Entrepreneurs + Innovators

bizdom cleveland launches inaugural group of tech startups
Bizdom Cleveland, a business accelerator that mentors and funds up-and-coming entrepreneurs, launched its first six businesses from the fall program. The six businesses were selected from 350 applicants, who were then narrowed down to 32 participants in a 12-week mentoring program.
 
The six businesses participated in “Demo Day” on Wednesday at Quicken Loans Arena, where they showcased their companies to potential investors.

“Thirty-five investors from throughout the region came to meet the inaugural Bizdom class and take a look at all the hard work they’ve done,” says Paul Allen, team leader for Bizdom Cleveland. “This is just the start of fundraising activities for these six new businesses. They will continue to meet with investors in the region and outside the region.”
 
The businesses received up to a $25,000 investment in exchange for an eight percent equity share in the new company. The startups will remain in Bizdom’s offices for three months. The companies must remain in Cleveland once they branch out on their own.
 
The six companies are: BigRiver; BOOM; InStoreFinance; Urban Matrix; SafeCare; and On Demand Interpretation.

“They’re all operating in technology, web and software space and all are performing at a really high level,” says Allen. “Our strategy is on product design and we have high expectations on sales and they are all doing really well.”
 
Bizdom accepts applications quarterly for sessions.  Seventy entrepreneurs applied for the April session, of which four will be selected. The next session begins in July.

 
Source: Paul Allen
Writer: Karin Connelly
local chef opens gourmet sandwich shop downtown
Former Reddstone chef Josh Kabat and his fiance and business partner, Kiaran Daily, have opened Cleveland Pickle, a gourmet downtown sandwich shop. The venue specializes in eclectic sandwiches made from fresh, often local ingredients. Many of the sandwiches are also creatively named after local Cleveland landmarks.

For instance, the Terminal is a savory and sweet sandwich featuring black forest ham, brie, spinach, roasted tomato pesto and apricot jam. The Payne Avenue panini is a twist on the Vietnamese banh mi sandwich, with a touch of chipotle for extra zest.

"Everyone loves sandwiches, and these are sandwiches that people have never seen before," says Kabat. "We use all top of the line ingredients, similar to what you'd find in a fine dining restaurant. Kiaran and I wanted to take our experiences working in chef-driven restaurants as well as bars and bring it all together."

Kabat and Daily make pickles out of their home, adding fresh, delicious chunks of pickle to many of their signature sandwiches. "Love is what sets us apart," says Kabat. "We pour our blood, sweat and tears into this meticulous process."

Cleveland Pickle joins a host of new restaurants and eateries that have opened on Euclid Avenue, including Hodge's, Colossal Cupcakes, Nexus Cafe and Potbelly.

Cleveland Pickle is open Monday to Friday from 9 am until 4 pm. After Memorial Day, the owners plan to stay open Saturdays and until 8 pm during the week.


Source: Josh Kabat
Writer: Lee Chilcote
new law opens the door to more craft distilleries
One of the most widely read Fresh Water features was a story on Ohio's burgeoning craft distillery trend. But it wasn't all good news: As it stood at the time of publication, only one permit was allowed in each of Cuyahoga, Franklin and Hamilton counties. What's more, those few permit holders could distill but not sell their wares on-site. A new law eliminates the restrictions on the number of permits while enabling holders to sell their products directly to consumers.
embrace pet insurance credits growth to great customer service
Great customer service keeps Embrace Pet Insurance growing strong. Embrace has already exceeded its projected 25-percent growth in new policy sales this year. In fact, Monday was the company’s biggest sales day in its history. Now in its ninth year, Embrace's co-founder Laura Bennett credits her customers’ experiences with much of the company’s success.
 
“You can’t always assume it’s all the things you are doing, and you can’t always assume it’s the improving economy,” says Bennett. “People do their research and they always end up looking at Embrace because we have great customer service and a great product. There’s also a growing awareness of pet insurance.”
 
Embrace posts testimonials from pet owners about their positive experiences with the company and the cost savings from having pet insurance. “It can take a year or two or three before you need a claim, so we rely on client reviews,” says Bennett. “And we’re doing more marketing with outreach to veterinarians because people listen to them.”
 
Embrace recently added two positions to its contact center and is looking for an IT person and an internal process manager. They’ve grown from 23 people a year ago to 30 today. “It’s nice to be hiring,” says Bennett.

 
Source: Laura Bennett
Writer: Karin Connelly
flats east bank project lands five new restaurant tenants
Developers of the long-awaited Flats East Bank development broke ground in the worst economy in generations by hook or crook, breaking the project into phases and layering public-private financing together in a deal that was dizzyingly complex.

This week, they're singing a different tune as they celebrate new leases from five high-profile restaurant tenants, including well-known Akron restaurateur Ken Stewart and national country music venue chain Toby Keith's I Love This Bar and Grill.

Four new restaurants will open as part of Phase I, which is expected to be complete in 2013. I Love This Bar and Grill will open as part of Phase II, which the developers hope to break ground on next year if they can assemble financing.

Ken Stewart's, well-known for steak and seafood, will add a new name to the downtown restaurant scene. Lago will move its successful Tremont location to a new, larger space in the Flats East Bank. Flip Side is a gourmet burger bar with two locations in Hudson and Columbus, while Dos Tequilas will be a high-end, urban taqueria.

Toby Keith's I Love This Bar and Grill will add a new element to the downtown music scene. The developers hope the venue, a barbeque joint that will be shaped like a guitar, will tap into an unmet demand for live country music in Cleveland.

"We had interested operators from the beginning, but we took our time to select those that were most exciting," says Randy Ruttenberg with Fairmount Properties. "We're currently working on the capital stack for Phase II, which will feature around 150 residential units, waterfront retail and entertainment."


Source: Randy Ruttenberg
Writer: Lee Chilcote
affordable church square commons now open in midtown, dedication ceremony to follow
There was good news and bad news when David Uram and David Burg learned in June of 2009 about their application for Low Income Housing Tax Credits from the State of Ohio. The owners of PIRHL, an affordable housing development firm, were seeking to develop a 44-unit housing project on Euclid Avenue in MidTown called Church Square Commons.

The good news was that they'd been awarded tax credits for the project. PIRHL has completed 24 successful projects in five states in the past seven years.

The bad news was that the tax credits were worth at least 20 percent less than they had been before the recession, ripping a giant hole in the project proforma and making it impossible to continue without securing additional funding.

That funding came in the form of about $1.8 million in federal stimulus dollars and $600,000 in Housing Trust Fund dollars from the City of Cleveland. The developers broke ground on Church Square Commons in November 2010 and completed it a year later. PIRHL is hosting a dedication ceremony with Cleveland Mayor Frank Jackson and other dignitaries and community partners on April 20th.

"This project provides much-needed affordable housing development in the City of Cleveland," says Uram. "Many low-income seniors fall behind in maintaining their homes and can't keep up. The project has also removed significant blight along Euclid Avenue, and helped facilitate redevelopment of the area."

The 44-unit project contains many green, sustainable features, including high-efficiency insulation that cuts down on heating bills for tenants. It also contains 4,000 square feet of common areas, including a hair salon, fitness center and community rooms, some of which are accessible to non-residents.

Uram, who helped found the company in his partner's basement and has a background in nonprofit community development, says affordable housing is a critical piece of redeveloping neighborhoods. "As we gentrify neighborhoods, folks in Cleveland need a place to live," he says. "It's a critical piece of the urban fabric."


Source: David Uram
Writer: Lee Chilcote
tedxcle: inspiration turned into action
"Events like TEDxCLE are changing how people feel about Cleveland and rebranding the city," says founder Hallie Bram Kogelschatz. More than simply inspirational, the annual event is about "inspiration turned into action." Despite a larger space -- the 700-seat Gartner Auditorium at the Cleveland Museum of Art -- all tickets still managed to sell out in minutes. Here's a sample of what's in store.
sow food offers chef-made meals crafted from locally grown food
Imagine eating chef-made meals from food grown right around the corner. That’s the dream Brian Doyle had when he created Sow Food last year, which is a catering business built around locally-grown food.
 
”Last year my wife Jennifer and I wanted to create a business that was full-circle,” Doyle explains. “We wanted to add a farming component to our catering business because we were interested in adding food in areas considered food deserts.”
 
Doyle found a plot of land on W. 47th Street and Lorain Avenue in the Cleveland area using the land bank. There, he has created a Community Supported Agriculture (CSA) model that combines local farming with catering.
 
Members buy a share in the farm in exchange for gourmet meals prepared by chef Doyle. During the growing season -- June through September -- members get three meals for two people each week. The cost is $1,520 for 16 weeks of food presented in re-usable containers. Subscribers pick up their meals each week at the farm.
 
Doyle creates the meals from the farm produce while supplementing it with other locally grown meats and cheeses. “We try to feature other local producers of value added goods,” he says. “You’ll never find a national brand item in our bag.”
 
Last year, Sow Food had 10 customers. This year, the company already has 10 customers signed up. Doyle hopes to get to 30 customers, but will cap it at 50. “We’re thinking in small increments of growth,” he says.
 
Sow Food has two full-time employees and two seasonal employees. If they reach their targeted growth, Doyle plans to hire an additional full-time employee and two part-time employees.
 
Sow Food sub-leased kitchen space from a couple restaurants. This year, Doyle is hoping to find a permanent space.
 

Source: Brian Doyle
Writer: Karin Connelly
saving cities documentary aims to tell true story of a rising rust belt
A year ago, Jack Storey launched an ambitious project to create a documentary about the Rust Belt with no money, no filmmaking experience and no camera.

But he did have Kickstarter.

Today, Storey and his partners have raised over $20,000 through the popular arts-focused fundraising website. They have crisscrossed the Rust Belt region while garnering more than 100 hours of footage of entrepreneurs and civic-minded individuals. Saving Cities, the grassroots "idea bank" that Storey helped found in 2010, plans to release the documentary, entitled Red, White and Blueprints, early next year.

"We're stubborn and we love it here, but we don't defend ourselves very well to the outside, and the perspective of national media tends to be lopsided," explains Storey, who recently participated in a panel discussion of Cleveland artists funded through Kickstarter. "Our goal is to have a very positive piece of media that tells the story of the Rust Belt from boom to decline, and also talks about the future and entrepreneurs who are doing creative things with very few resources."

Red, White and Blueprints will highlight the connections between small, hyperlocal efforts taking place in various Rust Belt cities to paint a coherent picture of a diverse, interconnected region. It will also suggest that Rust Belt cities could do a significantly better job sharing successes between various metropolitan areas, and in turn, furthering these connections for mutual benefit.

"All of these cities used to be connected by railroads," says Storey. "We're talking about the Rust Belt as a mega-region. We can digitally reconnect these cities in conversation."

Saving Cities has launched another Kickstarter campaign to fund the final leg of the documentary, including editing and duplication. Storey hopes to begin sending the film to festivals and organize a series of community screenings next year.

Now that the project is nearing fruition, Storey has a better understanding of why he needed to do it. "Maybe for good reason, we're the only people to do this. We were crazy enough to get in a car and drive around the region several times. In hindsight, I'm glad we did it, but it was a huge undertaking."


Source: Jack Storey
Writer: Lee Chilcote
artisan jewelry maker participates in burgeoning slow gold movement
Todd Pownell of TAP Studios in the St. Clair Superior neighborhood has always purchased recycled gold. He fashions the raw material into unique wedding rings for Cleveland couples, or helps people to make their own through his unique, do-it-yourself workshop.

Yet as the price of gold has risen from $300 per ounce five years ago to more than $1,600 per ounce today, Pownell has also observed an increase in exploitative mining operations in various corners of the globe. At the same time, there has been a steady uptick in general consumer awareness of supply chain issues, and a rising interest in where our gold comes from.

These two factors provide a unique opportunity for jewelers to highlight where their materials come from and educate consumers about sustainable sources, says Pownell. He is a member of Ethical Metalsmiths and involved in the "slow gold" movement, named after the sustainability-focused slow food movement.

This past summer, Pownell participated in a unique videography project. He traveled to South Dakota with another jeweler and a couple from New York City to try to mine enough gold for a pair of wedding rings. In the end, the weeklong trip yielded only about a dollar's worth of gold. It also shed light on the resource-intensive process of mining, exposing problems in the global supply chain.

Fellow jeweler Gabriel Craig documented the trip on a series of videos he posted on Vimeo, and participants spread word of their trip through social media websites and blogs. An article about the trip entitled "The Real Cost of Gold" also appeared in the March issue of American Craft Council magazine.

"As consumers, we need to be a little more aware of supply chain issues," says Pownell. "There's been a groundswell of change with the buy local movement, and with that, people are paying more attention to where products come from. Craftsmen are at the forefront of trying to look at supply chain issues."


Source: Todd Pownell
Writer: Lee Chilcote
space in old coventry school now co-working outfit open office
The Open Office opened in the Coventry School Building in Cleveland Heights on Monday, April 9, welcoming independent workers -- freelancers, small biz operators and mobile professionals -- a co-working environment to get their work done in a social atmosphere.
 
The Open Office, which will host its grand opening on May 2, offers office space, printers, fax machines and other office services on a membership basis. Memberships range from cubicles dedicated exclusively for full time members, to open memberships and part-time access.
 
“I’m very excited about what we’ve been doing over the past few weeks to transform the building from an old school to workspace,” says founder Andrew Auten. “We’ve been working with the school and the city to bring in more small business.”
 
Conference space is available for meetings and seminars. “The conference rooms are open to the public for reservations,” says Auten.  “We can hold much larger events, for up to 100 people too. The need for this kind of flexible meeting space is really growing.”
 
The Open Office has 12 desks for dedicated members. Auten already has eight dedicated members signed up. Two employees manage the office, while Auten is working with a consultant to help with social media in the space.
 
Other amenities include parking passes for members, a coffee bar by Phoenix Coffee and pastries and sandwiches from Luna Bakery Cafe.

 
Source: Andrew Auten
Writer: Karin Connelly
ever-expanding leandog launches lab to help entrepreneurs
LeanDog Software Studio has seen success as a software delivery firm and the team enjoys sharing their knowledge and mentoring others in the field. So the natural progression for the 55-person company was to expand into the world of fostering entrepreneurs in the tech field. The launch of LeanDog Labs does exactly that.
 
“Labs was really a part of our original vision of LeanDog,” says Nick Barendt, director of LeanDog Labs. “Very early on we were working with startups, but we were bootstrapped as a startup ourselves and cash poor. We really wanted to get back into working with Cleveland-based startups.”
 
LeanDog Labs teaches what they know to up-and-coming technology experts. They don’t invest in the companies; they are focused on being a technology partner. “We’re not looking to fund or provide office space. We’re there on the technology end to help entrepreneurs deliver their vision,” says Doc Norton, director of LeanDog Studio. “We’re looking to be a delivery partner in the startups.”
 
The company is in a position now to help out. LeanDog grew to 45 people from 18 people last year, and has hired 10 employees this year -- four of them just last week. Barendt and Norton see that growth as an opportunity to spread the expertise around.
 
“We're looking to work with entrepreneurs to help build their product vision,” says Barendt. “We have an absolutely amazing group of developers with incredibly diverse experiences, from mobile and web to financial and insurance to real time control and embedded systems, and we can make that collective experience available to our entrepreneurial partners.”

 
Source: Nick Barendt and Doc Norton
Writer: Karin Connelly
upclique - 'the facebook of academia' - matches students with perfect colleges
When Jeremy Amos and Matt Benton were working together at a bank a few years back, they constantly heard from potential investors about how difficult the college admissions process was for their children. They found that finding the right college was often confusing, complicated and even expensive.
 
So, in 2011, Amos and Benton came up with Upclique -- a free forum to connect students with the information they need to find the college that fits their needs, and allowing colleges to attract quality students. “We offer students a very detailed search tool that helps them narrow down their number of potential schools to a list that is manageable,” says Amos. “Once they have narrowed their list we provide them with all the necessary info they will need regarding the school to make a quality decision.”  
 
Amos describes Upclique as the FaceBook of academia. “Our main goal was to create a site where students, parents, college counselors and college personnel come together,” says Amos. “They can come to our site not knowing a thing about what to do or where to go and we can immediately help them from this point."
 
Since its official launch at the end of February, Upclique has recruited 180 colleges, 35 high schools and 150 students and parents. “We’ve had really great growth,” says Amos.
 
Upclique’s revenue comes from third party sponsors in academics. They recently received an investment from Ancora Advisors in Beachwood, and they are endorsed by the National Catholic College Admission Association, which represents more than 200 colleges across the country.
 
Amos and Benton recently hired a CTO, who contracts with four outside developers.

 
Source: Jeremy Amos
Writer: Karin Connelly
constantino's market set to open at uptown in university circle
When Costas Mavromichaelis opened Constantino's Market in downtown Cleveland, he knew that he was an urban pioneer. Downtown residents and businesses had been crying out for a small, full-service grocery store for years, yet no entrepreneur had been willing to take the plunge.

Eight years later, Constantino's Market on W. 9th Street is still going strong, and Mavromichaelis is hoping for another shot in the arm when the Horseshoe Casino opens this year and the Medical Mart and Convention Center open next year. The growing demand for downtown apartments also bodes well, he says.

The entrepreneur is now set to open a 16,000-square-foot branch of Constantino's in University Circle. City leaders contacted him after failing to secure leases from Dave's Market or Heinen's. Mavromichaelis says that the urban market isn't an easy or simple place to do business, but that he's addressing unmet demand.

"This is an important and developing area of Cleveland, and the density of and demand for housing because of the university and hospitals make it attractive," he says. "There's been a lack of shopping amenities in University Circle, but that's changing, and the Uptown project will make the area even more attractive."

Mavromichaelis says the new Constantino's will be very similar to the downtown store, and will be geared towards young professionals, students, small families and empty nesters. It will offer a full selection of groceries as well as a salad and hot foods bar, prepared foods, pizza and an impressive wine selection.

To make the deal work, the developer, MRN Ltd., leased the space to Case Western Reserve University, who in turn subleased it to Mavromichaelis. Uptown is a large, new retail and apartment development along Euclid Avenue in University Circle. The new Constantino's will be located at E. 115th and Euclid.

Mavromichaelis has also recruited his daughter and son-in-law, Anna Mavromichaelis and Andrew Revy, to move from Chicago to Cleveland to work in the business. His daughter has helped him to run the business and open new locations, while Revy will soon manage the University Circle location.

"My daughter was working as an accountant in Chicago, but she grew up in the business, coming to the Clifton store from the time she was seven or eight years old," says Mavromichaelis. "I guess she never got it out of her system."


Source: Costas Mavromichaelis
Writer: Lee Chilcote
q & a: noelle celeste and jon benedict, publishers of edible cleveland
Moving counter to the assertion that Print is Dead!, two local optimists have just launched a new print magazine. Edible Cleveland is a new print quarterly that focuses on the local food scene -- not just restaurants and chefs, but also farmers, history, tradition and lore. FW's Erin O'Brien brakes bread with publishers Noelle Celeste and Jon Benedict.
peace, love and little donuts now open in kamm's corners
A trio of local entrepreneurs have recently opened Peace, Love and Little Donuts, a hippie-themed, gourmet donut shop in Kamm's Corners. The purple walls of the 40-seat venue are lined with Cleveland concert posters from the 60s through the 80s.

Now, donuts get a bad rap in today's health-conscious foodie scene. Yet founder Patrick Campbell says he's got that covered. The hot, fresh donuts are made right in the shop, and the coffee comes from Caruso's in Brecksville. And even if they're not exactly healthy, well, who can resist a maple and bacon donut?

Peace, Love and Little Donuts offers three different types of donuts. The "groovy" donuts are plain or sprinkled with powdered sugar or cinnamon. "Far out" donuts are frosted with chocolate, maple syrup or other goodies. "And the Funkadelic is where it gets really interesting," explains Campbell, who also owns P.J. McIntyre's Pub. "We've got a strawberry cheesecake, samoa and s'mores donut."

Peace, Love and Little Donuts also boasts a state-of-the-art espresso and latte machine that reportedly cost $10,000. "Coffee is the new pint," quips Campbell.

Campbell and his partners, Pete Campbell and James Crawford, first discovered the donut franchise on a visit to Pittsburgh last year. They were walking around the popular neighborhood The Strip and were overcome by a delicious odor.

"We just followed the smell," says Campbell. "And lo and behold, we found this small, 300 square foot, unique coffee shop. They were making fresh donuts right there in front of you, and there was a line out the door."


Source: Patrick Campbell
Writer: Lee Chilcote
ohio city launches next round of successful small business grant competition
Having birthed 25-plus new businesses within the past few years, Ohio City is on a roll. Leaders here hope to continue that progress this year as they launch the second round of the Small Business Development Grant Competition, an initiative that aided at least five new retail businesses in 2011.

The competition, which is being managed by Ohio City Inc. and funded by Charter One Growing Communities, offers grants of $5,000 to $20,000 to retail businesses that open or expand in the Market District along W. 25th or Lorain. Entrepreneurs can use the funds for rent payments of no more than one year, purchase of equipment for business operations or interior build out.

Community leaders are focusing solely on retail ventures this year, having overseen a boom of new restaurants and small boutique shops in 2011.

"The Charter One Growing Communities initiative has catalyzed tremendous growth in the Market District," said Eric Wobser, Director of Ohio City Inc., in a release. "We are very excited to launch year two of the competition."

Applicants can download the RFP from OCI's website and submit it along with a short essay and business plan. They'd better hurry, though -- according to Wobser, there are only five vacant storefronts remaining in the Market District.

Community leaders are also hoping that the Market District's considerable momentum will spill over onto Lorain Ave. Within the past two years, the down-on-its-heels main street that has begun to flicker with new life. OCI has created a community planning effort, Launch Lorain, to chart its future.


Source: Eric Wobser
Writer: Lee Chilcote
efuneral finds digital niche in funeral planning business
After developing their idea for an online funeral services resource at the Ohio State University Fisher College of Business’ 10-Xelerator last summer, Mike Belsito and Bryan Chaikin have proved eFuneral to be a successful endeavor.
 
Originally called FunerAlly, the company was founded in June 2011. Belsito and Chaikin changed to name to eFuneral when they went live in February. The company provides an online platform for families to quickly find, compare and select a funeral provider.  “eFuneral is a simple way for our customer base to understand it is technology focused,” explains Belsito. “One of the things we underestimated is how difficult it would be to create a brand name.”
 
After some tweaking to make sure eFuneral is easily found through search engines like Google, business has boomed. Sixty-five funeral homes in Northeast and Central Ohio are now listed on the site. “We want to make sure that when others turn to the web to find funeral services they find eFuneral,” says Belsito. “Dozens of inquiries immediately came through, from pre-planning to immediate needs.”
 
Offline, groups like Hospice and religious organizations have partnered with eFuneral. The service is free for users. Revenue is earned through marketing fees and premium memberships that funeral homes purchase.
 
eFuneral is doing well. The company now has four employees. The company is still on a learning curve, but Belsito and Chaikin are eager learners. “Our goal is to prove the model we built and the business we built and learn as much from our customers as we can,” Belsito says. “Year one is about learning as much as we can so we can scale up nationally.”
 

Source: Mike Belsito
Writer: Karin Connelly
the rust belt brain gain, creatives flocking to cleveland
A multi-part spread in Details magazine trumpets the remarkable rise of the so-called "Rust Belt."
 
In the piece titled, "Talented, educated, creative people are no longer fleeing the region -- they're flocking to it," the writer kicks off with:
 
"Rust connotes decay and neglect -- and indeed, the Rust Belt's decline coincided with a massive brain drain. But in the past half decade, the region has retained more of its homegrown talent while drawing the best and brightest from across the country."
 
Cited in the article is a Brookings Institution report that found "cities like Pittsburgh and Columbus have increased their college-educated population in recent years, and Cleveland and Buffalo are on their way -- having stanched their decades-long outward migration."
 
Called out for special attention are Clevelanders Eric Kogelschatz and Hallie Bram.
 
"In Cleveland, Eric Kogelschatz founded the think tank shark&minnow with his wife, Hallie Bram Kogelschatz, after both fled high-powered marketing jobs in Boston; besides organizing TEDxCLE (last year's sold out in two hours), the organization collaborates on events with the Rock and Roll Hall of Fame and the Cleveland Museum of Art. What prompted the move? "We really didn't know what we were getting into," Eric admits. "But we were tired of Rust Belt cynicism."
 
Read it all right here.
craftwork: more people pursuing passion to make things by hand
Blame it on the recession or chalk it up to a generation of people who prefer vinyl records to MP3s, but the trend toward creative entrepreneurship is real and rising. People value authenticity, and that often comes in the form of a handmade object with pedigree and a good story to boot. These folks have all traded in their "day jobs" to pursue their passion of making things by hand.