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What’s Inside A R I Z O N A’ S

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Designer moves gaming into a whole new world that’s virtually yours.

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A faster method of genetic sequencing holds new promise for researchers.

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Incubators and others programs put entrepreneurs on faster tracks.

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On the Cover :: The Entrepreneur Issue

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Is there Enough to go Around? “Angels” and others share state of getting investors to show you the money.

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In Every Issue 006 President’s Letter 008 Editor’s Letter 024 Arizona State University 026 The University of Arizona 028 Northern Arizona University 030 Capitol Watch

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Recessions can encourage potential entrepreneurs to start new companies, if the founders perceive their prospective competition might be lessened. Rising unemployment can be viewed as a benefit to new enterprises as entrepreneurs may see it as an opportunity to draw upon a larger pool of potential employees. While these startups may seem invisible at first, they have the potential to grow into household names. Either way, they steadily regenerate our economy—spawning jobs and innovations. And even businesses that reach the heights of the best and largest companies in America often demonstrate the vigor and agility of successful entrepreneurial ventures. We celebrate, encourage, support and chronicle our best and brightest entrepreneurs in Arizona in this issue of TechConnect magazine. Let’s watch them take us all to a solid economic future.

ough economic times can serve as a catalyst for renewed entrepreneurial activity, leading to the creation of much-needed new jobs. In fact, many of today’s largest companies were created during a recession or an economic downturn. Additionally, job creation from startup companies is less volatile and less sensitive to downturns as compared to the economy as a whole.

New fi rms create additional jobs and fuel our economy. According to the Census Bureau, nearly all net job creation in the United States since 1980 has been generated by fi rms operating for fewer than fi ve years. Good public policy also supports entrepreneurship and economic recovery. At the state level, the Council is

working to create a tradable, refundable R & D tax credit to enable companies with fewer than 250 employees to monetize their tax credits. Putting capital in the hands of technology entrepreneurs will help stimulate economic activity and help solve our nation’s most pressing challenges.

STEVEN G. ZYLSTRA

President & CEO, Arizona Technology Council

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fter seemingly endless news stories about joblessness, bankruptcies and other traits of the recession, anyone would think that all 008 prospects for entrepreneurism in America have gone away. No more land of opportunity, right? You would certainly believe that based on what the mainstream media has reported. But any regular reader of TechConnect will tell you there is plenty happening in Arizona. The state for some time has been a hotbed for entrepreneurs. But many of those innovators now are staking their claims through technology. Recession or no, nothing seems to stop them from breathing life into their ideas. How do they do it? Most realize that the biggest risks can bring the biggest rewards. But those rewards aren’t always just about money. Many serial entrepreneurs will tell you they do it simply for the feeling of pride and accomplishment. For the techie entrepreneur there is the added bonus that what they do can inﬂuence lives. Take, for example, Lilian Myers, who has been involved with a number of tech start-ups. When she talks about her new baby, CarePass, you can tell this is someone who can’t wait to

jump out of bed to see what the day brings. It’s contagious for anyone in the room with her. As you’ll read, CarePass has the potential for shaping health care delivery. You’ll get a sense of what the excitement is all about. Then there’s Steve Pierce. He had been making his mark in the world of gaming as a design manager. But he wanted to take the next step into a new world— literally. He began Onverse, a virtual social game. In reality, it actually is a virtual world. You also will meet him and learn more about his latest creation. While successful in their own right, Myers, Pierce and others like them still need money—not for personal gain but to help their enterprises grow. Hear the latest from “angels” and others in the investment community on where entrepreneurs needing capital stand in light of a battered economy—and it’s not all bad news.

Arizona also has become home to incubators and other programs created to foster ideas. We name names and offer a brief description of some of them. The way things are going, there will be more to add to the list in the near future. If you think the time is right to strike out on your own, you should be interested in this issue. Or, if you’re a high school teacher reading your copy of TechConnect, we encourage you to share it with your students. Let those people featured in this edition help lead the way for the next generation of entrepreneurs who will follow.

DON RODRIGUEZ

Editor, TechConnect Magazine

arT DirECTOr Jim Nissen, Switch Studio DEsigNErs Chaidi Lobato Erin Loukili Kris Olmon CONTriBuTiNg WriTErs Robert Bortnick Jim Brewer Christopher Di Virgilio Kara Fort Joan Koerber-Walker Kate Nolan Diane Rechel Bruce Wright Steve Yozwiak TraDEmarK // gENEraL COuNsEL Quinn Williams DisTriBuTiON parTNErs Tucson Chamber of Commerce

E-maiL editor@techconnectmag.com For queries or customer service, call 602-343-8324 TechConnect is published by the Arizona Technology Council, One Renaissance Square, 2 N. Central Ave., Suite 750, Phoenix, AZ 85004.

Entire contents copyright 2010, Arizona Technology Council. Reproduction in whole or in part without permission is prohibited. Products named in these pages are trade names or trademarks of their respective companies. TechConnect is a trademark of the Arizona Technology Council. All rights reserved. Publication of TechConnect is supported by private-sector businesses, and is not financed by state-appropriated funds.

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Huge potential seen in combining Web social networks and multiplayer online games

where I was free to explore my creative ideas away from the corporate philosophy.” Pierce has his own perspective on games he used as a cornerstone when Onverse was just an idea. “The goal is to give the players an awesome place to hang out online,” he says. “Unlike other gaming platforms, Onverse is marketed as a game and has a positive environment.” Onverse is carefully monitored and players are restricted from inappropriate behavior. Pierces notes that the game is “kid friendly,” and it is open to anyone 13 and older. Onverse is not just a “party zone.” Players soon will be able to build a virtual world of work, school, or play. “As we progress, there could be opportunities for players to come into Onverse to ‘go to work,’ ” Pierce says. “Applying for a ‘ job’ would probably consist of playing a game such as a doctor might have to play ‘Operation’ to get ‘hired.’ ” + GET CONNECTED www.onverse.com

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here is an alternate universe looming in the vast reaches of the Internet. An angular mass of 3-dimensional immigrants arrive daily, seeking refuge within a computerized world -- a complete society. That society is Onverse, a virtual social game that was created under the innovative eye of Steve Pierce, Onverse CEO and lead

Gamers today have limited attention spans, so we are always looking for new and innovative ways to keep them engaged.

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– Steve Pierce, Onverse CEO and lead designer designer. The Tempe-based business hopes to make its mark into what has become a multimillion-dollar-a-year industry -- the world of online virtual games. “We currently have 73,000 players,” Pierce says. “Ten percent of them are hard-core players who spend at least 16 hours a week within the game world.” Pierce used the words “online” and “universe” to arrive at the name Onverse, and he hopes for a formal launch in March. “We are still in the Beta stage,” he says. “We are making adjustments and tweaking

certain systems while allowing players to join and interact.” Onverse spent more than one year in development before going live in 2009. “We are a small, independent, talented and hardworking team,” Pierce says. “We felt this was the natural progression of online communities and saw a huge potential in the combination of Web social networks and multiplayer online games.” Onverse combines the social networking platform of Facebook or Twitter with the adventure-based platform of a virtual game. Players are able to interact with other players, objects and locations in a 3-dimensional world. They collect tools and credits during their travels that become useful throughout the game for upgrading their homes or clothing. The game has myriad social venues, such as dance clubs, group activity spots, and shops. Players are able to host parties at the homes they buy and decorate. “Game retention is the goal...and the trick,” Pierce says. “Gamers today have limited attention spans, so we are always looking for new and innovative ways to keep them engaged.” Pierce obtained his bachelor’s degree in information and design technology from San Diego State University, where he also found his passion for online games. He went on to work for Sony Online Entertainment, where he quickly climbed the ladder to become a design manager on the critically acclaimed sequel, EverQuest II. “Sony was my dream job,” Pierce says. “I was motivated to branch out on my own

Q&a with steve pierce WHAT ADVICE WOULD YOU GIVE SOMEONE WEIGHING THE RISK OF BEING ENTREPRENEUR? Do it but prepare for it to take longer and cost more than planned. It can be the best learning experience ever. Whether you succeed or fail, it’s well worth the effort. Make sure your ﬁnancing is lined up, and then go ﬁnd more. DOES THE CURRENT STATE OF THE ECONOMY MAKE IT EASIER OR HARDER TO BE AN ENTREPRENEUR? It has had a certain affect for us. It depends on your venture, but for us, people are looking for alternative ways to going out for their entertainment. This is a great time for opportunity. If you are able to stay strong and weather out the storms, you can survive...and pick up the crumbs from those who didn’t. WHY HAVE YOU SELECTED TECHNOLOGY AS THE PLACE TO BE AN ENTREPRENEUR? I can remember as a boy always being fascinated with computers and technology. My favorite game was Everquest. My brother, who was older, had planned on creating his own game, and I would try to learn as much as I could from him. That really set the path for me.

Close+up customer Rick McQuaide. “The ﬂexibility of courses allows me to not only efficiently balance career and personal/family life, it ensures that my lifestyle can continue by providing the professional level of training that I need to keep current with industry knowledge and trends.” Cherney realizes her launch may have been successful, but she has a long way to go. She would like to see an additional 10,000 to 20,000 members by the end of the year and 3 million members or more by 2013. “We have a vehicle to make learning work in every corner of the world where there’s an Internet connection,” she says. “When you spark that creative process, you light the idea that might change the world.”

global Learning GoGogh.com leader creates cost-effective online training institute WRITING BY :: KARA FORT

loyal following Dash Courses provided the training ground that allowed Cherney to form the idea for GoGogh, cull it, and do market research and Beta testing before launching her idea. Her corporate clients provided valuable feedback. Her first business also allowed her to find resources to form a vetted instructor pool

raving fans Members rave about the selection, the quality of the presentations and the price. “GoGogh courses cater seamlessly with the critical demands of career,” says

Q&a with

marianne Cherney WHAT ADVICE WOULD YOU GIVE SOMEONE WEIGHING THE RISK OF BEING ENTREPRENEUR? Understand business ventures take much longer to implement than you think, so budget accordingly. Ask, “What’s it going to take to really put this into action?” DOES THE CURRENT STATE OF THE ECONOMY MAKE IT EASIER OR HARDER TO BE AN ENTREPRENEUR? If you are a positive creative force, it makes it a lot easier because people get their creative juices ﬂowing. When things aren’t difﬁcult, there aren’t any problems to solve. DOES HAVING LITTLE TO NO FUNDS REALLY STAND IN THE WAY OF ANY LAUNCH? Yes. If you have no money to feed yourself, how are you going to launch a business?

BIO | GOGOGH.COM The GoGogh.com name came when Cherney picked up a dictionary and randomly found Vincent van Gogh’s name. She wanted to devise a company around the philosophy that if you have a product, you have competitors, but if you create an environment, your competitor can be your customers. This practice was based on the book “How to Sell a Lobster” by Bill Bishop. + GET CONNECTED www.GoGogh.com

THE ENTrEprENEur issuE

and receive content to build the site. Since the tradition of raving customer service was already established with Dash Courses, she had a loyal following to launch GoGogh. com. From there, a community was created, she says. “The world we live in has changed tremendously and technology moves like never before,” Cherney says. “In one way that’s good, in another way that means there is more responsibility. There is more need to know. Now things come out so quickly, revisions of technology affect you. People have to know more in a way that isn’t just a cursory.” Cherney’s enthusiasm is palpable. And 21,195 members agree. GoGogh is used by some of he Fortune 500’s top companies. While she believes her business concept is “the no-brainer of the century,” she says some people are hesitant to sign up because they think it’s literally too good to be true. The child of two college professors thinks learning is so easy, interesting and cost effective, that in her mind, everyone should have a membership to supplement everything else they are doing.

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he former sales guru who specialized in technology for 28 years launched GoGogh.com last June after successfully introducing Dash Courses, “an online training brokerage on steroids,” in 2000, which made a big splash in corporate America. GoGogh is a community platform for online training with instructors allowing members the ability to access more than 70 classes in a variety of offerings such as IO, Cisco, Oracle, Six Sigma, networking, project management training and certification. Training used by corporations often costs $1,000 to $1,600 per employee, per session, excluding travel costs. GoGogh’s cost is $395 per annual membership for unlimited online training, allowing students to take classes whenever they want, however they want using the convenience of their laptop or home computer, Cherney says.

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Next-generation sequencing transforms today’s biomedical research

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or more than three decades, the “Sanger” method dominated genetic sequencing – the spelling out of the A’s, G’s, C’s and T’s in a molecule of DNA in search of the variations that cause human disease. Named for Dr. Frederick Sanger, an English biochemist and two-time Nobel laureate in chemistry, the Sanger method provided science in the late 1970s an advanced tool for automating DNA sequencing, eventually leading to the deciphering of whole genes, and in 2003, an entire human genome. While significantly faster and with reduced handling of toxic chemicals and radioisotopes than previous laboratory experiments, Sanger’s method still required hundreds of DNA capillary sequencers and dozens of employees in huge factory-like sequencing centers. In recent years, a new technology has eclipsed the Sanger system: next-generation or “next-gen” sequencing, systems housed in freezer-sized devices run by a single operator. “Next–gen sequencing allows us to dig deeper into the genome than ever before by providing more information and increasing our probability of identifying something significant,” says Dr. John Carpten, director of the Integrated Cancer Genomics Division at the Translational Genomics Research

Institute (TGen) in Phoenix. “The longterm hope is that doctors will leverage this information to inform decisions about patient care.’’ The holy grail of sequencing is the ability to spell out the entire 3 billion bases of an individual human genome for $1,000 or less, allowing more people to be tested for disease causing genetic lesions and matched to better treatments. But it may be a while before people walk around with their own genome on a memory stick. lower costs Still, next generation sequencing is quicker, costs less, produces more data and holds the promise of advancing biomedical science at a faster rate than ever before. The prospect of a $1,000 genome would allow researchers to scale up their investigations, providing more data at less cost. “I think we have a long way to go before realizing the power of these technologies from a consumer-genetics standpoint,’’ says Carpten, who has worked at the cutting edge of genomic science for more than 20 years. “I believe that one of the most immediate uses of these technologies for clinical practice, from my point of view, lies in the area of genomics-guided therapeutics for cancer.” Sequencing can help researchers find the answers to many pressing questions:

Are there mutations associated with the initiation of cancer? Are there mutations associated with drug-resistance in cancer? Are there mutations associated with progression of cancer? So, can we sequence the full genome of a tumor and identify targets for treatments? “We are there,” says Carpten. “We’re hoping to perform a demonstration study to fully sequence the genome (DNA) and transcriptomes (messenger RNA) for a series of patients with late-stage cancer in hopes of informing the best and most appropriate target for treatment for each patient’s specific tumor. To perform and complete a study of that type to me would be fulfi lling my purpose in life. It would be a dream come true. To be honest, this is the reason I came to TGen.’’ Carpten says he hopes that the study will start sometime this year. “I just don’t know if the general public realizes how incredible this place really is,” he says. “We’re playing in Yankee Stadium. This is Major League. Now its time to step up to the plate and try to knock a few of these diseases out of the park!’’ Steve Yozwiak is the Senior Science Writer for TGen. + GET CONNECTED www.tgen.org

Joan Koerber-Walker (http://www.google.com/proﬁles/ jkoerberwalker) is chairman/founder of CorePurpose Inc., chairman of the Opportunity Through Entrepreneurship Foundation, and treasurer and board member at RiboMed Biotechnologies. She has served as CEO of the Arizona Small Business Association, trustee at the National Small Business Association and board member of the Arizona Technology Council.

THE ENTrEprENEur issuE

ready for Rebound

Technology Council, Service Corps of Retired Executives, the Greater Phoenix Economic Council, Tucson Regional Economic Opportunities, the Arizona Department of Commerce and economic developers in cities and towns statewide, are being developed and launched in support of new companies, new programs – and best of all – in creating new jobs and opportunities for economic growth. Turning ideas and innovations into jobs and real growth takes more than just team spirit and a cheerleader. It takes creativity, collaboration, coordination, commerce and a community. These are Arizona’s NEW Five C’s, and our tech entrepreneurs have it all together. So get ready for the rebound, it’s coming your way. I can’t wait to hear this year’s stories on November 17th at AZEC10. Remember, you heard it here: “2010 will be OUR year!”

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These vibes started last November when close to 300 local entrepreneurs gathered to connect, share ideas and be inspired by leaders from our own backyard and across North America at AZEC09 ( the 4th Annual Arizona Entrepreneurship Conference that was hosted by the Opportunity Through Entrepreneurship Foundation.) Our friends from the Arizona Technology Council were there – and they felt the positive sentiments, too. The Change was in the air – not just the kind folks talk about, but the kind that happens. Normally things get quiet over the holiday season. The transition to 2010 Arizona’s entrepreneurs are was different. The phones kept ringing, emails were bouncing back and forth, taking the lead in spurring Twitter was hopping, and my LinkedIn economic growth mailbox kept fi lling up. And it was not just WRITING BY :: JOAN KOERBER-WALKER me. It was happening all over. Arizona’s entrepreneurial community had used the lull of 2009 to regroup, reconnect, reFew will argue that 2009 engage and reposition their ventures for was a challenging year. growth in 2010. But there is a growing Arizona entrepreneurs are ready for the feeling across Arizona’s entrepreneurial community rebound and they are not alone in their efforts. Economic development agencies and that things are changing. Word on the qbi + E ^ i c % E & + F p p r b 0 � _ + m a c � � � 6 , 6 , - 1 � ��07.670.�MJ organizations across the state are joining street keeps coming back with “2010 will in. New programs from the Arizona be our year!”

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Global firm finds Arizona well-suited to help achieve its goals in the energy-efficiency market

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ide Solar’s 230-watt, polycrystalline black-frame solar panels debuted last month as an energy-efficient feature on the NextGen “Home for the Generations” at the International Builders Show in Las Vegas, a highlight of an 1,800-square-foot home that showcased energy efficiency as part of the U.S. Department of Energy’s “Builder’s Challenge.” The energy department awarded Champion Homes in Chandler, builders of the NextGen home, with a certificate scoring the dwelling not only at 100 percent to code, but 70 percent more efficient than a home built to code, says Raymond C. Wiley, director, North America sales, Aide Solar, U.S.A. The honor is just one cause for Aide Solar to celebrate. Other reasons are a 6,300-square-foot North American headquarters and plans to announce a new manufacturing facility in Arizona by the end of the third quarter, Wiley says. The opening of Aide Solar’s headquarters in Tempe last June, combined with its access to other technologies within its parent organization, The Panjit Group, a broad-based manufacturer of leading-edge technologies headquartered in Taiwan, has positioned Aide Solar to broaden its product portfolio and offer “green” solutions to system integrators and installers serving the energy-efficiency market. Aide Solar recognizes the Valley as an excellent place to grow additional business

roots; The Panjit Group already has semiconductor, touch screen and now solar capabilities in Arizona. “It has been a very good city and state government to work within,” Wiley says. “It’s been a natural fit. And with our existing companies here, we have been able to leverage our infrastructure, and share resources without any major investment.” Wiley oversees sales, marketing and operations for the Tempe facility with inventory to stock and ship all over North

aide Solar is poised to broaden its product portfolio and offer “green” solutions for the energyefﬁciency market. America. He says that while his company creates the polycrystalline panel for residential and commercial use, affordability for residential use or getting companies to understand the upfront investment to reach their renewable energy goals are sometimes tricky issues. “Until it gets to the point where it’s painful, people won’t pay attention,” he says. “It’s a little like the gas situation. Nobody cared about gas until $4 a gallon and it wasn’t until then people started to consider investing in the more gas-efficient cars.”

Q&a WHY IS ARIZONA SO POPULAR WHEN IT COMES TO SOLAR ENERGY? Navigant Consulting says the popularity is based on the state’s infinite supply of solar energy, the growing population, the university solar R&D programs, the propensity for residents to install solar power and thermal heating systems, the numerous utility grade solar plants being built and the fact that Arizona has dedicated $1.2 billion through 2025 to stimulate energy programs. WHAT IS THE RENEWABLE PORTFOLIO STANDARDS (RPS) TARGET? The Environmental Protection Agency provides states with a mechanism to increase renewable energy generation using a cost-effective, market-based approach that is administratively efficient. An RPS requires electric utilities and other retail electric providers to supply a specified minimum amount of customer load with electricity from eligible renewable energy sources. The target in Arizona is 15 percent by 2025, and includes biofuel, biomass, CHP/waste heat, geothermal, hydro, landfill gas, photovoltaic, solar thermal electric and wind. WHERE DO YOU FIND RESIDENTIAL OR COMMERCIAL REBATES, INSTALLERS AND QUOTES? www.usaenergyguide.com

WRITING BY :: ROBERT BORTNICK

Tips to make Arizona sales tax exemptions, incentives, work for your business n today’s business environment, companies are constantly exploring ways to increase revenue and control expenses. One approach that often is ignored is to take advantage of the sales- and use-tax exemptions and incentives available on qualifying purchases. Here are some of the exemptions businesses may use: manufacturing, processing, fabricating and reﬁning: Exemptions are available on the purchases, leases and rentals of machinery and equipment used by businesses for the production of tangible personal property for sale. These exemptions are limited to all equipment used during the manufacturing process from the point where raw materials are introduced to the process until the finished product has been packaged for sale. Such exemptions include material-handling equipment used for transferring work in process between production stages. In addition, the exemptions are extended to replacement parts and components installed on production machinery. chemicals: Purchases of chemicals used in manufacturing, processing, fabricating and research and development are exempt from the tax. As per Arizona regulation, “the chemicals must be used or consumed alone or as part of an integrated system of chemicals that involves direct contact with the materials from which the product is produced. Furthermore, the chemicals must be used to cause or produce a chemical or physical change in the materials as part of the production process.”

packaging and Shipping materials: All the materials necessary for the packaging of the tangible personal property produced for sale, as well as the materials necessary for shipping, such property to purchasers, are exempt. This exemption includes, but is not limited to, non-returnable pallets and containers, stretch film, cartons and similar materials. research and development: Purchases of machinery and equipment used exclusively in research and development activities are exempt. Arizona defines research and development as “basic and applied research in the sciences and engineering, as well as the design, development and testing of prototypes, processes or new products, including research and development of computer software that is embedded in or an integral part of the prototype or new product.” clean rooms: Firms engaged in the business of the manufacture or research of semiconductor products that construct environmentally controlled clean rooms are exempt from the tax. The regulation defi nes a clean room as consisting of “the integrated systems, fi xtures, piping, nontaxable partitions, lighting and other property needed to reduce contamination or to control airﬂow, temperature, humidity, chemical purity or other environmental conditions.” pollution control equipment: Equipment, including related structural components purchased by qualifying industries, used to prevent land, water or air pollution, is exempt from the tax. Such exemption applies provided the business-use pollutioncontrol machinery and equipment meet environmental standards set by the

Robert M. Bortnick, CPA, CMI, is director of the Sales and Use Tax Division of Walton Management Services Inc. The Ocean, N.J., company specializes in obtained tax credits and incentives for corporations nationwide.

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Advantage of Exemptions

Federal Regulatory Commission, the U.S. Environmental Protection Agency, the U.S. Nuclear Regulatory Commission and the Arizona Department of Environmental Quality or other state agency. environmental Technology facilities Tax incentive exemption: Manufacturers that purchase machinery and other personal property incorporated into the construction or improvement of a production facility are entitled to exemptions from the tax, provided certain criteria are met. The equipment and personal property must be installed at a site where recycled products or products using solar power or other forms of energy are made. The tax is not imposed on sales of coal, petroleum coke, natural gas, electricity or water to these manufacturers over a 15-year period. Further, the manufacturer must be certified by the Arizona Department of Commerce, make a minimum investment of $20 million, be owned or leased for a minimum term of five years and meet specified employment goals. Finally, the tax deductions and exemptions are available provided the goods produced for sale consist of any of the following: Recycled finished products, if 90 percent of the materials used to make them are recycled materials. However, only 80 percent of the materials used to manufacture recycled paper products, such as newsprint, paper napkins, paper towels and corrugated paper, must be made out of recycled materials. Finished products powered exclusively by solar energy or some other renewable energy, or a raw material or intermediate product that is produced using a hydrometallurgical process in which at least 85 percent of the process solution is recycled on site for additional production. Hydrometallurgical processing includes facilities used exclusively for solvent-extraction electrowinning, hydrometallurgical recovery and precipitation and refining, but it does not include smelters, open-pit and underground mines, or concentrator processes. All these exemptions and incentives can add considerable value to a firm, especially those that have begun operations recently. In today’s challenging economic environment, businesses are seeking any savings they can realize, and that includes taking the potential sales- and use-tax savings into consideration when contemplating transactions involving major expenditures.

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Is there enough to go Around?

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Entrepreneurs know a tight economy makes it tough to ďŹ nd investment capital. But these words of wisdom offer some hope. ngels are considered to be spiritual guardians. Angel investors in the technology community can seem heaven-sent to entrepreneurs. These investors usually are seasoned executives with deep strategic and operational experience in running successful startups as well as extensive corporate experience. Representatives from three Arizona angel investment groups share their experiences and outlooks with TechConnect readers.

THE PANEL: Warren Carsey Board member, Northern Arizona Angels Dee Harris President, Arizona Angels Venture Group Paul Winandy Director, Arizona Technology Investor Forum

the start of the Great Recession.

why do you think there are relatively few angel investors in Arizona?

is that starting to change? why?

winandy: The economic slowdown hasn’t had a material impact on the investing activity at Arizona Technology Investor Forum (ATIF). In 2008 we invested about $1 million in five deals. In 2009 we invested about $1 million in seven deals. The quality of the deals coming through ATIF has improved significantly. That is a function of two factors: Venture capitalists are making fewer new investments as the venture capital industry has been severely impacted by the economic slowdown, and ATIF has established its reputation in the entrepreneurial community as one of the few angel groups in the region to actually invest. carsey: Investors seem to be making fewer and smaller investments and some are clearly sitting out. Most angel investors are probably wise enough to value risk reduction over opportunity cost of missing a winning deal. harris: The Arizona Angels grew more cautious after the “dot-com bust” and again at

is this the right time to invest? why? winandy: Yes, the best time to invest in early-stage tech ventures is in an economic slowdown. There are several reasons. First, valuations are lowered due to the lack of available capital and the recessionary conditions (Result: you get more for your money). Second, access to talent is improved since unemployment/underemployment is high. Third, the costs of launching a tech startup have gone down dramatically in the past five years due to cloud computing, opensource development tools and lower hardware costs. Finally, early-stage tech ventures take several years to mature and grow, meaning you will exit the investment in an economy that is recovering and growing. All-in-all, recessionary times are the best time to make

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how has the state of the economy over the past few years affected the investment activities of your members?

Harris: I have seen a definite increase in investor interest and in high-quality deal ﬂow recently. winandy: Yes, we are actually seeing a rise in membership interest. This is consistent with trends in other areas of the country. Investors are seeing significant benefits from being part of a group of like-minded investors. Group membership allows for deeper due diligence and access to higher-quality deal ﬂow, plus it helps open up avenues and expand contacts for other business interests. carsey: I have seen the opposite — more risk aversion in recent months.

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winandy: Angel investors typically invest in industries and technologies that they know well. In Arizona, most accredited investors generated their wealth from industries outside of high technology, such as real estate, consumer products, retail and financial services. So there aren’t a large number of wealthy angels who know the technology sectors and have past success investing in these types of businesses. harris: Arizona investors pay more attention to real estate-related investments because real estate is such a large part of our economy. In addition, there is probably less awareness that we have high-quality entrepreneurial companies in Arizona than in locations such as Northern California, Boston, Austin and San Diego. There are probably much fewer investors discussing with their friends and colleagues the high-potential investments that they have made in Arizona-based technology companies than there are in some other parts of the country, and there is probably less nonreal estate media coverage. carsey: The reason people migrate to Arizona is probably not business, thus investment practices and business practices are likely non-local. It is probably similar to professional sports — attend any Suns or Cardinals game and notice how many Arizona residents wear the colors of the other teams (often the teams from their true “home”). Perhaps this is also reﬂected in investment practices.

Feature new investments in high-growth industries like technology and biotechnology. Historical analysis of venture capital trends bear this out. Investments made and funds formed during the recessionary periods of 1992-1993 and 2000-2002 have some of the highest returns for the industry. harris: Valuations are down sharply and most entrepreneurs are more realistic about price and terms, so this is probably a rare opportunity. carsey: Probably not any more “right” than any other time. The types of deals to invest in should adjust, but at the early-stage technology level, the time to invest is when the deal is right, not when the market seems right. It is a better time for good prices, but even valuation discounts are not as pronounced as we might expect.

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what motivates your group to continue operating?

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carsey: Long-term desire to be active in this capital market. harris: High-quality deal ﬂow and loyal members. Strong interest in entrepreneurship on the part of Arizona educational institutions, including ASU Technopolis and the Walker Center for Global Entrepreneurship at Thunderbird School of Global Management. Many recent graduates and soon-to-graduate students with good ideas for startups and well-thought-out business plans. winandy: Our membership is growing, deal quality is strong, our members are energized and active, and we see a lot of potential growth in the entrepreneurial ecosystem in Arizona. The future is very bright for us.

Are the conditions right for more Arizona-based angel investors? why? carsey: Maybe. Angel investors’ bases tend to be their home geography. If a reliable source of good investments is available in their home geography, such as Arizona, they will gradually get more involved. There is no reason that wealthy individuals living in Arizona or migrating here should not get more active so long as there are quality deals available. harris: Yes. Good investment opportunities at moderate prices. Also, outlook for real estate investment in the near term remains cloudy. winandy: Yes (see comments above). This is the best time for angel investments and we are seeing membership interest like never before.

how can an entrepreneur stand out to you? winandy: In an initial impression situation,

an entrepreneur will stand out by concisely describing their company and technology in a short pitch. It’s surprising how many first-time entrepreneurs trip on the standard elevator pitch. If you can’t describe your technology and business in a simple and clear manner, it will be very challenging to get any investors to take interest. On a longer-term basis, entrepreneurs will differentiate themselves by being good listeners and absorbing the advice of more experienced advisors/mentors. You don’t have to implement everything an advisor says, but you have to listen, analyze the input and decide for yourself if it applies to your situation. Don’t just dismiss the advice of investors/mentors out of hand. Also, entrepreneurs need to know their numbers — know the size of the market, know the costs of your production, know your burn rate, know

your break-even revenue projection, know your exit multiple, know your cost of customer acquisition. carsey: Experience, proven historical success, obvious integrity and clarity of communication. harris: A strong management team of at least two or three senior executives. A well-written, carefully researched business plan. Capital contribution by the founders. Sustainable competitive advantage to ward off copy cats. Potential for very fast growth followed by sale of the company or IPO within a few years. Coachable founders who are willing to receive advice. Advisory board with well-qualified members and/or a governing board with more than one wellqualified outside member. A well-presented, relatively brief oral pitch.

On the Lookout for Good Investments DESPITE THE ECONOMY, INVEST SOUTHWEST CONFERENCE IS FORGING AHEAD FOR THE ENTREPRENEURIAL COMMUNITY INVEST SOUTHWEST In the tech entrepreneur community, Invest Southwest offers that rare opportunity to get in front of people with capital who can help a good idea take off. For organizers of the annual event, the success of others is their reward. Invest Southwest focuses on earlystage investing requiring up to $5 million in capital to get started, which means deals suitable for early-stage venture capital firms, as well as angel groups. Stephanie Spong, chairwoman of this year’s event, says a bad economy is no reason to stop the effort of helping others. She offers insight and a look behind the scenes of Invest Southwest. HOW HAS THE STATE OF THE ECONOMY OVER THE PAST FEW YEARS AFFECTED THE ACTIVITIES OF INVESTORS INVOLVED WITH INVEST SOUTHWEST? Both angel and venture investors have definitely been on the cautious side for the past 18 months. Deals that did get done last year tended to be later stage and more mature, but at early- stage valuations, reflecting a much more conservative risk profile for investors. Basically, if they had money to invest, it tended to flow to deals with lower technology and market risk, and at lower valuations. WHAT MOTIVATED YOUR GROUP TO HOLD THIS YEAR’S CONFERENCE IN LIGHT OF THE ECONOMY? The Invest Southwest conference is a very special local entrepreneurial community effort, a community “barn-raising” to use an old-fashioned metaphor. The committee that runs the conference faced a tough economic situation and decided to press forward with the December 2009 conference, believing that in this difficult time the conference was more needed than ever to help get worthy companies financed and strengthen the

weakened economy with innovative growth companies. The decision of the Invest Southwest committee, which is mostly made up of local sponsors and investors, proved correct as over 120 investors attended the conference. While that number was down about 5 percent from last year, it was a very strong showing given the economy. Of those investors, 44 percent were from out of state, which is an increase over last year and a sign of broad interest in Arizona investment opportunities. HAVE WE TURNED THE CORNER WITH INVESTORS COMING BACK TO THE TABLE? WHAT TELLS YOU THAT? The mood is very different this year — still careful but more upbeat. Banks and venture debt providers began to loosen their covenants and terms in the latter part of last year after the extreme clamp down of early last year, a good sign that their confidence is returning. We are seeing seed and early-stage deals starting to get serious attention and term sheets again as equity investors return to early-stage investing. While investors are still cautious and prudent, and careful on valuations, they are back looking for good investments. ANY CHANGES FOR THE NEXT CONFERENCE THAT REFLECT HOW INVESTORS NOW APPROACH ENTREPRENEURS? One priority for this year’s conference is to continue to deepen our ties to angel groups throughout the region and to attract even more out-of-state and out-of-region venture capitalists so we can fulfill our mission of bringing our Arizona and regional companies together with qualified investors. As for the entrepreneurs, submissions last year were as high in quantity and higher in quality than ever, so we expect this year to continue to build on the conference’s history of attracting great entrepreneurs to apply.

Fund of Funds

TECH STARTUPS TO BENEFIT FROM INITIATIVE TO RAISE $200 MILLION

HOW LARGE A ROLE HAS THE STATE OF THE ECONOMY OVER THE PAST FEW YEARS PLAYED IN ITS COMING ABOUT? The current condition of the Arizona economy has helped focus attention on the need to create a funding vehicle to support the venture industry itself. IS THIS THE RIGHT TIME TO INVEST? WHY? After the meltdown there is a likelihood entrepreneurs will have more realistic ambitions regarding the initial valuation of their companies and, therefore, for the next three or four years returns to early-stage venture funds might be more attractive. WHAT WILL MAKE A GIVEN VENTURE FUND ATTRACTIVE TO THE FUND OF

HOW LONG DID YOU CAMPAIGN TO GET A FUND OF FUNDS LAUNCHED? A number of people in Phoenix and Tucson have been working to establish something like this for about 15 years. In the past these initiatives involved an idea of the state of Arizona participating in some way. This time around the notion was to have this be a privately funded effort. I wrote a white paper on this about a year ago and the concept has been endorsed by the Southern Arizona Leadership Council, Greater Phoenix Leadership, AERO and the Arizona Technology Council, which was considering its own approach to capital formation but embraced this concept. ARE THERE FUND OF FUNDS IN OTHER PLACES? IF SO, DO YOU HAVE AN EXAMPLE OF HOW IT MADE A DIFFERENCE? I think there are about 40 states that have Fund of Funds programs (some states have more than one). Some have had state-level involvement and some have been privately funded. Most of the states that we like to compare ourselves to have such programs. This is not a wild hare idea, but rather has become best practices. In New Mexico there was venture capital firm in the state and the program helped 10 other firms to become active or locate at least one investment professional in that state. To date I think 41 companies have been funded that might not have received funding without the New Mexico program. Even in Massachusetts where there are a lot of VC firms, the state has two programs to encourage early-stage venture since many of the larger firms have moved toward later-stage funding.

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WHY IS THIS THE RIGHT TIME FOR A FUND OF FUNDS? Right now in Arizona there is one early-stage traditional venture fund that will look at early-stage information technology deals and I think none are looking at early stage biotech funds. The Fund of Funds can encourage the formation of venture funds in Arizona and can encourage out-of-state funds to be more active here.

FUNDS MANAGER? A ﬁrm’s prior track record would be the single-most compelling factor plus the ﬁrm’s industry focus on the sorts of high-tech business that needs to be encouraged in Arizona, including information technology, biotech, life sciences, and clean-tech such as solar.

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A coalition of private-sector groups and venture capitalists has joined with the Arizona Economic Resource Organization (AERO) in an initiative to raise $200 million to ultimately invest in Arizona high-technology startup companies. Sun Mountain Capital, an investment ﬁrm based in Santa Fe, N.M., has been retained to establish and manage the Fund of Funds, which is a fund that invests in successful venture funds. One of the biggest champions of the Fund has been Harry George, managing general partner of Solstice Capital. He explained to TechConnect the story behind the effort.

management, coaching and teaching locally and around the world. ASU Technopolis, which is based at SkySong in Scottsdale, also has an entrepreneurial coach who provides one-on-one coaching and classroom-style instruction for our programs.

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Arizona center for innovation

ASU Technopolis was created by Arizona State University’s Office of the Vice President for Research and Economic Affairs to help transform the Phoenix area’s knowledge economy. It leverages the area’s strengths as one of the best places to start a business and its abundance of tech clusters as well as the expertise and resources at ASU to spur innovation. This is done by development of programs that educate, coach and connect entrepreneurs and innovators. The programs include: + Launch Pad, a rigorous one-on-one coaching program leading to a refined articulation of the entrepreneur’s business concept and strategy. + Launch Prep Entrepreneurship Course, a structured study of the major concepts of innovators and entrepreneurs. + In-depth workshops to help local entrepreneurs access federal funding programs that finance early stages of technology and life science product development. + The Mentoring Program, which is designed to provide companies with the counsel they need to build their ventures into successful enterprises. ASU Technopolis’ key partner is Enable Ventures, which provides the educational content and offers broad experience in business

The Arizona Center for Innovation (AzCI) is a specialized business incubator designed to meet the needs of developing technology companies, particularly in the areas of: aerospace, advanced composites and materials, information technology, environmental technology, life sciences and optics/photonics. Its clients include community inventors, student teams and university researchers who are seeking to commercialize locally developed technologies or to work in partnership with The University of Arizona to bring their developments to market. AzCI’s incubation model ensures that companies receive practical, hands-on assistance early in the innovation process, beginning in the research phase, and continuing through product development to commercialization. This approach helps companies bridge the many gaps between discovery and commercialization, and to meet the primary goal of AzCI: to increase the likelihood of success for a start-up company and achieve it in a shorter amount of time. The Arizona Center for Innovation is located at the University of Arizona Science and Technology Park, which is home to 40 technology companies and business organizations and more than 7,000 employees.

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There are places in Arizona dedicated to helping entrepreneurs make their ideas viable realities. Here are some of those already earning their share of buzz in the community.

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northern Arizona center for emerging Technologies Northern Arizona Center for Emerging Technologies (NACET) is a small-business assistance program founded to help entrepreneurs and startups succeed in northern Arizona. It offers hands-on consulting to high-tech, science and renewable energy firms. It links client companies to specialty labs and equipment, intellectual property, and capital resources and creates synergies through an extensive network of faculty, staff, interns, and alumni from local academic institutions. The ultimate goal is to create much-needed, high-quality job opportunities. Its state-of-the-art facility on McMillan Mesa provides clients with services and affordable office and lab space. The facility also provides a place to host “real world” trainings for entrepreneurs and quality networking opportunities. NACET also works with the Northern Arizona Angels, which evaluates early-stage companies looking for seed capital for their businesses. Its latest launch is a mentoring program.

gangplank After years of seeing smart people with great ideas in the Valley move to Silicon Valley, New York and Chicago to see their startup dreams fulfilled, the creators of Gangplank decided it was time to do something to help the innovators keep their dreams here. This Chandler incubator was created to fill voids that have may have kept some of those innovators in Arizona. It exists to connect entrepreneurs with

Hatching a plan Arizona incubators and other programs help entrepreneurs give birth to viable products and ideas

There are different facets to Club E where a learning, sharing, and growth environment is created and maintained by new companies mingling with established, successful entrepreneurial executives. The most visible is Club E Office, which offers a co-working office environment in Tempe where entrepreneurs are encouraged to collaborate, share and grow. They are provided access to educational opportunities and resources through professional consultations, workshops, seminars and other events. It also provides a physical location for newly formed companies to live, launch and grow as they are surrounded with the resources, support and assistance that are needed. With options ranging from drop-in table space to permanent professional offices, Club E Office offers brainstorming

Az Techcelerator AZ TechCelerator offers a four-building campus in Surprise designed to provide affordable space, tools and resources to grow a business. Entrepreneurs, small business start-ups and late-stage innovation companies can operate in a collaborative environment with fellow innovators. Managed by the city of Surprise Economic Development Department, the AZ TechCelerator is aimed at new product commercialization, job creation, and improvement of the economy and quality of life in the community AZ TechCelerator’s value proposition begins with a commitment to see its client’s commercial goals come to fruition. One method is its strategic partnership with Catapult Bio, Inc. to better align clients with one or more potential funding sources. There is access to discounted assistance with intellectual property, accounting, and other professional advice. In addition to the on-site administrative staff, experienced mentors and partnerships with industry experts are available.

innovATionS Opening in May in a former Intel building will be the city of Chandler’s INNOVATIONS incubator. The idea behind it is to create a supportive community of entrepreneurs who will help businesses grow during the startup phase while offering services that help business owners commercialize start-ups. There also will be speakers on such topics as intellectual property protection, venture capital, angel and federal funds, and business plan creation. The facility will be integrated with industry, partners, cost-saving programs and access to academic institutions and workforce. The 129,000-square-foot facility will offer wet and dry laboratories and equipment to help meet the needs of emerging biotechnology, bioinformatics, medical device, nanotechnology, sustainable technology, software design and other startup companies. + GET CONNECTED ASU Technopolis: www.asutechnopolis.org Arizona Center for Innovation: www.azinnovation.com Northern Arizona Center for Emerging Technologies: www.nacet.org Gangplank: www.gangplankhq.com Club E: www.clubeofﬁce.com AZ TechCelerator: ww.surpriseaz.com/ﬁles/ED/AZTechcelerator INNOVATIONS: www.chandleraz.gov/default.aspx?pageid=317

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and conference rooms, comfortable open space, collaboration, insight and advice for all entrepreneurs. Club E Network is an association of entrepreneurs that has grown to more 7,000 members nationwide—3.500 in Arizona alone. Club E Exchange is a barter network that enables business owners to better manage their inventory and capacity while developing new business through a non-cash revenue exchange of products or services. Taking it farther, Club E Office also allows offices and workstations to be paid on barter.

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quality, focused teams who have track records of executing project to completion. Co-working space is provided at no charge to encourage people to value working collaboratively with others of various disciplines. One of the goals of the collaborative is help people increase their circle of inﬂuence and knowledge. Gangplank provides mentorship to new entrepreneurs by surrounding them with recently successful ventures as well as direct access to long-time entrepreneurs who are well-respected in the community. It also offers assistance in getting early-seed funding to encourage people to chase their dreams and bring them to reality. There is even help in finding later-stage funding as growth continues.

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Next phase of Tucson blueprint targets creation of new businesses

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W riting by :: K Ate nOL A n

An employee AT pArAgon SpAce developmenT corp.

he nonprofit firm that masterminded a regional Economic Blueprint for Tucson in 2007 is expanding its vision. Tucson Regional Economic Opportunities, or TREO, expects to hear in March from the blue-ribbon task force it assigned in November to develop an Entrepreneurial Economy Blueprint. TREO President and CEO Joe Snell launched the initial blueprint to defi ne a long-range focus for the group formed in 2005 as the lead economic development agency for the greater Tucson area. The plan proposed securing economic prosperity via high-skill, high-wage jobs; educational excellence; urban renaissance; livable communities and public-private collaboration. The new blueprint centers on business start-ups. “We’ve taken one step at a time. Earlier we identified four target industries: aerospace and defense, transportation and

logistics, solar energy and biosciences, and we’ve been successful in those industries. But we had not focused heavily on business creation,” says Laura Shaw, TREO’s senior vice president, corporate & community affairs.

rare Opportunity The national economic slowdown offered an opportunity to examine regional barriers to investment and study ways to get more out of existing resources. “People are now setting the foundation for when they are ready to make a move. They are looking at regions and doing the work necessary so they can move quickly when it rebounds,” says Harry George, managing partner of Solstice Capital who chairs TREO’s Entrepreneurial Economy Task Force. Arizona’s most prominent venture capitalist, George has launched myriad successful technology start-ups, including Interleaf, Inc. and Kurzweil Computer Products, collectively valued in the billions of dollars.

To acquire data, the task force rounded up about 20 Tucson area entrepreneurs and proceeded to pick their brains and probe their bottom lines. George predicts the task force findings are unlikely to shock the business community. A fair amount of discussion was directed at municipal bureaucracy. On the up side, entrepreneurs cited resources such as the McGuire Center for Entrepreneurship at The University of Arizona and funding resources such as Desert Angels and Idea Exchange.

spread The Word

The SKyline of downTown TucSon

The deSign And fABricATion lAB AT pArAgon SpAce developmenT corp.

Q&a with

But a substantial number were uninformed of early funding resources available in the community. “We already have an effective mechanism to spread news, but that doesn’t mean more can’t be done,” George says. More outreach to local media is also on deck. Another likely activity is implementing a monthly entrepreneurs group keyed to issues surrounding start-ups. The fi nancier is impressed with what he’s seen. “In spite of the macroeconomic environment, there are more high-quality, knowledge-based start-ups in Tucson than at any time I’ve been working here,” he says. Having a Top 20 public research university and a growing list of worldclass players in the marketplace “provides more opportunity for businesses to spring up.” For example, Swiss pharmaceutical giant Roche in 2008 merged with Ventana Medical Systems of Tucson. With the new report almost on the table, what comes next? “There will be a handful of specific tasks, and someone will own those tasks. That’s how you make something happen,” George says. roBoTic ArmS uSed in SolAr pAnel ASSemBly AT Solon corp.

Harry george

DOES HAVING LITTLE TO NO FUNDS REALLY STAND IN THE WAY OF A LAUNCH? Of course. You shouldn’t let it hold you back from starting, but if you don’t get funds, you won’t get very far. It’s that attitude: If I have eggs, I could have ham and eggs — if I had ham. WHY HAVE YOU SELECTED TECHNOLOGY AS THE PLACE TO BE AN ENTREPRENEUR? Every time technology takes a signiﬁcant advance, it opens up new large markets. My second company was the ﬁrst to use lasers to produce graphics. It transformed the world. In the next 10 years, LEDs will be providing all our lighting. That’s why you start companies that can build very large businesses. If you have proprietary technology that will usurp old markets and create new markets, it’s the highest opportunity for return. GIVEN THE CHANCE, WHAT STEP ALONG THE WAY WOULD YOU LIKE TO TRY AGAIN? I could name a couple of companies I wish I hadn’t invested in. Mainly, that’s not a mistake about the technology, but about the people.

+ GET CONNECTED www. treoaz.org

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WHAT ADVICE WOULD YOU GIVE SOMEONE WEIGHING THE RISK OF BECOMING AN ENTREPRENEUR? The world does not welcome newcomers. You have to have an awfully good idea. Generally cheaper, faster, better and new. It’s an ice climb. It’s straight up, and it’s gonna be a lot harder than you ever thought. You absolutely have to have a great idea, and you have to build a moat of intellectual property protection around your idea.

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Through Arizona State University’s Entrepreneur Advantage Program, ASU students (from left to right) Max Altschuler, Bryan Kattenburg and Victor Torres won funding to pursue their innovative idea for a network of shared bicycle ridership called Rack N Ride.

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n innovative Arizona State University program is attracting a growing number of progressive ideas from teams of students hoping to achieve entrepreneurial success -- and 18 of these teams recently secured special funding to pursue their dreams. Started in 2007, the Entrepreneur Advantage Project (EAP) has helped students explore their entrepreneurial ideas with guidance and support from experienced entrepreneurs, as well as money to get their projects started. EAP attracted 108 applications this past fall, compared with 62 in 2008 and 30 in the fall of 2007. A panel of business experts met to decide who would receive funding, and 18 projects representing all areas of the university came away with financial awards averaging almost $2,000. “Entrepreneurship and innovation is thriving at ASU,” says Julia Rosen, the university’s vice president of innovation and entrepreneurship. “We were very pleased to see the number and quality of the ideas coming from ASU students from every corner of campus. The projects receiving funding represent a wide variety of interesting ideas.” The awardees included those with projects in the fine arts, education and non-profit

studies, according to Rosen, as well as several projects in engineering and business. “My team and I all plan to use this entrepreneurship venture to gain real-world knowledge of an engineering project,” says engineering student Jared Schoepf, leader of the Rio Salado Habitat project. His team is addressing environmental issues in the habitat by designing a special grate system for one of 11 storm pipes in the area. According to Schoepf, this grate will provide an inexpensive and accessible method to remove trash before it enters the habitat. “We hope to learn how to work as a team to research, design and build an actual product that could then be used to help protect the environment,” Schoepf says. “These skills will help us in the future when we work on other engineering projects.” Business management student Max Altschuler is leading the development of a concept called Rack N Ride, a shared bicycle service for ASU and the surrounding Tempe community. The idea of establishing a network of bicycles and racks available for use for a low annual fee could provide all of the benefits of bike ownership without the drawbacks of maintenance, storage or security, according to Altschuler. “We are working on a wireless system so

we can monitor the bikes from a central computer,” Altschuler says. “The funding really helps because we can get started on the design process of this system. It also helped us pay for our LLC so that we can apply for other grants and funding. All of this gets us one step closer to our main goal.” Applications for the program include a project concept, marketing strategy, budget and the project’s “economic/social/ cultural impact.” Grants for the projects can range from $500 up to $5,000, with the average around $2,000 per team selected. Funding is provided by the Ewing Marion Kauffman Foundation and can be used for building prototypes, market research studies, materials and supplies, but not for salaries, travel, meals or entertainment. Applications are accepted in the fall and spring semesters. “This program is consistent with the broad-based philosophy of growing entrepreneurship at ASU, encouraging ideas from all disciplines, from undergraduate students as well as graduate students,” Rosen says. “Even if they’ve never taken a business class or thought about being an entrepreneur, if a student has a good idea we can provide some funding and support to help them pursue it.” Also included among the projects funded are TumbleFringe, led by fine arts graduate student Sarah Sullivan, and bioengineering student Tim Darling’s BME Sundevil Dezign. TumbleFringe will stage an original theater production with the Tumbleweed Center for Youth Development, a program for at-risk youth ages 11 to 22. BME Sundevil Dezign is developing a micromagnetic contact lens to track the movement of the eye. Both projects will provide real-world experience for their teams, while TumbleFringe also will give valuable experience for the youths. “The participants from the Tumbleweed Center will have the opportunity to participate in every aspect of a theatrical production,” Sullivan says. “The show will provide an opportunity for these kids to take charge of their own work and develop both interpersonal and specific job training.” As for his project, Darling notes, “Designing products on paper can only take us so far. This program has allowed us to move from the drawing board into a prototype phase of design. A viable prototype is our first step in pursuing our dreams of starting a business.” For more information on this and other student entrepreneurship programs, visit entrepreneurship.asu.edu. Jim Brewer is senior director of marketing at Arizona Technology Enterprises and ASU Skysong.

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The univerSiTy of ArizonA’S ArizonA BioScience pArK

parks Not Just for play University research parks foster technology development and commercialization W riting by :: brUCe A. W rigHt

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ast December, the U.S. Senate heard testimony in favor of legislation to help universities plan and develop research parks. Speaking in support of the legislation were representatives of the U.S. Department of Commerce, National Academy of Sciences and the Association of University Research Parks. The hearing underscored the important role university research parks play in developing and commercializing new technology. The fi rst university research park in the United States was established in 1951 by Stanford University. It helped spark development of Silicon Valley, one of the largest and most successful high-tech regions in the world. Not long after, government and business leaders in North Carolina formed the Research Triangle Park (RTP), linking the research activities of three universities — Duke, North Carolina-Chapel Hill and North Carolina State — to high-tech economic development. RTP helped move North Carolina from a low-income, agricultural

state to a high-wage, high-performing technology center. The early university research parks were primarily real estate enterprises. They focused on developing facilities needed to support high-tech commercial enterprises, such as wet laboratories, clean rooms and sophisticated production facilities. As research parks evolved and matured, their focus turned to facilitating and accelerating the commercialization of university discoveries and inventions. Most parks either operate or host a business incubator. More recently, research parks also have become centers for workforce development and training. Today, there are almost 200 university research parks in North America, home to university and government research centers, industry laboratories, high-tech business incubators and thousands of technology companies. Park companies employ more than 750,000 high-wage workers. The first research park in Arizona was established by Arizona State University in 1987 on 320 acres in Tempe. Several years ago, ASU developed a second park, SkySong,

The goal of the Uofa Tech park is to put it at the leading edge of university research parks worldwide — to develop it as a ‘community of innovation.’ in partnership with the city of Scottsdale and The Plaza Cos. SkySong houses ASU’s innovative program of business development and assistance, Technopolis. In 1994, the University of Arizona bought 1,345 acres and 2 million square feet of office and laboratory space from IBM and established the University of

Arizona Science and Technology Park. Today, the UofA Tech Park is one of the largest and most successful research parks in the United States, hosting 38 companies and 7,000 employees. Annually it contributes nearly $3 billion to the state’s economy. It is home to three educational institutions — UofA South-Pima Campus, Pima Community College and the Vail Academy and High School. It also houses the Arizona Center for Innovation (AzCI), a high-tech business incubator assisting 16 high-tech startup companies. The UofA recently broke ground for a second park, the Arizona Bioscience Park. The Bio Park is located on 65 acres in central Tucson. When fully developed, the park will accommodate more than 2.4 million square feet of developed space, including offices, university and industry laboratories, a hotel and conference center and a technology high school. The park is being designed to address the most rigorous requirements of

commercial biotech companies. In September, the university received a $4.7 million federal stimulus grant from the U.S. Department of Commerce Economic Development Administration to fund installation of the physical infrastructure at the Bio Park. With these improvements the park will be “development ready” in December 2010. This year, the Uof A Tech Park is celebrating its 15th anniversary. In looking forward to the next 15 years, it has embraced an ambitious program of expansion and business development, entitled “The Next Big Ideas.” The goal is to put the Tech Park at the leading edge of university research parks worldwide — to develop it as a “community of innovation.”

Bruce A. Wright is associate vice president for University Research Parks at the University of Arizona.

Key development initiatives at the UofA Tech Park • Creating a live, learn, work and play environment, including residential and retail development, a hotel conference center and a regional linear park. • Developing a world-class center for solar research and development on 200 acres, known as the Solar Zone @the Tech Park. • Constructing the Vail Academy and High School, an innovative K-12 school that introduces students to the excitement and opportunities in science, engineering and technology. • Establishing the Border Security and Technology Commercialization Center, a business incubator designed to commercialize technology that can help in the operation and management of safer borders and international ports of entry.

Common Ground. Uncommon Vision.

For more information, please contact Jessica Franken, Phoenix Intellectual Property Group Chair, at 602-230-5520 or jfranken@quarles.com

To receive our legal updates and alerts via e-mail, please visit www.quarles.com/mailinglist

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For over two decades, Quarles & Brady has represented biotechnology companies, universities, educational institutions, medical device companies and others in the life science industry. We provide a full range of counseling to our clients in this industry—from the protection, commercialization and enforcement of intellectual property rights to public and private financings and providing support for mergers and acquisitions.

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{ UpDaTe::NAU}

NAU, UofA team up to ﬁnd solutions to cut cancer rates among Native Americans W riting by :: DiAne reCHeL

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Northern Arizona University and Arizona Cancer Center collaboration seeking solutions to cancer disparities among Native Americans is receiving a $15.7 million grant from the National Cancer Institute. The collaboration — the Partnership for Native American Cancer Prevention — is the only partnership being funded by NCI that takes aim at the burden cancer places on Native Americans. “This funding will support projects that all relate to cancer in some way and that are carried out by teams of researchers and students from both universities,” says Laura Huenneke, vice president for Research at Northern Arizona University and lead investigator for the NAU portion of the partnership. NAU will receive $8.9 million and the Arizona Cancer Center at the University of Arizona will receive the remaining funds. Projects through the institute build the skills and accomplishments of NAU researchers by providing them with collaborators and resources from the Cancer Center and contribute to scientific understanding of the causes and impacts of cancer in Arizona’s tribal communities. “Since 2002, when the first cycle of funding began, a strong community relationship was developed with the Hopi Tribe and the Navajo and Tohono O’odham

nations; these relationships now position us to develop sustainable community-based programs aimed at reducing the cancer burden,” says Louise Canfield, principal investigator, Native American Cancer Prevention Training Program. The partnership’s premise is that a sustainable solution to cancer disparities among Native Americans must be rooted in the communities, Canfield explains. Its efforts have resulted in 11 tribal-approved research projects on comprehensive breast and cervical cancer screening programs. The institute also helped initiate continuing education for community health-care professionals and graduate and undergraduate curricula at both universities. Huenneke says a portion of the funding goes toward working with tribal communities to understand their priorities with respect to cancer and to use that information to design research and translate the results into programs that have an impact in those communities. “These research opportunities also recruit and train talented students, especially Native American students, into careers related to cancer research, prevention and treatment,” she says. NAU offers year-round support for research experiences for undergraduates in the cancer research laboratories.

JANI INGRAM, an associate professor in NAU’s Department of Chemistry and Biochemistry Department, along with Margaret Briehl, a research associate in the UofA Cancer Center division, are continuing research on how the environmental exposure of uranium in Navajo communities affects drinking water and dust, and how the uranium may work as a carcinogen. “The long-term objective of the project is to explore the relationship between cancer disparities for the Navajo Nation and chronic exposure to environmental uranium,” says Ingram, who is Navajo. “The exposures of the Navajo people are unique because of mining activity and the lifestyle of the Navajo people. The work entails analyses of water and soil samples and investigations of cells and natural uranium interactions speciﬁc to the environment that exists in the southwestern region of the Navajo Nation.” ALISON ADAMS, an NAU associate professor in biological sciences, along with research partner Ted Weinert, a UofA associate professor of molecular and cellular biology, are leading a project targeted toward understanding why cells become cancerous. They are looking at mechanisms that ordinarily stabilize or protect chromosomes from breakage and rearrangement, which can lead to cancer. “In addition to increasing knowledge of mechanisms leading to cancer, this project provides an excellent educational and training vehicle for Native American and other students in cancer biology, and helps prepare them for careers in cancer research and related ﬁelds,” Adams says. MATT GAGE, an NAU assistant professor in chemistry and biochemistry, is working with William Montfort, a UofA professor of chemistry and biochemistry, to determine the potential connections of a common chemical signal in cells to cancer causation. They are leading a team investigating conformational changes in the receptor of nitric oxide, a signaling molecule clinked to cancer. “The collaboration with the University of Arizona provides me with access to equipment that is not available at NAU,” Gage says. “It also allows me interactions with my collaborator, Bill Montfort, an experienced biophysicist, who is an excellent mentor to me in this early stage of my career.”

Diane Rechel is a public affairs coordinator at Northern Arizona University.

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WRITING BY :: GOV. JAN BREWER

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here is no better time to help Arizona entrepreneurs focus on building, growing and sustaining their businesses than during periods of great economic stress. That certainly defines where we are at this moment. But, for those producing goods, engaging the global market offers invaluable prospects. For private businesses, globalization promises wealth by providing access to new business partnerships, markets, foreign capital resources, and more. The question that inevitably every small business owner asks as their business gets off the ground, is: “Should I expand my company through exporting?”

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Small business owners will tell you when they prepare a business plan for their domestic operations, a similar exercise must accompany any efforts to consider going global, whether you have a product or service to sell. Even before you begin to put together such a plan, an honest self assessment of your long range goals followed by a well researched analysis of the markets and how your product or service will see demand for them is crucial. You should first start with the product you intend to export and its potential. By looking at the reasons your company is successful domestically and whether this success can translate to international markets is a significant first step.

Business owners ready to begin researching what is involved in a foreign market, can turn to several sources for assistance. At the federal level, the U.S. Commerce Department and its extensive network of offices located in embassies and consulates around the globe is a first start. From “How do I get my product from point A to point B” to “What is the best insurance against non-payment for goods delivered,” the U.S. Commerce trade specialists can lend a helping hand answering them and can bring in other federal and private resources for credit, shipping, and legal matters. At the local and state level, firms can turn to the Arizona Department of Commerce, Small Business Development Centers, SCORE, and the local USEAC (United States Export Assistance Centers) to begin formulating a marketing plan, identify legal and financial resources and learn about trade shows and fairs where they can exhibit their products and meet potential buyers. Through my Arizona Department of Commerce, we encourage local companies to enter the global marketplace as it relates to exports, joint ventures and investments – and this requires a mix of business tools that can assist in identifying financing, logistics, and legal issues, not to mention cross cultural communications. We therefore have taken steps to partner with the U.S.Department of Commerce through their Phoenix Export Assistance Center. Such partnerships enable the Arizona Department of Commerce to leverage federal resources that combined with state services and programs can better position a small or medium sized company to compete globally. In today’s highly connected world via the web, social media and with all of the resources and avenues available for a small business owner to pursue global customers, the opportunities to reach out to that 90 percent of your potential customer base outside the United States has never been better. By reaching out to my experts at the Department of Commerce at 602-7711100 or view resources online at www. azcommerce.com, you can put these valuable resources to work for your business. + GET CONNECTED www.azgovernor.gov

Capitol Watch “I joined the service since I knew the military would give me the career training in the field I wanted, meanwhile I could save money for school,” Stevens says. He received his undergraduate degree in computer information systems in 1992. Stevens speaks the language of IT that is lost on most people. While boarding an airplane a few years ago, he came across a guy wearing a T-shirt that had the phrase “chown -R us ./ base.” He immediately began laughing and the guy wearing the shirt said, “We’re the only two

We had a class ﬁeld trip where they took us to a room encased in glass…a computer room. It was there that I realized this is where I needed to be.

WRITING BY :: BY PAUL BOYER

he speaker of the Arizona House of Representatives has appointed Rep. David Stevens to chair the newly formed ad hoc committee on Internet Technology. As chairman, Stevens, R-Sierra Vista, decides which of the bills that are referred to his committee will be heard, and what the hearings will focus on. His vision for the state’s IT infrastructure system would result in lower costs and better services for all Arizonans. “I’d like to see an enterprise solution that could entail the same hardware and software to minimize training and cost, provide portability, and eliminate fraud, waste, and abuse” Stevens says. His appointment to the committee is a natural fit, given his

background in IT through his service in the military and in the private sector. Born in 1961, Stevens grew up in a small farm town in northern Illinois. He saw his first computer in the early 1970s and decided to pursue computers as a calling. “We had a class field trip where they took us to a room encased in glass…a computer room. It was there that I realized this is where I needed to be,” Stevens says. At that point, personal computers were a thing of the future. After stepping into an Army recruiter’s office at age 17, the recruiter offered Stevens a job that didn’t involve computers. “I want a computer job,” he told the recruiter. “I’ll check out what the Air Force is offering.” Shortly thereafter, the recruiter offered Stevens a computer job.

Paul Boyer is communications specialist for the Arizona House Majority.

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Job Suits Him To An (I)T

Rep. David Stevens’ background prepared him well for role as chairman of ad hoc committee

guys on this plane that get the joke, with the phrase consisting of computer code meaning ‘All Your Base R Belong to Us,’ ’’Stevens recalls. With a 10-year career in the military, Stevens has had several jobs in the computer field, including computer operator, supply and field artillery, pre/post test support, mobile subscriber equipment, software development, tactical digital information testing, Geographic Information Systems, Internet security and more than a decade of database administration. Stevens’ combination of IT experience and policymaker has a major impact on the approach the Legislature takes toward the IT industry, and the direction it will go in. “I decided to run in 2002,” Stevens says, “since I felt the only way to have a positive change was to get involved and run for office since yelling at the TV no longer worked for me.” Arizona is not competitive when it comes to attracting and retaining businesses in the state. House Bill 2250 is designed to change that. The bill has a particular focus on base industries, or those industries that export 65 percent or more of their goods/services and provide higher-wage jobs that create indirect and induced jobs. “I sponsored HB2250 because I immediately saw the benefit this legislation will have on Arizona’s business sector but also the technology industry in particular,” Stevens says.

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– Rep. David Stevens

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GMP Networks delivers best practices and solutions in information systems security, IT governance, endpoint management, application performance management, virtualization and data center optimization. Its approach is highly consultative and strongly oriented towards effective collaborations with vendor partners including Symantec, for whom it supports more solutions than any other provider in the Southwest. www.gmpnet.net Gregory K. Smith and Associates is a full-service firm that specializes in business and tax planning and conducts numerous seminars for CPAs, attorneys, and the general public. Established in 1978 as an insurance brokerage company, Gregory K. Smith and Associates provides a complete portfolio of insurance products and services using A+ and A++ BEST rated insurance carriers. www.virtualagent.net Hi-Tech Machining & Engineering Inc. provides the engineering and manufacturing expertise to deliver completed parts and assemblies. It machines all standard metal alloys, engineered plastics, most composite materials, and exotic metals. It has milling, turning, grinding and wire EDM equipment in-house, and works with partners for additional manufacturing services. www.hi-techmachining.com Tucson-based Infrared Laboratories, Inc. provides infrared imaging and detection products, cooled and uncooled optics and optical assemblies, and cryo-vacuum and cryo-mechanical assemblies for government, university, and commercial customers in 34 countries. It subsidiary, IRLabs, Inc., has delivered the world’s highest signal-to-noise ratio infrared emission microscopes to semiconductor design customers in 16 countries. www.irlabs.com LifeLock is an industry leader in the rapidly growing field of identity theft protection. The Tempe-based company is led by an exciting leadership team that has driven the company to numerous awards and honors in four short years. It is backed by Bessemer Venture Partners, one of the leading venture capital firms in the world, and serves tens of thousands of consumers in every state plus Puerto Rico and the U.S. Virgin Islands. www.lifelock.com The Management Information Systems Department at The University of Arizona, Eller College of Management has been ranked by U.S. News & World Report as a Top 5 program for more than 20 consecutive years. With more than $80 million in research grants and state and industry support, the program has participated in cutting-edge research in group systems, artificial intelligence, and data management projects while educating more than 3,500 undergraduate, 1,200 graduate and 150 doctoral students. www.mis.eller.arizona.edu

Miss Details Design is a graphic-design firm specializing in business branding. From single design projects to complete brand development, it works with clients of all sizes: start-up businesses needing help from a graphic designer, mid-size businesses looking to re-brand, and large businesses needing outsourced or overflow graphic design and print management. www. missdetails.com

NetNova is a leading provider of cloud virtualization, IT outsourcing, and consulting services. Its innovative approach to IT provides customers with the most efficient, scalable solutions available— often with no capital investment. By leveraging NetNova, customers are able to focus on their businesses, empowered by better, faster, more efficient IT solutions. www.netnova.com The North Scottsdale Chamber of Commerce sets the standard for excellence in member service, community collaboration, business growth, and achieving a high quality of life in the North Scottsdale area. It is a non-partisan, non-political organization that is open to new members. It is not affiliated with the Scottsdale Area Chamber of Commerce. www.NorthScottsdaleChamber.org (n)TORUS Technologies develops software products that enable publishers of premium online content to maximize their advertising revenues with a highly interactive model that creates a recurring two-way dialogue between advertisers and consumers at a multitude of touch points. (n) TORUS rewards consumers for taking advantage of special offers from their favorite brands and sharing these offers across their social networking landscape. www.ntorus.com Pacific Scientific Energetic Materials Co. is the industry leader in the design, development and production of ordnance, electronics and laser components and systems for the aerospace, defense, and commercial industries. With three facilities—including one in Chandler—it provides products and services that include fire suppression components and systems, green energetic materials, guidance systems, and vehicle-arresting systems. www.psemc.com Red Oak Technologies is a leading provider of comprehensive resourcing solutions across a variety of industries and sectors including IT, marketing, finance, business operations, manufacturing and engineering. With a regional office in Phoenix, Red Oak Technologies is known as a top provider of IT talent regionally and throughout the nation with clients such as Apple, Cisco and Hitachi. www.redoaktech.com Rytek Technical provides maintenance and repair services for automated equipment and lab instruments, including fully automated sample storage systems, robotic material handling systems, automated chemistry wash systems, pick and place systems, and vacuum pumps. It also builds machine enclosures, ventilation hoods, special attachments for existing equipment, and customer-specified fixtures. www.rytektechnical.com

THE ENTrEprENEur issuE

Arizona Quality Alliance promotes and recognizes performance excellence in organizations through the Arizona Performance Excellence Award Program, providing feedback for improvement, professional development workshops, benchmarking tours, networking opportunities, training to assess and evaluate organizations, and mentoring. It works with all industries, profit or not-forprofit organizations, and private or public sector.

What began as a brainstorming session of a handful of engineers around a card table in 1989 has evolved into a worldwide collaborative effort of thousands of colleagues. Garmin’s goal, as it was then, remains simple: to create navigation and communication devices that can enrich its customers’ lives. Its innovative products span various areas of interest, including automotive, aviation, marine, fitness, outdoor recreation and wireless applications. www.garmin.com

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American Internet Services provides businessto-business data center services, with seven premium colocation facilities in California and Arizona. It has invested in state-of-the-art equipment and technology to ensure unsurpassed reliability, bandwidth, security and redundancy for its worldwide clients. AIS’s data centers are carrier-neutral facilities annually SAS70 Type II-audited. www.americanis.net

MEMBERS: and employee recognition, as well as name badges, increased performance requirements for current signage, promotional items and athletic award rec- and future electronic packages. Products are made to order with the preferred laminate system and ognition for all sports. www.sundeviltrophy.com construction, and available when you need them. Phoenix-based Syntellect provides self-service and www.ticertechnologies.com live contact center solutions spanning the entire Vigilant Technologies is a premier provider of customer service spectrum. Its comprehensive information technology products, services and solutions are designed to empower customers to enterprise-wide integration of innovative IT soluachieve the best mix of automated and live assistance service with the flexibility to adapt to chang- tions to commercial customers as well as federal, Sprout Marketing is an outsourced marketing state and local government customers worldwide. ing needs and conditions. www.syntellect.com department. From market research to company The Chandler-based firm offers its customers Tech Biz Bridge helps small and mid-size high rebranding to product rollouts, Sprout’s innovacutting-edge consultation, virtualization, design, tive approach allows clients to get the experience tech companies design and implement costimplementation, and ongoing infrastructure manof an integrated marketing team without having effective, results-oriented business and marketing agement. www.vigilanthosting.com strategies. It also offers planning tools and develto hire full-time resources. It has helped more opment programs that help business owners create Waltair Technologies, a technology-solution provider than 250 companies bring more than 400 proda growth plan, measure progress and make neces- headquartered in Scottsdale, has built the company on ucts to market. www.sproutmarketing.com four foundation principles: customer success, quality, sary adjustments. www.techbizbridge.com Summit Contract Management provides step-bycommitment and professionalism. Waltair Tech is an Scottsdale-based Tempo Creative is Web Success expert in the entire software development life cycle and step guidance in the government procurement Delivered™ by a talented team of creative and lifecycle from management of new intellectual provides business and technical analysis and design, marketing professionals who truly care about property, goods and services to contract closearchitecture project management, development, and out. It specializes in the Small Business Innovative achieving maximum ROI for every client. It provides testing services. www.waltairtechnologies.com Research, Small Business Technology Transfer and clients a full suite of Web marketing services Yulex Corp. uses clean technologies to derive including Web design and development, search Broad Agency Announcement programs. It helps renewable biobased materials, including natural companies obtain General Services Administration engine marketing and social media marketing as rubber and green resins, from the desert plant well as offline traditional design and marketing contracts. www.summitcontractmanagement.com known as guayule (why-you-lee). It offers the only services. www.tempocreative.com Sun Devil Trophy, Inc. takes pride in providing source of natural rubber in North America and the top-quality services to customers who need recog- Ticer Technologies manufactures thin-film resis- world’s only natural latex that is safe for people nition and achievement awards, executive gifts and tor materials uniquely suited to meet the chalwith Type I latex allergy. www.yulex.com posed new designs, materials, and custom event CTO_AD:Layout supplies. It specializes1in corporate HONEYWELL 2/12/2010 lenges 4:08 PMwithPage 1

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The mission of the Southern Arizona Regional Science and Engineering Fair is to excite young minds about science and engineering. Its current focus is on rural and economically disadvantaged areas and diversity of participation. It teaches the scientific process and provides real-world experiences in research and experimentation, hands-on activities, and opportunities to meet other interested students and adult role models. www.sarsef.org

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safety innovators

Honeywell is advancing flight safety through enhanced situational awareness. On the ground or in the air, getting more information to pilots is critical for the safe operation of aircraft. That’s why we strive to create safety systems that not only surround pilots with the key information they need – weather, traffic and terrain – but also integrate these innovations into lightweight, cost-effective platforms. From intuitive displays and predictive sensors to integrated avionics, Honeywell reduces pilot workload while enhancing situational awareness with proven automated advanced avionics solutions.

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The Network

Allviant aims to simplify health care for consumers, cut costs for employers WRITING BY :: KATE NOLAN

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Just Phone It In

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ere’s an idea: Use your cell phone to manage your health. Have it fi le insurance reimbursement forms, alert you to get your teeth cleaned, schedule yoga classes or doctor appointments and check you in early to eliminate office waits. Great. Is there an app for that? Yes, it’s called CarePass, and it works on whatever mobile platform you want it to. It may become the first widely used consumer tool for reminders and alerts, empowering consumers to define how they interact with their care providers. CarePass is the initial product rollout for Allviant, a Scottsdale startup that is “changing the rules of engagement in health care,” according to Lilian Myers, its CEO and co-founder. The firm is based at SkySong, the Arizona State University Scottsdale Innovation Center, whose tenants can access ASU business resources. “In health care, the real deal for consumers is that life is too complicated,” Myers says. Allviant—the name’s root words imply inclusiveness and life—aims to make it easier for consumers to engage in their health. CarePass lets consumers easily and securely interact with their healthcare providers via phone, e-mail or text-message, while connecting to a network of service providers such as health-savings vendors, personal health records, nursing call services or medical professionals. The

product conceivably could declutter healthcare communication for consumers. But Allviant intends to make its mark with employers, who pour money into ways to get employees to “engage,” to care about their health. Companies get better value from health insurance when employees are more engaged. “Our model drives down the cost of health care,” says Myers, a veteran of several technology startups after a long stretch at Microsoft where she did business development. Allviant recently announced its largest technology partner to date, Dossia, a personal health record consortium founded by 10 top U.S. companies that include Intel, Vanguard Health and Walmart. Dossia markets a system to employers that aggregates individuals’ health data into a safe Web-based platform they can use to steer through the health-care system. Dossia was looking for ways employers could help their employees become more demanding health-care consumers, according to Colin Evans, CEO. “Allviant’s tools are practical and let employees plug in according to their own health interests, whether for pregnancy, smoking cessation or chronic diabetes. Using the mobile device in their pocket provides more immediate solutions,” Evans says. Now in the process of raising its first round of venture capital, Allviant originated in 2008 from Salt Lake City-based Medicity, a firm founded by Dr. J. Kipp Lassetter whom Myers worked with on electronic medical record technology projects in the late 1990s before he founded Medicity. Medicity lets health-care providers exchange clinical information. Lassetter conceived of the CarePass project and pegged Myers, then living in Florida, to develop and take it to market. One early decision was basing Allviant in Arizona. Coming from Florida, Myers joked she preferred anywhere that didn’t require a change of wardrobe. But Arizona’s bigger attractions were its pool of talent in health information technology and the opportunity to attach to ASU, where CarePass is being tested and Allviant is deploying a virtual waiting room concept through the campus health system. “We didn’t even look at locating in California since attracting the best talent is much more competitive there as an earlystage company. Locating here in Arizona helps us rise above the noise, yet still be close enough to California for raising capital.”

Our model drives down the cost of health care. -Lilian Myers, CEO and cofounder of Allviant

Q&A with Lilian Myers WHAT ADVICE WOULD YOU GIVE SOMEONE WEIGHING THE RISK OF BEING AN ENTREPRENEUR? I would disavow anyone of the notion they are working for themselves when they do it. They are working for everybody else: The people they bring on, the market they are going after, the customers, the shareholders. WHY HAVE YOU SELECTED TECHNOLOGY AS THE PLACE TO BE AN ENTREPRENEUR? I got really lucky — got recruited by Microsoft a long time ago. I understood the technology and understood the technology business. At this point, I thought: Why not? It was an accidental discovery, and from there it’s been pretty consuming. I did once try something else: Concrete counter tops. It was clear to me technology was what I was good at, not the business of manufacturing and design work. GIVEN THE CHANCE, WHICH STEP ALONG THE WAY WOULD YOU TRY AGAIN? I learned in the concrete business to conserve more cash. Cash is king. Don’t spend anything you don’t have to. We just expanded too quickly, invested too much in space and capital equipment…Make sure you estimate accurately.

+ GET CONNECTED www.allviant.com

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Legislative

Luncheon

KEYNOTE SPEAKER SERIES

THE ARIZONA TECHNOLOGY COUNCIL INVITES its members to showcase their innovations, technologies and products at the third annual Legislative Luncheon. This event is an excellent opportunity for the Council to garner the Legislature’s support for the technology industry and our policy agenda by showcasing the economic output Arizona’s technological innovations provide. $ EDUEHTXH OXQFK ZLOO EH SURYLGHG IRU DOO DWWHQGHHV

Monday, March 8, 2010

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State Capitol: House and Senate Lawn 1700 West Washington Street, Phoenix, Arizona 85007 11:30 AM - 1:00 PM

Cost: Individual Attendee, $50 Showcase Your Company at a Booth, $150 (includes 4 tickets) Premier Sponsorship Package $1,500 · · · · · ·

Logo on all marketing materials Logo and link on aztechcouncil.org One (1) booth space in Technology Showcase Eight (8) tickets to Legislative Luncheon Reserved company table Company mention in opening remarks

For more information on showcasing your company at this event, please contact events@aztechcouncil.org. For more information, go to www.aztechcouncil.org.