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Job Alert: Mobile marketing experts TapCLIQ are hiring

Mobile technology presents a marketing conundrum: Personal devices gather valuable specifics about the viewer, including location and activity, but render web advertisements distorted and invasive. Malvern-based TapCLIQ is changing all that.

After 14 years directing software development and strategic partnership at SAP AG,  founder and CEO Chirantan Bhatt created a "customer engagement platform" that responds to user-generated feedback in real time. The company recently graduated from Project Liberty Digital Incubator and is hiring data scientists, software engineers, and marketing and sales directors.

Bhatt says he’s always the first to try a new gadget, but finds "an abundance of annoying and unrelated advertisement constantly appearing on mobile applications." When his four-year-old daughter came to him with a file downloading over the game app she was playing Bhatt realized the problem was urgent. 

"Advertising completely interrupts the user," says Bhatt. "[Mobile devices] can’t have ads like a web page."

According to a 2012 study by Azullo, 80 percent of smartphone users have already forgotten all the mobile ads they’ve seen in the past 6 months. Yet internationally, spending on mobile advertisement is predicted to reach $28 billion by 2016 (based on reports from International Data Corp.).

Big ad companies—including Google, Real Media 24/7 and Flurry—are still stuck on display ads, explains Bhatt. TapCLIQ, conversely, doesn't asks users to leave their app and offers related purchases and commenting options for their current activity. Now in private beta, the company has created 1 million interactions with over 20,000 mobile users.

"We have an intense focus on user experience," says Bhatt. "That means better ads, coming at the right time, with more relevance to the customer."

Source: Chirantan Bhatt, TapCLIQ
Writer: Dana Henry

On the Move: DMG CTRL heads to a larger space

The Old City-based software company DMG CTRL (Damage Control) has outgrown its 2,200 square foot office above Indy Hall. With twenty employees, many hired through apprenticeships, DMG CTRL has doubled its staff in the last year. On Monday, December 3, the company moved to a 5,000-square-foot space on N. 5th Street. At their current growth-rate, Jason Allum, the company’s cofounder, expects them to fill the space over the next few years.
 
The new address will include a classroom, a conference room, a kitchen and more windows as well as ping pong, a pool table and a beer keg. That may sound more clubhouse than growing company, but Allum—who was hired as a software engineer at age 16—says employees don’t hate coming to work. 

"A lot of this space is built to facilitate communication," he says. "It’s a very sedentary job, so you have to have dedicated space for play."  
 
A 2012 study by AIG Consulting found that 68 percent of software companies surveyed had more failed projects than successful ones. DMG CTRL often rewrites broken software from larger companies. Allum says his company has built over a hundred products and only two had less-than-optimal results. He attributes the company’s phenomenal success rate to the “collective intelligence” of his team. Each project item is tracked using revision control software and every piece of code is peer reviewed. Employees sit at shared tables and are encouraged to move around.
 
"It takes a fairly anti-social group of people—nerds—and makes them talk to each other," says Allum. "Everything is done by somebody and checked by somebody else. If you’re reviewing my code and I have more experience, you have a chance to learn my tricks. People are allowed the freedom to fail which is huge."
 
Allum was a founding member and initial financer of Indy Hall. Shortly after launch, Allum and cofounder, Mac Morgan, posted a Craigslist ad calling for a "minion." He hired a cellphone salesman with no background in computers. The new employee was given menial tasks—stuff Allum didn’t want to pay experienced professionals to do—and progressively moved to more challenging ones. Today that former minion writes software for the products he used to sell.

Since then, DMG CTRL has hired a waitress, a warehouse employee, several Art Institute graduates, retail personnel and a "Russian math wiz." They also get regular visits from a 78-year-old chemist who is learning to write code.
 
"We let people float through the orbit," explains Allum. "If it works out we’ll hire them. I’m a firm believer that there’s way more people who can do this stuff than know they can do this stuff—or that the world would allow to do this stuff."

Source:Jason Allums, DMG CTRL
Writer: Dana Henry

Open for Business: Drexel's ExCITe Center launches in University City

It’s not every day a plainclothes professional opera singer performs to the hum of industrial knitting machines. Nonetheless, it was the perfect display of synergy for the opening ceremony of Drexel’s Expressive and Creative Interaction Technologies (ExCITe) Center at the University City Science Center. Held on Wednesday, November 28, the celebration showcased surprising STEAM (Science, Technology, Engineering, Arts and Mathematics) combinations and permutations.

"In academia, it’s hard to collaborate outside your department," says Dr. Youngmoo Kim, director of the ExCITe center and professor of computer engineering at Drexel. "The whole purpose [of ExCITe] is to create multidisciplinary projects at this nexus between technology and the arts. There’s so much synergy there."

The 11,000-square-foot facility features conference rooms, countless desktops, sound equipment and a knit lab, all available to Drexel faculty, staff and students, regional partner institutions and other universities. The space will host hackathons and other tech and arts related events.

Opening demos included an app for understanding live classical music and a digitally-enhanced grand piano. ExCITe also houses and provides seed funds to three startup projects: a Microsoft Kinect therapy game for people with cerebral palsy; a virtual reality opera project made in partnership with the Philadelphia Opera Company; and Sonic City, a Breadboard project incorporating city sounds into musical pieces.

The Shima Seiki Haute Technology Knit Lab houses four top grade fabric machines, a donation from Shima Seiki Manufacturing in Japan worth $1 millon. The facility is unheard of in academia and, according to Kim, rivals Nike’s Design Lab. Each apparatus prints items designed on CAD software; during the grand opening event, the machines produced knit kitchen gloves, custom seamless dresses and three-ply blankets.  

A knit-bot machine prints three-dimensional fabrics complete with electronic sensors. At the opening, a staff member hooked a spiraled piece of fabric into a control system and rolled it across the table remotely. Observers seemed impressed by the novelty, but Kim says knit-bot technology has implications for the future: One day you might be able to change the color and cut of your shirt with the press of a button, and sensors-enhanced fabrics could help individuals monitor health and weight. In addition, skins from these textiles could make plastic robots more resilient, while external sensors could help disaster-relief androids respond immediately to challenging environments.

Kim runs Drexel's Music Entertainment Technology Labratory, home to robots that dance and play music. He conceived of the center nearly two years ago while holding cross-departmental faculty meetings as a solution to academic silos. It wasn’t long before other key local institutions, including the Science Center, the Philadelphia Opera Company and the Franklin Institute, joined the planning.

"We can do great things here with Drexel folks, but there’s great people with ideas at Penn, UArts, Philadelphia University, Temple and Swarthmore," says  Kim. “They’re people that we know. A lot of people throughout the region, not just in academia, helped shape this."

Source: Youngmoo Kim, Drexel ExCITe
Writer: Dana Henry

Job Alert: Zokos, catalyst for friend-funded dinner parties, seeks web developers

In the age of Wiki-pages, Kickstarter and crowd-funded banking, something as routine as dinner can be crowdsourced. At least that’s what the cofounders of Zokos—Christopher Kieran, Bradley Baer, Andrew Hapke and Roger Vandervort—are betting on. Their site helps hosts plan and fund dinner parties by engaging guests in their extended social networks. The team recently moved their headquarters from New York City to Benjamin’s Desk in Center City, Philadelphia, and plans to hire web-developers (particularly Ruby developers) early next year.

Unlike potluck invitations, which are well served by Facebook or Evite, Zokos assumes some people enjoy planning events while others wouldn’t mind contributing a little money in order to partake. The cofounders were pursuing master’s degrees at Yale when they met at the popular Veggie Dinner Club and discovered the appeal of peer-networked meals.

“I was able to have an unbelievable dinner with 10 to 20 interesting people,” explains Baer. “Often these dinners would turn into longer events where I'd make several new friends and connections.”

The Zokos dining community is modeled on the vibrant social exchanges available on a university campus. In addition to the funding feature, Zokos allows hosts to reach out to friends-of-friends, collaborate on the menu with their guests, and join a larger network of foodies and event enthusiasts. Interest groups and book clubs use the platform to plan dinners and fundraising occations. So far, over 4,000 parties have been successfully created, and roughly five percent of guests return to the site as hosts. The company also launched Zokits, a source for complete event planning roadmaps developed by industry experts. As more and more twenty-and-thirty-somethings stray from traditional family life, Zokos could be the antidote to eating alone.

“While good food, saving time and saving money is important, it's all about finding anything that brings people together,” says Baer.

Source: Brad Baer, Zokos
Writer: Dana Henry

AboutOne expands with a new service for foster children

On the heels of the passage of Pennsylvania’s Act 152, Joanne Lang, founder and CEO of AboutOne, is leading the way for local B-corporations. The company, which developed an app that simplifies access to an individual’s health records and other vital documents, has reached over 100,000 caregivers and is now tackling a brand new challenge—the Department of Human Services.  

The Communication Station is AboutOne’s co-brand for guardians of foster children. Nationally, there are over 600,000 children in foster care. Because most of these children change families multiple times, tracking health, education and even personal memories is a challenge. The Communication Station will provide a private place for those files and motivate foster parents to store important documents with gift vouchers. The platform is particularly enticing for state governments—they are now federally mandated to furnish medical data for foster children when they turn 18.

"We can save [social services] months of time and money meeting their legal requirements by providing that information for them," says Lang. "We have to take small steps and get this version working. In the longer term, we can use it to grow the company because we will have a proven solution to sell to states and cities all over the USA."

The new brand has received an endorsement from Mayor Nutter and DHS Commissioner Anne Marie Ambrose. The Child Welfare League of America is already organizing a consortium of municipal and state clients. Lang expects to pilot The Communication Station for The City of Philadelphia and is reaching out for crowd funding through IndieGoGo.

"The Communication Station needs some special features and a special game design," she explains. "We can’t fund this co-brand by ourselves. I had a choice: sit and wait, or do what I do best as an entrepreneur—overcome barriers, think of new and lateral ways to fund this small pilot quickly, and move forward."

Since launching over a year ago, AboutOne has grown their staff by 300 percent and signed with larger caregiving businesses. Lang, who is also a mother of four sons, was recently selected for Dell’s Founders Club. Despite her national ambitions, Lang says she’s determined to stay in Philadelphia, and credits Mayor Nutter and Philadelphia Startup League for helping so many grow their dreams.

"A woman in technology—with children—can grow a startup company here in PA and be successful here in PA," she says. "You don’t need to move to Silicon Valley or anywhere else."

Source: Joanne Lang, AboutOne
Writer: Dana Henry 

Update: NextFab's Washington Avenue grand opening rescheduled for Jan. 17

Washington Avenue West—the gritty home to plumbers, mechanics and supply outlets—is the new landing spot for Philly’s next generation of fabricators. After months of construction, NextFab Studio is set to reopen in a 21,000-square-foot workspace nearly five times the size of their former University City location. Unfortunately, due to some delays, the grand opening celebration has been moved to January 17, 2012.

NextFab has helped springboard a local ecosystem of high-tech creative entrepreneurship, a community that now includes Breadboard Philly and Drexel’s ExCITe. In addition to readily available 3D printers, laser cutters and robotics paraphernalia, Philly’s “Gym for Innovators” will now feature a loading dock, a crane, an industrial textile machine and an auto lift. Stay tuned for more information on their new facilities and grand opening party.

Source: NextFab
Writer: Dana Henry

Graduation day at Good Company Ventures, supporter of socially-minded startups

It’s great to hear a company wants to "go green" or pay a "living wage," but for the startups at Good Company Ventures social capital is at the core of their operations. The 2012 graduates—a group that features low-cost geothermal technology, a social crowd-sourcing platform and a green laundry service with an eye towards workforce development—are in the midst of first-round fundraising, and at least one company has gained nearly $1 million in investment. These innovators will join leaders of the public and private sector on Tuesday November, 20 at First Round Capital, for a public graduation reception and networking event.

Regalii, one of the graduating businesses, enables Latino immigrants to send remittances in the form of store credit via text. While their service has a clear social value—it protects the sender from predatory fees and the receiver from robbery—the stores lose value because they sell credits to Regalii in bulk. According to Zoe Selzer, executive director of the Good Company Group, this kind of value proposition triangle (where the purchaser is not the benefactor) can make the social venture business model tricky.
 
“We look for companies where the market strategy is not necessarily intuitive," Selzer says. "A lot of accelerator programs focus on the development of the product. We assume that people in our incubator have a product of pretty good value and what they really need to focus on is how to translate their good idea into something really valuable in the marketplace."
 
Good Company merged with Green Village Incubator in March 2012. The ventures are operational when accepted into the accelerator program and spend each week working through issues a potential investor would raise. They get feedback and advice from a panel of business and venture capital experts as well as their peers. The process often results in a complete reworking of the company’s value proposition. Edi Bikes, which relocated from Chicago, entered the program expecting to provide bike customers roadside assistance. They now focus on commuter-centric engineering.  
 
"[These companies] can’t just assume that their social mission is going to carry them forward," says Selzer. "You have to answer all [investor] questions if you want to be considered for a second meeting. We’re not giving any passes because you're trying to save the world."
 
Over the past three years, Good Company Ventures graduates have raise over $30 million of investment. This year, Wash Cycle Laundry will graduate and hire its sixteenth employee. Other startups, including Start Some Good, continue attracting venture capital and national press, proving companies that do good can also do well. 

Source: Zoe Selzer, Good Company Ventures
Writer: Dana Henry

Job Alert: Rumble bets on the mobile newspaper revival

Last year Eyal (Al) Azoulay, co-founder and CEO of Rumble and self-proclaimed news junky, bought his first tablet. He expected to view his favorite titles on the go, but there was not a single app for his choices. He was not alone in his disappointment—according to a study by Kontera, mobile accounts for 27 percent of all content consumed on the web (up 430 percent from last year) and news outlets, particularly traditional print media, continue losing readership as they struggle to adapt.
 
Rumble, based in Philadelphia and Tel-Aviv, and accelerated at the Project Liberty Digital Incubator at the Inquirer/Daily News offices, is a catchall content distribution system for mobile devices poised to conquer this digital divide. They’ve secured $1 million in investments and are hiring rapidly: Seven positions are currently open in sales and marketing.
 
Over the past five years, the print to web shift has resulted in billions of lost revenue for the newspaper industry. Mobile content represents an entirely different set of complex technologies and user interaction issues, and can be overwhelming to newspaper managers who are down to 70 percent of their heyday budget and workforce. "[Newspaper managers] honestly don’t even have the time to think about a strategy across mobile, let alone execute one," says Azoulay.
 
The problem is even more severe for mega publishers such as Conde Nast, Gannett, Lee, Knight Rider and Mcklechy—often each title will create individual apps. "As a mega publisher, your network of titles is completely fragmented," says Azoule. "Rumble offers the mega publisher one platform to unify all titles over all mobile devices and leverages the entire network as one."
 
Newspapers, Azoulay points out, are experts in content creation, not software. With the fourth version of the iPad rolling out after just two years, it’s hard to justify the major upfront investment required for the print-mobile switch. Rumble offers a backend system that publishes across all mobile devices and hosts a complete set of content-related features, including mobile-specific layout, performance tracking, revenue modeling and social media tools. After newspapers, Azoulay and his cofounders—Itai Cohen and Uyen Tieu, who’s served in executive sales and marketing positions for Microsoft and Viacom—expect to add trade publications and television news clients with similar needs.
 
There are over 1,600 newspapers and 2,000 university publications. Currently, news media gains only $1 from mobile platforms for every $9 they’ve lost, but Azoulay believes that’s all about to change. Mobile usage reveals not just consumers’ demographics and preferences, but where they are and what they’re doing. Of the $30 billion dollars spent annually on advertising, seventy percent come from local ads and no one is more capable of capitalizing on that revenue than newspapers.
 
"If you couple that with the highly sophisticated targeting available through mobile, you get one of the best combinations you can leverage," he says. "There’s no question that we will learn how to monetize on mobile devices very well."

Source: Eyal Azoulay, Rumble
Writer: Dana Henry

Founder Factory: It's a great time to start a business in Philadelphia

Now is a great time to start a business in Philly: Philadelphia Startup Leaders has steadily grown to 1,800 members and launched PSL University, The City gained its first seed fund and an Office of New Urban Mechanics, and First Round Capital is taking lead in bringing more VC’s back inside our urban boundaries. The upcoming PSL Founder Factory—at World Café Live on Thursday, Nov. 15—will prime entrepreneurs with true-to-life lessons from exemplary risk takers.

“There are similar challenges that companies at any stage face,” Gloria Bell, event organizer for PSL and founder of Red Stapler Consulting, says. “Each year we have focused on a different aspect of building and running a startup using the collective wisdom of local entrepreneurs.”

Previous Founders Factories helped hopefuls polish their pitches and investor sweet talk.  This year, in response to member surveys and talk-list discussions, PSL broadens the programing, hosting talks from a diverse range of experienced local entrepreneurs—Leadnomics, PTM Solutions and Chariot Solutions, are represented—followed by workshops and small group discussions. Topics cover the essentials including customer development, internal metrics, and company culture.  Josh Kopelman of First Round and Michael Golden, co-founder of GSI Commerce and president and founder of ShopRunner, are the keynote speakers and will share the changing realities of entrepreneurship.  Hint: Kopelman, an accomplished Wharton grad and founder of successful tech ventures including Half.com, recently moved First Round near two of Philly’s thriving universities. It’s a sign of things to come.

 “There has been such tremendous growth in the startup community,” Bell says. “The recognition of business and city government of the contribution of the startup community to the overall economic health of the region has been a strong motivator. The area's entrepreneurs are well-equipped to build strong, sustainable, profitable companies."

Source: Gloria Bell, Philly Starup Leaders
Writer: Dana Henry

The Corzo Center cooks up a new batch of creative entreprenures

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

Conshohocken startup expects Real Food to win over Philly, hiring

Anyone whose attempted vegetarianism knows eating more plants can mean endless hours in the kitchen. There are special groceries and lengthy chopping sessions, not to mention the new-recipe-learning-curve. Conshohocken-based Real Food Works is launching a weekly subscription meal service offering fresh, local, plant-based entres with vegitarian and ominvor options. They are currently hiring a web engineer and expect to hire more positions early next year.

“With a plant-based diet you’re working pretty much from scratch,” Mike Krupit, co-found of Real Food Works and dietary convert, explains. “On Sunday I would spend a good four or five hours in the kitchen cooking four or five days’ worth of meals for myself. You’re not dealing with complex ingredients, but in order to get something to taste good and have a variety of ingredients requires a whole bunch of time.” 

At heart, Real Food Works is a tech business that connects customers to local chefs. Early in the week, when kitchens are staffed but don’t get many customers, the company commissions meals that meet stringent nutritional requirements. They currently matches customers with kitchens at Trattoria Totaro, Miss Rachel's Pantry, Eat Your Heart Out Edibles, Turnersville, Su Tao Cafe, Earth Elements, Stella Blu, Gypsy Saloon, and Wine Thief.

As Krupit explains, responsible eating has been chalked up to personal education. Someone looking to change their diet might read a book, follow a website, or join a meetup group. Real Food Works aims to give national traction to the plant-based movement by selling it. Krupit, and his cofounder, Lucinda Duncalfe, are experienced tech entreprenures and avid plant eaters, who say changing their diet changed their lives.They expect that other professionals will embrace the opportunity to make the switch without the hassle.

“When you look at national subscription meal plans, their food sucks,”  Krupit says. “We provide high-quality food that’s fresh and we came up with a model that can grow across the country.” 

Source: Mike Krupit, Real Food Works
Writer: Dana Henry

Temple-hosted 'incubator' aims to solve Philadelphia region's STEM gap

On Tuesday, Oct. 23, local businesses, community colleges, education professionals and tech advisors met at Temple University for the first Delaware Valley STEM Workforce Development Conference. The ongoing incubator, which addresses issues related to the gap in STEM education and the growing number of tech-sector jobs, launched an “enabling committee” to foster partnerships between businesses and schools in Greater Philadelphia. 

According to Ed Zenzola, conference speaker and principal of Zenzola Group, our education system increasingly requires the expertise and advice of small to large business owners to stay relevant in the digital economy. Nationally, over three million STEM-related jobs are unfilled because employers can’t find qualified workers.

“You could hire an engineer, but you still have to train them,” Zenzola says. “There’s not enough happening in K-12 to build the imagination for students to want to go into STEM fields. Even when we do have students going through STEM curriculum, the curriculum isn’t designed to produce the work ready skills that the employers need.”

The conference, sponsored by Temple’s College of Engineering and the Global Program Partners, included presentations by Tracy Welson-Rossman, Founder of TechGirlz; Craig White,President & CEO of Philadelphia Gas Works, and Albert Frattarola, Director Global Technology, Southco. Many noted the STEM gap is not simply a higher ed issue.
 
“[STEM qualifications] are particularly critical at the technician level,” Zenzola says. “We just don’t have enough people coming out of high school, community colleges and vocational schools with work ready ]technical skills. People might think [Philadelphia] has a lot of welders—we don’t. Welding is becoming increasingly specialized.”

Zenzola, like many presenters, advocates project-based STEM learning for K12 and looks to the business community for leadership. Dr. Jamie Bracey, an educational psychology professor at Temple and director of Philadelphia's Math Engineering Science Achievement Initiative, has seen the dramatic effect of workshop learning on students and says guidance from the private sector also helps teachers do a better job.
 
“Educators need direction as to what business project they’re going to need in five years and 10 years so we can align the programs," Bracey says.“I love seeing the corporations that are the end users inside education and the people who are starting businesses having a much stronger voice in the classroom.” 

Source: Ed Zenzola, Jamie Bracey, Delaware Valley STEM Workforce Development Conference
Writer: Dana Henry

How our startup community got a $3 million seed fund from the City of Philadelphia

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?
 
A year later, this working group drafted a Request For Proposal now known as Startup PHL. No one doubted the increased momentum of the past five years--Philly has a growing number of talented risk-takers, coworking spaces, incubators and organizations supporting entrepreneurship. New businesses, particularly tech businesses, are successfully launching.
 
"This isn't about the city stepping in to fix something that's broken," Bob Moul, head of Philly Startup Leaders and CEO of AppReniassance says. "Here's a sector that's been really self-sufficient and grassroots. The city would like to see that be consistent and happen on a regular basis."
 
Unfortunately, many of these promising startups continue to leave for New York and other cities where they can secure investment.
 
"The lack of early seed stage capital has had a definite impact on the region," Moul says. "If we're not careful, Philly's going to become known as a great catalyst but a net exporter of great opportunities."
 
At the Mayor's request, the group began a due diligence process using NYC Seed as an example. The City is currently accepting bids on Startup PHL from venture capitalists and expects to announce the fund's manager mid-December.
 
Integral to the $3 million seed fund, Startup PHL's challenge fund is a public request for structural recommendations to encourage continued startup growth. Areas of interest include collaboration between supporting organizations, integration of universities and emerging business, and connection between suburban early stage companies and urban startups. Moul advocates subsidized space to foster entrepreneurship.

In 2008, NYC Seed was New York City's first venture fund. Now they have over 20. Starting with the same amount of money, NYC Seed was picked up by University City-based First Round Capital, which added $19 million. Moul believes Philly can grow $15-$20 million.

"If we can pick the winning companies and keep them in Philadelphia, the net impact in three to five years is going to be significant, Moul says.
 
According to Moul, Startup PHL ultimatly began with the Mayor's growing recognition of the startup community.
 
"In the last year we've really turned a corner," Moul says. "All these [startup] organizations were running their own missions, and doing their own plans. What I've seen in the past year or two is a willingness to gather around a table, collaborate and leverage our combined resources. The city saw that."

Source: Bob Moul, Philly Startup Leaders
Writer: Dana Henry


ModSolar closes costly loophole for the solar industry, experiencing rapid growth and hiring again

Since launching last June, ModSolar facilitated over $5 billion in solar transactions, with thousands of proposals generated every month. Their app helps installers cut down on “soft cost” associated with creating sales, and allows solar companies to pursue more leads. They are designing new product features and hiring developers.
 
The ModSolar concept came to Mike Dershowitz, the company’s co-founder and CEO, while investigating solar options for his new home. The former design manager for JPMorganChase, discovered the solar industry was stuck in antiquated methods of appraisal. He got to work building an experimental mobile solution, later used by an emerging sole installer during a home trade show.
 
“The big [solar] companies generated 15 or 20 leads, but [our client] generated 113 leads by using the iPad app we developed,” Dershowitz says. “At one point there were lines at his booth of people wanting to get a solar quote. We knew that we could apply sales technology to the solar industry and really make an impact.”
 
“Previously, the sales person would have to visit a home, get up on the roof, take some measurements,  do a [solar] panel design, figure out how many [solar] panels they needed—you have to do all this by hand—then [the salesperson] went back to the office, crunched the numbers, and put a proposal together. We've eliminated all that. You can actually do a design for a solar system from your office before you get to the homeowner, pushing the designing and quoting down to the salesperson,” Dershowitz says.   
 
Dershowitz estimates 40 percent of the price of installing solar is “soft costs” or transactions that don’t include parts and labor. He says discrepancies between federal and municipal electric codes and inconsistent building codes contribute to soft costs for American buyers, which is more than double the expense paid in Germany. By comparison, Germany now gets 30 percent of their power from the sun.  Soft costs are a major setback to the industry’s domestic growth and our energy future.
 
ModSolar developed a complex “matching system” that automates current codes, utility rates and financing options for individual sites and has helped small and national companies produce accurate quotes in a third the time. With shorter sales, clients report a 10-20 percent increase in customer acquisition. The number of ModSolar clients and the size of their purchased subscriptions continue to grow.
 
“With the same amount of resources, [solar installers] can approach more opportunities,” Dershowitz says. “The home improvement industry is ripe for someone to help these folks who may not be digitally oriented, handle their business.”
 
The company, which recently moved from Malvern to Ardmore, looks forward to releasing finance and e-commerce solutions, including a platform that connects home owners to inventory providers.  According to the Interstate Renewable Energy Council, photovoltaic installations quadrupled in the United States between 2005 and 2010. With deflating soft costs, and increasing sales, ModSolar is providing disruptive technology that will make solar an increasingly affordable option for years to come. 

Source: Mike Dershowitz, ModSolar
Writer: Dana Henry


Lots to celebrate, including three winning projects, from State Of Young Philly 2012

By all accounts, the fully revamped State of Young Philly 2012 was a breakout success. From the 12 events that sold out at more than 75 attendees apiece, to the closeout dance party where local leaders and dedicated volunteers partook in the Electric Slide, Young Involved Philadelphia (YIP) proved it could pull off a civic-advocacy conference that was bigger, livelier and more ambitious than any seen in Philly to date. 

“It’s that whimsical optimism you have when you’re young,” Sophia Hwang, Outreach Coordinator of YIP, says. “But [YIP] is also rooted in doing good work.”

Pennsylvania State Rep. Brian Sims came by Hamilton Hall at University of the Arts for Saturday’s closing ceremony to commend YIP. He encouraged everyone in the audience, which he recognized as Philadelphia’s rising leadership, to run for political office. 

SYOP’s greatest achievement, however, may have been the launch of three projects, winners of the culminating YIP Challenge: It’s My Life in the education track, OKWork!Philly in the economy track and Bike Generator Demonstrator in the sustainability track. All three received $1,000 seed money and YIP will continue to provide them with networking and public relations assistance.

Lawanda Horton Sauter, CEO of Mission Incorporated, will pilot It’s My Life at four area high schools and help students use live theater to safely practice situation related to their sexual health. Sauter was inspired by her young, HIV-positive client and has been researching staggering realities of rising STD rates among youth.

“[The YIP Challenge] really encourages the next generation of social entrepreneurs to do things that impact the community instead of just worrying about the bottom line for their companies,” Sauter says. “[YIP] made this possible by opening it up to so many people regardless of what their ‘connections’ were.”

OKWork!Philly was created by four UPenn recent graduates—David Wengert, Anne Misak, Maurie Smith and Elizabeth Frantz—three of which are currently seeking employment. Their concept harnesses the networking power of LinkedIn to create a more effective web platform for local hiring.

“It benefits Philly to have jobs filled faster,” Misak says. “We want one central place where you can see a job posting, apply directly through the website and then see who in your network is connected to the employer and ask them to write a personalized recommendation. [OKWork!Philly] will save time and money on both the employer side and job seekers side.”

Aaron Roche, a structural engineer who graduated from Drexel, met recent transplant, Becky Schwartz, during SYOP’s Sustainability 101 event. Together they teamed up with Matt Weaver to develop Bike Generator Demonstrator, a design project that powers light bulbs and small electronic appliances using human-power generated from a bicycle.

“One of our goals is to generate interest in energy efficiency,” Roche says. “How can these common appliances be powered in such a simple way?”

According to Hwang, it takes just one voice to start an avalanche of change:  “A single individual came to State of Young Philly last year and said, ‘it was good but not good enough.’ We met with him, had coffee, and this [year’s programming] was what we did. We’re young, we’re nimble, we’re flexible, so if you have an idea, let’s run with it.” Hwang says.

As noted by YIP’s board chair, Claire Robertson-Kraft, Philadelphia now retains twice the local university graduates it did a decade ago and offers an increasing number of “friends of” groups connected to YIP. SYOP 2012 may be a sample of what YIP will show us for years to come.

Source: Sophia Hwang, Rudy Flesher, Claire Robertson-Kraft, Young Involved Philadelphia
Writer: Dana Henry
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