i&E Magazine Summer 2009 by Shannon Carr

Summer 2009

iNNOVATORS

Entrepreneurs

Oklahoma’s Advanced Technology Magazine

OrthoCare

New space, new jobs boost prosthetics R&D and economy

Investment Pro’s

Message to Oklahoma

Venture capital leader sees ‘slivers’ of economic optimism

Home Grown

Economic

Development Tulsans energized by new Innovation Institute initiative

Donald W. Reynolds

Governor’s Cup

Competition Oklahoma college students earn big rewards for tech-based business plans OrthoCare Innovations CEO Doug McCormack, front, and COO Doug Wallace

C o n t e n t s

iNNOVATORS

Entrepreneurs

Oklahoma’s Advanced Technology Magazine

C O N T E N T S Introduction

About i2E

i & E Profiles Exerbotics Grocio Merchant Metrix SyntheSized Nano Coatings

6 7 8 9

Economic Development Innovation Institute energizes Tulsa

Entrepreneurs OrthoCare Innovations

Access to Capital VC’s vision for future investment

Outreach OSU Sensor Lab OSU’s Center for Entrepreneurship

20 21

Educational College Students Reap Big Rewards

Calendar of Events

Partners

innovators

Cover OrthoCare 18

Access to Capital

&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 2009 i2E, Inc. All rights reserved.

Oklahoma Governor’s Cup

A B O U T

i 2 E

a MESSAGE FROM THE PRESIDENT

or months, the sounds of construction in the 840 Building in the Presbyterian Health Foundation Research Park signaled the coming expansion and headquarters location for OrthoCare Innovations. The developer of advanced prosthetic technology was following through on an expansion promise made to the EDGE Policy Board last fall when OrthoCare was awarded $1.6 in EDGE Endowment funding. Doug McCormack, OrthoCare’s Chief Executive Officer, pledged to use the EDGE funding to locate the company’s headquarters in Oklahoma City and to begin manufacturing prosthetic devices in the almost 15,000 square feet of space into which the company relocated as of July 1. OrthoCare followed through on that promise Tom Walker and the new HQ is a reality. It means new jobs for Oklahoma and new assistive technology for amputees. In our cover story on OrthoCare for this edition of i&E magazine, McCormack lauds actions taken by the Presbyterian Health Foundation, i2E, OCAST, the University of Oklahoma Health Sciences Center, the Greater Oklahoma City Chamber, Mayor Mick Cornett and others that made it happen. The OrthoCare Innovations story begins on Page 14. This edition of i&E magazine also takes an in-depth look at an economic development initiative under way in Tulsa that involves the business community, civic leaders and area universities. The Oklahoma Innovation Institute takes an inclusive approach that promises to create a new economic engine in the city. Don’t miss our Q&A with Mark Heesen, President of the National Venture Capital Association, who spoke to the i2E Board of Directors this spring and to a select group of tech-based entrepreneurs, economic development leaders and early stage venture funds. Also, the results of the 2009 Donald W. Reynolds Governor’s Cup collegiate business plan competition are in, and we profile the winners. The ideas that flow from Oklahoma’s college campuses are both innovative and inspiring. We can’t wait to see what next year’s contest brings from the fertile minds of our college students across the state. Finally, i&E profiles four of the state’s emerging technology-based companies that are growing their businesses right here in Oklahoma. Their ideas range from computerized weight training equipment to online grocery price comparison to search engine optimization to a chemical coating that leaves cotton material virtually stain proof yet soft and pliable. As always, a common theme emerges from these stories. They are tales of Oklahoma innovators and entrepreneurs who are making a difference in our state’s economy.

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 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

Tom Walker i2E CEO and President

Kelly Ruyle

Administrative Assistant

Cindy Williams Administrative Assistant

www.i2E.org

A B O U T

i 2 E

ABOUT i2E was created in 1997 in response to the Oklahoma Center for the Advancement of Science and Technology’s (OCAST) initiative to establish a center to support technology commercialization. A year later, a program was formed to assist researchers, inventors, entrepreneurs and companies to turn advanced technologies and high-tech start-up companies into exceptional business opportunities for Oklahoma. This program is the Oklahoma Technology Commercialization Center (OTCC). This initiative was taken even further when the OCAST Technology Business Finance Program (TBFP) was created to meet the capital needs of early technology-based enterprises. In 2005, i2E received a grant to manage an annual statewide business plan competition for college students with cash prizes over $100,000. The Donald W. Reynolds Governor’s Cup was designed to encourage students to act upon their ideas and to promote the development and commercialization of technologies being discovered in our universities.

The Oklahoma Seed Capital Fund (OSCF), an innovative, public-private partnership established in 2007, is a $7 million venture capital fund that provides seed and start-up stage equity financing to small, advanced technology, Oklahoma-based companies. In 2008, the SeedStep Angels group was created to meet the early stage funding needs of these emerging companies. Also, the Entrepreneurial Leadership Program, a statewide fellowship program, was developed to match start-up technology businesses with talented students to further commercialization projects. The success of all these programs, managed by i2E, provide Oklahoma entrepreneurs, college students and researchers with the knowledge, skills and access to capital for turning innovations into enterprises………i2E.

i2E BOARD of DIRECTORS Steve Cropper, Chairman; Roy Williams, Vice Chair; Mike LaBrie, Secretary Robert Barcum

Steve Cropper

Merl Lindstrom, PhD

Craig Shimasaki, PhD

Entrepreneur & Investor

Investor

ConocoPhillips, Inc.

InterGenetics, Inc.

Howard Barnett, Jr.

Philip Eller

Dan Luton

Sheri Stickley

TSF Capital, LLC

Eller Detrich, P.C.

OCAST

Sean Bauman, PhD

Marilyn Feaver

Michael Neal

Immuno-Mycologics, Inc.

Southwestern Oklahoma Impact Coalition

Tulsa Metro Chamber

D.C. Bass & Sons Construction Co.

Barbara Hisey

iThryv

C. James Bode

David Hogan

Bank of Oklahoma, N.A.

Hogan Taylor, LLP

Michael Carolina

Philip Kurtz

Bob Berry

OCAST

Hiram Champlin Chisholm Trail Broadcasting

Bob Craine TSF Capital, LLC

Retired Executive

Benefit Informatics

Hershel Lamirand, III Oklahoma Health Center Foundation

Gary Nelson David Pitts Stillwater National Bank

Oklahoma Department of Commerce

Kay Wade

Logan City Economic Development Council

Rainey Williams, Jr. MARCO Capital Group

Roy Williams

Amy Polonchek

Greater Oklahoma City Chamber

The City of Tulsa

Dick Williamson

Steven Rhines

TD Williamson, Inc.

The Noble Foundation

Duane Wilson

Richard Rush

LDW Services, Inc.

The State Chamber

Don Wood

Darryl Schmidt

NEDC

BancFirst

P r o f i l e s

Exerbotics Puts Technology Muscle into Strength Training

Exerbotics Bert Davison, President Year Started: 2005 No. of employees: 3 Office location: Tulsa Product or technology: The world’s first viable fully computerized strength training system that provides superior results in less time. It also offers the first accurate assessment method for an individual’s strength and muscle endurance. Market: Athletics, medical rehab and wellness centers. Future plans: Exerbotics has agreements to provide equipment to NFL teams and will be immediately pursuing the athletic markets. The company will immediately be marketing into the fitness club markets and health-based wellness centers. Funding: Exerbotics has received approximately $2.2 million in equity funding and has been approved for an additional $700,000 of convertible debt financing from existing investors, new investors and through i2E with the Seed Capital Fund. Successes: The company had a sensational debut of its equipment at the 2009 International Health, Racquet and Sportsclub Association convention. “The most exciting development has been to bring our product to a point where it’s functionality matches our original dreams and then having it validated by the industry as a truly breakthrough technology,” Davison said. Website: www.exerbotics.com

xerbotics President Bert Davison has claimed that his company’s new high-tech exercise equipment is “the biggest advancement in strength training – ever,” a boast that some might dismiss as hyperbole. It took only a few days on the floor of a San Francisco convention center to confirm Davison’s assessment. The new fully computerized strength training equipment captures exercise results from users in a database, providing realtime feedback on strength and performance levels. The Exerbotics equipment made its national debut before the sports and fitness world this past spring at the giant International Health, Racquet and Sports Club Association convention in San Francisco. The Tulsa-based company’s new technology proved to be a real showstopper, Davison said. When the original owner of Gold’s Gym, the nation’s first-ever fitness franchise operation, saw the Exerbotics equipment, he called it “disruptive,” and said it will lead the nation’s wellness initiative. When the executive director of the Fitness Industry Suppliers Group saw the Exerbotics fitness technology, he proclaimed it best of show. And when the editor of Muscle and Fitness magazine saw the revolutionary new exercise equipment, he immediately ordered up a photo shoot that featured the world’s strongest man using the equipment. The feature and photos appear in the August issue. “We were basically blown away by the response we received at the convention,” Davison said. “The response at the trade show validated our belief in Exerbotics equipment and the major impact it will bring to fitness, wellness, medical and athletic markets.” The innovative Exerbotics equipment pairs computer feedback with fully computerized equipment invented

by company founders Drs. Kent Noffsinger and William Kraemer. It spent $2 million and three years developing and perfecting the technology, which features five different machines that make a complete circuit. Davison relied on commercialization services provided by i2E to develop its business plan, drawing on expertise from Enterprise Director Richard Gajan and Vice President of Enterprise Services David Thomison to refine its business plan and connect to critical capital sources. “Their experience on what is important for investors in a business plan was very helpful,” Davison said. “Making a concise informative business plan is crucial, and outside review from knowledgeable sources is a must. The new financing was critical to taking our product to market, and i2E helped define our initial market strategy.”

P r o f i l e s

Grocio Offers Online Grocery Price Comparisons for Shoppers

Grocio Gerald Buckley, CEO Year started: 2007 No. of employees: 1 Office location: Tulsa: Product or technology: Grocery comparison shopping Web site Market: Cost-conscious consumers who want to take advantage of the “apples to apples” online price comparisons offered by Grocio.com Future plans: Buckley plans a full launch of Grocio.com first in Tulsa, then to Oklahoma City and on to nationwide markets. Funding: Initial funding came from friends and family; Grocio also won the $30,000 Tulsa Mayor’s Entrepreneurial Spirit Award and an OCAST Technology Business Finance Program award from i2E. Buckley currently is seeking $130,000 in seed funding. Successes: Grocio already has thousands of subscribers without a formal launch of its price comparison site. “Our biggest success to date has been obtaining the validation that comes with the buy-in of complete strangers, all 17,600 of them.” Buckley said. “Grocio has received lots of national media and press coverage, and an appearance on ABC’s ‘Good Morning America’ is set to coincide with the live launch of the site.” Web: www.grocio.com

ulsa businessman Gerald Buckley has taken his online business development experience to the virtual grocery aisle. With a resume that includes Web development for PennWell, Parker Drilling, National United Way, Saint John Medical Center and Thrifty Car, Buckley has created an online grocery shopping comparison site called Grocio.com. All that previous experience is now focused on developing a potentially gamechanging business for both consumers and retail grocers. “It’s the latest venture that keeps me up late at night,” Buckley said of Grocio.com, a concept he conceived eight years ago. Buckley wants America’s grocery shoppers to roll their virtual shopping carts down the online grocery price comparison aisles of Grocio.com where they can literally compare “apples to apples” – and anything else on the shelves. Grocio then adds even more value to the shopping experience: it provides matching coupons to the items on the grocery shopper’s list. A recent beta test of the Grocio.com site yielded valuable insight for Buckley as a true launch nears. A live launch of the service is planned first in Tulsa, followed by Oklahoma City and then to other areas of the nation. “Our beta test was a success and very telling with regard to where we got it right and where we needed to apply a bit more

thought to design and scale,” Buckley said. “The site is ready to launch once we have our final two grocers in the Tulsa market. Grocio.com costs nothing for subscribers to use, and already is providing links to online coupons. The company earns a small distribution fee from product manufacturers for every coupon downloaded from the Web site by consumers. “You can’t imagine how excited I was to deposit our first check from one of our coupon partners,” Buckley said. “Sure, it was a modest amount. To me, it is proof positive our model works.” The benefit to manufacturers is significant because the coupon is matched to a list of products the consumer intends to purchase, so the probability of redemption is much greater than coupons distributed via traditional methods. Recently, Buckley received inquiries from Brazil and Italy about the possibility of licensing his technology. He credits the guidance from i2E and Enterprise Director James Randall for helping shape the company’s business plan. “i2E has helped in so many ways, from encouragement to really tough questions,” Buckley said. “So many other repeat entrepreneurs and angels have critiqued my plan, presentation and term sheet and commented on how well thought out things are. That’s in very large part to i2E and the process.”

P r o f i l e s

Merchant Metrix Lee Roberts,CEO Year started: 1996 No. of employees: 5 Office location: Norman Product or technology: Online stores and Web sites using search engine optimization software developed and patent pending by Roberts. Market: Businesses that depend on visibility in Internet search engine results to generate traffic and sales. Merchant Metrix has clients in 23 states, including 16 in Oklahoma. Future Plans: The company has three more patents for which it plans to file. “One of these affects the Web site, the shopping cart system and actually improves the ability to create loyal customers through a marketing concept that has existed in the offline world but has never been applied to the online world,” Roberts said. Funding: Merchant Metrix received the OCAST Technology Business Finance Program award. “We have one investor right now for $50,000,” Roberts said. “We are trying to find another investor for $250,000 so we can get the second half of the TBFP.” Successes: “We said that with the TBFP award and initial investor that we were going to bring in a sales director, a programmer and finish up Version 4 of our software,” Roberts said. “We have successfully completed all of those elements. We were recognized as a Journal Record Innovator of the Year for 2009 and were voted the No. 1 Web design company in Oklahoma City in 2008 by the readers of OKC Business magazine.” Website: www.merchantmetrix.com

Search Results Soar with Merchant Metrix Software

ee Roberts uses four words to describe the motivation behind his decision to create a Norman-based company in 1996 that became Merchant Metrix: “I love my wife.” Roberts’ wife, Judy, operated a business that depended on Internet sales for a portion of its revenue. Sales weren’t so good. “Her Web site wasn’t performing well because of all the intricacies of programming and Web addresses,” Roberts said. “I knew a lot about search engines, so I decided to create a system for her that would help increase her search engine visibility and increase her sales that way.” Roberts drew on his experience as a systems designer for the Navy and created what is known today as a “search engine optimization” friendly shopping cart for his wife’s Web site. Sales from greendragonherbals.com soared as a result. Judy suggested that Roberts sell his system to other Web site operators and Apple Pie Shopping Cart – the forerunner to Merchant Metrix -- was born. Today, Roberts has filed two patents for the technology that drives Merchant Metrix and plans to apply for three more that expand the Web marketing possibilities for clients. The problem Merchant Metrix attacks for clients – it has customers in 23 states – is that many Web sites have hundreds or

even thousands of pages that may not be visible to the search engines. “That means if the search engines can’t reach all of the pages they can’t index those pages,” Roberts said. ”Without indexing those pages you can’t be found for those products you want to sell. We developed a system that will allow search engines to navigate those pages and make things a lot clearer.” Roberts cited a couple of success stories. A business that sells a certain type of specialty tape was failing in part because it didn’t rank high enough on search engine results to draw traffic. Roberts implemented his strategy and sales topped $250,000 in a very short time. For the Navy ROTC program at the University of Oklahoma, a redesign of the unit’s Web site resulted in an immediate growth of incoming freshman from 16 to more than 40. The assistance provided by i2E in obtaining funding and commercial development advice as been a great experience, Roberts said. Merchant Metrix won a proof-of-concept funding from i2E and matched it with $50,000 from an investor and is seeking another $250,000 in outside investment. “i2E has guided us through some challenging phases of our business growth,” Roberts said. “I look forward to our continued relationship.”

P r o f i l e s

Chemical Coating Protects Cotton Fabrics With Water, Stain Repellent Technology

SyntheSized Nano Coatings Rod Foster, CEO Year started: 2007 Number of employees: 2 Office location: Norman Product or technology: a patented chemical treatment for enhancing fabric performance in the area of water and stain repellency. Market: The clothing and apparel industry. Right now the company is targeting the high-end cotton knit market. “That will be our entry point,” Foster said. Future Plans: “What we envision is that at some point we will be hiring chemists for the company rather than using post-doc or graduate students,” Foster said. “Also, we will bring on marketing and sales people and a technical support group.” Funding: The company has an OARS grant for $300,000, which is being matched by Dr. Edgar O’Rear and Foster. O’Rear had also received a number of research grants around the technology as it was originally developed as an application for metals. “We have been approved for an OCAST Technology Business Finance Program award, “ Foster said. “But we have not taken any dollars there. We are waiting to get samples in hand then go marketing.” Successes: “From the technology standpoint, when we first started this it had literally been done only in beakers, and we have been able to acquire the next step up in a piece of equipment used in textile mills to treat fabric,” Foster said. “We have been successful with our treatment there. We’ve been able to identify chemistry that will repel both oil- and water-based materials.”

oud cheers erupted in Oklahoma City’s Bricktown Events Center when SyntheSized Nano Coatings was named undergraduate winner of the 2008 Donald W. Reynolds Governor’s Cup business plan competition. A team of four University of Oklahoma students wrote and presented the business plan around breakthrough technology developed by OU chemistry professor Dr. Edgar O’Rear. The plan was judged as the best among those submitted by undergraduate teams from campuses across Oklahoma. What began in Dr. O’Rear’s laboratory was now well on its way toward commercialization. SyntheSized Nano Coatings is working to perfect a chemical treatment that promises water and stain repellency for cotton knit fabrics. The OU team of Ben Ikard, team leader, Chas Gilmore, Tyler Ledlow and Brendon Quick won a $20,000 cash award for their work and also competed in the Tri-State Business Competition in Las Vegas. Quick has continued to serve as a consultant for the company. “He would like to step back into the company, and it’s our intention to hire him to do the marketing work and help us move to that next phase,” Rod Foster said. Foster joined the company after serving as a volunteer at the Center for Creation of Economic Wealth and working with the OU students who created the plan

and also helped write a grant proposal. Foster took the CEO position after O’Rear was awarded a $300,000 Oklahoma Applied Research Support Grant. “I told Dr. O’Rear that if you get the grant I’ll form a company with you and we will take this thing forward,” said Foster, a veteran of more than two decades in the medical device manufacturing industry. “We were successful in getting the grant, so we formed the company.” In the year since the Governor’s Cup competition, SyntheSized Nano Coatings has continued to advance O’Rear’s patented technology toward commercialization. The company licensed the technology from OU and signed a contract with North Carolina State University to test its fabric treatment process to simulate textile mill conditions. When the company proves its process can successfully treat large amounts of fabrics rolling through textile mills at high rates of speed, it will then negotiate with apparel brands to apply the coating. A North Carolina-based company already has expressed interest. “The good news is the company sells golf shirts in Oklahoma City and Norman,” Foster said. “They are willing to talk to their customers about being a pilot for some of their shirts with our treatment on them.” Expect more cheers when the first contract is signed with an apparel retailer.

E c o n o m i c

D e v e l o p m e n t

From an Oil Rich Past To a Tech Rich Future W

hen oil was discovered just across the Arkansas River from Tulsa at the turn of the 20th Century, it sparked a flood of people who poured into what was to become known as the “oil capital of the world.” The boom brought more than oil industry wealth to Tulsa. It also created a community filled with entrepreneurs — both wildcatters and business people who served the growing oil industry. In fact, those entrepreneurs built the city into the icon it became, said Barry Davis, managing partner with Davis, Tuttle Venture Partners, a Tulsa-based venture capital firm. “There is no greater entrepreneurial drive than an oil man sinking a hole,” Davis said. Davis is leading a citywide initiative to connect Tulsa’s future with its entrepre-

neurial roots and remake it into a “city of innovation.” Along with Tom Walker, i2E CEO, Davis co-chaired the Step Up Tulsa! economic development task force and is chairman of the Oklahoma Innovation Institute, an economic development initiative that emerged from Step Up Tulsa! Step Up Tulsa! was created by the Tulsa Community Foundation in 2005 and gathered scores of Tulsa area citizens together for a series of brainstorming sessions that yielded “trendbenders,” or areas the group saw as key to remaking their community. The Tulsa Community Foundation is the nation’s largest community foundation. The Innovation Institute has established a mission to create high paying, knowledgebased jobs for Tulsa and the surrounding region and to serve as a catalyst for entrepreneurship.

“We believe that small and emerging growth companies are the engine that will drive us through this economic crisis,” Davis said. The Oklahoma Innovation Institute is a 501 (c) 3 not-for-profit entity that was created to serve as an umbrella organization for the four economic development initiatives created by Step Up Tulsa! Those initiatives are: Tulsa Research Partners, Best Thinking Forum, The Entrepreneurship Center and Community Innovation Fund. Tulsa Research Partners What if scientists at the University of Tulsa collaborated on a research project with their counterparts at the University of Oklahoma-Tulsa, Oklahoma State University-Tulsa and Tulsa Community College in a federally funded project? It could happen when the Tulsa Research Partners becomes a working reality,

E c o n o m i c

D e v e l o p m e n t

“We believe that small and emerging growth companies are the engine that will drive us through this economic crisis” — Barry Davis Davis said. “What we are trying to do is focus on multi-disciplinary and collaborative research, where we can share the researchers,” he said. “OU and OSU can be working on research projects together, for instance, or TU and OSU can be working on projects together, all with technical support from Tulsa Community College.” Tulsa Research Partners is championed by David Greer, executive director of the Institute for Information Security (iSEC) at the University of Tulsa. He envisions a “bottoms-up” effort among Tulsa researchers who will see the value in a multi-university, multi-discipline collaboration. “I think there are a lot of people who see that vision,” Greer said. “We have full support from all the university presidents. We also have great representation from our industry partners and small business. Now

we are positioned to make Tulsa Research Partners truly a valuable resource for them to use.” In addition to the research collaboration, Tulsa Research Partners also is working to establish a fully staffed “grantsmanship” program designed to win major research grants to bring more dollars into the community, Davis said. The consortium took its first steps with a forum in March that featured Dr. Paul Risser, executive director of the EDGE Policy Board, which directs the state-supported, $150 million research endowment fund. The first forum drew 147 researchers and a second in April drew more than 90. Best Thinking Forum Public, civil discourse on important topics of the day will define the Tulsa Best Thinking Forum, Davis said. Described as an “Aspen Institute-like” forum that convenes

experts and community citizens, the Best Thinking Forum will offer opportunities to identify and adopt best thinking skills to address the region’s most critical challenges. Davis was pleased by the large numbers of people who participated in planning sessions for the Best Thinking Forum in which “futures thinking” and forum topics were considered. “We’ve had over 250 people engaged in the Best Thinking Forum,” he said. “We’re excited about dealing with topics that will not only impact the Tulsa region but will impact our neighbors globally. We’re talking about aging issues; we’re talking about environmental issues.” Co-chaired by Dr. Tom McKeon, President of Tulsa Community College, and Phil Dessauer, Jr., executive director of the Community Service Council, the Best Thinking Forum has already convened groups of area Continued on page 12

E c o n o m i c

D e v e l o p m e n t

Tulsa’s research community came together at an April Tulsa Research Partners forum that attracted nearly 150 academic researchers. Continued from page 11

citizens to discuss the concept of “futures thinking” and consider forum topics. “We are working slowly but surely to set up a structure that can oversee this forum and periodically sponsor events that are focused on improving the Tulsa area’s thinking about particular issues,” Dessauer said. “It’s not about preaching to people but giving people the opportunity to participate in discussions and have productive dialogue and be challenged, too, in accepting new

realities and coming up with new ways of thinking about things.” Future topics include advancing safe sources of alternative fuels, the impact of aging on the area, ensuring a strong work force and ensuring the availability of food and water in a changing environment, McKeon said. It’s an ambitious agenda that will contribute to the overall impact of the Innovation Institute on Tulsa life.

Why is the Innovation Institute important to Tulsa’s economy? “In these troubled economic times, the Step-Up Tulsa! program and the Innovation Institute, along with the education and health care initiatives are so vitally important that we not lose the momentum that we have created. This is the time that we’ve got to begin to feed the small business engine that is going to turn this country around. I think that is well understood by the business community of Tulsa.” — Barry Davis, co-chair with Tom Walker, i2E CEO, StepUp Tulsa! economic development task force and chairman of the Oklahoma Innovation Institute How can the Research Partners work to enhance research on various college campuses in Tulsa? “In Tulsa, OU-Tulsa and OSU-Tulsa work very well together, and TU enjoys great relationships with both, we collaborate

“It’s going to help shape our community, improve the quality of life, improve employment, which ultimately lead to healthier lifestyles and just a better community all around,” McKeon said. “It’s a bold approach, but I think it’s right on target.”

with both. I’m very excited about Tulsa Research Partners bringing our researchers together further. It begins with basic research and a wild pursuit of ideas. Once we find a good idea, I think the group of institutions that are collaborating realize the importance of bringing technologies to commercialization. So, the whole notion of research to business creation is driving what’s going on in Tulsa.” — Dr. Steadman Upham, President, University of Tulsa “First of all, we are getting good research infrastructure at each of the Research Partnership institutions. Second, the links between OSU, OU, TU and Tulsa Community College are getting stronger, as well. We really have some great pieces here, and if they are willing to work together it’s a pretty impressive group of programs.” — Dr. Gerard Clancy, President, University of OklahomaTulsa

E c o n o m i c

Entrepreneurship Center “The theory is do you recruit companies to come in or do you grow your own?” Davis said. “Our attitude is you grow your own. I would rather have 20 companies employing 50 people each than have one company employing 1,000.” So, the Entrepreneurship Center design is focused on best-practices, education, promotion and networking to the entrepreneurial community consisting of entrepreneurs, investors and children. Don’t forget the children, Davis said. One way to create future entrepreneurs is to expose young people beginning in elementary school to concepts of business owner-

ship and risk capital, he said. “We are going to have these kids running around the Entrepreneurship Center right along with the entrepreneurs and investors who are being trained,” Davis said. “We’re trying to pass the entrepreneurial flame that really drove and created Tulsa and pass it on to our next generation. Oklahoma is one of the leading states in early childhood development, and we are going to play on those strengths. “Kids need to know that dreams turn into ideas and businesses as early as they can.” Community Innovation Fund Still in the concept phase, the Community Innovation Fund is envisioned as a $30 million fund that will invest in emerging growth companies in the Tulsa region. “What this would be is more of an Angel fund,” Davis said. “It would consist of successful entrepreneurs in the region. It would be focused on Tulsa regional com-

“The fact of the matter is that for national grants, proposals that come from more than one university get a much better reading than those that come from just one school. We need to figure our forums and opportunities to get the faculty together and determine where mutual interests are.” — Dr. Gary Trennepohl, President, Oklahoma State University-Tulsa “It’s building the Tulsa economy, is what it really boils down to. It’s going to shape our community, improve the quality of life, improve employment, which ultimately lead to healthier lifestyles; just a better community all around. It’s a bold approach, but I think it’s right on target. It’s a coordinated and focused effort to advance our economy.” — Dr. Tom McKeon, President, Tulsa Community College

D e v e l o p m e n t

panies, focused on technology-oriented companies but also would look at other emerging growth companies that have differentiated products or services.” The fund also would bring in co-investors from the region or surrounding states that have an interest in the Tulsa area. “The Innovation Fund correlates to all the other activities that we are doing — the thinking forum, the entrepreneurship center — emphasizing the flow of research dollars in,” Davis said. When all the moving parts of the Innovation Institute are in place and up and running, the unique economic development initiative should be creating new Tulsa entrepreneurs and jobs, sparking dialogue among citizens and involving many segments of the community. Some day, Tulsans will look back fondly on the program that helped turn it into a true city of innovation. “Our proudest moment in this city is for the citizens to sit back in another 10 years and say, ‘by God, I helped create this dream,’” Davis said .

“I am very optimistic, and the reason is we have a lot of support outside any one institution or university. This is truly a community effort. It is volunteers who really believe in the vision of helping our economy grow but also in helping our research community grow and thrive.” — David Greer, Executive Director, Institute for Information Security at the University of Tulsa How will the Best Thinking Forum contribute to Tulsa’s growth? “It’s an idea that tries to present to people the notion that there are skills that people can learn and be exposed to and hopefully take serious and use to think more effectively about the future and how we can be more successful in addressing the challenges.” — Phil Dessauer, Executive Director of the Community Service Council of Tulsa .

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

OrthoCare Brings Prosthetics R&D, Manufacturing to Oklahoma

Michael Markmiller, Director of Engineering at OrthoCare Innovations, checks a computer analysis as Paralympic athlete J.B. Bizzell demonstrates the company’s new Compas™ alignment system, an advanced design that provides computer controlled alignment for more natural gait for prosthetic wearers. Watching Bizzell, who won a gold and two silver medals at the 2008 Paralympics in Beijing, is Pravin Chaubey, Electrical Design Engineer, for OrthoCare.

rthoCare Innovations CEO Doug McCormack and two colleagues made several promises last November as they pitched a proposal for $1.6 million in funding from the state’s $150 million EDGE Endowment fund. Standing behind a podium in a board room of the Presbyterian Health Foundation Research Park Conference Center, the OrthoCare executives pledged to establish the company’s headquarters in Oklahoma City, hire dozens of new employees and manufacture high-tech prosthetic devices here if they were granted the funding request. Seated before them at a giant conference table were seven EDGE Policy Board members who silently considered the OrthoCare proposal. After hearing the pitch, Policy Board members questioned the OrthoCare executives about details of the promised new jobs and high-tech prosthetic devices they said they would produce here. Apparently, the board members liked what they heard. Before the day was over, OrthoCare

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

volved in development work with the Johns Hopkins Applied Physics Laboratory on a contract basis. OrthoCare made its entrance into Oklahoma in April 2008 when it bought Martin Bionics, an innovative prosthetic R&D company founded by Jay Martin. The Martin Bionics deal closely followed the purchase of a Seattle-based prosthetic device R&D company the previous October. “What OrthoCare Innovations has been able to accomplish since they acquired Martin Bionics has been astonishing,” said Martin, who now serves as OrthoCare’s Director of Technical Services. “OrthoCare will continue to shape the field of prosthetics nationally and internationally. “This is the beginning of what is to become a foundational time of change for the field of prosthetics.” OrthoCare’s expansion turned what had been a small, Washington, D.C.-based prosthetic device business into a three-headed operation with R&D labs in both Seattle and Oklahoma City. McCormack maintained administrative offices in Washington. McCormack and Doug Wallace, the company’s Chief Operating Officer, will still operate out of the Washington office, but will fly to Oklahoma City Continued on page 16

Angular Displacement (Gyro)

(L e o ase r) fP ro gr es s

Induced Socket Moments (Strain Gauges)

Lin

was celebrating word that the EDGE board had awarded the full requested amount to the company. Its proposal was one of only five from among more than 90 original preproposals that received funding in the first ever EDGE Endowment awards. So, what has OrthoCare done in the ensuing months since the EDGE funding was awarded? Exactly what it promised the EDGE board. The medical device R&D and product development company is adding new Oklahoma jobs, building out manufacturing space and gearing up to produce new computerized prosthetic devices. “We are creating high-end, well-paying jobs here in the Research Park,” McCormack said. “I think we are following through on our commitment to the state and to the EDGE Policy Board.” The company is preparing for a targeted July 1 move into nearly 15,000 square feet of space in the 840 Research Parkway building adjacent to its current Oklahoma City offices. That will nearly triple the amount of space it currently occupies in the park and, more importantly, serve as new corporate headquarters. It will also use the space for R&D into new prosthetic devices, and manufacture its high-tech Compas™ computerized prosthetic alignment system. Employment is expected to grow at the location from approximately 20 when it is opened this summer to as many as 70 people. “The EDGE funding is going to allow us to ramp up much, much more quickly than we would if not for that award,” McCormack said. “We really are doing what we said we would do,” added Carol Sorrels, OrthoCare’s Director of Marketing and Communications. “It’s exciting to have the support and the funding to do it.” In May, OrthoCare announced a deal to acquire a key group from the Johns Hopkins University Applied Physics Laboratory. The not-for-profit research laboratory has developed amazing technologies such as a prosthetic arm that can be controlled naturally by the wearer, providing sensory feedback and a level of control far beyond the current state of prosthetic limbs. McCormack expects the deal to bring at least a dozen employees to the company as well as development work funded by the Defense Advanced Research Projects Agency. OrthoCare already was in-

Ground

Reaction Forces (GRF)

OrthoCare’s Compas™ Points Prosthetics in New Direction The first product that OrthoCare Innovations will manufacture at its new Oklahoma City headquarters is a computerized prosthetic alignment system known as Compas™. It is a hardware and software system that measures the gate and alignment of a prosthetic wearer and allows prosthetists to make quick, precise adjustments and improve the ability to walk naturally. Compas™ works in tandem with the “Smart Pyramid” device that is imbedded near the base of the prosthetic socket and records the angle of the foot and leg as the patient walks. “This is next-generation technology that we will be producing here” said Doug McCormack, OrthoCare Innovation’s co-founder and CEO. “It tells you exactly what adjustments to make, takes the guesswork out of alignment; it makes it objective and substantiated.” Developed by David Boone, OrthoCare’s Seattlebased chief technology officer, the Compas™ and Smart Pyramid System™ have been well received by prosthetic professionals nationwide. It’s just the type of technology envisioned by the EDGE Policy Board when it awarded $1.6 million in EDGE Endowment funding to OrthoCare last November. Continued on page 16

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

Continued from page 15

every other week. David Boone, a co-founder and Chief Technology Officer, continues to maintain the company’s Seattle presence. Other key executives will operate out of the company’s Oklahoma City headquarters. In fact, since the EDGE award was announced OrthoCare has added top level executives to its Oklahoma staff, including Oklahoma native Cindy Thompson as director of finance and administration. It also recruited MIT graduate and California native Michael Markmiller to Oklahoma to serve as its Director of Engineering. “EDGE is allowing us to get those anchor folks in place,” McCormack said. “We are getting directors with very significant industry experience, and they are going to be empowered to build out their own teams as opposed to hiring the lower level folks first.” In Markmiller, OrthoCare added a systems engineer with 13 years of experience in the aerospace industry. He served in senior engineering capacities with Hughes Electronics, Boeing and Raytheon but chose to bring his wife and three children to Oklahoma to work in prosthetics development. Markmiller said he has always been interested in assistive technologies and was drawn to OrthoCare by the “great technologies” under development here. “What I’m hoping to bring to the equation is a disciplined engineering approach to product development,” Markmiller said. “We have some great research going on. We need to translate that to marketable products. “I want to help the team here turn some of their great ideas into mature designs that we can get out into people’s hands and start making a difference in people’s lives.” OrthoCare’s impressive lineup of R&D projects include computerized devices such as the Compas™ system, miniature hydraulic systems that power limb movement and advanced materials to create cooler, cleaner more comfortable interfaces between the patient and the prosthetic device. The company is working in partnership with the Oak Ridge National Laboratories in Tennessee to develop some of the prosthetic technologies. “That has been a very beneficial partnership for us,” McCormack said. “We’re actually funding some work they are doing on our behalf. We are looking at a whole family of products not only on the prosthetic side but the orthotic side, as well – advanced bracing utilizing these technologies to help

OrthoCare was one of the first five companies that won funding from the state’s $150 million EDGE Endowment Fund. “It’s right in line with the EDGE proposal,” said Carol Sorrels, OrthoCare’s Director of Marketing and Communications. “We said that if you give us this money we will manufacture here and hire people to do it. And we’re doing it, just like that.” OrthoCare executives hope the Compas™ system becomes ubiquitous among wearers of lower-leg prosthetic devices. It will add about $1,500 to the typical cost of $35,000 to $40,000 for a hightech prosthetic leg. “We want this to become a standard that is used by patients and practitioners across the board,” McCormack said. “Once we get (insurance) reimbursement, we can envision where we are producing somewhere in the neighborhood of 40,000 units a year.” Compas™ systems will be assembled, packaged and shipped out of Building 840 in the Presbyterian Health Foundation Research Park. Up to 70 people ultimately will be employed in the company’s Oklahoma City corporate offices. “Prosthetists across the nation are responding to this in an overwhelming positive way,” Sorrels said of the Compas™ system. “This is the future, and it is way, way cool.”

Pravin Chaubey, Electrical Design Engineer for OrthoCare Innovations, adjusts the Compas™ alignment system in the prosthetic leg of J.B. Bizzell to provide a more natural gait as he walks.

augment activity or motion.” OrthoCare has accomplished its rapid growth without any outside investment, McCormack said. It has used investment capital from company insiders, awards from OCAST, the National Institutes of Health, Department of Defense, as well as direct contracts for work in collaboration with the Johns Hopkins University Physics Laboratory and sales of its StepWatch product to fund operations. But McCormack also attributes OrthoCare’s growth to support from a host of Oklahoma entities that include the Presbyterian Health Foundation, OCAST, i2E, the University of Oklahoma Health Sciences Center, the Oklahoma City Urban Renewal Agency, the Greater Oklahoma City Chamber of Commerce and Mayor Mick Cornett. “Folks have bent over backward to help us,” he said. “Now it’s our obligation to follow through on what we said we would do. We feel a very strong obligation to follow through on what we proposed that we can do. Now is the time to execute, and we are executing.”

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

A c c e s s

t o

C a p i t a l

Venture Capitalist’s Vision for Future Investment:

‘Clean Tech’ M

ark Heesen repeated two words like a mantra for Oklahoma entrepreneurs during an early May presentation in Oklahoma City: “clean tech.” Heesen, President of the National Venture Capital Association, was invited to Oklahoma to speak to the i2E Board of Directors and also made a presentation at a private networking event for a group of the state’s tech-based entrepreneurs, economic development leaders and early stage venture funds. “Clean tech is really the next area of major venture capital investment,” Heesen said. “What assets do you have in Oklahoma in the clean tech space that from a 10- 15or 20-year perspective that you say sets you apart from other regions? It might not be a

with

those two areas. “A huge amount of what’s happening in the clean tech industry is just what you see in this building,” he said. “It’s better lighting. It’s better carpeting. It’s paint. It’s better architecture as to where you build a building so the sun is at the right direction at the right time. Building materials are a huge part of what’s happening today. Another important area is water purification.” Heesen answered questions during his hour-long Bricktown presentation from an Oklahoma audience of entrepreneurs, venture capitalists and economic development professionals. Below are some highlights:

Mark Heesen

Q: What implications are there for Oklahoma from its economic development infrastructure and entities such as the SeedStep Angels group that have been created to facilitate growth and investment in tech-based startups? A: When you look at it from a long-term perspective, Oklahoma is doing the right things. Are you going to see the results in five years? No. Are you going to see them in 10 years? You will start to see them in 10 years. You have to compare yourselves to places like the Research Triangle Park in North Carolina. It took them 25 years to get to where they are. That is an area that transformed itself from a textile, furniture manufacturing economy and tobacco economy to a high-tech economy. You are seeing VCs getting on planes from all across the country and going to RalieghDurham. So it can happen.

monopoly, but it’s an area you can shine in because you have some expertise in it.” Clean tech implications for Oklahoma revolve around the energy industry that has dominated the state’s economy for decades. In Oklahoma’s case, Heesen called it “brown tech.” “In brown tech, I’m talking about any industries that are taking our existing industry structure and making it more efficient,” he said. “So, extracting oil and gas out of the ground in a more efficient manner; making clean coal. That’s brown technology.” As Heesen defined it, clean technology involves anything that changes the current system of energy consumption. It includes wind and solar energy but goes far beyond

Q: What is Oklahoma’s reputation among the venture capital industry?

Q: What is the scope of the National Venture Capital Association?

A: I think you have to build a reputation in a technology or a field that is something that is unique to Oklahoma. What is it in the infrastructure of Oklahoma that you have that other regions don’t have? Is it something in the ag-bio area; is it something in the clean tech arena with oil and gas?

A: We have 460 VC firms in our membership. That represents about $200 billion under management. In comparison to other asset classes, we’re very tiny. The amount that venture invests in this country is .2 percent of GDP; but 20 percent of all GDP now comes from VC-backed companies.

Q: So what are the implications in that for Oklahoma?

Q: How has current economic environment affected the venture capital industry?

A: When you take it down to Oklahoma, life science continues to be extremely, extremely important area for VC investment. You saw a third of our money go into the life sciences consistently over the last few years. I think that is going to continue. There is a little bit of a shift on where that money is going, a little bit more to medical devices, a little bit more in later stage biotechnology.”

A: I consistently hear around the country that venture capitalists think that we have hit the bottom and we are scratching our way out. We aren’t leaping out. We are at the point where there are at least slivers of optimism. There is good reason for that because, frankly, the entrepreneurs that are out there today trying to grow a company or create a company are not the typical entrepreneurs from the late

A c c e s s

1990s or early 2000s. People who are out there today are much more established individuals who understand that it is extremely hard to be an entrepreneur, that failure is involved and that it is a lot of hard work. The entrepreneurs out there today have fires in the belly and are much more realistic. Venture capitalists and angels are much more amendable to working with those kinds of folks vs. entrepreneurs who said “if you don’t take my deal I know I can take it down the street and somebody’s going to give me money.” That’s not around anymore.

t o

C a p i t a l

Funding Oklahoma’s Technology-Based Companies OCAST Technology Business Finance Program (TBFP) Provides proof-of-concept funding. As of late June, the TBFP had awarded $800,000 to eight companies. Managed by i2E, Inc., the TBFP is funded by state appropriations through the Oklahoma Center for the Advancement of Science and Technology.

Q: You recently participated in the annual meeting of the Angel Capital Association. What is the state of the relationship between venture capitalists and angel investors? A: I think the relationship between venture and angels has gotten a lot better. There was no question there was a much-more love-hate relationship during the bubble (of the early 2000s). I think you’ve seen pretty dramatically over the last couple of years that there is much more camaraderie and professionalism on both sides. Having an entity such as the Angel Capital Association and professionals like John May and others out there teaching courses has helped the process. The reality is that angels are needed today more than ever before. I think when it was a loose band and no one knew them, it was hard to figure out the impact. But now that there are numbers that people are tracking and deals that are being tracked, I think the venture capital community is taking much more note of it. And we are seeing VCs who have left the industry becoming part of the angel community, too.

Oklahoma Seed Capital Fund (OSCF) Provides seed and start-up stage equity financing. At the end of FY2009, the OSCF approved and closed ten investments in seven companies. 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 and Technology and other co-investors.

Q: What are the looming trends in the venture capital industry? A: I have said for years that I see this industry becoming a barbell. You are going to see very large funds that raise $500 million or more be stage agnostic and geography agnostic. They will have offices on east and west coasts and maybe overseas. Simultaneously, you are going to see funds raised that are going to be geographic- and sector-specific funds that are going to raise $25 million to $75 million and say that we are going to invest within a 500-mile radius and we are going to invest in life sciences only. We already have started to see this.

O u t r e a c h

OSU Sensor Lab: High-Tech Business

Generator

ONCA CITY – The new ernment buyers along the way. OSU-University MultispecEventually, the UML will oftral Laboratories facility here fer business incubator space to is full of contrasts with links to facilitate growth of high-tech Oklahoma’s oil economy of the start-up companies. It also operpast and to its high-technology ates satellite locations in Stillfuture. water, Chilocco and Lawton. Abandoned chemistry labs, Oklahoma college students unused for decades, domiwill benefit from the experience nate much of the three-story, of working the UML because of 72,000-square-foot-facility, its close ties with defense and sewhich was donated to Oklahocurity agencies, McKeever said. ma State University in 2006 by Security clearances earned while ConocoPhillips Co. in college will jump-start careers But on the second floor of the after graduation. “Research East” building are four “One of the things we want new laboratories that feature the to do with our students is to get latest equipment for safely testthem early into the classified Shown in front of the OSU-University Multispectral Laboratories ing and calibrating sensors that world,” he said. “That will give in Ponca City are Tim Reynolds, left, Associate Laboratory detect explosives, chemicals and them an enormous advantage Director of Operations; and Dr. Stephen McKeever, Executive biological agents. when they leave here if they Director and Vice President for Research and Technology Partially renovated with $10 want to look for jobs related to Transfer at Oklahoma State University. million provided by Conocothose kinds of work.” and new businesses coming in to Oklahoma Phillips, the Ponca City DeThe lab also has been acceptvelopment Authority and a state appro- because we are here.” ed into the OCAST Internship program for McKeever and Tim Reynolds, Associate the next two years. priation, the OSU-University Multispectral Laboratories was established as a national Laboratory Director of Operations, recently While the UML gained its “certificate center for sensor and security system testing led a tour of the massive structure, which of occupancy” to the Ponca City facilsits on the campus of the former Conoco ity in February, building renovation is far and training. “The government will want an indepen- Inc. on the south edge of Ponca City. from complete, Reynolds said. Only 14,000 The UML operates as an OSU-owned square feet has been refurbished, and redent verification that the sensors work as advertised, and that’s what we would be,” non-profit 501(c) 3 LLC operated under a maining lab space looks almost exactly as said Dr. Stephen McKeever, the UML’s contract by Oklahoma-based Triton Scien- it did when OSU took over the building in Executive Director and Vice President for tific. Reynolds is one of four founding mem- 2006. Research and Technology Transfer at OSU. bers of Triton. An additional $12 to $15 million is “We are a company focused on defense, needed to complete the renovation and “We will test, evaluate and certify on behalf of the government and say, ‘yes, this intelligence, security and the energy sec- equipping of the Ponca City campus, Reyntors,” Reynolds said. “The whole idea here is olds said. works.” The UML already has established a na- to speed up this process of taking good ideas So far, business has been so brisk that tional presence for itself, generated millions and getting them out into the market place Triton officials have increased the projected of dollars in contract revenue and ultimately a whole lot faster than we currently do.” number of personnel it eventually expects While the UML works closely with De- to employ from 79 to about 130. will provide training and job opportunities for Oklahoma college students, McKeever partment of Defense and other federal agen“We want this to be a science and techcies as a “trusted agent” for testing and eval- nology go-to place, not a flyover place en said. “We are just delighted with the success uation, its facilities and experts are open to route to Albuquerque, N.M., or Livermore, of the UML and the spotlight that it has Oklahoma entrepreneurs, McKeever said. Calif.,” Reynolds said. “There is a whole put on the university,” he said. “It will pro- The laboratory will help small companies lot more going on in Oklahoma than three vide good, high-paying jobs -- $70,000 and test and develop their sensor technologies good football teams.” upward -- with new business growing here and even connect them with potential gov-

O u t r e a c h

OSU’s New

Entrepreneurial Lifestyle: Academic Department, Center To Create Spirit of Entrepreneurship on Stillwater Campus

TILLWATER — Dr. Michael Morris wants future entrepreneurs on the Oklahoma State University campus here to eat, sleep and breathe entrepreneurship. So, OSU is making it easy for students to live the entrepreneurial lifestyle: it is launching an entrepreneurship dormitory on the Stillwater campus. Life in the dorm will literally revolve around entrepreneurship with courses taught there, ongoing programs such as “idea jam sessions” regularly scheduled and social entrepreneurship opportunities in which students work with the financially disadvantaged. “The formal name is the Creativity, Innovation and Entrepreneurship Living and Learning Community,” said Morris, who is a professor, N. Malone Mitchell Entrepreneurship Chair and head of OSU’s new Department of Entrepreneurship. “We want to create a living environment where students are surrounded and reinforced continually in terms of entrepreneurship, innovation and creativity,” he said. “And they don’t need to be business students. They can be journalists; they can be artists; they can be engineers.” Morris joined the OSU faculty January 1 as Director of the Entrepreneurship Department, which will offer an undergraduate major in entrepreneurship, as well as minors for both business and non-business students, a new MBA concentration and a new Ph.D. program. “In terms of dedicated curriculum for entrepreneurship, this is the go-to place,” he said. A $28.6 million gift from Texas oil and ranching alumni Amy and Malone Mitchell enabled OSU to launch the new Department of Entrepreneurship along with a new Riata Center for Entrepreneurship that is located in the OSU Spears School of Business.

Dr. Michael Morris, chair of Oklahoma State University’s new Department of Entrepreneurship, is shown with Nola Miyasaki, director of OSU’s Riata Center for Entrepreneurship.

Both Morris and Entrepreneurship Center Director Nola Miyasaki were recruited to OSU from Syracuse University, where they built a similar entrepreneurship program over the past seven years. While the Department of Entrepreneurship will develop curriculum and offer academic degrees in entrepreneurship, the Riata Center for Entrepreneurship will focus on outreach. Even before it moved into office space in the first floor of the Spears School of Business building, plans were laid for several entrepreneurship initiatives both on campus and off. For instance, on campus, a business plan competition is planned that will offer $40,000 in prize money. Business incubators for both students and OSU faculty are in the works. And the Center will run an initiative called the Riata Entrepreneurial Internship Program. Off campus, the plans are expansive. The first Cowboys Entrepreneur Boot camp is planned this fall in Tulsa with a second planned for Oklahoma City next spring. “This will feature our best faculty, our best teachers and some of the coolest entrepreneurs in the state,” Morris said. “It’s a high intensity, six Saturday morning exposure to the creation of a growth oriented business.” There is more. The center will host a national program called the Experiential Classroom this fall for entrepreneurial faculty from around the world. It’s a best practices program on teaching and building entrepreneurial programs. In January, OSU’s Center for Entrepreneurship will host its first disabled veterans entrepreneurship boot camp for veterans returning from Iraq and Afghanistan. “It’s an intense program totally free to veterans,” Morris said. “These guys have paid a great price for their country, so it is time we give back to them.”

A program also is under development in which the center will deliver entrepreneurship programming to Native Americans living in Oklahoma. The Center for Entrepreneurship also will be involved in technology commercialization for both OSU faculty and for technologies developed anywhere in Oklahoma. Ultimately, the center will work to build a venture capital fund as well as develop a network of angel investors. A key to everything offered by OSU’s Center for Entrepreneurship and its Department of Entrepreneurship is what Morris called “experiential learning.” Students will learn by doing, whether that is taking entrepreneurship skills to the financially disadvantaged or helping startups get off to a solid start in a business incubator. In fact, Morris will lead a trip to South Africa this summer to provide assistance to local entrepreneurs in a poor township in that country. The trip was a sellout with 15 students signed up by early spring. Morris envisions OSU’s Entrepreneurship program involving 1,000 students within three years, but said that every student will be touched by the entrepreneurship spirit that will grow on the OSU campus. “The future of the state is entrepreneurs who create businesses that are Oklahoma based that create wealth and employment for Oklahomans,” he said. “The universities have to step up to the plate in terms of not being simply ivory towers but taking some responsibility for economic development and innovation and advancing technologies in Oklahoma. “I think the University is committed to this vision,” Morris explains, “and that together, we can do something special.”

E d u c a t i o n a l

Donald W. Reynolds Governor’s Cup

Business plan competition rewards Oklahoma’s most promising future entrepreneurs

Nicholas Harrison, one of two Governor’s Cup participants who won $5,000 scholarships from the Oklahoma Business Roundtable, addresses the organization’s members at its annual meeting in Tulsa in June.

he rewards were big for the top teams of future Oklahoma entrepreneurs in the fifth annual Donald W. Reynolds Governor’s Cup Collegiate Business Plan competition. Over $100,000 in cash big. Each of the winning teams had something in common: They identified a problem and articulated a creative way to solve it. A team of students called Hexakit from Oklahoma City University’s Meinders School of Business claimed first place in the graduate competition with a business plan that proposes to commercialize a generic version of a heart imaging agent. Their technology would help cut costs for heart imaging patients by replacing a name brand drug that recently went off patent. In the undergraduate division, Renephron Pharmaceuticals from the University of Oklahoma’s Center for the Creation of Economic Wealth won with a business plan that proposes to commercialize drug therapies for patients suffering from polycystic kidney disease and other inflammatory diseases. Each of the winning teams earned $20,000 in cash awards for their business plan. Their faculty advisers won $1,500. Innovative Solutions from Oklahoma State University, won $50,000 of in-kind services

for their business plan, which proposed to commercialize a patent-pending, closed design intravenous IV and syringe. And two students each won a $5,000 scholarship provided by the Oklahoma Business Roundtable to continue their education at any Oklahoma college or university of their choice.

Business Roundtable Scholarships Further Education for Two

Timothy Harlin with Hexakit, and Nicholas Harrison with Bio-Oil Extraction were each awarded $5,000 Business Roundtable scholarships at the Governor’s Cup Awards Dinner. The students won the award in a competitive process and had the opportunity to give a five-minute presentation at the Oklahoma Business Roundtable annual meeting. Harlin, one of 10 children who was homeschooled until college, has competed in an international business plan competition in Singapore, and wants to create good in the lives others through entrepreneurial opportunities. Harrison served in the Army in Alaska and the National Guard in Afghanistan, ran for Oklahoma state legislature when he was just

21 years old, and is pursuing dual advanced degrees in business and law. “Our judges have been so impressed with the individuals as well as the business plans and the products they were presenting that in 2009, the Roundtable expanded from one to two scholarships,” says Don Paulsen, president of the Oklahoma Business Roundtable. “The increased interest in the scholarships and the students that are coming forward with very interesting projects and business plans are very exciting to our Roundtable members.” The Oklahoma Business Roundtable, formed in 1991, is a non-profit public/private partnership. The Roundtable’s primary mission is to assist the governor and the Oklahoma Department of Commerce by supporting and encouraging business investment and jobs in the state. “It’s great that students like us still working on their college education will be able to talk to Oklahoma business leaders and give them our perspective,” said Harrison.”It’s a unique opportunity. Added Harlin, a junior accounting major at OCU: “I’m honored and I feel that my academic work and involvement in the community now reflects their support and I take that seriously.”

A B O U T E d u c a t i o n a l

Chas Craig pitches the Innovative Solutions plan live to the audience during the 5th Annual Governor’s Cup awards dinner. His team won the Innovation Award which provides $50,000 of in-kind commercialization services. Chas plans to continue working with the inventor Rob Perry and develop the plan into an Oklahoma technology-based company. In the first five years of the business plan competition, more than 650 Oklahoma college students outlined 136 innovative ideas and competed for $700,000 in cash awards, scholarships and fellowships.

New catheter design focuses on safety, functionality, and ease of use.

OSU finance and accounting senior Chas Craig led the Innovative Solutions team and plans to continue on with the company. “Our product offers a better way to perform one of the most common invasive medical procedures—inserting an intravenous catheter,” Craig says. “We use the same materials with a new design that makes the catheter more functional. You want to get a catheter in the vein on the first try, and our catheter makes it much easier to accomplish that.”

i 2 E

Governor Brad Henry congratulates Timothy Harlin as he accepts his award. Also pictured are Paul Poputa-Clean and Bridget Shuck. All three of these Oklahoma City University students were awarded first place in the graduate division for their plan Hexakit. The Innovation Award is offered to the business plan in the Governor’s Cup competition judged best poised for commercialization and that has at least one member of the team moving forward with the company. The award process is separate, but in concurrence with the Governor’s Cup and is open to all students participating in the competition. As the winning team, Innovative Solutions, L.L.C. receives up to $50,000 of in-kind services provided by local industry experts. These services include tax consulting from Cole and Reed, commercialization services from i2E, Inc., marketing and branding from Jordan Associates, human resources consulting from Partners, legal consulting from Tomlinson and O’Connell P.C. and networking opportunities from the Oklahoma Business Roundtable.

To compete for the Innovation Award, interested students completed a separate award application. Recipients of the Innovation Award whose business plan utilizes university based technology must own patents or have licensed their technology before the innovation award can be utilized. The catheter is one of several medical inventions created by Rob Perry, M.D., founder of Innovative Solutions by RJP. Perry earned his undergraduate degree from Oklahoma State University and his medical degree from the University of Oklahoma. “We need to make the 510K filing and complete the working prototype,” Craig says. “The plan is to outsource manufacturing to a site that is already FDA approved. With this product, manufacturing costs are low. We plan on investing in marketing a great deal in the early years to build a brand name.” Continued on page 24

E d u c a t i o n a l

Continued from page 23

Hexakit plans to commercialize a generic drug used to investigate damage caused by heart attacks.

Hexakit’s winning team was composed of Paul Poputa-Clean (team leader), Bridget Shuck, and Timothy Harlin, along with faculty adviser Robert Greve. “I’ve taught for ten years and I haven’t come across too many students like these,” says Greve, who is assistant professor of IT at Oklahoma City University. “They did an outstanding job. They worked hard. They are excellent students, work well together, write well, and present well. They are a terrific team.” Greve has sponsored Governor’s Cup teams for the last four years. “Even the teams that don’t make the finals have learned a great deal,” he says. “The competition integrates the learning experience with all the business disciplines required to commercialize a technology in the real world. The competitive experience motivates and brings excitement to that learning.” At OCU, participation in the Governor’s Cup is in addition to the students’ regular course work. “There isn’t a specific class,” says Greve. “We publicize the Governor’s Cup, that we are putting together teams, and encourage students to participate.” The Hexakit team, which began working on their ideas at the end of 2008, is a little unusual as graduate competitors go in that Harlin and Shuck are both undergraduates. “Since June of last year, I had been thinking about getting a team together to compete in the graduate process,” says Poputa-Clean, who had responsibility for the technical aspects of the plan and will graduate in December with an MBA degree. Poputa-Clean teamed first with Harlin, a junior accounting major whose team placed third in the 2008 undergraduate flight of the Governor’s Cup and went on to compete in an international business plan competition in Singapore. “Timothy really wanted to do it again. We are very lucky to have him,” Poputa-Clean says. “He took care of the accounting and financials of our plan. It is so important to have someone who understands the numbers and supports the numbers—so many of the questions are related to financials. Then Timothy and I had a good discussion and took steps to recruit Bridget because marketing and branding is heavily involved in this plan. They

Oklahoma teams win second place honors in the undergraduate and graduate division of the Tri-State competition. Left to right: Ben Ikard, Juan Diego Alonso, John Woodson, Paul Poputa-Clean, Timothy Harlin and Bridget Shuck. are both undergraduates, and in winning the competition, they beat out Ph.D. candidates.” Earning second place in the graduate division was Digital Native Learning from the University of Oklahoma, while third place was won by Bio-Oil Extraction, also of OU.

Renephron seeks longterm solution for PKD suffers.

Renephron Pharmaceuticals was composed of University of Oklahoma students John Woodson (team leader), Juan Diego Alonso, Sam Galoob, and Ben Ikard. Faculty adviser was Daniel Pullin, OU’s vice president of technology and business development and adjunct professor of entrepreneurship at OU’s Price College of Business. “I am a huge supporter of the Governor’s Cup. It is an unmatched student experience in that the competition enables students to develop the skills that are most valued in the private sector,” says Pullin, OU vice president of technology and business development and adjunct professor of entrepreneurship at OU’s Price College of Business. “What continues to surprise me,” he continues, “is the annual growth in competitiveness of the teams, the increasing sophistication of business concepts, and the ability of the students to deliver effective presentations of those opportunities.” The Renephron team worked with the Polycystic Kidney Disease Foundation to estimate that about 600,000 people with PKD are affected by conditions that may be treatable with the drug therapy it was proposing to commercialize. “The main purpose of Renephron Pharmaceuticals represented in our business plan is to use the PKD market to establish ourselves in the pharmacology industry and then use the money from either acquisition or licensing to help fund drugs for diseases with more mainstream market appeal such as

diabetes or cancer,” Ikard said. “What made this team special was a combination of three traits that are uncommon for individuals of their tenure,” Pullin said. “Each member displayed a tremendous amount of intellectual curiosity. They asked tough questions. Their pursuit of knowledge made them look for new directions for the technology and prepared them well for the competition. Second, they have maturity beyond their years. They are confident presenting their ideas; handle questions and challenges competently, and have a belief that their thinking is a correct path forward for the technology. Finally, they have a good old-fashioned work ethic.” Second place in the undergraduate division went to DustDown from OU, while Fifth Slope, also from OU, claimed the third place trophy.

The rewards didn’t stop in Oklahoma

Oklahoma Governor’s Cup teams stepped up to the bigger stage at a Tri-State competition in Las Vegas taking home second place honors in both graduate and undergraduate divisions. The Tri-State competition brought together the top two teams in graduate and undergraduate divisions from business plan competitions in Oklahoma, Arkansas and Nevada. The Las Vegas-based Donald W. Reynolds Foundation sponsors business plan competitions in each state, as well as the TriState competition. Claiming second place in the Tri-State competition graduate division was Hexakit and second place in the undergraduate division went to Renephron Pharmaceuticals. Oklahomans should be very proud of our competing students. They worked hard, represented our state with pride and brought home $30,000 in cash awards. .

E v e n t

July

August

July 15 i&E Luncheon Tulsa

August 11 OCAST OARS Workshops

July 15 Greater OKC Chamber Mega Lunch

August 13 OCAST OARS Workshops

July 16 OCAST Intern Workshops July 21 OCAST Intern Workshops July 22 The State Chamber Grant Writing Bootcamp July 23 OCAST Intern Workshops July 28 OCAST Intern Workshops July 30 OCAST Intern Workshops

August 18 OCAST OARS Workshops

C a l e n d a r

OCAST EVENTS The Oklahoma Health Research Program (OHR) funds projects for one to three years at a maximum level of $45,000 per year. Eligible applicants are Oklahoma universities and colleges, non-profit research foundations and commercial enterprises in Oklahoma. Proposal preparation workshops are presented to assist applicants. Scientists and engineers who are within four years of establishing their Oklahoma research presence are eligible for a maximum funding level of $100,000 per year. Contact Michelle McFarland at 405-319-8408 or email mmcfarland@ocast.state.ok.us.

The Oklahoma Plant Sciences Research (OPSR) program supports basic and applied research in the field of plant sciences by allocating resources according to merit, promoting collaborations and leveraging federal and private resources. Eligible applicants include Oklahoma scientists who conduct basic and applied research in the field of plant sciences. Applications will undergo peer review and funds will be awarded based on scientific merit, collaborative effort and the leverage of federal and private funds. A dollar-fordollar match is required for the applied applications. Contact Jessica Vinson at 405-813-2412 or email jvinson@ocast.state.ok.us.

The Oklahoma Nanotechnology Applications Project (ONAP)

August 19 i&E Luncheon OKC August 20 OCAST OARS Workshops August 20 Tech Night Out OKC

Sept September 8 The State Chamber Tulsa Fall Job Fair September 16 i&E Luncheon Tulsa September 17 Tech Night Out Tulsa

assists qualified Oklahoma companies with the process of applying nanotechnology through development and manufacturing to improve current products or processes or create new, cutting-edge products or processes. Eligible applicants include Oklahoma businesses, Oklahoma colleges and universities. Contact Jessica Vinson at 405-813-2412 or email jvinson@ocast. state.ok.us.

The R&D Intern Partnerships (RDIP) program supports internships between local industries and two and four year colleges and universities. Eligible applicants include Oklahoma public or private colleges or universities, non-profit research foundations and private enterprises - a firm with its principal place of business in Oklahoma. Contact Michelle McFarland at 405-319-8408 or email mmcfarland@ocast.state.ok.us, or Arnie Hagen at 405-326-4675 or email at aphagen@ocast.state.ok.us.

The Oklahoma Applied Research Support (OARS) program helps universities, foundations and businesses fund cutting-edge research that will benefit Oklahoma’s economy. Eligible applicants include Oklahoma public or private colleges or universities, non-profit research foundations and private enterprises - a firm with its principal place of business in Oklahoma. Contact Michelle McFarland at 405-319-8408 or email mmcfarland@ocast.state.ok.us.

E Luncheon Series

As a part of i2E’s efforts to promote Oklahoma’s innovation economy and growing entrepreneur sector, the innovators &Entrepreneurs luncheon series is designed to help facilitate and promote technology commercialization and economic development. The events are presented by the Oklahoma Technology Commercialization Center and sponsored by the Greater Oklahoma City Chamber of Commerce and the Oklahoma Bioscience Association.

Tech Night Out Networking ReceptionS These free receptions bring together over 150 entrepreneurs, investors, community leaders and service professionals to network and build relationships to increase and strengthen the economic development momentum in Oklahoma. These events are hosted in both OKC and Tulsa.

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)

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.

Creative Energy for a new generation in Education.

Imagine a building filled with creative energy and technology. A total integration and collaboration of Communications, Digital Media, and Traditional Visual Arts. • Real-world-style working classrooms • Multi-disciplinary instruction • 250-person event center

• Tulsa’s first “green” rooftop

A new era in education.

A truly inspirational, transformational approach to education.