January 2010 Newsletter

F U N D F O R O U R
E C O N O M I C F U T U R E
January 2010 Members Newsletter

Fund Launches Round Two
of EfficientGovNow
On January 5, the Fund for Our Economic
Future officially launched the second round of S M T W T F S
EfficientGovNow, the program that encourages
EfficientGovNow
and accelerates government cooperation and Round Two Timeline
efficiency by providing funds to local government
collaboration projects as selected by Northeast January 5
Request for proposals sent
Ohioans. This round, the Fund is offering as much
as $330,000 to be shared among as many as four February 26
Project abstracts due
projects – an increase in both the total dollars
Northeast Ohio by offered and number of projects supported by the April 19
the Numbers inaugural round of EfficientGovNow.
Completed proposals due

Currently, the Fund is conducting outreach April 30
Finalists to be announced
to local government officials throughout the

20,000
16-county region, seeking ideas and plans for the May 1-31
Public voting to take place
Playaway, the audio book device implementation of projects that reduce government
expenditures and strengthen Northeast Ohio’s June
from Solon startup Findaway,
Award recipients to be
currently circulates in more than economic competitiveness. To be considered, announced
20,000 libraries proposals must involve two or more governmental
entities, demonstrate the potential to be replicated

23
and demonstrate how the cost “savings” will be used to strengthen economic
competitiveness, among other criteria.
GAR Foundation of Akron As was the case in the first round, the residents of the region will ultimately
awarded $906,000 in grants to determine the three best collaborations from a pool of finalists, and grants will be
support 23 nonprofit awarded to the top three vote getters. The Fund has reserved the option to award a
organizations in Northeast Ohio fourth grant to a collaboration involving smaller communities.
Brad Whitehead, president of the Fund, anticipates a strong response to round
two of EfficientGovNow. “Every day, we’re seeing more and more local governments
propose collaboration projects, and the citizens of Northeast Ohio support their efforts
to advance our region’s economic competitiveness. We look for this to translate into
great proposals being submitted and tremendous citizen engagement when it’s time
to vote in May,” he said.
Kent State University, which serves as the fiscal agent for the program, and the
John S. and James L. Knight Foundation are partners and sponsors of EfficientGovNow
and its related activities.

More information, including the
top ten ways to spur participation

ffef
in the second round, is available
at www.efficientgovnow.org.

January 2010 Members Newsletter

Fund Receives $3 Million Knight Foundation
Grant for Government Efficiency Efforts

A $3 million grant from the John S. and James L. Knight Foundation recently
added significant support to the Fund for Our Economic Future’s efforts to engage
residents to offer solutions to local government on how to be more efficient and
effective.
The grant has a double focus: enhancing the Fund’s EfficientGovNow competition
and building a new resident-led process to advance policy changes that strengthen
Northeast Ohio by the 16-county region’s economic competitiveness. The effort will be driven by civic
the Numbers journalism and social media programs that will employ both online tools and more
traditional grass-roots efforts. As the region’s residents develop consensus, the Fund

1
will provide support to implement government and policy changes.
“At Knight Foundation, our ideal is informed and engaged communities – places
William and Rebecca where people have the information they need and the shared vision to act on it,” said
Considine donated $1 million Paula Ellis, Knight Foundation’s vice president for strategic initiatives. “The Fund’s
to Akron Children’s Hospital for
efforts use new and traditional tools to help reach that goal. It aims to transform the
its new research institute
way the public and government work together to solve increasingly complex problems.”
Making local government more efficient and effective is one of the four focus

1.5
areas of the Fund.
The Akron Community Foundation “Knight Foundation’s grant provides us with the resources to use new forms of
awarded $1.5 million in communication and traditional community forums to empower our region’s residents
grants with the focus on emergency to be more engaged in shaping the future of our local governments,” said Fund
programs that provide food, Chairman David Abbott. “This process may ultimately serve
clothing, shelter and health care to as a national model for sustainable civic engagement.”
residents in need The Kent State University Foundation will act
as fiscal agent of the Knight Foundation grant.
Kent State University’s Center for Public

320,000
The Lorain County Community
Administration & Public Policy will play a key role
College and the University of Akron
in guiding and evaluating the efforts to make local
will receive as much as $320,000 The John S. and James
from the Lumina Foundation
governments more efficient and effective.
L. Knight Foundation
for Education to strengthen a “Overall, the goal is to create a course of
advances journalism in the
Shared Services Program action that will educate, engage and empower digital age and invests in
our region’s residents to drive changes that will the vitality of communities
result in more effective and efficient government,” where the Knight brothers
Abbott said. “Our region will be stronger if we’re owned newspapers.
able to engage our citizens in proactively Knight Foundation focuses
addressing some of the more vexing issues we on projects that promote
are facing. Ultimately, we hope this process will community engagement
and lead to transformational
extend beyond issues related to government
change.
and be flexible enough for residents to use to
address other key priorities.”

Pg. 2

1 4 2 2 E u c l i d A v e n u e , S u i t e 1 5 1 0 , C l e v e l a n d , O h i o 44115 • 2 1 6 . 9 2 5 . 4 9 0 0 • w w w . f u t u r e f u n d n e o . o r g

State Legislature Considering Extending
Third Frontier

Since 2002, the state’s Third Frontier program, which The Plain Dealer calls
“Ohio’s most effective economic development initiative,” has supported the work
of scientists and entrepreneurs, the formation of new companies and the creation
of an estimated 41,000 high-end jobs statewide. Northeast Ohio institutions and
companies have received the majority of Third Frontier funding, nearly $424 million.
Throughout its tenure, the Third Frontier program has awarded grants to:
Northeast Ohio by Fund grantees BioEnterprise and JumpStart; growing tech companies, including
the Numbers many portfolio companies of Fund grantees; and university-based research and
commercialization efforts, including Case Western Reserve University, Lorain County

6.4
Community College’s Innovation Fund and the Rolls Royce Fuel Cell Systems at
Stark State College.
BioEnterprise grantee Last September, a report looking at Third Frontier’s impact was issued by SRI
AxioMed raised $6.4 million
International, a California-based consultant hired by the Ohio Department of
to continue developing its
Development. The report found $681 million in Third Frontier funds invested so far
spinal implants
have generated $6.6 billion in economic activity and $2.4 billion in wages and
benefits. The report concluded that the program is working and funding should

65
continue, if not increase, with more dollars targeted to support entrepreneurs.
Additionally, the Ohio Business Roundtable issued a report this month that found
Reinforcement Solutions Third Frontier has attracted $3.2 billion in private investment since it began.
of Allentown, Pennsylvania will “The Third Frontier has emerged as the centerpiece of Ohio’s economic-
start a manufacturing plant in development platform and the envy of other elected leaders across America,” said
Warren, creating 65 jobs
the Ohio Business Roundtable’s leaders in the report’s preface.
Funding for Third Frontier, however, has reached a crossroads. Presently the
program is set to expire in 2012. The Ohio House of Representatives introduced
legislation for a $1 billion renewal of the program to be voted on by Ohioans in
May 2010. While saying they favor extending the program, Senate Republicans are
less certain about the timing of the vote.
Editorial pages from across Northeast Ohio have come out in support of a
May 2010 renewal, stressing that the continuation of Third Frontier is an essential
key in creating a vibrant economic future for our region.

Learn more about the Third Frontier
and the more than 149 grants the
program has awarded Northeast Ohio
by visiting the program’s Web site at
www.thirdfrontier.com.

ffef January 2010 Members Newsletter
Pg. 3

NorTech Identifies First Two Projects
for Energy Initiative

As a part of its new advanced energy initiative, Fund grantee NorTech has
announced its involvement in two projects that that will generate economic impact
in the region’s advanced energy industry.
NorTech’s first project will be to facilitate the creation of the Lake Erie Energy
Development Corp. (LEEDCo), a regional nonprofit organization that will be responsible
for accelerating offshore wind energy projects in Lake Erie. LEEDCo activities will
Northeast Ohio by include securing and holding submerged land leases and acquiring necessary permits
the Numbers for “project-ready” sites, as well as promoting those sites to attract developers of large
scale wind farms on Lake Erie. LEEDCo will engage with all communities along

42
the Lake Erie shoreline, from Ashtabula to Toledo, in efforts to develop a regional
offshore wind industry in Northeast Ohio.
JumpStart invested in
“The creation of LEEDCo will establish a partnership with the goal of enlisting
its 42nd company, Electron the participation of all the Ohio Lakefront Counties to maximize the economic
Database Co. in Richfield development opportunities from advanced energy for the region,” said Bill Mason,
Cuyahoga County prosecutor and Great Lakes Energy Development Task Force
chairman.

40
NorTech’s second project will be to facilitate the creation of a Technology
and Business Center for Energy Sustainability, a cleantech incubator in Warren,
AIM Pharmakon will employ Ohio. Congressman Tim Ryan (District 17) recently secured a $2 million
as many as 40 people in its new appropriation to rehabilitate a facility in Warren to house the incubator. NorTech
University Circle research and will work with the incubator’s board to secure additional funding commitments
development facility to support incubator construction.
Collaborators for the Warren incubator project include the Fund, JumpStart,

25
Kent State University, RPM International, Trumbull 100, Youngstown State
University and the Ohio Department of Development.
“Developing clean and renewable energy technologies that help create green
Forbes magazine names
jobs is key to Northeast Ohio’s future economic growth. I am pleased NorTech
the Mahoning Valley area the 25th
‘best bang for your buck’ location
has taken a leadership role to help drive the Warren incubator project to fruition,”
in the United States Congressman Ryan said.
Overall, NorTech’s advanced energy initiative serves as a catalyst for
accelerating commercial activity and creating jobs in Northeast Ohio’s advanced
energy industry by convening, connecting and educating public and private sector
partners, building public sector support, and leading multi-stakeholder projects
that attract capital and create jobs.
“We believe the high growth projects selected will lay the groundwork to spur
innovation and entrepreneurship, attract private sector companies and investments,
create jobs and further develop the supply chain to support commercialization of
advanced energy technologies in Northeast Ohio,” said Rebecca Bagley, president
and CEO of NorTech.

Pg. 4


State Panel Praises Fund’s
Government Leadership

A state-appointed commission exploring local government reform invited
the Fund for Our Economic Future to testify during its public hearing held on Dec. 4
in Cleveland.
Bob Jaquay, vice president of the Fund and
co-chair of the Fund’s Government Action Team,
shared with the 15-member panel the Fund’s research
Northeast Ohio by on the impact that local governments have on the
the Numbers region’s economic competitiveness. Jaquay told the
commission that the success of EfficientGovNow proved

3.2
that Northeast Ohio governments are eager to collaborate
with each other, but are also in need of political cover
A study released by the to make collaboration more acceptable.
Ohio Business Roundtable found “If there is a way to build in some credit, some
the state’s Third Frontier program sort of political cover for those doing the right thing, it
has attracted $3.2 billion in gives an impetus to move things along,” Jaquay said.
private investments
The Commission applauded the Fund’s work

19.7
with government collaboration in the region, and
one commissioner said he hopes the rest of the state
Case Western Reserve
University has received a $19.7
takes note. Bob Jaquay
million federal contract to become “I hope this is the direction this commission will Vice President,
an international clinical trials go, building on what you have done in Northeast Ohio,” Fund for Our Economic Future
site for the Tuberculosis Trials Commissioner Mike Cochron said.
Consortium The Commission is charged with researching and writing a report that

2.25
recommends reform and collaboration measures that improve local government
operations. Its report is to be issued to the state Legislature in June 2010.
Aeromics received a
The commission also heard testimony from Hudson Mayor William Currin
$2.25 million grant from the
regarding the Regional Prosperity Initiative, which is being supported by the Fund.
National Institutes of Health
to further its development
The initiative is developing a framework to expand regional planning and to share
of a drug to reduce brain swelling a portion of new tax revenue generated from that planning.
in stroke victims “If we want to be more regional, the way we are getting our revenue has to
change,” said Commissioner Dan Foley.

ffef January 2010 Members Newsletter
Pg. 5

Team NEO Helps Attract
Pharmaceutical Company

Fund grantee Team NEO, the region’s business attraction organization, has
brought their ninth company to Northeast Ohio this year. AIM Pharmakon, a maker
and marketer of drugs and dietary supplements based in Centereach, New York will
invest $2 million in a manufacturing and research-and-development facility employing
about 40 people in the University Circle neighborhood of Cleveland.
The region’s growing biomedical base and expertise in heart care attracted
Northeast Ohio by the company to the region, the company’s president, Vijay Puntambekar, said in a
the Numbers news release.
AIM Pharmakon’s business includes consulting with pharmaceutical and

1.5
dietary-supplement companies looking to break into markets here and overseas.
In Cleveland, it wants to manufacture a dietary supplement that it licensed
MAR Systems raised from a Japanese company, and do clinical testing of the product with one of the
$1.5 million to develop its water area’s hospital systems.
treatment technology Through the end of November 2009, Team NEO has helped attract nine companies
with 859 jobs, $22 million in payroll and $38 million in capital investments.

JumpStart’s Investment Portfolio Expands
JumpStart added its 42nd company to its investment portfolio by committing
$250,000 to Electron Database Co. of Richfield.
Electron Database is creating a database software application that aims to
dramatically improve the performance of enterprise applications, data warehouses
and cloud computing infrastructures. The patented technology is expected to deliver
faster performance on today’s hardware and dramatically faster performance with
hardware innovations entering the market over the next few years.
“Because of the support we have received from JumpStart and our international
partners, we are already collaborating with IT’s most important players,” said
Prakash Raju, co-founder and chief technology officer of Electron Database.
JumpStart Venture Partner Ted Frank said hardware manufacturers recognize
that without improved database software there will be limited reasons for companies
to adopt the new innovations.
“Electron Database’s software will produce a very compelling reason to adopt
these technologies and help manufacturers capitalize on their multi-billion dollar
investments,” Frank said.
JumpStart’s investment will be used to further develop the software and
establish strategic partnerships.

Pg. 6


Medical Device Company Calls Region
the “Place to Be”
The summit will include panel discussions featuring successful minority
Syncro Medical Innovations from Youngstown is one of the promising companies in
The Fund regularly features entrepreneurs and investors who specialize in creating wealth for minorities through
Northeast Ohio’s growing portfolio of companies in the medical device sector.
entrepreneurship. Dr. William Pickard, currently CEO and chairman of VITEC, will
Northeast Ohio companies being
keynote the summit’s lunch program. VITEC is a leading automotive parts supplier and
helped by our grantees. These What makes Syncro Medical Innovations special?
Dr. Pickard is a successful serial entrepreneur, having led five entrepreneurial ventures
companies, including the one Syncro Medical Innovations is dedicated to utilizing technology and engineering
prior to VITEC, including the investor group that brought the MGM Grand Casino to
featured here, are part of the Detroit. In to advance breakthroughs in the enteralmost promising minority-owned
expertise the afternoon, some of Northeast Ohio’s nutrition market – an area
region’s portfolio of growing companies will be neglected. By working to develop showcase.
of medicine often highlighted in an entrepreneurial new innovative technologies in
businesses that are building the field, the company advances its mission of “enhancing the healing hands of
“The partnership of ICIC and The Marathon Club in this summit recognizes the
Northeast Ohio’s economic future. the medicine world.”
national leadership of the Northeast Ohio region in the development of high growth,
equity-backed minority and female-led businesses, as well as those in the inner city,”
How has BioEnterprise helped Syncro Medical Innovations grow?
said Darrin Redus, chief economic inclusion officer of JumpStart. “This summit, which
brings together some of the most influential national and regional leaders inInnovations
The BioEnterprise team played an essential role in helping Syncro Medical this space,
represents much more than an extraordinary opportunity for minority key figures at
relocate to Northeast Ohio by helping company leaders connect with entrepreneurs.
the local, state and federal level. These connections helped the company secure prime
It’s anspace, obtain for$350,000 Third Frontier grant for research and commercialization,
office opportunity a all entrepreneurial stakeholders, regardless of race or gender,
to better understand the unique challenges and criticalthese resources have allowed
and obtain $2.1 million in federal funding. All of next steps that must be addressed
if we are to see real progressto expand its executive team inscale, diverse, job creating
Syncro Medical Innovations in growing the types of larger Northeast Ohio.
businesses that are a vital component to our regional and national economy.”
Why is Northeast Ohio at the Bank of Americafor medicalCenter at the
The event will be held
an attractive place Conference
InterContinental Hotel in Cleveland from 7 a.m. to 5 p.m. The cost is $75. Visit
device companies?
www.jumpstartinc.org or call JumpStart at 216.363.3400 for more information and
Syncro Medical Innovations’ leaders credit Northeast Ohio with having all of the
to register.
resources and support necessary to launch a successful medical device company,
including world class institutions to help with the clinical trial work necessary to prove
JumpStart Companies Raise Growth Capital
the utility of a medical device. And, company leaders credit the “amazing” level of
cooperation and support from all levels of government with allowing the company to
growDespite acalling Northeast Ohioin the place to of venture capital raised in 2009,
quickly, nationwide decrease “the amount be for any aspiring company.”
two growing companies in Fund grantee JumpStart’s portfolio have been successful in
Syncro Medical Innovations has
closing rounds of funding in the past month. developed the FDA-approved Syncro
Blue Tube™, a novel magnetically
guided enteral feeding tube. Successful
duodenal placement of the tube is
performed at the bedside without
fluoroscopy, endoscopy or medications.

MAR Systems, a clean-tech company that provides proprietary processes for
the removal of metal contaminants from water and industrial fluid waste streams,
just closed a $1.5 million Series B round of funding. Funding was led by Early
Stage
Partners, a Northeast Ohio venture capital firm, with participation from several of
MAR’s existing investors. The funding will allow MAR to continue product development
and commercialization of its Sorbster™ media that removes mercury, arsenic and
other heavy metals from water.
“We’re on the verge of changing the water treatment industry with our media,” Pg. 7
said Tony Lammers, CEO, MAR Systems. “Not only is MAR excited to continue
1 4 2 2 E u c l i d A v e n u e , S u i t e 1commercialization, on h i olatest media, 6 . 9 2to. have a•partner fin t NortheastnOhioo that
5 1 0 , C l e v e l a n d O its 44115 • 2 1 but 5 4 9 0 0 w w w. u u r e f u n d e o . r g
understands what we are accomplishing is extremely rewarding.”

January 2010 Newsletter

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January 2010 Newsletter