Regional Economy

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
'spark plug' brings together incubators and accelerators to boost small biz
The Cuyahoga County Next Generation Council (NGC) will host Spark Plug, an event to celebrate small business growth and the region’s many opportunities for funding and growth, June 6 at Negative Space Gallery. The event kicks off Small Business Incubator Month.
 
“Spark Plug is focused on small business accelerators and incubators,” says Tammy Oliver, program organizer and a member of NGC. “It brings together all of the amazing resources we have in Cleveland and Northeast Ohio for young and innovative people.”
 
More than 20 incubators, accelerators and funding organizations will have tables set up to explain what they do and how they can assist a young business. “There hasn’t been an event before this where all of the incubators and accelerators come together in the same room,” says Oliver. “By supporting each other these organizations are supporting the region and all of the businesses. It’s not a secret that small business drives the economy.”
 
Successful businesses that have benefitted from some of the area’s resources will make presentations. Oliver hopes their stories will encourage other aspiring entrepreneurs. “There are so many people out there with amazing ideas and they don’t know where to start,” she says. “Hopefully, they will walk away with more knowledge and know they can take smart risks and there are a lot of people here to help them.”

Spark Plug runs from 5:30 p.m. to 8:30 p.m. Registration is preferred, but Oliver says walk-ins are welcome. Admission is free.


Source: Tammy Oliver
Writer: Karin Connelly
entrepreneurs riding road to success thanks to growing bike-based economy
As cities continue to become more bike-friendly, new bike-based businesses are springing up to support the movement. These bike-centric businesses are both banking on and promoting a growing interest in riding, and in the process they are boosting their cities' economies.
'father-daughter hackday' encourages girls to become makers of technology
If it's up to Rachel Wilkins Patel, fathers and daughters will create something cool together this Father's Day.

Patel is founder HER Ideas in Motion, Northeast Ohio’s first technology and media program for girls. On June 15, the nonprofit will host a Father-Daughter HackDay featuring hands-on activities and career role-modeling for girls ages 11-14 interested in STEM-focused studies. Participants will create their own projects under the tutelage of female technology professionals.

The workshop "is about fathers encouraging daughters to try new things and become makers of technology, not just users," says Patel, a developer at Progressive Insurance.

Being the only woman in the room is not uncommon in high-tech professions, something that HER Ideas in Motion aims to change.

"The number of women in programming is flat and even decreasing in some areas," Patel says. "We're trying to address social and industry issues."

Launched in 2011, the program has graduated 130 students. Interacting with successful women from Rosetta, LeanDog Software, NetApp and Keybank during the Father's Day program will only motivate teen girls to pursue their high-tech aspirations, believes the nonprofit founder.

Gender should not be an obstacle for creative types hoping to program their own video game or dissect the inner workings of a computer, Patel notes. Middle school is the perfect time to introduce girls to the ever-growing digital space.

"We want to reach them before they know what they're capable of," she says. "They should be comfortable taking technical classes later in their school careers."

 
SOURCE: Rachel Wilkins Patel
WRITER: Douglas J. Guth
forbes takes a sip of cleveland whiskey's novel methods
In a Forbes feature titled “Cleveland Whiskey Ages Bourbon In One Week,” science, technology, and culture writer Alex Knapp explores the unique process Tom Lix developed to bring his product to market.
 
“After making the spirit, a distillery places it into charred, American oak barrels to age. Usually for several years, with premium bourbons often aging for nine years or more,” Knapp writes. “But in Cleveland, Ohio, Tom Lix aims to disrupt the traditional aging process of bourbon. He’s developed a process to accelerate the aging process of whiskey from years into about a week.”
 
While the story does not go into details of the proprietary aging process for obvious reasons, a bare-bones explanation of how it works is revealed.
 
“It definitely does not taste like a young whiskey, a common snark you’ll see at some whiskey tasting websites, where Cleveland Whiskey is seeing plenty of detractors,” Knapp continues.
 
Enjoy the complete feature here.

rta healthline praised as major job creator
In a Huffington Post blog item titled “Transit Initiatives Boosted by Employers,” Laura Barrett writes of the vast amount of good that follows support and investment in public transit.
 
In the piece, Barrett highlights numerous benefits, including job creation, as one of the key factors in drumming up support for new transit creation.
 
“For every $1 billion investment in transit, 60,000 jobs are created, making transit one of the best job generators in our economy.”
 
Our fair city was cited as an example of success when public support paired with corporate involvement work together for the greater good.
 
“Cleveland's two largest employers, The Cleveland Clinic and University Hospitals of Cleveland, were involved in a campaign for the HealthLine, one of the nation's most successful Bus Rapid Transit lines.”
 
Read the full post here.

bizdom looks beyond cleveland for promising companies
Bizdom Cleveland has invested in 16 young companies since it set up shop in January 2012, and the organization is targeting 18 more companies this year. While many of the companies are local startups, Bizdom also scours the country in search of promising businesses to recruit to Cleveland.

So far Bizdom has brought four companies to Cleveland: Queryly from New York, MascotSecret from San Francisco, Firmly Planted from Los Angeles and CourseBuffet from Seattle.
 
“The bottom line is we’re looking for the best and the brightest wherever we can find them,” says Paul Allen, leader of Bizdom Cleveland. “We find them, and then we do our best to sell them on the benefits of doing business in Cleveland.”
 
It’s not difficult to recruit companies to the area, given Cleveland’s support of small startups. “There’s a very large and organized infrastructure here,” Allen explains. “Cleveland has a bunch of organizations that provide support, expertise, resources, investment, equity and debt funding. The continuum of organizations that support small business is unlike other parts of the country.”
 
And the assistance is accessible. “Cleveland has a tight-knit startup community that doesn’t take long to identify the key players,” Allen says. “They exist here and you can access them.” Allen points out that the Dan Gilbert and Quicken Loans name also attracts businesses.
 
One of Bizdom’s requirements is that its portfolio businesses locate in Cleveland. All four relocated companies have chosen downtown for their headquarters.
 
Bizdom companies have created 36 full-time and 10 part-time jobs. Allen hopes more out-of-town companies will come to Cleveland for Bizdom’s fall accelerator program in August. “We have lots of applicants from out of state for August,” says Allen.

 
Source: Paul Allen
Writer: Karin Connelly