Financial Services : Innovation + Job News

Most people wouldn’t look at local government agencies and see big cash, but that’s exactly what Greg Berry, founder and CEO of Municibid, has done. While serving on the Pottstown council, the former CEO of Jonestown-based PointSolve discovered municipalities were losing considerable money by putting their out-of-use items up for "sealed bid." His online competitive bidding platform currently serves 800 government agencies across the country; its annual merchandizing value is growing 300 percent every year. He's looking to hire experienced sales reps to approach a largely untapped market of 90,000 agencies selling $2.5 billion of merchandise annually.

"[Pottstown council] would sell an old police car worth $3,000 for about $300, then we struggled to come up with $1000 to pay for something else," says Berry. "Very few people knew the items were for sale. This same problem was, and still is, affecting tens of thousands of local government agencies."

When Municibid customers trade their classified ads for online bidding, they recover considerable money on valuable items, including police vans, tractors, walky-talkies, cafeteria tables, plate makers and traffic signal heads—even a plane recovered from a drug trafficking operation. The small town of Mansfield, Maine exceeded expectations for their annual auction by $85,000. Baton-Rouge, Louisiana made $125,000 in their first round. Municibid has been reeling in an average of 25 new clients per month and Berry believes they’ll reach 5,000 clients in five years.

"Bidding used to be limited to those in the know," says Berry. "Now, more and more, we’re seeing parents buying cars for their teenagers through Municibid. We have found a way to better engage the general public."

Source: Greg Berry, Municibid
Writer: Dana Henry

In 2011, Michele McKeone, a teacher and University of the Arts alum, entered the Corzo Center for the Creative Economy at the University of the Arts intending to market her specialized curriculum. One year later she launched the beta version of Autism Expressed, an interactive web-platform that helps autistic students develop digital skills. McKeone and three other 2011 Corzo Center/Wells Fargo Fellows will share trials, mistakes, successes and plans from their creative ventures during What’s Cooking at Corzo on Tuesday, Nov. 13.

Like many artistic entrepreneurs, McKeone, a former media design student, struggled to turn her passions into something marketable. Many creative startups also have difficulty appealing to traditional funding sources.

“When the politicians talk about ‘job creators,’ they are not talking about the small businesses created in the creative economy,” says Neil Kleinman, Senior Fellow for the Corzo Center for the Creative Economy. “As we know, though, a thriving economic community requires that we have a creative culture.”

The Corzo Center provides workshops, mentorship and consulting to meet the specific needs of creative startups and offers select entrepreneurs a $10,000 grant. The presenting 2011 Corzo fellows demonstrate a diverse range of business concepts rooted in creative education. In addtion to McKeon, presenters include:

ADMK:  As a graduate student at UArts, Andrew Dalhgren, a master crafter, spent a year investigating the state of textiles in Philadelphia. He developed a vision for scalable production of handmade knitting enabled by advanced technology, and plans to launch Knit Lab as a shared workspace.
 
Bonded Forever Jewelry: This company designs jewelry that “bonds” cancer patients with their loved ones. Cassandra Hoo, a writer, filmmaker and recent Alliance for Women Entrepreneur (AWE) fellow, developed the concept after her mother was diagnosed with cancer. Bonded Forever Jewelry is sold in local shops and helps fund cancer research.

Bioskin: Eric Zola is an industrial designer developing new forms of environmentally sound insulation using biomimicry—sustainable design based on biological forms.

McKeone, who since completed the Good Company Ventures accelorator and was awarded a 2011 AWE fellowship, is currenlty testing Autism Expressed at area charter schools. She credits Corzo for pushing her to incorporate entrepreneurial thinking into her vision.

"At the time, I had no clear business model, just an emerging vision," she says. "After working through the incubator, attending its workshops and open office hours with experts in the areas of law, business, marketing, etc., I emerged with not only a well-defined vision, but a scalable product and business model."

In the past three years, six of the ten total Corzo Incubator fellows launched startups that continue to progress. Nonetheless, Kleinman says the ultimate focus is not about success.

"We have emerging entrepreneurs with remarkable stories," he says. "Their time with Corzo was intended to be a learning process—the first stage along a path that may lead to new ideas and new ventures. Each started at a very small spot on the road and has begun to move out into some delightful, surprising forms of recognition.”

Source: Neil Kleinman, Michele McKeone, Corzo Center
Writer: Dana Henry

In the fall of 2011, leadership from Philly Startup Leaders and Ben Franklin Technology Partners began meeting with  Philadelphia Alliance for Capital and Technologies, and officials from Philadelphia Industrial Development Corporation and The Mayors Office. Despite seemingly different agendas, the group collaborated around a shared interest: How do we keep promising companies in Philadelphia?

ReadySetWork has served tens of thousands. While it all began with a sandwich franchise, co-founders Joel Frisch and Jacob Dreyfuss are in the business of serving those who serve. The company is hiring ASP.NET MVC developers, mobile developers and business development experts, on the heels of an acquisition for an undisclosed amount by national payroll solutions provider PrimePay.

ReadySetWork was created to schedule shift workers, first in the restaurant industry, and now branching out to any vertical that employs hourly, on-demand labor. Frisch and Dreyfuss first got the idea for the company when they owned several Pita Pit franchises, and developed the technology to fix a major pain point that had previously been a pencil and paper solution. "The whole pitch of our product is taking the schedule off the back wall and bringing it to life," says Frisch.

The RSW suite is a set of web and mobile tools that allow managers to schedule workers online, but also allow employees to tell bosses when they are available. "When employees have more access with ReadySetWork, they feel more a part of the process. Accountability and morale are higher," says Frisch.

The acquisition does not affect the management team or the location of company, which remains in Malvern. Frisch says the company's national client base has been built up through distribution channels, not one-by-one sales, and PrimePay is now offering a co-branded version of ReadySetWork.

Frisch reports that the company now schedules hospitality, healthcare, and recreation staff, and is moving into the rapidly growing on demand workforce that includes home health care, catering and security. "A tool like ReadySetWork is situated perfectly for that change." Look for a new RSW mobile app, to be launched this summer. By the way, RSW has lots of branded merchandise for sale, including a clock.

Source: Joel Frisch, ReadySetWork
Writer: Sue Spolan

"There's no question," says Ryan Feit, founder of SeedInvest, "entrepreneurs are a job creation engine." SeedInvest, which won third place at Philly Startup Weekend 3.0, is perfectly timed to rise from newly enacted legislation that changes 80 year old securities laws. Feit graduates from Wharton with an MBA in just a few weeks, but is already on a fast track to becoming a major player in finance.

SeedInvest was born when President Obama signed the JOBS Act into law on April 5, allowing individuals to make equity investments in startups. Taking crowdfunding a step further than Kickstarter, the JOBS act allows anyone to gain an equity stake in an entrepreneurial effort. "It opens up investment to the 99%," says Feit, who sees SeedInvest as an evolution from microfinancing and investing clubs.

Feit, who worked on Wall Street before entering Wharton, caught wind of the JOBS Act movement around nine months ago, and began working closely with Startup Exemption founder Sherwood Neiss, who garnered bipartisan support in congress.

SeedInvest puts a cap on individual efforts, so that those with under $100,000 net worth, or who make under $100,000 salary can invest 5% or $2,000, whichever is lesser. Over $100,000, a 10% annual investment, up to $100,000 per year, is the max.

Since Startup Weekend, Feit has been very busy. "I've had a lot of people who reached out from the Philadelphia community who are interested in investing." Feit is now in the process of seeking a seed round of funding in an undisclosed amount. The business is still in pre-launch, and interested investors can sign up for more information at the website.

"I am hoping to have a leadership role to help think through issues with later stage financing," says Feit. "This new business model of crowdfunding has not happened before. If you are a later stage investor, this is something you will find challenging to invest in. There are creative ways for companies to raise seed funding that will not preclude fundraising down the line. There is a solution."

Source: Ryan Feit, SeedInvest
Writer: Sue Spolan

Life sciences ruled at this year's Wharton Business Plan Competition, held April 25. RightCare Solutions won first place and will receive the $30,000 grand prize. Competing against seven other finalists, RightCare created D2S2, a discharge planning and readmission decision support system. The evidence-based tool was developed by Dr. Kathy Bowles, Professor of Nursing at the University of Pennsylvania, and the business plan was written by Eric Heil, who graduates from the Executive Wharton MBA program this year.

"It was the topic of my senior thesis as an undergrad at Penn engineering in 2005. Kathy and I worked on it then, and she continued her research in the field and perfected the algorithms," says Heil. "We stayed in touch over the years, and given some of the changes in the reimbursement and regulatory landscape, we decided to create the tool to commercialize her research."

RightCare addresses a $30 billion problem in the United States: preventing readmission. Working with hospitals, insurers, and homecare agencies to identify patients at high risk for readmission, the tool was developed from a study led by Dr. Bowles using referral decisions made by discharge planning experts for 355 hospitalized older adults.

Used at the beginning of a hospital stay, D2S2 can help care coordinators identify high-risk patients quickly, and provide them enough time to coordinate the right care for high-need patients post-discharge to facilities such as home-care, skilled nursing, rehab, or a nursing home. Beta testing is now underway at three hospital systems, according to Heil, and D2S2 is scheduled for national implementation this summer.

Second prize at the Business Plan Competition went to 1DocWay, an online doctor’s office connecting hospitals with underserved patient populations, including the rural, elderly and disabled, via a secure video chat platform. Samir Malik, who graduates from Wharton next year, was the lead on the business plan development team.

In third place was Calcula which is developing urological medical devices for the removal of kidney stones without anesthesia.  The People's Choice Award winner was ChondroPro, which is developing therapeutic technology to treat osteoarthritis. By the way, Heil says the health care focus of the finalists and winners was happenstance.

Previous winners of the Wharton Business Plan Competition include Warby-Parker and Stylitics.

Source: Eric Heil, RightCare
Writer: Sue Spolan