Shaker Launchhouse co-founder/marketing Dar Caldwell describes the business accelerator as a "thriving entrepreneurial ecosystem." That ecosystem will welcome 10 new inhabitants this coming fall thanks to funding from Ohio's New Entrepreneurs (ONE) Fund.
 
The $200,000 grant will be "a welcome addition here, allowing us to ramp up even more," Caldwell says. Launchhouse already provides dozens of member companies with all sorts of support, from office space to branding to patenting. Not to mention free coffee and wifi.
 
The ONE Fund grant will allow Launchhouse to seek additional tech start-ups from around Ohio, surrounding states and Chicago. Caldwell says the search won't focus on any particular industry; high growth potential is the key. He expects that Launchhouse will make a formal announcement of the search in April, but notes that the center -- at 3558 Lee Road in Shaker Heights -- has received a steady stream of applications since opening last spring.
 
Launchhouse's members are nothing if not diverse. Current portfolio members include freshbag, an online produce-shopping and delivery service founded by a Case Western medical student and some friends; Cell-A-Spot, which developed a system allowing cell phone users to cut their monthly bills by accepting targeted ads; and Railroad Empire, an online game for Facebook.
 
Operated by Ohio's Third Frontier initiative, the ONE Fund is a “mentorship-driven program [that] focuses on the professional development of young entrepreneurs with the necessary ambition to commercialize new technologies.” In addition to Launchhouse, the fund recently awarded grants to similar programs in Cincinnati and Columbus.
 

Source: Dar Caldwell
Writer: Frank W. Lewis

OnShift Software, a leader in web-based staff scheduling and shift management software for the healthcare industry, closed $3 million in series B financing. The funding will help OnShift meet the rising demand to manage healthcare costs.

OnShift is experiencing fast, significant growth, having achieved a 400 percent increase in annual revenue in 2011. The company’s customer base has surged to more than 600 in the past year. The funding will be used to accelerate OnShift’s sales and marketing strategies and expand its presence in the healthcare industry.

“The healthcare market is under a lot of pressure to get costs under control,” says OnShift CEO Mark Woodka. “Our customers need to manage their labor costs in long-term care and senior living. That collection of customers is primarily doing it manually. This funding will allow us to meet the demand, accelerate our growth and continue to deliver world class, innovative solutions to our healthcare clients.”

With OnShift, providers control labor costs by preventing overtime, managing open shifts, and operating with appropriate staffing levels

OnShift has 36 employees and plans to grow to 55 or 60 this year.

 
Source: Mark Woodka
Writer: Karin Connelly

Tremont West Development Corporation has launched a new Storefront Incubator program that aims to help pop-up shops and startup businesses grow into permanent, bricks-and-mortar retailers, ideally right in the heart of historic Tremont.

Through a competitive process, Tremont West will select a fledgling retailer to occupy the 370-square-foot storefront it owns at 2406 Professor. The retailer will be offered three months of free rent as a sweetener. After the nine month lease term, the startup may renew for an additional three months, yet the goal is to help that business establish a permanent space elsewhere in the neighborhood.

"We've used our storefront successfully for pop-up shops, so this is really for someone of that quality who wants a longer-term run to see if their business is actually viable," says Cory Riordan, Executive Director of Tremont West.

As part of the lease agreement, Tremont West plans to work with the startup to help them grow their business. The nonprofit will links entrepreneurs with available financing, vacant space and other businesses in the community.

The long-term goal is not to compete with existing property owners, but to support new types of businesses, says Riordan. He cites service-oriented businesses as one gap within the neighborhood's retail mix.

Riordan says that supporting small startup retailers is one positive way forward for neighborhoods that are slowly emerging from the recession. "We can help create niche businesses that lead to neighborhood recovery."

Responses to the Storefront Incubator RFP are due by Friday, March 16th.


Source: Cory Riordan
Writer: Lee Chilcote

Someday, perhaps, we'll power our ever-growing number of personal electronic devices with something sustainable like biofuels or sunlight. Until then, the nPower PEG (personal energy device) will do nicely. Tremont Electric's clever gadget converts the motion of walking or running into energy, which it stores in a battery until you're ready to recharge your cell phone or iPod.
 
Cool, right? The only problem to date has been getting hold of one.
 
"The last 18 months have been pretty challenging," says vice president Jill LeMieux. The supplier of the custom battery used in the original design proved unable to keep up. At present there are about 2,000 nPower PEG's in use -- and 5,000 on back order. That's an encouraging but precarious situation for a small company.
 
But things should improve in late March; that's when Delta Systems in Streetsboro begins mass-producing nPower PEGs. Would-be owners' reward for waiting will be greater energy efficiency in the new models -- which Tremont Electric founder and CEO Aaron LeMieux attributes to advances in microprocessors -- and a standardized battery that holds twice the charge of the older ones.
 
Delta Systems has been "very supportive," Jill adds, fronting the tooling costs until sales ramp up. She expects to sell at least 1,000 units per month. In the near future they'll only be available through the website, but some retailers already are expressing interest. The product is a natural for stores serving runners, hikers and campers.
 
"What we've seen since the rollout of this product is overwhelming demand for it," says Aaron.
 
The company hears frequently from users who "love" the PEG, including servicemen in Afghanistan, who report that it has worked "flawlessly." And like the deal with Delta, a military order would be another big, energy-generating step forward for the tiny company. The PEG is also a finalist in the Edison Awards, which will be announced April 26. Tremont Electric also continues to work with universities and others on deploying buoys that would convert the motion of waves into large-scale energy production.
 
Notes Aaron, "It's going to get interesting around here, I can say that much."
 
 
Sources: Jill and Aaron LeMieux
Writer: Frank W. Lewis

Entrepreneurial ventures are often launched out of garages, spare bedrooms and basements. Yet MedWish International, a nonprofit organization that repurposes medical supplies discarded by the healthcare industry for humanitarian aid to developing countries, is probably one of the few that has ever been launched out of a suitcase.

When Cleveland doctor Lee Ponsky visited Nigeria in 1991 and saw the vast level of healthcare need that exists there, he wanted to help in some way. He found a way to do that by carrying suitcases full of medical supplies to Nigeria that would otherwise end up in the landfill. He convinced his friends to do the same.

Ponsky's efforts were the beginning of MedWish International, a nonprofit that now delivers more than 550 tons of medical supplies each year to 97 countries. It operates out of a 40,000-square-foot warehouse that is donated by the Cleveland Clinic. While most of MedWish's supplies are sent in 40-foot shipping containers these days, some are still carried the old-fashioned way -- in suitcases.

"Dr. Ponsky saw the need in Nigeria as well as the waste going into our landfills and thought, 'There must be a way to bridge the gap between our surplus and their scarcity,'" explains Matthew Fieldman, Director of Development for MedWish International. "So he created an organization that is saving the environment in Northeast Ohio as well as helping an international cause."

MedWish was recently selected as one of five organizations competing for $100,000 in the Toshiba Tech Makeover challenge. Vote by clicking here.


Source: Matthew Fieldman
Writer: Lee Chilcote

Major corporations have long conducted sophisticated research to figure out what kind of consumer you are. Now, a new initiative that is being launched by two young city residents aims to find out what kind of Clevelander you are -- and use the results to engage citizens and drive policy change in the region.

By surveying residents' attitudes towards living in Northeast Ohio, as well as our preferences for urban amenities, the creators of the Clevelander Report hope to place useful information in the hands of policymakers shaping our region's future.

"For all of the studies that have been done on our city, very few of them focus on citizens," explains Hallie Bram, a Detroit Shoreway resident who co-founded the Cleveland Report with Eric Kogelschatz. "Our goal is to create the most comprehensive study of Clevelanders that's ever been completed. We want to use that information to bridge the gap between organizations, government and citizens, and help our policymakers to make informed decisions."

The Clevelander Report surveys residents on such topics as whether or not they are natives, boomerangs, expatriates or have relocated from another city; where they currently live; which cultural institutions and businesses they have visited; their level of interest in urban living; and their attitudes towards the city.

Bram says that the survey has been well-received so far, garnering over 500 responses since it launched one week ago. She and Kogelschatz plan to continue the Clevelander Report through the summer, and then compile an Executive Summary that can be provided to residents as well as policy makers.

Bram and Kogelschatz are the founders of TEDxCLE, a popular annual event that features curated talks by some of Northeast Ohio's biggest thinkers. This year's event will take place at the Cleveland Museum of Art on Friday, April 20th.

Take the survey here.


Source: Hallie Bram
Writer: Lee Chilcote

Metheny Weir, a home remodeling business which was originally launched out of a Shaker Heights basement, recently expanded to a spacious storefront on Larchmere. The growth spurt is the result of the company inking last year a deal to become Cleveland's only licensed retailer of Annie Sloan Chalk Paint, a hot new product that's generating a buzz in the interior design world.

Metheny Weir co-owner Sue Weir says that the innovative product allows home remodelers to paint furniture and other surfaces without cleaning, sanding or priming -- you just put your brush in the can and start painting.

"Our customers like it because they don't have to move their armoire out of the living room to paint it," says Weir, who co-founded the company with her friend, Kim Metheny. "It's not a big production to change the look of their furniture."

Chalk Paint is low in volatile organic compounds (VOC's) and considered green. Weir says that she recently sold $700 of the new product in a single week.

The paint has also attracted new business for Metheny Weir, which specializes in custom painted finishes and has become known for stylish makeovers of older homes and furniture. "We're redoing a kitchen for someone that fell in love with the Annie Sloan product but didn't want to do the work herself," says Weir.

Weir and Metheny are hosting workshops out of their Larchmere storefront to educate homeowners on how to use the paint. The uptick in interest in home remodeling is partially due to the stalled housing market, Weir says, a trend that has spurred many homeowners to reinvest in their homes and furnishings.

In the next several months, Weir and Metheny will also travel to Chicago and New Orleans to meet Sloan in person and to participate in product demonstrations.


Source: Sue Weir
Writer: Lee Chilcote

In this video, we join Cleveland city councilman Matt Zone on a guided tour of his favorite neighborhood: Gordon Square Arts District. Stops along the way include duoHome, Sweet Moses, Yellowcake, Gypsy Beans, 1point618, Capitol Theatre, and XYZ the Tavern. Shot by Fresh Water videographer David Wester, the short film illustrates why Detroit Shoreway is fast becoming one of the most dynamic neighborhoods in Cleveland.
 

Rock the Catwalk, a new fundraiser being introduced by the Women's Leadership Council in support of United Way of Greater Cleveland, will highlight Cleveland's trendiest local fashion boutiques.

Yet it will also put a face on the real human need that unfortunately exists among formerly homeless, unemployed women in our region. The event will highlight the nonprofit agencies that help these women dress for success while also engaging the female clients themselves as runway models.

"Rock the Catwalk will feature all local boutiques and models, including Sandy Pianalto from the Federal Reserve Bank and Erin Kennedy, the new co-anchor of WKYC's morning show," says Jenna Snyder, Marketing Director for United Way. "It will also feature two clients from Transitional Housing Inc., a United Way member organization that helps women transferring out of homelessness."

Local boutiques which are participating in the first-ever Rock the Catwalk event include Amy's Shoes, Anne van H., Cindy Halle, Dredgers Union, Evie Lou, Girl Next Door, Kilgore Trout, Marta Glazen and Saks Fifth Avenue. The event takes place on Thurs., March 29th at the Rock and Roll Hall of Fame and Museum.

The Women's Leadership Council inspires, educates and engages women to become actively involved in supporting United Way of Greater Cleveland.

Tickets start at $75 and include hors d'ouevres, cocktails and museum access.


Source: Jenna Snyder
Writer: Lee Chilcote

Two years ago, cyclist Mike Hulett traded legal briefs and billable hours for bike stands and Allen wrenches when he opened the Broadway Cyclery, a utility-focused bike shop in downtown Bedford.

Recently, he purchased the historic Marshall Building and moved his business into a larger, renovated storefront. He's slowly restoring the structure, originally built to house a drugstore and boasting Terrazzo floors and 15-foot ceilings, to its original beauty.

Hulett says that his business is unique because he carries niche products that aren't available at other shops. "We're a Brooks Dealer of Excellence; we sell leather bike seats from a company that's been around since 1866," he says. "When you see people riding around the country, usually they have a Brooks seat."

The Broadway Cyclery also carries a wide assortment of cargo, touring and commuter bikes, kickstands and bags for the practical, commuting cyclist.

Hulett chose downtown Bedford because of its unique, local businesses and central location near highways and bike trails. "We're right by the Bedford Metroparks," he says. "From here, you can bike to Chagrin Falls, Rocky River or Akron. All trails intersect in the area and that makes it a fantastic resource for cyclists."


Source: Mike Hulett
Writer: Lee Chilcote

When it comes to making challenging New Year’s resolutions, Josh Schwarz knows how to set the bar high and deliver results.

The Case Western Reserve University sophomore is a computer science major, and his  resolution for 2011 was to create one Facebook application a week -- 52 in all. To his credit, Schwarz met the goal -- on time and on target.

“I’ve always been into computers,” Schwarz explains. “I’m constantly wanting to innovate, and I realized that the Facebook platform has plenty of space for lots of new ideas.”

Schwarz categorizes his 52 apps into two segments -- sharing data in a new way and viewing data in a new way.
His first app, Relationship Mania, enables users to organize their friends based on their relationships: married, single or engaged, for example. With Email Grab, you can set up a simple way to collect email addresses from visitors to your website. Using the City Friends app, you can group your friends by their current locations and plan social events accordingly.

According to Schwarz, Cartoonize Me is the most popular app. “It transforms your photos into colorful cartoons,” he says. Next up in popularity is the Mutual Friends Matrix, designed to tell users which of their friends is most popular.

Schwarz’s apps can be accessed through his website at www.amagit.com.

His project has enabled him to meet many entrepreneurs and people in the technology business in Northeast Ohio and beyond. “This has been a great learning experience,” Schwarz says. “I’m determined to start my own company before graduating, so I’m aggressively pursuing technology, business and entrepreneurship experiences.” To that end, in addition to his classes, he’s an intern at JumpStart, Inc.

Next up for Schwarz is working on a service exclusively for Case students. “I want to build something that provides them recommendations for books, events, and jobs they might want to apply for,” he explains.


Source: Josh Schwarz
Writer:  Lynne Meyer

How would you spend three days on a bus with strangers? If reading, watching movies or sleeping are among your top choices, then the Startup Bus is not for you.
 
The destination is the South By Southwest (SXSW) technology conference in Austin, Texas, but that's almost beside the point. Startup Bus is all about the journey -- three days on the road, brainstorming and launching new companies with fellow hackers (programmers), hipsters (designers) and hustlers (entrepreneurs). What started as a lark in 2010 is now a growing movement that's spread from San Francisco to other American cities, and even Europe.
 
“It's not about the companies that come out,” says Greg Svitak of Hyland Software, who rode the Cleveland Startup Bus last year and is serving as the “conductor” of this year's Ohio trip, which leaves from Columbus on March 6. It's really about the relationships that emerge as the 30 bus riders pitch their ideas, then coalesce into small teams around the best few. Svitak knows of three startups in the works in Cleveland right now that resulted from friendships formed on last year's ride. And that's the larger goal, Svitak says -- building an international community of tech-savvy entrepreneurs, a few local connections at a time.
 
As conductor, Svitak chooses the riders, but based on their resumes, not their ideas. Even he won't know who's pitching what until the wheels are rolling. He'll then choose the two best startup ideas that emerge on the way to Texas. And at SXSW, the finalists from the 10 buses expected this year will present their concepts to venture capitalists. Last year, seven were offered funding, including Mom and Pop Co-ops, which reduces costs for small retailers by combining their buying power. Two of its three founders are from Northeast Ohio.
 
To apply for this year's Ohio Startup Bus, register at the website. From March 6 through 9, you can follow the progress at StartupBus.tv.
 

Source: Greg Svitak
Writer: Frank Lewis

Mahalls 20 Lanes, a vintage Lakewood bowling alley that's been owned by the same family since it was built in 1924, is being fixed up by new owners. Joe Pavlick and Kelly Flamos are renovating the historic venue, which features two 10-lane bowling alleys, a billiard room, several bars and a kitchen, and also plan to add live music.

"We're still working out the specifics of our plan, but we want to restore Mahalls to its former glory," says Pavlick, a former corporate attorney who bought the building with Flamos, his sister-in-law, and other family members. "Essentially, this is one big family turning it over to another big family, 80 years later."

John Mahall was the first owner of Mahalls, which was originally two buildings and featured an upstairs dance hall. In the 1950s, he annexed the adjacent building and turned into a billiards hall. Until a few months ago, Mahalls was owned by John's son Arthur Mahall and managed by John's grandson Tom Mahall.

Although Mahalls struggled financially for several years before Pavlick and Flamos bought it, the new owners say they'll add fresh appeal to the venue by revamping the menu and adding live music. They hardly plan to touch the historic, vintage character of the interior, however. Unlike newer bowling alleys, Mahalls still requires scoring by hand and is noticeably devoid of overhead televisions.

In another nod to tradition, Pavlick and his wife Emily plan to move into the upstairs apartment -- just as three generations of Mahalls did before them.


Source: Joe Pavlick
Writer: Lee Chilcote

Steven Peffer cannot easily explain why he calls his new record shop House Frau; he just likes the German-sounding name, which reminds him of dark, wood-paneled bars and frothy steins of beer. Yet the entrepreneur has a crystal-clear view of why he's opening a vinyl record store in a digitally-oriented economy: Shoppers are hungry for tangible shopping experiences, he says, and there's a viable niche market for new and used records.

"Sure, you can fire up a website, sit around in your boxer shorts and look for music on your computer. But I think people want more of an experience," says Peffer, a sound engineer at Now That's Class, a punk club on Detroit Avenue near the Lakewood border. "People took shopping for granted in the past, but now I believe bricks and mortar stores can be successful because they stand out."

Peffer says House Frau will sell new and used records featuring selections of punk, synth, jazz and blues. The store, which opens this month, will also offer curated records from plenty of other genres. Peffer recently finished building record crates and was amazed at how much good stuff he was able to pack into the cozy, 434-square-foot shop. (You'll have to bring your own German beer, though.)

The launch of House Frau continues the renaissance of indie shops on Cleveland's near west side, which has seen dozens of new stores open in the last few years.


Source: Steve Peffer
Writer: Lee Chilcote

As the number of local bike commuters continues to increase, so too does the number of savvy entrepreneurs who serve and service them. In recent years, a mini boom of bike-based businesses has developed across Northeast Ohio, including frame builders, messenger bag makers, rickshaw drivers and an indoor bike park that attracts visitors from throughout the Midwest.

Grace Brothers, a seven-acre nursery and garden store in Broadview Heights that previously relied upon the suburban market, is vying for a new, urban market. This month, the family-owned company will open a gardening, farming and pet store in the growing Detroit Shoreway neighborhood on Cleveland's west side.

"We were selling to the new home market and kind of living the bubble, but then it evaporated over the last four years and things came to a standstill," says Kevin Grace, who co-owns the company with his brother, Don Grace. "We saw the revitalization happening on the near west side, and attended the GardenWalk Cleveland and saw how people take an interest in their yard. We definitely believe there's an underserved market here that's grown in the last few years."

When the dust settles on their renovation work, the pair will open Grace Brothers Farm, Garden and Pet in a vacant storefront at W. 65th Street and Fir Avenue in the Cleveland EcoVillage. The location is a quarter mile from the Gordon Square Arts District, the centerpiece of a multimillion dollar neighborhood redevelopment. It's also just a few blocks from Zone Recreation Center, whose exterior grounds are being rebuilt into a sustainable, family-friendly park.

Grace Brothers will sell seeds, soils and fertilizers for backyard gardeners (including many organic products). The store will also offer herbs, vegetable plants and fruit trees. Budding urban farmers can purchase chicks here each spring, as well as support products such as chicken and rabbit feed and bird seed. Finally, Grace will market some cost-effective brands of cat and dog food, too.

"We'll be selling organic mulches and other materials that you can't find in Home Depot and other big box stores," says Kevin Grace. "We will also be offering classes in raising chickens, and as part of the fee, you'll get three chicks."

Having watched the urban gardening market soar in other cities, Grace believes Cleveland has similar potential. "Can we make any money on it? I'm hopin'."


Source: Kevin Grace
Writer: Lee Chilcote

Public Square Group, a nonprofit organization that promotes skateboarding and skate parks as tools for redeveloping urban neighborhoods, engaging youth in positive activities and promoting active lifestyles, is opening an office and indoor skatepark in the MidTown neighborhood of Cleveland.

The new office and skatepark, which has been dubbed "Skate Kitchen," will be located in the historic Cadillac Building at E. 30th and Chester, adjacent to Jakprints. Skate Kitchen will be open 24/7 for higher-level donors, as well as for special events, contests and lessons.

"We wanted to move our offices into Cleveland because so many of our projects and members are in the city," says Vince Frantz, Executive Director of Public Square Group. "For our higher-level donors, instead of a mug or a sticker, they'll get a key to the Skate Kitchen. After the kids are in bed, they can come down and skate for a few hours."

The move will allow the Public Square Group to further expand its portfolio of projects in Northeast Ohio, says Frantz. He estimates that there are 10,000 active skateboarders across the region. The City of Cleveland is already ahead of the curve in embracing skateboarding as a tool for urban development, he says, citing as examples the skateboard parks planned in the Flats and Slavic Village.

Public Square Group also will continue to run the Skate Kitchen Truck, which pops up in various Cleveland neighborhoods offering mobile skate spots and demos.


Source: Vince Frantz
Writer: Lee Chilcote