Crowdfunding, the process of raising money for startups, small businesses or charities, has become an increasingly popular way to get investments for products or ideas that wouldn’t otherwise get off the ground through traditional lending institutions.
 
But under the Jobs Act, the rules and restrictions on crowdfunding are changing. JumpStart and Ulmer & Berne will host a seminar, Crowdfunding: From Legislation to Reality, on Monday, May 15 to discuss why the legislation was necessary and what it means for small businesses.
 
“We’re going to go through the nuts and bolts of what the legislation permits and what it doesn’t permit,” says Sean T. Peppard, counsel with Ulmer & Berne. “Essentially, the idea of crowdfunding is raising small amounts of money over the internet."
 
“Right now, crowdfunding is viewed as a savior for startups and I think there are a lot of people in the community pre-buying because they care about what’s being made," he adds." It’s people investing in small business.”
 
The seminar will feature a panel of experts with various experiences in startup fundraising -- from angle and venture investors to small successful businesses.
 
Panelists include Peppard; Michael Belsito of eFuneral; Todd Federman of North Coast Angel Fund; Candace Klein of Bad Girl Ventures and SoMoLend; Chris Sklarin of Edison Ventures and Richard Stuebi of Early Stage Partners.
 
The free event will be held at the Ulmer & Berne offices, 1660 West 2nd Street, Suite 1100, from 3:30-6:15 pm. Parking at Tower City will be validated. If the demand is great enough, Ulmer & Berne will repeat the event later this spring.

 
Source: Sean T. Peppard
Writer: Karin Connelly

Weapons of Mass Creation Fest, an annual gathering of Cleveland creative types now in its third year, is returning like a blockbuster summer sequel to the Gordon Square Arts District from June 8 through 10. Organizers expect over 1,000 attendees to register, adding to the weekend excitement already taking place in the Detroit Shoreway neighborhood.

The conference, which will feature 20 speakers, 20 designers, and 30 bands on two different stages near W. 54th and Detroit, coincides with Gordon Square Arts District Day, a neighborhood-wide celebration on Saturday, June 9.

"One of my goals was to make Cleveland a destination, to make it a creative powerhouse," says Jeff Finley of Go Media, creator of WMC Fest. "When people think of creative places in the U.S., I want them to think of Cleveland."

WMC Fest is helping to achieve that goal by fostering connections among Cleveland's creative community and bringing in speakers and attendees from outside the region. "Some of the speakers from last year are coming back, and that speaks volumes about the attraction we're building here," Finley says.

This year's WMC Fest will incorporate Saigon Plaza as a kind of headquarters for the event, allowing for even more music and a more compact event experience. Finley hopes to expose attendees to the Gordon Square Arts District, which he says is a prime example of a neighborhood that nurtures creativity.

Tickets to the WMC Fest cost only $60, thanks to company sponsorships and fundraising by Go Media, making it one of the most affordable events in town.


Source: Jeff Finley
Writer: Lee Chilcote

Mentor native Erin Huber wasn't exactly sure how she would bring together her passion for water conservation and international development when she finished graduate school. She'd grown up in a blue collar family that spent summer weekends camping near lakes, streams and rivers, and those early experiences nourished her love of fresh water.

After completing her master's degree in Environmental Studies at the Levin College of Urban Affairs at Cleveland State University, she decided to create her own nonprofit organization to bring together these passions under a single roof.

Drink Local Drink Tap is a new organization that works to educate Clevelanders about the pollution that is created by drinking plastic bottles of water and the need to conserve fresh water locally and internationally. To educate both youth and adults, Huber creates water-themed art installations and provides free environmental education at schools.

Next month, Huber will fly to Uganda, where she and her team members will bore a 70-meter hole to provide fresh drinking water to hundreds of residents in a small village there. Currently, children must walk over a mile to find a water source near the village, and the water isn't clean or safe. Huber and her team members also are filming a documentary entitled Making Waves from Cleveland to Uganda that will be released at next year's Cleveland International Film Festival.

For Huber, the project is about sharing the water wealth of the Great Lakes -- which hold 20 percent of the world's fresh water -- with areas in dire need.

Huber, who describes her group as a "very nonprofit organization," is still raising funds for the project. You can donate to the cause on the organization's website.


Source: Erin Huber
Writer: Lee Chilcote

For a teenager, it's the opportunity of a lifetime to spend a week sailing on a 150-foot tall ship -- tying ropes, keeping watch and sleeping in hammocks while learning to work together as a close-knit team.

Through Project YESS -- Youth Empowered to Succeed through Sailing -- a handful of lucky teenagers are offered this rare opportunity each summer in Cleveland.

The program, which is organized by the Rotary Club of Cleveland, began in 2010 during the Tall Ships Festival. It has continued thanks to the dedication of a small group of volunteers who have raised funds for the project, which costs at least $1,500 per student. The group spends months identifying students with leadership skills who would not be able to afford such an experience.

On Friday, May 11th, Drinks for Do Gooders will host a benefit for Project YESS. Tickets cost $20 and include a drink ticket and appetizers. There will also be a separate raffle to win two free round-trip tickets from Southwest Airlines.

"Navigation is our theme, and it's not just about navigating on a ship," says Eileen Smotzer, a Rotary Club member who has helped to spearhead the YESS program. "Hopefully that message transcends to navigating through life and community. These students are the future leaders of our country and region."


Source: Eileen Smotzer
Writer: Lee Chilcote

What began in 2005 as a desire to order a Rascal House pizza online rather than over the phone -- as ONOSYS did when launched by college friends Stan Garber, Oleg Fridman and Alex Yakubovich -- has grown into the second largest leader in mobile and online ordering software for the restaurant industry.
 
Last week, Living Social acquired ONOSYS, a move that fits squarely into Garber’s plans and expectations for the company.

“We we’re talking about the idea of working together for a while,” says Garber. “It just made sense. We definitely had a vision it was going to grow this big.”
 
ONOSYS has a track record of 100-percent growth annually. They saw $100 million in sales last year and represented more than 75 brands across the nation.
 
Financial details of the sale were not disclosed. Living Social plans to open offices in Cleveland, which ONOSYS will run. ONOSYS has grown from five people in 2008 to 20 employees today. “Our goal is to get to 35 to 40 by the end of the year,” says Garber. “We’re going to continue what we’re doing.”
 
The acquisition is not just good for ONOSYS. Garber sees the move as a positive impact on Cleveland as well. “It’s a bright spot for Cleveland,” he says. “It’s more fuel on the fire for attracting more tech companies to Cleveland. This is a good example that young entrepreneurs in Cleveland don’t need to go to New York, Chicago and L.A. to get recognition.”
 

Source: Stan Garber
Writer: Karin Connelly

Is 2012 the year of the collective? Based on the DIY art spaces that are springing up across the city, it would certainly seem like a trend-in-the-making.

BuckBuck, a new collaborative art space that is located in a former auction house, is the latest creative hotspot to join the list. Founders Joe Lanzilotta and Derek Maxfield are recent college graduates who started the gallery and co-op style workspace after obtaining fine arts and graphic design degrees from Ohio University and being faced with a tight job market.

Yet the founders' desire to start their own creative space went beyond their dim job prospects, Lanzilotta says. They began hunting for cool, affordable space because they wanted to do their own thing and shape their own destiny.

"We wanted a spot we could build our own reputation from," says Lanzilotta, who seized the 5,700-square-foot space at 3910 Lorain Avenue after the sympathetic landlord enticed them with a couple months free rent and an affordable lease rate. "After I completed an internship in Chicago, I had the feeling that I really wanted to come back to Cleveland and create something on my own."

BuckBuck recently hosted its first art show in the newly-created gallery -- its founders literally erected walls and hung artwork with only a few weeks notice -- during this year's Palookafest event. The annual chili cook-off and competition was created by Ian P.E., the owner of Palookaville Chili, which opened in an adjacent storefront in early 2011.

Thanks to a proliferation of cheap, available storefronts on Lorain, Lanzilotta says that a small creative community is springing up. Recently, a furniture maker moved in next door, and there is also a new tattoo shop across the street.


Source: Joe Lanzilotta
Writer: Lee Chilcote

LeanDog Labs, LaunchHouse and Bizdom have gotten together to host a Startup Mixer today from 6 to 8:30 p.m. at LeanDog Labs. The event intends to bring together developers, designers and other IT types with entrepreneurs launching a new product or service but in need of a CTO.
 
“A lot of people have wonderful ideas and a business background, but they’re usually missing that technical background,” explains Andradia Scovil, recruiting leader for Bizdom Cleveland. “These days you have to have a CTO to run a business. If we can bring together these business people with people with a technical background we can make things happen.”
 
While the three organizations have slightly different services, the mixer serves the common goal of fostering the growing IT industry in Cleveland. “For the first time in a long time we’re seeing momentum building,” says Nick Barendt, LeanDog Labs director. “If we can help play matchmaker, get these different networks into the same room, it will be good to see more collaboration.”
 
Scovil agrees. “At the end of the day we all agree that Cleveland needs entrepreneurs to thrive and be a city known as a tech hub,” she says. “Cleveland should be known as a place where people go to grow their businesses.”
 
The organizers limited attendance at the mixer to 100 people, simply to provide a more intimate networking experience for the participants.

 
Source: Nick Barendt, Andradia Scovil
Writer: Karin Connelly

Bad Girl Ventures has teamed up with Samuel Adams Brewing the American Dream and Accion to host a Speed Coaching event on Monday, May 7 from 6 to 8:30 p.m. at the COSE offices. The event targets startups in the food and beverage industry.
 
“People in food and beverage have a really hard time getting funding,” explains Rachel Czernin, director of marketing and development for Bad Girl Ventures.

Small business owners spend 20 minutes at each station and receive personalized coaching from more than 20 local professionals and Sam Adams experts. Consulting stations will cover topics including sales and distribution, packaging, marketing and e-commerce, legal and financing.

Since 2008, Samuel Adams Brewing the American Dream has been providing low and modest income small business owners in the food, beverage and hospitality industry with the resources to start and grow their businesses. Accion, a non-profit microlender, provides loans, coaching and access to networks for small businesses. Loan consultants will be at the event to talk about how to access loans and other financing.

Cleveland is an ideal location for a food service speed coaching event because of the growing number of such businesses in the area.

“In Cleveland the number of businesses is higher than in other cities because Cleveland has established itself as a destination for good food,” says Czernin. “And there’s no food incubator in place, no one really fostering food and beverage specifically.”

BGV plans to have about 75 participants at the event. They will host a similar event in Cincinnati the following day. “It’s really an opportunity to meet experts in the field,” says Czernin. “It’s an opportunity to find funding. And it’s free.”
 

Source: Rachel Czernin
Writer: Karin Connelly

For Dan Miller, making a living as a visual artist in Cleveland meant selling his motorcycle, emptying his savings account and finding a warehouse where he could build his own walls and hang lights. The owner of the new Rotten Meat Gallery on East 40th Street between Payne and Perkins says it's all worth it to showcase the city's underrecognized art scene.

"I really wanted to do my part to encourage people to stay here and grow Cleveland as an art market," says Miller, a painter who also uses the building as his own studio. "Markets like Chicago and New York are saturated, and there's a lack of pretension here. We're an industrious city, yet we also have a strong history of culture in places like the Cleveland Museum of Art."

Rotten Meat Gallery is a launchpad for new, emerging artists as well as a place that celebrates established local talent, Miller says. The formerly industrial space is an artist's haven that boasts exposed brick walls and fourteen foot ceilings.

Although Cleveland's art scene is small and tight-knit, Miller hopes that others will follow his lead and establish DIY art spaces that help the city's art scene thrive and grow. "One of the best ways to revitalize an area is to get artists there."

Rotten Meat's next show, "Tab A, Slot B," features Rust Belt Welding artisans Grant Smrekar and Lou Erste, who will showcase their functional sculpture and furniture that is built out of reclaimed wood and steel. The opening reception takes place this Friday, May 4th from 6-10 pm at 1814 East 40th Street, Suite B.


Source: Dan Miller
Writer: Lee Chilcote

New entrepreneurs need all the help they can get when launching a business. The Incubator at MAGNET is launching the Beta Space to help students and entrepreneurs get off to a good start. The 2,000 square-foot space on E. 25th Street offers co-working space, mentorship and free advice from service providers.
 
“There are two main components to the program,” says David Crain, director of entrepreneurial services for the Incubator at Magnet. “One is a co-working space for students with a focus on advanced engineering. Second is small businesses and entrepreneurs can schedule free one hour meetings to get advice and ask questions to our service providers.”
 
Service providers in the Beta Space include finance, marketing and legal service providers. Membership is not required to take advantage of the services. Entrepreneurs can schedule up to four one-hour meetings a month.
 
The Beta Space aims to be a place for networking, mentorship and a mix of experience. Presentations and other social events are also planned. “We’re regionally focused,” says Crain. “Any entrepreneur or small business in Northeast Ohio is welcome.”
 
The Beta Space has 15 service providers signed up to offer advice. Crain expects to have 25 to 30 providers total -- all donating their time to help small businesses.
 
“On the service side, these are folks who work with entrepreneurs and know they need a ton of help,” says Crain.
 
The Beta Space officially opens May 7.
 

Source: David Crain
Writer: Karin Connelly

This week, a pair of Cleveland Heights residents and avid home brewers launched BottleHouse Brewery in a 6,200-square-foot storefront on Lee Road that had been sitting vacant for more than a decade. The new venue, which will feature craft beers, original brews and a brew-on-premise facility that will open this summer, celebrated its grand opening Tuesday after a year and a half of work.

"It all ties in with bringing craft beer to the community," says Brian Benchek, a former glass-blowing artist. His business partner, Dave Schubert, previously worked as a fuel cell technician. "It's a place for the community to gather."

BottleHouse Brewery opened its tasting room this week. In a month, the venue will begin serving its own original beers. A selection of bourbons, meads and wines also are sold, as are pierogis and Bavarian sausages from local purveyors. The brew-on-premise option will be rolled out this summer. Eventually, the duo plans to sell home brewing equipment, as well.

Benchek and Schubert began talking about the idea for their dream pub during long, painfully sober drives home from the Brew Kettle, a popular brew-on-premise facility located in Strongsville. "There's a one-year wait there currently," Benchek says. "A lot of their customers are from the East Side. When we went, one of us would always be drinking less because we'd have to drive home."

Eventually, Benchek and Schubert plan to manufacture and distribute their own beers. Benchek says that the BottleHouse will tap into unmet demand, and cites the large home brewing community as one reason why they'll be successful.


Source: Dave Benchek
Writer: Lee Chilcote

Matt Mastrangelo knows first-hand the hassles of putting together a group outing to an Indians or Browns game. After nearly 10 years in group sales for both sports teams, he witnessed the amount of work staffers put into organizing a group outing.
 
“It was in the Stone Age,” he says. “Figuring out the paper flyers, who wants how many tickets, how much they cost, collecting cash and checks. I thought there was something I could do to alleviate that work.” So in March, Mastrangelo created GroupAide, an online system for organizers of group events to manage the ticket sales.
 
Organizers go to the GroupAide site, set up an event page that includes all the details of the event and send email invitations to the group. Attendees can view the seating chart and buy tickets. It’s free to set up but a service fee is attached to each ticket sale.
 
“So if they’re sitting at home one night, they can just go to their event page and place an order really quickly,” says Mastrangelo. “We provide sales support, who bought tickets, how many seats were sold and how much money has been collected.” With a click of the mouse, the organizer can issue a sales report and collect the money for the event.
 
“Maybe it’s just from being around it for so long, but I don’t feel like I’m reinventing the wheel or changing the world,” says Mastrangelo. “I’m just putting together a way to promote and organize an event.”
 
Mastrangelo already has a few clients through GroupAide, from sporting events to a ski race and even a poinsettia sale. Right now he is still operating GroupAide out of his house in Lyndhurst, but hopes to grow as people catch on to GroupAide.

 
Source: Matt Mastrangelo
Writer: Karin Connelly

Registration for the 2014 Gay Games (GG9) begins in May. This represents an opportunity to sell Northeast Ohio as a welcoming, inclusive region to a global audience, says GG9 Director Tom Nobbe.

"Cleveland represents a blank slate to many people in Western Europe and Asia, and that's both a challenge and an advantage," he says. "We have a compelling story to tell. We can position our region as not only welcoming to outsiders, but also as inclusive."

The Gay Games is a global sports and culture event that is coming to Cleveland and Akron August 9 through 16, 2014. It is one of the largest multi-sport festivals in the world that is open to all -- regardless of skill level, age (as long as you're 18 or over), sexual orientation or physical challenge. The weeklong festival is expected to draw more than 10,000 participants, along with an estimated 20,000 additional visitors, spectators, performers and volunteers.

GG9 has recruited more than 100 active volunteers to serve on nine committees that will promote the event. Local creative agencies such as Brokaw, Aztek and Consolidated Graphics Group are providing pro bono marketing services.

Nobbe wants to enlist Clevelanders to help promote the games and welcome participants while they're here. "This is going to change the region," he says. "Participants are going to spend money on hotels and restaurants."

"This is an opportunity to say, 'We've got a vibrant LGBT community,'" he adds. "We may not have Boystown, Chelsea or Castro, but that's because we're comfortable going to any community in Northeast Ohio."


Source: Tom Nobbe
Writer: Lee Chilcote

Now that the urban farming movement is becoming steadily more mature, cities are looking beyond backyard hens and market gardens to longer-term agricultural land use policies. They can and should learn from what works in other places while also advocating for better public policy at every level.

These were the messages conveyed at a forum on urban agriculture that was held last week at Cleveland State University. Kimberly Hodgson, a planner and public health advocate from Vancouver, Canada, said that Cleveland is considered a leader in the new agrarian movement, but that U.S. and Canadian cities have much to learn from each other.

Baltimore completed a study to prioritize and focus urban agriculture in needed areas, Hodgson told an audience of 100-plus planners, farmers, students and lawyers. Minneapolis conducted an analysis to determine which parcels of land have low value for development and would thus be appropriate for urban farming.

The goal of such plans, Hodgson said, is generally to promote and support equal access to urban farming and gardening, create economic opportunity for residents, reduce regulatory barriers to farming and expand agricultural production.

Other examples Hodgson cited included Vancouver, which has developed urban agriculture design guidelines, and Baltimore, which hired a Food Policy Director using money raised from area foundations. Within six months, the new Director had leveraged enough money on her own to fund the position without subsidy.


Source: Kimberly Hodgson
Writer: Lee Chilcote

Recently, an artistically-minded student at Glenville High School was so inspired by his school's first-ever Sustainability Awareness Day that he painted a rain barrel with the school's signature "G" logo and displayed it at last week's inaugural event.

"It was kind of like a small-scale science fair," says Anthony Body, Community Organizer with the Famicos Foundation, a nonprofit community development organization that serves the neighborhood and hosted the event at its Community Service Center on Ansel Rd. "Each student created a display," which included hydroponics, aeroponics and rain barrel displays.

The program is part of an effort to imbue sustainability practices into Glenville in partnership with residents. The goal is to teach people about sustainability, help them grow and access healthy, local food and make them more self-sufficient. Famicos has partnered with the NEO Restoration Alliance, a nonprofit that promotes community gardening and green jobs, to create the program.

"At first, it was like pulling teeth," says Body of his experience working with high school students. "Then they bit into it more and had more hands-on experiences. We went on field trips to the Rockefeller Greenhouse and Galleria and they learned vermicomposting. They saw how it could relate to their homes."

Although most of the students do not have gardens at home, Body says that two students have started gardens at their homes and one actually now has a hydroponics system. "It opened their eyes," he says.

Body says the area is a "food desert," and that most of the local corner stores do not sell fresh produce. He touts the Circle105 Farmers Market, which is now in its second year and kicks off June 15th, as a viable alternative. The farmers market will accept food stamps and offer additional specials for residents this year.

"I see a lot of people who leave Glenville and never come back and engage the youth," says Body, a graduate of Glenville High School as well as Malone University in Canton, Ohio. "The youth need to be educated on how to do this."


Source: Anthony Body
Writer: Lee Chilcote

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 conservation 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.

Travis Peebles, who co-owns Blazing Saddle Cycle, displays a Roadmaster bicycle that was made about 80 years ago by the Cleveland Welding Company, located at W. 117th and Berea Road. The rusted, 40-pound bike is not for sale, yet it adorns the shop as a proud reminder of cycling's rich local history.

It is perhaps a little known fact that both Cleveland and Ohio have a rich history in the annals of bike history (those crazy Wright brothers started it all with a Dayton bike shop, after all). Our region's tradition of making bicycles is intertwined with our manufacturing history. That deep tradition will be on display this Friday, April 27th at the Greenhouse Tavern during "Respect the Bike: Ohio Built with Ohio Pride," an exhibition of historic and contemporary Ohio bike builders.

"Cleveland and Ohio were huge springboards for cycling," says Peebles. "From the 1890s through the 1900s, there were tons of bikes that were made in Cleveland."

Respect the Bike will feature a wide range of bicycles from pre-1900 bikes made in Northeast Ohio to contemporary bikes built by local, entrepreneurial frame builders such as Rust Belt Welding, Carmen Gambino and Dan Polito.

Peebles, who admits to being "borderline obsessed" with hunting for old bicycles and makes a living restoring '70s and '80s era steel bikes, partnered with the Greenhouse Tavern because of its commitment to local foods and cycling.

Respect the Bike is also billed as a kick-off to Cleveland Bike Month, which takes place in May. Attendees are encouraged to ride their bikes to the event and participate in the monthly Critical Mass ride at Public Square beforehand.


Source: Travis Peebles
Writer: Lee Chilcote

As the Circle East Townhomes near completion, 60 percent of the units are pre-leased, and eight of the 12 leased units have been snatched up by University Circle area employees. This proves the viability of new housing options in the area, says Chris Ronayne, Executive Director of University Circle Inc. (UCI).

"This is a great moment in time where the Circle is meeting East Cleveland," says Ronayne of the project, which features 20 townhouse-style apartments that are being developed on a former parking lot on Euclid Avenue in East Cleveland. "The fact that Circle area employees are leasing the apartments means that our Greater Circle Living program is working. Employees can get one month's free rent through this effort, and institutions and foundations are putting money into it."

Circle East Townhomes are being built on 1.5 acres of land along Euclid between Lakeview Road and Auburndale Avenue. The $5 million project is being co-developed by UCI and the Finch Group, and partial funding comes from federal Neighborhood Stabilization Funds. The three-story units have 2 bedrooms, 2.5 baths and two car garages. Rental rates are $930 per month, and tenants can earn up to 120 percent of area median income (about $60,000) and still qualify.

"Circle East is really a new neighborhood where University Circle meets East Cleveland," says Ronayne, who adds that the project would have remained on the drawing board without the leadership of East Cleveland Mayor Gary Norton and support from Cuyahoga County and the Cuyahoga Land Bank. "We've been planning this for a while, and now we're starting to see development."

UCI and East Cleveland are now seeking planning grants for Phase II of the project, which would bring an additional 20 units to the site. Ronayne ultimately envisions a mixed-use housing and office development, including technology companies or services related to University Circle's anchor institutions.

The first residents are expected to move into Circle East Townhomes by June 15th.


Source: Chris Ronayne
Writer: Lee Chilcote