2014 Alabama Launchpad Annual Report

2 0 1 4 A N N U A L R E P O R T

Success in Alabama

M O R E T H A N A S T A R T U P C O M P E T I T I O N

All About Entrepreneurs and Innovation

As the Economic Development Partnership of Alabama moves with excitement into a new,

promising year, Alabama Launchpad remains focused on what matters:

building a unified voice for entrepreneurs and innovators in Alabama. In 2014, Alabama Launchpad funded more startups and added new programs to help entrepreneurs all along

the capital continuum, from idea through concept and to the seed and growth stages.

We are proud that Alabama Launchpad companies have created 305 knowledge-based jobs and have raised

$20.4 million in follow-on funding. Meet the 2014 entrepreneurs and innovators and celebrate their achievements.

{ Angela Wier Economic Development Partnership of Alabama vice president }

“Alabama Launchpad is important to the state because it helps innovative companies succeed. We’re trying to help small

companies get started and reward them for what they do because these

companies create jobs.”

Alabama Governor Robert Bentley

3 By the Numbers

4 Startup Profiles

25 Conference

26 Innovation Awards

35 The People Behind Launchpad

Contents

2014 BY THE NUMBERS

“Alabama has a rich history of innovation and discovery. Alabama

Launchpad is to be commended for honoring the innovation and

recognizing the positive effect it has on business and on society. The hard work of the individuals and the companies honored through the 2014 Alabama Innovation Awards continues to position this state as a leader in technology and innovation.”

Harris Morrissette China Doll/Dixie Lily Foodspresident

“From the standpoint of The University of Alabama’s interests, the EDPA

Foundation has provided tremendous opportunities for our students

and faculty. Seed support, interactions and subsequent collaborations across our state have been profound.

In just one example, UA utilized a modest amount of state

and EDPA Foundation support to further develop eight UA-based

technologies over the last three years.“

Dr. Carl A. Pinkert The University of Alabamavice president for research and economic development

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$20,400,000

305

324PEOPLE TRAINED IN WORKSHOPS

12 708INNOVATION

WORKSHOPS HELD IN SIX COMMUNITIES

APPLICATIONS RECEIVED FOR 2014 ALABAMA

INNOVATION AWARDS

INDIVIDUALS/COMPANIES HONORED AS

2014 ALABAMA INNOVATION AWARD

WINNERS

KNOWLEDGE-BASED JOBS CREATED

$385,387IN STARTUP FUNDS

AWARDED

I N F O L L O W - O N F U N D I N G

Launchpad provided Swell Fundraising with critical seed capital at a crucial time in our growth. Without

it, we would not have a shot at the next round. Submitting plans, receiving feedback and ultimately

facing a 10-minute, ‘shark-tank’ pitch from five esteemed judges caused me to analyze the company critically.

I recognized weaknesses in the business and changed my focus as the founder. Swell Fundraising is stronger as

a result.”

{ Brooke Battle Swell Fundraising founder }

Swell Fundraising helps nonprofit organizations increase revenue and acquire new donors

through their fundraising events. The company provides a unique peer-to-peer

fundraising solution that activates guests to share and fund causes by displaying results

and social media posts real time during the event.

Brooke BattleSwell Fundraising

swellfundraising.com


Funds from Alabama Launchpad will provide valuable support to translate the initial, research-grade

prototype that we have built into a commercial-grade hyperspectral imaging platform for endoscopy and

microscopy. The limited availability of federal funding for translating research ideas to commercial technologies

underscores the need for programs such as Alabama Launchpad, whose foresight enables Alabamians to

capitalize on the inventiveness of their universities and make a difference in people’s lives and their standard of

living.”

{ Dr. Silas Leavesley SpectraCyte ceo }

The primary goal of SpectraCyte, a startup business located in Mobile and founded by a

University of South Alabama-affiliated research team, is to provide a next-generation gastrointestinal

endoscope that will allow improved sensitivity and specificity for early detection of colorectal cancers.

SpectraCyte, co-founded by Dr.Silas Leavesley, assistant professor of chemical and biomolecular engineering,

and Dr. Thomas Rich, associate professor of pharmacology, will also offer an imaging add-on for research

microscopes that utilizes the same high-speed hyperspectral imaging technology.

Dr. Tom Rich and Dr. Silas LeavesleySpectraCyte


IMAGE COURTESY OF UNIVERSITY OF SOUTH ALABAMA

The Alabama Launchpad competition was the catalyst that took an interesting business school idea from

a concept to a reality. Beyond the obvious advantages from being awarded a cash prize, we received

tremendous additional benefits in the form of mentorship, pitch presentation design, presentation critiques from

local business leaders, and an extended network of other like-minded entrepreneurs. Each step and phase of the

competition challenged us to improve our business model and taught us how to present it to potential investors.

As a result, we’ve had a great deal of success in other business plan competitions and with finding capital investors.

Anyone with a business or an idea should take the time to participate; it can only make you better.”

{ Basham Johnson ALTEG co-founder }

Basham JohnsonALTEG


ALTEG brings to market solid state energy solutions that improve efficiency and reliability for military,

commercial, and general aviation aircraft. In partnership with Hi-Z technologies, the firm will expand

the use of thermoelectrics long used in space exploration and will drive innovations

in the automotive industry to today’s modern aircraft. ALTEG’s products are designed to integrate

into the exhaust and bleed air systems of aircraft to capture the wasted heat present and convert that into

usable electricity to power primary and secondary systems. The subsequent reduction in loading

on engine driven generators increases available power and improves fuel efficiency, as much as 2 to 3%.

Unlike conventional generators, ALTEG’s thermoelectric generators have no moving parts and

lifespans that can exceed the operating life of the aircraft itself.

Alabama Launchpad was instrumental in helping us fund critical enhancements to our technology that

enabled us to continue moving the business forward.”

{ Dr. Michael Blackstone Suture Health ceo/founder }

Suture Health, Inc. is a medical technology and services company that connects the fractured

healthcare community with clinically-relevant, value-based services via a virtual network of providers.

Eliminating the antiquated fax machine, Suture Health currently offers SutureSign, an electronic signature

network that enables physicians to electronically sign documents from any participating provider in one place.

Consequently, it enables physicians to capture additional revenue while improving cash flow for outside

providers, such as home health or hospice companies. Furthermore, Suture Health provides a follow-up

service to improve signature compliance and reduce turnaround time. Suture Health is now enhancing the

collaboration platform to lead the industry in care coordination, care processing and patient engagement —

furthering its mission to seamlessly move the patient through the continuum of care.

Michael BlackstoneSuture Health

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suturehealth.com

Our participation in the Alabama Launchpad process has been instrumental to our structured growth

and taught us to fine tune focus for future business gain and growth. The funds we received have been

instrumental to our attendance at the world’s largest industry trade show for our business. We were able to take

full advantage of the opportunity for visibility and marketing, and we even won a Global Award! EDPA, BBA and

Alabama Launchpad are a unique combination of support to all small businesses and startups.”

{ Tess Winningham Alignment Simple Solutions ceo }

Tess WinninghamAlignment Simple Solutions

alignmentsimplesolutions.com


Alignment Simple Solutions manufactures QuickTrick Alignment Tools. QuickTrick tools are designed

to improve performance and lengthen tire life through early and fast diagnosis of wheel alignment issues

on any vehicle. QuickTrick provides the ability to reduce risk and damage through early detection without

cumbersome equipment and eliminates the need for a lift when measuring. Alignment Simple Solutions

started in 2010 as a home hobby when the first QuickTrick stick was developed for use for Chump Car

races to adjust the race car alignment for each track. The corporation was formed in 2012 as a means

to share the passion for the automotive aftermarket with others and provide local jobs. Its mission is

to provide sustainable employment through the manufacture of quality wheel alignment products.

Alabama Launchpad was instrumental in helping us begin turning our big idea into a sustainable business.

The mentorship, feedback, and rigorous review process were invaluable. Apart from the funding we

needed to launch, EDPA provided a wealth of knowledge, resources to validate our market, and enabled us to

focus on the core business fundamentals that are critical for success. Alabama Launchpad is an incredible asset

for entrepreneurs in our state and has undoubtedly helped position our startup for success.”

{ Larry Lawal Healthfundit ceo/founder }

Too often, highly promising research projects are never actualized, entire research avenues

go unexplored, and patients and their loved ones are left hoping for a medical discovery that may not come

in time because of shortcomings and problems inherent in current funding mechanisms.

Healthfundit is a technology venture focused on funding better health. Healthfundit’s initial product is a

crowdfunding platform that empowers individuals to discover, promote, and fund both potentially lifesaving

medical research and health expenses.

Larry LawalHealthfundit


healthfundit.com

Cheeriodicals benefited in so many ways by being a part of Alabama Launchpad. The way that is obvious

to all is to be one of the winners and gain the $43,250 in funding to help grow our business. In addition

to the funding, the competition process pushed us to closely evaluate our business, focus on the direction

of our company and dig into the details of our decision-making. The coaches and mentors provided us with

great feedback during the competition, which helped us sharpen our business plan and focus. Lastly, we really

enjoyed getting to know the other companies involved in Launchpad. We realized that we had a lot in common,

and we made some great business connections and friends along the way.”

{ Mary Martha Parisher Cheeriodicals founder }

Mary Martha and Gary ParisherCheeriodicals

cheeriodicals.com


Cheeriodicals is a company that provides corporate team-building events where participants assemble

hundreds of Cheeriodicals gift boxes filled with age-appropriate magazines, puzzles and crafts. After the

event, Cheeriodicals and their corporate clients travel to the local children’s hospitals to distribute the gifts

throughout the hospital (such that every child in the hospital that day receives a big green box

of cheer). Corporate clients benefit from working with Cheeriodicals in that their employees participate in an

amazing team-building event that directly impacts their local community while satisfying ‘corporate social

responsibility’ goals and objectives. Cheeriodicals provides a unique alternative in the online gifting

industry with upscale hospital and get-well-soon gifts intended for individuals.

Alabama Launchpad does much more than provide startup capital. The feedback given from the judges

on how to present your business idea in a way that translates to people no matter their industry or

level of education was invaluable. In the beginning, I had very little business experience and was relying on the

passion I had for my idea to carry me through. Launchpad really helped me shape my idea and make it a more

complete business.”

{ Ben Bickerstaff Bidsters ceo/founder }

Bidsters’ mission is to provide a simple yet effective form of communication for

construction industry professionals. Currently, Bidsters offers tools to help general contractors

connect with subcontractors and streamline the bidding process.

Ben BickerstaffBidsters


bidstersusa.com

Participating in Alabama Launchpad was one of the most educational and rewarding experiences of my

professional career - value that goes far beyond the award amount. Their process forces you to examine

every part of your business, uncovering any possible pitfalls or roadblocks along the way, then formulate and

pitch a plan to address those issues. I’d recommend any entrepreneur participate in Launchpad.”

{ Patrick Campbell Paperless PCS founder }

Paperless PCS was founded in Birmingham with the intent of offering electronic signature and document

management technology via an online software as a service platform tailored to the healthcare market.

Paperless PCS was built initially to respond to the needs of ambulance and EMS providers servicing

non-emergency transport to Medicare patients who experience a 40% rejection rate on Physician’s

Certification Statement (PCS) submissions. Paperless PCS envisions a system that automates the PCS

completion and submission process. Unlike today’s process, which is primarily composed of the completion

of paper forms, Paperless PCS’s technology — when commercialized — eliminates the paper process,

reduces the process time, improves form completions and increases reimbursement rates.

Paperless PCS is currently expanding its offerings to include documentation needs of the medical supply

industry and various other products and providers within the healthcare vertical.

Patrick CampbellPaperless PCS

paperlesspcs.com


Young startups face myriad difficulties. Like so many others, Vastly Inc. (formerly Complexity Engine)

was in desperate need of cash before we could launch. Had it not been for the EDPA’s financial support,

I am not sure our small company would be where we are today. While the cash award has been essential to

launching our startup, I would be remiss if I did not mention the intangibles we received during the competition

itself. Going through three rounds of “pitch and revise” helped us refine our business model. Answering difficult

questions led us to the realization that we were missing an entirely new market. Speaking before an intelligent

and engaged audience increased our confidence as well as our ability to sell ourselves first and our product

second. I never understood that you sell yourself first and your idea second, and that may have been the most

crucial lesson we learned through the process.”

{ Dr. Philip Kovacs Vastly Inc developer }

Vastly Inc., formerly Complexity Engine, uses a sophisticated algorithm to search websites for content

and delivers free, customized and age-appropriate reading materials to a user’s computer. It promises

to give teachers, parents and students an efficient, affordable way to promote reading. Teachers and

administrators can set parameters for the search results, and the reading experience can be either student

self-directed or guided by the teacher. Vastly, Inc. was conceived by Dr. Philip Kovacs, a professor of education

at the University of Alabama in Huntsville, who is collaborating with Dr. Ryan Weber, an assistant professor

of English, and Georgia Institute of Technology student Tripp Roberts.

Dr. Philip Kovacs and Dr. Ryan WeberVastly, Inc.


IMAGE COURTESY OF MICHAEL MERCIER, UAH OFFICE OF MARKETING AND COMMUNICATIONS


“UAB has partnered with EDPA Foundation’s Alabama Launchpad for

eight years to accelerate commercialization of early stage technologies.

Spinouts from our university have done well in their competitions, and

Birmingham’s economy has benefitted from the impact that the participating companies have had. Launchpad is a true partnership of business, educators, and government

working together to create technology-rich companies in Alabama.”

Dr. Richard Marchase the University of Alabama at Birminghamvice president for research and economic development

“Alabama Launchpad understands that without risks, there cannot

be breakthroughs. They have embraced innovation and are elevating entrepreneurship to the forefront

to create and shape Alabama’s future economy.”

Peter Diamandis the X PRIZE Foundationchairman and ceo

Scenes from the

2014 Startup Competition


BLOX LLC resurrected a site in Bessemer, formerly used to build railroad boxcars, and now produces time-saving medical modules for patient rooms at some of the nation’s largest hospital groups.

In less than three years, the business increased its number of Alabama-based employees from six to 100. The employees design and construct modular headwalls, restrooms and exam rooms for companies, including HealthSouth, Hospital Corporation of America and Cardiovascular Associates.

The company is led by Chris Giattina, the CEO and chief strategist, who believes it’s always possible to build better and more efficient projects.

“Anything that can be done modular can impact the critical path and reduce the construction time,” said Scott Kubisyn, the company’s director of corporate development. “BLOX takes some of the complexity out of the process.”

Outstanding Startup Business

Atherotech Diagnostics Lab has led the cardio-diagnostic industry in recent years with its proprietary technology, the patented VAP Lipid Panel.® But the company’s leaders have taken Atherotech even farther using innovative approaches to technology, education and distribution.

In 2013, Atherotech launched the second generation lipid profile, the VAP + Lipid Panel® (VAP+), which includes a one-of-a-kind Vertical Lipoprotein Particle technology to provide a true lipoprotein particle count. The success of Atherotech’s technology has led the company to hire 200 more people and growth is expected to continue.

“Our tools help doctors by providing accurate information, so they can develop effective individualized treatment plans and track patient progress in battling heart disease,” said Jonathon Morgan, marketing communications manager for the company.

Corporate Innovator of the Year

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Dr. Emil Jovanov, an associate professor in the University of Alabama in Huntsville’s Electrical and Computer Engineering Department, has two patents for the Smart Bottle that reminds patients when to take their medicine. One of the students included in the project, Sreca Jovanov, is also a co-inventor on the original patent for his contributions in the sensor development.

Dr. Jovanov involves students in his projects because he wants to inspire the next generation of innovators.

“I like to incorporate senior design students and graduate students on research projects,” Dr. Jovanov said. “It enhances the quality of education by providing them an opportunity to collaborate.”

Inventor of the Year

Conversant Bio is located in HudsonAlpha Institute for Biotechnology, but its work touches laboratories and biotechnology companies throughout the country.

The company’s co-founders recognized a need in the market for bio-specimen procurement that quickly provides quality tissue and blood samples to researchers.

“We started Conversant because we saw that the research model was broken,” said Marshall Schreeder, co-founder and chief executive officer. “It takes too long for the new treatment and diagnostics to get to the patient. There were too many failures late in the process, and it was too expensive.”

Launched in 2006, the company supplies samples to researchers working on oncology, hematology, and immunology research and drug discovery.

Outstanding Product or Service


Since coming to America from India, Dr. Gwen Fewell has developed many relationships through vast circles in the research and business community. Those relationships helped the co-founder and chief commercial officer at TransOMIC propel the startup company in spite of a challenging economic environment.

With a diverse background of research, product management, marketing and entrepreneurship, Dr. Fewell is a domain expert in gene based technologies and market dynamics.

The company, launched in 2012 and located in the HudsonAlpha Institute for Biotechnology, offers more than 1.4 million gene-based products that allow researchers to study gene function on a per gene basis or to perform screenings to identify genes important in diseases such as cancer and Alzheimer’s.

Outstanding Woman or Minority in Innovation

iK9, LLC and Auburn University formed a partnership in 2013 that is helping to further research with explosives detection dogs and make their work even more effective.

The team currently is working on several groundbreaking innovations and research initiatives that enhance breeding, development and training methodologies for explosives detection dogs.

The collaborative research has produced the VaporWake Detection that provides an enhanced method of training dogs to detect and follow the “vapor-wake” of body-worn or hand-carried explosives.

“We are very pleased to be able to work with Tim Dunnigan and iK9, and we look forward to working with them more in the future,” said Dr. John D. Weete, executive director of the Auburn Research and Technology Foundation.

University/College-Corporate Partnership


Dr. Michael Chambers launched his first company in college and his second in law school. He later co-founded a pharmaceutical company, guided a product through the FDA, and negotiated its sale to a public company.

He now leads the Mobile-based Swift Biotechnology, which he founded in 2010, and develops screens and diagnostics for endometrial and ovarian cancer in collaboration with inventors and researchers at the University of South Alabama’s Mitchell Cancer Institute.

In 2012, the NIH awarded the technology a $1.1 million grant for research on early stage screening for ovarian cancer. In 2013, the research received the international “Eugene Bricker Award for Gynecologic Cancer Research.”

Startup Executive of the Year

Huntsville entrepreneur Lonnie S. McMillian co-founded two Alabama giants, ADTRAN Inc., a company based in Huntsville’s Cummings Research Park and HudsonAlpha Institute for Biotechnology, a world-class center that translates research from the Human Genome Project into specific therapies for diseases, serving as a link between life sciences and innovation.

McMillian demonstrates a career-long commitment to innovate, coupled with a measurable record of success that has contributed to Alabama’s progress and to its potential for future growth.

While building companies and inspiring innovation, McMillian also mentored countless aspiring entrepreneurs and launched the nonprofit Alpha Foundation. He also received at least nine patents and earned the greatest respect for his integrity, generosity and humility exhibited throughout his life and career.

Lifetime Achievement Award

“Alabamians are inherently creative and hard-working, but turning

an idea into reality requires the right plan and adequate support.

Alabama Launchpad offers the essential resources that transform entrepreneurial dreams into viable businesses and high-quality jobs.”

Jim Byard, Jr. Alabama Department of Economic and Community Affairsdirector


James H. SanfordEDPA Foundation Board Chairman

HOME Place Farms, Inc. Board Chairman

Dr. Carl Pinkert University of Alabama

Vice President for Research and Economic Development

Bob Powers President, The Eufaula Agency

Michael ChambersPresident & CEO, Swift Biotechnology

Jim Hudson Co-Chairman, HudsonAlpha Institute for Biotechnology

Art TiptonPresident, Southern Research Institute

Bill WaiteCTO & Co-Founder, AEgis Technologies

Dr. John MasonAuburn University


Dr. Bernadette ChappleAlabama State University

Associate Executive Vice President

Lynne U. ChronisterUniversity of South Alabama Vice President for Research

Dr. Shaik Jeelani Tuskegee University

Vice President Research and Sponsored Programs

Dr. Daniel WimsAlabama A&M University Provost

Jim Byard Jr.

Director, Alabama Department for Economic and Community Affairs

Ed CastileDirector, AIDT

Andre TaylorAlabama A & M Board of Trustee

Dr. Richard MarchaseUniversity of Alabama at Birmingham

Vice President for Research

Dr. Rayford VaughnUniversity of Alabama in Huntsville


Bill TaylorEconomic Development Partnership

of Alabama President

Steve SewellExecutive Vice President

Angela WierVice President

Responsibilities: Board Relations, Foundation Management

Greg SheekDirector, Launchpad ProgramsResponsibilities: Innovation and

Entrepreneurship Conference, Marketing

Addie MancusoResearch and Grants Analyst

Responsibilities: SBIR/STTR Programs, Grants Management, Innovation Awards

Mary Hope GarmonResearch and Grants Analyst

Responsibilities: Startup Competition, Technology Assessment Program

Val WaltonDirector, Communications

Responsibilities: Media Relations, Social Media Management

Our Board Our Team

“I was honored to participate in Alabama Launchpad’s first Innovation

Awards. This was a fabulous opportunity for entrepreneurs, risk-takers

and local artists to showcase new ideas, and I was amazed at the

vision and talent they possess. It’s important to encourage entrepreneurship, which drives local economic growth and creates new jobs — a win-win for everyone.

I can’t wait to see what the next big thing will be.”

Yolanda Sullivan YWCA Central Alabama ceo

A L A B A M A L A U N C H P A D 2 0 1 4 A N N U A L R E P O R T

Photos of Birmingham startups were taken by Gary Tramontina Photography Inc.

“Alabama Launchpad’s Innovation Day at Tuskegee University provided

valuable information to faculty, staff, and students about the importance

of intellectual property and commercialization. This program helped accelerate the University’s commitment to research and development.”

Platinum Level ($50,000 and up)

Alabama Research Alliance

EDPA Foundation

Wells Fargo Foundation

U.S. Small Business Administration

Gold Level ($25,000 and up)

The University of Alabama/ UA Office of Technology Transfer

Auburn University

University of South Alabama

University of Alabama at Birmingham

The Community Foundation of Greater Birmingham

The Daniel Foundation of Alabama

Silver Level ($10,000 and up)

ADTRAN, Inc.

Alabama A&M University

University of Alabama in Huntsville

The Caring Foundation of Blue Cross and Blue Shield of Alabama

Robert M. Meyer Foundation

The J.L. Bedsole Foundation

Bronze Level ($5,000 and up)

Alabama Gas Corporation

Alabama Media Group

PowerSouth Energy

HudsonAlpha Institute for Biotechnology

TreMonti Consulting LLC

Friends of Alabama Launchpad

(Up to $5,000)

City of Auburn

Innovation Depot, venue for 2014 Alabama Launchpad Birmingham photos

Mauldin & Jenkins, LLC

Tuscaloosa County Industrial Development Authority

Ripple Management

Lindy Computer Technology Inc.

Alabama Small Business Development Center

Burr & Forman

Birmingham Business Alliance

Partners

“Alabama Launchpad works diligently to build a thriving entrepreneurial ecosystem to drive high-growth

companies in this state. I was honored to be a panelist at the

4th Alabama Launchpad Innovation and Entrepreneurship Conference that

allowed speakers and attendees an opportunity to engage

in meaningful conversations with some of the state’s top innovators,

investors, entrepreneurs and research leaders.”

Mark Imig Wells Fargo regional vice president, commercial banking

Dr. Shaik Jeelani Tuskegee University vice president for research and sponsored programs

500 Beacon Parkway West | Birmingham, AL 35209

www.alabamalaunchpad.comwww.facebook.com/AlabamaLaunchpad

@alalaunchpadJoin “Alabama Launchpad” on LinkedIn

To build an innovation ecosystem with a unified voice. Alabama Launchpad is a program of the Economic Development Partnership of Alabama Foundation (501(c)3)

2014 Alabama Launchpad Annual Report

Documents

Transcript of 2014 Alabama Launchpad Annual Report