Regional Economy

knowta exceeds goal for follow-on funding, will improve and expand
Knowta recently raised more than $300,000 in angel investments, exceeding its goal of $250,000 to roll out the next phase of its software solution. The LaunchHouse company offers free or discounted printing at libraries in exchange for accepting advertising on the bottom of the printed pages. A percentage of the revenue generated from the full-color ads is then returned to the libraries to offset their costs.
 
Initially, founder Ryan Clark and his four partners tested Knowta’s usability at CWRU’s Kelvin Smith Library during the 2012-2013 school year. They looked at three factors: Would library patrons use the service; would it work well in the university environment and provide value to the university; and would it deliver desirable results to advertisers. “We got an affirmative response on all three,” says Clark.
 
The next step is to improve upon the software. Clark says the investments, 90 percent of which came from individual Northeast Ohio investors, will be used to roll out the next phase. “There are a number of features we want to add to make it more attractive to our advertisers and make it more robust,” he says. “We’re excited about it. We’ve received tremendous feedback from users at Case.”
 
Knowta currently is in talks with five other universities in Northeast Ohio, and Clark says they are open to talking to any school that is interested in their product. Their goal is to secure five to six new schools this year.
 
Knowta currently has 25 advertisers in a range of industries, most of them local. Clark’s goal is to tap into the national market. The most popular ads are for the food and beverage industry.
 
Knowta has two full time employees, one paid intern and uses four to five contractors to build out the second phase of software development. The company plans to hire a lead developer/solution architect by the end of the year.

 
Source: Ryan Clark
Writer: Karin Connelly
endowment fund to boost midtown group's good works
The two square miles of real estate between downtown Cleveland and University Circle are bursting with development. A local nonprofit has established a fund to ensure that work continues to flourish.

On June 20, economic development corporation MidTown Cleveland, Inc. announced the creation of the MidTown Cleveland, Inc. Endowment Fund at the Cleveland Foundation. The fund, under the foundation's guidance, proposes to build a sustainable revenue source to secure continued activity in the burgeoning district. This will include promotion of the health-tech corridor, a three-mile expanse of hospitals, business incubators, educational institutions and high-tech companies situated within MidTown.

The growing tech corridor isn't the only project the fund will support, notes MidTown chairman John Melchiorre. The group plans to leave other "footprints" on the community as well, be they demolishing old buildings, planting flowers along Euclid Avenue or helping transform distressed properties into job-creating enterprises.

"The Cleveland Foundation has been a leading supporter of the revitalization of Midtown, so this is just the latest way our two organizations have joined forces for the betterment of that neighborhood," said Kaye Ridolfi, senior vice president of advancement at the Cleveland Foundation.

Founded by Cleveland businessman Mort Mandel and others some 30 years ago, MidTown Cleveland has helped develop the area into a business district home to 600 companies and 18,000 employees. Executive director Jim Haviland views MidTown as part of the city's renaissance, and believes the fund will sustain the region for decades to come.

"It helps us to continue the role we play" within the neighborhood, says Haviland.

 
SOURCES: John Melchiorre, Jim Haviland, Kaye Ridolfi
WRITER: Douglas J. Guth
pgh praises cle healthline, wants one of its own
In a Pittsburgh Post-Gazette story titled “Cleveland’s HealthLine bus route could be a model for Pittsburgh,” writer Jon Schmitz praises Cleveland for its dedicated route that connects downtown with the Cleveland Clinic.
 
The new line transformed a 46-minute trip along the nine-mile corridor into a route with its own reserved lanes, and through traffic lights that are programmed to give the busses priority. Fares are paid via vending machines at the 40 stops along the route. 
 
“The $197 million project literally remade Euclid Avenue, replacing ancient underground infrastructure and crumbling sidewalks, reconstructing the road surface, adding station kiosks and landscaping medians between the stops.”
 
Schmitz goes on to detail other aspects that make the line a benefit to both riders and the surrounding community.

Enjoy the full piece here.

eaton corp praised for green building
In a GreenBiz story titled “Megatrends: The power behind Eaton’s global green growth,” writer Anna Clark explores Cleveland’s history as a major manufacturing center since the time of John D. Rockefeller and its subsequent decline. 
 
But one of the city’s largest companies, Eaton Corp., is a proponent for efficiency, reliability, safety, and sustainability that is leading to a potential “green renaissance” in the Rust Belt.
 
The company has built a larger campus to focus on more growth locally.  Their commitment to green initiatives was a primary focus during the initial build.
 
“Consistent with Eaton's commitment to sustainability, the new building was designed to consume 40 percent less energy and 40 percent less water than a conventional building of smaller scale. The rainwater reuse system is expected to significantly cut water consumption, and a high-efficiency glass-curtain wall system maximizes the use of daylight while optimizing thermal comfort within interior spaces. Eaton Center eventually will accommodate more than 1,000 of the 1,800 Cleveland-area employees, and is expected to earn its LEED certification within the next few months.”
 
Enjoy the full story here.
 
writer discovers cleveland is nothing like stereotypes
In a Post-Searchlight story titled “Cleveland -- from gritty to gleaming,” Dan Ponder shares his pleasant surprise upon discovering that Cleveland is far from the dark and dismal stereotype so prevalent among the uninformed.
 
Ponder writes how he came to the city on a dreary and rainy day, which only served to reinforce his opinion of what our city is like. But once he arrived downtown from his drive from the airport, those opinions quickly changed.
 
“From that point on, everything we saw and did was a pleasant surprise," he writes. "Cleveland, once the fifth largest city in the United States, is now the 45th largest city. However, they have literally transformed their downtown area into a bustling area full of public parks. It was clean and felt safe. There were interesting restaurants everywhere and downtown seemed alive -- full of people living in converted loft apartments.”
 
Ponder goes on to talk about the various sports stadiums, the new convention center, and many other attractions that make Cleveland special.
 
Read the full article here.

bizdom and launchhouse team up accelerator programs for region's gain
Both Bizdom and LaunchHouse received hundreds of entrepreneurs applying for their respective accelerator programs this year. LaunchHouse received a record 115 applications for 10 spots in its 2013 LHX accelerator program, while Bizdom already has seen more than 100 applications this year from all over the country.

Both organizations each received $200,000 from Ohio’s New Entrepreneurs (ONE) Fund earlier this year. So, Bizdom and LaunchHouse decided to collaborate in investing in 20 technology startups this year.
 
"We feel it is important to collaborate with every organization that is helping to revitalize the region and LaunchHouse is certainly one of these organizations,” says Bizdom leader Paul Allen. “When we found out that Shaker LaunchHouse had also received ONE Fund support for its accelerator we reached out to see how we could closely collaborate to optimize the experience for all founders and to show the startup community that we are coordinated in our efforts.”
 
The organizations plan to share mentoring sessions, jointly host classes and open up their office spaces to each other’s entrepreneurs. “We have a strong network, and so does Bizdom,” says LaunchHouse CEO Todd Goldstein. “So why not collaborate to build a successful business community in Northeast Ohio?”
 
The whole idea is to foster the growth of Northeast Ohio as a hotbed for startups and a place that supports entrepreneurs. “Really, we are about the accelerator and the entrepreneurs working together to build a great community,” says Goldstein. “We’re not on an island by ourselves. We’re all out to build successful entrepreneurs in Northeast Ohio.”
 
Allen agrees that the collaboration will help the entrepreneurs as well as continue to attract startups from outside the region. “Participants will be able to socialize with a greater number of peers and hopefully they will be able to learn from one another,” he says. “Collaboration strengthens the Northeast Ohio entrepreneurial community because it gives us an opportunity to articulate a consistent and more powerful message within and outside the region about the opportunities and resources that exist here."

 
Sources: Paul Allen, Todd Goldstein
Writer: Karin Connelly
crowdentials takes the legwork out of equity crowdfunding compliance
As an entrepreneurship/business management senior at Ohio University, and the president of the school’s Entrepreneurship Club, Richard Rodman has started two successful companies during his studies. Most recently, he noticed the need for some guidance in the crowdfunding trend.

So Rodman first started 530Funds in November 2012, a search engine and news site for the crowdfunding industry. “It was really hard to sift through Google to find the right platform,” he says.

But Rodman quickly realized the real need was in helping users navigate the forthcoming SEC regulations on equity crowdfunding and make sure they are compliant while raising money for their cause. Individuals, investors and crowdfunding platforms must comply with these regulations.
 
That’s when Rodman came up with Crowdentials. “Crowdentials is regulatory software for the rules SEC has created,” he explains. “It’s a simple web form -- kind of like TurboTax -- where you can cross-reference to see if you comply.”
 
Crowdentials helps take the legwork out of fundraising. Through the site and one form, investors, businesses and crowdfunding platforms ensure they are in compliance while raising money or investing in a new company. “We take care of compliance; you take care of business,” says Rodman says. “Businesses shouldn’t have to waste their time researching all the regulations.”
 
Crowdentials was accepted into the inaugural FlashStarts program, run by Charles Stack and Jennifer Neundorfer, this summer. Rodman says there was an “instant connection” in the interview process. “I think it’s going to do a lot,” he says of the program, adding that he enjoys working with the mentors and interns on hand and bouncing ideas off the other entrepreneurial teams.
 
Rodman has two partners.

 
Source: Richard Rodman
Writer: Karin Connelly
fifth third to roll mobile bank into underserved communities
Fifth Third Bank wants Northeast Ohioans who might be anxious about walking into a financial institution to get on the bus.

The bank has partnered with local community organizations to bring the Financial Empowerment Mobile, or eBus, to nine locations in the region from June 19 to June 29. The eBus is a rolling classroom providing credit counseling, financial literacy, home ownership assistance, and access to banking services directly to where people live, says Rob Soroka, retail executive at Fifth Third.

"People coming on the bus are struggling with their finances," says Soroka. "This is a place where they can get unbiased advice and direction to improve their financial life."

The mobile classroom is equipped with computer terminals for instructor-led or self-directed home ownership and credit counseling programs. Fifth Third community development officers, mortgage professionals and retail banking staff will be riding along to offer financial advice in a relaxed atmosphere.

Now in its ninth year, the theme of this year's program is realizing financial dreams, be it owning a house or starting a business, says Laura Passerallo, Fifth Third director of marketing. The eBus venture, which counts the Call & Post Foundation and The Word Church among its partners, will serve upwards of 1,600 people this summer.

Fifth Third will also hold large community events to introduce people to the eBus. A June 28 get-together at the Hispanic Business Center aims to provide a festive atmosphere for folks curious about what the 40-foot-long bank-on-wheels provides.

"People who need help may be intimated to come into a traditional financial center," says Soroka. "With the eBus, that intimidation goes away. That does some good for the community."

 
SOURCES: Rob Soroka, Laura Passerallo
WRITER: Douglas J. Guth
zuga medical receives fda approval, jumpstart investment for dental implant system
Zuga Medical, a medical device company, recently received a $250,000 investment from JumpStart to launch its dental implant system. In April Zuga received FDA approval for its system, which allows a general dentist to perform implants using a screw, a procedure previously done only by oral surgeons.
 
“Our patent-pending technology makes it simpler, easier and more cost-effective for both the dentist and the patient,” says Zuga CEO Steve Cornelius, who met the company’s founder and CSO, Chan Wang, a year-and-a-half ago through BioEnterprise and joined the board of directors. He then became CEO. With 15 years of experience in the dental industry, Cornelius was intrigued with Wang’s product. “Chan had a vision of making things simple for general dentistry.”
 
Zuga will use the JumpStart investment to conduct a soft launch with eight to nine local dentists. Those dentists will take a training course on placing the implants next month. “We’re using the local soft launch in Cleveland to prove out our business model and raise the next round of investments,” Cornelius says. “Our vision is to create a dental company right here in Cleveland.”
 
As Zuga grows, Cornelius hopes to hire three to four sales reps, a marketing person and a customer service rep by the end of the year.
 
Zuga Medical has also received investments from the Cuyahoga County North Coast Opportunities Fund and the Innovation Fund.

 
Source: Steve Cornelius
Writer: Karin Connelly
award-winning chef proud of his cleveland roots
In an Aspen Times article titled “Hello, Cleveland! Best New Chef Jason Vincent represents hometown,” Stewart Oksenhorn writes that while Cleveland may have its own culinary superstars living and working in the city, it also has some that profess their love for the great city while sharing their talents elsewhere.
 
“Vincent also is a huge fan of his hometown, Cleveland, going so far to call it the greatest city in the country. Vincent is aware that this is a minority opinion. Growing up there, he assumed that no one outside of Cleveland had any idea of what was going on in the city. So Vincent was amazed to learn, in 1998, that a local chef, Michael Symon, who had earned a following at the Caxton Cafe and then opened Lola, was named as one of the best new chefs by Food & Wine magazine.”
 
This year, Vincent joined Symon and Jonathon Sawyer as one of Food & Wine's Best New Chefs.
 
“The chefs were maybe the scariest people I’ve ever met. But also kind and patient,” Vincent said. He recalls being chewed out by Shannon for some misdeed. “He said to me, ‘Do you know how big my world is?’ He was telling me I need to use my brain, not use him as a crutch. That statement was really influential.”
 
Read the full story here.

nytimes writer reflects on 'big five' orchestra designation
In a New York Times story titled “The Big Five Orchestras No Longer Add Up,” James R. Oestreich explores days of old when the newspaper would refer to the premier orchestras of the day (Boston Symphony Orchestra, Chicago Symphony Orchestra, Cleveland Orchestra, New York Philharmonic, and the Philadelphia Orchestra) as the "Big Five."
 
Other city’s representatives, namely the San Francisco Symphony, would argue against the term claiming it to be outdated. However, as a term of journalistic creation, it tended to stick despite the strength and quality of those not included in the “club.”
 
The Times was by no means alone in using it. At least by the mid-1960s, soon after I had started to follow classical music, the term had become common coin in discussions of the American orchestral scene. And it proved remarkably persistent, even as the mighty handful started to suffer setbacks and other orchestras grew in budget and artistic stature, notably the St. Louis Symphony, the Los Angeles Philharmonic and the San Francisco Symphony.”
 
The piece goes on to detail the struggles all orchestras are facing in modern days and touches upon Cleveland’s own orchestra and steps they have taken to remain relevant.
 
Enjoy the complete feature here.

local writer questions cleveland development boom
In a Rust Wire blog post titled “Questioning Cleveland’s Undying Faith in Development,” local writer Angie Schmitt discusses the appropriation of funding for public projects all in the name of “development.”
 
“We’re just emerging from the biggest real estate bust in a generation, but the lust for development doesn’t seem to have abated. Economic development officials have taken to touting how downtown Cleveland, or Cleveland, is currently seeing $5 ($7, $12?) billion -- as if that were indisputable evidence the city is rebounding.”
 
The story goes on to highlight one argument that public funds could be better used to help the communities this “development” is most affecting while shedding light on different trains of thought.
 
“I was complaining about this on Twitter recently and one of my followers asked: Is Cleveland growing? To which I replied: Ha! His response was: If Cleveland isn’t growing, it’s not really development, “but a spatial change in active/abandoned land distribution.” Which I thought was a pretty compelling point.”
 
Check out the full piece here.

great lakes' efforts to brew 5000-yr-old brew covered by times
In a New York Times feature titled "For Its Latest Beer, a Craft Brewer Chooses an Unlikely Pairing: Archaeology," writer Steven Yaccino covers the efforts by Great Lakes Brewing Co. to replicate a 5,000-year-old Sumerian beer.

"By contemporary standards, it would have been a spoiled batch here at Great Lakes Brewing Company, a craft beer maker based in Ohio, where machinery churns out bottle after bottle of dark porters and pale ales," the article says. "But lately, Great Lakes has been trying to imitate a bygone era. Enlisting the help of archaeologists at the University of Chicago, the company has been trying for more than year to replicate a 5,000-year-old Sumerian beer using only clay vessels and a wooden spoon."

“How can you be in this business and not want to know from where your forefathers came with their formulas and their technology?” co-owner Pat Conway is quoted in the piece.
 
Because no detailed recipes have been found, attempts to recreate it have been based upon cuneiform texts and an ancient poem, Hymn to Ninkasi, that hints at the recipe.
 
Great Lakes has no plans to sell the beer, but rather use it as an educational exercise. The brewing vessels are a popular addition on the guided tours of the brewery, and they intend to showcase the Sumerian beer at events in Cleveland this summer.
 
Read more about the process here.

next city leaders ask if cle, other cities can diversify beyond the 'cupcake economy'
Young urbanist leaders who were in Cleveland this week for Next City's annual Vanguard conference were asked a provocative question about this city's future. With new development activity happening in neighborhoods across a city that still is devastatingly poor, how can we do a better job of ensuring that these projects will benefit our poorest residents?

"I'm a little concerned that as we build projects, we're creating a city for yuppies and a city for everyone else," commented Ari Maron of MRN Ltd. in a presentation to 40 leaders from across the U.S. and Canada engaged in fields such as urban planning, entrepreneurship and sustainability. "How many cupcake and yogurt shops can a city sustain?"

Heads nodded and attendees laughed as Maron admitted the challenge was as much to himself as others, since MRN owns three of the city's most prominent new developments, E. Fourth Street in downtown Cleveland, Uptown in University Circle and property along W. 25th in Ohio City.

Several attendees noted that they were surprised by how few of the city's larger developments have translated into prosperity for surrounding neighborhoods. Sitting in the newly-built Museum of Contemporary Art at University Circle, leaders asked how that area's success could benefit its low-income neighbors.

Maron cited the Greater University Circle Initiative and local hiring and procuring efforts by University Hospitals and others. MRN has committed to hiring local residents for its projects, and the company now employs 285 city residents.

"When people from the neighborhood work here, they take ownership of the project because it's their neighborhood," he said, citing DoubleTree Hotel as one example of a University Circle project that employees many local residents.

An attendee from Chicago noted that Cleveland appears to be behind in adding bike-friendly infrastructure. He cited the recent addition of separated bicycle lanes to Surmac Avenue in Chicago as a game-changing project for his city. "Cleveland needs to do one really good pilot project," said the attendee.

Next City is a national nonprofit media organization that organizes the Vanguard conference to highlight best urban practices and develop young urban leaders. Updates from the conference are being posted on Next City's daily blog.


Source: Next City, Ari Maron
Writer: Lee Chilcote
dan gilbert pledges $1.5m to lure top grads
In a The Detroit News business section feature titled “Gilbert pledges $1.5M to bring college grads to Detroit, Cleveland,” Michael Martinez shares how Quicken Loans founder and chairman Dan Gilbert has pledged big bucks to lure top college grads from around the country to work in downtown Detroit and Cleveland over the next five years.
 
“We’re thrilled to bring a host of the country’s top college graduates to support Dan Gilbert’s vision to revitalize Detroit and Cleveland,” said Andrew Yang, founder and CEO of Venture for America. “Our Fellows have been hard at work helping to build businesses in Detroit this past year. With this commitment, Venture for America will be in Detroit and Cleveland the next five years and beyond.”

Martinez goes on to highlight Gilbert’s commitment to Detroit and Cleveland where he is actively involved in business in both cities.
 
Read the full story here.

cleveland among '20 best beer towns in usa'
In this feature from the travel publication Matador, Cleveland is hailed as one of the 20 best beer towns in America.
 
"Craft beer in America is more popular than ever," the article states at the outset. Not only that, it's becoming increasingly common for travelers to book trips around craft beer and brewery tours.
 
Cleveland is fast becoming a beer-lover's destination thanks to old and new breweries.
 
"Across the river from downtown lies Great Lakes Brewing, a well-respected brewery with strong Midwest pride."

"Hoppin’ Frog Brewing in nearby Akron made a splash on the craft scene in 2008 by winning a gold medal at GABF in the hotly contested Russian Imperial Stout category. Odd name, great beer."

"The Brew Kettle sits just north of the I-80/I-71 intersection, which makes this brewpub a dangerously convenient pit stop for road warriors."

Drink up the rest here.

writer shares his love for cle as a vacation destination
In a Huffington Post Travel blog post titled “Instagram Tour: Five Reasons to Heart the Rust Belt, Courtesy of Cleveland,” Jason Clement highlights his recent mini vacation/sabbatical to Cleveland.
 
“Long story short: I get Rust Belt cities... and I think they get me. While a blanket on the beach is certainly nice, I look to places like Cleveland when I need a creative reboot, not just a cocktail with an umbrella in it. So before I pack my bags (again), I thought I'd share five reasons why I love this region so much.”
 
In the post, Clement goes on to highlight what it is about cities like Cleveland that recharge his batteries, including: space to dream big, exciting street art, good building stock, and a can-do attitude.
 
Check out the complete post here.

cle discussed in book excerpt on how cities fix broken networks
In a Next City feature titled “The Post-Hero Economy,” writers Jennifer Bradley and Bruce Katz share an edited excerpt from their upcoming book "The Metropolitan Revolution."
 
While the book (and Next City feature) does not solely focus on Cleveland, it does pay a fair amount of attention to our city when it comes to economic development.
 
In an effort to boost the economy the Cleveland Plain Dealer offered a solution. “Talk to civic leaders, entrepreneurs, academics, builders, business people,” then-editor Doug Clifton wrote in 2001. “They all agree: Greater Cleveland must get serious about creating and backing a master plan for economic development or face economic extinction.”
 
"The problem was, 'Greater Cleveland' didn’t exist. There was no single, overarching entity charged with creating a plan for Cleveland and its neighbors in the northeast corner of Ohio -- and just as importantly, it was hard to imagine any single entity that could take on the task."
 
Read the rest of the feature story here.

techpint lets entrepreneurs and investors share ideas over beers
When Paul McAvinchey moved to Cleveland in April 2012 with his wife Rebecca to lead product innovation for MedCity Media, the seasoned entrepreneur was impressed with the entrepreneurial community here.

“When I got here, I was really excited to see all the startup activity going on,” McAvinchey says. But the native of County Tipperary, Ireland, who also lived in Chicago, Munich and Dublin, was surprised that there were no informal events bringing all the startup organizations together. “I was used to having events where all the disparate groups came together to share their thoughts and ideas.”
 
So McAvinchey set out to start TechPint, a casual gathering for entrepreneurs and investors in internet technology. He made hundreds of phone calls and brought the area’s startup organizations together to plan the first TechPint event on Thursday, June 20 at 5:30 p.m. at Market Garden Brewery.
 
McAvinchey calls TechPint a “mini-tech conference in a bar with pints.” But that doesn’t mean TechPint isn’t a valuable resource. “It’s a really casual setting with drinks,” he says. “But we’re focused on a value-driven event where you are likely to go home with new ideas to work on or new things to think about.”
 
Many of the major startup organizations are on board, including JumpStart, Bizdom, LaunchHouse and MedCity Media. Speakers will be Mike Belsito, founder of eFuneral, John Knific, founder of DecisionDesk, Josh Walsh, founder of Designing Interactive, and Bizdom’s Paul Allen.
 
McAvinchey plans to hold TechPint every three months. Space is limited to 150 people, and it’s already nearly sold out. Tickets are $12 each.

 
Source: Paul McAvinchey
Writer: Karin Connelly
positively cleveland will train hospitality staff, locals to roll out red carpet for visitors
With downtown Cleveland seeing more than $2 billion in travel-related development, we must step up and make sure visitors are provided with the best possible service. We want them to spread the word when they get home about how great Cleveland is.

That was the message from David Gilbert, CEO of Positively Cleveland, at the organization's recent annual meeting. Based on recent research, the organization has determined that the city has "a communication gap" rather than "a product gap."

"We have the product -- amenities that most cities would be jealous of," said Gilbert. "We don't have enough people experiencing it."

To close that gap, Gilbert unveiled an aggressive plan to train hospitality workers as well as locals in how to better market the city and welcome and direct visitors. Positively Cleveland will also focus on legibility and wayfinding signage, online information, streetscape improvements, visitor hospitality, altering local perceptions and better destination branding and communications.

"We've done a great job of building big buildings, but we need more than that," Gilbert said. "It's 'what was the walk like?,' not just the Rock Hall experience."


Source: David Gilbert
Writer: Lee Chilcote