strong local economy : Innovation + Job News

Forget the Olympics: for a truly ferocious competitive environment, take a look at the Minnesota Cup.
 
The annual competition seems to keep gaining prominence and momentum every year, and recently announced the semi-finalists for its eighth go-round.
 
Designed to accelerate the development of the state's most innovative business ideas, the Minnesota Cup gives applicants the opportunity to compete for a share of $200,000--up from $185,000 last year--and to network with individuals and organizations that can help turn a business plan into a reality.
 
Judges chose 49 entrepreneurs, inventors, and innovators for the second round of the competition, and Cup co-founder Scott Litman notes that this year is full of exciting and strong business ideas.
 
"We love seeing all the excitement around the program, and it does seem that we see more applications every year," he says. "Everyone is very supportive of the competition."
 
The range of semi-finalists is broad, from a yoga studio that specializes in pre- and post-natal classes to a holistic treatment company to a web application developer for forms processing. Companies include BuyerCurious, Omnicron Health Systems, QuadROI, and EnergyPrint.
 
During this round, the semi-finalists will be paired with entrepreneurial mentors who will help them refine their business plans and presentations. Finalists will be chosen in late August, and winners announced in early September.
 
Source: Scott Litman, Minnesota Cup
Writer: Elizabeth Millard

Twin Cities residents looking for information on urban food growing, zoning changes, permits, community kitchens and other food topics now have a one-stop online location, thanks to the City of St. Paul.
 
The Healthy and Local Food site is intended to aid the growing number of community organizations and individuals who are working on local food issues like food security and backyard farming.
 
"One of the things we kept hearing from the community was that they'd like to have a central source of information about local food issues," says Anne Hunt, the city's Environmental Policy Director. "We developed this to help people navigate all the information that's available, especially since there's such a growing interest."
 
Through the site, visitors can find out about permits for having chickens in their yard, for example, or the rules regarding compost on an urban property. The site also offers guidance on finding resources like gardener networks and food share programs.
 
St. Paul supports numerous initiatives designed to increase the production and distribution of sustainable, locally grown food. Recently, the city broke ground on the development of a huge greenhouse on Rice St. where fruits and vegetables will be grown for Twin Cities grocery stores.
 
The Healthy and Local Food site lists a few of these projects, including micro-farm collective Stone's Throw Urban Farm and a master plan for turning Lowertown into a massive urban farm.
 
"We're trying to make things really clear and straightforward for people," Hunt says. "Hopefully, this will accommodate even more access to urban agriculture."
 
Source: Anne Hunt, City of St. Paul
Writer: Elizabeth Millard

When it comes to predicting a product's shelf life, or detecting leaks or aromas in packaging that could affect flavor, people around the world turn to Minneapolis-based MOCON.
 
For over 40 years, the company has been a leader in the development of testing services and instruments, and its capabilities are impressive. Numerous clients depend on the firm for insights on packaging, cost reduction, sustainability, and food safety.
 
Because it's often considered the industry standard when it comes to such tests (many scientific papers note that researchers did a "MOCON test" to demonstrate a specific result), it's not surprising that the company is growing at a nice clip. Now at 150 employees, some have been brought on as the result of acquisition, while the rest were hired to meet demand.
 
"The packaging industry is a hidden but huge industry," says the company's marketing manager, Guy Wray. "Think about everything around you that has packaging, and you'll get an idea of the scope of this work."
 
MOCON's expertise lies in detecting moisture and oxygen levels within packaging, as well as other factors. Those two issues in particular can destroy food flavor, affect product safety, and significantly shorten shelf life. After all, nobody wants soggy potato chips.
 
About 90 percent of the company's product development is done locally, but it also relies on scientists and engineers in Germany, China, Texas, and Colorado.
 
"We feel very lucky to have gotten to the point we're at," says Wray. "We've become the Hoover or the Kleenex of the industry."
 
Source: Guy Wray, MOCON
Writer: Elizabeth Millard

Founded in 1991 by entrepreneur Tom Salonek, Intertech has grown from a one-person operation to the largest combined software-developer training company in the state.
 
The firm's consulting services and software development give the company an even greater edge and now with more facility space, Intertech is making a splash nationally as well as locally.
 
Recently, the company moved to a new building, and although it stayed in its hometown of Eagan, it nearly doubled the amount of square footage of its offices and training rooms.
 
In addition to expanding geographically, the company took the opportunity to boost its virtual technology as well, giving its training spaces a high-tech flair that's increased its client base as a result.
 
"People have greater ability to attend classes virtually, and that's significantly increased enrollment for us," says Salonek. "Also, it's driven our consulting to a higher level as well." For example, the company just signed a consulting contract with a firm in South Korea, and will conduct business via the virtual technology at the new facility.
 
Salonek believes that the growth will remain robust, and he predicts that the company should bring in about $12.5 million this year. Several new employees have been added just in the past month, and hiring should continue at a steady pace, Salonek notes, especially in the sales and technology departments.
 
"We're looking forward to building out additional offerings and bringing on more clients, in addition to serving existing clients," he says. "It's an exciting time for us."
 
Source: Tom Salonek, Intertech
Writer: Elizabeth Millard

Sometimes, the decision about whether to "build or buy" can lead to even greater things than a more efficient software system.
 
At least, that's what happened when convention and visitors association Meet Minneapolis began looking for a better database system in 2003. The organization found that a solution didn't exist that was specific to the destination marketing industry. After deciding to build their own, the phones started ringing.
 
"We heard from other convention bureau leaders who told us that if we built a solution, they were interested in buying it," says Mark Lynch, vice president of sales and marketing at iDSS (Internet Destination Sales System), the company that was formed to market the subsequent system.
 
Recently, iDSS noted a significant new enhancement that will provide destination marketing organizations with the ability to measure the economic value of an event, and calculate the return on investment to the local community. In other words, if a city wants to know how much sales tax and lodging tax a certain convention would generate, iDSS could give the answer. Other factors can also be reported, like the anticipated number of jobs created as a result of an event.
 
The advancement comes as part of a technology partnership with Destination Marketing Association International, the trade association for Meet Minneapolis and other convention bureaus. Lynch notes that it should help iDSS get even more traction as it continues to expand.
 
"We're adding new clients every day," he says. "Many organizations have been waiting for the capability that we have to offer. So, we're looking forward to what's ahead."
 
Source: Mark Lynch, iDSS
Writer: Elizabeth Millard

In a January opinion piece in TechCrunch, entrepreneur Jon Bischke suggested the most successful urban leaders are those who view cities like startups. CEOs for Cities, a national network of urban leaders dedicated to creating next-generation cities, will examine that premise at its 2012 Spring National Meeting: The City As a Startup--Creating Demand, Attracting Talent, Taking Risks, and Going to Scale.

The meeting is set for May 17-18 at Great American Ball Park in Cincinnati and is made possible with support from The Carol Ann and Ralph V. Haile Jr./U.S. Bank Foundation. Former AOL Chairman and CEO Steve Case will deliver the morning keynote and also sit on a panel conversation about Startup America.

CEOs for Cities will also release its latest City Vitals report, a framework for measuring the success of cities. Other panels include considering Songdo, South Korea as the planet's smartest city and using the collective-impact approach to catalyze social change. There will also be opportunities to tour Cincinnati attractions and examples of success.

Register here. View a draft agenda here.

Issue Media Group, the parent company of The Line, partners with CEOs for Cities in exploring new options for urban growth.

About 13 years ago, business partners Cameron Henkel and Dave Gooden were both looking for lake property and shared their war stories about going through newspaper listings and calling multiple realtors.
 
"We wondered why there wasn't a one-stop shop for that kind of thing," says Henkel. "So, we decided to create it for ourselves." The pair had been selling computer equipment online, and began adding cabin rentals on their site as well. About a year later, they had about 600 realtors and thousands of properties on their site, LakePlace.com.
 
They decided to expand in 2006 and become a real estate brokerage. That meant giving up their classified-ad revenue and taking a big chance. Henkel says, "We had to make a bet that being a brokerage would be better. It was hard to make that gamble, but it paid off."
 
They added another site to the lineup, LandBin.com, and opened offices in Brainerd, Hayward, and Wayzata. They employ 30 real estate agents and LakePlace.com has become the second most visited site in the Midwest, with 1.5 million visitors a year.
 
"We're growing every day, I'm not kidding," says Gooden. "Hopefully, we'll be making some exciting announcements this year. We have a solid roadmap of where to go."
 
The founders, who've been friends since kindergarten, foresee abundant growth through acquisitions and hiring. And for site visitors, there's finally a place to shop for cabins and land without resorting to the classifieds.
 
Source: Cameron Henkel, Dave Gooden, LakePlace.com
Writer: Elizabeth Millard

Now in its eighth year, the Minnesota Cup is ready to award $200,000 in prize money to innovative entrepreneurs, inventors, and small business owners.
 
Designed to award breakthrough business ideas, the competition has six main categories: bioscience and health IT, clean tech and renewable energy, general, high tech, social entrepreneur, and student. Since 2005, more than 6,000 people have participated in the competition, and finalists from the last three rounds have gone on to raise $45 million in capital.
 
The competition's co-founder, Scott Litman, notes that the program expands every year, which has always been one of its major goals. Also, the number of partners increases--this year, UnitedHealth Group and Proto Labs have signed on as partners, bringing more prize money to the competition.
 
In terms of trends, Litman says he's seen a good deal of energy around high tech ideas in the past few years, and he expects that this year should continue that trend.
 
The program's judges are expecting a last-minute rush--and that's meant literally. Litman says, "About 10 percent of our entries come in during the last hour of the competition, and some come in during the last couple minutes. It gets pretty intense, actually." Entrants have until May 18th to submit their ideas. The contest ends at 11:59 pm on that day.
 
That level of excitement is felt during all aspects of the Minnesota Cup, and Litman is looking forward to another lively round of competition. "We love seeing the entries, and watching people talk about the program over social media," he says. "This should be another great year."
 
Source: Scott Litman, Minnesota Cup
Writer: Elizabeth Millard

To say that Burnsville-based DigitalTown has school spirit is an understatement.
 
The enterprise, founded in 1982, purchased its first web domain in 2005, when the founder, Richard Pomije, was chatting with Kay Joyce, then the principal of Burnsville High School. They talked about how effective it would be to have a site outside the school's official website that connected parents, students, and other community members.
 
Pomije bought www.burnsvilleblaze.com, and then went on a buying spree. The company now owns about 20,000 "school spirit" sites, and CEO Robert Castle notes that they have big plans.
 
"We want to build a powerful, nationwide publishing tool," he says. "We're ready to take this to the next level."
 
The sites only have local sports scores right now, but Castle envisions community-provided content as well as advertising that will give half the revenue back to the schools. The advantage of a school spirit site, he notes, is that schools don't have to manage them, or deal with liability issues that might crop up.
 
DigitalTown has 10 full- or part-time employees, but Castle sees the potential for rapid growth, which would also include hiring. "We've done the hard work in building the sites, and now we're at the point where we'll add the content to get it the rest of the way," he says.
 
Source: Robert Castle, DigitalTown
Writer: Elizabeth Millard

To say that Minneapolis-based Code 42 Software is having a good year already is something of an understatement.
 
In late January, the firm announced that it had secured $52.5 million in venture funding, which will accelerate product development and greatly expand the company's sales and marketing efforts. A few weeks later, the Wall Street Journal published a lengthy, favorable review of its data backup system, CrashPlan.
 
"This year has started with a bang, that's for sure," says Code 42 co-founder and CEO Matthew Dornquast. "We're very happy with how it's been going in terms of growth in the past few years."
 
The company has added about 60 employees within the last year--bringing the total number to 86--and expects to hire more in the months ahead as CrashPlan gains an even broader customer base. In the last three years, Code 42 has experienced more than 500 percent growth.
 
First offered in 2007, CrashPlan was developed as a way to streamline backup. The company developed multiple versions of the product, targeting home users, private and public cloud creators, small businesses, and large enterprises.
 
With the new infusion of financing, Code 42 has become the recipient of the largest venture round ever for a private Minnesota-based software company. Now, that's the way to ring in a new year.
 
Source: Matthew Dornquast, Code 42
Writer: Elizabeth Millard

The Minnesota High Tech Association (MHTA) recently added three new members to its staff, with the positions reflecting a new strategic plan for the organization.
 
MHTA is dedicated to making Minnesota one of the country's top five technology states within the next decade, notes President and CEO Margaret Anderson Kelliher, and by boosting skills in certain areas, the group will be able to move forward on that vision.
 
Tim Barrett joins as STEM (science, technology, engineering, and math) Coordinator, a role that will be instrumental in meeting ambitious goals for more STEM education and outreach in the state.
 
The organization's previous coordinator left to go to law school, Kelliher says. With Barrett stepping into the role, the MHTA has had a chance to reformulate its position so that it focuses more strongly on STEM connections between business and education sectors.
 
"This is about being the voice of businesses that are engaged in science and innovation, and making that vital connection to classrooms," says Kelliher. "We want to strengthen that, and create a science and technology ecosystem that's truly dynamic."
 
Another position was made possible through a grant from the Minnesota Science & Technology Authority: a "SciTechsperience Program Coordinator," who will manage a paid internship program for college students pursuing STEM degrees. Becky Siekmeier, who worked in advertising and marketing at Best Buy for 16 years, will take on the role.
 
A third new hire, Erika McCallum, will act as the organization's Programs and Events Assistant. The three positions are aimed at increasing MHTA's effectiveness and reach, and Kelliher is excited about the direction that the group is taking.
 
"There are so many opportunities around science and technology here, there's so much innovation," she says. "We're happy to be fostering the connections needed to make Minnesota one of the top technology states."
 
Source: Margaret Anderson Kelliher, MHTA
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

In the past year, the economy didn't rebound with as much bounce as anyone would have liked, but a few fascinating things are happening on the way to recovery: the Twin Cities business community seems to be getting closer, more creative, and in some ways, more relaxed. The past year has seemed less like a slog and more like a fresh start.
 
In covering the innovation and jobs beat for The Line, I've spoken to dozens of entrepreneurs, some CEOs of large firms, and quite a few non-profit folks, and the trends are the same across every sector. The recession delivered a blow, certainly, but rather than going right back to business-as-usual, many companies here are seeing success through different measures. They brag about flex time for employees, community-based projects, and buying locally. It's as if the economic storms brought many enterprises under the same roof, and now they've learned that rather than survive independently, they're better off thriving together.

An Incubator Boomlet
 
For example, look toward the business incubator boomlet, and the wealth of services for entrepreneurs, like CoCo, WorkAround, MOJO Minnesota, the Economic Gardening Network, Homegrown Business Development Center, Minnesota High Tech Association, and so many others. The University of Minnesota, in particular, is a powerhouse of advice and skill building. Even the engineering school is teaching its students how to play well together in a business setting. 
 
This level of closeness to each other has created a business community that supports new endeavors so enthusiastically. Look at our recent feature on Kindred Kitchen, an effort in North Minneapolis that supports food entrepreneurs, for just one example, but there are many others. A sampling of companies that got their start this year include Sophia, DogWonderful, BuyerCurious, Pashen, and CRAM.
 
Through strategic hiring and expansion of services and products, many companies are showing a sense of starting anew, even if they've been around for years. For instance, just look at Bulk Reef Supply, an aquarium supplies service that has done such tremendous growth through increased product offerings that it landed on the Inc. 5000 list.

Companies Chillaxin'
 
Finally, there's the relaxation factor. Business can always be a bit of a meat grinder at times, but as companies learned to operate lean and get creative, they started to identify different measures of success, like happiness. As Chris Trifilio, co-founder of Primordial Soup noted, "We don't want to be a 50-person firm. We want to keep going down the path we're on, because it's fun and we love it." That's a sentiment that I heard often this year, leading me to believe that if a company didn't start fresh in terms of operations, then maybe they did in terms of attitude.
 
In the year ahead, I predict that these trends will keep rolling strong, because they contribute to the health of the business community, and make the Twin Cities a strong and vital area. Happy, satisfied entrepreneurs and business owners are creating a business climate that's sweeping away the economic clouds of the recent past with something awfully close to a sunny outlook.

Elizabeth Millard, Innovation and Jobs Editor

With a central koi pond, free lunches for employees (yes, there is such a thing, apparently), and ample space in its new world headquarters, Infinite Campus might seem like a dreamy visit back to the dot-com boom days.
 
But the Blaine-based company is looking toward the future instead. More specifically, the firm focuses on creating cutting-edge technology for the education market, and it's being rewarded with an increasing number of contracts.
 
Recently, Jersey City Public Schools, Chandler Unified School District, and others chose Infinite Campus for better data management capability. Infinite Campus is also keeping ahead of technology, by releasing a mobile portal that will be the first of many mobile learning tools.
 
The company had its start in 1996, when a principal at Centennial High School in Circle Pines challenged his son-in-law, Charlie Kratsch, to do something meaningful for humanity. Working out of the Centennial band room, Kratsch drew on his experience with web-based medical systems to create technology that could help K-12 school districts become more streamlined, cost-efficient, and productive.
 
"Most of our competitors work to give districts what they want," says Karl Beach, the company's evangelist and interim marketing manager. "They gather requirements, and build the tools from there. We're different, because we build what they need. That puts them ahead on the invention curve, and it may be assertive, but it also works."
 
Infinite Campus has about 300 employees in its headquarters, but is doing steady hiring to fill out its space and advance its technology. The company is expanding into tools for school finance and HR departments, and plans to focus on more mobile technology as well.
 
"As we keep moving forward, growth is inevitable," says Beach.
 
Source: Karl Beach, Infinite Campus
Writer: Elizabeth Millard

Central Minnesota just got a little more connected.
 
Minneapolis-based Vaultas, a data center, colocation and business continuity provider, is expanding into the St. Cloud market, following completion of the company's newest data center facility in Alexandria.
 
The decision to build in the area was driven by demand, notes Vaultas president John Unger: "Outstate Minnesota really didn't have a colocation environment that local businesses could use, outside of the metropolitan area. There was one in St. Cloud, but that's somewhat private."
 
During the recent tough economic times, many companies throughout the state increased their use of managed services, making data center usage more popular. Rather than pay for power and cooling, as well as technology licensing, on their own, companies have been turning to data centers like those run by Vaultas to manage their data and drive down costs.
 
Although these types of arrangements can be utilized from anywhere—a company in Duluth could outsource to a data center in Denver, for example—there are advantages to having a data center close by, Unger believes.
 
"Not everyone is so eager to put data into a cloud computing environment," he says. "For some companies, it can be a high risk environment." Also, he adds, having a provider so far away doesn't give an entrepreneur or executive the ability to walk through the data center's doors and check on operations.
 
Factors like these are driving growth for Vaultas, which has been hiring more sales professionals and contractors in the past year, Unger says. More hiring could come in the future as well, if the provider stays on track with its goals. Unger is considering putting more data centers between Minnesota and Utah, taking advantage of the region's chilly weather to reduce overall cooling costs.
 
"Absolutely, we're on a growth track," he says. "We're looking forward to seeing what's ahead."
 
Source: John Unger, Vaultas
Writer: Elizabeth Millard