2012 Community RepoRt

what’s next?

mark Williams | Board Chair

no one really knows what tomorrow holds, but we’re

fortunate enough to catch glimpses of what lies ahead

through our work with startups. At this very minute,

entrepreneurs are creating exciting new companies and

hundreds of new jobs while commercializing cutting-edge

technologies, developing life-saving medical advancements

and solving complex environmental issues.

By helping promising entrepreneurs perfect their pitch,

obtain a mentor, access their first institutional capital,

secure a client or recruit key hires, JumpStart is investing

in companies that will grow to enhance northeast ohio’s

economic vitality.

We thank our supporters for providing young companies

with the resources they need to succeed, and for giving

our next generation of leaders their best shot at both

transforming the regional economy and changing the way

the world lives, works and plays.

WhAt’S next?

mark Williams | Board ChairRay t. Leach | Ceo

Ray t. Leach | Ceo

tABLe of ContentS

CLeAnteCh

ADAp nanotech 2/3

phycal 4/5

6

heALthCARe

Cervilenz inc. 8/9

SironRx therapeutics 10/11

7

BuSineSS & ConSumeR pRoDuCtS & SeRviCeS 13

infoRmAtion teChnoLogy

enforcer eCoaching 14/15

Amvonet 16/17

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SuppoRt, ReCognition & pRogReSS 18/19 DonoRS & BoARD 20/21

StoRieS of JumpStARt CLient CompAnieS

Sunny Sethi, ph.D. ADAp nanotech | executive Director & Cto

JumpStart support began in 2009

“Carbon nanotube-based adhesive . . . it’s a cool

technology, and it has received a lot of attention.

ADAp nanotech makes thermally conductive

adhesives that will allow electronics manufacturers

to build faster, smaller and less expensive

electronic components. our goal is to capture

a large part of the thermally conductive tape

market. We are starting to ramp up production

and, with the help of our advisors and our network,

we are trying to form some strategic alliances with

manufacturers and users of our material.”

-SunnySethi

taking a cue from nature, ADAp nanotech makes dry, thermally conductive adhesives inspired by the structure

of a gecko’s foot. this material is expected to be incorporated as a cooling mechanism in heat-generating

electronic components found inside items such as smart phones and computers.

heralded as one of the top 10 university startups in the 2011 University TechWatch Startup Report,

ADAp nanotech grew out of research at the university of Akron. the company, which has received business

assistance from regional resources such as JumpStart, university of Akron Research foundation and Akron

global Business Accelerator, was nominated for a 2012 global Cleantech Cluster Association Later Stage Award.

ADAp nanotech | CLeAnteCh 3the story continues at jumpstartinc.org/annualreport

phycal develops the biology, technology and projects to produce innovative,

advanced and renewable biofuels from alternative high-yield crops such as

algae and cassava. these biofuels will increase the country’s energy security

and assist in the reduction of greenhouse gas emissions.

-J.KevinBeRneR

“the reason that folks keep returning to reliance on fossil

fuels is because these fuels are really, really efficient.

to me, it seems like inexpensive energy underwrites

most of our lifestyle. entrepreneurs need to develop

renewable fuels that compete on cost, and that’s what

we’re working to do. eventually, phycal will build many

projects in many geographies, but our R&D facility

will always be located in northeast ohio. there is deep

energy and process expertise in the region and we’ve

built a great group of people with a great culture.”

phycal | CLeAnteCh4 the story continues at jumpstartinc.org/annualreport

Bloomberg Businessweek named phycal one of the world’s most intriguing startups, just one of many bioenergy

innovator lists on which it has appeared. in a competitive process, the Department of energy selected

phycal for a $51 million contract, allowing the company to build and operate a demonstration-scale algae farm.

J. Kevin Berner phycal | president & Ceo

JumpStart support began in 2006

Clean

health

techBy creating innovative technologies and processes that

capitalize on the region’s manufacturing strengths while

conserving and reusing valuable resources, JumpStart

cleantech clients are getting global recognition.

CnBC showcased the game-changing potential of industrial waste heat recovery systems built by

EchogEn PowEr SyStEmS. Strategic news Service selected mAr SyStEmS, whose affordable,

eco-friendly solutions remove heavy-metal contaminants from water, for world promotion through its

fiReStarters program. The New York Times highlighted how ABSmAtEriAlS’ water-cleaning technology

osorb® could reduce waste byproducts produced by fracking, while company co-founder and chief

science officer Dr. paul edmiston received Popular Mechanics’ Breakthrough Award. And nanotechnology

materials science company mESocoAt and its CermaClad™ metal coating took top honors in The Wall

Street Journal’s 2012 technology innovation Awards.

6

healthcare

Despite a tough healthcare fundraising environment

nationally, JumpStart companies are managing

to attract attention and significant dollars from

investors across the country.

Companies developing healthcare-related technologies accounted for 61 percent of the equity capital

raised in northeast ohio over the last five years. in 2012, cArdioinSight tEchnologiES,

developer of non-invasive electrocardiographic mapping technology, closed $7.5 million in Series C

financing. nEuroS mEdicAl, whose patented electrical nerve Block™ technology is focused on

chronic pain elimination, announced a $3.5 million funding round. And JuvEntAS thErAPEuticS

closed a $22.2 million Series B investment round, allowing the company to complete phase 2 clinical

trials of regenerative medicine treatments for both chronic heart failure and critical limb ischemia.

7

Rosalyn Baxter-Jones, mDCervilenz inc. | inventor

Dean KochCervilenz inc. | president & Ceo

JumpStart support began in 2008

“i knew if a patient was having contractions and i ordered an ultrasound

to measure the length of her cervix to determine if she was at risk for

preterm birth, it would take two days. i thought, ‘Why can’t i get a

measurement and an answer right now?’ once i created a solution,

i wanted to be sure it was available for all obstetricians.”

“While the biggest challenge for any startup is access to capital, we’ve

been able to raise capital by telling the story of prematurity, of our

device and of reducing the risk of preterm birth worldwide. now

the biggest challenge we face is educating people on a very big

issue as a small company without a lot of resources to do that.”

-RoSALynBAxteR-JoneSmD

-DeAnKoCh

Cervilenz inc. manufactures and markets a simple, low-cost medical device that measures cervical

length. this measurement helps identify those pregnant women who might be at high risk for preterm

birth, so preventative treatments can be administered in a timely fashion.

Cervilenz inc. received a Ce mark and iSo 13485 Certification for its CerviLenz® device and added to its

already robust patent portfolio in 2011. it was one of five biomedical companies whose products toured the

country as part of the “make it in America” exhibit, which highlighted innovative, u.S.-manufactured items.

Cervilenz inc. | heALthCARe 9the story continues at jumpstartinc.org/annualreport

“What appeals to me about being part of a healthcare startup is

the ability to work on a technology that has the opportunity

to transform the way medicine is practiced . . . But we

could not do that without the capital we need to

continue to grow. the support SironRx has been

given from the angel community is nothing short of

astonishing. one thing this region has that a lot of

other regions trying to advance their biotechnology

corporations don’t is access to early stage capital.

We do that really well here in ohio and,

specifically, in northeast ohio.”

SironRx therapeutics | heALthCARe10

-evAnfACheR

SironRx therapeutics received a $1 million grant from ohio’s third frontier technology

support program and raised nearly $3.5 million more from angels and early

stage venture capital, including a $250,000 JumpStart investment. in 2012, the

regenerative medicine company treated its first patient in a human clinical study.

SironRx therapeutics is developing novel therapies to speed up dermal wound healing and prevent scar formation.

the story continues at jumpstartinc.org/annualreport

evan facher, ph.D.SironRx therapeutics | president & Ceo

JumpStart support began in 2010

ation

nology

Inform

12

JumpStart’s diverse information technology companies produce

cutting-edge solutions that attract big-name partners and

increase customer satisfaction.

Along with big brand names such as Canon, fender and oreck, direct digital marketing software and services company

KnoticE counts eight of the nation’s top cable companies as clients. PrEEmPtivE SolutionS, a software company

specializing in application protection and analytics solutions, provided exception analytics in microsoft visual Studio

2012. Software company onShift unveiled Staff exact, an acuity-based program that identifies precise staffing

requirements at long-term care and senior living facilities. And marketing technology company SEgmint is

driving the digital analytics for a new inDyCAR Discover credit card program.

ationtech

businessConsumer

&nology

InformbusinessConsumerWhether reporting on a niche industry or finding better solutions for

common household concerns, JumpStart clients reach their target

markets and generate revenues.

wirElESS EnvironmEnt’s energy-efficient, wireless LeD lights are top sellers on Amazon.com. Still, the

company reaches consumers and hones its business-to-consumer strategy via the use of crowdfunding and social

media. mEdcity mEdiA shares healthcare and life sciences information on its daily news website, and then

gathers innovators in those fields at offline events, diversifying its revenue stream and audience. EmBrAcE PEt

inSurAncE, which has insured 20,000 pets through its customizable product, stresses the importance of developing

trust and community with its clients, making it an industry thought leader.

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marty Butlerenforcer eCoaching | president & Ceo

JumpStart support began in 2011

enforcer eCoaching | infoRmAtion teChnoLogy 15

“it’s great growing a company in such a big industry. We don’t have to

explain to a customer why wellness is important; they already know.

our challenge is communicating why we’re different, which we

do largely through our outcomes. Companies in our target

market—large, self-insured employers—are frustrated with

how much they are paying for employee healthcare and

their lack of success with other wellness programs. they

are looking for a solution that works, and we have that

solution. in the future, when people think of losing weight,

quitting smoking, managing chronic conditions or living

healthier, i’d like them to think of enforcer eCoaching first.”

enforcer eCoaching is a health-coaching company offering a series of email-based, personalized wellness programs

based on methodology developed by Cleveland Clinic’s Dr. michael Roizen over 25 years. By encouraging employees to

make healthier daily choices, enforcer eCoaching gives employers a valuable tool to reduce healthcare costs.

enforcer eCoaching’s program has helped more than 1,000 participants

move and become healthier, and this number keeps rising. With

JumpStart’s assistance, the startup recently found and hired its first

salesperson, who is already helping generate revenue and facilitate growth.

-mARtyButLeR

the story continues at jumpstartinc.org/annualreport

Amvonet | infoRmAtion teChnoLogy16

Buckeye online School for Success, a public online K-12 school in east Liverpool, ohio, was an early adopter of

Amvonet and eventually became a partner who helped the company test and develop new functionalities. Amvonet,

which has received business support and advice from JumpStart, currently has clients in nine countries.

Amvonet is a comprehensive, integrated software suite consisting of an e-learning management system,

a live web-conferencing and virtual classroom solution, and a content-authoring application. this could

make education more accessible to all.

“the idea for Amvonet originated when [my father] was a college professor.

he asked me to create a prototype of an application because he wanted

to teach students throughout the world. We showed our idea to a few

people and our current partners were interested. And that’s how the

solution began—with a simple prototype and initial seed funding.”

“the use of digital technology [is transforming]

education. We offer a comprehensive solution

that provides everything demanded by the 21st

century’s educational process. [my son nikita

and i] believe Amvonet is a vehicle that can deliver

affordable, high-quality education to every household.”

-niKitAeeLen

-vADimeeLen

the story continues at jumpstartinc.org/annualreport

nikita eelenAmvonet | Co-founder & vice president, Research & operationsvadim eelen

Amvonet | president, Co-founder & Ceo

JumpStart support began in 2012

91% of funds designated for Northeast Ohiodirectly benefit entrepreneurs

$23.8Mfunds invested directly

into early stagecompanies

$5.7Moperations

$4.4Mworking with entrepreneurial ecosystemsacross the country

$36.7M providing intense assistance and access to resources

$31.1MState of Ohio

$4.6MFederal

$1.9MIndividuals & Program Fees

$24.8MFoundations

$.9MInvestment Returns

$7.3M Corporations

SouRCeS of funDS $70.6m

$70.6muSeS of funDS

ReCent ReCognitionJumpStARt received the goLD exCeLLenCe

in eConomiC DeveLopment AWARD for

entrepreneurship from the international

economic Development Council

Ceo RAy LeACh was recognized as 2012

eRnSt & young entRepReneuR of the

yeAR noRtheASt ohio in the category of

financial and Business Advisory Services

RiChARD “DuKe” JAnKuRA won the

Cfo of the yeAR AWARD from Crain’s

Cleveland Business

JumpStart entrepreneur-in-Residence

vinny guptA was honored with a

Community pARtneRS AWARD at the

2012 tie international entrepreneur Awards

Cleveland was announced as a goLDmAn

SAChS 10,000 SmALL BuSineSSeS

location with Cuyahoga Community

College, JumpStart, CoSe, the northeast

ohio hispanic Chamber of Commerce and

urban League of greater Cleveland as

outreach partners

oRgAnizAtionAL SuppoRt: SouRCeS&uSeS (7.1.2004-6.30.2012)

(over 8 years)

(over 8 years)

18

pRogReSS (7.1.2004-6.30.2012) JumpStart supports entrepreneurs building fast growing, competitive companies that could

go on to contribute significantly to the regional economy. our progress is measured largely by

the progress of our clients—their ability to raise capital, generate revenue and create jobs.

follow-on capital raised by JumpStart

client companies ($256m in fy2011

and fy2012 alone)

number of JumpStart client companies

that individually raised $1m+ in additional

outside investment

portion of all venture dollars in northeast ohio

that went to companies assisted by JumpStart

or one of our partners (2005-2011)

CApitAL

$495M 69 71%

jobs created and retained by JumpStart

client companies (1,436 direct)

reported average salary for jobs created by

JumpStart client companies in 2011

new hires and board members JumpStart

has helped to place at northeast ohio

startups since 2010

JoBS

2,740 $65kper year

330

direct jobs created and retained by

minority- and women-owned, and

inner-city client companies

economic benefit generated by 121

JumpStart clients in 2011, according to

a Cleveland State university report

revenue collectively generated by JumpStart

client companies in 2011 alone

impACt

761 $220M $95M

client companies that have received

business assistance and/or funding

from JumpStart

seed stage dollars JumpStart has committed

to 65 northeast ohio startups

hours donated by 31 JumpStart mentors to

guide the growth of 22 young companies

since march 2012

ReACh

425 $26M 642

unless otherwise noted

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DonoR CommunityBoARD of DiReCtoRS

the Abington foundation

An Anonymous northeast ohio family

Baker hostetler

Calfee, halter and griswold

the Charter one foundation

the David and Lindsay morgenthaler foundation

Dix & eaton

Dollar Bank

the Dominion foundation

eaton Charitable fund

ernst & young

the ewing marion Kauffman foundation

fifth third Bank

the gAR foundation

the george W. Codrington foundation

geis Companies

goldman Sachs foundation

huntington Bank

Jobsohio

Jones Day

the Katherine and Lee Chilcote foundation

the Lincoln electric foundation

the nord family foundation

the parker hannifin foundation

the Raymond John Wean foundation

Squire, Sanders & Dempsey

SteRiS

the Summers family foundation

third federal foundation

thompson hine LLp

ulmer & Berne LLp

the u.S. Small Business Administration

the William J. and Dorothy K. o’neill foundation

mr. mark WilliamsBoard Chair

Dr. Jacqueline Acho

mr. philip Alexander

ms. Barbara Brown

ms. Lauren Rich fine, CfA

mr. Larry goddard

mr. Jack harley

mr. Jim hickey

mr. Jeff hoffman

mr. Bob hurwitz

Dr. Joseph Jankowski

Dr. eric Anthony Johnson

mr. Ray t. Leach

ms. Carmen ortiz-mcghee

ms. Amy millman

ms. Lee nielsen

Dr. frank papay

mr. patrick pastore

mr. gary S. Shamis, CpA, m. Acc.

Dr. Rachel talton

mr. todd R. teter

mr. Steve Walling

mr. Leonard D. young

JumpStart gratefully acknowledges 100 percent participation of its board of directors and

associates in financially supporting the organization.

observersms. Rebecca o. Bagley

ms. Deborah hoover

ms. Shilpa Kedar

mr. David morgenthaler

mr. Chris Schmid*

mr. William R. Seelbach

mr. Doug Weintraub, CpA*

ohio Development Services Agency Representative

* Former Board Chair

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in northeast ohio, JumpStart is part of a robust network of entrepreneurial resource providers.

We would like to recognize our current partners in ohio third frontier’s entrepreneurial

Signature program: Akron global Business Accelerator, Bioenterprise, Braintree Business

Development Center, great Lakes innovation and Development enterprise (gLiDe),

manufacturing Advocacy and growth network (mAgnet), ohio Aerospace institute and

youngstown Business incubator. We also welcome our newest collaborators: Austen

Bioinnovation institute in Akron, Bizdom, northeast ohio medical university (neomeD),

nortech, Shaker Launchhouse, the tech Belt energy innovation Center, teChudson, university

of Akron Research foundation and Akron Regional Change Angels (ARChAngels) network.

LeADeRShip DonoRS

Without the exceptional support of our public, private and philanthropic partners, we would not be

able to help innovators, such as those highlighted in this report, access the resources they need to

grow their tech-based companies. We appreciate our donor community’s commitment to accelerating

entrepreneurial successes today in order to create a new tomorrow.

the fred A. Lennon Charitable trust

greater Cleveland partnership and CoSe

the John S. and James L. Knight foundation

KeyBank foundation

pnC foundation

the Richard J. fasenmyer foundation

Surdna foundation

fund for our economic future

the Burton D. morgan foundation

the Cleveland foundation

the Donald and Alice noble foundation

the economic Development Administration of the u.S. Department of Commerce

the firstenergy foundation

forest City enterprises Charitable foundation

ohio third frontier is an internationally recognized technology-based economic development initiative that is successfully changing the

trajectory of ohio’s economy. the $2.3 billion initiative supports existing industries that are transforming themselves with new, globally

competitive products and fostering the formation and attraction of new companies in emerging industry sectors. ohio third frontier

provides funding to ohio technology-based companies, universities, nonprofit research institutions and other organizations to create

new technology-based products, companies, industries and jobs.

ContriButors

photos by laura webb | writing by annie zaleski & samantha fryberger | design by meg lalley

icons courtesy of the noun project21

6701 Carnegie Avenue, Suite 100 | Cleveland, oh 44103

www.jumpstartinc.org | @jumpstartinc