Venture Capital

Brandery works to keep startups in Cincinnati

A few years ago, when Bryan Jowers and Justin Stanislaw were dreaming up an app to help friends pool money to give gifts, they felt they needed to leave Houston to improve their chances of finding investors and forging connections. Instead of relocating to a Silicon Valley hotspot, they moved to Cincinnati, lured by a startup accelerator called The Brandery. As one of six startups participating in the summer of 2010, they got 12 weeks of intensive help building their product, called Giftiki. Read the full story here.

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VFA Fellows excited to move to Cincinnati

They are young, high-powered, high-achieving, highly skilled professionals with their sights set on the same thing: success in Cincinnati, start-up style. Read where they are working — and why.

Batterii software powers business creativity

Chad Reynolds is an idea man. The DAAP graduate specialized in branding and design strategies as owner of design innovation agency Crush Republic, which is just one of many start-ups he’s been behind. If your company needed an infusion of creativity, he was the guy you’d hire. Soon enough, he realized that what companies needed most wasn’t an innovation consultant, but a way to harness their employees’ creativity. Reynolds launched Batterii two years ago and the company which started as “just me in a room,” soon drew in co-founder and programmer Nick Franceschina.  The company’s first client was Nike Inc., and Batterii now employees 18 staffers and has raised $800,000 in seed funding from CincyTech, company executives and an undisclosed investor. Mike Venerable, CincyTech’s managing director of digital, information and health technology, explains, “Batterii’s approach gives companies wanting to innovate an entirely new tool for broad engagement in the development of new products, new markets and improved internal processes.” Batterii, in short, is a web-based, social-media-like, software as a service offered to businesses small and large. Having already tapped Silicon Valley executive Kevin Cummins to serve as CEO earlier this year – Cummins invested $250,000 of his own money into the venture – Reynolds says he also hopes to lure companies from Cincinnati’s burgeoning portfolio of tech start-ups. “What we’re doing is taking the creative energy of employees and giving them an opportunity to build their passion and personal interest into something that helps the company succeed,” Reynolds says. The platform is also a way of conserving employees’ creative energy. Instead of locking a designated creative team in a conference room, companies can sign up all of their employees, create measurable, goal-driven challenges and pull points of interest and inspiration from staff and consumers (think social-media charged focus groups). So, if a company’s goal is to develop a new product, it can present this as a challenge, and use employee-gathered points of interest (which can be loaded as photos or tagged online) to define its next steps using a community-driven approach. By Robin Donovan

Cincinnati comes back to its shoreline

A shout-out from The New York Times! he shoreline of this Ohio River city, which in the 19th century hummed with 30 steamboat visits a day but faded in the 20th as pollution and industrial disinvestment pushed people and businesses inland, is emerging again as a hub of civic and economic vitality. Read the full story here.

CincyTech plans inaugural Great Lakes Venture Fair

CincyTech is working with its counterparts TechColumbus and JumpStart in Cleveland, as well the Ohio Venture Association and the Ohio Capital Fund, to organize the inaugural Great Lakes Venture Fair, Oct. 17-18, in downtown Cleveland. The Great Lakes Venture Fair is a day-and-a-half event that will gather investors and high-potential, venture-backable companies from across Ohio and the Midwest. It builds on the success of the Ohio Capital Fund’s Early Stage Summit convention, which was held in Columbus for seven years. Early-bird conference registration, at a rate of $150, is available until July 1. The GLVF also will follow the National Association of Seed and Venture Funds’ national conference “Advancing Innovation: Seeding Tomorrow’s Opportunities,” being held at the same location, Oct. 15-17. Programming for the GLVF will begin on Wednesday, Oct. 17, at 1 p.m. with a discussion on corporate venture partners, followed by a joint reception with the NASVF addressing the state of the Ohio Capital Fund. Thursday will include pitches from the region’s best startup information technology and bioscience companies, presentations on regional investment activity and conversations about building future growth in startups and investing in the Midwest. Additionally, if your company is interested in presenting at the venture fair, applications for company presentations will open in mid-June at www.greatlakesventurefair.org. Sponsors for the first Great Lakes Venture Fair include the Ohio Capital Fund, Early Stage Partners, CincyTech, Edison Ventures, Draper Triangle and Thompson Hine. For sponsorship opportunities, interested companies can contact admin@greatlakesventurefair.org or visit the website to download the Sponsor Prospectus. The conference is providing access to hotel rooms at the Cleveland Marriott Downtown at a discounted rate on a first come, first served basis. By CincyTech

Cincinnati venture powers corporate creativity

Batterii, a Cincinnati-based open-collaboration innovation software venture, has raised $800,000 in seed-stage funding, hired a seasoned West Coast technology executive as its CEO and added six other key executives to its management team. Read the full story here.

UC students take stroke detection device global

A team of UC students that has won several awards for their stroke-detection device, Ischiban, are in the hunt for bigger awards and more recognition.  The team includes biomedical and computer engineers and an industrial designer: Pooja Kadambi, Joe Lovelace, Scott Robinson and Alex Androski. They developed the device, comprised of an elastic headband connected to an electronic diagnostic device, which can quickly determine the type of stroke a patient is suffering from. This allows for quick diagnosis and faster treatment for better recovery rates, according to the developers. Currently, such stoke differentiation is done by a CT scan, which is costly and time-consuming. Ischiban can be used by EMTs at a patient's home or during an ambulance ride. Early detection is important because patients whose stoke is caused by a blood clot who are treated within three hours of symptoms are significantly more likely to survive and recover. Most recently, the team took first place at the Oregon New Venture Championship, which included a $3,000 prize. Teams are judged on their ideas, business plans and pitches, as well as how quickly they can adjust to feedback from various judges, says Charles H. Matthews, executive director of UC’s Center for Entrepreneurship Education and Research, professor of management and a team adviser. “The NVC is one of the best, but also one of the toughest competitions,” Matthews says. “Everyone was talking about their innovative approach to early stroke detection.”  The other prizes the team have won for their device include first place at the Innov8 Health Idea Expo at GE Aviation Learning Centre and runner-up in the Spirit of Enterprise Competition. After winning the Oregon competition, the group is on its way to the Venture Labs Investment Competition in Texas, May 3-6, which only allows 40 teams from around the world to compete.  Prizes include $135,000 in seed funding, feedback from investors and faculty and an opportunity to gain interest about their product or business. The competition is designed to mimic the real world process of garnering venture capital.  By Evan Wallis & Feoshia Henderson

Cincinnati startups get help from top college grads

Venture for America chose Cincinnati as one of its initial launch cities, and Time Magazine features Define My Style, a Cincinnati startup, that is recruiting through the initiative. Read the full story here.

Ilesfay receives interest, funding

Ilesfay Technology Group LLC has closed an oversubscribed seed-stage investment round of $615,000, led by CincyTech with $250,000 and completed by Douglas Groh, Steve Turnbull and other private investors.  Ilesfay was founded in 2009 and provides real-time, cloud-based synchronization services through its proprietary PointToCloud™ and MatchMaking™ software. Ilesfay’s technology replaces the slower, expensive point-to-point system of replicating data by storing project information in the cloud and transferring only data that changes between sites.  Chris McLennan, James Taylor and Joe Kramer started Ilesfay with a combined 30 years of engineering experience. They had seen their clients at A&A struggle with information exchange while working on large projects. For example, teams of people around the world can be contributing to the same project. Every time a small change is made to an engineering design, the teams have to exchange huge amounts of data – measured in terabytes. (For a bit of context: One terabyte equals 1,000 gigabytes. An average Blue-ray disc contains about 50 gigabytes). Right now companies transmit the data by leasing expensive fiber-optic lines or using virtual private networks (VPNs), which are not only also expensive but require a lot of manpower. Ilesfay uses a cloud-based service to replicate the data. Ilesfay aimed to raise a seed round of $500,000 but was met with such great interest that the round oversubscribed by $115,000.  “The oversubscription confirms our interest and eagerness for Ilesfay’s technology to come to market,” CincyTech senior investment analyst Justin Thompson says. “The company’s patent-pending technology could drastically improve the way that multi-nation companies exchange information. This software will be a key investment for PLM and vaulting companies.” Ilesfay has been piloting projects with Procter & Gamble since its formation.  By Sarah Blazak 

Brandery accepting applications for next round

Cincinnati’s nationally recognized startup accelerator, The Brandery, is accepting applications for its 2012 class via its Web site. Applications are due May 15, and early-admission decisions will be made May 1. The 2012 class of 10 companies will be announced on June 1.  As a member of the Global Accelerator Network and named a top 10 accelerator by the Kellogg School of Management/Kauffman Fellows/Tech Cocktail rankings, the Brandery has graduated 14 companies in its first two classes. These companies have generated funding across the country from CincyTech, Crosslink Capital, Draper Associates and Transmedia Capital. The Brandery runs a four-month program in Cincinnati for startups that are consumer-focused and brand-driven. It will add several aspects to its program this year: • Brandsmiths. The Brandery will hire developers or designers who don’t have a specific startup idea but want to work for one. They will work full-time for a stipend with Brandery participants and may have the opportunity to join one of the startups. The application and additional information can be found here. • edSpark. The Brandery is soliciting applications for an education-focused startup. The Greater Cincinnati Foundation has funded a new initiative called edSpark to encourage educational innovation. Startups focused on education initiatives should apply through the standard channel.  • Office hours. For those looking for more information or advice before submitting an application, the Brandery is holding office hours from 5-7 p.m., Tuesday, April 3, at The Brandery office, 1411 Vine St., Over-the-Rhine. Register for office hours. “The Brandery aims to give startups an unfair opportunity to succeed by leveraging Cincinnati’s regional strengths in marketing, branding and design and world-class companies such as P&G, Kroger, LPK, Nielsen and dunnhumby,” says Mike Bott, general manager of the Brandery, a position that was added this year. “Startups are attracted by the mentors and resources associated with The Brandery. We’ve already attracted applicants from six continents.”  The Brandery provides each company with $20,000 in seed money, training sessions with other entrepreneurs and industry experts, and networking with more than 50 mentors who work with startups to provide insights and help grow each idea into an investable, scalable product. Additionally, Cincinnati’s design agencies have donated their services to help each of the startups develop their branding and visual identity. The seed money that each company receives from The Brandery is now being provided by an award from the Ohio Third Frontier’s One Fund program for accelerators. For the first two years of the Brandery programs, CincyTech provided the $20,000 grants. Building upon a mentor list of industry leaders, The Brandery has recently welcomed Tim O’Shaughnessy of LivingSocial, Jonathon Triest of Ludlow Ventures, Bill Hildebolt of ExpoTV and Mike Brown Jr. of AOL Ventures. The 2012 session will begin July 2 and culminate Oct. 4 at Demo Day, where each Brandery company pitches its startup to a room of angel investors, venture capitalists, marketers and media. Last year’s Demo Day attracted more than 350 people to Great American Ball Park.   By Sarah Blazak 

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