Entrepreneurs + Innovators

q & a: tom waltermire, chief executive team neo
cleveland hostel now renting bikes to guests and non-guests
The Cleveland Hostel on W. 25th Street in Ohio City recently acquired a collection of eight bikes for rental purposes. It plans to offer daily rentals to visitors and locals who want to explore the city on two wheels come spring (or now, if you're a snow rider).

"We just got 'em a week and a half ago," says Mark Raymond, the Geneva native who opened Cleveland's first hostel last August. "The Akron Bike Club came up for the West Side Market Centennial on the Towpath, and they liked the hostel so much they donated these bikes."

The eight two-wheelers -- a mix of road bikes and cruisers -- are available for $15 per day if you're a hostel guest or $20 per day if you're not. The bikes are available during regular hostel hours: 9 a.m. until 10 p.m.

Renting bikes was always part of Raymond's plan, and he's excited to showcase his city to travelers who don't have a car or prefer to get around without one. In the past six months, he's hosted travelers from 40 countries around the globe.

The Cleveland Hostel has also hosted visiting artists and individuals affiliated with Cleveland Public Theatre, LAND Studio and other groups. Raymond already has the entire hostel booked by a group of Germans for the Gay Games in 2014.

The hostel is also open to Ohio City residents and the general public for event rentals and special events. Raymond will host bands on the second floor during Brite Winter Festival on Saturday, February 16th. He's even found a hidden market in Clevelanders looking for a place to crash during Ohio City outings.

"We've had a lot of people from the area stay here, especially around New Year's," he says. "They'll see a show, have dinner and then spend the night in the hostel."


Source: Mark Raymond
Writer: Lee Chilcote
to accommodate rapidly growing staff, explorys moves into former museum space
Explorys, which offers a secure software platform that allows healthcare systems to summarize, analyze and manage data, has moved into the former home of MOCA. The Cleveland-based company currently has more than 80 employees and is expected to climb to between 110 and 125 by next year.
thai elephant adds to growing foodie scene in kamm's corners
Within the past five years, the Kamm's Corners commercial district at Lorain Avenue and Rocky River Drive has transformed itself. This once-faded stretch of Irish bars and half-empty storefronts has become a diverse foodie destination, where you can as easily order a gourmet burrito as a pint o' Guinness.

The presence of restaurants like the recently opened Thai Elephant have created a buzzed-about cuisine scene that's a far cry from the West Park of recent memory.

"It's really an exciting time to be a part of the Kamm's Corners commercial area," says Cindy Janis, Commercial Development Manager with Kamm's Corners Development Corporation. "I get calls quite frequently from businesses looking for new space in the area."

Thai Elephant, which opened in January, is the latest addition. Sirima Krabnoic, the Thailand native who also owns Thai Chili restaurant in Avon Lake, renovated a long-empty former Chinese restaurant at 16610 Lorain into a comfortable, colorful eatery with beautiful hand-woven Thai tapestries on the walls.

"We wanted to expand our business, and we thought that Kamm's Corners was not a bad area for a second location," says Krabnoic. "It's authentic Thai food."

Thai Elephant is open for lunch and dinner seven days per week. Most dishes range from $6 to $13, and the menu has an extensive list of traditional dishes.

Soon, the restaurant will be installing a striking new sign -- hint: It has an elephant in it -- with the help of the City of Cleveland's Storefront Renovation Program.

"They're a wonderful new addition to the neighborhood," adds Janis.

Among other new or recent openings on Lorain, Janis cites the Jasmine Bakery, Olive and Grape, Kamm's Closet and Cafe Falafel (slated to open in two weeks).


Source: Cindy Janis
Writer: Lee Chilcote
growing background check provider safecare transitions into the b2b market
SafeCare, which provides continuous monitoring and background checks of employees in the healthcare industry, received a $25,000 grant in November from the Innovation Fund. The money will help SafeCare expand and refocus the company, which was formed out of Bizdom Cleveland’s inaugural class in April 2012.

The grant will allow SafeCare to concentrate more on the B2B market, rather than the consumer market. The company monitors employees on a monthly basis against nationwide healthcare and criminal public data sources.

“We will be using that money to really concentrate on flushing out our B2B offerings,” explains SafeCare founder and CEO Lissette Rivera. “We’re moving away from consumer products because of the sticky situations you can have when you share people’s information.”
 
SafeCare is in the process of re-designing their website to create a more personal feel. “We’re focused on providers rather than families, and our website will have a more warm and fuzzy feel,” Rivera says. The new website should launch by the end of this month.
 
SafeCare has three clients spanning nine healthcare facilities. Rivera has grown the company to four employees -- a CTO, two contract employees and a paid intern -- and is hoping to hire a salesperson in the next six months. “We’re fast moving in the direction of creating more and more jobs,” boasts Rivera.

 
Source: Lissette Rivera
Writer: Karin Connelly
blitz barbeque adds late-night eats to expanding scene on waterloo
While spending his weekends crafting sauces and perfecting slow-smoked pulled pork, Bill Madansky used to joke around with his friends about quitting his day job to open a barbeque restaurant.

Five years after looking at an empty storefront on Waterloo Road, he's finally done it. Madansky has leased a space from Northeast Shores Development Corporation, which renovated a dilapidated building across from the Beachland Ballroom and Tavern, and recently opened Blitz Barbeque.

Madansky's journey from grocery store employee to chef and small business owner was complicated by the recession (banks weren't lending to restaurants; or at least not his) as well as the renovation of the building, which was a gut job.

"I was tired of working for people, so I decided to go out on my own and give it a shot," says Medansky of his decision to lauch Blitz. Of the restaurant, he adds, "Everything is made from high-quality ingredients. I go the extra mile."

Extra mile indeed. Madansky preps all of his meats at least a full day in advance, giving his pork and other meats a chance to really soak up the sauces and spices. "There's a lot of prep," he says. "Mine stands out above everyone else's."

Although Madansky jokes that he must be the most patient man in Cleveland, he's also among the hardest-working. Blitz is open from 11 a.m. until 1 a.m. seven days a week in order to serve concertgoers and other late-night revelers on Waterloo.

Blitz is mostly a takeout joint but has a counter, stools and a side bar with a flat screen and four chairs. Prices range from $6 Polish Boys to $13 half slab rib dinners and a $16 dinner for two that includes "two pieces of everything."

Madansky, who has been buying restaurant equipment for years, is happy to finally be open. As for the name, it's got a rock and roll connection: Madansky's brother John was 'Johnny Blitz' of the well-known punk band The Dead Boys.


Source: Bill Medansky
Writer: Lee Chilcote
expecting 15 to 20 percent sales growth, 4 walls to add staff
4 Walls, a Cleveland designer and manufacturer of digital wall coverings for residential and commercial markets, has partnered with Sherwin-Williams in a new program, SurroundDecor.

The program caters primarily to the health care, hospitality, retail and corporate markets, and features new original digital designs printed on premium recycled PVC-free material. Customers choose their designs, colors and sizes and SurroundDesign creates custom murals for their spaces.
 
4 Walls and Sherwin-Williams are long term partners, and SurroundDecor is a natural fit, says4 Walls founder Patrick Walker.

“We have a good and close relationship with the decor group at Sherwin Williams, and have for many years,” he says. “They are familiar with our commitment to quality in both product design and manufacturing. When we presented the program, they felt we'd be a great partner.”
 
Sherwin-Williams announced the program at its annual show last week. Their sales network will handle initial requests and quotes, then 4 Walls will take over. “They not only handle 100-percent of the sales process with their rep network, but they also field the incoming requests for quotes and information,” says Walker “As soon as the questions get more complex and technical -- things we like to handle and take off their plate -- they pass the calls to us. They are great to work with, and provide solid guidance regarding their needs, and those of their customers.”
 
Because one order can typically take between three and 12 months to complete, Walker anticipates sales in the SurroundDecor program to ramp up by second quarter of this year. “We are planning for 15 to 20 percent sales growth, and to hire one to two additional people,” Walker predicts. “This is our forecast, and is certainly achievable. Getting there will of course depend on both the overall economy and the trends in our industry. As always, we are cautiously optimistic.”

 
Source: Patrick Walker
Writer: Karin Connelly
lofts at rosetta will be first new downtown apartment building to come online in 2013
Wannabe downtown Cleveland residents who are on waiting lists for the hottest apartment buildings can expect some relief soon. MRN Ltd. plans to open the Lofts at Rosetta Center, an 85-unit building at 629 Euclid Avenue, within just a few short months.

The units, which start at $715 per month for a studio and climb to $1,600 for a spacious two bedroom, began pre-leasing on January 15. MRN already has accepted deposits on several units, and the first residents are expected to move in around March 29.

During a recent preview tour with Leasing Manager Tammy Oliver, Fresh Water observed drywalled units with sleek white kitchens, open loft-style living spaces, walk-in closets and large windows offering views of Euclid Avenue and Lake Erie. The building also has an on-site fitness center and game room, laundry available on every floor, and a tucked-away breakfast and lunch spot called Sammy's.

"We used Stanley Saitowitz, a San Francisco architect with Natoma Architects, who also designed the units in our Uptown project," explains Oliver. "It's a historic renovation project with super modern interiors and really efficient living spaces."

Indeed, the sales pitch holds true. There's little wasted space in these units, which feel roomy even when the square footage says otherwise. The lack of interior hallways and the presence of big, beautiful windows add to the airy, light-flooded feel.

In addition to studios, one bedrooms and two bedrooms, the building also contains loft-style units with semi-open bedrooms (a floor-to-ceiling wall offers separation).

The most heartening trend Oliver has seen is that prospective tenants are coming from outside of downtown, not MRN's other buildings. She's received calls from apartment-seekers from Chagrin Falls, Strongsville, Columbus and other cities.

"We were a little afraid of doing the downtown shuffle, where our residents move to a newer building," she says. "But we're not poaching from other buildings."

Opening new buildings should also make the market more competitive. "The rents were being raised on existing stock faster than the Cleveland employment market could keep up," she says. "We want to offer units students can afford without breaking the bank, and give professionals options so they can move up."

Interested in checking out the latest in downtown living? MRN and Downtown Cleveland Alliance are hosting an open house on Tuesday, Feb. 5 from 5-7 p.m. (NOTE: This event is now sold out, according to the event organizers.)


Source: Tammy Oliver
Writer: Lee Chilcote
friend-owned cardigan events takes the headaches out of event planning
Jenni Baker and three of her friends were talking one day and realized they all had some degree of background in event planning. The realization sparked an idea. “We decided to come together and form this company,” says Baker.
 
So, in January 2012, Baker, Holly Lauch, Timi Kormos and Jane Diemer started Cardigan Events. Baker and Lauch work on the development and business side of the company, while Diemer and Kormos apply their talents on the creative and design side.
 
Instead of just serving as another party planning company, Cardigan focuses on helping clients attain certain goals with respect to their events. “We’re really focused on events for companies trying to reach specific objectives,” says Baker. “Whether it’s raising awareness -- helping nonprofits tell their stories or raise supporters -- or showcasing a new program or facility, we really try to hone in on the reasons to have the event.”
 
Cardigan’s first event was a fundraising dinner for St. Vincent DePaul. Other clients include a March Madness fundraising event for In it Together, a support organization for families of children with cancer, and the Catholic Community Foundation.
 
“I never thought that working on this kind of stuff could be so much fun,” says Baker. “Someone said to us, ‘All of this gives me a headache.’ So our unofficial motto became, ‘Your headache is our fun.”

 
Source: Jenni Baker
Writer: Karin Connelly
northeast ohio venture and angel investments up 34% in 2012
In 2012, Northeast Ohio was a popular place for venture capitalists and angel investors to back startup companies. Investments nationally decreased by 10 percent last year, and decreased in the rest of Ohio by 33 percent, according to a study in The MoneyTree Report by PricewaterhouseCoopers and the National Venture Capital Association.
 
But in Northeast Ohio, according to the Northeast Ohio Venture Capital Advisory Task Force, 105 tech-based companies in Greater Cleveland raised $201 million from venture capitalists and angel investors -- a 34-percent increase over the amount raised by companies in 2011.
 
“We’ve been on an upward trajectory of the number of companies that have been able to raise money,” says Samantha Fryberger, vice president of marketing for JumpStart. “There’s a strong angel community here and our angels are well organized and well educated.”
 
In fact, Northeast Ohio has the first and fifth largest angel funds in the country. Fryberger says the diversity of businesses and the number of support organizations attract investors to Northeast Ohio. 
 
“We have a very robust early-stage investment ecosystem right here in Northeast Ohio,” says Clay Rankin, managing member of the North Coast Angel Fund, which invests in life sciences companies and is the country’s fifth largest angel group. “We’ve been building a lot of momentum in the last six to eight years. We’ve been very fortunate in supporting early stage ventures.”
 
Citing successful companies like Juventas Therapeutics, Cleveland HeartLab and Neuros Medical, Rankin says it’s no wonder Cleveland is growing in investments. “There really are world class companies being developed right here in our backyard,” he says. “When you have world class companies, you attract support from angel groups.”

 
Source: Samantha Fryberger and Clay Rankin
Writer: Karin Connelly
5th street arcades launches retail grant competition to attract next-gen urban retail
Call it a small business grant competition with a twist. The Downtown Cleveland Alliance 5th Street Arcades Retail Development Grant Competition will award $1,500 to $20,000 to startup businesses. Along with free and reduced rent for the first year, tenants will also have a chance to win matching funds and garner community support through online crowdfunding.

Downtown Cleveland Alliance and developer Dick Pace are hoping that the recently launched program, which is being funded by Charter One Growing Communities, will help kickstart new downtown retail and fill up long-vacant spaces in the 5th Street Arcades (formerly the Colonial Arcade).

"I already have people calling me," says Pace, who has added several new shops since taking over a master lease for the arcades, including Curious Cleaveland, Chocolate 76 and Different Things Gallery. "We need more than one single shop, but a group of retailers that feed off each other and create that synergy."

The crowdfunding campaigns, which will take place after winners are selected, will give retailers a chance to raise funds and generate buzz. "They get capital support from DCA, and support from crowdfunding. It's a pretty powerful combination."

Carrie Carpenter of Charter One Growing Communities says that providing gap funding to new urban retailers has been so successful that the program is being rolled out in other cities outside of Northeast Ohio. "When you look at it from a small business perspective, we have tons of entrepreneurs in Cleveland, tons of great ideas," she says. "The challenge is that they simply lack funding to make it happen. Growing Communities is about helping neighborhoods succeed."

The competition began Tuesday, January 29 and runs through Friday, March 1, 2013. Applications must be received by 5 p.m. on March 1 to be eligible. Finalists will be notified on or before March 20, 2013. Grant applications will be judged on their merits by a selection committee.

Finalists will run crowdfunding campaigns from March 25 to April 24. Winners and grant amounts are scheduled to be announced the week of April 29.


Source: Carrie Carpenter, Dick Pace
Writer: Lee Chilcote
more than a few words with will hollingsworth, builder of the perfect bar
If you've enjoyed a drink at Lolita on a weekend night during the past two and a half years, chances are good Will Hollingsworth poured it. During that same period of time, Hollingsworth has been formulating his greatest recipe yet: The perfect bar, which will open this summer in Tremont.
lakewood crossfit forms powerful partnership with cleveland big brothers big sisters
CrossFit is a strength and conditioning program designed for people of all ages and fitness levels. Jillian Neimeister and Tricia Tortoreti, owners of the recently opened Birdtown CrossFit in Lakewood, believe the program can empower the lives of Cleveland's teenagers in ways beyond physical prowess.

During a fundraising campaign to help purchase equipment for the gym, the pair promised to donate a one-year membership to the Big Brothers Big Sisters of Greater Cleveland for every $2,000 raised. The duo ended up raising $7,260 through their indieGOGO.com campaign, equating to three memberships for teens affiliated with the Big Brothers Big Sisters program.

"Our intention is to introduce teens to a larger community of people who are committed to health, and a network of Clevelanders who may encourage and support them," says Tortoreti, a "Big Sister" with the organization for the last five years.

"We're happy to engage a different audience around the benefits of mentoring," says Big Brothers Big Sisters president/CEO Gretchen Faro regarding the partnership. "Fitness is clearly a need for our community."

The business partners expect that participating teens will come to the gym with their Big Brother or Big Sister, but membership affords them use of all classes on offer. CrossFit is not a typical gym, relying more on jump ropes and barbells than elliptical machines and treadmills. The Cleveland-based CrossFit is located in the Lake Erie Building in Lakewood's Birdtown neighborhood.

Partnering with Big Brothers Big Sisters was an easy call for Tortoreti. Her 14-year-old "Little" was eagerly searching for after-school activities that didn't involve video games or just hanging out with friends.

"CrossFit can do so much for you besides making you more fit," says Tortoreti. "We have a great community spirit here."
 

SOURCES: Jillian Neimeister, Tricia Tortoreti, Gretchen Faro
WRITER: Douglas J. Guth
quick2launch creates pain-free presentations with a few mouse clicks
Phil Alexander and Mohit Ahluwalia realized something when they were earning their MBAs at CWRU: that people in all segments of businesses are charged with creating presentations at some point in their careers. However, not everyone has the talent -- or budget to hire an agency -- to create an eye-catching presentation.

“Thirty million PowerPoint presentations are made every day across America,” says Alexander.
 
So Alexander and Ahluwalia thought about starting a business that would help customers create their presentations.

“We wanted to do something with digital media,” recalls Alexander. “We were looking to figure out if we could automate the process and avoid paying the high rates of agencies.”
 
The two applied to LaunchHouse Accelerator last summer and developed Quick2Launch, a company that creates great visuals for any presentation. The company officially launched last week with its ConceptDrop technology.
 
With the company’s ConceptDrop, users login, upload their content outlines and fill out a creative brief questionnaire describing their presentation. They are then presented with a selection of pre-approved templates and themes, and Quick2Launch takes it from there and creates the visuals to go along with the content. The end result is a complete, professional presentation.
 
“We’re just trying to hold their hand throughout the creation of the presentation,” says Alexander. “We’ve tried to make it so it’s really simple.”
 
Quick2Launch partners with Reality Premedia Services, which provides access to 150 graphic designers. The company is about a month away from launching its business-to-business platform.
 
Alexander says they hope to hire a sales team and in-house designers soon. “The goal is to completely build our own entity,” he says. “We really want to be the all-in-one stop for presentations.”

 
Source: Phil Alexander
Writer: Karin Connelly
miller schneider gallery opens in waterloo arts district
In another example of a fleeting pop-up becoming permanent, local artists Dott Schneider and Bryon Miller recently opened the Miller Schneider Gallery on Waterloo Road in North Collinwood to showcase seldom-seen artists and add to the district's growing visual arts scene.

In recent years, there's been a rotating gallery at 16008 Waterloo Road. When the landlord approached Miller about opening a space, he soon reeled in Schneider.

The first show features Cincinnati tattoo artist Meghan Dietz, whose flash line paintings are influenced by American-style tattooing. As Schneider says, "What we have on the walls right now is some pretty risque bondage flash line work."

Expect more unusual offerings from this duo, who have plenty of experience.

"What's exciting is that we're both professional artists and have been doing this a long time," says Schneider. "We want to foster good, honest relationships with the artists we represent. It's our responsibility to mentor up-and-coming artists."

Schneider is a mixed-media artist who has been creating and exhibiting work since 1996, while Miller is a photographer with 15 years of experience. Upcoming shows may feature folk artists from Columbus and a printmaker from France, she says.

The gallery will stay open later on nights when there is an "interesting" show at the Beachland Ballroom and Tavern, says Schneider, who is enthused about the arts district. "We're looking forward to growing with the neighborhood," she says.

The gallery has regular weekend hours. It will be open Tuesdays and Thursdays starting in February and will be open late for Walk All Over Waterloo on Feb. 1st.


Source: Dott Schneider
Writer: Lee Chilcote
flydrive's regenerative braking flywheel replaces battery in hybrid, electric cars
What started as a design project in CWRU mechanical and aerospace engineering student Kristen Brouwer’s senior design class has evolved into a full-blown business. Brouwer and three of her classmates took an existing patent for a regenerative braking flywheel and created FlyDrive, which makes a flywheel that replaces the battery in electric and hybrid cars. They are bringing their flywheel to market.

“In a Prius, for instance, when you brake, the electric motors are charged, which then charge the battery,” says Brouwer. “With our flywheel, it’s just as efficient in returning energy and doesn’t have to be replaced. And it’s environmentally better than batteries because it doesn’t use chemicals.”
 
Brouwer and teammates Jordan Lajoie, Luke Voigt, Kris Bosma and Cleveland Institute of Art industrial design student Adam Lauser have been developing the flywheel for market since September. “Most of our developments have stemmed from market identification and development as well as creating a preliminary concept for implementing the flywheel in a transportation system,” says Brouwer.

FlyDrive will be competing in the Ohio Clean Energy Challenge semi-finals next week, where they will compete for $10,000 and the chance to move on the Midwest regional competition in Chicago. The company has been assessing licensing options in the meantime.

“We’re waiting to see if we make it to the next level of competition,” says Brouwer. “It’s been a great learning experience.”


Source: Kristen Brouwer
Writer: Karin Connelly
from hillbilly to highbrow, the cleveland flea aims to launch a new saturday tradition
The St. Clair Superior Development Corporation and artist-entrepreneur Stephanie Sheldon are hoping to start a new tradition in Cleveland come spring -- an urban flea market that celebrates Cleveland's maker community and helps locals turn trash into treasure.

The Cleveland Flea will take place on the second Saturday of the month at E. 64th and St. Clair Avenue beginning in April. It will feature a mix of artisans, food trucks, pop-up and bricks-and-mortar retail, and educational demonstrations.

"It will be a look at the maker community in Cleveland combined with traditional flea aspects," says Sheldon, the energetic driver behind the startup businesses Parfait, Indie Foundry and Kiss and Bite. "It will be a mix of a curated selection of Cleveland artisans and a treasure hunt. It won't be all hillbilly or all highbrow."

While the Flea itself will take place outdoors, it dovetails with St. Clair Superior's Retail Ready project, which has lured new businesses to the area by working with local landlords to offer cheap rent, buildout funding and marketing assistance.

Sheldon says the idea came in part from her realization that Cleveland's artisan community could use a home. "I hear rumblings from people who ask, 'How do people find me in the oversaturated Etsy market? It's become really ineffective."

In addition to makers and locals selling their stuff, ideas for the CLE Flea include a pop-up restaurant for food trucks, educational programs on bike repair and starting a business, and a partnership with the Cleveland Salon.

Sheldon hopes the idea will catch on and grow quickly. A soft launch will take place on Saturday, February 23rd at the first-ever Cleveland Kurentovanje, a traditional Slovenian rite of spring that is coming to the area.


Source: Stephanie Sheldon
Writer: Lee Chilcote
the next must-live cleveland neighborhood is...
What's next? It's a question we all wish we had the answer to. But for folks looking to settle down, that question undoubtedly refers to place. In this running series, Fresh Water explores emerging Cleveland neighborhoods that are primed for growth. This week, writer Joe Baur examines North Shore Collinwood.
software development firm urbancode to double its staff (again) this year
What began as a game and website development company in 1996 has blossomed into a thriving developer of software products.

After creating internal software that allowed UrbanCode to track the progress of its own software development projects, the company began developing similar products for its customers. UrbanCode products help their customers get their software to production faster -- decreasing time to market and ultimately getting their technology to the end users quickly and easily.
 
“One trait that unites all our customers is that they realize the strategic importance of their technology,” says Maciej Zawadzki, UrbanCode cofounder and CEO. “They need to get their technology into the hands of end users as quickly as possible. Our products facilitate the adoption of Agile methodologies in development and DevOps practices in operations."
 
Last year, UrbanCode was a finalist for Tech Company of the Year in NEOSA’s Best of Tech Awards, and its AnthillPro product won Best Software Product, Impact in 2008.
 
By recognizing their clients’ needs, UrbanCode has been growing by leaps and bounds. “Recently, we have been focused on DevOps releasing three new products: uDeploy, uBuild and uRelease,” says Tracy Gavlak, UrbanCode’s office manager. “We have been able to increase our growth rate to 70 percent over the last two years, with no signs of slowing down.”
 
UrbanCode has grown from 25 employees to 55 in the past year. Gavlak cites finding the right talent as one of the company’s biggest challenges. The company is currently recruiting sales engineers, field sales executives and software developers.

“We have the energy and informal atmosphere of a start-up, with the customers and financial security of a much larger firm” says Gavlak.
 
Company officials expect to double in size again this year. Plans are underway to move to a larger space in the Halle Building later this year.

 
Source: Maciej Zawadzki and Tracy Gavlak
Writer: Karin Connelly