community. The addition of OKBio means that i2E will carry on its mission of promoting the growth of biosciences throughout Oklahoma with a goal of establishing the state as a national leader in the industry. The Oklahoma Bioscience Association was incorporated as a not-for-profit entity in 2008, created in response to a study originally commissioned by the Greater Oklahoma City Chamber. The Chamber commissioned Battelle’s Technology Partnership Practice to produce a written report in 2005 on the status of the biosciences industry in Oklahoma, outlining a vision for its future and recommending strategies and actions for achieving it. i2E now takes on the formal role of expanding biosciences in

Oklahoma through partnership building, education and outreach, networking, policy development and publicity. Over the next year, i2E will implement a number of workshops and networking events that will advance that mission of making the bioscience sector a key driver for the region’s economy with high-wage jobs, high-quality health care and career opportunities.

840 Research Parkway, Suite 250 Oklahoma City, OK 73104 | 405-278-3000 | info@OKBio.org Managed by i2E, Inc. follow on Twitter | friend on Facebook 10

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840 Research Parkway, Suite 250 Oklahoma City, OK 73104 | 405-278-3000 | info@OKBio.org Managed by i2E, Inc. follow on Twitter | friend on Facebook 10

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Moleculera

EpimedX Dr. Robert Broyles stood before a world map posted on the wall at the offices of Oklahoma City’s EpimedX and pointed to areas along the Equator deeply impacted by sickle cell disease and its beta-thalassemia cousin. His hand swept over a large area. Brazil. India. Thailand. Indonesia. SubSaharan African nations like Nigeria, Ghana and Sierra Leone. “In these areas, one out of four people carry the sickle gene,” said Dr. Broyles, pointing to West Africa. “It’s a huge global challenge.” Sickle cell is a genetic blood disease that causes pain, organ damage, stroke and early death for millions of people around the world who are afflicted. There are about 100,000 active cases of sickle cell each year in the United States. EpimedX is developing a drug therapy called EDX-17 that will stop sickle cell disease, beta-thalassemia and malaria by restoring what is known as fetal hemoglobin (HbF). A molecular biologist and retired professor at the University of Oklahoma College of Medicine, Dr. Broyles has pursued a sickle cell cure for more than two decades. He co-founded the Sickle Cell Cure Foundation in 2006 and EpimedX in 2011 with Dr. Robert Floyd, a scientist at the Oklahoma Medical Research Foundation. “The World Health Organization classifies sickle cell as a tropical genetic disease,” Dr. Broyles said. “It’s the mosquito that drives it.” Mosquitoes that thrive in the tropics carry malaria from person to person, resulting in generations of people living near the equator who have one sickle gene that creates a resistance to the disease. A second sickle gene mutation results in sickle cell disease. 12

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Not every human with the sickle cell gene develops the disease, however. It was discovered that a small group of people in Saudi Arabia had two sickle cell genes, but were spared the disease because they had unusually high levels of fetal hemoglobin, which usually disappears shortly after birth. The discovery led the National Institutes of Health to begin funding studies of ways to restore fetal hemoglobin in people who were afflicted with sickle cell disease. The pursuit of a fetal hemoglobin switch eventually took Dr. Broyles to the NIH and then to OMRF, where he conducted research with Dr. Floyd. Dr. Broyles discovered that a molecule called ferritin-H would cause the switch back to fetal hemoglobin in cells and cultures. “Then we found an article suggesting that a plant growth factor found in all seed plants might activate the gene that codes for ferritin,” Dr. Broyles said. Plant growth factors are natural compounds that intensify growth processes in plants. OMRF filed for broad patents, which covered not only sickle cell but other blood diseases. Eventually, patent ownership was assigned to the EpimedX co-founders. After discovering a U.S. company that inexpensively produces large amounts of the plant growth factor, EpimedX quickly signed a deal to partner with it on development of a sickle cell drug.

Meanwhile, a pair of EpimedX advisors, Clayton Duncan and Rod Whitson, pointed the company’s co-founders to i2E for assistance in developing the business. “We hit it off with i2E from the very moment we walked through the door,” Dr. Broyles said. “We immediately met Rick Rainey, who began working on a federal grant application, which we intend to file in August.” A successful application for a federal Small Business Innovation Research grant will fund work to complete required safety certifications before EpidmedX files with the Food and Drug Administration for what is called an investigational new drug. There is a crying need for a cure right here,” Dr. Broyles said with his hand resting over central Africa on the wall map. EpimedX just might have the answer in EDX-17, bringing hope to millions of people around the world who are afflicted with sickle cell disease.

Sickle-cell disease is a hereditary blood disorder, characterized by red blood cells that assume an abnormal, rigid, sickle shape. Sickling decreases the cells’ flexibility and results in a risk of various complications. The sickling occurs because of a mutation in the hemoglobin gene.

epimedx.com

Life took a disturbing turn in 2012 for an Oklahoma family whose 5-year-old son suddenly began displaying unexpected and puzzling behaviors. He raged for no apparent reason. He was defiant. He threatened other children, siblings, and even his own parents with violence. The concerned parents consulted physicians, psychiatrists and counselors before a test confirmed a neurological condition they never knew existed: PANDAS. An acronym for a condition known as pediatric autoimmune neuropsychiatric disorder associated with strep, PANDAS affects thousands of children who display sudden changes in behavior, tics, obsessive compulsive behavior and other puzzling conditions. “What happens is many of these children get infected with strep, or another infection, and their body begins to make antibodies against certain parts of the organism, but for some reason they cross-react with neurologic receptors in the brain and they start having neurological disorders such as OCD and tics,” said Dr. Craig Shimasaki, CEO of Oklahoma City-based Moleculera Labs, which has licensed a panel of tests for diagnosing PANDAS. “If you are having obsessive compulsive disorders and other neurological disorders, most clinicians are going to treat you with neurological drugs,” Dr. Shimasaki said. “But in this case, the actual root of the problem is an autoimmune condition.” Dr. Madeleine Cunningham, a George Lynn Cross Research Professor and director of the Immunology Training Program at the University of Oklahoma, developed a test panel for the PANDAS conditions, also known as PANS, or

Pediatric Acute Neuropsychiatric Syndrome. When she began a clinical study of her PANDAS test, hundreds of parents overwhelmed her OU laboratory with requests to participate. “When enrollment exceeded 1,000 the University had to close enrollment to anymore patients,” Dr. Shimasaki said. “Parents continued to call, so we asked ourselves how we can help these parents.” Moleculera Labs was co-founded in 2011 by Drs. Shimasaki and Cunningham to make the Cunningham Test Panel for PANDAS available to thousands of concerned parents who were seeking answers. The technology was licensed from OU, and a CLIA certified laboratory was established. CLIA certification, which Moleculera obtained in March, means that the laboratory meets standards set by the federal Clinical Laboratory Improvement Amendments (CLIA) of 1988. Because Dr. Shimasaki had served on i2E’s board and interfaced with them at previous entrepreneurial companies, he continued to work closely with i2E throughout the development of Moleculera. i2E’s StartOK Accelerator Fund was the lead investor in a $600,000 investment round in Moleculera last year, and Dr. Shimasaki expects i2E will play a key role in an upcoming $2 million Series A financing round, as well. Also in 2012, a team from Oklahoma City University wrote a business plan around the Moleculera Labs concept and won first place in the 2012 Donald W. Reynolds Governor’s Cup

Undergraduate Division. “I’m kind of partial to i2E because I believe there needs to be a catalyst within the state that understands the entrepreneurial process, and without that support and financial assistance it’s very difficult for entrepreneurs to make any headway, especially in the life sciences area,” Dr. Shimasaki said. “i2E is a critical component not only to Moleculera but the entire biotechnology and life sciences community in the state.” With the recent CLIA certification of its laboratory, Moleculera Labs can begin to meet some of the pent up demand by parents desperate to diagnose their children. If PANDAS is properly diagnosed, treatment with immunological products such as intravenous immunoglobulin and plasma exchange can improve the condition. “Our goal is to provide this to as many parents as possible in an economical way that will give them help and hope so their children can be tested and treated,” Dr. Shimasaki said. When the behavior of a child takes a puzzling turn, parents want answers as quickly as possible. The diagnostic test panel that Moleculera Labs is rolling out can help provide those answers.

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Failsafe Hazmat Compliance Assures Safer Shipping of Hazardous Materials Every day along a highway somewhere in the United States, a long-

the U.N. International Maritime Dangerous Goods, the U.N. Civil

haul truck is involved in an accident, often spilling its contents along

Aviation Organizations and the European Agreement Concerning the

the roadway. There’s a one-in-eight chance that the truck was hauling

International Carriage of Dangerous Goods by Road.

a hazardous material. It could be gasoline. It could be hydrochloric

acid or it could be one of thousands of toxic or explosive materials.

products, including an Enterprise software that has three software

subsets for ground shipping, air and water.

Brad Rosenthall, co-founder of Tulsa-based Failsafe Hazmat

Compliance. “You want those guys to be safe.”

may ship hazardous materials only occasionally, and is developing

So do first responders, firemen, law enforcement and emergency

“You are on the road next to them all the time,” said

The company has created four Internet-based software

It also developed a product called QuickShip for companies that

a “white label” product that cargo carriers can offer as their own

medical personnel. Their job is to rush to the scene of an accident,

branded hazmat software.

put out fires and move injured people to safety.

“Some fireman or EMS worker is going to show up and they

Rosenthall said. “The transportation company would pay us and

need to be able to see into that truck and have the paper work for

offer the software for a small charge to their customers or just as a

the hazardous material immediately so they know how to respond

service so they can ship better, quicker and safer.”

so they don’t get injured and people in the vicinity don’t get injured,”

Rosenthall said.

Carson, the genesis of Failsafe Hazmat Compliance began

Failsafe Hazmat Compliance was created just for such a

when Carson was a logistics compliance executive with a large

scenario. The company has designed and developed software to help

international air carrier. During his 23-year career, Carson was in

shippers and carriers of hazardous materials stay in compliance,

charge of organizing the company’s hazardous materials shipping

save money and, more importantly, protect first responders and the

procedures and its transportation network, which also included a

public from harmful consequences of an accident.

large fleet of trucks and a workforce of more than 1,000 people.

Failsafe’s innovative product is the first comprehensive software

“It’s a service that carriers would offer their customers,”

Founded in 2010 by Rosenthal and business partner Steve

“I couldn’t bring all of those folks in for a week-long training

that ensures compliance from all four regulatory standards that governs

session,” said Carson, who serves as Failsafe Hazmat’s President of

the shipping industry – the U.S. 49 Code of Federal Regulations,

its Logistics Compliance Division.

i&E

Spring 2013

“The thought was if we had a product out on the

market that could take the knowledge of the highly trained person and guide the hands of the individuals out on the front lines, it would close the compliance exposure hole considerably, and at the same time provide a standardized process throughout the system,” he said.

The complicated shipping regulations require

shippers to identify each hazardous material they are shipping and the quantity of such materials to be shipped. Then the shipper is required to pack and label the materials precisely based upon the specific labeling and packing requirements for the particular hazardous material.

Looking up specific requirements in voluminous regulations and then

attempting to follow them precisely is both time consuming and mistake prone.

In an infamous incident in 1996, a Valujet airliner crashed in the Florida

Everglades after improperly packaged oxygen canisters caught fire, killing all 110 people aboard.

“Steve looked and looked for software that could facilitate proper

packing and labeling of hazardous materials and there was really nothing on the market to do it,” Rosenthall said. “So, he sat down and said ‘here’s what it ought to do’ and he started writing things down, just in his spare time in the evenings.”

Spring 2013 i&E

Failsafe Hazmat Compliance Assures Safer Shipping of Hazardous Materials Every day along a highway somewhere in the United States, a long-

the U.N. International Maritime Dangerous Goods, the U.N. Civil

haul truck is involved in an accident, often spilling its contents along

Aviation Organizations and the European Agreement Concerning the

the roadway. There’s a one-in-eight chance that the truck was hauling

International Carriage of Dangerous Goods by Road.

a hazardous material. It could be gasoline. It could be hydrochloric

acid or it could be one of thousands of toxic or explosive materials.

products, including an Enterprise software that has three software

subsets for ground shipping, air and water.

Brad Rosenthall, co-founder of Tulsa-based Failsafe Hazmat

Compliance. “You want those guys to be safe.”

may ship hazardous materials only occasionally, and is developing

So do first responders, firemen, law enforcement and emergency

“You are on the road next to them all the time,” said

The company has created four Internet-based software

It also developed a product called QuickShip for companies that

a “white label” product that cargo carriers can offer as their own

medical personnel. Their job is to rush to the scene of an accident,

branded hazmat software.

put out fires and move injured people to safety.

“Some fireman or EMS worker is going to show up and they

Rosenthall said. “The transportation company would pay us and

need to be able to see into that truck and have the paper work for

offer the software for a small charge to their customers or just as a

the hazardous material immediately so they know how to respond

service so they can ship better, quicker and safer.”

so they don’t get injured and people in the vicinity don’t get injured,”

Rosenthall said.

Carson, the genesis of Failsafe Hazmat Compliance began

Failsafe Hazmat Compliance was created just for such a

when Carson was a logistics compliance executive with a large

scenario. The company has designed and developed software to help

international air carrier. During his 23-year career, Carson was in

shippers and carriers of hazardous materials stay in compliance,

charge of organizing the company’s hazardous materials shipping

save money and, more importantly, protect first responders and the

procedures and its transportation network, which also included a

public from harmful consequences of an accident.

large fleet of trucks and a workforce of more than 1,000 people.

Failsafe’s innovative product is the first comprehensive software

“It’s a service that carriers would offer their customers,”

Founded in 2010 by Rosenthal and business partner Steve

“I couldn’t bring all of those folks in for a week-long training

that ensures compliance from all four regulatory standards that governs

session,” said Carson, who serves as Failsafe Hazmat’s President of

the shipping industry – the U.S. 49 Code of Federal Regulations,

its Logistics Compliance Division.

i&E

Spring 2013

“The thought was if we had a product out on the

The complicated shipping regulations require

Looking up specific requirements in voluminous regulations and then

attempting to follow them precisely is both time consuming and mistake prone.

In an infamous incident in 1996, a Valujet airliner crashed in the Florida

Everglades after improperly packaged oxygen canisters caught fire, killing all 110 people aboard.

“Steve looked and looked for software that could facilitate proper

Spring 2013 i&E

Carson learned from other shipping professionals at industry

when you are struggling. It was the best $1,000 I’ve ever spent. We

conferences that the challenge of hazmat shipping compliance went

hold i2E in high regard.”

far beyond air cargo shippers. It was industry-wide.

Rosenthall wants to eventually repay i2E for the business advice and

“I recognized the need, and was hearing from a lot of my

colleagues in the industry that there was a need,” he said. “That was

The relationship has been so beneficial to Failsafe Hazmat that

capital that sustained the company in its early days.

where the idea was born.”

Friends since childhood, Carson approached Rosenthall about

“As we continue to grow and become more and more successful, we

his idea. Brad had an extensive background in technology and

hope that we can somehow give back to i2E, whether it’s another

business.

client, maybe bringing in interns or helping with the Governor’s Cup

competition.”

“We talked, and I gave him a specification idea about what it

“Steve and I have talked about this a number of times,” he said.

would take to build the software and collect the data,” Rosenthall

said. “One thing led to another. It was 2008, and I had recently left a

matching $100,000 Concept fund round of financing. But Rosenthall

Tulsa company that was hit hard by the recession, so I told Steve I’m

describes the more recent investment round of $600,000 led by i2E’s

going to give it six months and see what comes of it.”

Oklahoma Seed Capital Fund as the most exciting development in

the company’s history.

Rosenthall designed a proprietary database that would contain

Early funding for Failsafe was provided by i2E through a

hazardous materials, shipping requirements for each material

depending upon quantity shipped, and the packing and labeling

work full time,” Rosenthall said. “Having Steve in the office for 50 to

regulations for each individual item Easy-to-navigate,

60 hours a week has been luxurious. That’s the biggest milestone for

me. When he made that leap from a company that he had been with

Web-based databases were created for all four transportation

“When that funding came through, Steve was able to come to

modes – air, rail, truck and water vessel. A team of programmers

for 23 years, I thought, ‘OK, we’re going to make it.’”

was hired to create the Failsafe Hazmat Compliance software from

Rosenthall’s specifications.

the Failsafe Hazmat Compliance software from hazardous material

The co-founders of Failsafe Hazmat Compliance have taken

their software product on the road to conferences across

international shipping regulations,” Rosenthall said. So, there are

shippers. Clients pay an annual per-user fee to adopt the Failsafe

the nation to demonstrate just how quickly a proper label

databases and there is logic. If you are shipping 500 pounds you

recommended that he seek its venture advisory services.

software.

and packaging instructions can be generated for shipping

need to do it this way, and if you are shipping 100 pounds you

Meanwhile, Brad began to consult with i2E after a friend “i2E gave me some good advice and at the end of six months

Now the challenge remains to win large-scale acceptance for

“Usually, where we get adoption is someone who has had a fine

“We have created databases from U.S. federal and

hazardous materials.

need to do it this way. That type of logic is built in.”

we weren’t quite where we needed to be, but I said this has a little

for improperly shipping hazardous materials and they suddenly go,

momentum, let’s give it six more months. It ended up taking about

‘oh, wait, we can’t afford to do this wrong,’ “ Rosenthall said. “So, we

Rosenthall, the company’s co-founder along with Steve Carson.

hazmat expert will code all of the company’s commonly shipped

14 months to really get going. There were some times that were

get their attention.”

The pair have demonstrated the efficiency and accuracy

hazardous materials so that the software instantly responds with

pretty lean, but I’m glad I stuck it out.”

The consequences for improperly labeling and shipping

of the Failsafe Hazmat software at big trade shows for law

labeling and packaging instructions when an employee inputs a

Today, the company offers its software to shippers nationwide,

hazardous material can be far more serious than a fine. Consider

enforcement agencies, trucking firms, chemical companies

part number.

with hazmat consultants marketing it in industrial areas on both

the ValuJet crash or the explosive derailment 25 years ago in south

and more. In early March, they showcased the Failsafe product

coasts. Most of its early customers were Oklahoma shippers with

Louisiana of a train carrying hazardous chemicals. The derailment

at a two-day multi-modal hazardous materials transportation

to be prepared and paperwork completed in about 12 minutes,”

whom Rosenthall and Carson already had relationships.

forced evacuation of 2,700 residents from the community of

seminar in Midwest City.

Rosenthal said. “That’s someone who knows what he is doing. With

Livingston for two weeks.

in a full-time capacity after working nights and weekends for the

“Every day there are incidents that happen,” Rosenthall said.

what mode of transportation, and there it is,” Rosenthall said.

past three years in development of the company.

“What’s most vulnerable to shipping accidents? It depends on

“Boom, boom, boom. It prints out your instructions, your

compliance with shipping regulations is printed out and ready to

In the beginning, Rosenthall worked exclusively from his

your perspective. If you are 35,000 feet in the air you don’t want an

shipping paper, how to mark your container with the correct

go. The wow factor is high.

home as he developed the company before moving into incubator

oxygen generator on that plane. If a train is moving through town

labels and marks so the firemen know how to deal with it. All of

space offered by i2E. Now the company has grown to seven employees

with hydrochloric acid and derails and it’s near your home, then ...

that is put together for you. You can personalize the software

and maintains offices in a Tulsa office park.

it’s all relative.

for your company.”

Carson departed from the carrier 2012 and has joined Failsafe

When asked to talk about the relationship with i2E and how it

“If everyone has followed the rules, there’s a better chance that

“When people in the industry see it they say ‘wow,’ said Brad

“We ask a few questions, how much are you shipping,

whatever is hazardous in that accident may not hurt anyone.”

developed, shippers had to consult thick regulatory manuals

The Failsafe Hazmat Compliance software will help ensure first

that sometimes required checking six or eight places before

talk about i2E,” he said. “I showed up at the first meeting, and they

responders – and the public – are all protected in the event of an

finding the exact packaging and labeling requirements for a

said it would be $1,000 to become a client. That’s a lot of money

accident.

particular substance.

i&E

Spring 2013

“A guy who is really good at it can have his package ready

our system it takes about 45 seconds.” In less than a minute, everything a company needs to be in

That’s because until Failsafe Hazmat software was

has benefited the company, Rosenthall paused for a few seconds. “I don’t want to gush, and I know that I sometimes do when I

When the software is implemented by a client, the company’s

Spring 2013 i&E

Carson learned from other shipping professionals at industry

when you are struggling. It was the best $1,000 I’ve ever spent. We

conferences that the challenge of hazmat shipping compliance went

hold i2E in high regard.”

far beyond air cargo shippers. It was industry-wide.

Rosenthall wants to eventually repay i2E for the business advice and

“I recognized the need, and was hearing from a lot of my

colleagues in the industry that there was a need,” he said. “That was

The relationship has been so beneficial to Failsafe Hazmat that

capital that sustained the company in its early days.

where the idea was born.”

Friends since childhood, Carson approached Rosenthall about

“As we continue to grow and become more and more successful, we

his idea. Brad had an extensive background in technology and

hope that we can somehow give back to i2E, whether it’s another

business.

client, maybe bringing in interns or helping with the Governor’s Cup

competition.”

“We talked, and I gave him a specification idea about what it

“Steve and I have talked about this a number of times,” he said.

would take to build the software and collect the data,” Rosenthall

said. “One thing led to another. It was 2008, and I had recently left a

matching $100,000 Concept fund round of financing. But Rosenthall

Tulsa company that was hit hard by the recession, so I told Steve I’m

describes the more recent investment round of $600,000 led by i2E’s

going to give it six months and see what comes of it.”

Oklahoma Seed Capital Fund as the most exciting development in

the company’s history.

Rosenthall designed a proprietary database that would contain

Early funding for Failsafe was provided by i2E through a

hazardous materials, shipping requirements for each material

depending upon quantity shipped, and the packing and labeling

work full time,” Rosenthall said. “Having Steve in the office for 50 to

regulations for each individual item Easy-to-navigate,

60 hours a week has been luxurious. That’s the biggest milestone for

me. When he made that leap from a company that he had been with

Web-based databases were created for all four transportation

“When that funding came through, Steve was able to come to

modes – air, rail, truck and water vessel. A team of programmers

for 23 years, I thought, ‘OK, we’re going to make it.’”

was hired to create the Failsafe Hazmat Compliance software from

Rosenthall’s specifications.

the Failsafe Hazmat Compliance software from hazardous material

The co-founders of Failsafe Hazmat Compliance have taken

their software product on the road to conferences across

international shipping regulations,” Rosenthall said. So, there are

shippers. Clients pay an annual per-user fee to adopt the Failsafe

the nation to demonstrate just how quickly a proper label

databases and there is logic. If you are shipping 500 pounds you

recommended that he seek its venture advisory services.

software.

and packaging instructions can be generated for shipping

need to do it this way, and if you are shipping 100 pounds you

Meanwhile, Brad began to consult with i2E after a friend “i2E gave me some good advice and at the end of six months

Now the challenge remains to win large-scale acceptance for

“Usually, where we get adoption is someone who has had a fine

“We have created databases from U.S. federal and

hazardous materials.

need to do it this way. That type of logic is built in.”

we weren’t quite where we needed to be, but I said this has a little

for improperly shipping hazardous materials and they suddenly go,

momentum, let’s give it six more months. It ended up taking about

‘oh, wait, we can’t afford to do this wrong,’ “ Rosenthall said. “So, we

Rosenthall, the company’s co-founder along with Steve Carson.

hazmat expert will code all of the company’s commonly shipped

14 months to really get going. There were some times that were

get their attention.”

The pair have demonstrated the efficiency and accuracy

hazardous materials so that the software instantly responds with

pretty lean, but I’m glad I stuck it out.”

The consequences for improperly labeling and shipping

of the Failsafe Hazmat software at big trade shows for law

labeling and packaging instructions when an employee inputs a

Today, the company offers its software to shippers nationwide,

hazardous material can be far more serious than a fine. Consider

enforcement agencies, trucking firms, chemical companies

part number.

with hazmat consultants marketing it in industrial areas on both

the ValuJet crash or the explosive derailment 25 years ago in south

and more. In early March, they showcased the Failsafe product

coasts. Most of its early customers were Oklahoma shippers with

Louisiana of a train carrying hazardous chemicals. The derailment

at a two-day multi-modal hazardous materials transportation

to be prepared and paperwork completed in about 12 minutes,”

whom Rosenthall and Carson already had relationships.

forced evacuation of 2,700 residents from the community of

seminar in Midwest City.

Rosenthal said. “That’s someone who knows what he is doing. With

Livingston for two weeks.

in a full-time capacity after working nights and weekends for the

“Every day there are incidents that happen,” Rosenthall said.

what mode of transportation, and there it is,” Rosenthall said.

past three years in development of the company.

“What’s most vulnerable to shipping accidents? It depends on

“Boom, boom, boom. It prints out your instructions, your

compliance with shipping regulations is printed out and ready to

In the beginning, Rosenthall worked exclusively from his

your perspective. If you are 35,000 feet in the air you don’t want an

shipping paper, how to mark your container with the correct

go. The wow factor is high.

home as he developed the company before moving into incubator

oxygen generator on that plane. If a train is moving through town

labels and marks so the firemen know how to deal with it. All of

space offered by i2E. Now the company has grown to seven employees

with hydrochloric acid and derails and it’s near your home, then ...

that is put together for you. You can personalize the software

and maintains offices in a Tulsa office park.

it’s all relative.

for your company.”

Carson departed from the carrier 2012 and has joined Failsafe

When asked to talk about the relationship with i2E and how it

“If everyone has followed the rules, there’s a better chance that

“When people in the industry see it they say ‘wow,’ said Brad

“We ask a few questions, how much are you shipping,

whatever is hazardous in that accident may not hurt anyone.”

developed, shippers had to consult thick regulatory manuals

The Failsafe Hazmat Compliance software will help ensure first

that sometimes required checking six or eight places before

talk about i2E,” he said. “I showed up at the first meeting, and they

responders – and the public – are all protected in the event of an

finding the exact packaging and labeling requirements for a

said it would be $1,000 to become a client. That’s a lot of money

accident.

particular substance.

i&E

Spring 2013

“A guy who is really good at it can have his package ready

our system it takes about 45 seconds.” In less than a minute, everything a company needs to be in

That’s because until Failsafe Hazmat software was

has benefited the company, Rosenthall paused for a few seconds. “I don’t want to gush, and I know that I sometimes do when I

When the software is implemented by a client, the company’s

Spring 2013 i&E

Surrounded by teammates and supporters, RxOmni team leader Kris Monier holds up the Governor’s Cup trophy after the team was named first place winner in the new Small Business Division.

Throughout its history, Governor’s Cup alumni have made the competition a strong starting point for jumping into entrepreneurship, going on to start up or assist in the startup of 20 entrepreneurial Oklahoma companies. Others have used the networking opportunities presented at Governor’s Cup events to launch careers at top Oklahoma corporations. Still others continued their education by going on to graduate school, including 13 students each awarded $5,000 Paulsen Award scholarships by the Oklahoma Business Roundtable to any college or university in the state. S M A LL B U S I N E SS D I V I S I O N

GOVERNOR'S CUP GOES SMALL FOR BIG PAYOFF

hen RxOmni was announced as the first ever winner of the Donald W. Reynolds Governor’s Cup Small Business Division at the 2013 Awards Dinner, it set off a rousing celebration among the team’s six members and its supporters. There were shrieks. There were high-fives around the table. There was even a bit of dancing in the aisle as the team from Oklahoma State University-Oklahoma City headed to the stage to accept the award. “It’s a long road” said team leader Kris Monier in an interview immediately after the trophy presentation. “We were nervous the whole time, but we worked really hard.” While the Awards Dinner was a grand celebration of a challenging event for RxOmni and the eight other winning teams in this year’s competition, it represented only a starting point on the map to their futures. The 2013 Governor’s Cup introduced more than 200 students on 19 college campuses across Oklahoma to the career possibilities offered by entrepreneurship. They competed in three divisions that included the new Small Business Division and the High Growth Graduate and Undergraduate divisions. Over the nine-year history of the Governor’s Cup, more than 1,200 college students from 31 campuses statewide have identified 400 innovative ideas, researched market possibilities, written business plans and pitched them to panels of judges composed of business and community leaders. Students have been awarded $1.2 million in cash, $55,000 in scholarships and $172,000 in fellowships. A total of 47 teams submitted business plans across the three divisions of this year’s Governor’s Cup competition, with more than $150,000 in prizes and $15,000 in scholarships. 18

i&E

Spring 2013

A ROADMAP TO THE FUTURE RxOmni’s Monier said the Governor’s Cup experience was valuable in showing him the steps required to eventually start his own business. First, he plans to complete his undergraduate degree at either Oklahoma City University or the University of Central Oklahoma. “Building a business plan and being pretty successful in the competition has given me a lot of confidence that this is something that could come to fruition if I work hard enough,” Monier said. “I can’t speak highly enough about the experience. It was very valuable to me.” Also named as first place winning teams in the 2013 Governor’s Cup were EchoCharge from the University of Tulsa, High Growth Graduate Division; and Code Sooq, University of Tulsa, High Growth Undergraduate Division. Each team won $20,000. Presenting Governor’s Cup trophies to the winning teams at the Awards Dinner was Gov. Mary Fallin, who also addressed the audience of approximately 500 at Oklahoma City’s Bricktown Events Center. “For the ninth straight year, emerging entrepreneurs across Oklahoma have grasped the concepts necessary to starting a business and pitch the concept,” said Scott Meacham, i2E President and CEO. “We’re especially proud that so many students at 2-year and regional campuses around the state answered the challenge to write and pitch business plans around innovative small business concepts,” Meacham said. “It was indicative of the true talent we have in our future business leaders.”

The Small Business Division was introduced this year to expand the Governor’s Cup opportunity to more campuses in Oklahoma, including two-year colleges, regional and non-research private universities. Teams in the new division could write and submit a business plan around any concept as long as it was distinctive and didn’t replicate an existing business or franchise. A total of $40,000 was up for grabs in the division, with RXOmni awarded $10,000 as first place winner. For RxOmni team member Lori Hasty, the Governor’s Cup experience wasn’t about the cash awards. “It was about learning new things, a new opportunity to think outside the box, to do something that was uncomfortable,” she said. “We were behind the eight-ball when we started, but we all worked together as a team.” Other Small Business Division winners were J-Paxers, Rogers State University, second place, $8,000; and Revolutionary Transportation, Northeastern Oklahoma A&M College, third place, $4,000. There was a certain pioneering spirit among the Small Business Division teams. “I hope it brings to light the quality of the students that we have at the 2-year college level,” said Amber Hefner, faculty advisor for Small Business Division winner RxOmni. “For our students, it was a chance to see that you can work on a concept and see it to fruition. It takes a lot of work to make it happen, but at the end, hopefully, there is a nice payoff to it.” DISCOVERING THE ENTREPRENEUR ’S PATH The Governor’s Cup experience provided another perspective for Katherine Sind, team leader at TU’s EchoCharge. Before she began working on her MBA, she had worked as an engineer at a large corporation. Now through the Governor’s Cup she’s sampled the challenges and decision making that entrepreneurs face every day. “Doing the Governor’s Cup gave me what it feels like to work for yourself,” said Katherine Sind, team leader of TU’s EchoCharge. “In the Governor’s Cup, all my thoughts and opinions about the quality of the technology or importance of the market matter. We had a lot of great support along the way, but the final call was up to me and my team to decide. This gave me a feeling of responsibility and passion for the company’s success that hit the spot. I know now that I will never have the same job satisfaction if I’m not working at a startup or as a leader.” As it has for hundreds before her, the Governor’s Cup provided the map to her future with the entrepreneur’s path clearly marked.

TRI -STATE WINNERS BRING HOME $67,0 0 0 A pair of Oklahoma teams left Las Vegas as the big winners in the 2013 Donald W. Reynolds Tri-State business plan competition, claiming first place awards in both Graduate and Undergraduate divisions. R2R Technologies from Oklahoma State University was named the Tri-State Graduate Division first place winner, while FieldFocus from the University of Oklahoma won the Undergraduate Division. Each team won $30,000, and their faculty advisors received $3,500 each. The Tri-State competition featured the top two winning teams in Graduate and Undergraduate Divisions from Donald W. Reynolds Governor’s Cup competitions in Oklahoma, Arkansas and Nevada. R2R Technologies wrote and pitched a business plan around optic sensor technology that guides the flow of materials during the manufacturing process, reducing waste by keeping it properly aligned. Team members Aravind Seshadri, Carolo Branca and Pedro Velasco all brought manufacturing experience that was reflected in the presentation, Seshadri said. “We know our customers and we know our market,” he said. “That’s the main thing that distinguished us.” R2R team members plan to stay with the business plan and launch it as a Stillwater-based venture, Seshadri said. Both R2R Technologies and FieldFocus finished second in the Oklahoma completion and modified their presentations before Tri-State. “We got some really good advice from the judges in Oklahoma, made some minor changes and kind of revamped everything,” said Susan Moring, FieldFocus team leader. FieldFocus team members brought passion and excitement to the competition, Moring said. “We’re really great friends and we work really well together,” she said as team members celebrated their victory immediately after the Awards Dinner at the Cosmopolitan Hotel in Las Vegas. “I think it really showed today.” Moring also won $2,000 as the Undergraduate Division pitch winner during the Tri-State Awards Dinner. She also won the pitch competition in the Oklahoma Governor’s Cup. Also competing in the Tri-State competition from Oklahoma were Code Sooq from the University of Tulsa in the Undergraduate Division and EchoCharge from TU in the Graduate Division. Carl Edwards, president of the Oklahoma Business Roundtable, presented awards to the winning Oklahoma TriState teams. Second place winners in the Tri-State competition were Pure Ski Experience, University of Nevada-Las Vegas, Undergraduate Division; and HomeDX, University of Arkansas, Graduate Division. Aravind Seshadri, team leader for R2R Technologies, strikes a Heisman pose after the team was named second place Graduate Division winner.

Spring 2013 i&E

Surrounded by teammates and supporters, RxOmni team leader Kris Monier holds up the Governor’s Cup trophy after the team was named first place winner in the new Small Business Division.

GOVERNOR'S CUP GOES SMALL FOR BIG PAYOFF

i&E

Spring 2013

Spring 2013 i&E

S M A LL B U S I N E SS D I V I S I O N First place: $10,000 RxOmni Oklahoma State University – Oklahoma City Team Leader: Kris Monier Team Members: Angela Davis, Angela Estavez, Herbert Foncham, Lori Hasty, Mayra Tello Advisor: Amber Hefner RxOmni has developed software that alerts pharmacists to possible adverse drug reactions from prescribed medication.

G R A D UAT E D I V I S I O N First place: $20,000 – EchoCharge The University of Tulsa Team Leader: Katherine Sind Team Members: Bingjie Ji, Martin Green, Reid Johnston Advisor: Claire Cornell EchoCharge has developed nano-wire technology that will extend cell phone battery life by harnessing energy from the voice of the phone user and surrounding noise vibrations.

Second Place: $8,000 J-Paxers Rogers State University Team Leader: Kasey Ng Team Members: Whitney Duncan, Loren LeForce, Bryce Hall, Dil Patel Advisor: Charles D. Atkins The J-Paxers have developed the patent-pending J-Pax backpack that eliminates the need for shoulder straps and provides users the ability to carry more items or weight without strain or injury.

Second Place: $10,000 – R2R Technologies Oklahoma State University Team Leader: Aravind Seshadri Team Members: Pedro Velasco, Carlo Branca Advisor: Prabhakar Pagilla R2R Technologies is using a patented fiber optic sensor that will reduce waste and cost by keeping material properly aligned during the manufacturing process to prevent wrinkling, creasing and breakage.

Third Place, $4,000 Revolutionary Transportation Northeastern Oklahoma A&M College Team Leader: Stephanie Asher Team Members: Belinda Hunt, Karlee Gibson, Robert Woods Advisor: Scott Donaldson Revolutionary Transportation offers a fleet of CNG-powered buses in the Northeast Oklahoma Region with the initial plan to operate between Miami, Oklahoma and Joplin, Missouri.

Third Place: $5,000 – Turtle One The University of Tulsa Team Leader: Phoebe Hardwicke Team Members: Nick Wood Advisor: Claire Cornell Turtle One developed a database search technique that retrieves information and produces results five times than current methods used to search databases.

U N D E R G R A D UAT E D I V I S I O N First Place: $20,000 Code Sooq University of Tulsa Team Leader: Ahmed El-Kishky Team Members: Stephen Macke, Marla Blum, Mark Denhoed Advisor: David Greer Code Sooq has created a Web-based service that connects software programmers with potential customers. Second Place: $10,000 FieldFocus University of Oklahoma Team Leader: Susan Moring Team Members: Parker Dooly, Jeffrey Rhea, Caroline Trump, Mubeen Shakir Advisor: Robert Free FieldFocus provides innovative software for the oil and gas drilling industry that includes asset and personnel tracking tools, plus job management and big tracking. Third Place: $5,000 Animal Analytics University of Oklahoma Team Leader: Erin K. Dowdy Team Members: Robert Cowlishaw, Joseph Fallin, Charles Carter Advisor: Lowell Busenitz Animal Analytics provides comprehensive medical records for the equine industry through a “HorseFacts” report using a database and implantable RFID chip updated by certified veterinarians.

i&E

Spring 2013

Interview Category Winners $1,000 Each

Oklahoma Business Roundtable Paulsen Award $5,000 each

Oklahoma Business Roundtable Material Sciences and Transportation Category Infinite Composites Oklahoma State University-Tulsa

Andrea McKinney East Central University

AT&T IT/Communications Category Animal Analytics University of Oklahoma Greater Oklahoma City Chamber Healthcare Category Medishine Oklahoma State University i2E Student Generated Category Code Sooq University of Tulsa OG&E Energy and Environmental Category Kick Grass Oklahoma City University

Jerry Powers Oklahoma State University Timothy Whitley Oklahoma State University Pitch Winners, $1,000 each Small Business Division Bryce Hall Rogers State University High Growth Undergraduate Division Susan Moring University of Oklahoma High Growth Graduate Division Fash Fadaei Oklahoma State University

Spring 2013 i&E

i&E

Spring 2013

Interview Category Winners $1,000 Each

Oklahoma Business Roundtable Paulsen Award $5,000 each

Oklahoma Business Roundtable Material Sciences and Transportation Category Infinite Composites Oklahoma State University-Tulsa

Andrea McKinney East Central University

Spring 2013 i&E

i2E PARTNERS

OCAST Oklahoma Center for the Advancement of Science and Technology www.ocast.state.ok.us

U.S. Economic Development Administration www.eda.gov

Entrepreneurship Education Degree programs, courses bridge classroom and the real world

Scott Adams, creator of the popular Dilbert comic strip, once lampooned the value brought to a company by a new MBA graduate. In the cartoon, the grad shows up to a meeting at Dilbert’s corporate office and greets his new colleagues with the line “I just got my MBA and I’m here to solve all your problems.” Dilbert tells him that all of the company’s products are junk and it is out of capital. “Have you tried jargon?” the MBA responds. Funny stuff, but it makes the reader wonder if perhaps Dilbert’s clueless MBA missed his classes on entrepreneurship. If he had been exposed to real world problems that entrepreneurs tackle every day, he would have been ready to formulate a plan of action for a company that is short on cash or trying to develop a product that performs as promised. In a Ewing Kauffman Foundation report titled Entrepreneurship in American Higher Education, the authors argue that entrepreneurship education belongs in college for a variety of reasons, writing that “as a bridge between theory and practice, entrepreneurship is a superb vehicle with which to achieve the aim of the broad, effective, and integrated learning that marks a strong college education.” The Kauffman report cites entrepreneurship as one of the fastest growing areas of study on college campuses across 22

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Spring 2013

the nation. In Oklahoma, entrepreneurship has emerged as a major course of study, with 30 college campuses across the state offering either entrepreneurship degree programs or courses in entrepreneurship. i2E’s Kenneth Knoll was a Finance and International Business major at the University of Tulsa, but a key element of his degree program was a certificate in Product Innovation and Development that required entrepreneurship courses and cross-discipline product development projects with the engineering college. Kenneth also supplemented his formal education by forming a team and writing a business plan around a concept for the Donald W. Reynolds Governor’s Cup competition. His Molecuprint team won first place in the 2007 Undergraduate Division of the competition. This exposure led to an i2E internship in 2008 and today he is our Director of Advisory Services. After graduation, Kenneth went to work for ConocoPhillips in a job that took him around the world for the giant energy producer. A long-time entrepreneur with a Tulsa-based startup he operated for more than a decade, Kenneth brought his college-honed entrepreneurial spirit to i2E in 2010. “No single course or discipline prepares someone for entrepreneurship: not finance, not marketing, not engineering,” Kenneth said. “A mix is important and you

often learn the most when pushed outside your comfort zone. Cross-discipline curriculums force students to understand problems from different perspectives and that’s critical in any size or type of business. But entrepreneurs have an experimental drive to try or create something new and that’s difficult to emulate in the confines of a course syllabus.” The Kauffman Foundation report says that an entrepreneurial society will not just happen by accident. The authors wrote: “We will have to build it and maintain it. To do both, we will have to understand why entrepreneurship matters, how it works and how to sustain it. That understanding is the result of education.” “Enter programs like the i2E hosted Governor’s Cup which fuels new concept development, forcing participants to not only search for answers, but create them,” he said. “And in entrepreneurship, creativity is key, not just learning.” In Dilbert’s world, the MBA brings little more than empty jargon to the table. In the real world, graduates armed with insight and experience gained from an education steeped in entrepreneurship bring creative problem solving skills and knowhow that make a difference for businesses both large and small.

Greater Oklahoma City Chamber www.okcchamber.com

City of Oklahoma City www.okc.gov

Presbyterian Health Foundation www.phf.com

Oklahoma Manufacturing Alliance www.okalliance.com

The Donald W. Reynolds Foundation www.dwreynolds.org

OKLAHOMA EPSCoR The Oklahoma Experimental Program to Stimulate Competitive Research www.okepscor.org

Oklahoma Department of Commerce Oklahoma Business Roundtable www.okcommerce.gov www.okbusinessroundtable.com

Oklahoma Medical Research Foundation www.omrf.org

America Fidelity Foundation www.americanfidelityfoundation.org

U.S. Department of Treasury www.treasury.gov

State Small Business Credit Initiative www.treasury.gov/resource-center

i2E PARTNERS

OCAST Oklahoma Center for the Advancement of Science and Technology www.ocast.state.ok.us

U.S. Economic Development Administration www.eda.gov

Entrepreneurship Education Degree programs, courses bridge classroom and the real world

i&E

Spring 2013

Greater Oklahoma City Chamber www.okcchamber.com

City of Oklahoma City www.okc.gov

Presbyterian Health Foundation www.phf.com

Oklahoma Manufacturing Alliance www.okalliance.com

The Donald W. Reynolds Foundation www.dwreynolds.org

OKLAHOMA EPSCoR The Oklahoma Experimental Program to Stimulate Competitive Research www.okepscor.org

Oklahoma Department of Commerce Oklahoma Business Roundtable www.okcommerce.gov www.okbusinessroundtable.com

Oklahoma Medical Research Foundation www.omrf.org

America Fidelity Foundation www.americanfidelityfoundation.org

U.S. Department of Treasury www.treasury.gov

State Small Business Credit Initiative www.treasury.gov/resource-center

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