Innovation + Job News

When the Vikings and Packers line up Sunday night at Lambeau Field, and temperatures are plunging toward 40 degrees Fahrenheit, both teams will likely have a made-in-Minneapolis product in their locker rooms to help them stay warm.

Aurora Naturally counts both teams as customers of its Warm Skin product, a cream that moisturizes and insulates skin, helping the body retain its own heat.

The small company came up with the product 25 years ago. At the time it was making a popular udder cream used by farmers on their cows. With a few alterations, founders Kathryn Frommer and David Schanfield were able to turn it into a product for people.

Since then, the product has been used by everyone from arctic explorers to offensive linemen. Ann Bancroft used the cream to help stay warm on trips to both the North and South poles. Mountaineer Neal Mueller used it on a climb of Mt. Everest.

"We have a lot of bragging rights," says Frommer.

The product is used in less extreme settings, too. Frommer says customers include outdoor photographers, high school ski teams, and other outdoorspeople.

Aurora Naturally employs five people in the Southeast Como neighborhood of Minneapolis. It just added a second distributor, natural product wholesaler Lotus Light, and was considering whether to add a national sales manager to its team.

The recession has had an impact on sales, says Frommer. Much of the companies revenue comes from packaging private label, natural personal care products. Warm Skin's success has largely been on word of mouth, which is why 25 years later they're still educating people about the product and finding new customers.

Source: Kathryn Frommer, Aurora Naturally
Writer: Dan Haugen

A nonprofit whose mission is showing low-income high school students a path to economic self-sufficiency looks to be nearly self-funded in its third year.

Genesys Works is a St. Paul program that offers students in an intensive eight-week IT and professional skills training course before placing them in one-year paid internships.

"We are truly a social enterprise. We operate very much like a for-profit IT staffing company, that just also happens to have a nonprofit mission of helping low-income students of color," says Jeff Tollefson, Genesys Works' director in the Twin Cities.

The organization was founded by a former Compaq executive in Houston. It started a Twin Cities branch in 2008 and launched a Chicago program this year.

Tollefson says about 90 percent of the program's budget this year should be covered by fees collected from its corporate partners, mostly large employers that pay to have students placed at their organizations, much as they would working with an IT staffing agency.

Genesys Works partners with Minneapolis, St. Paul, Richfield, and Robbinsdale school districts to recruit students, who apply for the program in the spring. An eight-week training course begins in June, and the top students are then placed at employers, where they work as IT technicians throughout their senior year of high school.

The program hopes to have a summer class of 150 students next year. It's also going to pilot a finance and accounting program in 2011 with about 30 students.

Tollefson says the response from employers suggests the program is working. Not only is it adding partners, but existing ones are increasing their commitment. Medtronic, the largest employer of Genesys Works students, went from 5 to 11 students this year.

Genesys Works will be recognized with the Innovation Collaboration of the Year Award at the Minnesota High Tech Association's Tekne Awards on Nov. 3.

Source: Jeff Tollefson, Genesys Works
Writer: Dan Haugen

A pair of social-media-savvy sweet tooths are nearing the opening of their artisan donut shop thanks to contributions they raised using a social fundraising site.

Dawn Lee & Laura Kennedy used Kickstarter.com to solicit startup capital for their new business, The Donut Cooperative, which is due to open later this fall at 3507 23rd Ave. S. in Minneapolis.

"We love food. We love local food, and we love sweets," says Dawn Lee. "Nobody had really been doing artisan donuts, or local, sustainable donuts. There's really good options for cupcakes in that way, but not donuts. Other cities have it, and we think Minneapolis is awesome and really deserved good donuts."

The idea of opening their own donut shop started out as a joke, but then one day they asked themselves: why not?

They set up a fundraising page on Kickstarter.com, and then promoted it via Facebook and Twitter. Their goal was to collect $10,000 in 45 days. Instead, they took in over $12,000.

That money is helping them pay for all the small things that really add up when setting up a business: filing city permits, registering their business and trademarks, and finding the right location.

Lee and Kennedy were working to open the shop within two months. Meanwhile, they've been taking their creations out for special events and sharing them with donors to get feedback and build buzz.

Source: Dawn Lee, The Donut Cooperative
Writer: Dan Haugen

A Twin Cities software entrepreneur has announced plans for a new venture called Project Skyway that will aim to connect young entrepreneurs with mentors, resources, and funding.

Cem Erdem, born in Turkey, founded Augusoft in 1994 after reading about the Internet in a magazine on his flight from Turkey to the United States with his new wife.

The company makes online software for education administration. A decade and a half later, Erdem has a management team in place that can run the company without his day-to-day involvement, freeing him up to take on a new challenge.

Erdem says he's decided he wants the next phase of his life to be about helping other entrepreneurs achieve their goals faster, better, and more efficiently than he was able to do.

Project Skyway will be a new-business seed fund and incubator, launching in July 2011. The details are still coming together, Erdem admits, but above all he wants it to be a connector.

Erdem envisions a program that will build connections among ideas, entrepreneurs, investors, and other innovation hubs, and bring them together both online and in physical space.

He believes there are probably would-be entrepreneurs attending community colleges, as he did, who are not being reached out to. He wants to use his education connections to cast a broad net for potential entrepreneurs and bring them into an innovation community.

"Lots of people have e-business ideas, but they are not necessarily the programmers. They don't know how to take a concept to the virtual world, and we can help them with that," says Erdem.

Some of the other values that he's making a priority as he develops the program include a focus on long-term value, ethical practices, and making sure the program is accessible.

Erdem admits it's a "high-level model" right now. He's prepared to spend his own money getting the program off the ground. He's not seeking funding help, but he is seeking ideas.

Erdem says people looking to get involved should contact him at [email protected].

Source: Cem Erdem, Augusoft
Writer: Dan Haugen

Another prize should help extinguish any doubts about EarthClean's potential.

The Minneapolis startup, which produces a non-toxic, biodegradable firefighting gel, was one of three winners named last week in the region's first annual Cleantech Open competition.

Other winners for the Cleantech Open North Central region were Xolve, a Platteville, Wisc., company that makes nanocoatings for energy generation and storage, and Silicon Solar Solutions of Rogers, Ark., whose technology improves silicon-based solar power cells.

NewWater, a startup that's using University of Minnesota technology to develop an atrazine filter for municipal water treatment plants, won given a regional sustainability award.

EarthClean (which we've previously written about here and here) was also the grand prize winner in this year's Minnesota Cup entrepreneur competition.

The field for the Cleantech Open North Central competition also included companies from Iowa, Kansas, Nebraska, North Dakota, and South Dakota.

"That's a really important part of the program, to connect all these different geographies and create this ecosystem across the entire Midwest," says regional director Justin Kastor.

The three winners will receive a prize package that includes cash and services worth up to $30,000. They'll also compete for a $250,000 prize at a Nov. 17 national competition.

Next year's North Central competition is likely to include companies from Ohio and Illinois as the Cleantech Open prepares to launch a separate Midwest division in 2012.

The organization aims to help create 100,000 green-collar jobs in the United States by 2015.

Source: Justin Kastor, Clean Tech Open
Writer: Dan Haugen

A Twin Cities solar installer hit a growth spurt in 2010 thanks to lower prices and new rebates.

Innovative Power Systems, which installs solar electric and solar thermal panels, as well as wind turbines, says sales are up about 50 percent compared to this time last year.

The company's growth had previously been averaging about 15 percent to 20 percent.

Sales manager Jamie Borell says the cost of solar electric panels has been cut in half over the past few years. Meanwhile, new state and federal incentives are covering more upfront costs.

The changes are making solar projects more accessible to middle-class budgets, he says.

"I think there's a growing awareness, as well, about where our electricity comes from, and people want cleaner options for their electricity," says Borell.

Since this time last year, the company has grown from 14 employees to 23 (including outside sales reps) and moved from southeast Minneapolis to the western edge of St. Paul. The new office and warehouse space gives it better freeway access and more room to grow.

Meanwhile, there's more competition for the 20-year-old solar pioneer. Borell estimates the number of solar installers in the Twin Cities has grown from about half a dozen a few years ago to more than 50 today. One factor besides the prices and rebates: the recession has pushed some electricians to update and diversify their skills with renewable energy.

Source: Jamie Borell, Innovative Power Systems
Writer: Dan Haugen

What if companies were to pledge a portion of their sales to help fight global poverty?

Nick Pearson believes it would have a substantial impact.

Pearson is founder of 1% For Humanity, an organization seeking to sign up companies to donate 1 percent of their revenues (that's revenues, not profit) to humanitarian causes.

"It's been challenging, for sure," says Pearson, of Robbinsdale. "A lot of entrepreneurs are just getting started and they're trying to build their brands in a really tough economy anyway."

It's taken Pearson longer than he hoped to get the project to where it's at today, but he's not pessimistic. Last year, five members raised over $100,000 for its network of charities.

Pearson, who used to work in real estate and property management, has made 1% For Humanity a full-time volunteer endeavor. He launched the organization in March 2009.

So far he has seven participating companies, which file annual reports with Pearson, who certifies that they are giving the amount they claim to humanitarian-related nonprofits.

1% For Humanity does not take a cut of the donations. Its revenue comes from separate donations and from a marketing fee for member companies to use its logo.

Pearson says he knew he didn't have a passion for real estate, and that he was inspired by the success of 1% For The Planet, which raises millions for environmental causes.

Pearson believes there's a similar need for humanitarian causes. Today, he's focused on continuing to get the word out in order to find more potential partners.

Member companies include two Minneapolis firms, 10,000 Pixel Agency and Bull Run Roasting Co.

Source: Nick Pearson, 1% For Humanity
Writer: Dan Haugen

Luis Fitch makes sure marketers' messages don't get lost in translation.

Fitch founded the UNO Hispanic branding agency in Minneapolis in 1999. A gallery exhibit opening Thursday at Metropolitan State University will celebrate a decade of his work.

The Mexican-born creative director previously worked for agencies including Fame, a division of Martin Williams, and John Ryan Group, which specializes in branding for banking.

Fitch started UNO after seeing U.S. Census figures that confirmed what he already knew: that the U.S. Hispanic population was surging in terms of size and purchasing power.

UNO does some work in Mexico and Latin America, but its focus is on the U.S. Hispanic market, which is incredibly diverse, as Fitch recently explained to a new client:

"They wanted to go after the Latino market, and we said, well, which Latino market?"

UNO uses a method called Filtros (or "filters") to better define who a client is seeking to target. The branding strategy will vary depending on things such as language, religion, and country of origin.

Much of the agency's work involves in-store retail displays or package design. It also helps local advertising agencies adapt their campaigns for Hispanic audiences.

The company has five employees, along with a circle of freelancers. Clients include local Fortune 500 companies such as Target, General Mills, and Nash Finch.

"Ten Years of Hispanic Posters by Luis Fitch of UNO Branding" opens with a reception 4-7pm, Oct. 14, at the Gordon Parks Gallery (645 E. 7th St., St. Paul).

Source: Luis Fitch, UNO Ltd.
Writer: Dan Haugen

A revolving, low-interest loan program by the city of Minneapolis recently marked its 1,000th loan to a small business in the city.

City officials celebrated the milestone last week with an event at the Blackbird Cafe. The restaurant was the recipient of the 1,000th loan.

"These are the right investments for government to make--and now more than ever, this is the right time to do it," said Minneapolis Mayor R.T. Rybak.

The investments consist of 10-year, 2-percent interest rate loans, which must be matched at least dollar-for-dollar by loans from private lenders. "It's definitely a way to encourage banks to not turn off the spigot, to keep the funds flowing," says Bob Lind, the city's director of business finance.

Since the program started in 1988, it's made 1,000 loans totaling $28 million, and leveraged another $87 million in private investment. The city estimates the program has helped create more than 2,000 jobs and retain another 9,300. The average loan size is $25,000, and more than 97 percent have been fully repaid.

The Blackbird Cafe used a $75,000 loan from the program to relocate after a Feb. 18 fire destroyed its previous home at W. 50th St. and Bryant Ave. S. Owners Gail Mollner and Chris Stevens hosted last week's event at their new location at 3800 Nicollet Ave.

"The whole idea was to get that investment and make sure those commercial corners and commercial nodes continue to  thrive, continue to look good, continue to be occupied," says Lind.

In addition to the mayor, speakers included Robert Stephens, founder of the Geek Squad, which received financing through the program in 1998.

Source: Bob Lind, City of Minneapolis
Writer: Dan Haugen

Paging Dr. Device Overload...

A recent survey showed nearly three out of four physicians carry around a smartphone. Yet, when it comes to receiving hospital alerts, many still have to carry around a separate tool belt of pagers or hospital-specific devices.

A fast-growing Minnetonka software company is working to free up some pocket space for doctors with a pager-replacement smartphone application.

Amcom Software has sold hospital call-center technology since the mid-80s. Chris Heim and Dan Mayleben bought the company in 2007 and have since grown annual revenue from $11 million to about $50 million.

Some of that growth is due to acquisitions, says Heim, but some comes from growing interest in new products such as Amcom Mobile Connect. The app lets physicians receive pages on their BlackBerry, iPhone, or Android smartphones.

"We've got pictures of doctors carrying five different devices," says Heim. "What this application allows them to do is consolidate down to one device."

Since releasing the product in December, several major hospital systems have bought in, including Park Nicollet Health Services in St. Louis Park.

"I think there's an increasing awareness within healthcare that communication is the root cause of a lot of inefficiencies," says Heim.

Heim believes better communication can lead to better patient care. Amcom Mobile Connect improves on the pager by automatically sending confirmation messages when alerts are received and read, and allowing text replies.

Amcom has about 230 employees and was seeking to hire another 10 more.

Source: Chris Heim, Amcom
Writer: Dan Haugen

The BioBusiness Alliance of Minnesota supports businesses that are working with materials on the molecular and cellular level.

In other words, stuff that's too small to see with the naked eye.

Last week, the organization unveiled an original artwork it commissioned that it hopes will help Minnesotans visualize the type of work it promotes.

"We wanted to create a symbol that will help to connect the individual to the science, so that people can feel part of it and connected to it," said Dale Wahlstrom, CEO of the Alliance.

"Unfolding the Natural History and Science of Life" is a 3'-by-6' print by multimedia artist Lynn Fellman, who specializes in science-inspired art. Fellman reversed the scale of her subjects; the largest footprint goes to proteins and DNA strands, while animals and plants are pictured smallest.

Wahlstrom said the goal is for the image to become an identifiable symbol for the life-science community the Alliance represents in the state. It also plans to sell notecards and posters to raise funds for its Destination 2025 mission.

The image is hanging in the BioBusiness Alliance's office. (A small version image can be viewed on its website here.)

Source: Dale Wahlstrom, BioBusiness Alliance of Minnesota
Writer: Dan Haugen

A pair of recent announcements put Minnesota at the forefront of digital government.

A survey by the Center for Digital Government gave Minnesota's state government a 'B+' grade and said it was "trending up" when it comes to using digital technology to better serve citizens and streamline operations..

Meanwhile, the state's Office of Enterprise Technology announced last week that Minnesota is the first state to move its collaboration and communications software into a cloud computing environment. (That means the applications are stored online rather than in servers owned by the state.)

The Center for Digital Government report highlighted Minnesota's innovation in the areas of finance and administration and energy and transportation. Only four states received a grade higher than Minnesota's.

An example of the state's recent successes, says OEM spokeswoman Cathy de Moll, was consolidating all state agencies into one centralized e-mail system. Innovations like this let the state "put our attention and dollars toward the kinds of applications that are directly related to citizen services," she says.

The announcement came two days after the state announced a first-of-its-kind cloud computing arrangement with Microsoft's Business Productivity Online Suite.

The move means the state no longer has to maintain its own servers and hardware for e-mail, file-sharing and other collaboration and communications programs. Instead, it leases those resources from Microsoft, which keeps the state's data in a private cloud environment.

Source: Cathy de Moll, State of Minnesota
Writer: Dan Haugen

A recent campaign by Preston Kelly encouraged people to lose weight and get rid of their "fatpants." Meanwhile, the Minneapolis ad agency is loosening its own belt.

The sixty-year-old agency has added seven new people this year, bringing its team to a total of 45 people.

Chuck Kelly, president and principal, says the agency has seen growth from both existing and new clients. Last year, for example, it added Grand Casino to its client list, which also includes HealthPartners, the Mall of America, and the Minnesota Zoo.

What's working? Kelly says customers are coming to them for "iconic ideas."

"What we say is an iconic idea is an idea that motivates people and inspires them to take the desired action," says Kelly. "I think our insights lead to iconic ideas, and iconic ideas lead to results."

Preston Kelly was named Advertising Age's 2010 Midwest Small Agency of the Year in July. Last week, it won a 2010 Radio Mercury Award for a campaign it did for the YMCA, which encouraged people to lose weight and then donate their old "fatpants" to charity.

"All of a sudden there is a double good," says Kelly.

Kelly says the agency is growing its content management and working on new digital strategies to balance  traditional advertising.

Source: Chuck Kelly, Preston Kelly
Writer: Dan Haugen

Online advertisers go to great lengths to gather information about web users. They glean terabytes of data from web searches, social media profiles, and other sources in an attempt to target certain advertisements to certain audiences.

The problem, according to entrepreneur Aaron Weber, is that a lot of this information is outdated, incomplete, and still dependent on guesswork. For example, are those baby clothes you ordered a gift, or are you a new parent?

Weber's solution: instead of forcing advertisers to cyberstalk and guess what consumers want, why not let consumers just tell advertisers what they're interested in?

Weber is co-founder of Inveni, an online "taste profile" that lets Internet users consolidate product ratings from various websites and choose to anonymously share them with advertisers. In exchange, users get help finding other products they may like and hopefully get more relevant advertising at sites they visit.

"The whole goal is to align the interests of advertisers and consumers," says Weber.

The service launched in beta last week. For now it only supports movies and television programs, but Weber says Inveni plans to expand to include books, music, video games, and perhaps other products and restaurants after that.

Inveni will be incorporating display advertising on its site in the coming weeks. Users who choose to share information with advertisers will also have their anonymous information stored in a web cookie so advertisers on other sites can match ads to their taste profiles.

Weber previously co-founded W3i, an online software marketing company that he and his co-founders grew from their dorm rooms in St. Cloud to a $30-million-a-year company.

Source: Aaron Weber, Inveni
Writer: Dan Haugen

If you're a bicycle commuter, you owe a debt of thanks to Steve Flagg, owner and founder of Quality Bicycle Products (QBP). Flagg, who in September was named the University of Minnesota's 2010 Entrepreneur of the Year by the Carlson School of Management, not only leads one of the country's largest bike distribution centers, but uses his company as a vehicle for promoting cycling as an alternative to cars.

From its launch in 1981, QBP has fueled rapid growth by serving as the go-to source for hard-to-find bike components. From a one-man operation, it's grown to employ some 450 workers who service 5,000 independent dealers around the country.

Equally important, says Flagg, is his company's commitment to advocacy. "We have a full-time advocate on staff," he explains, whose job it is to work with politicians and community organizations to build trails and generally support the cycling community. "Our values are deeply integrated into our business."

Given Flagg's focus on cycling, it's not surprising that these core values extend to environmentalism. "We have a strong environmental ethos," he says. QBP operates out of a Bloomington warehouse that earned one of the of the nation's first LEED Gold ratings for a warehouse.

The headquarters sits adjacent to the Hyland Lake Park Reserve bike trail system, with commuter links to Minneapolis. QBP rewards employees who commute by bicycle with a four-dollar-a-day bonus.

While the company's been hit by the downturn, they've maintained positive growth--a fact that Flagg attributes at least in part to being a values-driven business. "There's a huge payoff," he says. "Not only are you doing the right thing, but at the end of the day, you get lower turnover and more motivated employees."

Source: Steve Flagg, Quality Bicycle Products
Writer: Joe Hart