i&E Magazine Spring 2010 by Shannon Carr

Spring 2010

HOST

CITY

St. Louis entrepreneurs choose Ponca City to grow their startups

IMPACT INVESTMENTS

Ponca City Venture Associates seek to diversify community’s economy

Tech Convergence

Norman’s eTec business incubator provides more than space for tenants

GROWTH FACTOR St. Louis entrepreneurs Jim Eberlin, left, founder of Host Analytics and JBara, and Joseph Wayman, founder of ENB Science, both chose to build their start-up ventures in Ponca City.

Donald W. Reynolds

Governor’s Cup adds new awards for 2010 competition

Look for us in the Best of Breed article in this issue

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C o n t e n t s

C O N T E N T S Introduction

About i2E

i & E Profiles Real Time Rehab Cog Togs Search and Clear Orbus Technology Client Updates Amethyst Research Inc. Benefit Informatics HealthAide

6 7 8 9

10 11 12

Entrepreneurs Missouri entrepreneurs choose Ponca City

Economic Development Ponca City Investment group seeks diversity

COVER STORY

Outreach 20 Norman’s emerging Technology center Educational Governor’s Cup Awards Continue to Grow, Evolve

Economic Development

Innovators & Entrepreneurs

is produced by i2E, Inc.

Governor’s Cup innovators

20 Norman’s emerging Technology center & Entrepreneurs

Spring 2010

A B O U T

i 2 E

a MESSAGE FROM THE PRESIDENT

elcome to the first edition of i&E magazine for 2010. We’ve chosen to focus this edition on a pair of i2E clients and their unique relationships with each other, the Ponca City Development Authority and a group of investors in Ponca City. Jim Eberlin and Joseph Wayman both live in St. Louis, but they chose to locate businesses they created in Ponca City because of several factors, including investment by the Ponca City Venture Associates. That’s a group of Ponca City residents who pooled their own money and invested in start-up ventures that they hope will help build the economy in their city of 25,000. Mix in the deal-making savvy of the Ponca City Development Authority and you have the beginnings of a grow-your-own success story. This issue also looks at the emerging Technology entrepreneurial center (eTec) in Norman, a business incubator located just off the University of Oklahoma campus. The eTec is owned by the Norman Economic Development Coalition and maintains a waiting list of new ventures wanting to incubate there. The eTec claims some of the state’s emerging success stories such as SouthWest NanoTechnologies and Weather Decision Technologies among its alumni. We talked to officials of the eTec and a current tenant in the incubator to discover what makes it so attractive to startups. In each edition, we profile i2E clients who are working to commercialize exciting high tech products or concepts. Among the companies featured is Search and Clear, which has created a document management software that lets multiple users work collaboratively on the same document. We also profile Orbus Technologies, which has developed a software “virtualization network” that allows school districts with small information technology

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

President and Chief Executive Officer

David Thomison

Vice President, Enterprise Services

Rex Smitherman Vice President, Operations

Sarah Seagraves Vice President, Marketing

Tom Walker

budgets to create secure computer networks to expand learning opportunities for students. Another client company, Real Time Rehab, is enhancing the medical rehab industry by producing videos of exercise routines that patients can follow while they do rehabilitation exercises at home after surgery or an injury. Real Time Rehab won the Tulsa Mayor’s Entrepreneurial Spirit Award and a $30,000 prize last fall. Finally, a group of siblings from Sapulpa are advancing a business called Cog Togs, which uses the concept of patentpending tradable, numbered beads and bracelets and an interactive Web site to create a safe, secure social networking environment for children. Cog Togs was the third place winner in the 2009 Tulsa Entrepreneurial Spirit Award. We also check in with three i2E clients – Amethyst Research Inc., Benefit Informatics and HealthAide – that continue to show promising growth. As always, I hope you find inspiration and innovation on these pages. Enjoy.

Tom Francis Director, Investment Fund Administration

David Daviee Director, Finance & TBFP Administration

Richard Gajan

Director, Enterprise Services

Richard Rainey

Director, Enterprise Services

James Randall

Director, Enterprise Services

Jim Rogers

Director, Enterprise Services

Casey Harness

Commercialization Associate

Scott Thomas Network Administrator

Grady Epperly Marketing Specialist

Jim Stafford

Communications Specialist

Michelle Odom

Meeting and Event Specialist

Cindy Williams

Tom Walker i2E CEO and President 4

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Administrative Assistant

www.i2E.org

A B O U T

i 2 E

ABOUT As a single point of entry for technology commercialization services, knowledge and advice, i2E works with innovators and entrepreneurs on how to analyze risk, create business plans, pitch to investors and partners and network with business professionals. We strive to build a pipeline of young talented and skilled entrepreneurs through a statewide collegiate business plan competition that is based on innovation and technology, and we foster entrepreneurship by matching start-up technology businesses with college students to gain hands on experience and develop networks. Over the past decade, i2E clients received 90% of all venture capital invested in Oklahoma technology companies. In the past year i2E launched the SeedStep Angels as an independent manager-led angel group meeting the SEC’s qualifications for accredited investors. Our efforts were recognized when we were accepted as a full member of the Angel Capital Association.

Our Proof-of-Concept fund provides critical capital to support early product or business development. Managed as a revolving fund, it acts as a catalyst for additional private investment, with paybacks from entrepreneurs funding nearly 30% of all proof-of-concept awards. Awardees have gone on to raise over $210M in additional private capital, leveraging the state’s investment over 28:1. These clients represent 53% of al i2E client companies receiving true venture capital investment. The Oklahoma Seed Capital Fund was created to provide seed and start-up equity financing to Oklahoma advanced technology companies. In 2009, i2E concluded the investment cycle of the first Series of the fund with investments in 7 Oklahoma companies that attracted over $16m in co-investment. i2E has been acknowledged internationally for their success in helping Oklahoma entrepreneurs, college students and researchers turn their INNOVATIONS TO ENTERPRISES………i2E.

i2E BOARD of DIRECTORS Roy Williams, Chairman and Mike LaBrie, Secretary Robert Barcum Unisource Program Administrators

Philip Kurtz Benefit Informatics

Darryl Schmidt BancFirst

Howard G. Barnett, Jr. Oklahoma State University, Tulsa

Hershel Lamirand III Oklahoma Health Center Foundation

Craig Shimasaki, Ph.D. BioSource Consulting

Sean Bauman, Ph.D. Immuno-Mycologics, Inc.

Merl Lindstrom, Ph.D. ConocoPhillips, Inc.

Sheri Stickley Oklahoma Department of Commerce

Bob Berry D.C. Bass & Sons Construction Co.

Dan Luton OCAST

Wes Stucky Ardmore Chamber of Commerce

C. James Bode Bank of Oklahoma, N.A.

Michael Neal The Tulsa Metro Chamber

Rainey Williams, Jr. MARCO Capital Group

Michael Carolina OCAST

David Pitts Stillwater National Bank

Roy Williams Greater Oklahoma City Chamber

Bob Craine TSF Capital, LLC

Amy Polonchek Governor’s Office of Education Strategy and Innovation

Dick Williamson TD Williamson, Inc.

Steve Cropper Investor Philip Eller Eller Detrich, P.C David Hogan Hogan Taylor, LLP

Mark Poole Summit Bank Stephen Prescott, M.D. OMRF

Duane Wilson LDW Services, LLC Don Wood NEDC

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Jeremy Green Real Time Rehab Founder and CEO Year started: 2006 Office location: Tulsa Collaboratorium No. of employees: 1 full time employee and 10 others who are contributing to different projects Product or Technology: Web-based database that features videos of people performing exercise routines that physicians or rehab clinics can provide to patients who are prescribed rehabilitation exercise after surgery or injury. Market: Physical Therapy clinics, hospitals, physician offices, government institutions Future plans: Within 10 years, Real Time Rehab plans to have its educational material in every health care provider’s office. New information will be added to its programs to make it appropriate for more industries. Funding: The company has raised $353,000, including equity, SBA loans, $50,000 in proof-of-concept funding from i2E and $30,000 from the Tulsa Mayor’s Entrepreneurial Spirit Award. Successes: Real Time Rehab has completed and sold its software packages and has paying customers in two states. It secured three quarters of the new beta sites it needs to complete its new product. It began development on new Web based product and will start development on the new DVD technology in January. Web: www.realtimerehab.com

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hen an instructor in a University of Oklahoma physical therapy class threw down a challenge to her students, Jeremy Green took it so personally he founded a company in response. “She asked ‘how can we improve therapy with video?’” Green recalls. The wheels started turning for Green, who had endured two rotator cuff surgeries and subsequent rehabs before entering physical therapy school at OU’s Tulsa campus. Green suddenly saw potential to improve upon the rudimentary drawings of exercises he was instructed to perform at home. “I’ve got a long list of these stick figures,” he said of the line drawings. While sitting in the class he conceived the idea of putting exercise routines performed by real people on video that could be given to patients to watch and follow at home. The idea became Tulsa-based Real Time Rehab after Green first bounced the idea off his dad. “I had brought so many ideas by him and he shot down 95 percent of them before they got out of my mouth,” Green said. “He didn’t say anything when I told him about the concept; he was just quiet. About a week later he came to the house and had a stack of paper. ‘This is your competition,’ he said. “I started thumbing through it and there wasn’t anything close to my idea. They were just paper-based home exercise programs.”

So, Real Time Rehab was born in 2006. Green’s original concept of marketing machines with which physicians and rehab professionals would burn exercise videos onto discs for patients has evolved into a Web-based video database of 534 exercises. “The advantage of this is it allows patients to look at a real person in a home exercise program and be able to replicate that at home,” he said. Real Time Rehab technology currently is used by eight Tulsa area physical therapy locations. A pilot program began in January with another large physical therapy group. Green’s target market also includes large corporate groups, Indian health care providers and government-run institutions for veterans, among others. Real Time Rehab was named the Tulsa Mayor’s Entrepreneurial Spirit Award winner in November, which provided $30,000 and office space in downtown Tulsa for a year. Real Time Rehab also was a recipient of proof-of-concept funding from i2E that helped provide capital to develop the video database. In 2007, Green began a long-term relationship with i2E and Enterprise Director Richard Gajan that continues today. “i2E and Richard Gajan have been instrumental helping us get off the ground,” Green said. “As an entrepreneur I came to them with an idea and they have helped coach and mold us into a company that is on the brink of being very successful”

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Shawna Sims Cog Togs Co-founder Year started: 2008 Office location: Sapulpa No. of employees: 4 Product or technology: Cog Togs markets patent-pending tradable and exchangeable jewelry, including bracelets and backpack clips with an interactive Web site for child-safe networking. Market: The company serves a market that includes more than 60 million children in the United States. Future plans: Cog Togs is developing a prototype for an attachment that can change a bracelet into a necklace, as well as a “bead or cog keeper” to hold extra cogs. It is also creating a Facebook-type wall for communication to enhance its appeal to older children. Funding: The company received $100,000 in proof-of-concept funding from i2E, as well as a $2,500 Tulsa Mayor’s Entrepreneurial Spirit Award as 2009 third place winner. It also has received private investment of $125,000. Successes: Major milestones include completion of initial fundraising, launching its Web site, receiving a trademark for its name, filing for patents on its products and Web site, receiving inventory for initial sales and acceptance into the Creek County incubator program. Web site: www.cogtogs.com

hawna Sims kept returning to a conversation about a “friendship bracelet” she had with her daughter in 2006, turning it over in her mind. An idea was formulating. From that conversation Sims conceived a business concept that eventually became known as Cog Togs Inc., a company she cofounded in 2008 with her sister, Melinda Ryan. Their goal: market tradable, numbered beads for bracelets and backpack clips that allow children to connect with their friends on a safe, secure social networking Web site. Eventually their brother, Jeff Johnson, joined the startup enterprise. “We did not intend to start a ‘family business,’ but that is sort of what happened,” Sims said. “We have always been a very close family, so we work very well together.” The siblings have advanced the concept past key milestones, establishing a Web site at www.cogtogs.com, filing for a patent on their product and Web site, obtaining a trademark for the name and began marketing the beads, bracelets and backpack clips. Cog Togs’ business model revolves around the marketing of the tradable, numbered beads that children use to connect with one another on the company’s social networking Web site. The controlled environment helps ensure that children know with whom they are communicating.

Users can create their own avatar on the Cog Togs site, meet their friends, play games, post blogs and learn online safety tips. Parents of children under age 13 are given a special account with which they can track the activity of their children. Along the way, Cog Togs has received $100,000 in proof-of-concept funding from i2E, $125,000 in private investment and a $2,500 prize as third-place winner in last year’s Tulsa Mayor’s Entrepreneurial Spirit Award competition. The Cog Togs founders learned about i2E through the Oklahoma Inventors Assistance program and the Central Technology Center in Sapulpa and signed on after researching the organization. Enterprise Director Richard Gajan has worked closely with the company as it developed its business plan and worked toward commercialization of the concept. “Richard Gajan made the i2E fee of $1,000 the best money we ever spent,” Sims said. “He has been fantastic, upbeat, honest, informative, encouraging, supportive. He got us through the painstaking business plan, directed us and has helped us every step of the way with a wonderful attitude. “The state of Oklahoma and everyone at i2E should be very proud of the work they do. What an asset to Oklahoma.”

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Search and Clear Neal Nordlinger Founder and CEO Year started: 2005 Office location: Oklahoma City No. of employees: 2 Product or technology: A Webbased collaborative platform for any type of business that depends upon collaboration and communication. Market: Search and Clear first targeted the entertainment industry for its collaboration software, and has since expanded to health care, attorneys, information technology companies, financial institutions and government contractors. Future plans: Nordlinger anticipated changing and evolving the collaborative product even before the Search and Clear product launch. “It’s a constant evolutionary process,” he said. Funding: Search and Clear received $100,000 in proof-of-concept funding from i2E, as well as additional funding from local investors. Successes: The beta site was launched in 2007, and the commercial version of the software will go live later this quarter. The company also has an agreement with Edmond-based Critical Technologies to integrate its collaboration tools with Critical’s document management platform called iMagio. Web address: www.searchandclear.com

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hen Neal Nordlinger discusses his two-decade career as a producer, writer and executive in the entertainment industry, he describes a side of the business that the public doesn’t see. “It is a document management nightmare,” Nordlinger said. In fact, the paper-trail aspect of film production led directly to Nordlinger’s current career as founder and CEO of Oklahoma-based Search and Clear. “Every movie generates thousands and thousands of documents, whether they be from budgets and schedules, contracts, insurance policies, location agreements, deal memos, you name it,” Nordlinger said. As a producer on location with a motion picture or television production, Nordlinger was required to respond daily to budget and script revisions, comments and e-mails from executives with oversight of the project. For instance, while working on a motion picture in South Africa, he contended with daily e-mailed input from a dozen executives who were thousands of miles away in Los Angeles. To keep track of the torrent of comments from the industry executives, Nordlinger downloaded feedback daily, printed it out and taped individual documents to his wall for referral. “It was nuts,” Nordlinger said. “This is the digital age and I’m still dealing with reams of paper. It wasn’t long before I realized that my problem really was the market problem. How do you get teams of people to work together, whether they are in the same office or around the world, where they can share mission critical documents and track all their comments and feedback in a seamless, collaborative workflow manner?”

Spring 2010

Not satisfied with the collaborative software then on the market, Nordlinger created his own. The result is Search and Clear, a Webbased solution that assembles all the collaborative and document management features Nordlinger needed in an intuitive platform that can be accessed from anywhere in the world without any user training or even a manual. Because it’s a true software-as-a-service platform, users don’t have to install anything on their computers, either. Nordlinger created Search and Clear in 2005, launched a beta site in 2007 and will go live with the commercial version of the software later this year. Search and Clear was established in Oklahoma upon the recommendation of Nordlinger’s Los Angeles entertainment attorneys, Peter Dekom and Jay Shanker. Shanker relocated his practice to his childhood home of Oklahoma City to join McAfee & Taft in 2005. i2E’s contribution to Search and Clear’s development has been invaluable, Nordlinger said. “Jim Rogers has been my Obi-Wan Kenobi,” he said. “His guidance, his experience and his knowledge have been beneficial not only in terms of receiving investment from the state of Oklahoma, but also in terms of how to present our solution to all investors as a very valuable and attractive investment. “The greatest value I’ve found in i2E besides teaching and explaining the mechanics of getting your idea out there is that i2E forces one to really focus on what it is that his idea or product does.”

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John Kowalsky Orbus Technology Founder and CEO Year started: 2008 Office location: 722 N. Broadway, Suite 203, Oklahoma City, OK No. of employees: Orbus is a spin-off of Consolidated Networks, which has 75 employees total, including 25 in Oklahoma City. Product or technology: Orbus markets its own ThinK-12 platform and services that are used to help small, rural schools launch education software in every classroom. Market: Orbus is focused on Oklahoma as a launch market for its technology with plans to roll it out to neighboring states. Future plans: The Orbus platform is built on flexible industry standards that allow it to adapt and change as new technologies such as “cloud” computing are introduced. Kowalsky envisions Orbus providing “hybrid platforms” with flexible bundles of products that will attract new customers. The company also plans to establish a national presence by 2013. Funding: Orbus has been self-funded and is seeking investment capital. Successes: Orbus has developed platform technology that allows it to create secure networks that teachers, students and school staff can use. The Orbus networking technology connects to hardware and software already in schools, making older computers run faster and eliminating the need to load software on every computer.

mall, rural school districts often are caught in a technology Catch-22, says John Kowalsky. Their classrooms are filled with computers, but no one on the staff has expertise to connect them to a network that would allow students and teachers to use them effectively. And districts fear letting students have access to Internet sites through school computers. So, computers often sit unused, says Kowalsky, founder of Orbus Technology. Orbus has developed technology that will allow rural school districts to create closed, secure networks on which they can launch educational software and use it on even older computers. “Orbus was started after I saw our first virtual machine technology installed in a rural school and the positive transformation it had allowing teachers to deliver reliable education-technology to the classroom,” Kowalsky said. Orbus Technology’s virtual machine platform creates networks that allow teachers to implement educational software for student use and to control what is on screens of student machines at all times. Kowalsky branded the technology ThinK-12. As a long-time computer networking professional, Kowalsky built a successful company called Consolidated Networks Corp. that provides network engineering and IT services to government and commercial clients, as well as school districts.

Consolidated Networks maintains an office in Oklahoma City in which Orbus is co-located. Kowalsky has targeted the many Oklahoma school districts as the first markets for the new technology. “I can see the day that all K-12 schools use our platform, but we learned a valuable lesson starting other companies — it’s best to secure a beachhead before taking the continent,” he said. “Following this rule, we’re focused on Oklahoma, our beachhead, with plans this year to roll out to neighboring states.” Self-funded since start-up, Orbus is seeking investment capital to push the technology closer to commercialization, Kowalsky said. “We will continue to move out in stealth fashion and develop more material such as a Web site after funding is secured, he said.” i2E has contributed to the development of Orbus Technology’s business plan and its investor presentation, as well as explaining the commercialization process “which is like a labyrinth right out of a Harry Potter novel,” Kowalsky said. “Jim Rogers of i2E has been a great coach and professional executive to work with throughout this process,” Kowalsky said. “He has worked hard on our behalf and has taken a personal ownership of our project. His dedication is a major reason for our success.”

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Amethyst Research Inc. provides technologies high-performance infrared detectors

“In concert with OCAST, i2E has introduced us to the Oklahoma Manufacturing Alliance and provided guidance on funding and securing outside investment. i2E does a lot for high-tech entrepreneurs in Oklahoma, and the Governor’s Cup is the starting point for college students.” — Rob Kuester, Operations Manager

RDMORE — When Rob Kuester and his teammate chose to write a business plan based on Amethyst Research Inc.’s (ARI) technology for the 2006 Governor’s Cup, Kuester didn’t anticipate that he would get bitten by the entrepreneurship bug and find a new career. But that’s what happened. Ardmore-based ARI provides technologies to improve the performance and reduce the price of infrared sensors. The company specializes in materials for highperformance infrared detectors that are used in night-vision imagers. With these devices, people can literally see in the dark. As the Governor’s Cup was winding down, ARI asked Kuester to come on board part-time in product development; then when Kuester graduated from the University of Central Oklahoma in Edmond, his parttime position went to full-time. Today he is operations manager for ARI. The company has received contracts from US Army, Army Research Laboratory,

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Missile Defense Agency (MDA), Office of Naval Research (ONR), and grants from the National Science Foundation. These awards include seven Small Business Innovation Research (SBIR) grants as well as three contracts with the MDA. A multi-million dollar Congressional contract and a unique public-private partnership structured by the Ardmore Development Authority, enabled ARI to accelerate its production schedule. ARI has

Spring 2010

also been supported by multiple grants from OCAST’s Oklahoma Applied Research Support (OARS) program, R&D Intern Partnership (RDIP) program, Oklahoma Nanotechnology Applied Projects (ONAP) program, and most recently Oklahoma’s Economic Development Generating Excellence (EDGE) program. “We’ve gone from having no computers or support staff, minimal equipment, leased lab space, and six paid employees,” says Kuester, “to 21 paid employees and a 4,100 square foot facility that houses a laboratory and an ion beam accelerator.” A second, 6,000 square foot facility is expected to be populated this spring with personnel and equipment, including the first commercial molecular beam epitaxial (MBE) system in Oklahoma. “It is very exciting helping take this company from a research and development company to the next level of commercialization and watching the company grow,” he says.

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Benefit Informatics

providing the types of flexible health benefits employees want “i2E has a nice piece of machinery helping young companies and every year it gets better and better. Oklahoma was early in that game, and i2E is a great vehicle that has been very good for the state. I’m really proud of what they have accomplished over the last 10 years.” — Phil Kurtz, President

ULSA — Amidst the swirling talk and debate around the rising costs of health insurance, clients of Benefit Informatics are using the company’s Web-based solutions real time to reduce costs while providing the types of flexible health benefits employees want. “Employers have a vested interest in keeping employees healthy and productive,” says Philip D. Kurtz, president of Benefit Informatics, “and they have to have the information to be able to do something about rising costs. Our technology helps companies break their costs down into much smaller components so they can supply actionable items to help lower those costs.” Benefit Informatics supplies the tools and data so that third party insurance plan administrators, employers, plan providers and re-insurance companies can burrow down into the details of how their claims budgets are being spent. Companies typically know how much their aggregate benefits

cost — it’s a big line on their profit and loss reports — but they often don’t know the details of what makes up that cost. “We build a data warehouse for each client and update it daily with downloads from claims payment systems,” Kurtz says. “Our information may also come from employees and employers, for example, plan enrollments or life changes. We create ‘pick’ tools to look at information from different ways, including a lot of statistical analysis.” This helps clients see what their driving factors are, hiring practices, incentives, plan designs, wellness programs, or whatever. “We also normalize our clients’ data so that it can be benchmarked against data downloaded from national sources and data bases such as the American Medical Association, Medicare, the Centers for

Disease Control and Prevention, and others,” says Kurtz. Benefit Informatics serves selfinsured employers with 100 up to 50,000 employees and more than 50 third-party plan administrators, including about six Blue Cross/Blue Shield organizations that represent about 2 million members. “We do business with companies from coast to coast and bring that revenue into the state of Oklahoma,” Kurtz says. “We’re in the growth stage, have been profitable or break-even for the last three years; however we currently are investing in additional markets which will result in losses this year. We expect to grow by over 50 percent in the next 12 months.” The company received proof-of-concept funding through one of the first Technology Business Finance Program (TBFP) grants, which has been repaid. The firm also received additional investment through the Enterprise Oklahoma Venture Fund (EOVF).

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HealthAide

developing innovative topical medicated skin care products “As a serial entrepreneur from California, I credit OCAST, i2E, and other Oklahoma resources with helping HealthAide get started and gain traction. A big benefit of having our company headquartered in Oklahoma is OCAST and i2E. i2E has been advising us, has given us leads for potential partnerships with other companies, and is helping us with market research. They are one of the best commercialization support systems I’ve seen.”

— Rob Kuester, Operations — Tony Hugli, Manager CEO

KLAHOMA CITY — Some of the best and most successful start-up companies find creative ways to apply scientific discovery to make the everyday lives of ordinary people better. That’s the story of HealthAide, a company developing innovative topical medicated skin care products to sooth and relieve irritation and minor pain. HealthAide technologies take advantage of the recently discovered anti-inflammatory and analgesic benefits of Aspartame, the artificial sweetener found in diet beverages and reduced calorie foods. “The company now has scientific evidence that aspartame, in specific doses and application, is an aspirin-like compound or a non-steroidal anti-inflammatory (NSAID) drug with broad human and animal applications,” says Tony E. Hugli, HealthAide CEO. Allen Edmundson, of the Oklahoma Medical Research Foundation (OMRF) and HealthAide’s chief scientist, led the research that discovered and helped confirm the initial therapeutic characteristics of aspartame as used in HealthAide’s JUST ONE DermaZAide products. HeathAide has licensed six patents from OMRF and

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holds four patents or patent applications of its own. “Our strategy is to take a product far enough to attract a licensing partnership with a company that wants to manufacture and brand it, or, if we manufacture a product to market it ourselves and distribute it through the Web,” Hugli says. HealthAide’s JUST ONE DermaZAide product line includes a medicated skin care lotion, body powder, and an aloe vera gel, each of which can be used effectively to treat a number of skin conditions including poison ivy or oak, contact dermatitis, psoriasis, insect bites, and various burns. ‘JUST ONE’ because you need just one product for these many skin problems. The skin care lotion, the centerpiece of the line, is formulated as a fine body lotion to glide smoothly and soften the skin without being oily or greasy. The novel idea is that very few skin treatment products are

Spring 2010

formulated in a nice body lotion base. The lotion contains FDAapproved therapeutic levels of lidocaine, making it an effective treatment for itching or rash. “The trend is away from simple over the counter products, toward those that are FDA-certified,” Hugli says, “so we continue to go through that process.” The company is also developing a product called Dr. JMB (joints, muscles and bones) to treat animals for joint pain and other conditions. The Economic Report, a FOX Business News television show, which appears on news networks across the country and educates viewers on the latest technologies, aired a presentation by HeatlhAide nationally on January 2. A OCAST Technology Business Finance Program (TBFP) award provided half the funding to get HealthAide started. “We are bootstrapping this company,” Hugli says. “All our money goes to developing product, patents, and consolidating intellectual property. Not many companies have gone this far while spending less than $250,000 of investment capital over four years.”

A c c e s s

t o

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Funding Oklahomaâ&#x20AC;&#x2122;s Technology-Based Companies

OCAST Technology Business Finance Program (TBFP) Provides proof-of-concept funding. So far in fiscal 2010, the TBFP has awarded $500,000 in five companies. Managed by i2E, Inc., the TBFP is funded by state appropriations through the Oklahoma Center for the Advancement of Science and Technology.

ENB Science LLC

OKLAHOMA SEED CAPITAL FUND (OSCF) Provides seed and start-up stage equity financing. The Seed Fund is an innovative public-private partnership operating under the Economic Development Act of 1987 and is managed by a separate subsidiary of i2E. State funding is provided through the Oklahoma Center for the Advancement of Science & Technology and other funding provided by co-investors. At the end of December, 2009, Series 1 of the Fund had closed 10 investments in seven companies totaling over $3.6 million, and Series 2, a $5.6 million Fund, became operational. Series 2 has a robust pipeline and will begin making investments during the first half of 2010.

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E n t r e p r e n e u r s

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E n t r e p r e n e u r s

Host City

St. Louis-based businessmen welcomed ‘home’ in Ponca City

David Myers, executive director of the Ponca City Development Authority, left, Jim Eberlin, founder of Ponca City-based Host Analytics and JBara, center, and Joseph Wayman, founder of Ponca City-based ENB Science, standing in front of the City Hall building in Ponca City in early January.

ONCA CITY – It is a bitterly cold early January morning as Jim Eberlin and Joseph Wayman walk out of the Ponca City Development Authority office here and climb into Wayman’s black Honda Accord with Missouri tags. As Wayman steers the car toward the Pioneer Technology Center on the far west side of town, they trade friendly barbs like a pair of fraternity brothers. In fact, they are frat brothers, of sorts. Eberlin and Wayman are St. Louis-based entrepreneurs, each of whom has located technology-based start-ups in this northern Oklahoma community of about 25,000. One of Eberlin’s businesses shares space in the business incubator with Wayman, located at the Pioneer Technology Center. More common bonds: the two businessmen attend the same church in St. Louis. Both are i2E clients. So, why are they bringing businesses to life in a small city 500 miles to the southwest? That story begins in Atlanta. Of course. At a conference for chief financial officers in Atlanta, Eberlin met officials with the Ponca City Development Authority and the Oklahoma Department of Commerce. Eberlin founded a company called Host Analytics that provides financial corporate performance management software to corporations via what is called “cloud computing.” He was seeking a community in which to locate his new company and financial help to build it. “I started reading about university sourcing and getting into areas that weren’t in a major metropolitan area and about communities that really rally around their own community to bring in businesses,” Eberlin said. “I found that I could get more support from the community in Ponca City than I could in St. Louis, Mo.” Eberlin located Host in a Ponca City office building that came with favorable terms in exchange for a promise to grow to a certain number of jobs within the community. Next he won investment in Host Analytics from the Ponca City Venture Associates, a group of 10 Ponca City residents who pooled their money to invest in startups that show potential to expand the city’s job base. “They were very helpful in funding the organization to get it up and running,” Eberlin said. “We took a small angel round from them that helped us get our facility going and get people trained. We were able to attract some people who grew up around the area to come back.” The relationship deepened as Eberlin began staying in an apartment offered by Ponca City attorney and Venture Associates member Fred Boettcher. “He always made sure I stayed in his apartment when I came to town,” Eberlin said. “He was a good guy, and Fred and I have become good friends.” Continued on page 16. innovators

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Joseph Wayman, founder of ENB Science, left, and Jim Eberlin, founder of Host Analytics and JBara, shown in the lobby of City Hall building in Ponca City. Continued from page 15.

Eventually, Host Analytics attracted $15 million of investment from California investors who resisted the urge to relocate the company closer to their Silicon Valley base after investigating the Ponca City arrangement. “They sent Ron Weissman, who is now chairman of the board of Host Analytics,” Eberlin said. “Ron met with Fred Boettcher and Barry Bickle, and went back convinced this was one of the biggest secrets ever; what a great way to do things.” Weissman invited a Ponca City group to San Francisco last year to meet with several venture capital groups. “What he wanted us to do is show them the Oklahoma model,” said David Myers, executive director of the Ponca City Development Authority. “You don’t have to offshore your companies to Asia or Latin America. You can keep them right here in the United States and have a very similar cost matrix, but have a whole lot more access to them and control over them.” Today, Host Analytics boasts a dozen Ponca City employees and is on track to expand that to 30 within a couple years. Host Analytics currently has 80 employees worldwide. “Even in the midst of this recession, they are growing,” Myers said. “We are very

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optimistic about where they are going to be this time next year.” Eberlin founded a second company called JBara, which creates social networking sites for businesses. Naturally, JBara found a home in Ponca City and is an i2E client just as is Host Analytics. The success of Host Analytics and JBara in Ponca City led Eberlin to pitch the community to Wayman, who was starting a business called ENB Science that markets a pet supplement under the name True-Dose. “I introduced him to all the people in Ponca and put him in touch with people at i2E,” Eberlin said. Wayman picks up the story. “I visited with some of the guys down there, including Dave and the Ponca City angel group,” Wayman said. “They listened to my story; they liked it and ended up funding me. “There is tons of support in Ponca City. It’s just been amazing. It’s been a real community effort.” Wayman plans to eventually to establish a manufacturing operation in Ponca City, moving production from a pharmaceutical facility in Montana and a bottling plant in St. Louis. Both Eberlin and Wayman said the proximity of Oklahoma State University

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– 42 miles to the south – to Ponca City also weighed in the city’s favor. OSU is conducting research to measure the absorption rate of the True-Dose liquid supplement in comparison with the tabletbased supplements now commonly used. “The OSU connection is a big deal because Stillwater and the University have been very supportive,” Wayman said. “I think they are supportive because of the reputation that David Myers has, their confidence in the whole group in Ponca City. It’s been a real harmonious interaction.” In addition to the Ponca City investment, ENB Science received $100,000 in proofof-concept funding from i2E and a $12,000 award from OSU to fund research. For JBara, the proximity of OSU provides a source of educated employees. “The model we have is we can get people out of OSU and train them up,” Eberlin said. “I call that university sourcing.” So it was no surprise that these two St. Louis businessmen were on the Ponca City streets together on this frigid morning in January. They are both enjoying the ride. “I think it’s just a great environment here in Ponca City,” Eberlin said. “I don’t think it was a surprise. We were hoping for that.”

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JBara: Social Business Media Imagine an online community of users who share product tips and success stories and participate in online discussions and forums, all revolving around the customer experience of a particular company. In addition, a business can have a control panel showing the true satisfaction level of customers and where the revenue growth opportunities exist. That’s the vision of Jim Eberlin’s latest start up, Ponca Citybased JBara. Eberlin calls it “social business media.” “This is a Facebook and Linkedin for your business,” Eberlin said. “It features Web 2.0 technologies like forums, blogging and content management, profile matching to automatically matchup up and introduce likeminded people and customer analytics so that customer activity and loyalty can be understood.” By using the Web-based social business media application from JBara, companies can monitor customer conversations, activity and react quickly to any issues

that arise as a way to build customer loyalty and grow revenue from the existing customer base. “We find the benefits of having a customer community, where like-minded individuals get to have conversations transparently without the marketing hype, makes for a much stronger and healthier customer base,” Eberlin said. Eberlin’s management team includes John Pawlikowski, JBara’s President who is responsible for much of the day-to-day activities. As a previous regional CEO of a $300 million international business with a very diverse customer base Pawlikowski immediately saw the benefit that JBara’s customer success program would provide to a variety of businesses. “The tools provided by JBara will prove to be invaluable to any business who wants reliable, quantitative analysis of its current customer base to help retain those customers and grow revenue from existing customers,” Pawlikowski said. “Companies who implement JBara will be in an enviable position as they will see a much greater overall growth rate as they gain new business since they will be adding incremental sales and not just replacing lost business.”

ENB Science: High Quality Supplements for Dogs The challenges of providing dietary supplements for their pets are many for dog owners. First, tablets are sometimes so compressed that they don’t break apart during the digestive process and very little is absorbed into the dog’s system. Second, supplement quality is often so low that dogs get little benefit. And finally, pet owners must be resourceful to get their dog to swallow a tablet-based supplement.

ENB Science was created to change the supplement industry, said founder and CEO Joseph Wayman, a veteran of the pet food industry. ENB has formulated dietary supplements to “human quality” standards, which are in liquid form and sprayed onto a dog’s food. ENB Science’s True-Dose supplement goes down easier and is absorbed more quickly. “With dogs, especially, it’s difficult at times to get them to take tablets,” Wayman said. “Supplements will work if it gets into your system and if you take it.” Oklahoma State University is currently conducting a study on the True-Dose product to assess the rate of absorption compared with tablets. “I feel confident that ours will work faster,” Wayman said. “Because it’s liquid and because it’s high quality, it is absorbed into the dog’s system and it works fast and it works great.” The True-Dose bottle also is equipped with a special nozzle that sprays a precise amount onto a dog’s food. True-Dose already is being sold in about 30 retail stores, and Wayman sees pet stores and pharmacies as key sales location, in addition to the company’s Web site at www. truedosepets.com. innovators

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Diversification is a key to this investment group

ONCA CITY—Laughter engulfs the Eastman National Bank office of Barry Bickle, where Bickle is seated along with local attorney Fred Boettcher and David Myers, executive director of the Ponca City Development Authority. The trio reacts with laughter to a visitor’s question about the Ponca City Venture Associates, an investment group composed of 10 Ponca City business leaders who five years ago pooled $100,000 each to invest in their community’s future. The question that provoked such laughter: Is this a philanthropic effort? “We hope it’s not,” Bickle responded when the room quieted. “We would love to make some money, but this group truly is interested in bringing jobs to Ponca City.

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We’ve turned down some things because they didn’t bring jobs.” Bickle and Boettcher are two of the 10 founding members who created the investment group more with an eye on the community’s financial future than their own bottom line. The fact is, the Ponca City group created the formal investment organization in response to ongoing job cuts at the ConocoPhillips operations in the northern Oklahoma community of about 25,000. “This group decided that we need to be aggressive and get out in front, trying to do something to attract jobs instead of just waiting for something to happen,” Boettcher said. “It became apparent that ConocoPhillips wasn’t going to be here as

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a major employer like they had been in the past.” Operations at the former Conoco, Inc., Ponca City campus, headquartered here since the 1920s, have been routinely downsized since the company was acquired by Houston-based Phillips Petroleum in 2002. In the most recent round of cuts, ConocoPhillips announced in early 2009 it was moving virtually every non-refineryrelated job — about 750 — out of Ponca City. The job creation efforts of the Ponca City Venture Associates are modest by comparison. The group — Bickle said they are uncomfortable with the term “angels” — has invested in i2E clients Host

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This is David Myers, executive director, Ponca City Development Authority, left, with two members of the Ponca City Venture Associates: Barry Bickle, senior vice president for business development at Eastman National Bank, center, and Fred Boettcher, a Ponca City attorney. They are shown in the lobby of the Eastman National Bank.

Analytics and ENB Science, as well as a third company called Duct Bot. All are startups that promise smaller employment numbers but more job diversity Boettcher said. “It’s better to have 100 industries of 50 people than one of 5,000,” he said. “I’ve learned that you can never count on major industry to be the bedrock of your employment base or you are going to be in trouble eventually.” Added Bickle: “You have to have diversification.” Diversification is a key to the investment group, as well. In addition to the banker and the lawyer, their numbers include a car dealer, a surgeon and a financial planner. The Ponca City Development Authority manages the group’s activities, vetting potential deals before bringing them before the investors. “Our partnership with David and the Ponca City Development Authority is what makes the thing work,” Boettcher said. The group has considered 12 opportunities and invested in three. “There has probably been another 12 that they have not looked at because in our judgment they weren’t good opportunities,”

Myers said. “Our role is that of facilitator. We do the vetting, we do the convening, we do everything but manage the money.” The loss of energy-related jobs at the ConocoPhillips campus has opened a window of economic opportunity for Ponca City in areas that complement the investment group’s efforts, Boettcher said. In 2006, ConocoPhillips donated a longunused laboratory building to Oklahoma State University for use as a sensor testing center. The site now operates as OSU’s University Multispectral Laboratories, which provides sensor testing facilities and services to a variety of military and government contractors. Although owned by OSU, the UML is managed by a private entity that is adding highly skilled, highly paid positions. About 80 people work there at an average salary of $90,000, Boettcher said. “That’s a real boost to Ponca City,” he said. “They see a lot of development in the future.” Ponca City also has created what it calls a University Center on the ConocoPhillips campus where students can earn a college degree from any of 14 colleges and universities within Oklahoma. The students

attend class on distance campuses via video conferencing technology. As the city finds ways to build jobs on the ConocoPhillips campus, the Ponca City Venture Associates are continuing their own modest economic development efforts. Host Analytics, the group’s first investment is starting to add jobs to its Ponca City headquarters. “Their projections are showing they will grow to 30 jobs here within two years,” Bickle said. “If that happens, then whatever we make off the deal, if we make anything, will be gravy.” Host Analytics has already become one of the top “cloud computing” software companies as referenced in Gartner’s Magic Quadrant and Forrester’s Wave Report. Currently, Host Analytics has 80 full-time employees worldwide. So, is the Ponca City Venture Associates a philanthropic effort after all? “That’s called a success story,” Boettcher said. “How many 29,000 to 30,000 population towns do you suppose there are in this country? We’ve got to compete with every one of them. “And you’ve got to have people who give a darn.”

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Norman Economic Development Coalition Nurtures start-up ventures at busy eTec

Don Wood, Executive Director of the Norman Economic Development Coalition, left, and Ross Robinson, Director of Technology Development

ORMAN – Convergence happens here in an unassuming office building just north of the University of Oklahoma campus. Call it Norman’s innovation melting pot. Research, education and technology commercialization converge in 10 entrepreneurial businesses that call the emerging Technology entrepreneurial (eTec) center at 710 Asp their home. It’s all “very Norman,” suggests Don Wood as he sits in his office in the eTec business incubator. Wood is executive director of the Norman Economic Development Coalition, which owns and operates the incubator. He also serves on the board of directors of i2E. What makes the incubator vital to the community is more than its location deep in the heart of Norman. Or that the Norman Economic Development Coalition recently opened a second eTec location just east of the Max Westheimer Airport in the north part of the city. The incubator represents a do-it-yourself economic development mentality that sort of brands the city of Norman.

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“Norman looks internally first, and they see themselves as kind of a free-standing, independent community,” Wood said. “Help your own and grow your own, and those companies being based in your community and having kids in the school district and all those other things; there is a warm and fuzzy that Norman gets out of that aspect of it.” All of which helps to explain how this 10-year-old business incubator established in an unassuming former office building consistently boasts an occupancy rate of 100 percent with a waiting list to get in. There are usually about 10 tenants in the eTec’s Asp Ave. location, with another four in the newer building near the airport. Another eTec feature that matches Norman’s do-it-yourself approach: It is self funded, with no federal or state grant money used to create and operate it. “Most programs have some funding source, a tech system or a grant,” Wood said. “We’ve done it all on our own nickel.” The Norman Economic Development Coalition is funded through a consortium of four Norman entities that each contributes $125,000 to its operation. The coalition

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was created in the mid 1990s to promote Norman’s economic development, with Wood hired in 1997 as its first director. Funders are the City of Norman, the University of Oklahoma, the Norman Chamber of Commerce and the MooreNorman Technology Center. The NEDC’s mission includes four areas: take care of existing employers in the community; work to improve the city of Norman; job and targeted industry recruitment; and help to accomplish technology transfer, out of OU, for example into commercial businesses. Most of the eTec tenants boast some techrelated aspect of their business, and many have spun out of OU ‘s nearby laboratories into the commercialization space offered. However, the businesses housed here are being created by a diverse group of innovators that transcend the campus boundaries, said Ross Robinson, Director of Technology Development for the NEDC. “”People who come into the eTec include those from the university, professors and so on, but it’s not exclusively so,” Robinson said. “About one-third are university related, about one third are former

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“We don’t limit our services just to people who are in the incubator… We provide services to anyone in the community.” — Don Wood

university people who have gone off to the world and come back and started companies, and about one third of them are just people in the community.” In a former life, the eTec was primarily a medical office building. It housed doctors, dentists and other service type businesses in its 10,000 square feet of space, all on one floor. “Our dream some day is to add a second story on this building and double the size of the incubator,” Wood said. The 5,200 square foot eTec-2 facility on the north side of Norman boasts some features that he original incubator can’t offer. It has “high bay” space that allows for manufacturing and warehouse type operations. NEDC hopes to add three more bays to the back of the building and a wet lab if there is demand. No one is on the clock at Norman incubator. Businesses can hold their eTec space at a rent of $16.50 per square foot for as long as it fits their operation. The ideal tenant will prosper in the eTec until the business needs room elsewhere. “Our idea is that we are going to grow you out of space and you will have to leave because you don’t have enough space here to accommodate your company,” Wood said. “That is pretty much what happens to most of the tenants.” Wood and the NEDC staff of six monitor the progress of eTec clients and serve as a conduit to commercialization experts and services such as i2E that can provide assistance. The Moore-Norman Career Tech Center also provides a staff member who works with tenants with specific hiring and training needs. “We don’t limit our services just to people who are in the incubator,” Wood said. “We provide services to anyone in the community.” Some of the more successful eTec alumni include Weather Decision Technologies, Atmospheric Technology Services, both of which are now located on OU’s South Research Campus. Southwest Nanotechnologies is another alumnus, which is manufacturing single wall nanotubes from a new building that the Norman Economic Development Coalition helped finance. “We try not to lose contact and we try to be supportive of our clients after they’ve left,” Wood said. “We try real hard to network them to other resources that are available. Key to that group would be OCAST and i2E and the Technology Business Finance Program.” The bottom line to the eTec’s presence: It claims 32 incubator graduates that have created 324 jobs for the community. Now that’s very Norman.

eTec Provides

Tenants More than Mere Space NORMAN – The sign outside the tiny office at Norman’s emerging Technology entrepreneurial center (eTec) identifies it as belonging to FrontRow Technologies. Inside are little more than a desk, four walls and space that measures no more than 10-feet by 10-feet. An i2E client, FrontRowFans has occupied an office in the Norman business incubator at 710 Asp Ave. since 2003, shortly after the business was founded by CEO Matt Green. “It’s a one-man office, which has made our rent very affordable,” said Green. “We got in there from the start. We wanted to have an office presence right away.” FrontRowFans provides a unique service that benefits local charities such as the American Red Cross of Big Brothers/Big Sisters. Ticketholders to sporting events such as University of Oklahoma football games make tax deductible donations to specified charities, which then benefit from subsequent sales of tickets for half price to fans who otherwise might not be able to attend. It’s not the closet-sized office or even affordable rent at $165 per month that has kept FrontRowFans tethered to the eTec incubator for six years, however. The presence in eTec brings far more value than a tiny office, Green said. While FrontRowFans occupies a small space in the eTec, other tenants usually lease much larger space and often employ several people within their incubator offices. All the tenants have access to shared facilities in the 10,000-square-foot incubator that include office equipment and a conference room with a board room-like meeting table and multimedia and video conferencing equipment, among other amenities. There is more, something less tangible than office equipment or video conferencing at the eTec, Green said. It is the personal support that FrontRow has received over the years from the eTec staff and Don Wood, executive director of the Norman Economic Development Coalition, which owns and operates the incubator. “Don has helped us with the NEDC’s direct support, in sponsoring our service and introducing us to local businesses that can also help us,” Green said. “With the networking and the connections to the Chamber, you are not going to find more affordable space,” Green said. “Especially with the services you get out of it.”

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High Growth Competition Governor’s Cup adds new prizes, opportunities for 2010

Chas Craig, with the Innovative Solutions team from Oklahoma State University, makes his elevator pitch before an audience of more than 500 people at the 2009 Governor’s Cup awards dinner.

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he prize pool for the Donald W. Reynolds Governor’s Cup business plan competition continues to grow and evolve as sponsors see the value the event brings to the state’s entrepreneurial community. Would-be entrepreneurs from college campuses across the state will compete for almost $200,000 in cash awards again this year. Governor’s Cup participants are also eligible to compete for three $5,000 Paulsen Award scholarships sponsored by the Oklahoma Business Roundtable. In addition, five participating students will earn a combined $40,000 while serving 10-week fellowships this summer for Oklahoma technology-based companies in which they will complete specific projects matched to their individual skills. New to the competition is the OGE Positive Energy Award worth $7,500 in cash and will be awarded to the business plan that best focuses on energy conservation or alternative generation technologies. And one graduate division team will earn free office space and services for a full year in one of four Oklahoma business incubators that have teamed to offer the Al Tuttle Business Incubation Award. It’s all part of the Governor’s Cup mission to develop entrepreneurial talent in the state while retaining the best and the brightest of Oklahoma’s college students after graduation. The newest feature of the Oklahoma Governor’s Cup includes no money but the ability to connect with the competition online. The Governor’s Cup now has its own Facebook page at www.facebook. com/OKGOVCUP, where photos, videos, past winners and articles published in Oklahoma media can easily be viewed.

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From its inception in 2005, the Governor’s Cup has made an impact on the students who competed and on the state with new entrepreneurs, companies and retention. More than 15 entrepreneurial businesses have benefited from this competition either directly as student startups or with the assistance of Governor’s Cup alumni. That influence continues to be felt in Oklahoma companies with names like PreDENT, Innovative Solutions, Fitness Fulfillment, XploSafe, EZVein, ZigBeef, and GameRNA, to name a few. James Haddock and Mallory Van Horn teamed to win first place in the 2006 Governor’s Cup graduate division with a business plan called PreDENT from the University of Oklahoma. After the competition, they immediately plunged into the world of entrepreneurship to make their plan a reality. Today, they are advancing PreDENT and working to bring to market a vaccine to treat periodontal disease in dogs based on technology first developed for human use. “While we were working on the business plan competition, I came up with the idea of applying the technology to animals,” Haddock said. “I thought it could be much easier to commercialize since products for animals do not have to go through the FDA approval process.” Since the Governor’s Cup, PreDENT put together a grant application and was awarded an Oklahoma Applied Research Support (OARS) $88,000 grant which they used to establish that the technology does work to prevent periodontal disease in dogs and that their process can produce a vaccine that can be manufactured in quantity. They have also received a $100,000 proof-of-concept funding through the OCAST Technology Business Finance Program, as well as $100,000 from the City of Oklahoma City’s Emerging Technologies Fund under its Strategic Investment Program (SIP). Other Governor’s Cup competitors have had similar entrepreneurial experiences. Ted Goodridge was a finalist in the 2007 undergraduate division with a plan called Elite Engines from the University of Tulsa. Goodridge took his plan, renamed it gameRNA and today is building a company that is developing a suite of products that include artists tools for digital content creation and a 3D engine for computer game development. Through her experience with the OPTima Solutions team from the University of Oklahoma, Devan Eagon was hired by Oklahoma City-based MEDIBIS, which provides business intelligence services for ambulatory surgery centers nationwide and was subsequently acquired by a national firm called GENASCIS. Amanda Balcom was hired as the first company employee by the inventors of Mintiva, which competed as an undergraduate team from the University of Oklahoma. Mintiva is developing a topical analgesic cream that temporarily relieves pain associated with joint disorders. The Amethyst Research Inc. business plan that Rob Kuester and a group of Oklahoma State University - OKC classmates wrote for the 2006 Donald W. Reynolds Governor’s Cup competition did more than enhance his college experience resume but launched Kuester into a full-time position with the Ardmore based company that provides technologies to improve performance and reduce the price of infrared sensors used in night-vision goggles, guided missile systems and other optical and visual systems. (page 10) With the addition of new awards and additional scholarship opportunities, the Governor’s Cup will continue to create new entrepreneurs and companies that will grow the state’s knowledge economy. Continued on page 24

Sponsorship List Gold SPONSORS ConocoPhillips E.L. and Thelma Gaylord Foundation Greater Oklahoma City Chamber OG&E OG&E Foundation Oklahoma Business Roundtable Silver SPONSORS Chesapeake Energy Oklahoma Department of Commerce State Regents for Higher Education The University of Tulsa University of Oklahoma - Office of Technology Development Bronze SPONSORS American Fidelity Assurance Company American Fidelity Foundation Chickasaw Nation Jim and Jill Williams Oklahoma Center for the Advancement of Science and Technology Oklahoma EPSCoR Oklahoma Natural Gas Company, a division of ONEOK Oklahoma State University Spears School of Business Oklahoma State University Office of Technology Transfer Tulsa Metro Chamber Event SPONSORS Ada Jobs Foundation Arnold Outdoor BancFirst Bio Tech, Inc. COOP Ale Works Dave and Jean McLaughlin Incubator serviced by Central Technology Center in Drumright Meinders School of Business - Oklahoma City University Meridian Technology Center for Business Development Moore Norman Technology Center’s Business Development Center Oklahoma Capital Investment Board Oklahoma City Community Foundation Oklahoma Manufacturing Alliance Oklahoma Publishing Company Public Service Company of Oklahoma Rural Enterprise of Oklahoma The Journal Record The Kerr Foundation The State Chamber Tri County Technology Center’s Economic Development Center TulsaPeople Magazine Oral Competition Luncheon SPONSOR Panera Bread innovators

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Continued from page 23.

PAULSEN AWARD: This year three students competing in the Governor’s Cup each will be awarded $5,000 Paulsen Scholarships by the Oklahoma Business Roundtable. After individual interviews with a panel of OBR members, the students will be awarded the scholarship based on their answers to three questions that focus on building the state’s economy through technology-based innovation. In addition to the scholarships, the students will have the opportunity to share their views on developing the state’s economy when they are invited to address the Oklahoma Business Roundtable during their annual meetings. “We’re proud to offer scholarships through the Paulsen Awards to Oklahoma Governor’s Cup participants and know that the state will benefit in the long run from the energy and unique economic development perspectives these students provide,” said Blake Wade, President of the Oklahoma Business Roundtable.

OGE POSITIVE ENERGY AWARD — Oklahoma’s largest electrical utility will award the OG&E Positive Energy Award. the $5,000 cash prize to the team that is judged to have developed a sound business plan around technology that provides alternative energy, energy generation, energy conservation, new delivery methods or other technology to enhance energy generation, use and infrastructure. The OGE Positive Energy Award also will provide a $2,000 cash award to the faculty advisor of the winning team. The award will be made to a business plan that has commercial viability and capital efficiency, with at least one team member moving forward with the business.

AL TUTTLE BUSINESS INCUBATION AWARD: Named in honor of the late Al Tuttle, a long-time supporter of Oklahoma’s Career and Technology Centers, the award will provide one-year of residency at one of the four participating business incubators. The award includes rent, utilities and furnished space for two people, plus all standard services and training classes available to regular tenants of the incubator. All graduate level teams, including those that aren’t selected for oral presentation round of the competition, are eligible for the award. If the student participants don’t plan to move forward with the business plan, the entrepreneur or researcher with whom they are working also is eligible to receive the award.

Participating incubators are: • Drumright Business incubator, which is serviced by Central Technology Center. • Meridian Technology Center for Business Development in Stillwater; • Moore Norman Technology Center’s Business Development Center; and • Tri County Technology Center’s Economic Development Center in Bartlesville; Graduate level business plans will be evaluated on the following criteria: immediate and long-term market potential; management team; capital requirements and availability; and feasibility of starting a business within three months of the award presentation. “We want to help these plans to really become businesses,” said Brad Rickelman, assistant director of the Center for Business Development at the Meridian Technology Center in Stillwater. “By offering up basically a free office, we’re saying we are ready to put something behind this and make it happen right now.”

“OG&E is pleased to initiate the Positive Energy Award this year as we continue our ongoing support for the innovative ideas and pioneering spirit that have always distinguished Oklahoma,” said Pete Delaney, chairman, president and CEO. “As we continue our efforts to design and deliver energy solutions for the 21st century, we look forward to recognizing and rewarding the best new ideas that this award might inspire.”

2010 Oklahoma Governor’s Cup Timeline Friday, February 26:

Monday, March 24:

Wednesday, April 7:

Saturday, April 10:

i2E Fellow Finalist Interviews

OGE Positive Energy Award Finalists Announced

Friday, April 9:

Thursday, April 15:

Monday, March 8:

Monday, April 5:

OGE Positive Energy Award Presentations

May 18 – 20:

Intent to Compete Due

March 3 - 5:

Written Business Plans Due OGE Positive Energy Award Application Due

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Governor’s Cup Semi-finalists and Finalists Announced

Oral Presentation Business Plan and Presentations Due Paulsen Awards Scholarship Application Due

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Paulsen Award Finalists Announced

Undergraduate Semi-finalists Oral Presentations

Paulsen Awards Finalist Interviews Governor’s Cup Networking Reception

Graduate and Undergraduate Finalist Oral Presentations Donald W. Reynolds Governor’s Cup Awards Dinner Tri State Competition- Las Vegas, Nevada

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i2E FELLOWSHIPS: A major role in achieving the Governor’s Cup mission of developing entrepreneurial talent will be the i2E Fellows program, which returns for a second year to match top students with entrepreneurial Oklahoma technology-based companies. The i2E Fellows program was developed in partnership with the Greater Oklahoma City Chamber and returns after a successful debut in 2009 when it was launched as a pilot program. The fellows earn a stipend of $6,000 for undergraduates or $8,000 for graduate students, with costs shared on a 50-50 basis by the i2E Fellows program and the participating companies.

“The Fellows in our first-year pilot program all reported an overwhelmingly positive experience,” said Rex Smitherman, i2E Vice President for Operations. “They were all placed into early stage ventures where they experienced first-hand the challenges that entrepreneurs face every day. “The program was equally as successful for participating companies, all of which reported that the students completed assigned projects and took on additional responsibilities during the Fellowships. It was a win-win for everyone.”

“We anticipate that the i2E Fellows program will help build a long-term pipeline of entrepreneurs for the state while providing additional resources to assist Oklahoma technology companies,” Smitherman said. “Students gain first-hand exposure to start-up companies and the host businesses gain help with short-term projects and potentially find future employees.”

The Fellowships will begin June 1 and end on Aug. 6. Participating companies and specific projects proposed for the i2E Fellows are: Emotion Media, Tulsa: Emotion Media is a Tulsa-based company founded in 2005 that provides multi-media services to the $7 billion professional photography market. Emotion Media transforms digital photos and video into professional, productionquality media presentations with music, motion, and special effects all in true high definition. The company also offers an integrated, proprietary photo-proofing tool. Emotion Media has more than 1,500 customers, and recently completed its IP development and successful conversion to a Software-as-a-Service model company. Project description: The selected Fellow is expected to make a significant contribution to the company’s expansion into additional markets as it leverages its automated platform. Project scope will likely include market research, feasibility analysis and development of market launch strategy. ENB Science, Ponca City/Stillwater: ENB Science incorporates human pharmaceutical quality and technology for use in companion animal nutritional products. The company has commercialized True-Dose, a liquid, flavored dietary supplement delivered to pet food via a metered dose pump. Through the support of studies conducted by the Department of Veterinary Medicine at Oklahoma State University, True-Dose will have a proven absorption advantage to tablets that are in current use in the supplement category. Project description: ENB Science is seeking a Fellow to work directly with the CEO and Vice President of Marketing to launch a new product. The launch will include basic market research, all marketing materials, as well as negotiations with veterinary practice organizations and distributors. MediaQuake, Oklahoma City: MediaQuake is the parent company of BuzzVoice, which provides text-to-audio technology

for subscribers to its unique service. Buzzvoice converts news and blogs into audio files that can be delivered in real time over computers, iPods, MP3 players or smart phones such as the iPhone. BuzzVoice provides on-the-go audio files from more than 1,400 Internet sources to subscribers worldwide. Project description: The i2E Fellow will help develop a comprehensive analysis to assess potential areas for market development and resource deployment with a strong focus on promoting BuzzVoice with social media technologies. Orthocare Innovations, Oklahoma City: Orthocare Innovations is a leading research organization in the field of orthotics and prosthetics. It is focused on commercializing advanced technologies throughout the product development lifecycle. The company is developing products that monitor, analyze and react in real time to changes in patient physiology, alignment and gait. Project description: The Fellow will work directly with Orthocare Innovations’ Development Manager on strategic marketing initiatives for new-tomarket products. Otologic Pharmaceutics, Oklahoma City: Otologic Pharmaceutics was created specifically to commercialize promising technologies that address novel solution for hearing and balance health. The combined research and business experience of the Hough Ear Institute, Oklahoma Medial Research Foundation and American BioHealth Group have aligned in the Otologic Pharmaceutics to discover and commercialize therapeutic agents to combat the effects of sensorineural hearing loss. Project description: The Fellow will work directly with the company’s CEO, focusing on capital development, project management and competitive intelligence.

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P a r t n e r s P a r t n e r s

i2E: Turning Innovation into Enterprise

www.i2E.org

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.

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. • Attracting and investing risk capital in advanced technology-based 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.

OCAST Statewide Programs: Oklahoma Applied Research Support (OARS)

OCAST Inventors Assistance Service (IAS)

Oklahoma Health Research Program

OCAST Technology Business Finance Program (TBFP)

Oklahoma Nanotechnology Applications Project (ONAP)

Oklahoma Alliance for Manufacturing Excellence (The Alliance)

Plant Science Research Program

Oklahoma Technology Commercialization Center (OTCC)

R&D Intern Partnership Program

Oklahoma Seed Capital Fund (OSCF)

Small Business Research Assistance Program (SBIR/STTR)

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P a r t n e r s

Oklahoma Alliance for Manufacturing Excellence, Inc.

www.okalliance.com

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.

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

The Oklahoma Experimental Program to Stimulate Competitive Research

Oklahoma

www.okepscor.org

Oklahoma EPSCoRâ&#x20AC;&#x2122;s central goal is to increase the stateâ&#x20AC;&#x2122;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.

Greater Oklahoma City Chamber

www.okcchamber.com

The Greater Oklahoma City Chamber works to create value-added 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.

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.

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Tulsa, Oklahoma is home to emerging entrepreneurs and successful start-ups that create jobs, fuel the economy and build the region’s reputation for innovation. » Businesses and entrepreneurs in the Tulsa region are taking advantage of these programs and services provided by Tulsa Metro Chamber: Small Business Resource Center

InternInTulsa.com

Legislative advocacy

Workforce attraction

Research and economic data

ChooseTulsaJobs.com

Existing business development

Let’s Do Business buy-local program

AeroJobsTulsa.com

Regulations, permits, coding and zoning

Site location Tulsa’s Young Professionals

Small business development

Employee relocation assistance Partnering employers with colleges for workforce education and training

Grow with us. Visit GrowMetroTulsa.com or call 800.624.6822 Tulsa Metro Chamber | Economic Development Two West Second Street, Suite 150 | Tulsa, Oklahoma 74103 | 918.585.1201 Jim Fram, senior vice president, economic development | jimfram@tulsachamber.com | 918.560.0231 Kinnee Tilly, vice president, business retention, expansion and small business | kinneetilly@tulsachamber.com | 918.560.0242 Denise Reid, director, talent strategies and recruitment | denisereid@tulsachamber.com | 918.560.0255