The fourth Blackstone LaunchPad opened on the CWRU campus on April 23, providing a place for aspiring entrepreneurs to gather, learn and get advice.

“LaunchPad is aimed at students seeing it and saying, ‘I have an idea,’” says Deborah D. Hoover, president and CEO of the Burton D. Morgan Foundation. “It’s aimed at students walking in and talking to people and an idea takes off.”
 
The Burton D. Morgan Foundation in Hudson and the Blackstone Charitable Foundation announced in November 2011 that they had committed $3.2 million over three years to open LaunchPad locations in Northeast Ohio to train area student entrepreneurs.
 
The LaunchPad is a venture coach program developed at the University of Miami, Florida in 2008. The program provides participants with advice and mentorship to take business ideas to fruition. Students are matched up with venture coaches to guide them through the development process.
 
The other Northeast Ohio LaunchPads are on the campuses of Baldwin Wallace University, Lorain County Community College and Kent State University. The goal is to create 150 new sustainable companies in the next five years, which could generate as many as 3,000 jobs. Hoover says they expect to exceed that goal.
 
More than 40 students already are registered with the CWRU LaunchPad and 16 are exploring their business ideas. “More than 400 student ventures are underway among the four campuses,” says Hoover. “We think that’s pretty great.” Registration is ongoing.
 
Nearly 200 people turned out for the opening in CWRU’s Thwing Center. “It was great, we were really pleased with the way it went,” Hoover says of the opening. Attendees included Case president Barbara Snyder and Bob Sopko, director of the CWRU LaunchPad, as well as Joan Solotar, chair of the Blackstone Charitable Foundation and Vinny Gupta, chair of the Ohio Board of Regents.

 
Source: Deborah D. Hoover
Writer: Karin Connelly

Barroco, a Colombian and Latin American restaurant with another location is in Lakewood, recently opened a small cafe on W. 6th Street to bring its signature Latin American street food to the Warehouse District.

The new eatery, which can seat about 40 inside and outside on its patio, offers the popular arepa -- thick corn tortillas that are split like English muffins and filled with a variety of meat and veggies -- as well as other favorites such as a Cuban sandwich, Colombian chicken and Barroco burger.

The joint truly will be jumping when the W. 6th Streetscape project wraps up later this summer, allowing Barroco's patio to flourish. Co-owner Juan David Vergara says the clientele includes downtown office workers, residents and late-night revelers.

"This is a faster version of our restaurant," he says. "We still specialize in arepas, but we're also throwing in a couple of new items such as a loaded baked potato."

Vergara is working on some new concepts, including collaborating with Bank Street Wine and Spirits next door to allow BYOB, adding a larger chef's menu for dinner, and displaying what he calls "Barroco TV" (viewers can watch their food being prepared). Barroco is open until 3 a.m. on Friday and Saturday nights.

"Latin American street food is pretty much drinking food, bar food," he says. "People go out and stop by the street carts early or late. That's our concept."

Barroco makes its own arepas by hand, a three-day process that Vergara says is "like the ancients" -- they use hominy corn, not corn flour. The restaurant has been getting attention for its food and just won Best Latin Restaurant in Scene.

"So far it's been phenomenal," he says. "We're getting office people for lunch, people who live around here for dinner, and drunk people after the clubs let out."


Source: Juan David Vergara
Writer: Lee Chilcote

NEOSA Tech Week brought 1,600 attendees to events around Cleveland last week, tripling its numbers since it first started three years ago. “It’s really inspiring to see the region recognizing the value and importance of the IT industry in Cleveland,” says NEOSA director Brad Nellis.

From the NASA International Space Apps Challenge, which had 34 local participants in a worldwide event of 9,000, to the much-anticipated Best of Tech Awards, to educational events and job fairs, Tech Week highlighted both the emerging technology companies and the more established and growing businesses in the region.
 
“We saw a lot of new companies we hadn’t seen before and that was kind of cool,” says Nellis. In particular he cites iOTOS as a standout winner in the new Best of Tech category Most Promising Startup. “These guys showed a high degree of promise. iOTOS holds the opportunity to be something big coming out of Northeast Ohio.”
 
UrbanCode, which announced Monday that it has been acquired by IBM, won Best Software Product. “UrbanCode really stands out in the market,” says Nellis. “It was cool that we give them an award on Thursday, and on Monday they announce they’ve been acquired. We’ve been following them for a couple of years and they’re a company that’s growing like wildfire. They’ll probably double in size again this year.”
 
Hyland Software won Tech Company of the Year, Vox Mobile won Best IT Services Company, and DecisionDesk won Best Emerging Company. Nellis points out that all of the finalists are impressive companies as well, having emerged out of 60 nominations in five categories. Six CIO of the Year were named in various categories by Crain’s Cleveland Business.
 

Source: Brad Nellis
Writer: Karin Connelly

Chris Armenio and Art Geigel like having everything they need right at their fingertips. Pairing smart phones with tinkering on a hobbyist level, the two came up with iOTOS, a way to control everything from the garage door opener to the coffee maker through smart phones and tablets.
 
Armenio and Geigel developed iOTOS through the LaunchHouse Accelerator Program last year. Based on a technology known as “the Internet of things,” the tech wirelessly connects consumers and businesses to the things they use every day. The Internet of things market is expected to hit $14.4 trillion in the next 10 years.
 
“It started as an easy way to control hobby projects through a website or email for the hardware hackers,” explains Armenio of their NiOS wireless hub. “As we started looking out there, we found more and more diversified companies were looking to fit this stuff with their commercial products.”
 
The technology and iOTOS’ offerings are growing in popularity as the concept and demand takes off. The company was named “Most Promising Startup” at 2013 NEOSA Tech Week’s Best in Tech awards last week.
 
So far, the company has sold its technology to garage door opener retrofit packagers.  iOTOS recently announced pre-sales of its NioGarage, a retrofit WiFi garage door system. “We’re in pretty advanced talks with a few Northeast Ohio companies,” says Geigel.
 
iOTOS has four full-time employees, including Armenio and Geigel, two salespeople and three part-time employees. The company recently brought on Jim McGreevy as vice president of business development.

 
Sources: Chris Armenio and Art Geigel
Writer: Karin Connelly

Talent management firm Alexander Mann Solutions unexpectedly chose Cleveland as the hub for its U.S. operations last year. The company was all but set on Raleigh, North Carolina, when a full-throttle pitch by business leaders changed their minds. Afterwards, CEO Rosaleen Blair said the firm was "love-bombed" into choosing Cleveland. A package of incentives from the State of Ohio reportedly helped to seal the deal.

Now the firm is quickly expanding into its temporary offices in the Erieview Tower in downtown Cleveland. It has doubled in size since opening in August -- the firm now employs 40, and plans are in the works to ramp up to 60-75 employees by the end of the year.

"It's getting smaller by the day," says Mark Jones, Head of Global Client Services for Alexander Mann, of the current, 8,000-square-foot office. Jones moved here from the U.K. with his family. "We are looking at all options downtown."

Based in London, AMS employs more than 1,800 people, and assists clients in more than 60 countries. Cleveland is the firm's fifth operations center, with additional hubs in the U.K., China, the Phillipines and Poland. The firm has said that the hub in Cleveland could grow to become as large as 300 employees.

Finding the right talent for AMS in Cleveland has been harder than he anticipated. "Part of the challenge is that what we do is not straightforward. We're not a staffing firm. We are a specialist organization that deals with large corporate clients, handling all aspects of talent management for those clients. Not only does that mean finding candidates, but the complete onboarding of candidates."

Alexander Mann is currently hiring qualified individuals with experience in recruiting. Jones says he's been happy with the level of talent they've identified so far. "The caliber of people we've been able to hire is very, very strong."


Source: Mark Jones
Writer: Lee Chilcote

Ryan O’Donnell has created a way to add a personal touch to online gifting. The founder and CEO of Sociagram has created an online cloud-based platform to create customized personal video messages. O’Donnell recognized that people enjoy sending e-cards and adding other personal touches when they send online gifts.

O’Donnell started Let’s Gift It in 2011, an online group gifting site, but quickly recognized the market wasn’t there. “What we learned is we were in a startup graveyard,” he says. “There was low perceived value and a high level of complexity to integrate it.”
 
But the idea behind Let’s Gift It led to Sociagram in 2012. “Since 1996, the only option was printing out a gift message on a packing slip that gets sent out with the product,” explains O’Donnell. “We realized we need more than that. With Sociagram, grandma and grandpa live in another state, they can click a button and sing happy birthday to their grandson. Dad can then record the grandson opening their gift.”
 
Retailers can also incorporate Sociagram into their gift options. Sociagram clients include 1-800-Bakery, Ashland Addison Florist Company and Mak·a·boo Personalized Gifts.
 
Sociagram recently received a $250,000 investment from JumpStart to further develop its platform. “They’ve been great partners,” says O’Donnell. “They’ve helped us think it through.” O’Donnell just moved Sociagram’s offices to Cleveland from New York. “Cleveland has been a very receptive place for us,” he says. He’s currently working out of the FlashStarts offices.
 
The company currently employs two software developers and two marketing and sales people, as well as an intern. O’Donnell plans to hire an additional four people as the company grows.

 
Source: Ryan O’Donnell
Writer: Karin Connelly

Even in Ohio City's Market District, where monthly announcements of new businesses opening are not uncommon, this one is noteworthy. Boris Music, the Slovenian-born owner of the Hansa Import Haus at West 28th and Lorain, is set to break ground on a multi-million-dollar expansion that will transform a dated store into a restaurant and microbrewery.

For years, Hansa Import Haus has been a favorite of locals and those in-the-know -- its faded, faux-German exterior concealing the treasures of European chocolates, cheeses, meats and beer within. To outsiders, it was like: "That place? Is it even open?"

Yet Music, who owned eight other businesses in Cleveland but has shut them all down to start this project, says that the Ohio City neighborhood has finally been redeveloped to the point where he can jump in and pursue his dream project.

"The building was built as a fortress 30 years ago because we had to keep the vandals out," says the 56-year-old. "Now we're moving in the opposite direction. It will be much friendlier, with lots of windows that let the natural light in."

Although Music will roll out his new business in stages, the new Hansa House will hold an exclusive license to brew Pivovarna Lasko beer, Slovenia's largest beer producer, and also feature a European-style restaurant that offers lunch and dinner service. Later, Music plans to add a wine cellar and offer breakfast.

Designs for the new venue show the defensively-designed exterior opened up with large storefront-style windows and a new addition on the current parking lot. The design looks a bit like an Austrian ski lodge crossed with an ethnic beer garden.

As for the menu, Music says that he'll serve simple, high-quality food priced well. "Good ingredients, good quality," he says. "If you put something good in the pot, you get something good out. If you put garbage in the pot, you get garbage out."

More specifically, Music plans to bring in rotating chefs from Europe to deliver a menu that will focus on cuisine from a specific region for several months at a time. Cuisine from Hungary, Italy and Slovenia are likely options. Music says it's a concept he's seen work well in New York City that he wants to import here.

The Hansa Haus will also have a full bottling line. "This is nothing bombastic, it's not Great Lakes Brewery," he says. "We'll still be a microbrewery, and we want to help local breweries be more effective by offering them a cost-effective service."

Music intends to begin brewing beer in July and open the brewpub by October.


Source: Boris Music
Writer: Lee Chilcote

The journey that led Adrian and Cosmin Bota to open an organic, self-serve frozen yogurt shop on Coventry was a long, winding one that included illegally trekking across the Romanian border with their family to escape their tumultuous homeland.

The Bota brothers, who recall traveling miles at a time at night with their parents and three siblings, were just kids then. Eventually, the family made its way to the U.S. and was granted asylum. The family moved to Parma, where the boys grew up.

After stints living in New York and Florida, Adrian (who works for Cleveland Clinic Innovations) and Cosmin (a real estate entrepreneur) decided to pursue their dream of opening a small business. After studying the market, they landed on an organic, self-serve "fro-yo" concept and targeted the Coventry neighborhood. Piccadilly Artisan Yogurt, located at 1767 Coventry Road, is the result.

The shop, which sells yogurt and assorted toppings for $0.57 per ounce (yielding a healthy portion for a few bucks), is well-lit with big storefront windows, colorful tables, high ceilings and furniture built of reclaimed wood and other materials.

The fro-yo is touted as "full of healthy probiotics, vitamin D, calcium, protein and yummy goodness" while free of "high fructose corn syrup, hormones, artificial flavors, colors and preservatives." Toppings include fresh fruit sourced from the West Side Market. It's tasty stuff -- this writer can vouch for that.

"We wanted to couple health-conscious, quality-conscious food with a walkable, urban location," says Adrian Bota. "Places like Menchie's tend to go in malls. We went away from the franchise model from the beginning. We wanted it to be local."

Although the Botas have not yet been able to obtain local dairy, they're working on that. Meanwhile, many other products are sourced locally.

Coventry denizens will hardly recognize the former Grog Shop space, which has been vacant for 10 years. Landlord Michael Montlack apparently has been waiting for just the right tenant. He seems to have found it. The design-savvy duo transformed the club's front door into a table, keeping the sticker-laden graffiti on its underside.

The Botas are working with Cleveland Institute of Art students to program local artwork on the walls and hold regular openings. They envision the space as a community hub. Next up, they're dreaming of expanding to Ohio City.


Source: Adrian and Cosmin Bota
Writer: Lee Chilcote

Construction work has begun on a $1 million facelift to W. 6th Street, which will soon be transformed into a more attractive pedestrian-friendly environment that will include wider sidewalks, larger outdoor cafes, new public art and a branding campaign.

Thomas Starinsky of the Historic Warehouse District Development Corporation says that the impetus for the project came when officials realized that most of the buildings in the area had been restored, and that neighborhood leaders now needed to focus their attention on improving the "space between buildings."

"As the Global Center for Health Innovation, Convention Center and Ernst and Young Tower became a reality, we realized we needed to kick it up a notch," he says. "We pushed the City of Cleveland to make sure this project would be completed before the Global Center and the Convention Center open."

The project, which should be completed July 18th, is being funded through federal transportation enhancement dollars combined with a 20 percent city match. New banners and flower baskets are being paid for by sponsorships and memberships.

The downside is that businesses along W. 6th Street will sacrifice their patios this spring. "They're excited, but not about four months of construction," says Starinsky. "But we're taking it off like a band-aid and getting it done fast."

Although W. 6th perhaps is best known for its (occasionally infamous) clubs, Starinsky says the district's identity is not only diverse -- he cites a range of excellent ethnic cuisine in a few compact blocks -- but also quickly evolving.

"We have 3,000 residents and employees today, and we're adding 2,000 more employees with the Ernst and Young Tower," he says. "We recognize there will be a different type of person walking around here from the Convention Center and Global Center. We look at this as an opportunity to step up the Warehouse District."

Starinsky cites Take 5 jazz club as an example of the kind of new business that he hopes will add to the Warehouse District's ever-blossoming entertainment and dining scene. "There needs to be more diversity of food and entertainment."

The project also will include public art that tells the story of the Warehouse District. The 11-foot tall displays, which will be installed in the streetscape on W. 6th Street and eventually throughout the district, are designed by artist Corrie Slawson and authored by Warehouse District Director Tom Yablonsky.


Source: Thomas Starinsky
Writer: Lee Chilcote

In the penthouse of the historic Palace Theatre, Charles Stack is hoping to foster a few new tech companies -- 10 to be exact -- in Cleveland’s newest business accelerator, FlashStarts.

Stack started FlashStarts in October 2012 and will hold his inaugural startup class this summer. “Come in with a half-baked idea and we finish baking it, slap some cash for equity, and start it in three months,” he explains.
 
Teams of two or more can apply to be one of the 10, but Stack is also looking for 10 interns and even potential entrepreneurs who don’t have an idea yet, but want to help build on somebody else’s idea. “Even if you don’t have teammates or an idea, you can apply and we’ll put you with a team and you will get equity with that team,” he says. “There are a lot of smart people out there who may not have a teammate.”
 
Stack is against the “cookie-cutter approach” to starting new businesses. Instead, he helps each company with their unique needs. “As soon as you apply, if we like the concept we begin the process of launching the company,” he says. Stack immediately gives the teams individual challenges, like researching the patents or market size.
 
“The key to making that business successful is getting the team familiar with us and us familiar with them,” Stack says. “It’s really not the same for every business. Different opportunities require different tools.”
 
Stack is raising $1.1 million to invest in the companies. Teams will receive up to a $20,000 investment -- $11,000 plus $3,000 for each team member. FlashStarts in turn gets eight percent equity in the company. Teams can potentially receive up to $200,000 in follow-on funding upon completion of the program.
 
Stack already has identified six potential candidate teams. He is accepting applications until May 10. Stack also is looking for mentors and advisors. FlashStarts has partnered with DecisionDesk to facilitate the application process and recently brought in Jennifer Neundorfer as managing partner.
 

Source: Charles Stack
Writer: Karin Connelly

The final inspections for Cleveland Culinary Launch and Kitchen take place this week, and a customer is planning to come in the next day. The organizers behind Cleveland's first-ever shared commercial kitchen hope that's a sign of good things to come.

The kitchen's goal is to help local food entrepreneurs bring products to market. With so many food truck owners, caterers, urban gardeners and budding chefs making their products in cramped home quarters or church kitchens that aren't always available, the group behind the venture hopes to fill a growing need.

"We're a food launchhouse," says Carolyn Priemer, whose family-owned real estate company is a partner in the project, along with Tim Skaryd of Hospitality Marketing and Sales and the Economic and Community Development Institute (ECDI). "Ours is the only facility in Cleveland that you can pay as you use."

The facility allows entrepreneurs to lease time for $18-24 per hour. The kitchen, which was built by Cleveland State University before it moved to the new student center, has stations for baking, catering, canning, thermal processing and dry packing. The venue also has dry storage and walk-in coolers and freezers.

ECDI is available to offer loans to food entrepreneurs, and the partners plan to offer classes as well. Hospitality Sales and Marketing is a food brokerage, and Skaryd says he will help customers with small-scale canning and labeling.

So far, prospective customers that have expressed interest include food truck operators, an ice cream maker, tea maker and granola bar maker, among others. Priemer says that she's gotten inquiries with only word-of-mouth marketing.

The facility is available for use 24/7, and has its own security system and key card access. Users do not have to sign a lease, but must sign a basic user agreement.

Will it be profitable? Priemer says that will depend on the amount of usage, and right now it could go either way. However, she hopes entrepreneurs will see the value not only in the space, but in networking opportunities with other startups.

"There is no food hub for businesses," she says. "This seems to connect a lot of areas of the food industry here. We're planning to hold networking events to bolster the local food community, including bringing in some guest chefs."

Cleveland Culinary Launch and Kitchen is located at 2800 Euclid Avenue.


Source: Carolyn Priemer
Writer: Lee Chilcote

Think you know Cleveland? Well, thanks to $4 billion in new downtown development, you just might not recognize it anymore. Soon-to-be-completed projects like the Global Health Innovation Center, Convention Center, Ernst and Young Tower, Aloft Hotel and those in PlayhouseSquare have pushed the city to a tipping point in its evolution.

A group of Cleveland furniture makers who have earned national attention for their work plan to open a gallery in the 5th Street Arcades in downtown Cleveland in order to showcase their work.

They believe a downtown gallery can be successful by co-locating with other like-minded retailers, serving the growing base of downtown residents and hosting shows to attract crowds. Thus far, 12 Cleveland furniture designers have signed up to take part.

Soulcraft Gallery was recently named a finalist in the 5th Street Arcades Retail Development Grant Competition, a program that will award grant funding, favorable lease terms and discounted space to five startup retailers.

The other finalists are Bliss Books (indie bookseller), Bright Green Gift Store (organic gifts and home wares), POUR (coffee shop) and Sushi 86 (restaurant). All of the finalists have launched crowdfunding campaigns on Indiegogo to leverage the funding they've been awarded by Charter One Growing Communities.

Downtown Cleveland Alliance and Cumberland Development, which is the master lease-holder for the 5th Street Arcades, are also partners in the unique effort.

"The furniture scene is really growing here," says Peter Debelack of Soulcraft Woodshop, a cooperative woodshop that is located in the Hildebrandt Building in the Clark-Fulton neighborhood. "Cleveland is a good fit for this in part because of how decimated it's been. We have so much amazing industrial space that Joe Schmoe can get for a really low cost. Then there's the wealth of reclaimed materials like industrial salvage. For pure designers, we're also in close proximity to the Amish, who are some of the finest furniture makers in the world."

The 900-square-foot gallery will feature 40 feet of window space on the corridor. It will function as a gallery with regular hours, but will also host special events and openings. Debelack plans to run it along with designer Shelley Mendenhall. Other furniture makers include A Piece of Cleveland, 44 Steel and Rust Belt Welding.

Debelack says the store will contribute to the revitalization of Cleveland and downtown while growing the furniture making scene here. He also wants to nourish the burgeoning maker movement, calling Soulcraft an "open source gallery" where talented amateurs will also be able to proffer their work.

Although no date is set, Debelack expects Soulcraft Gallery to open this summer.


Source: Peter Debelack
Writer: Lee Chilcote

Charles Eisenstat thought he wanted to be a lawyer, but after living in Chicago and D.C. and experiencing their "advanced coffee culture," he realized his true passion lies in brewing the perfect cup of java.

Now, after spending countless hours studying the finer points of law as well as watching baristas make coffee in some of the best coffee shops in the world, the would-be entrepreneur plans to open POUR Cleveland. This new coffee shop in the 5th Street Arcades will offer handcrafted beverages including pour-over-style coffee.

"We won't feature any batch coffee, it will be strictly handbrew or pour-over, individually by the cup," explains Eisenstat, who started his quest by creating a coffee bar at home several years ago. He'd craft the perfect cup before heading off to work at a bank. "We'll be the first shop downtown to feature coffee that way. This is taking a culinary approach to it -- the way people do wine and beer."

POUR was recently named a finalist in the 5th Street Arcades Retail Development Grant Competition, a collaboration between Downtown Cleveland Alliance, Charter One's Growing Communities Initiative and Cumberland Development, the lease-holder for the 5th Street Arcades. Eisenstat has launched a crowdfunding campaign; Charter One will match up to $1,000 of whatever he raises.

In addition to brewing single-origin and estate coffees that would be hard to find in other Cleveland coffee shops, Eisenstat wants POUR to become a center for coffee culture. "We want people to geek out with us and get excited about coffee," he says in his Indiegogo campaign message. He promises "passionate baristas" and low countertops so customers can see how their coffee is being made. He also aims to create a place for coffee education, so classes and workshops will be offered.

Unlike Rising Star in Ohio City, an artisan venue that has a devout following but remains largely a roaster with little seating space, POUR aims to be a comfortable space where office workers and residents can hang out.

If all goes as planned, Eisenstat hopes to open POUR in a retail space with street frontage in July. He plans to buy his coffee from Counterculture in Durham, North Carolina, and the average cup will cost range from $2 to $3. He will launch the operation with little help, but plans to eventually hire six to 10 people.


Source: Charles Eisenstat
Writer: Lee Chilcote

When Jack Bialosky founded Bialosky and Partners back in 1951, he was just 27 years old and fresh out of serving in World War II. His vision and determination as an architect prompted him to follow his entrepreneurial urges and break away from his employer to pursue the clients he wanted to serve.

“He was working for architect Charles Kohlman at the time,” says Jack Bialosky, Jr. “As more work started coming in, Kohlman wasn’t interested in taking it on. So, Dad went out on his own.”
 
The move paid off. The senior Bialosky began with single family residential homes, including some of the first modern homes in Shaker Heights. The homes were known as “Bialosky-Designed Homes” at the time.
 
The practice has expanded over the years to include some of Cleveland’s most notable structures. It began with designing the May Company building in University Heights -- the largest retail project in the country when built in 1951. “That was the beginning of a big commercial practice for us,” says Bialosky, Jr.
 
More recent retail structures include Eton Chagrin Boulevard and Crocker Park. The firm has designed buildings at Ursuline College and Tri-C’s hospitality management program as well as RTA’s headquarters. Bialosky and Partners also has a reputation for its religious buildings, like Cedar Road Synagogue.
 
“We’ve been in business long enough that a lot of our buildings have come down, but a lot of them also have become landmarks,” says Bialosky, Jr.
 
Today, Bialosky and Partners is a family-run business. Jack Jr. joined the firm in 1986 and brother William Bialosky heads up the New York offices. The firm has grown over time to 40 employees in Cleveland and six in New York. The firm has made the Weatherhead 100 three times, and the average tenure of employees is eight to 10 years -- a long time in the industry.
 
Bialosky Jr. credits their success with being a diverse architectural firm. “We were advised that if we wanted to grow we had to specialize or become boutique,” he says. “That didn’t sound like fun, so we bucked that advice, and it’s a good thing we did.”

 
Source: Jack Bialosky, Jr.
Writer: Karin Connelly