LIFELONG INNOVATION AT THE UNIVERSITY OF IOWA AND BEYOND
ANNUAL REPORT | FISCAL YEAR 2017
THANK
YOU
to all the mentors, speakers, judges, & friends of Iowa JPEC
who volunteered their time to support and inspire individuals through our academic and community programs over the past year!
Thank you to all the movers and shakers that help make the John Pappajohn Entrepreneurial Center at the University of Iowa a leader in innovation! STAFF
David Hensley Lynn Allendorf Dawn Bowlus Dimy Doresca Paul Heath Phil Jordan Jeff Nock Bob Walker Tarri Furlong Kady Light Kelsi Ludvicek Kate McKenzie Annette Schulte Kristen Tobert Patricia Weiland Patricia Whidby
FACULTY
Gregg Barcus Keith Chiavetta Dave Collins John Courtney
Dan Curran Lee Eilers John Engel Leslie Flynn Rob Gettemy Elizabeth Hallgren Kimm Harris Scott Hauser Kurt Heiar Dennis Jordan Kevin Krause Rich McCarty Todd Reding Wade Steenhoek Joe Sulentic Michele Williams
ADVISORY COUNCIL Ben Anderson Tom Bedell John Buchanan Tom Cardella Chaden Djalali, Dean
Sarah Fisher Gardial, Dean Jared Garfield Bruce Harreld, President Josh Krakauer Kevin Krause Patricia Miller Roby Miller John Pappajohn Ravi Patel Brad Phillips Anne Price Daniel A. Reed Jean Robillard Tim Rypma Don Schoen Alec B. Scranton, Dean Dennis Sparks Jason Trout Zac Voss Laura Westercamp
A NOTE FROM THE EXECUTIVE DIRECTOR
CREATING LIFELONG PARTNERSHIPS
The University of Iowa’s John Pappajohn Entrepreneurial Center (Iowa JPEC) is committed to delivering creative entrepreneurial education to students, faculty, and community members—all aimed at accelerating innovation, preparing entrepreneurial leaders, and fostering economic development.
• COMMUNITY ENGAGEMENT: Venture School’s were held in 5 locations across the state and helped 82 entrepreneurs launch businesses; 63 small businesses were assisted through the business consulting program; 895 total clients were assisted through a variety of community programs.
Our team of outstanding faculty and staff are proud to share this annual report with you that describes our program’s impact and shares stories of our alumni and friends. Highlights include:
The University at large, Tippie College of Business, and Iowa JPEC are developing plans for an innovation space that will bring together students, faculty, entrepreneurs, startups, community members, alumni, and other like-minded innovators and creators. Our goal is to create a world-class facility and programming where solutions to significant problems are identified, groundbreaking innovations are explored, new products and services are developed, and sustainable impact is made.
• K-12 EDUCATION: the Jacobson Institute for Youth Entrepreneurship celebrated its 10th anniversary; the STEM Innovator initiative has impacted 18,539 youth in FY 2017. • UNIVERSITY ACADEMICS: in just two years, over 600 undergraduate students have chosen to pursue our new undergraduate major; we launched an alumni-student mentor program to assist graduating seniors in obtaining high quality career opportunities; and Dr. Michele Williams joined our faculty as the first John L. Miclot Faculty Fellow in Entrepreneurship.
We cannot achieve transformational success without significant support and participation from our alumni and friends. If you would like to join us on this journey, please contact me at david-hensley@uiowa.edu or at 319-335-1022. All the best,
• STUDENT VENTURES: the student founded company, SwineTech, placed in eight national business model/plan competitions; the Founders Club supported over 130 student ventures; and over 70 entrepreneurs and business leaders provided mentoring to student startups.
Iowa JPEC | FY 2017
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ANNUAL REPORT
FY 2017 IMPACT ACADEMIC REACH
4,215
STUDENTS ENROLLED IN ENTRE COURSES
SUPPORTING NEW VENTURES
525+ STUDENT
BUSINESSES
SUPPORTED BY THE FOUNDERS CLUB SINCE IT WAS ESTABLISHED IN 2004
>
30,000+ YOUTH IMPACTED
ENTREPRENEURSHIP COURSES OFFERED
THROUGH THE JACOBSON INSTITUTE IN FY 2017
> 136
DIFFERENT MAJORS AND CERTIFICATES ACROSS UI’S CAMPUS
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Iowa JPEC | FY 2017
12,500+ HOURS DEDICATED TO SUPPORTING IOWA STARTUPS & BUSINESSES
182
IOWA JPEC STUDENTS REPRESENT
COMMUNITY OUTREACH
$135K+ 51,792 INDIVIDUALS IN SEED FUNDING GIVEN TO SUPPORT NEW UNIVERSITY OF IOWA VENTURES
IMPACTED
BY IOWA JPEC PROGRAMS IN FY 2017
K-1 2 O U T R E AC H
10 YEARS OF INNOVATING YOUTH The Jacobson Institute celebrated the 10th anniversary of its endowment by the Richard O. Jacobson Foundation this year. In honor of the milestone, the Jacobson Institute celebrated its work and successes in K-12 innovation and entrepreneurship – including creation of STEM Innovator® and BizInnovator® professional development and curricula for teachers – with a special event July 10 at Big Grove Brewery’s Iowa City location. “The generous gift from the Jacobson Foundation has and continues to help us grow. We were thrilled to mark the occasion and celebrate our achievements with friends and partners who have been a valuable part of our success,” said Jacobson Institute Director, Dawn Bowlus.
The Jacobson Institute announced at the anniversary celebration that Leslie Flynn, Ph.D. (shown above on right), will now be working with the Jacobson Institute as an Iowa JPEC faculty member. Flynn is an expert in STEM innovation, entrepreneurship and education, and she joined the team in August.
Special guest speaker for the evening was Big Grove’s Nate Kaeding, local entrepreneur and former Hawkeye and NFL football player. Additional distinguished speakers were Iowa JPEC Executive Director David Hensley, Tippie College of Business Dean Sarah Gardial, and Leslie Flynn, Ph.D., co-creator of STEM Innovator® and STEM innovation and entrepreneurship faculty member. Speakers stressed the value of the Jacobson Institutes’s programming and the vital importance of introducing entrepreneurship and innovation concepts to kids before they reach college. Also among the estimated 100 guests that night were STEM Innovator® and BizInnovator® teachers from across Iowa; business and industry partners from the community; University of Iowa faculty and staff; representatives of Sen. Chuck Grassley and Rep. Dave Loebsack; and Jorge Valdez, Ph.D., education program advisor for the U.S. Patent and Trademark Office, a major STEM Innovator® partner. Many of the teachers were on campus that week for the STEM Innovator® Institute 2017 training sessions. Iowa JPEC | FY 2017
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G LO BA L O U T R E AC H
PAPPAJOHN INSPIRES
AFRICAN FELLOWS For the second year in a row, 25 Mandela Washington Fellows have come to the University of Iowa for a six-week program focused on business and entrepreneurship. The Mandela Washington Fellowship at UI is hosted by the Institute for International Business, a partnership between the Tippie College of Business and the John Pappajohn Entrepreneurial Center. The Fellows apply to the highly competitive program for the opportunity to learn how to become stronger leaders and to gain entrepreneurship skills to take back to their home countries. This year, the program brought Fellows from 18 different Sub-Saharan African countries. During the program, both the Fellows from the University of Iowa and Drake University came together in Des Moines to hear John Pappajohn, a well-known entrepreneur and philanthropist, share about overcoming adversity, the power of positivity, and the importance of a successful mindset. “I think having Mr. Pappajohn share his entrepreneurial journey with the fellows is always the highlight of the program because he started exactly like them: with nothing. We have strong faith that our Fellows will take what they’ve learned at the University of Iowa to make their lives and the lives of their people better,” said Dimy Doresca, Director of the Institute for International Business. After speaking, John Pappajohn generously gifted all of the Fellows in attendance with a KinoSol Orenda. The Orenda is a food dehydrator that was created by a Des Moines-based startup. The purpose of the gift is for the Fellows to bring it back to their home countries to reduce food waste. “They all have a chance to do something with it and create some value,” said Pappajohn. After hearing him speak, the Fellows had time to ask questions and then joined Pappajohn for lunch before heading out to explore Des Moines further. After his presentation, the Fellows presented Pappajohn with native blanket from Lesotho, Africa as a token of their thanks.
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Iowa JPEC | FY 2017
SYDNEY KURTZ NEW GRAD PROFILE Graduating this past May, Sydney Kurtz (BBA Finance & Management, Entrepreneurial Certificate, ‘17) has already started her full-time position in Chicago. Kurtz is working as a Underwriting Analyst for American International Group. Kurtz got connected with Iowa JPEC when she took a student worker position in the office her freshman year. After overhearing all the benefits entrepreneurship could add to her career, she decided to dive in head first. During her time at the UI Kurtz served as an Iowa JPEC student ambassador, President of Sigma Nu Tau, and a member of Enactus. She also got connected with programs supporting student ventures by participating in a few business plan competitions, and even joining the Founders Club her senior year. Looking back on her involvement with entrepreneurship, Kurtz’ favorite memory is the professional trips she took with Sigma Nu Tau, Iowa JPEC’s entrepreneurial honor society. “On these trips I was able to visit so many cool businesses and network with professionals and successful entrepreneurs,” she stated. “Those trips were incredible opportunities that helped me discover what career path I could see myself in, and how to present myself and network during the interview process.” She has no doubt that she will use the skill set she gained from these experiences in her new position. “Entrepreneurs are innovative thinkers and problem solvers. Although I chose to go work for a corporation, I know I will use my entrepreneurial mindset daily. This mindset will allow me to grow in my job and help me go beyond what is expected of me,” she stated.
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BEN KAPLAN P R E S I D E N T, C O L L E C T I V E G O O D S When his father started the company Books Are Fun, his son Ben was inspired by what his father had achieved as a lifelong entrepreneur. Today, Ben Kaplan is the president of Collective Goods, a company that is an evolution of the same business model that his father created in 1990. After his father retired and sold Books Are Fun, Ben Kaplan (BBA Management, Entrepreneurial Certificate ‘07) and his brother decided it was time to start Collective Goods. The company brings world-class retail experiences to the workplace, providing a better way for consumers to shop. A portion of the sales for your purchases is given back to the community to a worthy cause that is important to you. In short, Collective Goods is focused on making the world a better place. Collective Goods is based out of Boulder, Colorado but has a nationwide reach. In a typical week, the company conducts around 9,000 pop-up flash sales around the country. The company brings in a narrowly focused and well curated assortment of some of the most popular merchandise on the market, and offers it to buyers at a significant discount off the retail price. That makes the sale a win-win for the customer who gets a great deal while also knowing they have contributed to a philanthropic cause. During his time as a student at the University of Iowa, Kaplan focused on academic coursework that would help him learn the fundamentals of starting his own business. This is how he got introduced to the John Pappajohn Entrepreneurial Center and helped him make the decision to earn his Entrepreneurial certifi-
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Iowa JPEC | FY 2017
cate. “My entrepreneurship classes gave me the confidence to work through the critical steps of organizing and starting a business,” said Kaplan. Kaplan is proud every day of the human impact Collective Goods makes. “Seeing people delight in the experience is what it’s all about. When people come together around a unifying cause it is deeply rewarding,” he said. Being responsible for a changing company culture can be hard. Kaplan’s job “requires consistency, conviction, passion, patience, emotional intelligence and a great deal of persistence,” he said. But he loves it. Collective Goods isn’t the only business Kaplan is involved in. He is also connected to several hospitality related ventures including an artisan public market hall, a hotel, a number of restaurants, and even a technology company. In addition, Kaplan is also currently helping to produce a film. As far as advice goes for budding entrepreneurs, Kaplan makes a bold suggestion. “Be open and willing to fail. It is inevitable, but it is an invaluable step along the continuum to your ultimate success. It’s not an endgame. It does not define you. It’s simply a step on your path of growth and progress,” he said.
NOAH BERKSON C O O, D O C & I Noah Berkson’s (BA Enterprise Leadership, ‘14) passion for entrepreneurship stemmed from a door-to-door sales job he had in high school. He says this is where he learned to love overcoming rejection. Berkson believes, “learning to accept and embrace rejection is very important at a young age.” He brought this belief with him to college and joined Iowa JPEC’s I-Envision student organization. He soon started his own software design and development company, Bellwether, during his sophomore year. Berkson greatly appreciated his time at the UI. He said, “Being associated with the University gives you a unique opportunity to connect with some of the brightest minds in the Midwest. In my case, becoming close with people like Ravi Patel and Roby Miller, both extraordinary entrepreneurs, helped to mentor me and avoid common founder mistakes.” He credits his UI entrepreneurship classes with providing a pathway for students who do not intend to go the traditional nine to five route. After exiting Bellwether, Berkson went into technology consulting but learned that his passion was actually in building companies. Berkson was brought into Doc & I to build organization and operating processes, to help scale the company in the 340B market. The 340B Drug Pricing Program supports local healthcare providers in being able to offer care to everyone, regardless of their ability to pay. Doc & I works to maximize the 340B program benefits. Berkson is currently the COO of Doc & I, and oversees all business operations. In addition to working at Doc & I, Berkson co-founded Kubo Health, a health-tech company focused on redefining the patient experience and leveraging real-time data to facilitate better health outcomes. He plans to continue building companies that activate better health outcomes for patients globally.
“Get started now. I think one mistake people make is waiting to start a business, making excuses that they are too young, don’t have enough money, and so on. Being young is one of your biggest advantages when starting a company. It is the one point in your life where everyone wants to help you succeed because they don’t see you as a threat, use it to your advantage.”
R O B K I N C A I D H E L P S E S TA B L I S H A L U M N I STUDENT MENTORSHIP PROGRAM Rob Kincaid (BS Journalism, Communications, ’87) is a senior-level executive and successful entrepreneur who has always been a big proponent of mentoring and coaching. When the co-founder’s business – Vacation Palm Springs Real Estate Inc. – was acquired by a Fortune 500 brand in 2015, he started Leadership Momentum Partners – an executive coaching and business consulting firm. He works with clients and maintains residencies in both Southern California and Des Moines. Kincaid has also been a guest speaker to UI students groups on several occasions. He’s currently pursuing a Master’s in Executive Leadership at the University of San Diego School of Business. This past year, Kincaid reconnected with Iowa JPEC to help establish the Alumni-Student Mentoring Program to connect students with experienced alumni in order help prepare them for life after graduation. After the pilot launch, the program has proven to be a huge success and will continue to expand during the upcoming academic year. If you are interested in being a mentor to students please contact Tarri Furlong at tarri-furlong@uiowa.edu.
Iowa JPEC | FY 2017
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VIEWPOINT MOLECULAR TARGETING Viewpoint Molecular Targeting was established in 2008 by Michael Schultz, Frances Johnson, and Heyward Coleman (shown top to bottom on left). The company develops radiopharmaceutical drugs for cancer therapy and companion diagnostic imaging agents. Viewpoint’s lead product treats metastatic melanoma (skin cancer that has spread) that is resistant to existing therapies. Their novel approach uses a melanoma-specific “signature” to target their injectable treatment to the cancer cells. A companion imaging agent has been developed that enables identification of patients who will respond to the treatment. The company joined the Faculty Innovators program in 2015. “The most helpful thing about the Faculty Innovators program for us was being introduced to intense customer discovery. The personal interviews were the single most important part of the program for Viewpoint,” Schultz stated. The customer discovery process even led Viewpoint to one of their potential investors. In addition, the program also encouraged the startup to have open discussions with experts in the medical industry, which has reshaped the company’s approach and understanding of the problems they are addressing. They entered the program as a startup that was planning to commercialize three products and sell consulting services. They ended the program as a company with one therapeutic product, with a huge market potential. After seeing the benefit of local customer discovery in the Faculty Innovators program, the team realized they needed to take these discussions nationally and internationally to hear from medical and industry professionals.
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An Iowa JPEC Faculty Innovators alum and Small Business Development Center client, Viewpoint Molecular Targeting, has been advancing through I-Corps training over the past year – including being selected by the National Cancer Institute (NCI) to participate in the elite NCI I-Cops business accelerator program that started in Boston, taking the founders across the nation to solidify the company business model.
Completing the national level of NCI I-Corps training allowed the company to do just that. “With the completion of the program, we had a clear understanding of our company, our initial indication, expanded indications and what it would take financially to proceed to a liquidity event for the company in five to seven years,” Schultz said. With the completion of the NCI I-Corps program, Viewpoint has been on the road working to find the right investors. They have even established international connections, having begun technical development in Germany at a world-renowned nuclear medicine clinic. They have also begun conducting pharmacology and toxicology studies that will help them move forward to clinical trials. The company continues to expand their team to include professionals that can help take the company to the next level. Viewpoint is excited to have hired recent Iowa graduate, Edwin Sagastume (BSE), to join the team. Sagastume joined the company as an intern in 2016, and the company has recently been awarded funding through the Iowa Economic Development Authority to support more internships at the company headquarters in the UI BioVentures Center in Coralville. Viewpoint has been highly successful in funding the startup phase of development through NCI Small Business Innovation Research (SBIR) grants and has secured a total of four Phase I awards (total 900k). The momentum for this non-dilutive early stage development continues to build and the company has recently received notice of an award from NCI for a 2 million Phase II SBIR project. “It takes time to secure funding. I am certain that our Faculty Innovators and I-CORPS experience was a big part of the success in securing the Phase II funding,” stated Schultz. “Particularly in the commercialization plan. The Iowa Small Business Development Center has also been a big help in securing Wellmark funds in the form of a loan that helped us through a valley between SBIR awards. We’re excited about the progress and momentum. This recent award puts us in a great position to attract the equity investments that we need for clinical trials that will lead to an eventual liquidity event,” said Schultz.
MEET UI’S FIRST
FACULTY FELLOW
IN ENTREPRENEURSHIP
Joining Iowa JPEC and the Tippie College of Business as the first John L. Miclot Faculty Fellow in Entrepreneurship, Dr. Michele Williams brings a focus on research to her entrepreneurship and management teachings.
Dr. Michele Williams considers it an honor to be the first John L. Miclot Faculty Fellow in Entrepreneurship. To her, the name says it all. “John Miclot is an incredible accomplished executive with a perspective on entrepreneurs in the programs at Iowa that helps to create lifelong leaders,” she stated. “I feel eager to have this unique opportunity to connect research and practice – all while helping students develop the skills they need to be successful well beyond their days in college.” After becoming interested in team relationships while she was a student herself, William’s quickly sprouted a fascination in research dealing with team dynamics. The deeper she looked into the field of entrepreneurship, the more she discovered several reoccurring patterns which ultimately inspired her to embark down a path of research. Iowa JPEC is happy to have her on board and expanding the organization’s focus on research. Today, Williams’ research focuses on key concepts in the areas of entrepreneurship. First, Williams is looking at gender biases in the world of entrepreneurship and trying to understand what changes an individual’s perception of a female. This includes looking at female performance and the idea that different elements, such as location or race, can affect the perceptions that others have on the ability of a female to lead. This also includes looking at new ventures and seeing what products are considered to be masculine or feminine and if that affects the products performance. In addition to gender biases, Williams is also investigating accelerator teams and how they can strengthen the entrepreneurial ecosystem. This means looking at the impact of providing advice to entrepreneurs, and the value of long-term relationships between founding partners or their mentors. “On a startup team, everyone has
the same goal, but it can be hard for everyone to agree on what process would be the most beneficial for the success of the team,” she stated. “Trust and collaboration are key for startups and team dynamics. The strongest teams have people with different skill sets. However, sometimes this can create a barrier between team members.” Since Williams joined as faculty in early 2017, she has already gotten connected with several of Iowa JPEC’s key programs, including Iowa Startup Games. Not only did she serve as a coach and mentor to the student teams, but also used this competition to collect data for her above mentioned accelerator research. To her, the program helps UI students create a business in only a weekend, teaches resilience, critical thinking, and team building skills. From her research and personal experience with accelerators she has gained some significant insights to share with entrepreneurs. “Leave your team members stronger than when you met them. It is important to remember that developing your team is better than developing your product,” stated Williams. “You need to plan for change. A pivot isn’t a road block, but rather puts you on a path of exploration.”
“Entrepreneurs recognize the importance of strong mentors. When I invested in the Fellowship in Entrepreneurship, I trusted the University would obtain an outstanding educator, researcher, and mentor. My expectations have been exceeded with the appointment of Michele.” - John L. Miclot Iowa JPEC | FY 2017
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HEALTHTECH SOLUTIONS STUDENT VENTURE SPOTLIGHT Dalton Shaull, a UI human physiology graduate and former Hawkeye football player, and Eric Pahl, a UI engineering graduate and current Ph.D. student studying health informatics, created TXP Chat™, a software product that helps reduce communication issues leading to donor-organ loss. Shaull was originally motivated to start this project after undergoing a nerve transplant caused by a motorbike accident. As he looked into the average wait times for transplants, Shaull began asking ‘Why is it taking so long?’ – so he found a business partner and created a solution. In addition to Shaull’s experience with transplants, Pahl has four family members on transplant wait lists. The two met at a networking event hosted by Iowa JPEC’s entrepreneurial honor society, Sigma Nu Tau, and decided to attack the problem together.
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Their findings led them to create HTS’ first software product, TXP Chat™, which facilitates communication between healthcare staff to improve organ donation success rates.
Pahl and Shaull launched HealthTech Solutions, Inc. (HTS) after joining the Founders Club in 2015. Housed in the Bedell Entrepreneurship Learning Laboratory (BELL) at the University of Iowa, the Founders Club helped HTS gain access to office space, mentorships, funding, and other resources that were crucial to the development of the startup.
The duo still operates out of the BELL as they move forward in rolling out pilot programs for their mobile software system. Shaull says there is no magic methodology that brought the business to this pivotal point, although he admits that the key to getting something started is not being afraid to fail. HTS is doing simulated tests with three organ procurement groups: Iowa Donor Network in North Liberty, LifeSource in Minneapolis, and LifeCenter in Seattle. These trials have taught HTS the difference between what the market says they want and what they actually want, a big difference that cannot be truly understood until people are using the product. Pahl and Shaull plan to add more test sites in the near future.
Shaull says the curiosity to understand the workflow of the organ transplantation process, coupled with a personal connection to transplants, motivated the team to take the leap, and build a business. The two quickly pulled together a team of industry experts and completed a three-pronged market research project during their first eight months in the Founders Club.
A huge milestone for the company was this past December when the Iowa Donor Network began piloting TXP Chat™. Alongside their current organ procurement communication system, TXP Chat™ is helping the Iowa Donor Network boost the number of successful organ transplants that occur through their organization.
Iowa JPEC | FY 2017
This year, HTS was awarded a $238,400 Small Business Innovation Research (SBIR) grant from the National Institute of Health (NIH), a $100,000 loan from the Iowa Economic Development Authority, and a $25,000 prize (including an additional $75,000 worth of in-kind consulting services) at TCU’s 2017 Values and Ventures Competition. The company also received a $100,000 Wellmark Fund investment. The company is currently working to close out a 1 million seed round ($550k already closed) and plans to raise a Series A round of venture capital funding by mid-late 2018. To date, the pair has secured over 1 million in private investments and non-dilutive funding. The two young founders have successfully moved the business through the concept and startup phases and are now looking toward commercialization and distribution. This shift in focus created a demand for new talent within the company. Shaull and Pahl expanded their development team, which now includes three full-time developers. In addition, they have added test sites in both Ohio and New York. The HTS team will be one to watch over the next year as they continue to prove that entrepreneurship is thriving in Iowa.
A NEW IOWA JPEC STUDENT GROUP FOCUSES ON EMPOWERING FEMALE STUDENT INNOVATORS & LEADERS
SUPPORTING FEMALE STUDENT INNOVATORS
In the fall of 2016, Yvonne Lyngaas, a University of Iowa alumna and entrepreneur, came to Iowa City to share her career experience with female entrepreneurship students. Lyngaas led a well-attended informal discussion with the students that proved there was a need for additional conversations regarding advancing women in the field of entrepreneurship. Thus, Iowa JPEC established the Women in Entrepreneurship student group. The group continued to meet throughout the year, regularly hosting esteemed female alumnae, engaging them in conversations with passionate entrepreneurship students. This informal setting gave students the comfort of asking personal questions, while also allowing the guest speaker to share their entrepreneurial passion. The result has been a truly inspiring experience for our students. In its first year, over 50 students repeatedly participated in the gender focused entrepreneurial discussions. Guest speakers ranged from the founder of a successful podcast to the Senior Vice President of a global investment bank. With plenty of positive feedback from our student participants, Iowa JPEC plans to expand the Women in Entrepreneurship student group to host these discussion groups bi-weekly throughout the upcoming academic year. The students who attend these discussions have gained advice and confidence for not only their future careers, but their general well-being. “As a junior I was still deciding what my plan was for after graduation,” Stevie Watts, an entrepreneurship student stated. “Hearing from these inspiring and successful women really gave me a new perspective on different potential career paths. Not only do I feel better prepared for my future, but I also gained general guidance on life resources such as books, podcasts, and other ways to keep me engaged and challenged in my day to day life,” she stated. Iowa JPEC hopes that this program and its continued events will help strengthen and expand the community of female student entrepreneurs and alumnae who can support each other in their journey to success.
Iowa JPEC | FY 2017
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Q & A W I T H U I A LU M N A A N D OW N E R O F J AVA H O U S E & H E I R L O O M S A L A D C O M PA N Y Since opening the first Java House location in 1994, Tara Cronbaugh hasn’t looked back. Today, the UI alumna owns nine different Java House locations around Iowa City, three of which have an adjoining Heirloom Salad Company - Cronbaugh’s other well-known venture.
TARA CRONBAUGH Looking back on starting Java House at age 21, what advice would you give to students that are thinking about starting a business? In 23 years of doing this I still don’t feel like I’m ever going to work. I enjoy challenges, trouble shooting, and something new every day. If you like to rise to a different challenge every day – that’s how you know entrepreneurship is right for you. I have never been your typical nine to five person who looks for predictability in their career. When you start a business, you have to be able to make decisions 24 hours a day.
Being a Communications major, what is it that prompted you to begin taking entrepreneurship classes? I just knew I wanted to start a business. I used to think my communications degree would not be beneficial in a business setting. Today, I couldn’t disagree more. The non-traditional business students typically are the ones that have the street-skills that stand out. They just see things from a different perspective. I think entrepreneurship courses compliment any major well and will make you more competitive in the business industry because you are offering a variety of skill sets.
What is it about the Iowa City community that prompted you to open your businesses here in the corridor? Iowa City originally made sense because it seemed like a good fit and a good place to raise a family. As a business owner, the community has truly welcomed
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It all started in the fall of 1993 when Tara enrolled in her first entrepreneurship course at the UI. She recalled that at the time, many people didn’t even know the meaning of the term entrepreneurship let alone could spell it. She sat down on the first day of class with the 11 students, who in her words, were “die hard” about wanting to start a business and had enrolled in the only entrepreneurship course the UI had to offer at the time.
me with open arms. I don’t think the concept of being a local company originally meant much to me – but after 20 years I can look back and see how the Iowa City community has made being local “cool” for my businesses. Looking back, it’s hard to imagine being anywhere else.
When you started Java House it was less about providing a good cup of coffee, and more about creating an environment. How has your business focus changed over the years? When you open a company - you will make mistakes. Typically people will try to do all things well. When you realize that it is very difficult to do everything perfect, you learn to recognize what you are really great at and you begin to prioritize. Today my company is very product driven. That doesn’t mean guest experience isn’t a priority, but in order to get people through the door, we realized we need to have a product that delivers.
Many entrepreneurs feel the spark to launch a new venture, but are worried about failing. What advice would you give to them? My favorite saying is “What doesn’t kill you makes you stronger.” For me, if you take a failure and make it an opportunity to improve a process or product, you will be successful. You have to have that mentality. I’m not afraid to change something – sometimes it works, sometimes it doesn’t. But, if you are a true entrepreneur, you will make any failure an opportunity for something better.
TOM BEDELL ENTREPRENEUR & FOUNDER OF B E D E L L G U I TA R S In 2004, Tom Bedell reached out to the current Tippie College of Business Dean, Gary Fethke, about teaching an MBA class. Tom was quickly connected to David Hensley and has happily been supporting Iowa JPEC entrepreneurship programs ever since. That same year, an endowment received from Bedell was used to establish the Bedell Entrepreneurial Learning Laboratory (BELL), a 10,000 square foot business incubator for students that is the home of the Founders Club program. Over the past 13 years, Bedell has been an active mentor for UI students, as well as a frequent guest speaker for entrepreneurial classes and events. In addition to helping establish the BELL, Bedell helped launch the Okoboji Entrepreneurial Institute (OEI), another one of Iowa JPEC’s successful student programs. This week-long summer workshop brings together elite college students from across the state to collaborate and network with successful entrepreneurs. OEI has recently finished its 11th year of the program. Neither the Founders Club nor OEI would exist without the support of Bedell. When he is not busy supporting Iowa JPEC programs, Bedell is working on his many life interests. One of his biggest passions has resurfaced to be his latest venture. Bedell fell in love with music as a teen. When he was in high school, Bedell started his own guitar business in his parent’s basement. His supplier, based in Japan, would ship him products, his sister would apply his custom logo to each guitar, and a friend would help him deliver the products to music stores throughout the midwest – given that Bedell himself was not old enough to have a driver’s license. With two employees, and low overhead, the price was right. Every music store in the area wanted his guitars. In 1966, while he was a high school junior, Bedell opened his own music stores with locations in both Okoboji and Spencer, Iowa. Bedell went on to college, pursued a political consulting career in Washington, DC, and then took responsibility for his Father’s fishing tackle company, Berkley, in the Iowa Great Lakes. He tried retirement in 2007 and by 2009, he decided to follow his passion for music once again. Bedell Guitars is based in Bend, Oregon. The company prides itself on its “Seed to Song” approach – which thoughtfully and sustainably honors the connectivity between the wood each guitar is made of, and music. No clear cut trees are used in any of Bedell’s guitars. In fact, Bedell travels around the world to find the perfect wood for each product. Bedell has uncovered breakthrough technology using frequency analysis to identify the ideal music capability for each tonewood set, and hand builds each instrument accordingly. This makes each Bedell Guitar a truly one-of-a-kind product. Entrepreneurs are repeatedly told to follow their passion – and Bedell is doing just that by designing and crafting inspired acoustic instruments.
Iowa JPEC | FY 2017
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A LU M N I P RO F I L E
RAVI PATEL P R E S I D E N T, H A W K E Y E H O T E L S
Founded in 1982 with a single hotel in Arkansas, Hawkeye Hotels has become one of the fastest-growing family-owned hospitality companies in the country. Today, the firm owns and operates over 55 hotels with investments in an additional 20 hotels, and has over 1,500 employees. The firm is estimated to create a 20-year economic impact of over $5 billion in the state of Iowa alone. As President of Hawkeye Hotels, Ravi Patel (BBA Management, Certificate in Entrepreneurship, ‘08) has overseen the development of 50 new construction and acquisition projects, a total transaction volume in excess of $750 million. Patel, works alongside several members of his family every day – a privilege that he credits to the firm’s success. “Our company values are very much the values of all Iowans. Genuine Midwestern work ethic, integrity, and family, this is the foundation of our corporate culture. My father has always shown us that if we wanted to be successful, we needed to outwork everyone around us. That has continued to be one of our competitive advantages,” Patel stated. With the work ethic instilled by his parents combined with his experiences at the UI, Patel claims that the relationships he formed with classmates and lecturers as a student are one of the most powerful influences on his career. “I’ll never forget the letter of recommendation Ken Brown wrote me that landed me a high profile internship, or the dinner I had with Joe Sulentic that started to frame how I viewed the future,” he said. During his time at the UI, Patel also participated in I-Envision, an entrepreneurship student organization. In fact, he was one of the students that helped recruit some of the group’s first members. Patel also was a member of Delta Sigma Pi, and the UI Student Government. He also tributes his student involvement and his entrepreneurship classes to launching his personal and professional development. “The UI entrepreneurship classes laid the foundation for me to hit the ground running when I began to lead our family business as an executive. Overall, the entrepreneurship classes at UI further sparked my enthusiasm for business, and taught me many of the hard skills needed to run a business confidently,” Patel stated.
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“The UI entrepreneurship classes laid the foundation for me to hit the ground running when I began to lead our family business as an executive. Overall, the entrepreneurship classes at UI further sparked my enthusiasm for business, and taught me many of the hard skills needed to run a business confidently.” One of his proudest accomplishments is the team he has created and the growth the firm has achieved in the last decade. Seeing his families’ risks and hard work payoff is what he finds the most rewarding. The company has maintained strong relationships with lenders, brokers, and franchises for over 30 years, including familiar brands such as Marriott, Hilton, Intercontinental, and Starwood. Hawkeye Hotels recently opened their new corporate headquarters in Coralville, Iowa. “The folks who think you have to leave Iowa to build success have a lot to learn,” said Patel. What kept him in Midwest was the belief that if you are young, ambitious, and capable – you can do it all, even in Iowa. “We live in a place that prides and values itself on being collaborative and helping propel everyone to do and be what they desire. Iowa has made a wonderful home base for our company,” he stated. So what else is on the horizon for Patel and his family? They recently launched a restaurant company and plan to develop half a dozen restaurants in the immediate future. On the hotel side, the Patel family has over 20 exciting projects in development ranging from select-service to upper-end luxury. While these new projects range across half a dozen new states, the firm also continues to stay true to their Iowa roots by working to build up local communities such as Coralville, Cedar Falls, Marshalltown, and Ottumwa.
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IMMORTAGEN U I S TA R T U P A N D V E N T U R E SC H O O L A LU M Founded in 2014, Immortagen, Inc. is working to personalize cancer treatment through revolutionary, artificial intelligence-driven algorithms. The University of Iowa spin-off company, Immortagen, was created when four university researchers realized just how complicated transitioning from the academic research process to commercialization truly was. After many discussions, they came to the conclusion that there had to be a way to streamline the process. Their next step was learning the business side of launching a new venture. The team enrolled in Iowa JPEC’s Venture School program and never looked back. “Without Venture School, we would likely still be sitting in that conference room discussing our ideas. With the knowledge we gained through Venture School and key advisors, we are in a position to make a difference in the care of cancer patients,” said Kristi Thiel, Immortagen’s Co-Founder and Vice President of Business Development. The Venture School curriculum helped Immortagen prioritize such critical success factors as team recruitment, capital needs, target market assessment, business model selection, and customer validation. “The cancer treatment field is moving towards personalized genetics as the key to cancer diagnosis and treatment,” stated Kurt Heiar, Immortagen’s CEO. “Immortagen is working on a next generation, novel solution for helping pharmaceutical and genetic companies, as well as clinicians, better understand what is driving an individual’s tumor to grow so more targeted solutions
can be utilized. Venture School’s focus on commercializing scientific breakthroughs complemented Immortagen’s founders’ clinical expertise at just the right time.” To date, the company has two patents filed and is currently developing its IP platform. Immortagen also was named the University of Iowa Startup of the year in 2016, completed a successful seed capital round, received demonstration funding from the Iowa Economic Development Authority, and is now pursuing Series A financing. The company has begun hiring scientific employees, created a Board of Directors and established offices at the UI BioVentures Center. What’s next for the startup? In the next year, Immortagen plans to launch the next step of product testing and expand the team of experienced bioinformaticians and computer scientists.
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ALUMNI UPDATES STEVEN DAVIS created Bio::Neos in the Bedell Entrepreneurship Learning Laboratory (BELL) in 2003. The company writes customized software that allows life sciences companies to analyze large volumes of data. Davis has been actively involved in numerous Iowa JPEC programs. He was recently awarded the 2017 Distinguished Young Alumni Award from the University of Iowa Alumni Association.
MINDI KNEBEL (Psychology & Business Admin, ‘05) has been on the founding team or an early employee at five companies previous to starting Kaizen Health. Kaizen Health increases access to healthcare for underserved communities by removing transportation as a barrier. Kaizen Health is revitalizing the traditional non-emergency medical transportation broker model; ensuring that patients, healthcare providers, health plans and transportation providers are connected through transparency and real-time communication.
Congratulations to ROBY MILLER, Iowa JPEC alum and Advisory Council member. As the founder of TelePharm, Miller sold his company to Cardinal Health. Miller began working full-time on the business just four years ago. TelePharm combines the advantages of virtual technology and brickand-mortar pharmacies, helping healthcare organizations serve patients who otherwise may not have access to medications.
TOM NIEHAUS (Journalism, ‘84) is the Founder and General Partner of Pivotal Capital Partners, LLC., an SBIC Licensed Venture Debt provider based in Menlo Park, CA with over 100 million of assets under management (AUM). Pivotal provides senior secured loans to high growth venture backed companies in technology, life sciences and alternative energy sectors. Notable Portfolio companies invested in by Pivotal Partners have included Facebook, YouTube, and Proteolix, Inc.
JAY SEBBEN (Accounting, ‘96) was a part of the very first cohort of students in its entrepreneurial program at UI. He left corporate life in 2000 and has been buying and starting companies for most of his career with the present manifestation of that being Chicago-based venture studio, L Street Collaborative. One of their more interesting projects is enterprise lost & found management platform Crowdfind where they improve customer service for large scale events and venues such as Lollapalooza, Coachella, Navy Pier, and the University of Michigan.
Congrats to ALEC WHITTERS, CEO of Higher Learning Technologies (HLT), for making the Forbes 30 Under 30 List! With $10 million in funding, his Iowa-based company already has the No. 1 study app for nursing exams and more than 3.3 million downloads for all its 40 apps. HLT has enabled students to utilize desktop computers and real time sync across devices and are creating new products geared towards professionals.
KIMBERLY YATES (English, Certificate in Entrepreneurship, ‘10) began her business because she loves to make people happy. Following the advice of her entrepreneurship lecturer to “do what you love, do what you know,” she decided to open her own business. Upon graduation, she purchased Gramps Frozen Custard in St. Charles, IL, which she soon transitioned into Kimmer’s Ice Cream. Her second scoop shop opened in Wheaton, IL in May of 2015. Yates and her husband are currently working on opening a third location in a western suburb of Chicago.
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UNIVERSITY OF IOWA John Pappajohn Entrepreneurial Center 108 John Pappajohn Business Bldg., Ste. S160 Iowa City, IA 52242-1994 P: 319-335-1022 iowajpec@uiowa.edu
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Founders Club student business, SwineTech, placed in 8 national business model/plan competitions and was awarded over $146,000 in FY2017. Shown left to right: Matthew Rooda and Abraham Espinoza