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SEPTEMBER 2016

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September 2016

F E AT U R E S COVER STORY

‘A man with a plan isn’t enough’

8 18

It takes more than a good idea to persuade investors to take a risk on a new company. by Dan Radmacher

Life without angels Finding funding on the internet by Dan Radmacher

WEALTH MANAGEMENT Fiduciary responsibility

Will new rules protect investors from bad guidance or shut them out of investment advice? by Joan Tupponce

LAW

Attorneys at large

Law degrees prepare some people for careers outside the courtroom. by Dan Radmacher

HIGHER EDUCATION New man on campus

22 D 26

Radford University’s seventh president is winning praise for his vision – and for his bow ties. by Shawna Morrison

INTERVIEW: Chris Desimone founder of Star Tank

Planting seeds Local version of ‘Shark Tank’ links entrepreneurs with equity investors. by Dan Radmacher

COMMUNITY PROFILE Radford A small city that’s home to Radford University wants to draw more small businesses. by Gene Marrano

SEPTEMBER 2016

E 34

NEWS FROM THE CHAMBER • • • •

Chamber Champions Event sponsorships New members Member news & recognitions

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FROM THE EDITOR

Reality vs. talking points SERVING THE ROANOKE/BLACKSBURG/ NEW RIVER VALLEY REGION

by Tim Thornton

he Republican Party is the party of business — the party that supports governmental policies intended to get out of the way of the people it used to be trendy to call job creators. The “entrepreneurial spirit of the American people,” House Speaker Paul Ryan says on his webpage, “can only thrive if the government creates an economic-friendly environment that allows businesses to grow and create jobs.” Lowering taxes and reducing regulation, according to the GOP, leads to economic growth, job growth and a growth in Americans’ well-being and America’s influence in the world. The economy runs better when government gets out of the way, Republicans say, and government gets out of the way when Republicans are in charge. And yet, at least since 1900, the stock market does better when there’s a Democrat living in the White House. That’s also true when the measuring begins in 1945 (taking the Great Depression and the bubble that preceded it off the Republicans’ record). The worst presidents for the stock market since 1945 were Richard Nixon and George W. Bush. (Yep. Worse than Jimmy Carter.) But it’s not just the stock market. As Princeton economists Alan Blinder and Mark Watson wrote in 2014: “The U.S. economy not only grows faster, according to real GDP and other measures, during Democratic versus Republican presidencies, it also produces more jobs, lowers the unemployment rate, generates higher corporate profits and investment, and turns in higher stock market returns. Indeed, it outperforms under almost all standard macroeconomic metrics.” Why? Blinder and Watson write, “mostly ‘good luck,’ with perhaps a touch of ‘good policy.’” According to Blinder and Watson, “Democratic presidents have experienced, on average, better oil shocks than Republicans (some of which may have been induced by foreign policy), a better legacy of productivity shocks, more favorable international conditions and perhaps more optimistic consumer expectations.” The economists allow that some of the good luck may have been a result of good policy, but they reckon fortunate circumstances “explain slightly more than half “ of the Democratic advantage in GDP growth. Whatever the cause, since World War II, Ronald Reagan’s second term is the only four years of a Republican presidency when GDP growth was competitive with Democrats. Comparing annualized growth over each administration, Reagan is still the only competitive Republican. He runs neck-and-neck with Jimmy Carter. This is not an endorsement of one party over the other. This is not an argument for voting one way or another. This is just an attempt to point out that, in this case, at least, facts, figures and reality run contrary to conventional wisdom. It’s a reminder that in politics, in business and in life, it’s a good idea to question conventional wisdom.

Correction: The cutline accompanying a photo on page 15 of the August issue contained an error. The shot of senior residents exercising was taken at the Brandon Oaks retirement community in Roanoke. 4

SEPTEMBER 2016

Vol. 5

SEPTEMBER 2016

President & Publisher Roanoke Business Editor Contributing Editor Contributing Writers

No. 9

Bernard A. Niemeier Tim Thornton Paula C. Squires Gene Marrano Shawna Morrison Dan Radmacher Joan Tupponce

Art Director Contributing Photographers

Adrienne R. Watson Alisa Moody Don Petersen Matt Ross

Production Manager Circulation Manager Accounting Manager Vice President of Advertising Account Representative

Kevin L. Dick Karen Chenault Ashley Henry Hunter Bendall Lynn Williams

CONTACT: EDITORIAL: (540) 520-2399 ADVERTISING: (540) 597-2499 210 S. Jefferson St., Roanoke, VA 24011-1702 We welcome your feedback. Email Letters to the Editor to Tim Thornton at tthornton@roanoke-business.com

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on the cover

Chris Desimone

founder of Star Tank Roanoke Photo by Don Petersen

WHO READS ROANOKE BUSINESS?

SUCCESSFUL DECISION MAKERS WHO ENGAGE DEEPLY WITH OUR MAGAZINE Roanoke Business is a young publication, but we already have built a loyal following. Our readers say they look forward to every issue. Plus, we get high marks for quality with 65 percent of our subscribers rating Roanoke Business as either one of their favorite magazines or being a very good publication. WHEN WE DESCRIBE SUBSCRIBERS AS SUCCESSFUL LEADERS, WE CAN POINT TO SUPPORTING DATA FROM A RECENT READERSHIP SURVEY. IT SHOWS THAT: 42 PERCENT of our readers occupy C-suite or higher positions in their companies. 64 PERCENT have an annual household income of more than $100,000. 35 PERCENT have a net worth in excess of $1 million. OUR DATA ALSO SHOW THAT THESE MEN AND WOMEN ARE ACTIVELY ENGAGED IN BUYING GOODS AND SERVICES FOR THEIR COMPANIES. OUR SURVEY SHOWS THAT: 29 PERCENT have been involved in a purchasing decision worth at least $100,000 during the past 12 months. 42 PERCENT of these executives were involved in ﬁnancial purchases. 58 PERCENT were involved in IT/telecommunications purchases. 60 PERCENT were involved in meeting/travel arrangement purchases. Advertise in Roanoke Business, if you want to get your company noticed in the Roanoke/Blacksburg/New River Valley region. No other publication covers this area’s commercial activity as comprehensively as we do. And, no other regional publication delivers the high-quality readership that we do. For business-to-business advertising, Roanoke Business is the area’s premier medium – one that can help you succeed.

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Roanoke Business. It works.

Upcoming events Items on the calendar are just a sample of Roanoke/New River Valley business events this month. To submit an event for consideration, email Tim Thornton at tthornton@roanoke-business.com at least one month before the event.

JUMP on this deal!

September 1

State of the City 2016 Roanoke Mayor Sherman Lea Sr. will present the annual State of the City Address at The Hotel Roanoke & Conference Center.

roanokechamber.org

3 yrs 40% 2 yrs 33%

1 yr 10%

September 4

Starcropolis Hollins University, the city of Roanoke, Mill Mountain Theatre, and Roanoke Public Libraries are joining forces this Labor Day Weekend to present the first-ever Starcropolis, an evening of live theater beneath the Roanoke Star.

www.hollins.edu/theatre

Save up to September 15

Save Our Towns Summit People with â&#x20AC;&#x153;a passion and interest in Appalachian communitiesâ&#x20AC;? will gather at The Inn at Virginia Tech and Skelton Conference Center from 8 a.m. until 4 p.m. to discuss and learn how communities can survive and thrive.

www.saveourtowns.outreach.vt.edu

40%

off cover price TO SUBSCRIBE, you can fill out the subscription card located in this magazine, online at VirginiaBusiness.com, or by calling (804) 225-9262. We happily accept credit cards by phone or we can bill you if you prefer.

VirginiaBusiness.com ROANOKE BUSINESS

COVER STORY

‘A man with a plan isn’t enough’ It takes more than a good idea to persuade investors to take a risk on a new company by Dan Radmacher

he investor-entrepreneur relationship seems like it ought to be simple enough: Investors want someone who can give them a return on their money, and entrepreneurs want someone with money to help bring ideas to fruition. “What are investors looking for? Return on investment,” says Victor Iannello, a tech entrepreneur and investor who founded Synchrony, a company that makes custom magnetic bearing components. He formed a group called Radiant Ventures to invest in local startup companies. “If they can get a decent return investing in a local company rather than the stock market, most would rather invest locally. But at the end of the day, there has to be a demonstrable path to a return on that investment, not just a return of the investment.” That path can take many directions, but there are a few constants: “You need a recognizable demand for your product, and the product has to be something that has a competitive advantage,” Iannello says. “You have to have something that allows you to sustain and thrive — a key patent you have that your competitors don’t or a very good relationship with a particular company.”

SEPTEMBER 2016

Startup investors in the region — angel investors as they’re known in the business — are becoming more savvy, says Jim Flowers of VT KnowledgeWorks, a subsidiary of Virginia Tech’s Corporate Research Center in Blacksburg. “There’s a lot more information-sharing among angel investors,” Flowers says. “They’re better educated than they

Jim Flowers of VT KnowledgeWorks says angels are becoming more saavy.

were even a few years ago.” It’s difficult to pin down the level of angel investment in the region, especially when there are no formal organizations of investors, and most angel investments are private. Yet it’s clear that angel investing and venture capital are critical for startups and companies trying to move to the next level. While angel investing is difficult to quantify, significant venture capital has flowed into the region in recent years. Virginia’s Center for Innovative Technology’s venture capital fund (CIT GAP) invested nearly $680,000 in regional firms between 2012 and 2015. Valleys’ Ventures, a $15 million fund set up by the Virginia Tech Foundation, Carilion Clinic and Radford’s Third Security in 2013, also has made substantial investments in the region, including a $2 million deal with Heyo, a social marketing company for businesses. Jennifer O’Daniel, investment director for CIT GAP, says investors are looking for entrepreneurs who are trying to solve real problems. “You have to make sure there really is a market there, not a solution looking for a problem,” O’Daniel says. “But you also have to realize there may be 100 other people Photos by Don Petersen

working on the same problem across the country. Do you have the spark, the excitement, to create a strong product with a big potential market? Do you have the skills to execute your plan and get to market first?” Flowers also stresses the need for an idea that addresses a real-world, end-user problem. “You’ve got to have a real market, not one you’ve dreamed up in your head,” Flowers says. “Angel investors are paying more attention to that. They don’t want to fall in love with the idea themselves rather than asking whether anybody really wants or needs it.” Investors also try to figure out how difficult it would be for someone else to come in and replicate what the company is doing, Iannello says. “If it’s easy to repeat, then it’s difficult to show that the company can maintain its advantage.” The investment, and opportunity for return, also has to be substantial enough to make the work of deciding to take the risk worthwhile. “The amount of work they have to do to vet you is the same whether you want $100,000 or $10 million,” says Joe Meredith, president of the Corporate Research Center. Bob Summers, a local tech entrepreneur who launched TechPad in downtown Blacksburg to provide a co-working space for software developers, says the amount of investment that companies need varies widely. “In Blacksburg a seed investment can be $25,000,” Summers says. “A high-end investment in Virginia is $250,000. In Silicon Valley, a high-end investment might be more like $4 million.” Finally, investors want to see a business plan and indications that the right team is in place to implement the plan. A solid business plan is important, says Greg Feldmann of Skyline

Greg Feldmann of Skyline Capital Strategies LLC has been involved in regional startup funding since the 1980s.

Capital Strategies LLC, who has been involved in startup funding in the region since the 1980s. “But a man with a plan isn’t enough,” he says. Investors want to see that entrepreneurs with a startup plan have sought extensive feedback from their potential customer base. “Customer discovery is absolutely essential,” adds Feldmann, who advises

The Corporate Research Center’s Joe Meredith says a company’s product has to be worth the time it takes for vetting.

the Seed and Pre-Seed funds managed by The Launch Place in Danville, a program that invests in companies that pledge to create jobs in the Southern Virginia city. Pre-Seed investments go up to $75,000, while the Seed fund initial investments range from $50,000 to $250,000, with follow-up funding up to an additional $100,000. Summers also emphasized the importance of knowing your customer. “The best form of investment is from a customer,” he says. “They’re investing in you and your product. Those are the most important relationships to covet.” What entrepreneurs seek When it comes to what entrepreneurs should be looking for in investors, the simple answer — money — is woefully incomplete. A good investor won’t just provide money, but mentorship and contacts, Summers says. “Hiring good people and making new customers are key to growth,” he says. “A good investor can help with both of those.” ROANOKE BUSINESS

cover story Feldmann agrees. “A good investor provides a lot more than the money,” he says. “In fact, in some ways, that’s the least of the value they bring. You want an investor who can open their Rolodex and help you recruit key people, strategic partners or new Hagmaier clients.” The mentorship provided by involved investors is invaluable. So says Jonathan Hagmaier, who recently launched Common Wealth Growth Group, a company that works to identify and vet potential investment opportunities. Hagmaier started the firm after selling Interactive Achievement to Californiabased PowerSchool in February for an undisclosed price. “You have to know what you don’t know,” he says. “The only way it’s going to work is to understand that you need to go out and find wisdom and listen to that wisdom. You’ve got to find mentors and get involved in the entrepreneurial ecosystem. We have a great ecosystem in our valley.” A good mentor can help an entrepreneur avoid pitfalls. “The wisdom that I found saved us millions of dollars we would have thrown away making bad decisions,” Hag-

Bonz Hart says it’s crucial for entrepreneurs to be able to explain their ideas.

maier says. “If you can get stopped from making bad decisions, you’ll save so much time and money.” Hagmaier says his company and the investors it is working with have millions of dollars to bring to the table. They currently are focused on the tech sector but plan to expand into other areas in the coming year. “We have built some really strong relationships around the country and really hope to connect more investors in the valley to some great opportunities,” he says.

Chris Desimone, founder of Roanoke’s Star Tank, says local funding is likely to create homegrown businesses and jobs, which are more likely to stay.

SEPTEMBER 2016

Entrepreneurs need to test their ideas in the real world. “The biggest mistake they can make is to live inside their own heads and rely on what I call confirmation goggles,” says Flowers. “You can’t reject all information that doesn’t confirm your hypothesis.” Jonathan Whitt, president and CEO of the RoanokeBlacksburg Technology Council, also stresses the vital role of mentors in helping entrepreneurs succeed. “To be successful, you have to surround yourself Whitt with other successful people,” Whitt says. “That’s the most critical thing. You have to have a pretty intense mentorship network, individuals who can connect you to other successful entrepreneurs and resources. You need to seek their advice, and listen,” he adds. “Be humble and don’t think you know it all. That’s really the key to success. I’ve seen amazing ideas and excited entrepreneurial leaders fail because they wouldn’t take open, honest, candid advice. That’s the biggest pitfall right there.” Entrepreneurs need to realize that they are asking investors to take a risk with their money, especially at the startup phase. “You have to be able to articulate how your idea can create value,” says Bonz Hart, president and CEO of Meridium. “That’s the core factor: What’s going to make you sustaining is that you’re creating a lot of value. For an investor to be comfortable, they have to understand the idea and be willing to take a lot of risk. They have to know you have the skills, the team and the business model to produce the kind of value that will mitigate that risk.” That understanding is a vital part of the commitment entrepreneurs need from investors, Summers says. “The right investor is one who understands your space and is willing to stay with you through ups and downs.” Photos by Don Petersen

Get legal advice It’s also critical to know what the investor expects in return for the investment. “Always get legal advice,” says Brent Cochran, a local entrepreneur who works with Roanoke developer Ed Walker and is involved with the nonprofit Local Environmental Agriculture Project, LEAP. “Once an investor puts money in your company, they own some portion of your company. You need to understand what you have to give up in exchange for that investment. You need to know who they are, what investments they’ve made in the past. Know what strings are attached.” John Dooley, CEO of the Virginia Tech Foundation, says many investors are looking to do more than simply write a check. “There are investors, individuals with significant net worth looking for investments, but they’re also looking for a level of engagement that some entrepreneurs may not be comfortable with,” he says. “In the broader entrepreneurial community, you see individuals who really thirst for the active involvement of the mentors, who want that intellectual capital. Others just want the money and see their obligation as doing the best they can to give a good return.” Many angel investors in the region want that involvement, Flowers says. “They don’t just nakedly invest,” he says. “They’re interested in interacting and contributing to a company as it gets on its feet. And, not uncommonly, they may bring in the next round of investors.” It’s like any other relationship, Cochran says. “Look at who they are as people,” he says. “Decide if this is someone you want to deal with when times get tough — because times are going to get tough.” Most investors stick to what they know, Cochran says. “Different investors have different interests,” he says. “But they want to invest in what they understand, whether it’s technology, manufacturing or whatever.” Often, though, investors are

looking more at the entrepreneur than the idea. “I’ve heard many investors say that what’s really important is the team behind the idea,” Cochran says. “The idea may not be 100 percent there, but the team is solid. The people are investable.” Proximity also is important, Summers says. “If you want an involved investor, geography does matter to you,” he says. “You want to be able to easily pop over and meet with them.” Chris Desimone, a local attorney and founder of Roanoke’s Star Tank, also believes proximity matters, especially in the long term. “We have a better chance of creating homegrown jobs and businesses that will stay here if they’re funded with local, private dollars,” he says. Which means that success can beget success, Feldmann says. “People who have already succeeded are willing to invest in those coming up behind them.” So how do entrepreneurs connect with investors in the Roanoke/ Blacksburg region? Just about everyone agrees: You need to put yourself and your idea out there. Go to an RTBC meeting and introduce yourself. Walk into VTKnowledgeWorks or Roanoke’s Small Business Development Center and start asking questions. “We have wonderful assets here,” says Dooley. “VTKnowledgeWorks and the Corporate Research Center, the Roanoke-Blacksburg Technology Council, CoLab, a variety of competitions supported by various organizations. Becoming involved in that asset base is a good strategy to identify and define where those investors who make the most sense for you might be.” “Entrepreneurs need to seek out the people committed to helping them get ready,” says VT KnowledgeWorks’ Flowers. “Start with the ones that are formalized, like us. We’re happy to do it, and it doesn’t cost anything. And if somebody walks in and asks us about something we don’t know about, we won’t pretend we do. I refer people

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SEPTEMBER 2016

all the time, and itâ&#x20AC;&#x2122;s one of the best services we can provide. Just go ask somebody, and you will find your way to the people you need to be talking to.â&#x20AC;? Cochran suggests starting with Roanoke Star Tank. â&#x20AC;&#x153;This is a group of investors who have stepped up to say theyâ&#x20AC;&#x2122;re interested in seeing ideas,â&#x20AC;? he says. â&#x20AC;&#x153;Even if they donâ&#x20AC;&#x2122;t fund you, the guidance they offer is priceless.â&#x20AC;? Currently, there is no organization of angel investors, Flowers says, but they do talk, and they do know one another. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;ve got a lot of good guys in the angel investment community around here,â&#x20AC;? Flowers says. â&#x20AC;&#x153;And this is a small enough region that, once you get inside that circle, everybody knows each other. The fact that our region is relatively small compared to the big metros gives us a leg-up in the honesty, integrity, weâ&#x20AC;&#x2122;re-all-in-this-together kind of thing. I think this is a big plus.â&#x20AC;? Some of these investors are driven by a deep civic commitment. â&#x20AC;&#x153;A number of these investors who have done quite well for themselves have an additional sense of obligation to give back,â&#x20AC;? Flowers says. â&#x20AC;&#x153;They might take a bigger risk than if it was a pure investment decision. I wouldnâ&#x20AC;&#x2122;t call it charity, but maybe a charitable investment. Youâ&#x20AC;&#x2122;ll immediately see who they are. They talk that language. They care about the overall community because they live in it.â&#x20AC;? Flowers singled out Hagmaier as â&#x20AC;&#x153;the consummate give-back gentleman kind of guy,â&#x20AC;? but Hagmaier isnâ&#x20AC;&#x2122;t the only one. â&#x20AC;&#x153;Those guys are taking care of business in terms of being grateful,â&#x20AC;? Flowers says of the regionâ&#x20AC;&#x2122;s angel investors. â&#x20AC;&#x153;Either through investments or mentorship, we have a personal touch between the investors and the startups that you wouldnâ&#x20AC;&#x2122;t find in a more gogo environment. Investors are happy to talk to entrepreneurs before the investment pitch and advise them on the kinds of things they ought to be thinking about.â&#x20AC;?

Mindsense founder Alex Obenauer says, “The biggest thing for me was that our best investor is a customer, and that’s what you get with Kickstarter.”

Life without angels Finding funding on the internet by Dan Radmacher

hen Alex Obenauer made the decision to launch Mindsense, a software development company that created a new product to manage email, he decided to get all of his funding from customers by launching a Kickstarter campaign. Since its launch in 2009, Kickstarter’s global online community has seen 11 million people back a project, with $2.5 billion pledged for 108,884 new projects. “The biggest thing for me was that our best investor is a customer, and that’s what you get with Kickstarter,” Obenauer said. “In one fell swoop, you gain funding, an audience and validation in a low risk way. All three come together, or

Photo by Don Petersen

all three fail together. If you don’t meet your goal, nothing happens. Nobody’s charged. We don’t get stuck with funding we’d have to account for.” For Mindsense, it came together: The campaign’s goal was $35,000 to develop Mail Pilot, and it hit $54,000 in five weeks with 1,623 backers. Obenauer hasn’t regretted the decision not to seek venture capital. “We might be able to grow the team faster with outside funding,” he says. “We’ve been growing it slowly, but intentionally, and maintaining a really positive, inspiring, motivational and supportive culture.” There are drawbacks to Kick-

starter, of course. “It’s hard to stand out with how popular it has become,” Obenauer says. “There’s a difficult signal-to-noise ratio to overcome. But campaigns that have been thoughtfully prepared for a long period of time do stand out dramatically from those that are just thrown up in a couple of days. You have to be solving a real problem.” In addition to Mail Pilot, the company has developed a new product called Throttle. Launched in March, the free service gives people new levels of control over their email and helps protect their email address by generating unique email addresses for sign-up forms. ROANOKE BUSINESS

WEALTH MANAGEMENT

Derek Klock, an associate professor at Virginia Tech’s Pamplin College of Business, says the rule change is likely to drive more advisers to a fee-based payment system.

Fiduciary responsibility

Will new rules protect investors from bad guidance or shut them out of investment advice? by Joan Tupponce

rule change set to take affect next April will save investors preparing for retirement billions of dollars each year – or it will make dealing with small investors so unprofitable they’ll be left adrift, with little or no guidance about how to get the best return on their money. The rule from the U.S. Department of Labor (DOL) requires anyone giving retirement investment advice to plans, plan fiduciaries and IRAs to abide by a fiduciary standard that puts their clients’ best interest before their

SEPTEMBER 2016

own profits. “Ideologically, this is a good step,” says Jason Malone, an assistant professor at Virginia Tech’s Pamplin College of Business. “It will be interesting, as it relates to the implementation, how existing industry adapts.” According to Whitney Brown, president of Dixon, Hubard, Feinour & Brown Inc., a wealth management firm in Roanoke, “The biggest impact will be on brokerdealers and insurance-based investment advisers. There will be less impact for registered invest-

ment advisers.” Currently, there are two regulatory avenues to investment advice. The first includes brokerdealers and insurance-based investment advisers. Their advice to clients is required to meet a suitability standard. “This standard means that so long as the adviser has a reasonable basis for believing the recommended product meets the needs of the client, it does not necessarily need to be the best or lowest cost product,” says Derek Klock, an associate professor at the Pamplin College. Photo courtesy Virginia Tech

The second group is registered investment advisers, who already have a fiduciary duty. According to the Certified Financial Planner Board of Standards website, “The fiduciary standard of care requires that a financial adviser act solely in the client’s best interest when offering personalized financial advice.” Brown says the rule will “bring broker-dealers and insurancebased investment advisers to a higher standard.” The DOL undertook the multiyear regulatory project in 2009. The new rule is the first meaningful change aimed at retirement accounts since 1974, when Congress enacted the Employee Retirement Income Security Act (ERISA), which laid out rules in 1975 saying that any activity in a retirement plan must carry a fiduciary standard. According to the White House Council of Economic Advisers, investment advisers who don’t follow the fiduciary standard cost their clients about 1 percentage point per year – about $17 billion annually. That percentage point could reduce savings by more than 25 percent over 35 years. The DOL’s concern is for the millions of baby boomers approaching retirement and rolling over their 401(k) plans into IRAs or other investments. Malone Those transactions could represent trillions of dollars. “This new rule is in response to concern of individuals being encouraged to adopt products that are not in the consumer’s best interest, ” Malone says. DOL research found that some investment professionals have compensation structures misaligned with their customers’ interest. Driven by the commissions they make on particular products, advisers may steer customers to investment products that are more beneficial to the adviser than to the investor. Not every group of advisers faPhoto by Don Petersen

Whitney Brown, president of Dixon, Hubard, Feinour & Brown, says the new rule will have little effect on registered investment advisers.

vors the new rule. The American Council of Life Insurers and the National Association of Insurance and Financial Advisors are challenging the fiduciary regulation in court. Both groups say they support “responsible and balanced regulations that protect the interests of retirement consumers.” But they argue the regulation “is neither reasonable nor balanced and it has become clear that it will harm the very people it is meant to help.” They point to a similar approach taken in the United Kingdom in 2012. Four years after it was instituted, it appeared people with lower incomes or lower levels of assets found it harder to access advice. The groups challenging the rule say they are worried the same result may happen in the U.S. The regulation “will make it more confusing for the lay investor,” says Klock, noting that it will drive more investment professionals to work under a fee-based compensation model.

“Instead of collecting commission on sales, they will charge a fee for assets they are managing. The downside is that most small investors under $500,000 are not going to come out ahead on fee-based services. It will be much more expensive.” On June 1, the Securities Industry and Financial Markets Association, along with some chambers of commerce, filed a legal challenge to the DOL’s fiduciary rule. It argues the rule’s reference to “the best interests” and “reasonable compensation” is not clearly defined. Kevin Carroll, managing director and associate general counsel for SIFMA, says, “The DOL rule will push investors into higher cost accounts, or to forgo investment advice, neither of which serves their best interests. The DOL approach is not only costly, it is also limited to retirement accounts. The better approach for investors is to allow the expert agency – the SEC – to exercise its Dodd-Frank authority to create a uniform fiduciary standard that covers all personalized ROANOKE BUSINESS

Wealth Management Roanoke College’s Mike Smith is among those who believe the new rule will make investing harder for young people and others with few assets.

investment advice given by financial advisers.” SIFMA is asking the court to vacate the DOL rule on the grounds that the DOL exceeded its authority, and to issue its ruling on an expedited basis.

Mike Smith, a lecturer in the business administration department at Roanoke College, believes the new rule could reduce young people’s ability to invest. “I think it’s important for young people to invest. I think this in a way will

hamper that,” he says. Young investors haven’t accumulated a lot of assets and a completely fee-based system “will discourage financial advisers from working with people that don’t have a lot of assets,” Smith says. “I tend to see regulation as a necessary evil. I would like to see more focus on education, learning how to invest on your own without an adviser. I see education as the solution rather than regulation.” Tech’s Malone has a different opinion. With the presidential election just months away, he says, there is “so much that can happen still. There are a lot of variables in the air. There are a lot of questions that need to be answered as it relates to the implementation of the rule. You’ll see a lot of short-term expense and a lot of confusion. However, the long-term benefits of this rule should outweigh the short-term expense, both for the industry and the consumer.”

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SEPTEMBER 2016

Photo by Don Petersen

Wealth Management Firms Edward Jones Investments www.edwardjones.com (The company has more than 20 offices in the Roanoke and New River valleys.)

Morgan Stanley Wealth Management

Guelich Capital Management

10 S. Jefferson St., Suite 1700 Roanoke 24011 www.morganstanley.com/wealth

1401 Franklin Road, SW Roanoke 24016 540-772-4545 www.guelichcapital.com

UBS Financial Services Inc.

Davenport & Co.

Wells Fargo Advisors LLC

10 S Jefferson St., Suite 1050 Roanoke 24011 540-344-5571 www.ubs.com

10 Franklin Road #450 Roanoke 24011 540-345-1909 www.investdavenport.com

10 S. Jefferson Street, Suite 910 Roanoke 24011 540-759-3219 https://home.wellsfargoadvisors. com/dan.green1

Catawba Capital Management

Mass Mutual Financial Group Mid-Atlantic

Joel S. Williams

3800 Electric Road, Suite 210 Roanoke 24018 540-989-4528 www.massmutual.com

1995 S. Main St. Suite 903 Blacksburg 24060 540-961-6706 http://www.joelswilliams.com/

Dixon, Hubard, Feinour and Brown

The Myrias Group

Plott & French Financials

601 S. Jefferson St., Suite 410 Roanoke 24011 540-343-9903 www.dhfb.com

3140 Chaparral Drive SW Roanoke 24018 540-769-0052 www.themyriasgroup.com

104 Wadsworth St. Radford 24141 540-639-2139 http://www.plottandfrench.com

Corporate Capital Resources

Harrison & Co. Wealth Management

HomeTown Investments

10 South Jefferson St., Suite 1210 Roanoke 24011 540-342-1212 www.catawbacapital.com

10 Franklin Road SE Roanoke 24011 540-345-4190 www.ccrva.com

File graphic

2008 Stephenson Ave. Roanoke 24014 540-204-9310 www.investharrison.com

4225 Colonial Ave. Roanoke 24018 540-597-1106 www.hometownbankva.com

ROANOKE BUSINESS

LAW

Cabell Youell practiced real estate law before becoming executive director of St. Francis Service Dogs nearly 14 years ago.

Attorneys at large

Law degrees prepare some people for careers outside the courtroom by Dan Radmacher

etting a law degree isnâ&#x20AC;&#x2122;t easy or cheap. It requires three years of intensive study, summer internships and often massive debt to the tune of tens of

SEPTEMBER 2016

thousands of dollars. So who would go through all that and then abandon the potentially lucrative career that degree prepared them for? A surprisingly high number of

law graduates do just that. A 2015 study of recent law school graduates by Deborah J. Merritt, a law professor at Ohio State Universityâ&#x20AC;&#x2122;s Moritz College of Law, found Photo by Matt Ross

that 20 percent were in jobs that don’t require a law degree. Then there are those who practice law for a few years and decide to do something else. That was the path taken by Roanoke entrepreneur and developer Ed Walker. He practiced law for six years before realizing he’d rather be on the other side of the desk. “I really liked practicing law,” Walker says. “But it’s hard work, and it’s stressful. People’s lives and liveli-

hoods are in your hands. It can be a lot of pressure, and a couple of bad clients can take all the fun out of it. One day I realized I actually wanted to be the client rather than the lawyer.” Walker doesn’t regret the time and money spent on the degree, though. “It is the most flexible of all the graduate degrees,” he says. “Think about what you learn, about the curriculum. You study contracts, torts, real property, criminal law and usually criminal procedural. You study case law about people in peculiar situations. Nothing describes life better than that. It’s the crossroads of the world and the human conditions. Law has that built into it.” The legal training and experience were invaluable to Walker. “I couldn’t have done my work or had my career without it,” he says. “I was totally equipped by law school to do the work I do. It was a great return on the investment.” Walker graduated from Washington & Lee University’s law school in Lexington in 1996. Walker is probably best known in this area for his renovations of historic buildings. Transforming vacant properties such as the old Jefferson Hotel and the Grand Piano & Furniture building into living spaces, he almost single-handedly ignited Roanoke’s downtown living movement, but his projects are not bound to one arena. Walker also founded CityWorks (X)po, opened the Kirk Avenue Music Hall, developed a radio station with an alternative-Americana-indie vibe, created a pocket park and dealt outsider

art, among other projects. Lawyers are trained to look for every imaginable problem, Walker says. That has helped him as he’s taken on multiple risky projects over the years. “One of the reasons the projects I’ve done have worked fairly well is that I don’t go in thinking about how great they’ll be. I go in thinking about what unexpected disaster could destroy this for me. Risk mitigation is crucial. I’m not grounded in optimism, but optimistic skepticism.” Cliff Jarrett, assistant dean for the Office of Career Strategy at Washington & Lee University School of Law, agrees that the focus on risk mitigation is a transferrable skill. “Law school teaches you how to ‘issue-spot,’ to see potholes down the road,” Jarrett says. “Employers see the value in that skill.” In Walker’s opinion, a law degree is good preparation for any number of careers. “Law school opens up endless paths,” he says. “There is not an occupation in the world that wouldn’t benefit from the general knowledge and the specific, analytical lessons that it teaches.” From law to service dogs Cabell Youell practiced business commercial and real estate law for firms in Richmond and Roanoke before she decided to follow a different calling. She has been executive director of St. Francis Service Dogs for almost 14 years. It’s a decision she does not regret. “I had interesting work, which is what you want if you’re practicing law,” she says. “My husband is a lawyer, too, and it can be hard when everyone is pulling those hours. I wasn’t sure I wanted to be a partner in a law firm — any firm. It’s easy to start practicing law and get on a particular track without giving much thought to it. Suddenly, it’s 30 years later, and you’re a partner. I was lucky to have an opportunity to look up, look around and give it some thought.” ROANOKE BUSINESS

Law Cliff Jarrett, assistant dean for the Office of Career Strategy at Washington & Lee University School of Law, says law school teaches people how to spot issues.

Youell also sees the value of her law degree and training even in a non-law career. “Communication is

so important in any work environment,” she says. “Learning how to do that is what lawyers do.”

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SEPTEMBER 2016

Patrick Kelly, who works with the Legal Aid Society as a certified navigator for the Affordable Care Act, also stressed the importance of the com- Kelly munications skills he learned in law school and as a practicing lawyer for 12 years. “You become very good at creating comprehensible information that’s engaging,” Kelly says. “You have to be able to think critically about your own writing and to improve upon it and refine it.” Legal work, continues Kelly, taught him how to explain and simplify complicated matters. “What I was very good at was taking complex information and breaking it all down.” He can sift through reams of information and “make it understandable and accessible to a broader audience in just a few short paragraphs. I do that a lot in my job.” Though Kelly still has his law license and occasionally consults on cases, he gave up being a litigator because he says his heart was no longer in it. “I’m a good advocate,” Kelly says. “I’m good at applying the law. I loved the law, but I didn’t love being a lawyer. What it came down to was being passionate about the work I was doing, making sure I was doing work that meant something to me, that I was good at, that I was uniquely qualified to do and that I really cared about.” Some students figure out during law school that actually practicing law isn’t for them. That was the case for Tiffany Lee, an adjunct professor and owner of a martial arts school. She became interested in the law after a confrontation with a police officer at an IHOP in Columbia, Mo. The officer kicked her out because he mistakenly believed only blind people could bring service dogs into a restaurant. “I was the only sober person there, and I’m the one who gets kicked out,” she says. Photos by Matt Ross

Lee got a service dog in 2006 to help her with walking and balance after an injury received during training at the Air Force Academy revealed a genetic Lee condition that affected her joints. A related condition has caused heart problems. She filed a federal civil rights complaint and won a settlement with the city of Columbia. She ended up becoming a representative for students with disabilities on the local transit committee. “I quickly became a thorn in the side of a number of people at the university,” Lee says. “We did get changes made, but it was obvious to me that without a legal background, there’s a very hard line you come up against as far as getting anything done or understanding what you can get done.” She ended up going to Washington & Lee University’s School of

Law, but soon after her first year, she realized that becoming a lawyer would not be a good fit. “I liked the academic end of law,” Lee says. “But I realized fairly quickly that I have trouble separating myself from a case I’m working on. I get emotionally invested. For me, that was a problem.” Now she teaches law classes for American National University in Salem and Averett University in Danville. She also consults with groups working on alternative 911 systems for developing nations. A year ago, she opened Valley Systema, where she teaches Russian martial arts. “I don’t really do one thing at a time,” she says. Lee doesn’t regret finishing her law degree. “Once I realized I wasn’t going into practice, I thought about dropping out,” she says. “But I’m glad I finished. Otherwise, I’d have the student debt and no degree. People assume a basic level of proficiency if you have a

law degree. It’s handy to have that credential, and it’s opened a lot of doors.” It’s not just the credential, though. What she learned in law school has been valuable. “There’s very little in life that does not benefit from good analytical reasoning,” Lee says. Kelly says the important thing for law school graduates is to be open to all options. “I just followed the path laid out in front of me,” he says. “It put me in a bit of a hole, and now I’m playing catch-up. If I’d been more open to other courses, other fields that didn’t necessarily fit with the classic model, I could have had more time to build success. Even young attorneys need to think creatively about ways to use their skills, and not let themselves be pigeonholed into the easy path. The traditional path may not be the best fit, and it will serve them to think about that on the front end.”

Giancarla Rojas Mendoza Radford University ’16 Major: Economics and Finance

“COMING HERE HAS OPENED SO MANY DOORS FOR ME. THE PROFESSIONAL GROWTH I’VE EXPERIENCED HAS CHANGED MY LIFE.” THE REASON IS RADFORD Giancarla Rojas Mendoza’s parents journeyed to the United States to find a better future for their children. The first in her family to go to college, Giancarla gained hands-on experience as a senior investment analyst for Radford University’s Student Managed Investment Portfolio Organization. She credits Radford University for the necessary preparation it gave her to attend graduate school and pursue a career in finance. “The mentors, faculty and advisors at Radford have really prepared me with the tools I need to succeed in the business world.” Learn more reasons why Radford might be right for you.

Radford.edu

Radford, VA

ROANOKE BUSINESS

EDUCATION

Radford University’s new President, Brian Hemphill, takes a selfie with some of the school’s students.

New man on campus

Radford University’s seventh president winning praise for his vision – and for his bow ties by Shawna Morrison

y the time Brian O. Hemphill officially became Radford University’s seventh president on July 1, he had already spent weeks on the job – meeting with faculty, students and staff, scheduling a tour across the state to meet with alumni and working on a strategic plan for the university’s future. “I think he’s the real deal,” says Holly Cline, chair of the university’s Department of Design and a member of the presidential search committee that selected Hemp-

SEPTEMBER 2016

hill. During his interview, she says, Hemphill presented a clear plan of what he would do during his first six months as Radford’s president. It included starting work before he officially stepped into the role. “And he has followed through even more so than what he said he would do. He is on campus, he is very involved and has a really good vision for our campus,” says Cline. Hemphill, 46, was selected from a field of 76 candidates after an eight-month search by the 20-member committee. “You could

just tell from the interview his passion and concern and sincereness in becoming part of the Radford University community,” adds Cline. “It wasn’t just a position for him.” Hemphill was chosen to succeed Penelope Kyle, who retired after serving as the university’s president from 2005 to 2016. He previously spent four years as the president of West Virginia State University, a public land-grant university in Charleston with an enrollment of nearly 3,200. The school is a historically black college, Photos courtesy Radford University

but its student body has evolved and today is now more than 80 percent white. A majority of the students are commuters. Before that, Hemphill spent eight years at 21,000-student Northern Illinois University, DeKalb, where he was vice president for student affairs and enrollment management and an associate professor. Like Radford, it began as a training school for teachers. Hemphill also worked as associate vice chancellor for student affairs and dean of students at the University of Arkansas-Fayetteville, from 2001 to 2004. Hemphill was not looking for a new job when he was contacted by a search firm about the position at Radford. However, he had known about the school for years. “When this opportunity presented itself and I took a look at the job description and what they were looking for and the skill set that was needed to come in and provide leadership, it was pretty clear to me that this was the place,” Hemphill says. “This was home. This was the place I was supposed to be.” Hemphill has identified six areas where he wants to focus his attention at Radford: brand identity, academic excellence and research, student success and retention, strategic enrollment growth, philanthropic giving and alumni engagement, and economic development and community partnerships. “I will tell you,” he says, “that there will be other areas that will develop, probably as strategic goals for the institution.” But those, he says, “are the ones that have been very clear in my working and speaking with faculty, with staff, with students, with the board, with alumni thus far.” Asked which task he considers most important, Hemphill responds, “They all are critically important to our future.” Hemphill plans to begin the strategic planning process this month, and will push for deadlines and measurements to ensure that goals are met. Hemphill played a key role in

Brian Hemphill wants to make the school more diverse and is looking to grow high school populations of Hispanic and Asian students to boost RU’s enrollment.

developing brand identity at West Virginia State. “What we were able to do in re-introducing West Virginia State to the state of West Virginia and the Charleston area and the region, I think that that was something that I’m very proud of,” he

says. He credits the school’s faculty, staff and students for working together to build “the level of respect and credibility that the institution has. They believed in the vision, and we were able to be successful.” During his time at West Vir-

Radford University • • • • • • • • •

Offers 67 undergraduate degree programs, 22 master’s programs and three doctoral programs Was founded by the Virginia General Assembly in the spring of 1910 under the name of the State Normal and Industrial School for Women at Radford Original mission was to expand Virginia’s public school system and prepare enough teachers First bachelor of science degrees were awarded in 1921 In 1924, the name was changed to State Teachers College Undergraduate men were admitted beginning in 1972 Became a university in 1979 Campus spans 204 acres in the city of Radford Brian Hemphill became the university’s seventh president on July 1

The previous six presidents were: John Preston McConnell (1911-1937), David W. Peters (1938-1951), Charles Knox Martin Jr. (1952-1972), Donald N. Dedmon (1972-1994), Douglas Covington (1995-2005) and Penelope Kyle (2005-2016). Source: www.radford.edu

ROANOKE BUSINESS

Education

Brian Hemphill toured the state to meet Radford alumni and to build support for his vision.

ginia State, philanthropic giving increased dramatically. The year before he arrived, just over $800,000 was raised. During his last year on campus, $7.6 million was raised. The endowment doubled, growing from $4.1 million to nearly $8.3 million. For Radford, Hemphill says, “I want people to know that Radford University is an institution that provides a world-class experience for its students. We produce graduates that have the ability to compete with anyone across the commonwealth and across the country. And we have amazing faculty that truly love this institution and work hard every day to ensure that our students are well prepared. This is a university that has a bright future.” One of Hemphill’s goals under the category of academic excellence and research includes identifying and strengthening some of the university’s signature programs. Hemphill is quick to add that Radford University “will always be a teaching university first and foremost.” Yet he is eager, he says, to 24

SEPTEMBER 2016

provide and expand opportunities for faculty who would like to conduct research. Opportunities for research will be identified through a process of engagements with the teaching and research faculty, he adds. Student enrollment at Radford has hovered at just under 10,000 for several years.

Goals under the category of economic development and partnerships include promoting the social needs of Southwest Virginia, serving as an economic driver in the region and the state and partnering with business and industry to diversify the economy and provide outreach and service. Other goals include the improvement of first-year retention rates. Those rates were 75.2% from fall-to-fall for students entering in the fall of 2014 and 86.1 percent from fall-to-spring for students entering in the fall of 2015. In the fall of 2015, 35 percent of Radford’s undergraduates were first-generation college students, notes Hemphill, and that may have an impact on retention. Still the goal is to help students, once they get to college, to stay there. Hemphill also wants improvement in six-year graduation rates, which were 59.4 percent for students who entered in the fall of 2009. Another goal is to connect with alumni. Hemphill spent part of the summer on an alumni tour with events in Roanoke, Christiansburg, Abingdon, Richmond, Reston and Virginia Beach. He says the alumni he has met have been engaged and interested in participating in efforts to help Radford University achieve the goal of becoming an innovative, premier institution. Enrollment at Radford has hovered just under 10,000 for several years. Hemphill wants to see growth, but not just for the sake of increasing numbers. “We want to look at strategically, what areas really make sense for us to grow in certain programs across the university, and we’re going to look at some key populations.” That includes Hispanic students and Asian students, which are growing high school populations, and international students. He says there is potential for growth in online programs as well. Many people, from students to Top photo courtesy Radford University Bottom photo by Alisa Moody

members of the universityâ&#x20AC;&#x2122;s board of visitors, say they are looking forward to working with Hemphill. â&#x20AC;&#x153;He brings a lot of energy and passion, and I think thatâ&#x20AC;&#x2122;s very important,â&#x20AC;? says Chris Wade, the boardâ&#x20AC;&#x2122;s rector. â&#x20AC;&#x153;President Kyle did a fantastic job with the facilities at Radford, and theyâ&#x20AC;&#x2122;ve really been upgraded during her tenure. Now that thatâ&#x20AC;&#x2122;s occurred, for our next president, we needed someone who could take those facilities and really leverage them for the best interest of the students and for the university.â&#x20AC;? Wade likes the way Hemphill connects with people, how he stops and talks with students as he walks across the Radford campus. â&#x20AC;&#x153;You can tell he really cares about students and about making sure that weâ&#x20AC;&#x2122;re providing the best education possible.â&#x20AC;? â&#x20AC;&#x153;I think we are very optimistic that Dr. Hemphill will come in and help us get a better sense of who we are as a university and what our mission is and help lead us to take those steps to get there,â&#x20AC;? says Carter Turner, president of the universityâ&#x20AC;&#x2122;s Faculty Senate. Turner says higher education â&#x20AC;&#x153;is not an easy thing to navigate. It takes leadership to be able to figure out what the landscape is going forward, where the curves in the road are so that weâ&#x20AC;&#x2122;re positioned to survive those and to thrive.â&#x20AC;? He says Hemphill seems like the right person for that job. Nicholas Shillingford, a senior computer science and math major from Woodbridge, says he was impressed after reading about Hemphill on the universityâ&#x20AC;&#x2122;s website and is looking forward to hearing him speak at the start of the fall semester. â&#x20AC;&#x153;I thought it was really cool how heâ&#x20AC;&#x2122;s been all over the countryâ&#x20AC;? working for different universities, Shillingford says. â&#x20AC;&#x153;I was very happy to see that heâ&#x20AC;&#x2122;s African-American, me being African-American. I feel like heâ&#x20AC;&#x2122;s representing minorities.â&#x20AC;? Also, he says, he likes Hemphillâ&#x20AC;&#x2122;s bow ties. Shillingford has been happy to see the amount of construction work done on campus under Kyleâ&#x20AC;&#x2122;s Photo by Alisa Moody

Radford University employs nearly 1,000 people and is an important economic driver for the city.

tenure and hopes to see the university continue to move forward. â&#x20AC;&#x153;It seems like theyâ&#x20AC;&#x2122;re trying to im-

prove stuff around here. I really like that, and I hope they can keep that going.â&#x20AC;?

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ROANOKE BUSINESS

INTERVIEW: Chris Desimone, founder of Star Tank

One reason Chris Desimone started Star Tank was to give his children a chance to stay in the area.

SEPTEMBER 2016

Photo by Don Petersen

Planting seeds

Local version of ‘Shark Tank’ links entrepreneurs with equity investors by Dan Radmacher

hris Desimone readily admits to the selfish motives behind Star Tank — a nicer, local version of the reality series “Shark Tank” that links entrepreneurs with investors. “We’re all doing it for selfish reasons,” he says. “We want to attract and retain talented individuals, including our children. I have four children, and rather than sit around and gripe, I wanted to do something to give them a chance of staying here if they want.” The Roanoke attorney has lived in Roanoke for about 17 years. He grew up and was educated in upstate New York, attending the University of Rochester and receiving his law degree and an MBA from the University of Buffalo. He met his wife, Laura, when they were both going to college in Rochester, N.Y. “I knew I was in love with her the moment I saw her,” he says. They were married in 1993. Chris finished a six-year stint in the Army, training as a paratrooper and serving in Alabama in the Army JAG Corps while Laura worked for CNN in Atlanta. They moved to Roanoke in 1999 to be closer to her family. He is the founder of The Special Needs Symposium and president of the law firm Anderson, Desimone & Green. Their oldest child is going to school at Virginia Tech. As their other children grow up and go to col-

lege, Desimone wants them to have the ability to return to Roanoke if they’d like. That desire inspired the development of Star Tank in 2014. Roanoke Business: How did Star Tank happen? Chris Desimone: We were in the kitchen one day watching the Shark Tank television show. And we all, my wife and kids and I, said, “Why don’t we do that locally? Why aren’t we doing that here?” I did the research, and no one was really doing that on the local level. There were a lot of pitch competitions where you get a prize or something, but nothing where there were actually equity purchases, where people in the community got together to invest and help directly with businesses and the management of them. So we thought it would work. My wife actually thought of the name. RB: What have you learned from the first two rounds of Star Tank? Desimone: I’ll be honest with you: What I’ve learned is different from what I thought would happen up front. We’ve sat down with 68 companies, most of them startups. I don’t know how many have found investors through the process, because we are not operating collectively, but as separate investors. I’ve personally invested with one company that I am now a co-owner of that’s bringing a product to market. What

I learned is that planting the seeds takes time, and sometimes the connections that are made take a while to germinate. Also, there’s nothing that’s exclusively a key to creating an entrepreneurial ecosystem. It’s not just about regional partnerships. It’s not just about an incubator. It’s not just about an accelerator. It’s not just about Roanoke Star Tank. It’s about all these things operating concurrently in such a way that synergizes the whole entrepreneurial ecosystem. That’s what I learned. It’s everything that connects. RB: Do you have any good examples of how that comes together? Desimone: I think businesses coming here are good examples. You don’t have to look any further than the newspaper to see that a brewery might come here because they value clean water, which was the result of many different folks coming from different angles to make sure that happened. I think what we traditionally thought were our weaknesses have turned out to be strengths. Some people would have viewed our topography and our geography as weaknesses. And yet, I think we’ve all discovered those are strengths. We’re a cool mountain town. Who would have thought the secret to our success wasn’t in the smoke-filled industry but in greenways and blueways and things that attract people? ROANOKE BUSINESS

Interview RB: Why is your focus on trying to build an entrepreneurial ecosystem as opposed to more traditional economic development approaches? Desimone: I’m driven. Many people sit around and gripe about the current economic situation in our community. I don’t want to be one of those people. I thought I’d rather just get up off the couch and try to do something. I believe that job creation and economic stability in our region will not come from one or two large corporations but rather a diversity of small businesses. And I genuinely believe that. I’m a capitalist, and I genuinely believe that we can accomplish it through the market. RB: Describe how Roanoke Star Tank works? What’s a session like? Desimone: It’s not like the show at all. It’s extremely positive. When we put together the panel, we looked for an all-star cast of people devoted to the local community. I was looking for people with three things: business expertise, capital to invest and commitment to the local community. A lot of people don’t have those three things. It’s all-volunteer, but they are all hoping they can help. We’ll probably have 20 to 25 people on the panel by November. It’s not pure altruism. Part of the purpose is that with an investment they may benefit and make money. There’s nothing more truthful and clear when you’re advising a business as when you own part of the business. There’s no fluff in that process. It’s good for all of us. Merely offering monetary grants is not of the same value as actually owning part of a business. There’s nothing that will make it more successful than owners being committed. Throwing money at things doesn’t work. Where that money comes from is important. Maybe that sounds too capitalistic, but I can’t think of a better vetting process. They’re not trying to be mentors. They don’t want to be lenders. There is no more truth 28

MAY 2016

Chris Desimone enjoys canoeing the Roanoke with his wife, Laura, and his daughter, Isabella.

in a process than someone putting their own money down. They will make sure that the business is going to be successful. RB: As you look back at what Star Tank has done so far, are there success stories that stand out? Desimone: We have many things in the pipeline, but we’re just one cog in the system. Here’s the irony. Again, you learn as you go. We’ve seen that there’s value even in the process itself. In other words, even entrepreneurs who have not done deals through Roanoke Star Tank but have gotten their ideas properly vetted by people who’ve been there and been in their shoes, they have benefited from that. In other words, even if it does nothing else than introduce critical thinking, it helps tremendously. There’s value in the process itself, for everybody. And there’s value in making connections even if you don’t do direct equity purchases. There’s value in killing businesses. There’s value in entrepreneurs figuring out before they mortgage their house that they should kill their business. And I know that sounds harsh, but there’s value in that.

I was asked to be a guest lecturer at Roanoke College, and one of the most difficult things to convey to the students was that ideas are somewhat worthless. It’s a very difficult concept for entrepreneurs to acknowledge, but ideas in and of themselves have very little value. It’s in the execution and the implementation of the idea that 99 percent of the value is. And it’s tough for entrepreneurs to stomach that. That’s the other thing about Roanoke Star Tank, and it’s my fault. I assumed that it would be quick, short-term transactions, but it turns out that to effectively build this entrepreneurial community, it takes long-term plays. We are seeing things that happened 15 years ago that we’re now benefiting from. So a lot of the groundwork that’s being laid now through Roanoke Star Tank may not come to fruition for a few years. It’s like planting seeds. It just takes time. But you’ve got to plant the seeds now even if it might take many years for something to connect. RB: How has Roanoke changed since you’ve been here? Desimone: It hasn’t changed itself, but our focus has changed. Groups Photo by Don Petersen

that, perhaps, people thought of as traditional adversaries, like environmentalists and business development groups, realize that perhaps clean water and nice blueways and trails are actually a recipe for success. There are more groups allied now because they see consequences. They see results. In the last couple of decades, I think that people are more openminded to showcasing what we have here. It’s nothing new. We didn’t discover anything new; it’s just that we can focus on showcasing our strengths. People aren’t as resistant to growth as they once were, because it’s the right kind of growth that still preserves Carvin’s Cove and the surrounding areas and still preserves our outdoors. People seem to be OK with that, and that seems to be a fundamental change. People always associated growth with blights and scars on the land. It doesn’t have to be that way. It turns out that more outdoors is attractive. RB: How do you feel about the region’s future? Desimone: I believe we’re in our infancy when it comes to business development. I believe that the business leaders in the community today

are standing on the shoulders of the people that came before us who really did lay a great groundwork, but it’s up to us to use that platform to achieve more. It’s an understatement to say that everyone’s excited about our future. It’s palpable. Just in the past several years it seems like there’s an undercurrent of sparks that keep occurring in a synergistic effect on our culture. It’s safe like it’s always been and a great place to raise a family, but now it seems like it’s more than that. There’s an underground collection of movements occurring concurrently that are going to help us out. What we’ve learned at Roanoke Star Tank, for example, is that many areas of the country have been mined, but in Southwest Virginia, nobody’s really looked under the rocks yet. And so the reason why we feel there’s going to be a tremendous surge in entrepreneurial activity is because no one’s mined this area. It’s not like in Silicon Valley, where every rock has been overturned. We’re still in our infancy in that regard so that we know that the best is yet to come. Sounds dramatic, doesn’t it? But I mean that. We’re like the planet nobody’s looked at. RB: What are your favorite things about living here? Desimone: I love the outdoors. I love to fish. We canoe all the rivers. We like to hike. We’re into primitive hiking. We just go out there. We don’t even use tents anymore. We just throw the hammocks up in the trees. I was taking my son on a trip before his senior year and asked him what he wanted to do. He said, “Well, I’d kind of like to hike.” I consider myself a successful father if I just get my kids outside. We love it here. And the other thing we’ve seen is that we’re big enough. We don’t have to be huge to really get those sparks in business development to work along and with one another. Quite frankly, if we were in a town of 20,000 people, it would be tough to really do this. But we’re big enough. [Roanoke has a popu-

lation of nearly 98,000.] You can go outside and then the same night, go to the opera. We have most of what we need. But I’m one voice. There are many people working on this same objective. RB: You say we have most of what we need. What don’t we have that we could use? Desimone: I think we’re just scratching the surface on public-private partnerships, and I think that’s going to continue to grow. Our legislators are on board, and I think they get it. I don’t think we’re deficient in that area; I think we’re going to increase in that area. It seems that proper economic development is something that everybody agrees on. It seems independent of politics. It’s independent of religious faith. It’s independent of political viewpoints. It’s something we can all rally around. There’s no downside. There are no adversaries. We’re all on the same side of the table. It’s one thing our community can embrace. As we’re progressing; preservationists, conservationists, environmentalists seem to be more on the side of and in agreement with the business development groups because clean air, clean water, air quality and all of those things attract talented employees of those companies. That’s what makes it where people want to live. So it seems like they’ve been more and more in line on other issues. That’s the other thing we’ve learned in this process is that we’re all in this together. There’s nothing that one business or project or government or entity undertakes that doesn’t impact other businesses and other projects and other entities. It’s all connected. There’s no one individual that’s going to conquer this issue. There’s no one group. There’s no one entity. Our future is in the collection of the groups and the collection of agencies and the collection of individuals. That’s where our strength is. ROANOKE BUSINESS

COMMUNITY PROFILE

Radford City Manager David Ridpath says the city faces challenges.

Radford

A small city that’s home to Radford University wants to draw more small businesses. by Gene Marrano

avid Ridpath, Radford’s city manager since 2010, sums up the challenges in attracting new business to the small, land-locked city. “Limited land area for development options, an overall stagnant economy and competition with demographics in larger surrounding communities.” Yet the city has an economic powerhouse in Radford University, and there are benefits to its proximity to Virginia Tech. Radford is literally surrounded by Pulaski and Montgomery

SEPTEMBER 2016

counties, with Montgomery home to Virginia Tech in Blacksburg. Tech has grown its Corporate Research Center (CRC) into a major job-creating entity by utilizing talented people from the school. Techlab, an intestinal diagnostics equipment manufacturer located at the Radford Industrial Center, began its life as a CRC tenant. Within its own city limits Radford University, with nearly 10,000 students and more than 1,000 employees, “is a good economic engine for Radford,” says Ridpath.

Many students live off campus, spending money in the city on apartment rentals, meals and the like. “The hope is that if students invest in the Radford community while they are here as students they will want to stay, find jobs and start a family.” Radford Chamber of Commerce President David Horton, who works at Radford University in the College of Science and Technology, says every community wants to be a destination, where people are drawn for shopping, Photos by Alisa Moody

dining and special events. “That helps the community, as far as having elements that are part of the quality of life.” Radford has a number of “interesting opportunities and challenges,” adds Horton, with major smokestack industries no longer playing the major role they once did. Having Radford University “provides a level of stability where things can be tried.” For instance, he cites the Radford Coffee Company on West Main Street. According to Horton, the company has been fostering a sense of community since owners Barbara and Eric Johnson opened it in December. Money raised by coffee sales goes directly to help educate students along the Rio Coco, the river that separates Nicaragua and Honduras. The staff at Radford Coffee is comprised of volunteers. “We do not pay anyone,” says Barbara Johnson. So far, the venture has raised about $40,000, she adds, after operational expenses. Companies that enhance quality of life and a community feel may be the city’s strongest drawing card. “That’s what we’re looking for – [businesses] that have the right model,” says Horton. Another good sign is new firms setting up shop in the city. That indicates to Horton that local government is business-friendly when it comes to permitting and licensing. With the shuttering of the local Small Business Development Center on the Radford University campus at the end of June (the Roanoke Regional Chamber has taken over some Radford-related efforts), city officials may lean more on a community development nonprofit, Beans and Rice, which typically offers programs for those on the lower end of the economic scale. It also has developed a “micro-enterprise” business development incubator. Microloans and technical assistance are among the services offered. In June, a Radford spokesman said, the decision was made

The Radford Coffee Co. is credited with helping to create a sense of community.

to shift funding from the SBDC office to other business programs at the school, where they will be used to help students launch new enterprises. (The university and the state had been funding that office.) Beans and Rice Execu-

tive Director Eric Bucey says he is “looking at ways” the various programs offered to business startups in the New River Valley can be better coordinated for efficiency and impact. It’s all about “trying to create an ecosystem where people

Radford University is one of the city’s major employers.

ROANOKE BUSINESS

Community Profile can get the resources to test their ideas. Lots of people have ideas — sometimes they have to figure out that their baby is ugly.” Bucey says Beans and Rice was “already coordinating closely” with the SBDC at Radford University. Replicating programs Beans and Rice has offered at its original Pulaski office are some of the items Bucey — a Radford University alumnus — has been discussing with Radford Economic Development Director Basil Edwards, “We’re just starting that process.” Bucey says Beans and Rice also is working with local school divisions, The city has spruced up its downtown with new lighting, planters and brick crosswalks.

SEPTEMBER 2016

developing an entrepreneurial program where students create their own small business concepts. Edwards has been the economic development director in Radford for 17 years. One sign of the times: the city’s Industrial Development Authority is now the Economic Development Authority, a recognition that developing smaller businesses is at the forefront. Among the tools the city leans on heavily now is an attractive downtown with streetscaping, improved parks and small businesses that draw residents and visitors. The city now has “period light-

ing” on Main Street, planters in municipal parking lots and brick crosswalks downtown. Park improvements include additional ballfields at the New River Sports Complex, boat ramp improvements at Riverview Park and a public dog park. Private funding and several grants helped fund these projects. “That pays dividends,” says Edwards. As for hosting Radford University: “I can’t say enough as to how important that is.” He estimates the annual economic impact regionally at $290 million. It’s hard to pinpoint, he adds, exactly how much of that takes place within Radford city. “Where the city benefits most,” Horton says, “is from professors owning homes, students shopping locally and tourism generated by the university programs.” Big-footprint corporations that employ hundreds of people “are becoming harder and harder to land,” says Edwards; “[there is] a lot of competition — and fewer companies that are looking to build in new locations.” The city does have an Enterprise Zone designation, making businesses eligible for state grants and tax abatements in some cases, but it doesn’t have much of a budget otherwise for offering major incentives. Regional cooperation is more important than ever since companies employ Radford residents even if those companies are not within the city. “We’ve always had a good working relationship with the counties around us,” says Edwards. The New River Valley Regional Alliance does a commendable job when it comes to marketing, he adds. Prospects visiting the Alliance website would see the NRV’s high rankings as a place to live, retire and start or expand a business. Within the past year, Gov. Terry McAuliffe announced multimillion-dollar expansion projects in adjacent Pulaski County for both Volvo and Camrett Logistics. Radford Mayor Bruce Brown is an adjunct professor of business at Photos by Alisa Moody

Radford University in retirement after spending his career in the community college system, mostly with New River Community College. Brown was first elected to Radford City Council in 2002 and is serving his second term as mayor. Where it may have been harder not too long ago to do business in Radford, a cultural shift in local government he attributes in large part to City Manager David Ridpath has turned that philosophy more toward “ ‘What can we do to help?’ I think that’s widely known.” The meals and lodging taxes collected every year now approach $1.5 million. Brown recalls it didn’t reach even $300,000 when he joined council 14 years ago. Growing 10 to 12 “seminal events” every year that bring people to town – like the Highlander Games and the high school Jubilee spring sports festival – is a major goal. At this point the town’s events calendar lists a handful of such major hap-

Radford’s Bissett and Wildwood parks are among the city’s jewels.

penings this year. In 2015 the city issued 609 business licenses, which includes those for special events and licenses for contractors. Brown would like to work more closely with Radford University on scheduling concerts and other cultural offerings. The city could “fold

LIFE FEELS GOOD WITH A BANK THAT CARES ABOUT COMMUNITY.

up the tent,” he says, if the university wasn’t there as an economic driver. Brown praises recently retired university President Penelope Kyle for $330 million worth of jobproducing construction projects at the school that happened on her watch – leading to a trickle-down effect locally. Outdoor amenities such as the New River coursing through the city also draw a demographic “that [has] money to spend,” says Brown. To grow this type of business, some people want to bring in additional motels and national retail chains. Brown and fellow council members are working to rewrite zoning and ordinance guidelines, making it even easier to start businesses. He reiterates that commercial and retail is now the focus – not the bigger companies. “The reality is that’s not the 21st century. It’s the small businesses that hire 50 or less.” That’s the new world the city seeks today.

Christiansburg-based non-profit Community Housing Partners (CHP) brings affordable housing to low-wealth and low-income areas. It’s a rewarding job, but financially complex. CHP depends on Union commercial lender Nathan Hockersmith for funding and cash flow management. According to CEO Jeff Reed, CHP relies heavily on Union for all their banking needs, including credit lines, commercial loans and merchant capture services. Find out how Union can offer solutions that make your business feel right at home.

540.378.1546 Union Bank & Trust ROANOKE BUSINESS

SPONSORED CONTENT | Roanoke Regional Chamber of Commerce If you have news you’d like to see in this section, send your information to Pennie Anderson at panderson@roanokechamber.org. Chamber Champions are members who support the Roanoke Regional Chamber through year-round sponsorships in exchange for year-round recognition.

contractor within Virginia and nationally. Branch was ranked #182 in the top 400 national contractors in the Engineering News-Record. Virginia Business magazine ranked Branch #4 among general contractors in Virginia.

2016-2017 CHAMBER CHAMPIONS BNC Bank Brown Edwards Cox Business Elizabeth Arden Gentry Locke Attorneys LifeWorks REHAB (Medical Facilities of America) MB Contractors

Pepsi Bottling Group The Roanoke Times Rockydale Quarries Servpro of Roanoke, Montgomery & Pulaski Counties Spilman Thomas & Battle, PLLC Trane Woods Rogers PLC

EVENT SPONSORSHIP

NEW MEMBERS

Thursday Overtime – July 7

The following new members joined the Roanoke Regional Chamber between June 9 and July 8.

Martin’s Downtown Bar & Grill

Clear Channel Airports

Public Safety Forum with Virginia Atty. Gen. Mark Herring – July 22 Virginia Western Community College

George

Brown Edwards, a leading regional certified public accounting firm, has announced that Laura Sprouse and Tim George have joined the partnership. Sprouse is the firm administrator. Her responsibilities include the information technology and training areas. George serves in the assurance area. He specializes in accounting, taxation and various consulting services for privately held firms in the construction and engineering and design industries.

Gleason

Sweet

Misicko

Mogen

Skolnik

Wasserman

Sprouse

Fringe Benefit Group Martinsville Speedway ServiceMaster of Roanoke The Spot on Kirk Tyco Integrated Security Wholesome Harvest Baking LLC

MEMBER NEWS AND RECOGNITIONS American Family Care (AFC), the nation’s leading provider of urgent care and accessible primary care, has announced that it has retired the Doctors Express name. This rebranding is expected to enhance the company’s position as one of the most widely recognized and respected brands in health care. Patients of the Doctors Express location in Roanoke can continue to expect the high-quality, personalized health care they have relied on for the past five years. Stewart L. Barnes, a private wealth adviser with Ameriprise Financial in Roanoke, recently received the Accredited Portfolio Management Advisor designation from the College of Financial Planning. Barnes He completed a course of study encompassing client assessment and suitability, risk return, investment objectives, bond and equity portfolios, modern portfolio theory and investor psychology. Phenom Hoop Report and American Family Care of High Point, firms located in North

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Carolina, have chosen B2C Enterprises to work on a variety of marketing and communications projects. The Roanoke-based agency now will be working with both businesses. Matthew Ely, a financial adviser with the Myrias Group, a private wealth advisory practice of Ameriprise Financial Services in Roanoke, recently obtained the Certified Financial Planner certificaEly tion. Ely successfully completed the rigorous requirements that include course work and a series of examinations. The Berglund Center has been converted from traditional HID and quartz lighting to the latest in LED sports lighting. Spectra by Comcast Spectacor assisted with the conversion at the Berglund Center and 13 other arenas it manages. The new lighting will provide energy and cost efficiencies at the center. The Branch Group Inc. announced its recent recognition by Virginia Business magazine and Engineering News-Record as a top ranked

Carilion Clinic has announced the following personnel changes: Jonathan L. Gleason, M.D., has been appointed medical director of risk management. Gleason joined Carilion in 2010 and also serves as chief of urogynecology. Martin Misicko, M.S., Ph.D., joined Carilion in April as vice president of facilities. Paul Skolnik, M.D., joined Carilion Clinic and Virginia Tech Carilion School of Medicine in May as chair of the Department of Medicine. Skolnik comes to Carilion after serving as chairman of the Department of Medicine at the University of Connecticut Health Center. William “Bill” Wasserman, M.S., joined Carilion in May as vice president of psychiatry. He comes to the clinic from Liberty Healthcare Corp. at Westchester Medical Center in New York. The following individuals recently received recognition: Jon M. Sweet, M.D., received the Laureate Award from the Virginia American College of Physicians; Chad DeMott, M.D., received the Academic Teaching Award from the Virginia Chapter of the American College of Physicians; Thomas C. Mogen, M.D., re-

Roanoke Regional Chamber of Commerce | SPONSORED CONTENT ceived the Gold Star Award from the Virginia Department of Health’s Virginia Vaccines for Children Program for achieving an exceptional immunization rate; and Keith Perry, Carilion Clinic Chief Information Officer, was named president-elect of the Virginia Chapter of Healthcare Information and Management Systems Society.

Halliwill

Don Halliwill, the CFO of Carilion Clinic since 2013, has been named one of the “150 Hospital and Health System CFOs to Know 2016” by Becker’s Hospital Review. Halliwill joined Carilion in 1997 and has served in numerous capacities.

Cox Communications has announced that Emma Inman will serve as interim vice president of public and government affairs for the Virginia region. Inman will oversee all aspects of the region’s Inman public and government affairs efforts, including community relations, media relations, employee communications and government relations. The 17th Annual Delta Dental Pro-Am for Kids raised more than $100,000 for the Boys & Girls Clubs of Southwest Virginia. Since it began in 2000, the event has contributed more than $1 million to the nonprofit. This unique golf tournament and auction pairs three amateurs with a Virginia golf professional, and the professionals compete for a share of a $10,000 purse provided by Allstate. This year’s champion was Roanoke’s Tommy Joyce.

Beers

Feldmann

Darby

Goodlatte

Ziogas

Glenn Feldmann Darby & Goodlatte has announced that five of its attorneys are recognized in the 2017 rankings of Best Lawyers in America. Included are: Paul G. Beers, commercial litigation, labor and employment litigation, and employment law for individu-

als; Harwell M. Darby Jr., corporate law and public finance law; Mark E. Feldmann, commercial transactions/UCC law; Maryellen F. Goodlatte, real estate law and real estate litigation; and Robert A. Ziogas, commercial litigation. Beers was also named the Best Lawyer 2017 “Lawyer of the Year” in the Roanoke Valley specializing in employment law for individuals. Goodlatte was recognized as the Best Lawyers 2017 “Lawyer of the Year” in the Roanoke Valley specializing in real estate law.

Maxx Performance has been awarded SQF Level 2 Certification with the highest possible rating of excellent, verifying the company’s exceptional quality control and food safety practices, in conjunction with the launch of its new website. SQF Level 2 Certification is a Hazard Analysis & Critical Control Points based on food safety and quality management standards benchmarked by the Global Food Safety Initiative. Obtaining certification serves as a guarantee to customers. Maxx Performance earned a score of 96/100 for an excellent rating. Vicki Love has joined Professional Network Services as a hosted telephony specialist. Love has over 30 years of experience in technology sales.

Accomando

Whittaker

Lightner

The Hotel Roanoke & Conference Center, Curio – A Collection by Hilton, has announced the appointments of Daniel Accomando as director of restaurants, Lindsay Whittaker as beverage manager, and Jessica Lightner as restaurant manager. Accomando will oversee daily operations in the Regency Room and the Pine Room Pub. Whittaker is responsible for all beverage operations throughout the hotel and conference center. Lightner manages the daily service in the Regency Room. The Jefferson College of Health Sciences Education Foundation recently presented the Distinguished Alumni Award to Sue M. Campbell, Sara L. Nicely and Kim E. Roe. The Recent Alumni Achievement Award was presented to Kimberly D. Hall and Sheila K. Lambert. The awards were presented at the foundation’s annual luncheon in June. LeClairRyan has launched a new blog geared toward owners, operators and management companies in the long-term care sector. Called Long Term Care Counsel, the blog, at Itcounsel. com, offers insights and commentary from veteran attorneys with the national law firm. Nancy Reynolds, a shareholder in the firm’s Roanoke office, said the need to understand and respond to emerging issues in the long-term care sector will only increase as the population over age 65 in the United States continues to rise. For the past 11 months, LewisGale Regional Cancer Center has undergone a multiphase capital project, including $6.5 million in new radiation-therapy technology and renovations throughout the cancer center, including an expansive canopy entrance that leads patients and visitors into a spacious, welcoming reception area. The addition of new technology also includes a $2 million de Vinci Xi Surgical System and a $1 million 3D Mammography Unit. Also included is a $6 million two-story medical office building.

The collaboration of public and private partners to create a more vibrant neighborhood in the West End area has yielded big results. As a part of the City of Roanoke’s strategy to focus CDBG funds on a specific area to achieve a greater impact for the community, revitalization of the West End area began in July 2011. Final activities were finished in June with a total of $5,607,124 in CDBG and HOME funds were expended.

Fintel

Jessica Fintel has joined the Roanoke County Department of Economic Development as an economic development specialist. Her primary responsibilities include execution of marketing and communications efforts and working with existing businesses.

The Roanoke County School Board has named Jim Bradshaw as the new director of human resources for Roanoke County Public Schools. Bradshaw replaces Dominick McKee, who was named the new principal at Northside High School. Bradshaw first joined the school system in 2004 as the coordinator of music. He was named assistant principal at Glenvar Middle School in 2011. He most recently served as principal at the Botetourt Technical Education Center. The Roanoke County School Board has named Lori Wimbush principal at Hidden Valley High School. She replaces Rhonda Stegall, who has been named the new director of secondary instruction for the school system. Other personnel changes in the school system include the naming of Paul Lineburg as the new principal at Northside Middle School. Ken Nicely has been named the new director of administration. Virginia Tech has formed an eight-member advisory board for its highly ranked master of information technology program. The master of information technology is an online proROANOKE BUSINESS

SPONSORED CONTENT | Roanoke Regional Chamber of Commerce gram that draws students, most of whom are full-time professionals, from around the nation and the world. The program is managed by the Pamplin College of Business, which collaborates with the College of Engineering on the design and delivery of the courses and curriculum. The new board will offer guidance on such topics as student recruitment, markets to target, resources and methods to promote the program, course pricing and delivery, and the overall curriculum. Spilman Thomas & Battle PLLC has announced that attorney Bryce J. Hunter has joined the firm. His primary area of practice is banking and financial services law, including securities law, finance transactions, creditorsâ&#x20AC;&#x2122; rights Hunter and debt restructuring. He earned his undergraduate degree from Dickinson College and his law degree from The College of William and Mary.

Bailey

Carol Ann Bailey, an associate professor of sociology in the College of Liberal Arts and Human Sciences at Virginia Tech, has been conferred the title of associate professor emeriti by the Virginia Tech board of visitors. She has been at Virginia Tech since 1987.

Doug Bowman, professor of computer science in the College of Engineering at Virginia Tech, has been awarded the Frank J. Maher Professorship in Engineering by the Virginia Tech board of visitors. A member of the faculty Bowman since 1999, Bowman is a world leader in research in 3-D interfaces for computers and virtual reality. John A. Brozovsky, professor of accounting and information systems in the Pamplin College of Business at Virginia Tech, has been reappointed the Wayne E. Leininger Faculty Fellow in Accounting and Information Systems by Brozovsky Virginia Tech President Timothy D. Sands and Executive Vice President and Provost Thanassis Rikakis. Brozovsky has held the Wayne E. Leininger Faculty Fellowship since 2010. John K. Burton, professor of learning sciences and technology in the College of Liberal Arts and Human Sciences at Virginia Tech, has been conferred the title of professor emeritus by the Virginia Tech board of visitors. He has been a member of the Virginia Tech community since 1977. 36 3 6

SEPTEMBER 2016

Jacobsen

David C. Jacobsen, associate professor of music in the College of Liberal Arts and Human Sciences at Virginia Tech, has been conferred the title of associate professor emeritus by the Virginia Tech board of visitors. He joined the Virginia Tech community in 1988.

Luke Lester, professor and head of the Bradley Department of Electrical and Computer Engineering in the College of Engineering at Virginia Tech, has been awarded the Roanoke Electric Steel ProLester fessorship in Engineering by the Virginia Tech board of visitors. He joined the Virginia Tech faculty in 2013.

Magliaro

Susan G. Magliaro, professor of educational psychology in the College of Liberal Arts and Human Sciences at Virginia Tech, has been conferred the title of professor emeriti by the Virginia Tech board of visitors. She has been at Virginia Tech since 1988.

Deborah G. Mayo, professor of philosophy in the College of Liberal Arts and Human Sciences at Virginia Tech, has been conferred the title of professor emeriti by the Virginia Tech board of visitors. She has been a member of the Virginia Tech community since 1979. Peggy S. Meszaros, the William E. Lavery Professor of Human Development in the College of Liberal Arts and Human Sciences and former provost at Virginia Tech, has been conferred the title of Meszaros William F. Lavery Professor Emerita of Human Development and Provost Emerita by the Virginia Tech board of visitors. She has been a member of the Virginia Tech community since 1993. V. Hunter Pittman, associate professor of architecture, has been appointed interim director of the School of Architecture + Design in the College of Architecture and Urban Studies. He succeeds Henri de Hahn, who is stepPittman ping down to focus on teaching and research. Pittman has been a faculty member at Virginia Tech since 1995. Amy Pruden, professor of civil and environmental engineering in the College of Engineering and associate dean and director of

interdisciplinary graduate education in the Graduate School at Virginia Tech, has been awarded the W. Thomas Rice Professorship in Engineering by the Virginia Tech board of visitors. She has been a member of the Tech faculty since 2008.

McNamara

Raman

Riad

Thomas M. McNamara Jr., the founding president and chief executive officer of the Virginia Tech Applied Research Corp., has announced plans to step down from the post he has held since 2011. Sanjay Raman, Virginia Techâ&#x20AC;&#x2122;s associate vice president for the National Capital Region and a professor of electrical and computer engineering, has been named interim president and CEO of the university-affiliated research enterprise. Sedki Riad, professor of electrical and computer engineering in the College of Engineering at Virginia Tech, has been conferred the title of professor emeritus by the Virginia Tech board of visitors. He has been a member of the Virginia Tech commu-

nity since 1979.

Siegle

Robert Siegle, professor of English in the College of Liberal Arts and Human Sciences at Virginia Tech, has been conferred the title of professor emeritus by the Virginia Tech board of visitors. He has been a member of the university community since 1978.

Wanda J. Smith, associate professor of management in the Pamplin College of Business at Virginia Tech, has been conferred the title of associate professor emeriti by the Virginia Tech board of Smith visitors. She has been a member of the university community since 1997. Dwyn Taylor has been named assistant vice president for facilities operations and construction at Virginia Tech. He comes to Virginia Tech from Jacksonville, Fla., where he spent five years working in Taylor the private sector in the design, engineering and construction industry.

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