sustainability : Innovation + Job News

You’ve more than likely come close to sideswiping a cyclist sporting a messenger bag with your car. You better pray that’s a R.E.Load product at stake. Operating out of a small boutique on 2nd Street in Northern Liberties, the Philadelphia company and its staff stand much larger and tougher than meets the eye. While growth has been slow, according to co-owner Roland Burns, R.E.Load continues to try new methods to stay afloat. "We discovered that, due to the nature of our production methods and materials, increases in volume didn't necessarily result in that much more of a bottom line, and it made us miserable."

The company prides itself on durable products that that honor self-expression, and an underlying business integrity rooted in humble beginnings. Roland Burns and Eleanor “Ellie” Lum, the ‘R’ and ‘E’ in R.E.Load, began the business while working full-time as bike couriers in Philadelphia, creating custom bags for friends and co-workers on the side.

“We're doing our part to inspire a resurgence of manufacturing within Philadelphia,” co-founder and materials engineer Roland Burns says. The company has grown from producing a few prototypes to creating an internationally marketed product.

“We're very lucky. Our bags are pretty recognizable, and in a lot of cases, when somebody has a really custom bag, other people will approach them to talk about it,” Burns says. Lucky is one way to describe it. With distributors in Austin, Los Angeles, Chicago, Japan and several European nations, lucky seems awfully generous.
 
R.E.Load has made a name for itself in a largely cycling-friendly demographic. The company is comprised of a dedicated group of six staff members who produce all merchandise in-house.
 
The recession has posed challenges for the small company. “One of the main things we face is the rising cost of material,” Burns says, adding that he’s seen a steady decrease in the availability of US-made material. Rather than sacrificing quality for quantity, the company is now aiming for plainer designs.
 
New product lines have less focus on originality and limited edition bags. “I'd like to think that we give people a chance to express themselves in a way that they might not have previously considered,” Burns says.

Source: Roland Burns, R.E.Load Bags
Writer: Michael Murphy

What do you know? There's a new way to make money based on your particular set of skills and talents. It's called Skillshare. Launched in Philadelphia last month with national headquarters in New York City, Skillshare allows anyone to teach anything and get paid for it. Brendan Lowry has been in charge of launching the program in Philadelphia. "Every city is a university, all the restaurants and cafes are classrooms, and our neighbors are our greatest teachers," says Lowry, whose title is Special Operations.

Here's how it works: Say you are really good at knitting. Sure, you could sell your stuff on Etsy. But with Skillshare, you can also hold knitting class at a location of your choice. Set your own price per student, and get paid through PayPal. Skillshare deducts 15 percent of every ticket sold.

Skillshare, on a mission to democratize and redefine education, launched in New York in May of this year, and is now operating in Philadelphia and San Francisco, with hopes for setting up in cities across the US. Each city needs to be unlocked by popular vote. When the vote count surpasses 500, a team is created to get the word out. "We've targeted the tech community. It's one of the first industries we tapped into, but we don't want to fall exclusively in that category," says Lowry, who says right now there are over a hundred classes on offer in the Philadelphia area, ranging from The Art of the Cold Call to Beer 101. Teachers post credentials and a feedback process is designed to ensure a quality learning experience (full disclosure: I am teaching Communications for Startups on Sept. 20).

"Our marketing budget is literally zero dollars," says Lowry, who has done outreach through social media and word of mouth. There is also a newly created, limited time $1,000 scholarship fund which encourages more people to take classes in Philly and SF. Skillshare is set to launch next in Boston, Washington DC and New Orleans.

Source: Brendan Lowry, Skillshare
Writer: Sue Spolan

Put that paperwork down. Greenphire is fundamentally changing the entire clinical research industry. The King of Prussia based company has two products, ClinCard and eClinical GPS, designed to streamline clinical research studies. The technology is working, and it's well received, having just closed a round of Series A funding led by FirstMark Capital, on the heels of Ben Franklin Technology Partners funding last year.

Greenphire's COO John Samar reports that this year, the company will achieve 300 percent revenue growth over last year, currently serving 200 customers including big name pharma, biotech and medical device companies. Just four years ago Greenphire consisted of Samar and co-founder/CEO Sam Whitaker, and with the cash influx, the company is hiring. Samar estimates that the current staff of 16 will double by spring of 2012. Currently, there are three openings: VP Program Management, Program Manager and Office Manager/Client Support/Bookkeeper.

ClinCard, says Samar, is Greenphire's debit card based product that handles payments for participation in clinical research trials, adding email and SMS functionality to keep patients engaged in studies. Participants receive tailored messaging and appointment reminders.

"There are a lot of value adds that result from the way we package," says Samar. "Sponsors get cleaner, more robust data, and patients are happier. The whole clinical research industry is realizing that it needs to be more patient centered." Increased compliance on both sides of the equation, from patients to paperwork, sets ClinCard in its own class, and it's not hard to see how Greenphire's technology could be applied to a much wider healthcare market.

But Samar says right now Greenphire is sticking to its expertise in the clinical research sector, and this year launched its second product, eClinical-GPS (Global Payment System) to address payments involved in the execution of the study. So, for example, if a clinician draws blood, reimbursement -- which previously took 6 to 8 months -- now arrives within three days.

The high growth private company is partnering with Mytrus for Pfizer's virtual clinical trial program that allows participants to remain at home, using electronic communication tools to recruit, retain and administer studies.

Source: John Samar, Greenphire
Writer: Sue Spolan

The appreciation of coffee has risen to an art form, following the path of fine wine and craft beer. And while the city is dotted with culinary coffee establishments, most are serving products shipped in from distant locations. A new company, inspired by single origin roasters like Stumptown and CounterCulture, brings craft roasting to Philadelphia. ReAnimator Coffee was founded in April by Drexel University grads Mark Corpus and Mark Capriotti.

Corpus says that while coffee has been his stimulant of choice for years, visits to New York's Cafe Grumpy and 9th Street Espresso changed his opinion about how a cup of joe should taste. "These were coffees that were not only roasted to perfection, but were selected purposefully. At the time, there weren't many places in Philadelphia doing this type of coffee so I began looking into home roasting," says Corpus. "It was an interesting hobby that appealed to my nerdy tendencies and produced super fresh and delicious coffee with relative ease."

It was only through conversations with partner Capriotti that Corpus looked at his hobby with an eye toward a business. Using personal savings, the java-jolted duo took on the purchase of a roaster, which can run upwards of $8,000 for a starter model, and purchased  inventory. Coffee bean prices are now at an all time high, according to Corpus.

Both partners are still working day jobs, but have been pleasantly surprised by growth in sales during a hot summer. It's no surprise to anyone who tastes ReAnimator, which goes down easy, lacking the acidity and charred taste of the big name brands. "When you roast a coffee until it's burnt, all of the oils that hold all of those interesting aromas and flavors are lost. You see them on the outside of a greasy burnt bean where they do not provide any additional flavor to the brew," says Corpus. "When you take the time to figure out what roast level makes the coffee flavor best, you get the full potential of a bean."

ReAnimator has relied almost entirely on social media marketing using Facebook and Twitter, and they can almost always be found on Saturdays at Greensgrow Farmer's Market, just blocks from ReAnimator world headquarters in Fishtown. In addition to online sales, Quince Fine Foods and Green Aisle Grocery both stock the local roast, and Circles restaurant sells it by the cup.

As far as the name? "We wanted something that sounded different, not so burlap baggy wholesome. I had been reading HP Lovecraft's ReAnimator and it struck me as a great, unique term, and in my own experience reanimation and coffee go hand in hand," says Corpus, whose name, fittingly, translates as "body" from Latin.

Source: Mark Corpus, ReAnimator Coffee
Writer: Sue Spolan

There's a whole lot of hiring going on in Zone 7. Lest you think you've slipped into a science fiction world, Fresh From Zone 7 is the name of a fast growing company that's, well, all about growing. Founded in 2008 by Mikey Azzara, the Cranbury, N.J.-based farm-to-table distributor serving Pennsylvania and New Jersey has doubled in sales every year.

Right now, there are five job openings for energetic people who are committed to providing local food to local eaters: sales, warehouse crew, warehouse crew leader, drivers (multiple) and a sales team intern. While the positions are primarily part time, the right candidate could combine several to create a full time gig. Currently there are 9 people on staff, and the new hires would represent about a fifty percent increase. The company began with just two employees in 2008.

Azzara reports that each week of the 2011 season, Zone 7 has been adding deliveries at an almost explosive rate and at this point is maxed out in terms of staffing.

"On Tuesday, Wednesday and Thursday, all three of our trucks are out," says Azzara of the fleet that picks up from all over New Jersey and Pennsylvania, delivering to over 80 establishments, including The Farm and Fisherman, Southwark, Garces Trading Company, Weaver's Way, Greensgrow and the Fair Food Farmstand in Philadelphia. The New Jersey territory stretches from Atlantic City to West New York, NJ.

The 40 farms that supply Zone 7 include Blooming Glen, Jah's Creation Organic, Griggstown Farm Market, and Branch Creek, where the original seed for Zone 7 was planted.

Azzara had been working for the Northeast Organic Farming Association of New Jersey for five years when he sat down at the table of Mark and Judy Dornstreich, pioneers of the local food movement and founders of Branch Creek Farm, which has been growing and delivering organic produce to Philadelphia restaurants since the 1970s. "They supplied me with the truck, the name and the idea," says Azzara.

Zone 7, named for the USDA Hardiness Zone in which we live, is a 52-week-a-year operation, says Azzara, and its busiest months, surprisingly, are November and December. "Our time to catch our breath is January, February and March." Starting in April, asparagus and swiss chard are the first crops to harvest.

Source: Mikey Azzara, Zone 7
Writer: Sue Spolan

The Laurence A. Baiada Center for Entrepreneurship at Drexel University's LeBow College of Business is about to expand, taking up residence in the soon to be constructed LeBow building at 32nd and Market Streets. Currently tucked away in a former industrial space at 32nd and Arch, the Baiada Center has been physically separate from LeBow, but that's all about to change. The business school's former home, the Mathieson Building, is now in the process of being demolished to make way for a 12 story state of the art structure. The new Baiada Center will have a light-flooded open floor plan, and will add a behavioral lab where entrepreneurs can conduct focus group tests.

A division of LeBow, Baiada has long offered full support for entrepreneurs, from office and conference space to mentoring, training and promotion. "A lot of what we do is built around the presumption that most entrepreneurs know their space, and need help building and selling their companies,' says Mark Loschiavo, Executive Director and Senior Executive in Residence. Startups, which range in specialty from transportation to medical devices, also receive a small amount of seed capital.

The current space is currently home to ten companies, notably CityRyde, which just received $345,000 in funding for its bike share technology, as well as current undergrad Bradley Ericson, whose company 3 Second Receipts earned him the title of Entrepreneur magazine's College Entrepreneur of 2009.

Loschiavo says that the vast majority of Baiada's tenants are Drexel alums, and all have had some affiliation with Drexel. The center chooses two to three companies each year, negotiates a competitive one-year lease, and reviews the startup's performance at the end of the initial contract.

While residence is open ended, Loschiavo says companies must show movement in the right direction to remain in the center. One Baiada business, Drexel Drinks, is something of an incubator within an incubator. The on-campus beverage delivery service has become a model for succession, providing turnover and training as students graduate and move on.

Founder and primary funder Mel Baiada is a Drexel alum and serial entrepreneur who credits a successful exit in the software industry. He also founded Basecamp Business, a networking tool for entrepreneurs. "The Baiada Center established a culture of entrepreneurship at Drexel, and helps the university maintain an entrepreneurial focus," he says. Mel's brother, Mark, who founded Bayada Nurses, is also an investor in the incubator, which is named in honor of their father. The new LeBow building should be complete in 18 months.

Source: Mark Loschiavo, Mel Baiada, The Baiada Center
Writer: Sue Spolan

Agriculture wasn't in Dean Carlson's original plan. "I was a bond trader working in derivatives," says the owner of Wyebrook Farm, a 355-acre spread in Chester County. Carlson is now offering sustainably raised chicken and eggs, with beef and pork on offer this fall. "We have two full time employees, three summer employees and two chef interns," says Carlson of the Honey Brook operation.

Carlson left Susquehanna International Group in 2009, hoping to take time off in a bear market. "I came across the idea of sustainable agriculture and became captivated by it," says Carlson, who explains that conventional agriculture, with its dependence on cheap oil, cannot last forever. "Five to 10 years years from now, it will be obvious. Food will become higher priced and more scarce. You see it already."

Carlson purchased the foreclosed 200 year-old farm from a bank for $4.25 million, and has invested over $750,000 in improvements, which include solar power and renovations to three existing 18th century stone buildings. "The previous owner was going to develop the land into a 100 house tract," says Carlson.

"I looked at the business of conventional farming and didn't like it," explains Carlson, who refers to standard practices as the definition of a bad business -- capital intensive and fraught with variables. "With sustainable agriculture, you are minimizing your input cost. Instead of machinery and hay in a barn, animals are out in the field, harvesting the grass themselves. Our input costs are sunshine and rain."

Wyebrook Farm's first product, Freedom Rangers Chicken, is now available for $4 a pound direct from the farm. Carlson is transforming the old stone barn into a store where customers will be able to purchase chemical-free grass fed meat and poultry directly. It's just a 45 minute drive from Philadelphia, and not much farther from New York.

Carlson draws inspiration from billionaire financier Jim Rogers, who, when asked by a room full of MBA finance students for advice, replied "Quit school and go work on a farm."

Source: Dean Carlson, Wyebrook Farm
Writer: Sue Spolan

Your scraps are Tim Bennett's gold mine. Bennett Compost offers urban dwellers the opportunity to recycle food waste without expensive equipment or outdoor space. Bennett began the business out of a personal need. "At the time, where I was living in South Philly, I wanted to compost, but I had no backyard." After dissatisfaction with home composting systems costing around $300, Bennett created a composting service that would benefit city homes and businesses at a fraction of the cost.

For a $15 monthly fee, residential customers receive a covered bucket, and Bennett's truck swings around once a week to empty and return the container. Commercial customers, including coffee shops, a florist and some restaurants, pay on a sliding scale depending on volume and frequency of pickup, but Bennett adds that the cost offsets commercial trash hauling fees, and in some cases commercial customers are able to save money on refuse.

Used food and some types of paper are sent to a composting facility in Delaware and then picked up for distribution to area community gardens. Customers can opt to receive up to 10 gallons of the finished product free of charge; beyond that, compost is available at a discounted price. You don't have to be a customer to buy compost. Five gallon buckets are available to the general public for $10, and will soon be sold at area retail locations including Essene Market and Green Aisle Grocery.

Current offices are based in South Philly at Bennett's home, with a North Philadelphia warehouse. Bennett was able to quit his day job at Temple University last summer to devote his career full time to compost. "We bootstrapped our way up. Now we are profitable enough that I am able to pay my own salary, and we have three part time employees." The business continues to grow, with 300 residential customers and 20 businesses distributed across the entire city.

Source: Tim Bennett, Bennett Compost
Writer: Sue Spolan

Riding a bike to national recognition, a team of University of Pennsylvania mechanical engineering students created a revolutionary cycle design that propels far more than the rider. Geoff Johnson, Evan Dvorak, Lucas Hartman, Katie Savarise, and Katie Rohacz teamed up on the design and fabrication of The Alpha Bike, which is now getting coast-to-coast attention.

"Bikes have not changed much in the last 150 years," says Dvorak, who explains that Alpha allows the rider to literally flip a switch between freewheel and fixie style, which he compares to driving an automatic versus manual transmission car.

Alpha Bike is elegant. There are no external cables, brakes or hardware. Smooth surfaces were either milled or printed, and it is mindbending technology that allows stainless steel parts and plastic handlebars to emerge from a 3D printer. The seamless result came from thousands of hours of work. Dvorak estimates that the team spent, at minimum, 700 hours each over the course of their senior year, all while pulling full courseloads of up to six classes.

The 28 pound bike incorporates an electronic system similar to that of a hybrid car, with a dynamo, capacitors, an internal drive train, and the option to add even more bells and whistles such as an accelerometer. "We got our inspiration from Apple's design philosophy," says Dvorak, who describes the computer maker's products as almost magical. "The technology is completely hidden." Alpha's elegant and simple profile belies the complexity of the design.

The team estimates cost of the materials at between $15,000-$20,000, with much donated or purchased at a greatly reduced cost. Johnson, who calls this a concept bike, is not interested in selling the Alpha, but estimates the final tab for parts and labor at somewhere around $50,000.

The Alpha team received an initial budget of $1,500 from the School of Applied Engineering and Science; the team was able to fund the rest thanks to several dozen sponsors and suppliers.

The technology that the team developed is ripe for licensing, and after a recent demonstration, Drexel School of Law Dean Roger Dennis offered to handle the patent work. Johnson has been in talks with Specialized, an international cycle manufacturer out of the San Francisco Bay Area.

Source: Geoff Johnson, Evan Dvorak, Alpha Bike
Writer: Sue Spolan

Concerns about money are raising the legislative roof at the federal level. Meanwhile, jobs and innovation are flowing out of the US and into China, India and the EU. The US biopharmaceutical industry is undergoing major changes. Hundreds of small and medium sized firms require intensive capital to conduct research. Major players in the industry, including Sanofi-Aventis,Merck, Pfizer and AstraZeneca, have cut more than 43,000 jobs nationwide as of September 2010. Health care reform adds more uncertainty to the industry at large.

Rather than attempt to allocate nonexistent federal money for life sciences research and development, Representatives Chakah Fattah, Allyson Schwartz, and Pat Meehan, along with Senator Robert Casey Jr., have a plan to provide money on a national level for the life sciences industry though tax incentives. On July 25, the bipartisan group introduced The Life Sciences Jobs and Investment Act of 2011 at the University City Science Center, a locus of life science research.

"This legislation is about inventing the future," says Casey. "In Pennsylvania, we don't wait for events to overtake us."

Southeastern Pennsylvania's political leaders have a vested interest in life sciences, according to Schwartz, who pointed to the concentration of teaching hospitals, medical research and life science entrepreneurs here.

"It's one of the aspects of the American economy where we are still leading, but we won't continue if we can't compete," said Meehan, who stressed that the bipartisan effort will have a much better chance of passing. Schwartz added, "It's not an easy time to get anything done in Washington."

The legislation, introduced on July 25, doubles the credit from 20 to 40 percent for the first $150 million of life sciences research and development. Also, to encourage domestic productivity, companies that bring foreign profits back to the United States will enjoy a reduced tax rate, as long as those funds that are used to hire domestic scientists and researchers and make new investments in American research and development.

Source: Robert Casey Jr., Allyson Schwartz, Pat Meehan, US Congress
Writer: Sue Spolan

There's something cool going on with air conditioning. OxiCool, Inc. a Philadelphia-based company, which has received $400,000 in investment from Ben Franklin Technology Partners of Southeastern Pennsylvania, including $250,000 announced from its Competitive Energy Consortia last month, recently received a patent for its environmentally friendly air-cooling technology.  OxiCool is working under a Joint Development Agreement with one of the three largest truck companies in the world, and is about to finish their second prototype.

The technology uses water as the main refrigerant and low-grade, recycled heat from exhaust waste and other green sources as the main energy source. There are no toxic components and zero direct emissions; virtually this technology is completely clean.

OxiCool initially developed this technology to be used in sleeper cabs in long-haul trucks. Often the only way for drivers to power their air-conditioning units while they aren't driving is to idle their engines, producing exhaust and wasting fuel and contributing massive amounts of greenhouse gases into the atmosphere. OxiCool's product eliminates the need to idle because the technology uses minimal amounts of electricity to operate. This development has the potential to save nearly 11 million tons of carbon dioxide annually, as well as a lot of grief for truck drivers in the more than 30 states that have introduced anti-idling legislation.

OxiCool's joint research and development agreement with the U.S. Navy and another with an unnamed large U.S. corporation comprise much of its work at present. The Philadelphia Industrial Development Corporation and private angel investors from across the country are other investors. OxiCool is in hiring mode, looking for "exceptional candidates."

Source: Emma Kaye, OxiCool
Writer: Nina Rosenberg

You can have your stake and eat it too at this local micro-funding event. Philly Stake provides fast funding for great ideas, with a heaping helping of local cuisine and good cheer. On July 17, the group set up at Historic Bartram's Garden on the banks of the Schuylkill River in Southwest Philadelphia.

A sliding scale admission fee of up to $20 gave over 250 attendees the opportunity to hear about 10 local startup projects while enjoying a locally sourced organic dinner. It was immediate gratification. At the end of the night, three groups were handed cash to carry out proposals.

Tidal Schuylkill River Tour received $1,000 to collaborate with the Philadelphia Wooden Boat Factory in creating a vessel that will go out on a river tour; Fair Grounds won $600 to build a food and sculpture garden in East Kensington; and Sunday Suppers received $500 to encourage family dinners in low income areas of Philadelphia.

Theresa Rose, who by day works for the City of Philadelphia's Office of Arts, Culture and The Creative Economy, is the founder of Philly Stake, which is not connected with her work for the government. "I was excited about the idea of having a platform for people to get together and share ideas," says Rose. "There's so much going on in Philadelphia, but not so many outlets for us to share with each other." The July event was the third in the growing series, which began last September.

A shorts and sundress clad crowd set up blankets on a grassy bank overlooking the 46-acre botanic gardens and enjoyed a summer menu that included veggie and meat tamales, salads, dessert, beer and wine served on vintage plates collected at local thrift stores. Ten fundraising hopefuls, chosen randomly from a pool of 21 applicants, presented projects. Voting ballots were collected and tabulated on the spot to determine the night's winners.

It takes a lot of volunteer effort to orchestrate Philly Stake. There are 18 dedicated core organizers, according to Rose, who donate time and skills, including chefs Eliot Strathman and Eric Blasco. Rose got the idea for the program after attending Feast in Brooklyn and says it fulfills a need for a place to exchange creative ideas and foster connections. The next Stake dinner is planned for this fall in Center City.

Source: Theresa Rose, Philly Stake
Writer: Sue Spolan