Seed Funding : Innovation + Job News

Six startups founded by students and recent graduates of Ohio University and West Virginia University have emerged from Ohio University’s Innovation Engine digital media accelerator, which is a summer entrepreneurship program aimed at keeping business and technology talent within the state.
 
The fledgling companies received up to $20,000 in seed funding and underwent a 12-week boot camp featuring mentorship opportunities with established executives and venture capitalists. Lynn Gellermann, Executive Director of the Center for Entrepreneurship, taught in the program, offering his expertise in digital media IT.
 
“These six teams were selected out of 17 applications,” says Gellermann. “They were screened, interviewed and selected based on their team, their idea and application.”
 
Viable ideas with viable markets won out.
 
“We look at the prospect of [the company] being able to put together an idea or beta product in a short time that they can demo.”
 
The program is made possible through public-private partnerships that offer expert insight and financial backing. These include the Center for Entrepreneurship, the Russ College of Engineering and Technology, the Scripps College of Communication, the Voinovich School and TechGROWTH Ohio. “We also have private support from WesBanco,” notes Gellermann.
 
Participants, says Gellermann, felt as if they received a “mini-MBA” in the 2013 program, noting a majority came from engineering or communications backgrounds. And whether they continue with their startup or not, Gellermann says the accelerator “impacted the way they think.”
 
“We hope that some of them will start up, make it to the marketplace, raise capital, employ some people, and become viable startup companies in the region,” says Gellermann, adding the program is also about building a culture of entrepreneurship in southeast Ohio.
 
The 2013 companies include MyCampus, which created a mobile app that allows college students to quickly sell and purchase items. Razor Dynamics offers a product that improves mobile phone location services. AccessAble developed a website to provide travel information and booking services for people with limited mobility. Atlas Language Innovations created an educational online video game that can teach users Arabic and other languages. Foleeo developed an online portfolio tool for job seekers in the business, engineering and technical fields. Lastly, Anyvent offers software for inexperienced event planners.
 
“Students will go back home and talk to their friends,” says Gellermann. “It’s really helping to promote a culture of innovation at OU.”
 

Source: Lynn Gellermann
Writer: Joe Baur

Donna Lee, CEO of MascotSecret, has always eyed with envy the vacant good seats at sporting events. She thought there had to be some way to get those unused good seats into the hands of those sitting in the cheap seats. So Lee and co-founder Jennifer Jeng set out to find a way.

“This is the problem we had growing up -- we always wanted better seats,” says Lee. “You go to the game, you see all the empty seats, and we thought there has to be a better solution.”
 
This past summer, Lee and Jeng moved to Cleveland from San Francisco to develop MascotSecret through Bizdom, a non-profit startup accelerator founded by Dan Gilbert, founder and chairman of Quicken Loans and majority owner of the Cleveland Cavaliers. “It allows you to upgrade your seats during game time through your mobile phone,” explains Lee. “All you need to do is open the app, put in how many tickets you want to upgrade, and then move to your new seats.”
 
Lee says the price to upgrade might be cheaper or more expensiver than face value depending on availability, the game, and other factors.
 
So far, MascotSecret has been testing the app at Cavs games. As a Bizdom company, they have gotten the support from Gilbert and Veritix. “We’ve had a really great response so far," says Lee. "Customers who have heard about it want to try it.”
 
MascotSecret recently received a $25,000 grant from the Lorain County Community College Foundation Innovation Fund, which they will use to further develop the app. The company is beginning talks with the Indians to use the app. The goal is to sell the app to markets across the country.

“Of course we want to expand as quickly as possible,” says Lee. As they expand, the company will be looking for technical and marketing talent.

 
Source: Donna Lee
Writer: Karin Connelly

The Barberton Community Development Corporation (BCDC), which serves as the city’s economic development arm, was recently tapped by the Small Business Administration (SBA) to receive a $1 million loan for small businesses in the region.
 
BCDC is one of only two cities in Ohio and 20 nationwide to receive $1 million SBA loans in a special two-year pilot program.

“Historically, we’ve only provided loans to companies in Barberton,” explains Scott Wagner, BCDC executive director. “With this SBA loan, we want to think more regionally since neighboring communities benefit from one another’s growth. What’s good for New Franklin is good for Barberton; what’s good for Norton is good for Barberton.”
 
According to Wagner, local companies seeking a loan from the new SBA fund must commit to staying and/or expanding in the region. They must also have fewer than 500 employees and demonstrate that they are an established, profitable business.

Loan amounts will vary from $10,000 to $200,000, and may be used for a host of purposes, including building construction or acquisition, equipment, furniture, fixtures, inventory or working capital.

Wagner indicated they’ve already received several applications from companies, ranging from manufacturing to customer service, in all three communities.
 
He believes that BCDC’s proven track record making effective loans to local small businesses, as well as their current loan portfolio, helped set them apart and give them an edge to land the SBA loan. “The competition was very intense, and we were extremely fortunate to be selected,” he says. “It’s a fantastic honor to be one of only 20 economic agencies nationwide to receive this award.”
 

Source:  Scott Wagner
Writer:   Lynne Meyer

Thanks to an influx of new capital, the Wooster Opportunities Loan Fund (WOLF) is expanding to offer business loans to technology startups throughout Wayne County.

Established in late 2010 to provide capital to small and emerging tech companies with high growth potential, WOLF started out as a $220,000 hyper-local fund. “The city of Wooster, Wooster Area Chamber of Commerce and Wooster Community Hospital put up the dollars for the fund, so loans were available only to those businesses willing to locate within the corporation limits of the city of Wooster,” says Justin Starlin, Development Manager for the City of Wooster.
 
That has changed thanks to a $100,000 investment from Cascade Capital of Akron that will be used to help startups grow and create jobs. “We now have $100,000 in direct loan money available for businesses throughout Wayne County and $150,000 remaining for businesses within the city of Wooster,” Starlin notes, explaining that the hyper-local fund awarded two $35,000 loans in 2011.
 
The recipients of those loans were ManuscriptTracker and the JNP Group. ManuScript Tracker’s software organizes and automates the peer review process for academics. The JNP Group engineers and manufactures acoustic products for the construction and building industry.
 
Applications for the next round of funding from WOLF are due December 17th. JumpStart will perform the initial vetting. Applicants who make it through the process will be considered for funding by a local committee administered by the nonprofit Wooster Growth Corporation. Loans of up to $35,000 are available.
 
 
Source:   Justin Starlin
Writer:  Lynne Meyer