i&E Magazine Winter 2011

O K L A H O M A’ S A D VA N C E D T E C H N O L O G Y M A G A Z I N E

WINTER 2011

Innovators & Entrepreneurs

NEW SPACES and NEW FACES

OKC increases services and resources for local high growth entrepreneurs

OKLAHOMA CITY:

12

Fortune Small Business Magazine’s INSIDE

“Best Place to Launch” a Business

i&E Profiles DermaMedics 4 Failsafe Hazmat Compliance 6 Expert TA 8 WeGoLook.com 10

12 Cover Story

Our value for startups and entrepreneurs extends far beyond our low cost of doing business. A stable & diverse economy, business-friendly partnerships and low cost of living are just a few of the benefits to working and living in Oklahoma City. As our list of accolades keeps growing, so does your potential success in Oklahoma City. Give us a call and find out how OKC can help launch your success.

Take a virtual stroll through the remodeled Oklahoma City offices of i2E to gain insight into its expanded services for entrepreneurs.

18 i2E Blog

In its new blog, i2E’s team members and guest bloggers have an ongoing conversation on the challenges and rewards of building a successful high growth business.

22 The Power of 2

The Greater Oklahoma City Chamber and i2E have united their efforts to help entrepreneurs in a new Office of Entrepreneurial Development.

24 Partners 6 6

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 2011 i2E, Inc. All rights reserved.

405-297-8900 | www.greateroklahomacity.com

4

8

OKLAHOMA CITY:

12

Fortune Small Business Magazine’s INSIDE

“Best Place to Launch” a Business

i&E Profiles DermaMedics 4 Failsafe Hazmat Compliance 6 Expert TA 8 WeGoLook.com 10

12 Cover Story

Our value for startups and entrepreneurs extends far beyond our low cost of doing business. A stable & diverse economy, business-friendly partnerships and low cost of living are just a few of the benefits to working and living in Oklahoma City. As our list of accolades keeps growing, so does your potential success in Oklahoma City. Give us a call and find out how OKC can help launch your success.

Take a virtual stroll through the remodeled Oklahoma City offices of i2E to gain insight into its expanded services for entrepreneurs.

18 i2E Blog

In its new blog, i2E’s team members and guest bloggers have an ongoing conversation on the challenges and rewards of building a successful high growth business.

22 The Power of 2

The Greater Oklahoma City Chamber and i2E have united their efforts to help entrepreneurs in a new Office of Entrepreneurial Development.

24 Partners 6 6

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 2011 i2E, Inc. All rights reserved.

405-297-8900 | www.greateroklahomacity.com

4

8

ABOUT i2E i2E’s award winning suite of business and advisory services, access to capital and entrepreneurial development programs are all designed to help us accomplish our mission: home grown economic development by nurturing the growth of advanced technology companies in Oklahoma.

In the past year we have enhanced the services we provide by adding new employees to carry out our mission and tapping new sources of funding that will allow us to deepen our positive impact upon Oklahoma’s economy.

With a $1 million grant from the Federal Economic Development Administration and matching funds from five local partners – the Greater Oklahoma City Chamber, the city of Oklahoma City, the Oklahoma Medical Research Foundation, the Oklahoma Business Roundtable, and Presbyterian Health Foundation – i2E is creating a “Quick Launch” program that will provide additional services at key stages of companies’ development. i2E continues to maintain a large role in providing access to capital for Oklahoma’s technology-based entrepreneurs. The impact of our investment programs is demonstrated by the fact that over the past decade i2E clients received 90% of all venture capital invested in Oklahoma technology companies.

We manage two state-appropriated funds and a private angel investment group that was organized in the spring of 2009.

Together, i2E funding sources – the Technology Business Finance Program, the Oklahoma Seed Capital Fund and the SeedStep Angels group – provide critical proof of concept funding, seed and start-up equity financing and private equity funding for Oklahoma’s high growth companies. i2E’s role in developing new entrepreneurial talent for Oklahoma also is evolving. We are preparing to manage the seventh annual Donald W. Reynolds’ Governor’s Cup business plan competition, while expanding the number of i2E Fellows we will name in 2011.

Our efforts to build Oklahoma’s innovation economy have won national and international acclaim. In the past two years, we have been recognized with awards from both the International Economic Development Council and the State Science and Technology Institute.

We continue to turn Innovation to Enterprise for Oklahoma – i2E.

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

Tom Walker President and CEO David Thomison Vice President, Investments

Leslie Batchelor The Center for Economic Development Law

A Letter From the President

James Bode Bank of Oklahoma, N.A.

For more than four months, the daily hum of business in i2E’s Oklahoma City offices was accompanied by the sounds of walls being demolished, drills, sanders and the occasional outbreak of hammering.

It was music to my ears. i2E’s Oklahoma City office has undergone a remarkable transformation that was completed in mid February. It has left us better equipped than ever to deliver our venture based advisory services, access to capital and entrepreneurial development programs.

The expanded and remodeled space in the Presbyterian Health Foundation Research Park was accomplished in the wake of the $1 million grant i2E was awarded by the federal Economic Development Administration. Together with matching funds from five Oklahoma City area partners – Greater OKC Chamber, City of OKC, Oklahoma Business Roundtable, Oklahoma Medical Research Foundation, and the Presbyterian Health Foundation – we have expanded our capabilities and services to Oklahoma entrepreneurs.

In this issue of i&E magazine, you will take a virtual walk-through of our office space and see how it is being used by our team of business advisory professionals, investment team and start-up companies.

Part of the expansion of our services to entrepreneurs includes a joint initiative with the Greater Oklahoma City Chamber to open an Office of Entrepreneurial Development that will provide more resources and assistance for entrepreneurs in high growth sectors.

Mike Carolina OCAST Bob Craine TSF Capital, LLC Steve Cropper

Rex Smitherman Vice President, Operations

Phil Eller Eller Detrich, P.C.

Wayne Embree Vice President, Entrepreneur Services

Suzette Hatfield Crawley Ventures

Sarah Seagraves Vice President, Marketing

David Hogan Hogan Taylor, LLP

Tom Francis Director, Investment Funds

Phil Kurtz Benefit Informatics

David Daviee Director, Finance

Hershel Lamirand, III Oklahoma Health Center Foundation

Richard Gajan Senior Executive Advisor

Merl Lindstrom ConocoPhilips, Inc.

Richard Rainey Executive Advisor

Dan Luton OCAST

Casey Harness Business Analyst

Scott Meacham Crowe & Dunlevy

Kenneth Knoll Manager, Concept Funds

Fred Morgan The State Chamber

Scott Thomas IT Manager

Mike Neal Tulsa Metro Chamber

Grady Epperly Marketing Manager Michael Kindrat-Pratt Coordinator, SeedStep Angels Jim Stafford Communications Specialist Cindy Williams Investment Assistant

David Pitts Stillwater National Bank Mark Poole Summit Bank Stephen Prescott OMRF Darryl Schmidt BancFirst

Jennifer Buettner Executive Assistant

Sheri Stickley OKBio Wes Stucky Ardmore Industrial Development Authority

BOARD OF DIRECTORS

Dick Williamson TD Williamson, Inc.

Roy Williams Chairman, Greater Oklahoma City Chamber

Duane Wilson LDW Services, LLC

Michael LaBrie Secretary, McAfee & Taft Howard Barnett, Jr. Oklahoma State University - Tulsa

Elsewhere in this issue, we profile four up-and-coming high growth companies. Two of those, Failsafe Hazmat Compliance and Expert TA are based in Tulsa and take unique approaches to solve two very different problems.

Failsafe has developed an easily accessible online database for shippers of hazardous materials and the shipping regulations that governmen them. Expert TA has created perhaps the first software that is capable of providing human-like, partial credit grading of complex math and science problems.

From Oklahoma City, we profile DermaMedics and WeGoLook.com, companies that also tackle varied consumer problems. DermaMedics is commercializing topical treatments for prevention of burns and other skin issues. WeGoLook.com has developed an online application that offers consumers an inexpensive way to verify property, items sold online and even online dates.

Finally, we offer a sampling of blog posts from our new i2E blog that discuss challenges facing emerging growth companies and provides pertinent advice on resources to help entrepreneurs work smarter, not harder. I know that you will enjoy the varied viewpoints of our team and guest bloggers.

After you’ve read this edition of i&E magazine, you are welcome to make plans to come to our Oklahoma City offices any time and take your own walk through of our innovative new space.

Don Wood Norman Economic Development Coalition

www.i2E.org facebook.com/OKGOVCUP twitter.com/i2E_Inc Fall 2010 i&E

3

ABOUT i2E i2E’s award winning suite of business and advisory services, access to capital and entrepreneurial development programs are all designed to help us accomplish our mission: home grown economic development by nurturing the growth of advanced technology companies in Oklahoma.

In the past year we have enhanced the services we provide by adding new employees to carry out our mission and tapping new sources of funding that will allow us to deepen our positive impact upon Oklahoma’s economy.

With a $1 million grant from the Federal Economic Development Administration and matching funds from five local partners – the Greater Oklahoma City Chamber, the city of Oklahoma City, the Oklahoma Medical Research Foundation, the Oklahoma Business Roundtable, and Presbyterian Health Foundation – i2E is creating a “Quick Launch” program that will provide additional services at key stages of companies’ development. i2E continues to maintain a large role in providing access to capital for Oklahoma’s technology-based entrepreneurs. The impact of our investment programs is demonstrated by the fact that over the past decade i2E clients received 90% of all venture capital invested in Oklahoma technology companies.

We manage two state-appropriated funds and a private angel investment group that was organized in the spring of 2009.

Together, i2E funding sources – the Technology Business Finance Program, the Oklahoma Seed Capital Fund and the SeedStep Angels group – provide critical proof of concept funding, seed and start-up equity financing and private equity funding for Oklahoma’s high growth companies. i2E’s role in developing new entrepreneurial talent for Oklahoma also is evolving. We are preparing to manage the seventh annual Donald W. Reynolds’ Governor’s Cup business plan competition, while expanding the number of i2E Fellows we will name in 2011.

Our efforts to build Oklahoma’s innovation economy have won national and international acclaim. In the past two years, we have been recognized with awards from both the International Economic Development Council and the State Science and Technology Institute.

We continue to turn Innovation to Enterprise for Oklahoma – i2E.

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

Tom Walker President and CEO David Thomison Vice President, Investments

Leslie Batchelor The Center for Economic Development Law

A Letter From the President

James Bode Bank of Oklahoma, N.A.

For more than four months, the daily hum of business in i2E’s Oklahoma City offices was accompanied by the sounds of walls being demolished, drills, sanders and the occasional outbreak of hammering.

It was music to my ears. i2E’s Oklahoma City office has undergone a remarkable transformation that was completed in mid February. It has left us better equipped than ever to deliver our venture based advisory services, access to capital and entrepreneurial development programs.

The expanded and remodeled space in the Presbyterian Health Foundation Research Park was accomplished in the wake of the $1 million grant i2E was awarded by the federal Economic Development Administration. Together with matching funds from five Oklahoma City area partners – Greater OKC Chamber, City of OKC, Oklahoma Business Roundtable, Oklahoma Medical Research Foundation, and the Presbyterian Health Foundation – we have expanded our capabilities and services to Oklahoma entrepreneurs.

In this issue of i&E magazine, you will take a virtual walk-through of our office space and see how it is being used by our team of business advisory professionals, investment team and start-up companies.

Part of the expansion of our services to entrepreneurs includes a joint initiative with the Greater Oklahoma City Chamber to open an Office of Entrepreneurial Development that will provide more resources and assistance for entrepreneurs in high growth sectors.

Mike Carolina OCAST Bob Craine TSF Capital, LLC Steve Cropper

Rex Smitherman Vice President, Operations

Phil Eller Eller Detrich, P.C.

Wayne Embree Vice President, Entrepreneur Services

Suzette Hatfield Crawley Ventures

Sarah Seagraves Vice President, Marketing

David Hogan Hogan Taylor, LLP

Tom Francis Director, Investment Funds

Phil Kurtz Benefit Informatics

David Daviee Director, Finance

Hershel Lamirand, III Oklahoma Health Center Foundation

Richard Gajan Senior Executive Advisor

Merl Lindstrom ConocoPhilips, Inc.

Richard Rainey Executive Advisor

Dan Luton OCAST

Casey Harness Business Analyst

Scott Meacham Crowe & Dunlevy

Kenneth Knoll Manager, Concept Funds

Fred Morgan The State Chamber

Scott Thomas IT Manager

Mike Neal Tulsa Metro Chamber

Grady Epperly Marketing Manager Michael Kindrat-Pratt Coordinator, SeedStep Angels Jim Stafford Communications Specialist Cindy Williams Investment Assistant

David Pitts Stillwater National Bank Mark Poole Summit Bank Stephen Prescott OMRF Darryl Schmidt BancFirst

Jennifer Buettner Executive Assistant

Sheri Stickley OKBio Wes Stucky Ardmore Industrial Development Authority

BOARD OF DIRECTORS

Dick Williamson TD Williamson, Inc.

Roy Williams Chairman, Greater Oklahoma City Chamber

Duane Wilson LDW Services, LLC

Michael LaBrie Secretary, McAfee & Taft Howard Barnett, Jr. Oklahoma State University - Tulsa

Elsewhere in this issue, we profile four up-and-coming high growth companies. Two of those, Failsafe Hazmat Compliance and Expert TA are based in Tulsa and take unique approaches to solve two very different problems.

Failsafe has developed an easily accessible online database for shippers of hazardous materials and the shipping regulations that governmen them. Expert TA has created perhaps the first software that is capable of providing human-like, partial credit grading of complex math and science problems.

From Oklahoma City, we profile DermaMedics and WeGoLook.com, companies that also tackle varied consumer problems. DermaMedics is commercializing topical treatments for prevention of burns and other skin issues. WeGoLook.com has developed an online application that offers consumers an inexpensive way to verify property, items sold online and even online dates.

Finally, we offer a sampling of blog posts from our new i2E blog that discuss challenges facing emerging growth companies and provides pertinent advice on resources to help entrepreneurs work smarter, not harder. I know that you will enjoy the varied viewpoints of our team and guest bloggers.

After you’ve read this edition of i&E magazine, you are welcome to make plans to come to our Oklahoma City offices any time and take your own walk through of our innovative new space.

Don Wood Norman Economic Development Coalition

www.i2E.org facebook.com/OKGOVCUP twitter.com/i2E_Inc Fall 2010 i&E

3

Profiles DermaMedics

Our technology can actually prevent skin burning, whether it is a sunburn, an X-ray or a laser procedure.

Bryan Fuller, Ph.D. Founder and CEO Year started: 2010 Location: Oklahoma City Employees: 4

– Bryan Fuller Ph.D.

DERMAMEDICS

SOOTHES THE SKIN

FROM A KILLER DISEASE Dr. Fuller with a Franz cell apparatus.

A Franz cell measures the precise amount of any bioactive compound that can penetrate into the skin from a topically applied formulation.

4

i&E

Winter 2011

L

ifesaving use of medical radiation to kill cancer cells has an unwanted side effect that can be devastating: Radiation burns away the skin as it attacks cancer cells, resulting in virtually 100 percent of patients undergoing treatment to suffer painful, disfiguring burns. The result is that treatment is often slowed or even suspended.

“Some of these burns are so severe that the radiation treatment has to be halted until the patient recovers sufficiently,” said Dr. Bryan Fuller, founder and Chief Executive Officer of Oklahoma City-based DermaMedics. “They just can’t finish, they are in so much pain.”

DermaMedics produces a patent-protected line of topical therapeutics that helps patients recover more quickly from the burning that results from radiation treatments and laser procedures, and has myriad other beneficial uses.

“We sell our product to a variety of cancer centers around the state,” Dr. Fuller said. “I’ve been told by radiation oncologists that for ev-

ery week you have to delay completion of the procedure, the life expectancy of that patient drops 10 percent.”

The company markets its topical therapeutics exclusively to medical professionals and medical spas, who resell the products to their patients as over-the-counter cosmetics that improve the appearance of the skin.

Clinical studies have shown that DermaMedics’ products are effective in providing anti-inflammatory relief for a variety of conditions, including psoriasis, rosacea and acne, as well as anti-aging benefits.

A professor in the Department of Biochemistry and Molecular Biology at the University of Oklahoma Health Sciences Center for more than two decades, Dr. Fuller discovered compounds in his OU Health Sciences Center laboratory that reduced inflammation of the skin. He trademarked the technology as Therosol.

Already a serial entrepreneur with previous companies MelanX and Cutanix, Dr. Fuller

retired as a full-time professor at OUHSC in 2006. He subsequently founded a company called Therametics to produce and market Therosol formulations that became the basis for DermaMedics. Therametics sells lower-strength Therosol products directly to the public.

“We’ve done clinical studies for cancer, we’ve done clinical studies for psoriasis,” he said. “Our psoriasis compound will improve the psoriasis score by 50 percent in three weeks, which is better than prescription drugs.”

DermaMedics products are sold as over-the-counter cosmetics products because the FDA does not require a long clinical trials process for products that make claims only to improve appearance. The company markets 14 products under the DermaMedics brand and 22 under the Therametics brand.

Merely by word-of-mouth marketing, physicians, clinics and medical spas in Oklahoma, Texas and Arkansas are selling DermaMedics products to their patients. One medical spa in the Tulsa area began by ordering $500 worth of product and is now ordering $10,000 monthly.

“There is a tremendous demand,” he said. “Plastic surgeons, for example. They do a lot of laser work and the end result of that is burning.

If you can prevent burns from X-rays, you can prevent burns from any procedure.”

Still largely self-funded by its founder, the company is working to raise roughly $200,000 to build a sales force. Dr. Fuller came to i2E seeking help in attracting investors. “i2E is very proactive,” he said. “They are clearly and sincerely interested in helping you.”

The need for products such as DermaMedics is critical to cancer patients undergoing radiation treatment and other burn victims, Dr. Fuller said.

DermaMedics fills that need.

Product or Technology: Topical anti-inflammatory products to prevent burns in cancer patients and in patients undergoing cosmetic procedures, and products to treat a variety of common skin diseases such as psoriasis, acne, eczema and rosacea, and skin aging.

Market: Products are designed for the billion dollar dermatology and skin care market.

Products are sold exclusively to physicians, medical spas and cancer centers.

Future plans: DermaMedics currently has 14 products on the market and will expand its topical over-the-counter products for wound healing, dandruff, seborrheic dermatitis and fungal infections over the next year.

Funding: The company has been self funded by its founder with outside investors recently taking advantage of a limited private placement offering.

Successes: DermaMedics products have been clinically proven to prevent radiation burns in cancer patient, to effectively treat psoriasis and rosacea. Its products now have been successfully introduced to the market place with accounts established with a number of medical spas, plastic surgeons and dermatologists in Texas, Oklahoma and Arkansas. www.dermamedics.com

Winter 2011

i&E

5

Profiles DermaMedics

Our technology can actually prevent skin burning, whether it is a sunburn, an X-ray or a laser procedure.

Bryan Fuller, Ph.D. Founder and CEO Year started: 2010 Location: Oklahoma City Employees: 4

– Bryan Fuller Ph.D.

DERMAMEDICS

SOOTHES THE SKIN

FROM A KILLER DISEASE Dr. Fuller with a Franz cell apparatus.

A Franz cell measures the precise amount of any bioactive compound that can penetrate into the skin from a topically applied formulation.

4

i&E

Winter 2011

L

ifesaving use of medical radiation to kill cancer cells has an unwanted side effect that can be devastating: Radiation burns away the skin as it attacks cancer cells, resulting in virtually 100 percent of patients undergoing treatment to suffer painful, disfiguring burns. The result is that treatment is often slowed or even suspended.

“Some of these burns are so severe that the radiation treatment has to be halted until the patient recovers sufficiently,” said Dr. Bryan Fuller, founder and Chief Executive Officer of Oklahoma City-based DermaMedics. “They just can’t finish, they are in so much pain.”

DermaMedics produces a patent-protected line of topical therapeutics that helps patients recover more quickly from the burning that results from radiation treatments and laser procedures, and has myriad other beneficial uses.

“We sell our product to a variety of cancer centers around the state,” Dr. Fuller said. “I’ve been told by radiation oncologists that for ev-

ery week you have to delay completion of the procedure, the life expectancy of that patient drops 10 percent.”

The company markets its topical therapeutics exclusively to medical professionals and medical spas, who resell the products to their patients as over-the-counter cosmetics that improve the appearance of the skin.

Clinical studies have shown that DermaMedics’ products are effective in providing anti-inflammatory relief for a variety of conditions, including psoriasis, rosacea and acne, as well as anti-aging benefits.

A professor in the Department of Biochemistry and Molecular Biology at the University of Oklahoma Health Sciences Center for more than two decades, Dr. Fuller discovered compounds in his OU Health Sciences Center laboratory that reduced inflammation of the skin. He trademarked the technology as Therosol.

Already a serial entrepreneur with previous companies MelanX and Cutanix, Dr. Fuller

retired as a full-time professor at OUHSC in 2006. He subsequently founded a company called Therametics to produce and market Therosol formulations that became the basis for DermaMedics. Therametics sells lower-strength Therosol products directly to the public.

“We’ve done clinical studies for cancer, we’ve done clinical studies for psoriasis,” he said. “Our psoriasis compound will improve the psoriasis score by 50 percent in three weeks, which is better than prescription drugs.”

DermaMedics products are sold as over-the-counter cosmetics products because the FDA does not require a long clinical trials process for products that make claims only to improve appearance. The company markets 14 products under the DermaMedics brand and 22 under the Therametics brand.

Merely by word-of-mouth marketing, physicians, clinics and medical spas in Oklahoma, Texas and Arkansas are selling DermaMedics products to their patients. One medical spa in the Tulsa area began by ordering $500 worth of product and is now ordering $10,000 monthly.

“There is a tremendous demand,” he said. “Plastic surgeons, for example. They do a lot of laser work and the end result of that is burning.

If you can prevent burns from X-rays, you can prevent burns from any procedure.”

Still largely self-funded by its founder, the company is working to raise roughly $200,000 to build a sales force. Dr. Fuller came to i2E seeking help in attracting investors. “i2E is very proactive,” he said. “They are clearly and sincerely interested in helping you.”

The need for products such as DermaMedics is critical to cancer patients undergoing radiation treatment and other burn victims, Dr. Fuller said.

DermaMedics fills that need.

Product or Technology: Topical anti-inflammatory products to prevent burns in cancer patients and in patients undergoing cosmetic procedures, and products to treat a variety of common skin diseases such as psoriasis, acne, eczema and rosacea, and skin aging.

Market: Products are designed for the billion dollar dermatology and skin care market.

Products are sold exclusively to physicians, medical spas and cancer centers.

Future plans: DermaMedics currently has 14 products on the market and will expand its topical over-the-counter products for wound healing, dandruff, seborrheic dermatitis and fungal infections over the next year.

Funding: The company has been self funded by its founder with outside investors recently taking advantage of a limited private placement offering.

Successes: DermaMedics products have been clinically proven to prevent radiation burns in cancer patient, to effectively treat psoriasis and rosacea. Its products now have been successfully introduced to the market place with accounts established with a number of medical spas, plastic surgeons and dermatologists in Texas, Oklahoma and Arkansas. www.dermamedics.com

Winter 2011

i&E

5

Profiles Failsafe Hazmat Compliance

i2E is the best investment as a technology company that I have made, Rosenthal said.

Richard Gajan and David Thomison are rock stars, and I couldn’t have done it without them.

Brad Rosenthal Co-founder and President Year started: 2010 Location: Tulsa Employees: 2

– Brad Rosenthal

Rosenthal brings his own software development expertise to Failsafe Hazmat, creating software applications that match the needs of the hazardous materials shipping industry. Software applications created by Failsafe Hazmat include:

Product or technology: Failsafe has three created software products – the Placarding Calculator, Failsafe Aire and 49Online – to help companies that ship hazardous materials comply with various shipping regulations.

Market: The company is entering a $2 billion

C/O: SAFETY

Software Alerts Hazardous Shipping

T

he 1996 crash of ValueJet Flight 592 claimed 110 lives in a tragedy that might have been prevented if regulations for the shipping of hazardous materials had been followed properly. The flight was brought down when oxygen canisters improperly loaded into a cargo hold caught fire shortly after takeoff.

Tulsa-based Failsafe Hazmat Compliance is creating a suite of online databases of regulated materials that are designed to ensure that another disaster similar to the ValueJet crash doesn’t happen.

Failsafe Hazmat’s digital solution replaces the error-prone manual process of matching hazardous materials to shipping regulations still in use today for the more than 1 million hazmat shipments daily.

“With that manual process, mistakes happen like what happened with ValueJet,” said Brad Rosenthal, founder and President of Failsafe Hazmat Compliance. “Someone just made a mistake; they didn’t mark it right; they didn’t pack it right. It shouldn’t have been on the airplane.”

A shipping agent scanning the barcode of a hazardous material into a digital database would eliminate the type of error that allowed volatile oxygen canisters to be placed in the cargo hold of ValueJet Flight 592.

“If a shipping clerk attempts to ship a hazardous material on a mode of transportation that is ineligible, the software will stop him,” Rosenthal said. “If he tries to ship an amount that is too much for a particular mode, it will stop him. If he tries to ship two hazmat materials that are incompatible, it will stop him.”

6

i&E

Winter 2011

49Online: Allows shippers to easily search the 49 Code of Federal Regulations database for all pertinent information related to a selected hazmat item.

Failsafe Aire: A database in which an administrator will set up new hazmat materials and matching shipping regulations, which then can be accessed by users preparing a shipment, for whom it will return correct shipping documents and instructions needed to ship the item via airfreight.

The Placarding Calculator: Designed for freight truckers and law enforcement, this tool takes into consideration all the various hazardous materials that are being shipped on a truck and then returns the needed hazmat placards that must be displayed.

worldwide market for shippers of hazardous materials in the chemical, pharmaceutical, energy, medical and retail industries, as well as transportation companies.

Future plans: Failsafe anticipates its staff will grow at a quick, but structured pace as it offers more software solutions and sees its customer base grow.

Funding: Failsafe has received approximately $50,000 in funding and is currently seeking additional $125,000 from angel investors to complete initial software development and marketing.

Successes: The company has completed two of the four regulatory databases which could help attract initial customers for its software. It has significant interest from a number of companies with its Failsafe Aire product and is working quickly to complete it in the first quarter of 2011.

Failsafe’s software replaces large, unwieldy books of regulations that shippers must manually search. It will address four regulatory sets and four modes of transportation, rail, air, truck and water vessel.

“With Failsafe Hazmat, you aren’t making a dock worker dig through these behemoth rule sets,” Rosenthal said. “Our software does all the work for him.”

Referred to i2E by another client, Rosenthal said the relationship has benefitted Failsafe Hazmat in numerous areas, from helping the company edit its business plan, to polishing its investment pitch and introducing it to industry experts and potential investors. Rosenthal even maintains an office in i2E’s incubator space in Tulsa. “i2E is the best investment as a technology company that I have made,” Rosenthal said. “Richard Gajan and David Thomison are rock stars, and I couldn’t have done it without them.”

www.failsafehazmat.com

Winter 2011

i&E

7

Profiles Failsafe Hazmat Compliance

i2E is the best investment as a technology company that I have made, Rosenthal said.

Richard Gajan and David Thomison are rock stars, and I couldn’t have done it without them.

Brad Rosenthal Co-founder and President Year started: 2010 Location: Tulsa Employees: 2

– Brad Rosenthal

Rosenthal brings his own software development expertise to Failsafe Hazmat, creating software applications that match the needs of the hazardous materials shipping industry. Software applications created by Failsafe Hazmat include:

Product or technology: Failsafe has three created software products – the Placarding Calculator, Failsafe Aire and 49Online – to help companies that ship hazardous materials comply with various shipping regulations.

Market: The company is entering a $2 billion

C/O: SAFETY

Software Alerts Hazardous Shipping

T

he 1996 crash of ValueJet Flight 592 claimed 110 lives in a tragedy that might have been prevented if regulations for the shipping of hazardous materials had been followed properly. The flight was brought down when oxygen canisters improperly loaded into a cargo hold caught fire shortly after takeoff.

Tulsa-based Failsafe Hazmat Compliance is creating a suite of online databases of regulated materials that are designed to ensure that another disaster similar to the ValueJet crash doesn’t happen.

Failsafe Hazmat’s digital solution replaces the error-prone manual process of matching hazardous materials to shipping regulations still in use today for the more than 1 million hazmat shipments daily.

“With that manual process, mistakes happen like what happened with ValueJet,” said Brad Rosenthal, founder and President of Failsafe Hazmat Compliance. “Someone just made a mistake; they didn’t mark it right; they didn’t pack it right. It shouldn’t have been on the airplane.”

A shipping agent scanning the barcode of a hazardous material into a digital database would eliminate the type of error that allowed volatile oxygen canisters to be placed in the cargo hold of ValueJet Flight 592.

“If a shipping clerk attempts to ship a hazardous material on a mode of transportation that is ineligible, the software will stop him,” Rosenthal said. “If he tries to ship an amount that is too much for a particular mode, it will stop him. If he tries to ship two hazmat materials that are incompatible, it will stop him.”

6

i&E

Winter 2011

49Online: Allows shippers to easily search the 49 Code of Federal Regulations database for all pertinent information related to a selected hazmat item.

Failsafe Aire: A database in which an administrator will set up new hazmat materials and matching shipping regulations, which then can be accessed by users preparing a shipment, for whom it will return correct shipping documents and instructions needed to ship the item via airfreight.

The Placarding Calculator: Designed for freight truckers and law enforcement, this tool takes into consideration all the various hazardous materials that are being shipped on a truck and then returns the needed hazmat placards that must be displayed.

worldwide market for shippers of hazardous materials in the chemical, pharmaceutical, energy, medical and retail industries, as well as transportation companies.

Future plans: Failsafe anticipates its staff will grow at a quick, but structured pace as it offers more software solutions and sees its customer base grow.

Funding: Failsafe has received approximately $50,000 in funding and is currently seeking additional $125,000 from angel investors to complete initial software development and marketing.

Successes: The company has completed two of the four regulatory databases which could help attract initial customers for its software. It has significant interest from a number of companies with its Failsafe Aire product and is working quickly to complete it in the first quarter of 2011.

Failsafe’s software replaces large, unwieldy books of regulations that shippers must manually search. It will address four regulatory sets and four modes of transportation, rail, air, truck and water vessel.

“With Failsafe Hazmat, you aren’t making a dock worker dig through these behemoth rule sets,” Rosenthal said. “Our software does all the work for him.”

Referred to i2E by another client, Rosenthal said the relationship has benefitted Failsafe Hazmat in numerous areas, from helping the company edit its business plan, to polishing its investment pitch and introducing it to industry experts and potential investors. Rosenthal even maintains an office in i2E’s incubator space in Tulsa. “i2E is the best investment as a technology company that I have made,” Rosenthal said. “Richard Gajan and David Thomison are rock stars, and I couldn’t have done it without them.”

www.failsafehazmat.com

Winter 2011

i&E

7

Profiles Expert TA

We have received confirmation that our software will serve a need not currently being met by other providers of educational software.

– Jeremy Morton

GRADE-A SOFTWARE SOLUTION

O

nce upon a time, Dr. Jeremy Morton was a graduate teaching assistant in the College of Engineering at North Carolina State University, responsible for grading thousands of undergraduate homework assignments.

Instead of working one-on-one as a mentor to help students tackle the complex math and engineering problems thrown at them, Morton’s time was consumed with tedious grading duties. He had less-than-ideal time for actual mentoring of students.

“Universities would love for graduate students to hold office hours and interact with the undergraduate students,” Morton said. “But, quite frankly, often there is so much grading being thrown in their direction they don’t have 8

i&E

Winter 2011

time to do anything else.”

Today, Morton is an assistant professor in the Mechanical and Aerospace Engineering Department of Oklahoma State University and founder of Tulsa-based Expert TA, which has created a software solution to the academic gridlock that challenges universities and their teaching assistants.

While still a Ph.D. candidate at NC State, Morton created a software-based grading alternative to human grading by graduate assistants, which is the basis for Expert TA. The software can provide human-like, partial credit grading complex equations vs. the current technology that is limited to right vs. wrong answers.

“It’s a convenient, Web-based application that has been specifically designed so that it is capable of human-like partial credit grading of complex questions like those found in engineering,” Morton said.

When Morton accepted the teaching position at OSU, he brought the still-in-development software to Oklahoma.

With five years of work behind it, the Expert TA software is in the final stages of development, and the company has identified potential customers from among some of the nation’s largest universities, which are participating in the beta launch of the product.

Demand is strong from major college programs eager to put Expert TA’s technology to work, Morton said.

“We have received confirmation that our software will serve a need not currently being met by other providers of educational software,” he said.

Morton established a relationship with i2E soon after founding Expert TA, and has drawn on the expertise of Executive Advisor Richard Gajan and Vice President for Investments David Thomison for assistance in developing his business model and obtaining critical financing.

Expert TA received $100,000 in proof-of-concept financing through i2E, as well as matching funds from an angel investor after Dr. Morton spoke to the Oklahoma Venture Forum in the fall of 2009.

The company subsequently received additional investment from members of the SeedStep Angels group, which was founded and is managed by i2E. When the Expert TA software is fully developed, it will be sold to universities as a “software as a subscription” product at a cost of roughly one-fifth that of using multiple graduate assistants.

“Potential clients have indicated that our product could facilitate much more interaction between graduate teaching assistants and undergraduate students,” Dr. Morton said. “The bottom line is this solution is just a better management of resources.”

Dr. Morton describes Expert TA’s relationship with i2E as a tremendous value for his company.

“Ever since I became a client, they’ve done everything they said they were going to do,” he said. “They said they had a plan. They facilitated that fast track. It’s just been a phenomenal experience.”

Executive Advisor Richard Gajan helped Dr. Morton refine his business plan, arranged speaking engagements, positioned the company for proof-of-concept funding and networking opportunities that resulted in investment of matching funds by an angel investor.

“It’s hard to believe what you get for $1,000,” Dr. Morton said.

Jeremy Morton, Ph.D. President and CEO Year started: 2009 Location: Tulsa Employees: 2 fulltime plus 8 contract employees

Product or technology: The company will provide a Web-based homework assessment application. Expert TA’s software is capable of human-like grading of complex equations like those found in engineering, physics and math courses.

Market: Expert TA can sell directly to college students and departments at universities, and also plans to form partnerships with publishers of engineering, physics and mathematics textbooks.

Future plans: Expert TA currently is primarily designed to handle automated grading of complex work. Instructors log into the Web-based application and are able to create assignments and do tasks like view and manage grades, etc. Students can log in and complete their assignments and can also do similar tasks like viewing their grades.

In the future, the company will add features to make it a more robust classroom portal where an instructor can post lecture notes, syllabi and other course related material for their students.

Funding: As of the end of 2010, the company had raised just more than $250,000. The first money raised was a $100,000 proof-of-concept financing from i2E. The $100,000-plus in matching funds came from a single investor, a member of the Oklahoma Venture Forum after Dr. Morton presented to the group in the fall of 2009. Another $50,000 was raised from investment by members of the SeedStep Angels group.

Successes: Oklahoma State University, Northeastern State University and the University of Arkansas will serve as beta test sites for the Expert TA software in the Spring 2011 semester, and Dr. Morton is in discussions with others, including Oklahoma State University, the University of Tulsa, Rennselear Polytechnic Institute and Washington University in St. Louis. www.theexpertta.com

Winter 2011

i&E

9

Profiles Expert TA

We have received confirmation that our software will serve a need not currently being met by other providers of educational software.

– Jeremy Morton

GRADE-A SOFTWARE SOLUTION

O

nce upon a time, Dr. Jeremy Morton was a graduate teaching assistant in the College of Engineering at North Carolina State University, responsible for grading thousands of undergraduate homework assignments.

Instead of working one-on-one as a mentor to help students tackle the complex math and engineering problems thrown at them, Morton’s time was consumed with tedious grading duties. He had less-than-ideal time for actual mentoring of students.

“Universities would love for graduate students to hold office hours and interact with the undergraduate students,” Morton said. “But, quite frankly, often there is so much grading being thrown in their direction they don’t have 8

i&E

Winter 2011

time to do anything else.”

Today, Morton is an assistant professor in the Mechanical and Aerospace Engineering Department of Oklahoma State University and founder of Tulsa-based Expert TA, which has created a software solution to the academic gridlock that challenges universities and their teaching assistants.

While still a Ph.D. candidate at NC State, Morton created a software-based grading alternative to human grading by graduate assistants, which is the basis for Expert TA. The software can provide human-like, partial credit grading complex equations vs. the current technology that is limited to right vs. wrong answers.

“It’s a convenient, Web-based application that has been specifically designed so that it is capable of human-like partial credit grading of complex questions like those found in engineering,” Morton said.

When Morton accepted the teaching position at OSU, he brought the still-in-development software to Oklahoma.

With five years of work behind it, the Expert TA software is in the final stages of development, and the company has identified potential customers from among some of the nation’s largest universities, which are participating in the beta launch of the product.

Demand is strong from major college programs eager to put Expert TA’s technology to work, Morton said.

“We have received confirmation that our software will serve a need not currently being met by other providers of educational software,” he said.

Morton established a relationship with i2E soon after founding Expert TA, and has drawn on the expertise of Executive Advisor Richard Gajan and Vice President for Investments David Thomison for assistance in developing his business model and obtaining critical financing.

Expert TA received $100,000 in proof-of-concept financing through i2E, as well as matching funds from an angel investor after Dr. Morton spoke to the Oklahoma Venture Forum in the fall of 2009.

The company subsequently received additional investment from members of the SeedStep Angels group, which was founded and is managed by i2E. When the Expert TA software is fully developed, it will be sold to universities as a “software as a subscription” product at a cost of roughly one-fifth that of using multiple graduate assistants.

“Potential clients have indicated that our product could facilitate much more interaction between graduate teaching assistants and undergraduate students,” Dr. Morton said. “The bottom line is this solution is just a better management of resources.”

Dr. Morton describes Expert TA’s relationship with i2E as a tremendous value for his company.

“Ever since I became a client, they’ve done everything they said they were going to do,” he said. “They said they had a plan. They facilitated that fast track. It’s just been a phenomenal experience.”

Executive Advisor Richard Gajan helped Dr. Morton refine his business plan, arranged speaking engagements, positioned the company for proof-of-concept funding and networking opportunities that resulted in investment of matching funds by an angel investor.

“It’s hard to believe what you get for $1,000,” Dr. Morton said.

Jeremy Morton, Ph.D. President and CEO Year started: 2009 Location: Tulsa Employees: 2 fulltime plus 8 contract employees

Product or technology: The company will provide a Web-based homework assessment application. Expert TA’s software is capable of human-like grading of complex equations like those found in engineering, physics and math courses.

Market: Expert TA can sell directly to college students and departments at universities, and also plans to form partnerships with publishers of engineering, physics and mathematics textbooks.

Future plans: Expert TA currently is primarily designed to handle automated grading of complex work. Instructors log into the Web-based application and are able to create assignments and do tasks like view and manage grades, etc. Students can log in and complete their assignments and can also do similar tasks like viewing their grades.

In the future, the company will add features to make it a more robust classroom portal where an instructor can post lecture notes, syllabi and other course related material for their students.

Funding: As of the end of 2010, the company had raised just more than $250,000. The first money raised was a $100,000 proof-of-concept financing from i2E. The $100,000-plus in matching funds came from a single investor, a member of the Oklahoma Venture Forum after Dr. Morton presented to the group in the fall of 2009. Another $50,000 was raised from investment by members of the SeedStep Angels group.

Successes: Oklahoma State University, Northeastern State University and the University of Arkansas will serve as beta test sites for the Expert TA software in the Spring 2011 semester, and Dr. Morton is in discussions with others, including Oklahoma State University, the University of Tulsa, Rennselear Polytechnic Institute and Washington University in St. Louis. www.theexpertta.com

Winter 2011

i&E

9

Profiles WeGoLook.com

SWEET or SOUR?

W

hen a telecommunications management company from the Midwest considered leasing a California cell phone tower last year, it needed to know if the cell tower met restrictive zoning codes for operation and the condition of the surrounding fencing.

Rather than fly a representative to the West Coast to check out the cell tower, the company invested less than $50 in a “Looker” from Oklahoma City-based WeGoLook.com to first visit the site and create a report.

Within two days, it had the answer it needed to avoid a costly mistake.

“For $49, WeGoLook dispatched a local Looker to the cell tower site.

The Looker took several photos and the customer was able to tell by the photos that out of 10 zoning requirements, the tower was only compliant with two,” said WeGoLook co-founder Robin Smith. “There’s no telling how much money we saved them in fines, and this information prompted them to perform additional due diligence.”

Founded by a group of Oklahomans who recognized the uncertainty faced by consumers of online sites such as eBay and Craigslist, WeGoLook began full operation in June 2010. Co-founder Mark Caywood conceived the idea of an online verification company after the unsettling experience of buying an expensive – and unseen – movie projector in an eBay auction.

“We sat down and started talking about it, started brainstorming, what could people do with this resource, this community of Lookers,” Smith said. “The idea began expanding to property owners with rental/ vacation property in other states who need to verify storm or tenant damage, business-to-business tasks, big-ticket items like automobiles, boats… even verification of online dates! The entire concept began lending itself to many items and situations where on-site verification was valuable.”

10

i&E

Winter 2011

I want people to know about this service, not only because it would make us successful, but because it would help a lot of people.

– Robin Smith

The three co-founders – Mark Caywood, Robin Smith and Mat Smith – began building a sophisticated software application that allows clients to go online and order a detailed report on any almost item, property or person within the United States/Puerto Rico.

The company has contracted with more than 7,400 “Lookers” nationwide (background check verified persons) who provide confidence to long-distance buyers, sellers and online dating partners by gathering on-site information along with photos/videos/measurements/etc. then upload the completed report to WeGoLook.com.

“Automobiles are our No. 1 requested report,” Smith said. “There are 2 million unique auto listings every single month online and we are constantly evolving to provide the best customer experience possible. Within the next few weeks, WeGoLook will be offering full inspections along with our verification reports as we integrate technology with our newest auto partner.”

WeGoLook has steadily built its presence by offering its platform to other sites, most recently with OLA.com (OnlineAuction.com) and world’s largest live online auction company, proxibid.com. Both partners feature buyers and sellers of heavy equipment, farm implements, livestock, real estate, autos, cycles, marine and more. The nationally known automotive site, cars.com, began beta testing with WeGoLook in early February. WeGoLook will also be presenting the platform to eBay Motors in San Jose soon.

After it was founded in late 2009, WeGoLook quickly reached out to i2E. The relationship through Executive Advisor Rick Rainey has benefited the company by providing business development structure, access to capital and even important networking contacts.

“From the very beginning, we have absolutely loved working with i2E,” Smith said “I can honestly tell you that being involved with i2E has been a great learning experience and helped us focus on the fundamentals of what we need to do.”

Of course, WeGoLook still faces big challenges in its quest to grow, including that of making the verification service nationally known to consumers.

“I want people to know about this service, not only because it would make us successful, but because it would help a lot of people,” Smith said. “How many people are getting scammed all the time and heartbroken by misrepresented online dates? Customers can avoid costly surprises, save travel costs and avoid becoming a victim of fraud or misrepresentation.”

For the global online consumer, property buyer and the lovelorn alike, WeGoLook has the answer. Send a “Looker” before you leap.

Robin Smith Co-Founder Year Started: 2010 Location: Oklahoma City Employees: 5

Product or technology: Technology that electronically accepts online orders from customers for verification of property, big-ticket items, people, etc. then directly pushes to more than 7,400 “Lookers,” who complete visual inspection and upload the report that is sent to customer.

Market: Global consumers and business customers of unseen items, property or online dates; the largest market to date is online automobile sales and auctions.

Future plans: The company plans to provide its verification platform to target partners such as proxibid.com and Cars.com; eventually, WeGoLook plans to expand its service to international markets such as Canada, Australia and Europe.

Funding: WeGoLook is self-funded, but recently was awarded $100,000 in proof-of-concept financing from i2E. WeGoLook is interested in opportunities with Angels experienced in taking online companies “to the next level”.

Successes:

Major

milestones

include

the

launch of its service in mid-2010, creating the online technology and website, recruiting more than 7,000 “Lookers” and establishing working partnerships with several major online sales and auction companies. www.wegolook.com

Winter 2011

i&E

11

Profiles WeGoLook.com

SWEET or SOUR?

W

hen a telecommunications management company from the Midwest considered leasing a California cell phone tower last year, it needed to know if the cell tower met restrictive zoning codes for operation and the condition of the surrounding fencing.

Rather than fly a representative to the West Coast to check out the cell tower, the company invested less than $50 in a “Looker” from Oklahoma City-based WeGoLook.com to first visit the site and create a report.

Within two days, it had the answer it needed to avoid a costly mistake.

“For $49, WeGoLook dispatched a local Looker to the cell tower site.

The Looker took several photos and the customer was able to tell by the photos that out of 10 zoning requirements, the tower was only compliant with two,” said WeGoLook co-founder Robin Smith. “There’s no telling how much money we saved them in fines, and this information prompted them to perform additional due diligence.”

Founded by a group of Oklahomans who recognized the uncertainty faced by consumers of online sites such as eBay and Craigslist, WeGoLook began full operation in June 2010. Co-founder Mark Caywood conceived the idea of an online verification company after the unsettling experience of buying an expensive – and unseen – movie projector in an eBay auction.

“We sat down and started talking about it, started brainstorming, what could people do with this resource, this community of Lookers,” Smith said. “The idea began expanding to property owners with rental/ vacation property in other states who need to verify storm or tenant damage, business-to-business tasks, big-ticket items like automobiles, boats… even verification of online dates! The entire concept began lending itself to many items and situations where on-site verification was valuable.”

10

i&E

Winter 2011

I want people to know about this service, not only because it would make us successful, but because it would help a lot of people.

– Robin Smith

The three co-founders – Mark Caywood, Robin Smith and Mat Smith – began building a sophisticated software application that allows clients to go online and order a detailed report on any almost item, property or person within the United States/Puerto Rico.

The company has contracted with more than 7,400 “Lookers” nationwide (background check verified persons) who provide confidence to long-distance buyers, sellers and online dating partners by gathering on-site information along with photos/videos/measurements/etc. then upload the completed report to WeGoLook.com.

“Automobiles are our No. 1 requested report,” Smith said. “There are 2 million unique auto listings every single month online and we are constantly evolving to provide the best customer experience possible. Within the next few weeks, WeGoLook will be offering full inspections along with our verification reports as we integrate technology with our newest auto partner.”

WeGoLook has steadily built its presence by offering its platform to other sites, most recently with OLA.com (OnlineAuction.com) and world’s largest live online auction company, proxibid.com. Both partners feature buyers and sellers of heavy equipment, farm implements, livestock, real estate, autos, cycles, marine and more. The nationally known automotive site, cars.com, began beta testing with WeGoLook in early February. WeGoLook will also be presenting the platform to eBay Motors in San Jose soon.

After it was founded in late 2009, WeGoLook quickly reached out to i2E. The relationship through Executive Advisor Rick Rainey has benefited the company by providing business development structure, access to capital and even important networking contacts.

“From the very beginning, we have absolutely loved working with i2E,” Smith said “I can honestly tell you that being involved with i2E has been a great learning experience and helped us focus on the fundamentals of what we need to do.”

Of course, WeGoLook still faces big challenges in its quest to grow, including that of making the verification service nationally known to consumers.

“I want people to know about this service, not only because it would make us successful, but because it would help a lot of people,” Smith said. “How many people are getting scammed all the time and heartbroken by misrepresented online dates? Customers can avoid costly surprises, save travel costs and avoid becoming a victim of fraud or misrepresentation.”

For the global online consumer, property buyer and the lovelorn alike, WeGoLook has the answer. Send a “Looker” before you leap.

Robin Smith Co-Founder Year Started: 2010 Location: Oklahoma City Employees: 5

Product or technology: Technology that electronically accepts online orders from customers for verification of property, big-ticket items, people, etc. then directly pushes to more than 7,400 “Lookers,” who complete visual inspection and upload the report that is sent to customer.

Market: Global consumers and business customers of unseen items, property or online dates; the largest market to date is online automobile sales and auctions.

Future plans: The company plans to provide its verification platform to target partners such as proxibid.com and Cars.com; eventually, WeGoLook plans to expand its service to international markets such as Canada, Australia and Europe.

Funding: WeGoLook is self-funded, but recently was awarded $100,000 in proof-of-concept financing from i2E. WeGoLook is interested in opportunities with Angels experienced in taking online companies “to the next level”.

Successes:

Major

milestones

include

the

launch of its service in mid-2010, creating the online technology and website, recruiting more than 7,000 “Lookers” and establishing working partnerships with several major online sales and auction companies. www.wegolook.com

Winter 2011

i&E

11

WELCOME I

magine a place where innovative entrepreneurs gather to exchange ideas and receive expert advice to grow their ideas into thriving businesses.

Here’s what you might encounter as you exit the second floor elevator of Building 840 at the Presbyterian Health Foundation Research Park and enter a striking glass-enclosed Welcome Center: On your left is the state of the art Enterprise conference room where more than a dozen people are engaged in a meeting. In fact, they are entrepreneurs here to receive feedback on the viability of their invention. The presentation is being networked via video conference to our Tulsa office, where half a dozen other entrepreneurs and investors are visible to the Oklahoma City participants on a large LCD screen.

You pause outside the glass-enclosed walls of the Enterprise room for a few seconds to watch the passion evident in the entrepreneurs as they discuss their innovations.

Now your walk takes you through a doorway, where you see an open area with multiple worksta12

i&E

Winter 2011

tions that house two docked computers and ports for four additional personal laptops.

Several entrepreneurs seated there are involved in a conversation on market analysis while another entrepreneur works quietly refining his business model on his laptop. An MBA student, serving as an i2E business fellow, is researching historical data on venture capital investments.

Beyond the shared work space, three new offices line the south wall. In one of the offices, a Chief Financial Officer-in-Residence is consulting with yet another entrepreneur on the fine points of creating proper financial documents for a new business.

Next door, a Sales Executive-in-Residence is meeting with a company who is seeking the sales and marketing savvy that will lead to new customers for their innovative technology.

As you round the corner, you enter the relaxed atmosphere of the Coffee Bar, which is equipped with a comfortable lounge area and several café tables. The focal point is a big screen TV tuned to

CNBC’s Squawk Box. Look to your left and you see the Capital Room where an entrepreneur is having a one-on-one meeting with a potential angel investor.

Next you walk through the office work center and down another hall where you glimpse into “the fishbowl” team space where you see the marketing team planning an upcoming seminar.

You turn to your right and hear a meeting taking place in the Patent room, which displays plaques commemorating the inventions from past Oklahoma entrepreneurs. The room is being used by a committee that is assessing the latest applicants for proof of concept financing.

Look up, and you find your stroll has led you back to the Welcome Center.

This is just a typical day at i2E after the opening of its remodeled Oklahoma City office that expanded its presence in the Presbyterian Health Foundation Research Park to accommodate new services, new team members and more entrepreneurs.

Welcome to i2E in 2011 and its newly renovated entrepreneurial launch space, known as the Innovation Room, where entrepreneurs will have full access to the knowhow to propel their ideas from concept to market quicker, more efficiently and with a greater chance of success.

“The idea is to enhance our current services to include more expertise that will push entrepreneurs to break through the glass ceiling that often seem unbreakable to new businesses,” said Rex Smitherman, i2E’s Vice President for Operations.

The U.S. Economic Development Administration is playing a crucial role in the development of a new suite of services by i2E that are designed to help Oklahoma City area entrepreneurs grow their businesses faster and enjoy more success.

The EDA awarded i2E a $1 million grant in June 2010 to develop the new growth services for entrepreneurs. The grant was matched with funds from five local partners – the City of Oklahoma City, the Greater Oklahoma City Chamber, the Oklahoma Business Roundtable, the Oklahoma Medical Research Foundation and the Presbyterian Health Foundation.

The EDA was established in 1965 with a mission to lead the federal economic development agenda by promoting innovation and competitiveness, preparing American regions for growth and success in the worldwide economy. The EDA works in partnership with state and local governments, regional economic development districts, public and private nonprofit organizations and Indian tribes.

“The funding has allowed us to expand our angel investment network, increase our targeted and tactical support of entrepreneurs and continue to build Oklahoma’s entrepreneurial infrastructure from the inside out through the training and hiring of future entrepreneurs and investment professionals” said Tom Walker, i2E President and CEO.

Winter 2011

i&E

13

WELCOME I

magine a place where innovative entrepreneurs gather to exchange ideas and receive expert advice to grow their ideas into thriving businesses.

Here’s what you might encounter as you exit the second floor elevator of Building 840 at the Presbyterian Health Foundation Research Park and enter a striking glass-enclosed Welcome Center: On your left is the state of the art Enterprise conference room where more than a dozen people are engaged in a meeting. In fact, they are entrepreneurs here to receive feedback on the viability of their invention. The presentation is being networked via video conference to our Tulsa office, where half a dozen other entrepreneurs and investors are visible to the Oklahoma City participants on a large LCD screen.

You pause outside the glass-enclosed walls of the Enterprise room for a few seconds to watch the passion evident in the entrepreneurs as they discuss their innovations.

Now your walk takes you through a doorway, where you see an open area with multiple worksta12

i&E

Winter 2011

tions that house two docked computers and ports for four additional personal laptops.

Several entrepreneurs seated there are involved in a conversation on market analysis while another entrepreneur works quietly refining his business model on his laptop. An MBA student, serving as an i2E business fellow, is researching historical data on venture capital investments.

Beyond the shared work space, three new offices line the south wall. In one of the offices, a Chief Financial Officer-in-Residence is consulting with yet another entrepreneur on the fine points of creating proper financial documents for a new business.

Next door, a Sales Executive-in-Residence is meeting with a company who is seeking the sales and marketing savvy that will lead to new customers for their innovative technology.

As you round the corner, you enter the relaxed atmosphere of the Coffee Bar, which is equipped with a comfortable lounge area and several café tables. The focal point is a big screen TV tuned to

CNBC’s Squawk Box. Look to your left and you see the Capital Room where an entrepreneur is having a one-on-one meeting with a potential angel investor.

Next you walk through the office work center and down another hall where you glimpse into “the fishbowl” team space where you see the marketing team planning an upcoming seminar.

You turn to your right and hear a meeting taking place in the Patent room, which displays plaques commemorating the inventions from past Oklahoma entrepreneurs. The room is being used by a committee that is assessing the latest applicants for proof of concept financing.

Look up, and you find your stroll has led you back to the Welcome Center.

This is just a typical day at i2E after the opening of its remodeled Oklahoma City office that expanded its presence in the Presbyterian Health Foundation Research Park to accommodate new services, new team members and more entrepreneurs.

Welcome to i2E in 2011 and its newly renovated entrepreneurial launch space, known as the Innovation Room, where entrepreneurs will have full access to the knowhow to propel their ideas from concept to market quicker, more efficiently and with a greater chance of success.

“The idea is to enhance our current services to include more expertise that will push entrepreneurs to break through the glass ceiling that often seem unbreakable to new businesses,” said Rex Smitherman, i2E’s Vice President for Operations.

The U.S. Economic Development Administration is playing a crucial role in the development of a new suite of services by i2E that are designed to help Oklahoma City area entrepreneurs grow their businesses faster and enjoy more success.

The EDA awarded i2E a $1 million grant in June 2010 to develop the new growth services for entrepreneurs. The grant was matched with funds from five local partners – the City of Oklahoma City, the Greater Oklahoma City Chamber, the Oklahoma Business Roundtable, the Oklahoma Medical Research Foundation and the Presbyterian Health Foundation.

The EDA was established in 1965 with a mission to lead the federal economic development agenda by promoting innovation and competitiveness, preparing American regions for growth and success in the worldwide economy. The EDA works in partnership with state and local governments, regional economic development districts, public and private nonprofit organizations and Indian tribes.

“The funding has allowed us to expand our angel investment network, increase our targeted and tactical support of entrepreneurs and continue to build Oklahoma’s entrepreneurial infrastructure from the inside out through the training and hiring of future entrepreneurs and investment professionals” said Tom Walker, i2E President and CEO.

Winter 2011

i&E

13

From left, Bryan Fuller, Ph.D., founder, Jennifer Hinz and Becky Colt, all with DermaMedics; Lucas Rice, i2E Investments Fellow; Robin Smith, co-founder, WeGoLook.com; and Anthony Moorehead, i2E Business Fellow; share collaborative work space in i2E’s new Innovation Room.

The expansion and facelift complement i2E’s additional ecutives, investors and entrepreneurs to mentor our clients services provided to entrepreneurs in the wake of a $1 milwho may not have experience in sales, putting together filion grant from the federal Economic Development Adminnancial statements or developing a sound board of directors. istration and matching funds from “A lot of our clients are first-time five Oklahoma City partners – the entrepreneurs and have never built a City of Oklahoma City, the Greater sales pipeline or know little about the Oklahoma City Chamber, the Presbyfinancial aspects of a startup compaterian Health Foundation, the Oklany,” said Tom Walker, i2E’s President homa Medical Research Foundation and CEO. “These are entrepreneurs and the Oklahoma Business Roundwho have never really raised risk capitable. tal before.”

“Everything we do here is designed i2E’s Executive Advisors will conto increase the odds that a company tinue to assist entrepreneurs in the is going to be successful,” said Wayne same one-on-one way they always Embree, i2E’s Vice President for Enhave, but now they have the added extrepreneur Services. “We want to reperience to provide a full 360 degrees duce costs, reduce time to market and of business development services. increase the odds of success.”

“The philosophy on how we work Strategic visioning by i2E a couwith companies isn’t going to change, From left, Kenneth Knoll, i2E Concept Fund Manager; Blake Gudgel, Chief Operating Officer of Mintiva; and ple of years ago determined that but the resources we bring to the table Michael Kindrat-Pratt, Coordinator of the SeedStep Angels, work together in i2E’s new coffee bar. more services targeted at client are going to be significantly different,” companies in the very early stages of their existence could Walker said. “Our Executive Advisors are going to be able to really push them to great success sooner. connect their clients with the most knowledgeable people in the technology-based field.”

The process led to the idea of bringing in top notch ex14

i&E

Winter 2011

i2E Fellows The i2E Fellows program has also expanded to not only include the talent found through the annual Donald W. Reynolds Governor’s Cup business plan competition, but will name Fellows to work exclusively within the i2E Oklahoma City offices and will be placed in the technology transfer offices of some of the state’s premier research institutions such as the Oklahoma Medical Research Foundation.

In the i2E Fellows program, participants selected from Oklahoma colleges and universities will serve 8- to 10-week paid fellowships.

“We are targeting 10 client-hosted Fellows for the summer of 2011,” Smitherman said. “We’re going to have two Fellows who are going to be placed here at i2E. We want to expose these students not just to a product or a company, but to the idea of innovation and entrepreneurship and the commercialization activities that we engage in here at i2E.” “The Entrepreneurs-in-Residence will be people who come here who have very specialized expertise,” Embree said. “They will be here periodically to be able to provide a broader perspective on issues around capital, financial structure, management structure, boards of directors, sales and marketing and operations.

It’s hard to find the skills locally to help entrepreneurs because we don’t have the long history of technology entrepreneurs.

One way to solve that is to start training people within.

– Tom Walker

Executives-in-Residence i2E’s new Chief Financial Officer-in-Residence and Sales Executive-in-Residence will bring real world business savvy that entrepreneurs can put to work immediately. For example, the CFO-in-Residence will provide insight into the tactics of the financial operation inside an early stage company.

“Our CFO-in-Residence will help entrepreneurs understand how the finances have to be structured, how to build a financial model and how to incorporate that into the execution, the operating part of the business,” Embree said.

From left, Lance Lightner, founder, and Bill Towler, Sales and Marketing, both with Revolution Health Software, make a presentation to i2E’s Wayne Embree, Vice President for Entrepreneur Services, and Rick Rainey, Executive Advisor.

Winter 2011

i&E

15

From left, Bryan Fuller, Ph.D., founder, Jennifer Hinz and Becky Colt, all with DermaMedics; Lucas Rice, i2E Investments Fellow; Robin Smith, co-founder, WeGoLook.com; and Anthony Moorehead, i2E Business Fellow; share collaborative work space in i2E’s new Innovation Room.

The expansion and facelift complement i2E’s additional ecutives, investors and entrepreneurs to mentor our clients services provided to entrepreneurs in the wake of a $1 milwho may not have experience in sales, putting together filion grant from the federal Economic Development Adminnancial statements or developing a sound board of directors. istration and matching funds from “A lot of our clients are first-time five Oklahoma City partners – the entrepreneurs and have never built a City of Oklahoma City, the Greater sales pipeline or know little about the Oklahoma City Chamber, the Presbyfinancial aspects of a startup compaterian Health Foundation, the Oklany,” said Tom Walker, i2E’s President homa Medical Research Foundation and CEO. “These are entrepreneurs and the Oklahoma Business Roundwho have never really raised risk capitable. tal before.”

“Everything we do here is designed i2E’s Executive Advisors will conto increase the odds that a company tinue to assist entrepreneurs in the is going to be successful,” said Wayne same one-on-one way they always Embree, i2E’s Vice President for Enhave, but now they have the added extrepreneur Services. “We want to reperience to provide a full 360 degrees duce costs, reduce time to market and of business development services. increase the odds of success.”

“The philosophy on how we work Strategic visioning by i2E a couwith companies isn’t going to change, From left, Kenneth Knoll, i2E Concept Fund Manager; Blake Gudgel, Chief Operating Officer of Mintiva; and ple of years ago determined that but the resources we bring to the table Michael Kindrat-Pratt, Coordinator of the SeedStep Angels, work together in i2E’s new coffee bar. more services targeted at client are going to be significantly different,” companies in the very early stages of their existence could Walker said. “Our Executive Advisors are going to be able to really push them to great success sooner. connect their clients with the most knowledgeable people in the technology-based field.”

The process led to the idea of bringing in top notch ex14

i&E

Winter 2011

i2E Fellows The i2E Fellows program has also expanded to not only include the talent found through the annual Donald W. Reynolds Governor’s Cup business plan competition, but will name Fellows to work exclusively within the i2E Oklahoma City offices and will be placed in the technology transfer offices of some of the state’s premier research institutions such as the Oklahoma Medical Research Foundation.

In the i2E Fellows program, participants selected from Oklahoma colleges and universities will serve 8- to 10-week paid fellowships.

“We are targeting 10 client-hosted Fellows for the summer of 2011,” Smitherman said. “We’re going to have two Fellows who are going to be placed here at i2E. We want to expose these students not just to a product or a company, but to the idea of innovation and entrepreneurship and the commercialization activities that we engage in here at i2E.” “The Entrepreneurs-in-Residence will be people who come here who have very specialized expertise,” Embree said. “They will be here periodically to be able to provide a broader perspective on issues around capital, financial structure, management structure, boards of directors, sales and marketing and operations.

It’s hard to find the skills locally to help entrepreneurs because we don’t have the long history of technology entrepreneurs.

One way to solve that is to start training people within.

– Tom Walker

Executives-in-Residence i2E’s new Chief Financial Officer-in-Residence and Sales Executive-in-Residence will bring real world business savvy that entrepreneurs can put to work immediately. For example, the CFO-in-Residence will provide insight into the tactics of the financial operation inside an early stage company.

“Our CFO-in-Residence will help entrepreneurs understand how the finances have to be structured, how to build a financial model and how to incorporate that into the execution, the operating part of the business,” Embree said.

From left, Lance Lightner, founder, and Bill Towler, Sales and Marketing, both with Revolution Health Software, make a presentation to i2E’s Wayne Embree, Vice President for Entrepreneur Services, and Rick Rainey, Executive Advisor.

Winter 2011

i&E

15

ENTREPRENEURS-IN-RESIDENCE i2E drew on our national contacts to engage individuals with specific entrepreneurial expertise to come to Oklahoma on a regular basis and share their knowledge and experience through customized and flexible programs of seminars, one-on-one mentoring, blogs and networking.

Bill Payne: An internationally recognized entrepreneur, angel investor, former Entrepreneur-in-Residence for the Kauffman Foundation and author of The Definitive Guide to Raising Angel Capital. He assisted in founding four angel groups and has successfully founded or invested in over 50 start-up companies. He has been actively engaged in the formation of the Angel Capital Education Foundation and the Angel Capital Association. Bill was awarded the prestigious 2009 Hans Severiens Memorial Award for Outstanding Contribution to Angel Investing.

Bill Botts: Brings more than 48 years of management experience as President, CEO or chairman of the Board for more than 15 public and private companies. His major focus has been in the high tech arena where he has been a serial investor in a variety of earlystage companies and active with companies requiring turnaround help.

Tom Churchwell: A prominent player in the Midwest venture capital community with more than 20 years of experience working with startup technology-based companies, and an additional 20 years of experience in operations in large corporations. Tom has played an active role in more than 60 seed- and early-stage investments with a top-tier track record.

Jack Anthony: Has more than 35 years of Medical Device and Biotechnology leadership experience including sales and executive positions with Baxter Healthcare, Applied Immune Sciences, Inhale Therapeutics, FibroGen, Tularik, Saegis Pharmaceuticals and Pharmix Corporation.

16

i&E

Winter 2011

i2E’s Executives-in-Residence will be available to work one-onone with entrepreneurs on a daily basis for weeks at a time to provide them the tools needed to build the operational structure of their business.

For sales and marketing savvy, i2E has turned to the sales organization, Initial Call, which will provide professionals who will maintain regular office hours in the new entrepreneurial launch space. Entrepreneurs will learn about the sales process – how to contact potential customers and follow up on sales leads.

“They will help companies characterize what their sales process and sales approach need to be and help create that process,” Embree said. “At the same time they will help us understand what some of these early stage companies really need in sales and marketing.”

Oklahoma has a thriving entrepreneur support infrastructure that does not exist in many regions.

My message for entrepreneurs in Oklahoma is that they should understand the capital food chain in their region and build companies that are fundable by investors keeping in mind a national angel and venture capital market persepctive.

– Bill Payne, i2E’s lead Entrepreneur-in-Residence

Access to Capital Oklahoma entrepreneurs still have multiple stage funding through i2E’s Proof-of-Concept Fund, the Oklahoma Seed Capital Fund and the SeedStep Angels, but with a big difference. New managers and coordinators have been named to lead the investment vehicles to help prepare entrepreneurs for funding and increase the size and potential of the angel group.

The focus will be to offer more networking and best practices opportunities to provide an avenue for entrepreneurs to easily identify mentors and sources of capital.

Future Growth i2E already is in the planning stages of securing funding to launch a similar expansion of services in Tulsa within the next two years.

It also recently launched a redesigned website that highlights its business and advisory, access to capital and entrepreneurial development services with colorful, easy-to-navigate pages. The site features client videos, blogs by the i2E team and guest bloggers, and links to the i2E Twitter page and the Governor’s Cup Facebook page. The website theme is carried through in i2E’s monthly Tech-E-News that updates stakeholders on all the latest news, blogs and video interviews with clients.

THE FAB 5 The expansion of i2E’s services for Oklahoma City area entrepreneurs has been accomplished because of the support of five local private and public entities that believe in our mission. All contributed to matching funds for the $1 million grant from the federal Economic Development Administration. We asked representatives from each of our Fab Five to talk about why they supported i2E’s new growth services. Here are their answers.

CITY OF OKLAHOMA CITY Through its collaborations with organizations like the Greater Oklahoma City Chamber and i2E, the City of Oklahoma City has taken a responsive and innovative approach to economic, community and policy development. City officials have been pleased with early progress reports on i2E’s Technology Launch Program, and anticipate long-term benefits to Oklahoma City and the business community from this partnership.

“Through the years we have supported i2E’s critical mission of promoting home grown economic development in Oklahoma through the Governor’s Cup and other initiatives. We see more positives and additional wealth creation for the state through the launch of i2E’s new growth services, which made supporting these services an easy decision.”

– Blake Wade, President

“Our partnership with i2E is a great example of when the sum of the combined effort surpasses the sum of the individual parts. Our alliance with i2E allows both organizations to do what each does best, while taking ideas and best practices from each other that are applied to the greater good. Our support of i2E’s Technology Launch Program is an important piece of the city’s economic development puzzle.”

– Cathy O’Connor, Assistant City Manager

OKLAHOMA MEDICAL RESEARCH FOUNDATION Since the Oklahoma Medical Research Foundation was born in 1946, it has been dedicated to understanding and developing more effective treatments for human disease.

Today, OMRF scientists focus on such critical research areas as heart disease, cancer, lupus and Alzheimer’s disease.

With more than 600 U.S. and international patents, OMRF ranks among the nation’s leaders in patents per scientist.

Breakthroughs in OMRF labs have led to three FDA-approved drugs, including the first for a deadly blood infection that claims 200,000 American lives each year.

GREATER OKLAHOMA CITY CHAMBER The Greater Oklahoma City Chamber is the voice of Business and the visionary organization in Oklahoma City. The organization’s goals are to create a business climate that attracts new businesses and enhances growth and expansion opportunities for existing businesses; create a community with an irresistible quality of life; and create valueadded membership opportunities and benefits.

“The Greater Oklahoma City Chamber has had a very productive and fruitful partnership with i2E for more than a decade now. We have been proud to work with i2E on a number of entrepreneurial development initiatives. When i2E approached us about expanding their efforts through their new Technology Launch Program, we jumped at the chance to participate. And we feel like the best is yet to come.”

– Roy Williams, President and CEO

OKLAHOMA BUSINESS ROUNDTABLE The Oklahoma Business Roundtable serves as the state’s major economic development support organization. With membership comprising more than 110 top Oklahoma corporations and business organizations, the Roundtable provides important business development advice and assistance to the Governor, the Oklahoma Department of Commerce and other state leaders. The Roundtable spurs the expansion and recruitment of new business in Oklahoma the members also play a key role in contacting and hosting both domestic and international clients.

“The central facet of OMRF’s mission has always been translating our work into therapeutics that make a difference in people’s lives. And that’s where i2E comes in. By partnering with i2E, we can grow the biotechnology companies that deliver life-changing discoveries to patients.”

– Stephen Prescott, M.D., President

PRESBYTERIAN HEALTH FOUNDATION The Presbyterian Health Foundation was founded in 1996 to support medical research and the commercialization of new therapeutics and innovative diagnostics that save and enhance human life. In the ensuing years, the Park has grown rapidly. It is now the home for 55 tenants in seven buildings with 675,000 square feet of Class A wet lab and office space. “i2E has been a tenant in the Research Park for a full decade now, and we’ve seen first-hand the impact its business development professionals have on new tech-based companies.

In fact, many of them are also located here in the Park and have flourished in part because of the expertise and access-tocapital services i2E provides. We are proud to support its new growth services and expanded space here in the Park.”

– Carl Edwards, Chairman

Winter 2011

i&E

17

ENTREPRENEURS-IN-RESIDENCE i2E drew on our national contacts to engage individuals with specific entrepreneurial expertise to come to Oklahoma on a regular basis and share their knowledge and experience through customized and flexible programs of seminars, one-on-one mentoring, blogs and networking.

Bill Payne: An internationally recognized entrepreneur, angel investor, former Entrepreneur-in-Residence for the Kauffman Foundation and author of The Definitive Guide to Raising Angel Capital. He assisted in founding four angel groups and has successfully founded or invested in over 50 start-up companies. He has been actively engaged in the formation of the Angel Capital Education Foundation and the Angel Capital Association. Bill was awarded the prestigious 2009 Hans Severiens Memorial Award for Outstanding Contribution to Angel Investing.

Bill Botts: Brings more than 48 years of management experience as President, CEO or chairman of the Board for more than 15 public and private companies. His major focus has been in the high tech arena where he has been a serial investor in a variety of earlystage companies and active with companies requiring turnaround help.

Tom Churchwell: A prominent player in the Midwest venture capital community with more than 20 years of experience working with startup technology-based companies, and an additional 20 years of experience in operations in large corporations. Tom has played an active role in more than 60 seed- and early-stage investments with a top-tier track record.

Jack Anthony: Has more than 35 years of Medical Device and Biotechnology leadership experience including sales and executive positions with Baxter Healthcare, Applied Immune Sciences, Inhale Therapeutics, FibroGen, Tularik, Saegis Pharmaceuticals and Pharmix Corporation.

16

i&E

Winter 2011

i2E’s Executives-in-Residence will be available to work one-onone with entrepreneurs on a daily basis for weeks at a time to provide them the tools needed to build the operational structure of their business.

For sales and marketing savvy, i2E has turned to the sales organization, Initial Call, which will provide professionals who will maintain regular office hours in the new entrepreneurial launch space. Entrepreneurs will learn about the sales process – how to contact potential customers and follow up on sales leads.

“They will help companies characterize what their sales process and sales approach need to be and help create that process,” Embree said. “At the same time they will help us understand what some of these early stage companies really need in sales and marketing.”

Oklahoma has a thriving entrepreneur support infrastructure that does not exist in many regions.

My message for entrepreneurs in Oklahoma is that they should understand the capital food chain in their region and build companies that are fundable by investors keeping in mind a national angel and venture capital market persepctive.

– Bill Payne, i2E’s lead Entrepreneur-in-Residence

Access to Capital Oklahoma entrepreneurs still have multiple stage funding through i2E’s Proof-of-Concept Fund, the Oklahoma Seed Capital Fund and the SeedStep Angels, but with a big difference. New managers and coordinators have been named to lead the investment vehicles to help prepare entrepreneurs for funding and increase the size and potential of the angel group.

The focus will be to offer more networking and best practices opportunities to provide an avenue for entrepreneurs to easily identify mentors and sources of capital.

Future Growth i2E already is in the planning stages of securing funding to launch a similar expansion of services in Tulsa within the next two years.

It also recently launched a redesigned website that highlights its business and advisory, access to capital and entrepreneurial development services with colorful, easy-to-navigate pages. The site features client videos, blogs by the i2E team and guest bloggers, and links to the i2E Twitter page and the Governor’s Cup Facebook page. The website theme is carried through in i2E’s monthly Tech-E-News that updates stakeholders on all the latest news, blogs and video interviews with clients.

THE FAB 5 The expansion of i2E’s services for Oklahoma City area entrepreneurs has been accomplished because of the support of five local private and public entities that believe in our mission. All contributed to matching funds for the $1 million grant from the federal Economic Development Administration. We asked representatives from each of our Fab Five to talk about why they supported i2E’s new growth services. Here are their answers.

CITY OF OKLAHOMA CITY Through its collaborations with organizations like the Greater Oklahoma City Chamber and i2E, the City of Oklahoma City has taken a responsive and innovative approach to economic, community and policy development. City officials have been pleased with early progress reports on i2E’s Technology Launch Program, and anticipate long-term benefits to Oklahoma City and the business community from this partnership.

“Through the years we have supported i2E’s critical mission of promoting home grown economic development in Oklahoma through the Governor’s Cup and other initiatives. We see more positives and additional wealth creation for the state through the launch of i2E’s new growth services, which made supporting these services an easy decision.”

– Blake Wade, President

“Our partnership with i2E is a great example of when the sum of the combined effort surpasses the sum of the individual parts. Our alliance with i2E allows both organizations to do what each does best, while taking ideas and best practices from each other that are applied to the greater good. Our support of i2E’s Technology Launch Program is an important piece of the city’s economic development puzzle.”

– Cathy O’Connor, Assistant City Manager

OKLAHOMA MEDICAL RESEARCH FOUNDATION Since the Oklahoma Medical Research Foundation was born in 1946, it has been dedicated to understanding and developing more effective treatments for human disease.

Today, OMRF scientists focus on such critical research areas as heart disease, cancer, lupus and Alzheimer’s disease.

With more than 600 U.S. and international patents, OMRF ranks among the nation’s leaders in patents per scientist.

Breakthroughs in OMRF labs have led to three FDA-approved drugs, including the first for a deadly blood infection that claims 200,000 American lives each year.

GREATER OKLAHOMA CITY CHAMBER The Greater Oklahoma City Chamber is the voice of Business and the visionary organization in Oklahoma City. The organization’s goals are to create a business climate that attracts new businesses and enhances growth and expansion opportunities for existing businesses; create a community with an irresistible quality of life; and create valueadded membership opportunities and benefits.

“The Greater Oklahoma City Chamber has had a very productive and fruitful partnership with i2E for more than a decade now. We have been proud to work with i2E on a number of entrepreneurial development initiatives. When i2E approached us about expanding their efforts through their new Technology Launch Program, we jumped at the chance to participate. And we feel like the best is yet to come.”

– Roy Williams, President and CEO

OKLAHOMA BUSINESS ROUNDTABLE The Oklahoma Business Roundtable serves as the state’s major economic development support organization. With membership comprising more than 110 top Oklahoma corporations and business organizations, the Roundtable provides important business development advice and assistance to the Governor, the Oklahoma Department of Commerce and other state leaders. The Roundtable spurs the expansion and recruitment of new business in Oklahoma the members also play a key role in contacting and hosting both domestic and international clients.

“The central facet of OMRF’s mission has always been translating our work into therapeutics that make a difference in people’s lives. And that’s where i2E comes in. By partnering with i2E, we can grow the biotechnology companies that deliver life-changing discoveries to patients.”

– Stephen Prescott, M.D., President

PRESBYTERIAN HEALTH FOUNDATION The Presbyterian Health Foundation was founded in 1996 to support medical research and the commercialization of new therapeutics and innovative diagnostics that save and enhance human life. In the ensuing years, the Park has grown rapidly. It is now the home for 55 tenants in seven buildings with 675,000 square feet of Class A wet lab and office space. “i2E has been a tenant in the Research Park for a full decade now, and we’ve seen first-hand the impact its business development professionals have on new tech-based companies.

In fact, many of them are also located here in the Park and have flourished in part because of the expertise and access-tocapital services i2E provides. We are proud to support its new growth services and expanded space here in the Park.”

– Carl Edwards, Chairman

Winter 2011

i&E

17

www.i2E.org CATEGORIES

HOME > ARCHIVE BY CATEGORY ‘BLOG’

Capital Entrepreneurs Innovators

Blog

TAGS

ACA ACEF Amethyst Research Inc.

angel investing

angel investors

becky-mccray

Bill Payne

Blake Gudgel Blood banks business plan business survival capital capital formation David Albert economic rankings elevator pitch entrepreneur

entrepreneurs FDA friends-and-family handbook

innovation Innovation Daily investment capital investment opportunity investment portfolio iPhoneECG

Kauffman Foundation

oklahoma

Mintiva particle accelerator risk capital rural SBIR Scott Rollins SeedStep Angels Selexys Pharmaceuticals sigmablood-systems Steve Zabel The Entrepreneur's Path The Pitch The Tug

Walker

Tom

Tom Walkers

Raising Capital venture capital venture capitalists Weather Decision Technologies

top 10 state Trends in

Editor’s Note: With the debut of i2E’s blog, Oklahoma entrepreneurs now have a place to go for lively discussion of issues surrounding the challenge of building a high growth business.

The following is a sampler from the first two months.

A top 10 State for Business

The Agency is at it again

Posted by Tom Walker

Posted by Rick Rainey

The Center for Biologics Evaluation and Research (CBER)

In a recent consultants “flash” survey, by Area Development magazine, Oklahoma was named one of the top 10 states for doing business.

I was really happy to see Oklahoma score; however, I would have been happier if we had been in the top three instead of tenth.

I don’t know about you, but I tend to compare our entrepreneurial progress with our neighboring states — especially the one to the south.

This entry was tagged Oklahoma, Tom Walker, top 10 state.

division of the Food and Drug Administration (FDA) is cracking down on blood banking operations. Again.

In 2008, the Agency issued a Consent Decree to the American Red Cross for, among other infractions, failure to review all records pertinent to a lot or unit before the release or distribution of a lot or unit of final product.

What that means is that, according to the FDA, the American Red Cross did a poor job of managing records related to blood donations that were processed and then sent to recipients.

This entry was tagged Blood banks, FDA, sigma-blood-systems.

Welcome to My Blog Posted by Tom Walker

i2E recently launched our new website. For years, www.i2E.org has been an important tool for us to deliver information to our clients, business partners, the Oklahoma business community, and public partners and officials.

Our new site is designed to be much more interactive.

For the last year, I’ve been contributing a weekly column to The Oklahoman called “Innovation & Entrepreneurs.” With a subject area as broad and vibrant as entrepreneurship and the innovation economy, it’s never difficult to find something to write about. The challenge is narrowing the topics down.

That’s just one of the reasons that I’m extremely excited to have this opportunity to blog. I have a lot to blog about.

This entry was tagged entrepreneurs, innovation, Tom Walker.

Humor in a particle accelerator Posted by Jim Stafford

When I first stepped into the infrared materials laboratory at Ardmore’s Amethyst Research Inc. back in August, the sight of a massive particle accelerator sitting on one side of the room conjured up an image that made me smile.

Yes, the particle accelerator made me instantly recall Rick Moranis and his wacky dad/scientist character from the 1989 Disney movie, “Honey, I Shrunk the Kids.”

The children in the movie household were accidently reduced by Moranis’ machine to the size of ants and almost consumed by their father in a bowl of Cheerios.

This entry was tagged Amethyst Research Inc., particle accelerator.

Innovation not sole measure of success Posted by Rick Rainey

Ever hear of a guy named Wallace Broeckner? Wallace is at the forefront of the Global Climate Change debate, having authored more than 450 journal articles and 10 books on the subject. After discovering the role oceans play in abrupt climate changes, he popularized the term ‘Global Conveyer Belt’.

His latest idea is to plant “millions of massive trees” that can filter carbon dioxide around the globe. Theoretically, this would remove the threat of a global climate change. The price-tag for this endeavor? A meager $600 billion a year.

Great in theory, bad in practice. It applies to innovators and entrepreneurs, too.

This entry was tagged capital, entrepreneurs, innovation.

And the winner is … The Tug Posted by Jim Stafford

I bolted upright from my prone position on the couch Thanksgiving night while watching the Texas-Texas A&M football telecast. There on the screen were two men in a weight room wrestling over a large, red plastic cylinder.

The object they were trying to wrest from each other was The Tug, which was created by an i2E client, Competitive Action Sports. The Tug’s inventor and founder of the company is Steve Zabel, a former University of Oklahoma and NFL star who sought i2E’s assistance in developing his company.

This entry was tagged Steve Zabel, The Tug.

The Art of the Pitch Posted by Richard Gajan

The Pitch is the presentation you prepare to “pitch” your idea to either angel investors or to venture capitalists.

In a series of blog posts, we will discuss the purpose of the presentation, the outline/format, do’s and don’ts, formalities, and expectations. We will dedicate each post to one individual aspect of the presentation.

Begin with the “why?” Why are we making this Pitch? The goal: get the investor interested in the business opportunity!

This entry was tagged angel investors, investment opportunity, The Pitch, venture capitalists.

The Viral Effect of YouTube Video Posted by Jim Stafford

Among the many hats that Dr. David Albert wears – physician, inventor, entrepreneur – add “YouTube” video sensation to the list.

The founder of Oklahoma City-based Lifetone Technology, Dr. Albert created a device that turns the ubiquitous iPhone into a mobile electrocardiogram. He showcased his iPhoneECG at the recent Consumer Electronics Show in Las Vegas.

Dr. Albert ensured that his device would draw plenty of attention in Vegas by posting a video to YouTube of the iPhoneECG in action.

This entry was tagged David Albert, iPhoneECG.

18

i&E

Winter 2011

Winter 2011

i&E

19

www.i2E.org CATEGORIES

HOME > ARCHIVE BY CATEGORY ‘BLOG’

Capital Entrepreneurs Innovators

Blog

TAGS

ACA ACEF Amethyst Research Inc.

angel investing

angel investors

becky-mccray

Bill Payne

Blake Gudgel Blood banks business plan business survival capital capital formation David Albert economic rankings elevator pitch entrepreneur

entrepreneurs FDA friends-and-family handbook

innovation Innovation Daily investment capital investment opportunity investment portfolio iPhoneECG

Kauffman Foundation

oklahoma

Mintiva particle accelerator risk capital rural SBIR Scott Rollins SeedStep Angels Selexys Pharmaceuticals sigmablood-systems Steve Zabel The Entrepreneur's Path The Pitch The Tug

Walker

Tom

Tom Walkers

Raising Capital venture capital venture capitalists Weather Decision Technologies

top 10 state Trends in

Editor’s Note: With the debut of i2E’s blog, Oklahoma entrepreneurs now have a place to go for lively discussion of issues surrounding the challenge of building a high growth business.

The following is a sampler from the first two months.

A top 10 State for Business

The Agency is at it again

Posted by Tom Walker

Posted by Rick Rainey

The Center for Biologics Evaluation and Research (CBER)

In a recent consultants “flash” survey, by Area Development magazine, Oklahoma was named one of the top 10 states for doing business.

I was really happy to see Oklahoma score; however, I would have been happier if we had been in the top three instead of tenth.

I don’t know about you, but I tend to compare our entrepreneurial progress with our neighboring states — especially the one to the south.

This entry was tagged Oklahoma, Tom Walker, top 10 state.

division of the Food and Drug Administration (FDA) is cracking down on blood banking operations. Again.

In 2008, the Agency issued a Consent Decree to the American Red Cross for, among other infractions, failure to review all records pertinent to a lot or unit before the release or distribution of a lot or unit of final product.

What that means is that, according to the FDA, the American Red Cross did a poor job of managing records related to blood donations that were processed and then sent to recipients.

This entry was tagged Blood banks, FDA, sigma-blood-systems.

Welcome to My Blog Posted by Tom Walker

i2E recently launched our new website. For years, www.i2E.org has been an important tool for us to deliver information to our clients, business partners, the Oklahoma business community, and public partners and officials.

Our new site is designed to be much more interactive.

For the last year, I’ve been contributing a weekly column to The Oklahoman called “Innovation & Entrepreneurs.” With a subject area as broad and vibrant as entrepreneurship and the innovation economy, it’s never difficult to find something to write about. The challenge is narrowing the topics down.

That’s just one of the reasons that I’m extremely excited to have this opportunity to blog. I have a lot to blog about.

This entry was tagged entrepreneurs, innovation, Tom Walker.

Humor in a particle accelerator Posted by Jim Stafford

When I first stepped into the infrared materials laboratory at Ardmore’s Amethyst Research Inc. back in August, the sight of a massive particle accelerator sitting on one side of the room conjured up an image that made me smile.

Yes, the particle accelerator made me instantly recall Rick Moranis and his wacky dad/scientist character from the 1989 Disney movie, “Honey, I Shrunk the Kids.”

The children in the movie household were accidently reduced by Moranis’ machine to the size of ants and almost consumed by their father in a bowl of Cheerios.

This entry was tagged Amethyst Research Inc., particle accelerator.

Innovation not sole measure of success Posted by Rick Rainey

Ever hear of a guy named Wallace Broeckner? Wallace is at the forefront of the Global Climate Change debate, having authored more than 450 journal articles and 10 books on the subject. After discovering the role oceans play in abrupt climate changes, he popularized the term ‘Global Conveyer Belt’.

His latest idea is to plant “millions of massive trees” that can filter carbon dioxide around the globe. Theoretically, this would remove the threat of a global climate change. The price-tag for this endeavor? A meager $600 billion a year.

Great in theory, bad in practice. It applies to innovators and entrepreneurs, too.

This entry was tagged capital, entrepreneurs, innovation.

And the winner is … The Tug Posted by Jim Stafford

I bolted upright from my prone position on the couch Thanksgiving night while watching the Texas-Texas A&M football telecast. There on the screen were two men in a weight room wrestling over a large, red plastic cylinder.

The object they were trying to wrest from each other was The Tug, which was created by an i2E client, Competitive Action Sports. The Tug’s inventor and founder of the company is Steve Zabel, a former University of Oklahoma and NFL star who sought i2E’s assistance in developing his company.

This entry was tagged Steve Zabel, The Tug.

The Art of the Pitch Posted by Richard Gajan

The Pitch is the presentation you prepare to “pitch” your idea to either angel investors or to venture capitalists.

In a series of blog posts, we will discuss the purpose of the presentation, the outline/format, do’s and don’ts, formalities, and expectations. We will dedicate each post to one individual aspect of the presentation.

Begin with the “why?” Why are we making this Pitch? The goal: get the investor interested in the business opportunity!

This entry was tagged angel investors, investment opportunity, The Pitch, venture capitalists.

The Viral Effect of YouTube Video Posted by Jim Stafford

Among the many hats that Dr. David Albert wears – physician, inventor, entrepreneur – add “YouTube” video sensation to the list.

The founder of Oklahoma City-based Lifetone Technology, Dr. Albert created a device that turns the ubiquitous iPhone into a mobile electrocardiogram. He showcased his iPhoneECG at the recent Consumer Electronics Show in Las Vegas.

Dr. Albert ensured that his device would draw plenty of attention in Vegas by posting a video to YouTube of the iPhoneECG in action.

This entry was tagged David Albert, iPhoneECG.

18

i&E

Winter 2011

Winter 2011

i&E

19

Tulsa SeedStep Angels Kickoff Meeting

Who are these Angel Investors?

What do Angels seek in Fundable Deals?

Trends in Raising Capital

Posted by Tom Walker

Posted by Bill Payne

Posted by Bill Payne

Posted by Tom Walker

Wealthy investors have been providing funding and advice to new entrepreneurs for thousands of years. In 1983, Professor Bill Wetzel at the University of New Hampshire recognized the analogy between “Broadway angels” – those who funded new plays in New York City – and “business angels” – those who fund and bring business savvy to new business ventures; hence the term “angel investors” (or business angels in some regions of the world).

Angel investors are wealthy businessmen and entrepreneurs who have the time and inclination to invest in and mentor startup entrepreneurs.

The two most important attributes of a fundable deal for angels are the quality of the entrepreneur and management team, and the scalability of the venture.

We would love to invest in entrepreneurs with prior CEO experience, but angels are most often approached by firsttime entrepreneurs. So, what are the key differentiators for investors?

We had the kickoff meeting of the Tulsa Chapter of SeedStep Angels at the historic Harwelden Mansion. With its leaded glass, carved limestone, and gargoyle-protected slate roof, this historic location was a perfect venue for a terrific event. Participants demonstrated that strong interest in forming an active angel group in Tulsa is alive and well.

Sixteen high quality angel investors came together for the event. We gave the Oklahoma perspective on the opportunity in the Tulsa region for angel investors.

This entry was tagged ACA, ACEF, angel investing, SeedStep Angels, Tom Walker.

This entry was tagged angel investors, entrepreneurs, Bill Payne.

This entry was tagged angel investors, entrepreneurs, Bill Payne.

EinR in full swing Angels: An Entrepreneur’s Best Friend

Posted by Tom Walker

Angel investors can be an entrepreneur’s best friend. For

starters, they invest in 97 percent of our country’s startup and early stage deals.

But angel investors contribute much more than money.

Many angels are cashed-out entrepreneurs. They understand first-hand the discipline and drive that it takes to turn a great idea into a commercial success. They probably also understand what it’s like to fail and bounce back.

This entry was tagged angel investors, Kauffman Foundation, Tom Walker.

Angel Investor Portfolio Strategy Posted by Bill Payne

Posted by Tom Walker

Every entrepreneur I have ever met was convinced that his or her product and business plan was a grand slam home run. Sadly, only a small fraction of angel-funded entrepreneurs are successful.

In fact, less than 10 percent of entrepreneurs produce virtually all the upside returns in an angel investor’s portfolio.

When approaching angel investors, it is important for entrepreneurs to appreciate the skewed returns of this asset class to better understand the angels’ criteria for investment.

Monday evening we kicked off our Entrepreneur-in-Residence series. We invited 10 Oklahoma entrepreneurs who are currently engaged in the heavy lifting of raising risk capital to meet with Bill Payne, a seasoned entrepreneur and expert in angel investing who is also i2E’s lead Entrepreneur-in-Residence.

What, you might ask, exactly is an entrepreneur-inresidence? i2E’s entrepreneurs-in-residence are nationally recognized experts in entrepreneurship who bring proven teaching, coaching and mentoring skills to our state. Among entrepreneurs-in-residence, Bill Payne is a super star.

This entry was tagged angel investors, Bill Payne, entrepreneurs, investment portfolio.

This entry was tagged angel investing, Bill Payne, entrepreneurs, risk capital, Tom Walker.

20

Business Plans: Why Write Them?

Posted by Bill Payne

Posted by Tom Walker

This entry was tagged angel investors, Bill Payne, capital formation, entrepreneurs.

This entry was tagged Bill Payne, business plan, elevator pitch, entrepreneurs.

i&E

Winter 2011

Shaping Serendipity Posted by Blake Gudgel

i2E has long been a valuable information node for Oklahoma entrepreneurs. With new programs like the recent Trends in Raising Capital workshop, i2E is expanding both information and relational access for those navigating the winding roads of starting a new business. Compliments of i2E, Bill Payne, one of the country’s preeminent experts on angel investment, braved the snow to share the latest trends in raising capital and work directly with a few of Oklahoma’s entrepreneurs.

This was the first of many programs where i2E will bring in leading experts to provide a real-time pulse on emerging trends and practices central to starting and growing new companies.

Angels Provide Majority of Startup Funding

As entrepreneurs think about starting a business, they use their own Personal Resources to convert ideas and innovations into product and service concepts The most obvious of these include savings, personal computers and home offices. Entrepreneurs also use home equity as collateral for loans and personal credit cards to provide the cash necessary to start their companies. Using a spouse’s or partner’s income for living expenses while starting a company is also common. Extending these personal resources as long as possible before looking for outside sources of capital is called “bootstrapping.”

Entrepreneurs bootstrap their companies until their personal resources are tapped out for two distinct reasons: Outside investors want to make sure entrepreneurs are fully committed to the new venture before providing more funding to startups. After all, if you are not fully committed, why should others help?

This entry was tagged entrepreneurs, angel investing, Tom Walker, venture capital.

This entry was tagged Bill Payne, Blake Gudgel, Mintiva, Trends in Raising Capital.

Capital Sources for Entrepreneurs Posted by Bill Payne

Earlier this week, we launched the Trends in Raising Capital seminar in partnership with the Angel Capital Education Foundation (ACEF). The session was delivered by i2E’s lead Entrepreneur-in-Residence, Bill Payne.

About 10 years ago, the world began changing as it relates entrepreneurs raising risk capital. The dot.com bust started the dominos falling for the VC industry. Our recent economic crisis only speeded that up.

I have often heard investors state that they do not read business plans, implying that entrepreneurs need not write them. I disagree. Entrepreneurs need to write business plans for two reasons:

Most entrepreneurs are totally focused on their products and technology and have given little thought to the other critically important aspects of their potential businesses. Writing a business plan is a great discipline, forcing company founders to detail all facets of their business, including their competitive advantage, sales and marketing plan, financial plans, capital plans and preparations for building a quality management team.

Regardless of the opinion of some, most of us investors read business plans.

In 2009, angels and venture capitalists invested about the same total dollars, approximately $17.6 billion.

The difference between these two important sources of capital is that more than 80 percent of angels’ money went to firms in the seed/startup and early stages. Nearly 65 percent of VC investments were made in expansion and later stage companies. Less than 10 percent of VC dollars were invested in seed/startup deals.

This entry was tagged ACA, angel investing, Tom Walker, venture capital.

A handbook for high-growth firms Posted by Tom Walker

Of the hundreds of entrepreneurs that we’ve worked with over the years, the most successful ones all had at least one thing in common: They followed a path marked by milestones from their good ideas to the creation of a profitable company that produced new jobs, terrific returns for investors and financial reward and self-satisfaction for the entrepreneur.

About a year ago, we decided to corral i2E’s 10-plus years of experience with innovators and entrepreneurs. The result is The Entrepreneur’s Path: A Handbook for HighGrowth Companies.

The entry was tagged Tom Walker, The Entrepreneur’s Path, handbook

Winter 2011

i&E

21

Tulsa SeedStep Angels Kickoff Meeting

Who are these Angel Investors?

What do Angels seek in Fundable Deals?

Trends in Raising Capital

Posted by Tom Walker

Posted by Bill Payne

Posted by Bill Payne

Posted by Tom Walker

Wealthy investors have been providing funding and advice to new entrepreneurs for thousands of years. In 1983, Professor Bill Wetzel at the University of New Hampshire recognized the analogy between “Broadway angels” – those who funded new plays in New York City – and “business angels” – those who fund and bring business savvy to new business ventures; hence the term “angel investors” (or business angels in some regions of the world).

Angel investors are wealthy businessmen and entrepreneurs who have the time and inclination to invest in and mentor startup entrepreneurs.

The two most important attributes of a fundable deal for angels are the quality of the entrepreneur and management team, and the scalability of the venture.

We would love to invest in entrepreneurs with prior CEO experience, but angels are most often approached by firsttime entrepreneurs. So, what are the key differentiators for investors?

We had the kickoff meeting of the Tulsa Chapter of SeedStep Angels at the historic Harwelden Mansion. With its leaded glass, carved limestone, and gargoyle-protected slate roof, this historic location was a perfect venue for a terrific event. Participants demonstrated that strong interest in forming an active angel group in Tulsa is alive and well.

Sixteen high quality angel investors came together for the event. We gave the Oklahoma perspective on the opportunity in the Tulsa region for angel investors.

This entry was tagged ACA, ACEF, angel investing, SeedStep Angels, Tom Walker.

This entry was tagged angel investors, entrepreneurs, Bill Payne.

This entry was tagged angel investors, entrepreneurs, Bill Payne.

EinR in full swing Angels: An Entrepreneur’s Best Friend

Posted by Tom Walker

Angel investors can be an entrepreneur’s best friend. For

starters, they invest in 97 percent of our country’s startup and early stage deals.

But angel investors contribute much more than money.

Many angels are cashed-out entrepreneurs. They understand first-hand the discipline and drive that it takes to turn a great idea into a commercial success. They probably also understand what it’s like to fail and bounce back.

This entry was tagged angel investors, Kauffman Foundation, Tom Walker.

Angel Investor Portfolio Strategy Posted by Bill Payne

Posted by Tom Walker

Every entrepreneur I have ever met was convinced that his or her product and business plan was a grand slam home run. Sadly, only a small fraction of angel-funded entrepreneurs are successful.

In fact, less than 10 percent of entrepreneurs produce virtually all the upside returns in an angel investor’s portfolio.

When approaching angel investors, it is important for entrepreneurs to appreciate the skewed returns of this asset class to better understand the angels’ criteria for investment.

Monday evening we kicked off our Entrepreneur-in-Residence series. We invited 10 Oklahoma entrepreneurs who are currently engaged in the heavy lifting of raising risk capital to meet with Bill Payne, a seasoned entrepreneur and expert in angel investing who is also i2E’s lead Entrepreneur-in-Residence.

What, you might ask, exactly is an entrepreneur-inresidence? i2E’s entrepreneurs-in-residence are nationally recognized experts in entrepreneurship who bring proven teaching, coaching and mentoring skills to our state. Among entrepreneurs-in-residence, Bill Payne is a super star.

This entry was tagged angel investors, Bill Payne, entrepreneurs, investment portfolio.

This entry was tagged angel investing, Bill Payne, entrepreneurs, risk capital, Tom Walker.

20

Business Plans: Why Write Them?

Posted by Bill Payne

Posted by Tom Walker

This entry was tagged angel investors, Bill Payne, capital formation, entrepreneurs.

This entry was tagged Bill Payne, business plan, elevator pitch, entrepreneurs.

i&E

Winter 2011

Shaping Serendipity Posted by Blake Gudgel

i2E has long been a valuable information node for Oklahoma entrepreneurs. With new programs like the recent Trends in Raising Capital workshop, i2E is expanding both information and relational access for those navigating the winding roads of starting a new business. Compliments of i2E, Bill Payne, one of the country’s preeminent experts on angel investment, braved the snow to share the latest trends in raising capital and work directly with a few of Oklahoma’s entrepreneurs.

This was the first of many programs where i2E will bring in leading experts to provide a real-time pulse on emerging trends and practices central to starting and growing new companies.

Angels Provide Majority of Startup Funding

As entrepreneurs think about starting a business, they use their own Personal Resources to convert ideas and innovations into product and service concepts The most obvious of these include savings, personal computers and home offices. Entrepreneurs also use home equity as collateral for loans and personal credit cards to provide the cash necessary to start their companies. Using a spouse’s or partner’s income for living expenses while starting a company is also common. Extending these personal resources as long as possible before looking for outside sources of capital is called “bootstrapping.”

Entrepreneurs bootstrap their companies until their personal resources are tapped out for two distinct reasons: Outside investors want to make sure entrepreneurs are fully committed to the new venture before providing more funding to startups. After all, if you are not fully committed, why should others help?

This entry was tagged entrepreneurs, angel investing, Tom Walker, venture capital.

This entry was tagged Bill Payne, Blake Gudgel, Mintiva, Trends in Raising Capital.

Capital Sources for Entrepreneurs Posted by Bill Payne

Earlier this week, we launched the Trends in Raising Capital seminar in partnership with the Angel Capital Education Foundation (ACEF). The session was delivered by i2E’s lead Entrepreneur-in-Residence, Bill Payne.

About 10 years ago, the world began changing as it relates entrepreneurs raising risk capital. The dot.com bust started the dominos falling for the VC industry. Our recent economic crisis only speeded that up.

I have often heard investors state that they do not read business plans, implying that entrepreneurs need not write them. I disagree. Entrepreneurs need to write business plans for two reasons:

Most entrepreneurs are totally focused on their products and technology and have given little thought to the other critically important aspects of their potential businesses. Writing a business plan is a great discipline, forcing company founders to detail all facets of their business, including their competitive advantage, sales and marketing plan, financial plans, capital plans and preparations for building a quality management team.

Regardless of the opinion of some, most of us investors read business plans.

In 2009, angels and venture capitalists invested about the same total dollars, approximately $17.6 billion.

The difference between these two important sources of capital is that more than 80 percent of angels’ money went to firms in the seed/startup and early stages. Nearly 65 percent of VC investments were made in expansion and later stage companies. Less than 10 percent of VC dollars were invested in seed/startup deals.

This entry was tagged ACA, angel investing, Tom Walker, venture capital.

A handbook for high-growth firms Posted by Tom Walker

Of the hundreds of entrepreneurs that we’ve worked with over the years, the most successful ones all had at least one thing in common: They followed a path marked by milestones from their good ideas to the creation of a profitable company that produced new jobs, terrific returns for investors and financial reward and self-satisfaction for the entrepreneur.

About a year ago, we decided to corral i2E’s 10-plus years of experience with innovators and entrepreneurs. The result is The Entrepreneur’s Path: A Handbook for HighGrowth Companies.

The entry was tagged Tom Walker, The Entrepreneur’s Path, handbook

Winter 2011

i&E

21

The Power of

2

Greater OKC Chamber and i2E combine entrepreneurial development efforts Parallel entrepreneurial development programs

developed by the Greater Oklahoma City Chamber and i2E have merged into a single track that promises to deliver more support for area entrepreneurs.

The Chamber and i2E announced in January the creation of a joint Office of Entrepreneurial Development to provide resources and assistance for entrepreneurs in high growth sectors.

The new office will combine the strength of entrepreneurial development efforts under way at both organizations into a unified, strategically focused initiative.

“Our organizations were looking for ways to put an increased focus on high-growth, high-value entrepreneurs, said i2E President and CEO Tom Walker. “Additionally, we were looking to address gaps in the entrepreneurial development process. This partnership allows us to begin filling in those gaps in the greater Oklahoma City region and develop programs that could become statewide initiatives.”

The two-year agreement begins with a plan to support entrepreneurial development in:

• Entrepreneurial Resources • Entrepreneurial Assistance • Seed and Early Stage Funding • Networking Support • Entrepreneurial Recognition Events

That translates into an office that will work closely with i2E’s entrepreneurial development efforts such as the Donald W. Reynolds Governor’s Cup competition, along with initiatives to further develop support services for entrepreneurs, increase sources of capital for startup and early stage businesses and create networking events.

22

i&E

Winter 2011

“A significant component of our Forward Oklahoma City IV economic development program is the growth of entrepreneurship in Oklahoma City,” said Roy Williams, President and CEO of the Chamber. “Entrepreneurship is the core of i2E’s work, and this partnership will maximize both our efforts. Supporting these entrepreneurs, who create the next generation of corporate headquarter firms, is a critical component of economic development today.”

Josh O’Brien has been named i2E’s Director of Entrepreneurial Development. O’Brien was the Chamber’s senior business development manager for bioscience and has relocated to the i2E offices in the Presbyterian Health Foundation Research Park.

Entrepreneurial development is one of three areas of focus by i2E, along with Business and Advisory Services and Access to Capital. Two premier entrepreneurial development initiatives include the i2E-managed Governor’s Cup, now in its seventh year of competition, and the i2E Fellows program, which is in its third year of providing Oklahoma college students experience in working for entrepreneurial companies.

The Chamber has supported entrepreneurship through a variety of initiatives, including financial support with as one of five Oklahoma City area entities providing matching funds for a $1 million grant i2E was awarded in 2010 by the federal Economic Development Administration.

“When we began discussing the area of entrepreneurial development with our counterparts from the Chamber, we discovered we were on a parallel track,” Walker said. “We both have the same objectives and there is always a pipeline of entrepreneurs who need support and access to capital.

“We’re pleased that this new Office of Entrepreneurial Development is the result of those discussions. I’m confident that that this initiative will result in more opportunities and greatly increase the likelihood of success for Oklahoma City area entrepreneurs.”

AD

Winter 2011

i&E

23

The Power of

2

Greater OKC Chamber and i2E combine entrepreneurial development efforts Parallel entrepreneurial development programs

developed by the Greater Oklahoma City Chamber and i2E have merged into a single track that promises to deliver more support for area entrepreneurs.

The Chamber and i2E announced in January the creation of a joint Office of Entrepreneurial Development to provide resources and assistance for entrepreneurs in high growth sectors.

The new office will combine the strength of entrepreneurial development efforts under way at both organizations into a unified, strategically focused initiative.

“Our organizations were looking for ways to put an increased focus on high-growth, high-value entrepreneurs, said i2E President and CEO Tom Walker. “Additionally, we were looking to address gaps in the entrepreneurial development process. This partnership allows us to begin filling in those gaps in the greater Oklahoma City region and develop programs that could become statewide initiatives.”

The two-year agreement begins with a plan to support entrepreneurial development in:

• Entrepreneurial Resources • Entrepreneurial Assistance • Seed and Early Stage Funding • Networking Support • Entrepreneurial Recognition Events

That translates into an office that will work closely with i2E’s entrepreneurial development efforts such as the Donald W. Reynolds Governor’s Cup competition, along with initiatives to further develop support services for entrepreneurs, increase sources of capital for startup and early stage businesses and create networking events.

22

i&E

Winter 2011

“A significant component of our Forward Oklahoma City IV economic development program is the growth of entrepreneurship in Oklahoma City,” said Roy Williams, President and CEO of the Chamber. “Entrepreneurship is the core of i2E’s work, and this partnership will maximize both our efforts. Supporting these entrepreneurs, who create the next generation of corporate headquarter firms, is a critical component of economic development today.”

Josh O’Brien has been named i2E’s Director of Entrepreneurial Development. O’Brien was the Chamber’s senior business development manager for bioscience and has relocated to the i2E offices in the Presbyterian Health Foundation Research Park.

Entrepreneurial development is one of three areas of focus by i2E, along with Business and Advisory Services and Access to Capital. Two premier entrepreneurial development initiatives include the i2E-managed Governor’s Cup, now in its seventh year of competition, and the i2E Fellows program, which is in its third year of providing Oklahoma college students experience in working for entrepreneurial companies.

The Chamber has supported entrepreneurship through a variety of initiatives, including financial support with as one of five Oklahoma City area entities providing matching funds for a $1 million grant i2E was awarded in 2010 by the federal Economic Development Administration.

“When we began discussing the area of entrepreneurial development with our counterparts from the Chamber, we discovered we were on a parallel track,” Walker said. “We both have the same objectives and there is always a pipeline of entrepreneurs who need support and access to capital.

“We’re pleased that this new Office of Entrepreneurial Development is the result of those discussions. I’m confident that that this initiative will result in more opportunities and greatly increase the likelihood of success for Oklahoma City area entrepreneurs.”

AD

Winter 2011

i&E

23

PARTNERS

i2E: Turning Innovation into Enterprise www.i2E.org

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

Oklahoma Business Roundtable www.okbusinessroundtable.com

Oklahoma Manufacturing Alliance www.okalliance.com

Our programs and services are possible because of the financial and in-kind support of our partners. These valued organizations are dedicated to the advancement of science and technology in our state and are strongly committed to Oklahoma’s prosperous economic future.

This year, the U.S. Economic Development Administration (EDA) marks 45 years of public service, with a mission of leading the federal economic development agenda by promoting competitiveness and preparing American regions for growth and success in the worldwide economy. EDA is an agency within the U.S. Department of Commerce that partners with distressed communities throughout the United States to foster job creation, collaboration and innovation

The Oklahoma Business Roundtable, formed in 1991, is a 501(c) (6) non-profit organization. The Roundtable’s mission is to encourage and promote Oklahoma’s economic development.

The Roundtable accomplishes this by providing critical private funding in support of the economic development efforts of the Governor and Oklahoma Department of Commerce by encouraging business investment and jobs in Oklahoma.

The Alliance is a not-for-profit organization providing a variety of support to Oklahoma industry. Through a network of Manufacturing Extension Agents and Applications Engineers, they provide hands-on resources for improving productivity, increasing sales, and reducing costs.

i2E services Our services are designed to assist researchers and entrepreneurs in turning their innovations into exceptional home-grown business opportunities.

We do this by: • Providing hands-on product, market and business expertise designed to accelerate commercialization activities.

Mission: To lead the federal economic development agenda by promoting innovation and competitiveness, preparing American regions for growth and success in the worldwide economy.

Oklahoma Medical Research Foundation www.omrf.org

• Attracting and investing risk capital in high growth businesses.

• Promoting an innovation based economy and home-grown economic development. i2E delivers services statewide through operations in Oklahoma City and Tulsa. In 10 years of serving Oklahoma, 25% of the companies have been from rural Oklahoma and nearly 45% have been from areas outside of Oklahoma City and Tulsa.

Oklahoma Center for the Advancement of Science and Technology www.ocast.state.ok.us As the state’s only agency whose sole focus is technology, OCAST is a small, high-impact agency funded by state appropriations and governed by a board of directors with members from both the private and public sector. OCAST works in partnership with the private sector, higher education, CareerTech and the Oklahoma Department of Commerce.

Mission: To foster innovation in existing and developing businesses by supporting basic and applied research and facilitating technology transfer between research laboratories and firms and farms, as well as providing seed capital for new innovative firms and their products and fostering enhanced competitiveness in the national and international markets by small and medium-sized manufacturing firms in Oklahoma by stimulating productivity and modernization of such firms.

24

i&E

Winter 2011

Greater Oklahoma City Chamber www.okcchamber.com The Greater Oklahoma City Chamber works to create valueadded membership opportunities and a business climate that attracts new businesses and enhances growth and expansion opportunities for existing business.

Mission: The Greater Oklahoma City Chamber is the voice of Business and the visionary organization in Oklahoma City. Their goals are (1) To create a business climate that attracts new businesses and enhances growth and expansion opportunities for existing businesses, (2) To create a community with an irresistible quality of life and (3) To create value-added membership opportunities and benefits.

City of Oklahoma City www.okc.gov The City of Oklahoma City’s mission is to provide the leadership, commitment and resources to achieve our vision by: • Offering a clean, safe and affordable City.

• Providing well managed and maintained infrastructure through proactive and reactive services, excellent stewardship of public assets and a variety of cultural, recreational and entertainment opportunities that enhance the quality of life.

• Creating and maintaining effective partnerships to promote employment opportunities and individual and business success.

• Advancing a model of professionalism that ensures the delivery of high quality products and services continuously improves efficiency and removes barriers for future development.

Founded in 1946, the Oklahoma Medical Research Foundation is one of the nation’s oldest and most respected nonprofit biomedical research institutes. Located in Oklahoma City, OMRF fosters a worldwide reputation for excellence by following an innovative cross-disciplinary approach to medical research.

Presbyterian Health Foundation www.phf.com The Presbyterian Health Foundation is a major contributor to medical research and education in Oklahoma. In 1996, they began the PHF Research Park, in Oklahoma City, believing that a science based company with patented products discovered in the medical research laboratory of the University of Oklahoma ought to be launched here in Oklahoma City.

Mission: To provide strategic assistance to Oklahoma manufacturers to help them become successful innovators in the global marketplace.

The Donald W. Reynolds Foundation www.dwreynolds.org The Foundation is a national philanthropic organization founded in 1954 by the late media entrepreneur for whom it is named.

Headquartered in Las Vegas, Nevada, it is one of the 50 largest private foundations in the United States.

Mission: The Foundation seeks to honor the memory of its benefactor by filling unmet needs and attempting to gain an immediate, transformational impact of communities in Arkansas, Nevada and Oklahoma. In pursuing its goals, the Foundation is committed to the support of nonprofit organizations and institutions that demonstrate sound financial management, efficient operation, program integrity and an entrepreneurial spirit.

In accordance with its articles of incorporation, the Foundation will cease to exist on or before June 30, 2044.

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

Oklahoma EPSCoR’s central goal is to increase the state’s research competitiveness through strategic support of research instruments and facilities, research collaborations, and integrated education and research programs. They are funded through a three-year (FY2005-2008) $6M national Science Foundation Research Infra-Structure Improvement Grant matched by an additional $3M from the Oklahoma State Regents for Higher Education.

Mission: To contribute to sustainable research infrastructure with the purpose of preparing the state to compete nationally for large research center grants and form partnerships with business and industry.

Winter 2011

i&E

25

PARTNERS

i2E: Turning Innovation into Enterprise www.i2E.org

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

Oklahoma Business Roundtable www.okbusinessroundtable.com

Oklahoma Manufacturing Alliance www.okalliance.com

Our programs and services are possible because of the financial and in-kind support of our partners. These valued organizations are dedicated to the advancement of science and technology in our state and are strongly committed to Oklahoma’s prosperous economic future.

This year, the U.S. Economic Development Administration (EDA) marks 45 years of public service, with a mission of leading the federal economic development agenda by promoting competitiveness and preparing American regions for growth and success in the worldwide economy. EDA is an agency within the U.S. Department of Commerce that partners with distressed communities throughout the United States to foster job creation, collaboration and innovation

The Oklahoma Business Roundtable, formed in 1991, is a 501(c) (6) non-profit organization. The Roundtable’s mission is to encourage and promote Oklahoma’s economic development.

The Roundtable accomplishes this by providing critical private funding in support of the economic development efforts of the Governor and Oklahoma Department of Commerce by encouraging business investment and jobs in Oklahoma.

The Alliance is a not-for-profit organization providing a variety of support to Oklahoma industry. Through a network of Manufacturing Extension Agents and Applications Engineers, they provide hands-on resources for improving productivity, increasing sales, and reducing costs.

i2E services Our services are designed to assist researchers and entrepreneurs in turning their innovations into exceptional home-grown business opportunities.

We do this by: • Providing hands-on product, market and business expertise designed to accelerate commercialization activities.

Mission: To lead the federal economic development agenda by promoting innovation and competitiveness, preparing American regions for growth and success in the worldwide economy.

Oklahoma Medical Research Foundation www.omrf.org

• Attracting and investing risk capital in high growth businesses.

• Promoting an innovation based economy and home-grown economic development. i2E delivers services statewide through operations in Oklahoma City and Tulsa. In 10 years of serving Oklahoma, 25% of the companies have been from rural Oklahoma and nearly 45% have been from areas outside of Oklahoma City and Tulsa.

Oklahoma Center for the Advancement of Science and Technology www.ocast.state.ok.us As the state’s only agency whose sole focus is technology, OCAST is a small, high-impact agency funded by state appropriations and governed by a board of directors with members from both the private and public sector. OCAST works in partnership with the private sector, higher education, CareerTech and the Oklahoma Department of Commerce.

Mission: To foster innovation in existing and developing businesses by supporting basic and applied research and facilitating technology transfer between research laboratories and firms and farms, as well as providing seed capital for new innovative firms and their products and fostering enhanced competitiveness in the national and international markets by small and medium-sized manufacturing firms in Oklahoma by stimulating productivity and modernization of such firms.

24

i&E

Winter 2011

Greater Oklahoma City Chamber www.okcchamber.com The Greater Oklahoma City Chamber works to create valueadded membership opportunities and a business climate that attracts new businesses and enhances growth and expansion opportunities for existing business.

Mission: The Greater Oklahoma City Chamber is the voice of Business and the visionary organization in Oklahoma City. Their goals are (1) To create a business climate that attracts new businesses and enhances growth and expansion opportunities for existing businesses, (2) To create a community with an irresistible quality of life and (3) To create value-added membership opportunities and benefits.

City of Oklahoma City www.okc.gov The City of Oklahoma City’s mission is to provide the leadership, commitment and resources to achieve our vision by: • Offering a clean, safe and affordable City.

• Providing well managed and maintained infrastructure through proactive and reactive services, excellent stewardship of public assets and a variety of cultural, recreational and entertainment opportunities that enhance the quality of life.

• Creating and maintaining effective partnerships to promote employment opportunities and individual and business success.

• Advancing a model of professionalism that ensures the delivery of high quality products and services continuously improves efficiency and removes barriers for future development.

Founded in 1946, the Oklahoma Medical Research Foundation is one of the nation’s oldest and most respected nonprofit biomedical research institutes. Located in Oklahoma City, OMRF fosters a worldwide reputation for excellence by following an innovative cross-disciplinary approach to medical research.

Presbyterian Health Foundation www.phf.com The Presbyterian Health Foundation is a major contributor to medical research and education in Oklahoma. In 1996, they began the PHF Research Park, in Oklahoma City, believing that a science based company with patented products discovered in the medical research laboratory of the University of Oklahoma ought to be launched here in Oklahoma City.

Mission: To provide strategic assistance to Oklahoma manufacturers to help them become successful innovators in the global marketplace.

The Donald W. Reynolds Foundation www.dwreynolds.org The Foundation is a national philanthropic organization founded in 1954 by the late media entrepreneur for whom it is named.

Headquartered in Las Vegas, Nevada, it is one of the 50 largest private foundations in the United States.

Mission: The Foundation seeks to honor the memory of its benefactor by filling unmet needs and attempting to gain an immediate, transformational impact of communities in Arkansas, Nevada and Oklahoma. In pursuing its goals, the Foundation is committed to the support of nonprofit organizations and institutions that demonstrate sound financial management, efficient operation, program integrity and an entrepreneurial spirit.

In accordance with its articles of incorporation, the Foundation will cease to exist on or before June 30, 2044.

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

Oklahoma EPSCoR’s central goal is to increase the state’s research competitiveness through strategic support of research instruments and facilities, research collaborations, and integrated education and research programs. They are funded through a three-year (FY2005-2008) $6M national Science Foundation Research Infra-Structure Improvement Grant matched by an additional $3M from the Oklahoma State Regents for Higher Education.

Mission: To contribute to sustainable research infrastructure with the purpose of preparing the state to compete nationally for large research center grants and form partnerships with business and industry.

Winter 2011

i&E

25

Innovation A Proven Investment in Oklahoma

Dr. Singh, University of Tulsa

Helping Oklahoma innovators take their ideas to market every day.

(866) 265-2215

www.ocast.ok.gov

Small Business>>Agriculture>>Health>>Manufacturing>>Energy>>Environment>>Technology>>Internships

26

i&E

Winter 2011