Innovation + Job News

Fundraising for a college or university has always seemed like a complicated and tricky process, but one local company is making the effort more predictable--and garnering fast growth as a result.
 
St. Paul-based Reeher helps colleges and universities to amp up their fundraising power by predicting which alumni are most likely to donate (see our previous coverage of the company).
 
Started in 2002 by Andy Reeher, the company has been growing quickly, with large institutions like Tulane and Johns Hopkins signing up early for the service. Recent deals have included Temple University, Haverford College, and University of the Pacific.
 
A large part of the company's success comes from measurable results, says Reeher. The firm's platform helps clients find up to 40 percent more donors, which results in better use of fundraising time and money. Reeher developed the platform after spending time on a project that included Harvard, MIT, and other top colleges.
 
"I found that they lose money on 94 percent of their relationships," he says. "They invest a great deal, but almost all their funding comes from a handful of very large donors."
 
By demonstrating how predictive tools can stop that type of loss, the company is gaining a strong reputation in the education sector. Reeher says, "They see that it's working for another institution, and that's very attractive to them, so they come to us and find that it'll work for them, too."
 
Currently, Reeher has 20 employees, and the company will continue to hire in the sales and marketing departments, as well as in customer care.
 
With about 30 customers, the goal for the next few years is to build that number to 100, Reeher says. He expects that with additional sales staff and a robust reputation, the company can reach that number within 18 to 24 months. "There's a great deal ahead of us," he says. "Other tools we can add to the platform, more customers. We're looking forward to all of it."
 
Source: Andy Reeher, Reeher
Writer: Elizabeth Millard

Choosing the right employees, empowering them to excel, and maximizing leadership are all strategies that every company attempts to refine, and the best companies have it all down to a science.
 
Fortunately, for those that are still attempting to tweak their HR tactics, that science can be outsourced.
 
Minneapolis-based Modern Survey provides a number of tools for boosting an enterprise's effectiveness in major areas like employee engagement and performance management.
 
Founded 12 years ago by three entrepreneurs, the company was a "big dot-com idea that actually worked," says CEO and co-founder Patrick Riley with a laugh. The trio had all come from large companies like American Express, and saw first-hand how those businesses operated.
 
When Modern Survey first got started, the focus was on helping that type of large company to go paperless, but over the years, it shifted to become a human-capital-management firm, Riley says: "We help companies to build the right workforce, retain key talent, and understand how the customer connects back. It's getting pretty cool in terms of what we can do."
 
The firm has 25 employees and is growing steadily, he adds. Over the past year in particular, companies are spending more money on improving their internal processes and software. Although hiring hasn't surged upward for many Modern Survey clients, Riley believes that they're putting tools in place for ramping back up to pre-recession levels.
 
Recently, Modern Survey completed a significant investment round, so it's ready to keep growing strong and to continue helping companies refine their HR tactics. Riley expects the firm to expand nationally, and a new-generation product line should be released at the end of the year.
 
"We're in a position to grow aggressively over the next few years," he says.
 
Source: Patrick Riley, Modern Survey
Writer: Elizabeth Millard

Some ad agencies specialize in certain sectors like apparel, sports, or retail. Minneapolis-based Broadhead may be the only one that deals so extensively with cows.
 
The firm tends to do most of its work for clients in rural America, says CEO Dean Broadhead. That encompasses companies that focus on food safety, agriculture, farm veterinary services, dairy, and fertilizer.
 
Started in 2001, the agency came together after Broadhead worked at some major agencies in the Twin Cities. He'd always wanted to set off on his own, he notes, and after working with clients involved in rural businesses, he decided to keep following that route.
 
Recent projects have included creation of a crop nutrition guide for The Mosaic Company, and the development of a program to help wounded veterans through sponsorship by beef and dairy producers.
 
He stocked his firm with people who have a passion for rural life--either out of interest or because they grew up on farms--and the result has been strong growth and a robust client roster. The agency has consistently grown about 25 to 30 percent per year over the last few years.
 
"We're very happy with double-digit growth," says Broadhead. "That allows us to expand at the pace we want to expand. It makes us more well-rounded and a better value to the client."
 
Source: Dean Broadhead, Broadhead
Writer: Elizabeth Millard

Helping teenagers and other drivers to put down mobile devices and concentrate on the road seems like a monumental task. But DrivePower is willing to give it a shot.
 
The company's showcase mobile application, DriveScribe, is geared toward using technology in a way that's appropriate, not distracting. The app functions as a real-time driving monitor and "coach" that gives tips on better driving. If a user tries to sneak some text messaging into drive time, the application immediately alerts parents or other administrators.
 
Sorry, kids. But it's not all-stick-and-no-carrot: the app also posts scores based on driving safely, and users can "play" against each other or earn rewards. The technology's market reach is enormous, believes founder and CEO Will England.
 
"We want to be thought of by every parent and every teen when they get in a vehicle," he says. "Our product could become an essential tool when transitioning from a learner's permit, for example."
 
He anticipates partnerships with insurance companies, which could offer lower rates based on safe driving scores. The app will be released to the general public in April, after an intensive research and development phase, including a number of tests with the Minnesota Department of Transportation.
 
Although the company is anticipating success with DriveScribe, England notes that they're increasing their reach beyond teen driving, and even beyond driving in general. "As a company, we really want to leverage emerging technology to help people make better decisions," he says. "Right now, that's concentrated on driving, but going forward, we'll broaden our scope."
 
Source: Will England, DrivePower
Writer: Elizabeth Millard

Music composition and software programming may seem like they reside in opposite areas of the brain, but one local entrepreneur believes they co-exist quite nicely, and he's built his business around the fusion of the two abilities.
 
Minneapolis-based Hypergolic Motion got its start when composer Zachary Crockett wanted to keep more of the royalties from his music. In the traditional model, a music publisher would retain a portion of royalties, so Crockett opted to become a publisher himself. Since he's been doing programming for a number of years, it made sense that he'd continue that work under the Hypergolic name as well.
 
The company gets its name from a term used to describe rocket propellant--something that's "hypergolic" ignites on contact with another substance. After igniting the company in 2009, Crockett has taken on projects like desktop applications and mobile development, as well as internal corporate websites.
 
The blend isn't as clumsy as it might seem. Crockett notes that although music and programming are distinct arts, they share some unique qualities.
 
"They're both very natural for me, because there's analysis and synthesis in each," he says. "If you take a problem, whether it's a developing software or creating music, you have to understand the bigger vision, and then break that down into smaller pieces."
 
Through his work as a composer, Crockett makes many contacts in the non-profit world, and that sometimes leads to discussions about technology needs. As a result, Hypergolic Motion has built up a robust client portfolio of nonprofits.
 
"I think there's a perception that nonprofits aren't worth pursuing because they don't have a ton of money," says Crockett. "While that may be true, I find that the projects are more satisfying, and the clients are so grateful for the chance to be more efficient and have better systems in place."
 
For the future, Crockett looks forward to blending more programming with his music, and finding harmony in each.
 
Source: Zachary Crockett, Hypergolic Motion
Writer: Elizabeth Millard

When Bjorn Stansvik immigrated to Minnesota from Sweden in 1999, he had big ideas about using software to optimize learning. After turning those plans into reality just a few years later, he's now on a fast track toward growth, and expanding his company's capabilities as a result.
 
In 2001, he launched Minneapolis-based MentorMate as a mobile application development company, with a signature app called iQpakk. The software allows users to create courses and training content on a mobile device, and first debuted at Eagan High School.
 
From there, MentorMate expanded internationally, with offices in Bulgaria and Costa Rica as well as St. Paul. "We saw a good deal of traction when mobile really started taking off and the iPhone came out," says Stansvik. "The promise of mobility got everyone excited about the possibilities. Since we'd been doing this since 2001, it gave us the level of credibility we needed to stand out in the marketplace."
 
In another major shift, the company switched its business model to managed services, in order to meet client needs more fully. It also rolled out another product, SpyderMate, a web-based application for marketers.
 
Currently, MentorMate has about 115 employees, but Stansvik hopes to grow that number to 200 by the year's end. At the start of 2010, the company only had 30 employees. Keeping up with that level of growth can be tricky, Stansvik notes.
 
"It's like working at a new company every three months," he says. "You have to reinvent constantly, and realize the old ways won't work. We have extremely aggressive growth goals--some people might even call them insane--but we think the demand is strong enough to meet those goals."
 
Source: Bjorn Stansvik, MentorMate
Writer: Elizabeth Millard

There are plenty of mobile apps for cocktail lovers--like BarHopper, iBartender, Drink Buddy, and Beer Pad--but now those in recovery have their own app, thanks to developers at Hazelden.
 
The Center City-based addiction treatment organization has created an iPhone application, "Mobile MORE Field Guide to Life," designed to support those who are in recovery from addiction to alcohol and drugs. Accessible through the iTunes App Store, the software is based on MORE (My Ongoing Recovery Experience), Hazelden's web-based program of personalized treatment.
 
"Our mission is to be the industry leader in publishing information that will benefit people who have issues with drugs and alcohol," says Nick Motu, Hazelden's Publisher and Vice President of Marketing and Communications. "We've been in the publishing business for 65 years, and this app is building on that tradition."
 
Hazelden developed its web-based application as a way for clients to stay on track with their recovery. The mobile app now extends that expertise to the general public, and Motu is excited about the potential reach: "We want to expand what we know out to the world, for those who aren't fortunate enough to go through treatment," he says.
 
The organization is gradually pivoting away from print-based publications, he adds, and it's likely that the shift will result in more online applications and mobile apps. Hazelden also recently acquired a social media site, Sober24, which connects those in recovery.
 
With the addition of the "Field Guide to Life" and the website, Hazelden is hoping to bring its considerable expertise to everyone in recovery, not just those who have been in the treatment center's programs.
 
Source: Nick Motu, Hazelden
Writer: Elizabeth Millard

Innovators & Entrepreneurs of the Twin Cities
 
February 2
Joe's Garage
1610 Harmon Place, Minneapolis
5:15 pm - 7:00 pm
Free
 
This casual networking event aims to bring together those who are starting their own businesses or independently developing new products and patents. Founded last June, the group hopes to keep  introducing innovators to entrepreneurs so they can learn from each other and make the journey more enjoyable.
 
MN Society of Women Engineers Career Expo
 
February 4
University of St. Thomas
2115 Summit Ave., St. Paul
Murray-Herrick Campus Center, 3rd Floor Lounge
Noon to 4:00 pm
Free
 
Fire up the business attire and spiff up your resume. This career fair is designed to bring together talented job seekers and innovative companies, and is hosted by the Society of Women Engineers. Companies attending include Hormel Foods, Starkey, Nycor, Medtronic, EV3, Loram, Target, and St. Jude Medical.
 
 Minnesota 2012 Entrepreneur Kickoff
 
February 8
Boy Scout Base Camp at Fort Snelling
5:30 pm
Cost ranges from $5 to $25
 
The Entrepreneur Kickoff brings together investors and startups, in advance of this year's state business competitions like Project Skyway, IDEA Competition and TiE CONS. Now in its second year, the event features business pitch evaluations and ample networking opportunities.
 
How to Leverage Digital Media to Raise Capital
 
February 23
CoCo Minneapolis
400 S. 4th St., 4th floor, Minneapolis
2:00 pm - 4:00 pm
$75
 
Speaker Patrick Donohue gives a presentation on why digital media is changing the world of finance. He'll demonstrate tactics for using digital media to achieve business goals, and give an overview of tools that can be used to raise capital.  
 

Just in time to kick off the International Year of Cooperatives, nine community organizations will get a bit more operating power thanks to the Minneapolis-based Wedge Co-op.
 
The natural food grocer, which has 15,000 members, recently announced the recipients of their annual Wedgeshare grant program: The Emergency Foodshelf Network, Youth Farm and Market Project, The Cornucopia Institute, Open Arms of Minnesota, Farmers Legal Action Group, Water Legacy, Minnesota Food Association, Gardening Matters, and Urban Baby.
 
Since 1997, Wedgeshare grants have been awarded to numerous community organizations, resulting in hundreds of thousands of dollars in funding. The recipients are chosen by the grocer's members, giving them a strong voice in the process.
 
"Our members love that they can vote on this, and be involved," says Lindy Bannister, General Manager of The Wedge. "The recipients are always closely linked to our neighborhood, and that helps members feel connected to what's going on here."
 
The program started as a way for the co-op to give back to the community, and Bannister notes that it's grown into a very popular program.
 
"It's getting stronger every year, and the applications are becoming better in terms of detail and storytelling," she says. "I think people are more and more aware of the needs in the community; they're paying attention."
 
The grants are particularly notable this year, since the United Nations declared 2012 the International Year of Cooperatives, with the aim of celebrating the social and economic benefits of cooperative businesses.
 
Source: Lindy Bannister, The Wedge Co-op
Writer: Elizabeth Millard

With rising healthcare costs and growing interest in wellness and options, StayWell Health Management has become a compelling option for many companies.
 
The St. Paul-based firm specializes in providing programs that help to improve employee health. Although that sometimes takes the form of weight loss contests or blood pressure screening, StayWell goes far beyond those occasional events, says Lesley Lesch, the company's director of account management.
 
"We offer a full spectrum of health management services," she says. "What sets us apart is that we do research and use that to design very effective programs."
 
The company evaluates aspects of a client's overall health and wellness environment, including senior management buy-in, prevention delivery models, and follow-up programs, in order to gauge what approaches are needed. A major focus is keeping employees motivated, Lesch says, and that involves staying involved in wellness all year, not just at a one-time health fair.
 
"At this point, employers have seen these programs work," she says. "That's driving growth for us, and helping us to lead the industry."
 
StayWell has about 400 employees, but anticipates a surge of hiring in the year ahead, thanks to the success of its programs. The company will seek a range of professionals, from nurses and dieticians to health educators who can provide individual counseling to employees by phone.
 
"With healthcare reform and more use of incentives by employers, this is a really exciting time for us," Lesch notes.
 
Source: Lesley Lesch, StayWell Health Management
Writer: Elizabeth Millard

The way that churches stay in touch with members and involve them in activities is unique in terms of strategy. Now, a local startup is helping them gain some of the advantages of the business world, without having to use software designed for enterprises.
 
Minneapolis-based Fresh Vine--previously called Nineteen05--provides software that's designed to help churches increase engagement while still staying true to a larger mission.
 
"It's different than typical administration or sales software," says company president Paul Prins. "Their goal is not to convert leads into customers. Their goal is getting the community involved in what they're doing. For that, they need to be more proactive with their members, rather than reactive."
 
Prins got the idea for the software when he was involved in the launch of a new church about seven years ago. He was asked to take a look at their software and what he saw was painful, he says: "I thought that they could be doing such a better job of managing members, events, contributions, everything."
 
Fresh Vine's tool helps to define what a church should be focusing on in the near future, and see its strengths and weaknesses. The software is picking up customers, and Prins hopes to expand his current team of four into a larger group of developers.
 
"I love the tech scene in Minneapolis, so I want to have a development team here that can keep growing and innovating," he says. "As the company gets more traction, I'm looking forward to more sales and expansion."
 
Source: Paul Prins, Fresh Vine
Writer: Elizabeth Millard

"You know that moment when you get home, and it's been a long day, and you just want to sit down and treat yourself a little?" asks Terry Williams, founder of food company BlackOnyx Creations. "Well, that moment is what drives our whole business."
 
Williams and her husband Frank work to develop comfort foods for what they call the "ahh time," when people seek peace and relaxation through a cup of chai or bite of toffee. They produce drinks and snacks like coffee, chai, granola, and candy and market many of them under the label Winter Goddess.
 
The firm started a few years ago after Frank was injured at his job working for the TSA and the couple had to take a leap of faith in search of a new income source. "Our business is the result of dealing with economic difficulties," Williams notes. "We had to look at the world differently, to see opportunities where we hadn't seen them before. Most of all, we had to look at our community in a more interactive way. It's been a wonderful shift."
 
BlackOnyx takes it name from the stone, which is thought to increase regeneration, happiness, and intuition. Williams says it helps to create balance, give strength, and boost self-confidence — qualities that are hugely beneficial when starting a new business and gaining traction in the market.
 
The business began with craft shows and farmers markets, but started to grow after the pair took classes with Kindred Kitchen, the food incubator program in North Minneapolis [see our coverage of the program here]. That, in turn, led to the Minneapolis Homegrown Business Development Center loan program. BlackOnyx became the first loan recipient of the pilot program, and they're using the funding for marketing and a chocolate tempering machine.
 
With a strong start for the company, it looks like more local residents are likely to get that "ahh" moment in the future.
 
Source: Terry and Frank Williams, BlackOnyx Creations
Writer: Elizabeth Millard

In today's technology-driven business arena, mobility is an advantage, and St. Louis Park-based I.T. support firm Backpack Tactics aims to give companies that edge.
 
Founders Joel Barker and Brian Roemen chose the company's name as a nod toward how they both work--carrying their laptops in backpacks--but also as a representation of what they provide, like mobile technology services and cloud computing insight.
 
"It's all about lightweight technology," says Barker. "With current technology, you should be able to carry your business with you anywhere."
 
Before teaming up, the pair had worked as consultants, both independently and together on a few projects. They decided to start a business together in 2010, and the firm has grown through word of mouth since then. Since Barker has worked for nonprofits since 2005, that's one sector that's particularly strong for Backpack Tactics.
 
Barker says, "Many nonprofits don't understand what tools are out there and how they can be utilized properly, so it's our mission to help them. Essentially, we're trying to put ourselves out of work by providing training and technology, but that's okay because we're really passionate about helping people to help themselves."
 
He adds that training is a strong focus for most clients, and that many small business owners haven't had any technology training in the past. By blending training with tech-purchasing advice, Backpack Tactics can help them to use tech more effectively.
 
"For the future, we'd just love to be able to grow more and reach more clients," says Barker. "We continue to learn about new tools and connect with more people, and that's what we envisioned when we started, so we're on a good path."
 
Source: Joel Barker, Backpack Tactics
Writer: Elizabeth Millard

Most people think of purple corn as a nice decoration in late fall. But when Bill Petrich looks at the dark kernels, he sees growth opportunities.
 
He's CEO of Suntava, a company founded to use plant-based ingredients in new ways. Petrich signed on to helm the firm after reading the founders' business plan. He says, "It's a fascinating idea. I offered to advise them at no charge just to learn more about it, and the more I got involved, the more I saw that this is a venture that could change lives for decades to come. It's game-changing."
 
Derived from a non-GMO purple corn hybrid, Suntava's signature extract can be utilized in a number of ways. Most notably, the corn can produce a natural coloring source that can act as an alternative to the popular Red Dye 40, found in many products.
 
Synthetic dye is made from petroleum, and several studies have pointed out health risks associated with its use, Petrich says. Consumers are demanding more natural sources, and he believes that Suntava is a good fit for that market shift.
 
The company is also able to produce whole grains and nutraceuticals (foods with health benefits) that can be used in dietary supplements, cosmetics, and foods like corn chips and cereals. The high anti-oxidant level of the corn makes it even more attractive as an ingredient and food additive.
 
Although the corn isn't organic now, that's a direction in which Suntava may go in the future. For now, Petrich notes that using the corn creates a sustainable system: "With this product, we're not disrupting the food chain, we're enhancing it. We're getting more out of an acre of land in every way. And in the process, we're producing what's essentially the next superfood. That's pretty exciting."
 
Source: Bill Petrich, Suntava
Writer: Elizabeth Millard

In the dystopian novel "Fahrenheit 451," Ray Bradbury describes a world where firefighters start blazes instead of ending them, burning books and libraries because reading is outlawed.
 
The novel was named for the temperature at which paper burns, and a local technology company has adopted the number for a much more positive outcome: helping businesses to go paperless.
 
CEO and co-founder Mark Johnson of Minneapolis-based Four51, says that the company isn't a typical startup, since it's been in business for 12 years and has seen continuous growth through some very tricky economic periods.
 
Four51's signature application, CommerceTools, launched in 1999 and provides a way for product distributors and suppliers to connect with their buyers. The software is used throughout the U.S., as well as in 40 countries.
 
A newer app, FanTools, lets customers create and publish promotional content. It's similar to the wildly popular Groupon, but unlike that service, merchants with FanTools don't have to pay service fees. The app guides a business owner through the process of marketing in the same way that Turbo Tax or Quicken help businesses navigate tax or financial data.
 
With the unveiling of its newest offering, the company expects to grow rapidly as a result. After a plateau during the recession, the firm hired nine people last year, and expects to bring on close to 20 new employees this year, adding to its current roster of 41.
 
"Our focus for this year will be on maintaining our growth rate," says Johnson. "We're confident that we'll see success with this new product, and we'll roll it out to other cities in the near future."
 
Source: Mark Johnson, Four51
Writer: Elizabeth Millard