UND Center for Innovation July 2014 Newsletter

Gjovig’s Jargon

July 2014

Incubator Innovation Award page 4 - 5

2014 GIANTS Challenge page 7

Register for SBIR workshop page 3

continued on page 2

“The roots of education are bitter, but the fruit is sweet.” - Aristotle, Greek Philospher

UND School of Entrepreneurship Launched

On May 29, the UND School of Entrepreneurship was established by a unanimous vote of the North

Dakota State Board of Higher Education, el-evating the successful entrepreneur program from department status.

The move makes the new School of En-trepreneurship among the first in the nation, joining one other public university (Oklahoma State) and three private universities (Bradley, Drexel, and St. Thomas). The school extends innovation and entrepreneurship across cam-pus, as well as interdisciplinary entrepreneur outreach and integrated learning from various campus professions, departments and colleges. The school will serve as the “entrepreneurial epicenter” of the UND campus. With the ap-proval, the new school will be begin this fall.

UND recently reported about 900 students were enrolled in at least one Entrepreneur

Department class in 2013-14. Of those stu-dents, more than 400 were enrolled in more than one class. There are about 70 majors in entrepreneurship and significant growth is anticipated.

“We are phenomenally excited about this opportunity,” said Dennis Elbert, dean of the College of Business and Public Administra-tion. “Like anything else, any business venture, there’s an element of risk, but we think we’ve done our due diligence.”

UND Center for Innovation Entrepreneur Coach and Director Bruce Gjovig said, “ We have an opportunity to pioneer the next level of entrepreneur education, deeply focused on the professional practice and experiential learning about innovation, entrepreneurship and entrepreneur capital integrated with emerging and successful entrepreneurs across North Dakota and Minnesota. The Center

The Entrepreneur, by Dean Kermit Allison

2 July 2014

This sculpture, located on the St. Thomas Business School Min-neapolis campus, displays a self-made man in his struggle to chisel himself from common stone. Blindfolded, The Entrepreneur must trust his instincts. His hand is battered from misplaced strokes of the hammer, constant reminders of his own mistakes. Not knowing if the next strike of the chisel will cut himself off at the knee or allow him to move further toward his goal, he continues unimpeded by his mis-takes.

James Ray Entrepreneur Interns

ENTR Schoolcontinued from page 1

Since 2008, entrepreneur benefactor James Ray has provided support to the Center for Innovation Foundation to

hire students as entrepreneur interns to provide assistance to startups. For 30 years, the Center has built its staff with capable student interns, many of whom become professional staff and then go into the entrepreneur marketplace. That investment in young people of promise and potential has short-term and long-term favorable impact and return of investment. This spring the Center hired two superb in-terns – Kevin Lunke and Emily O’Brien – who work with emerging entrepreneurs and angel investors.

Kevin Lunke recently obtained his B.B.A. from the College of Business and Public Ad-ministration with a major in Entrepreneurship from the University of North Dakota. During Kevin’s collegiate career, he had the privilege to serve as Managing Director of Business De-velopment, Lead Portfolio Manager, Secretary, and Managing Associate with the prestigious Dakota Venture Group. The Dakota Venture Group (DVG) is a University of North Da-kota student run venture capital investment fund. DVG is the first completely student run venture capital fund in the United States. DVG provides students the opportunity to conduct due diligence, make final investment decisions, and negotiate deal term structure.

Kevin served the Center for Innovation as an intern aiding startups with fund-ing, business plan

writing, and strategic planning. Kevin also has an extensive background in time bound partnerships, collaborative marketing, and contracts.

Emily O’Brien is currently pursuing her degree in Entrepreneurship and Business Man-agement at the University of North Dakota. In the past few years, Emily has had the privilege to be a part of many different organizations on campus.  She held leadership positions in her sorority Gamma Phi Beta as Vice President, Greek Council Vice President, and currently holds positions in the School of Business and Public Administration Student Advisory Board as Vice President/Secretary, and serves as the Managing Director of Marketing in the Da-kota Venture Group. Currently, she works as an entrepreneur intern/consultant with the Center for Innovation helping entrepreneurs with their business ideas.

Emily has developed and reviewed multiple business plans for the Center. She is part of the team developing a business plan for a new boutique hotel located in downtown Grand Forks, along with a proposal for a local sani-tation company to secure a five year contract for residential refuse and recycling collection, and has a request for proposal for an interna-tional food based concept. Emily loves the atmosphere the Center for Innovation and the entrepreneurial community it provides. Con-tributing to that culture through this intern-

ship is an opportunity she truly values. •

for Innovation will be the school’s outreach, practitioner arm, providing the experiential learning elements to support the vision. We will be calling on successful entrepreneurs as well as startups to help us develop the extensive professional practice we will need for so many entrepreneur students. We will be transforming student’s lives and attitudes while innovating and growing ventures. That is very exciting for North Dakota.”

“Moving entrepreneurship from a depart-ment to a School of Entrepreneurship elevates the status of the program and university,” said Dennis Elbert, longtime College of Business and Public Administration dean. “We are extremely excited to further develop cross-disciplinary approaches to entrepreneurship education. This will enhance opportunities for our students and leverage the success of the Center for Innovation. This next step allows us to be on the true forefront of entrepreneurial education.”

Elbert will join the school this fall filling the endowed Eugene Dahl Chair of Innova-tion and Leadership funded by Howard and Brian Dahl of Fargo. He is retiring as dean of the college on July 1 after 17 years. •

July 2014 3

Memorial of UND Alum/

Entrepreneur

Register Now for August 13 SBIR Workshop

On August 13, 2014, tech-based businesses will gather at the UND Center for Innovation to learn how

to access a pool of $2.5 billion in federal gov-ernment funding that is awarded each year to small businesses. Nationally known consultant Jim Greenwood, Greenwood Consulting Group Inc., will present an overview of the basics of the SBIR (Small Business Innovation Research) program and a step-by-step process for preparing a competitive grant proposal.

SBIR and STTR grants fund research and development, and commercialization of in-novative products and technologies. It is a very competitive process with companies from across the United States submitting proposals.

There are only 35 seats available for the event, which will run from 8:00am until 4:30pm. To register, contact Tyler Okerlund. •

For more information contact: Tyler Okerlund SBIR/STTR Program Director 701.777.6623 [email protected]

John W. Knapp was honored on May 16, 2014,

with a ceremony at the UND Center for Innovation. The event was attended by family, friends, fellow Theta Chi Fraternity brothers, and colleagues. An autumn blaze maple tree and a plaque were planted on the UND Center for Innovation property. He will be remembered for being an entrepreneur and supporting entrepreneurs.

John Knapp graduated from UND in 1971. His college career included participat-ing in the ROTC program and membership in the Theta Chi Fraternity. Originally from Los Angeles, CA he spent his childhood sum-mers with extended family at the Montreal farm in Wahpeton, ND. After UND, he earned a law degree from Pepperdine Univer-sity in Malibu, CA, before moving to Dallas, TX to become an entrepreneur in real estate. He passed away on Sept 22, 2013 at age 64.

John was a strong supporter of the Center and entrepreneurs. John is survived by his wife, Christina and his two daughters, Cecilia and Elisabeth. His daughter Elisabeth is an angel fund field agent for the Center. •

4 July 2014

A recent renovation at the Skalicky Tech Incubator has produced 18 stunning spaces, 7 of which, within one week, were spoken for. The space was vacated by Continuing Education from UND last year. Reimagin-ing, reinventing, and renovating the space has taken some time, but was obviously well worth the effort. The renovation and reopen-ing was timed to coincide with the UAS Summit the last week of June at the Alerus Center. The Center for Innovation hosted an open house on the last day of that summit, leasing 7 of the available spaces.

The space is home to the technology fo-cused UAS industry. The complimentary cohort realizes an energetic co-working space much like a beehive, thriving with innovation and technology. The space is made all the more creative and vibrant with artwork from Grand Forks artist Adam Kemp.

The UAS industry has taken off in North Dakota. Bruce Gjovig, leading the way through planning of the Grand Skies initia-tive, has brought international attention to the opportunities associated with UAS po-tential. Existing Center for Innovation ten-ants such as Northrop-Grumman and UAI, have pressed forward, paving the way for other UAV based start ups by penning poli-cies and best practices as well as negotiating with the Federal Aviation Administration on many issues such as flight ceilings and safety.

The Skalicky Tech Incubator is now home to a cutting edge, exciting UAV network unique in the nation.

For more information, or to schedule a tour, please call 701.777.3132 or check out www.innovators.net. •

The UND Center for Innovation of Grand Forks, ND was named the recipient for the National Business

Incubation Association’s (NBIA) 2014 Incu-bator Innovation Award for its Innovatively Increasing Access to Capital program. The winner of the prestigious international award was announced May 20, 2014, at NBIA’s 28th International Conference on Business Incuba-tion in New Orleans, LA.  

The Innovatively Increasing Access to Capi-tal program improves access to capital for in-cubator clients and entrepreneurs throughout the state of North Dakota. The Center for Innovation has developed a unique and varied menu of capital options for entrepreneurs, including the nation’s first fully student-run venture fund, a statewide network of angel investment funds for growth companies, and a EB-5 program to facilitate foreign direct in-vestment in later-stage companies throughout the region.

The UND Center for Innovation has pro-

vided education to potential angel investors on the value of funding new companies, has facilitated formation of nine angel investor funds (that over six years have invested $26 million in 38 enterprises), and is in the pro-cess of aiding formation of more angel funds. Uniquely, the program established the Dakota Venture Group, the country’s first investment fund fully managed by students, and which has led to Harvest Fund LLC, the country’s first student-run for-profit investment fund.

Additionally, the UND Center for Innova-tion Foundation launched the EB-5 Regional Center, which matches North Dakota and Minnesota businesses with foreign investors through the USCIS EB-5 investment-based visa program. The North Dakota/Minnesota EB-5 Regional Center has aided North Dakota companies in securing $83 million in foreign investment.

The UND Center for Innovation has also aided more than 40 companies in securing more than $37 million in federal SBIR/STTR

UAS Industry Flying High at the Center

International Incubator Innovation Award

July 2014 5

Anders Odegaard – JD/MBAChairman of Dakota Venture Group

Brennen Bergdahl – InvestmentsManaging Director of IT and Operations

Dan Daffinrud – AccountingManaging Director of Business Development

Tyler Eiken – MBAManaging Director of Finance

Emily O’Brien – Entrepreneurship/BusinessManaging Director of Marketing

Greg Syrup – MBAUndergrad in EntrepreneurshipHeld Managing Director of Business Development and Chairman roles within the group currently serving as Chairman Emeritus.

Corey Kolquist – EntrepreneurshipHeld Managing Director of Finance and Managing Director of IT and operations roles within the group.

Kevin Lunke – EntrepreneurshipHeld Lead Portfolio Manager and Managing Director of Business Development roles within the group, now an entrepreneur consultant at the Center for Innovation.

For more information visit www.dakotaventuregroup.com

Congrats DVG

Graduatesawards for new technology development.  Bruce Gjovig, Entrepreneur Coach and Di-

rector of the UND Center for Innovation said, “This award is the culmination of years of hard work by emerging entrepreneurs, angel investors, entrepreneurial students and a very capable staff. No one source of entrepreneur capital suffices, so a menu of choices is required.” 

The National Business Incubation Association is the world’s leading organization advancing busi-ness incubation and entrepreneurship. Each year, the NBIA Incubation Awards honor the business incubation programs, graduates and client com-panies that exemplify the best of the industry. Approximately 7,000 business incubators operate worldwide, including 1,250 in the United States.

The Incubator Innovation Award recognizes incubators that have developed and implemented innovative activities that help them better serve their clients or more effectively accomplish their missions. The project, program or activity can be of short or long duration.•

International Incubator Innovation Award

2014-15 DVG

Managing Directors

6 July 2014

en•tre•pre•neur noun \ahn-truh-pruh-nur\ 1: a person who organizes and manages any enterprise, especially business, usually with considerable initiative and risk.

2: an employer of productive labor; contractor.

A third Unmanned Aircraft Systems (UAS) industry company is now lo-cated in the incubator. VirtualAgility,

a software company based in Virginia, is the developer of Virtual AirBoss, which simpli-fies the acquisition, sharing and reporting of information about the activities of unmanned aircraft.

“VirtualAgility’s CEO, Stuart Randolph, identified business opportunities in North Dakota after a UAS industry summit in Grand Forks,” said Bruce Gjovig, Entrepre-neur Coach and Director of the UND Center for Innovation.

VirtualAgility joins two other UAS indus-try businesses in the tech incubator. They are Northrop Grumman, manufacturer of the Global Hawks which are operated at the Grand Forks Air Force Base, and Unmanned Applications Institute (UAI), a startup focus-ing on training and industry research, pro-gram management and strategic planning. •

For more information visitwww.virtualagility.com

Welcome Virtual Agility

Summer UpdateAdvisory Board Meeting

Dakota Venture Group (DVG) met with its advisory board on April 15 to develop strategies for the upcoming

year. Since DVG’s funds are entirely student-managed, members of the board call upon their own experiences and areas of expertise to advise and make non-binding recommen-dations. This will become an annual event.•

DVG investments

The managing members of Harvest Fund Partner, LLC, finalized invest-ment in Corvida Medical and Avabar,

LLC. The Innovation Fund, managed by DVG, Inc., will invest in the ventures as well.

Corvida Medical produces a closed-system transfer device for medicines that can cause health issues to those in the surrounding environment when the drugs are exposed to open air.

Avabar, LLC, has developed an engaging smart phone app to provide users with a plat-form to enhance their nightlife experience through exclusive deals and promotions while incorporating social interaction capabilities. This app provides target marketing and digital analytics to the liquor/beer/wine industry.•

For more information visit www.dakotaventuregroup.com

Dakota Venture Group

The UND Center for Innovation’s newest virtual tenant

July 2014 7

2014 GIANTS Entrepreneurship Challenge

The Giants Entrepreneurship Challenge business plan com-petition was held April 4th -5th, 2014, at the UND Center for Innovation. This was the fifth year of the event with

graduate and undergraduate student teams from across the country competing for cash prizes.

Universities represented at this year’s Giants Challenge included University of Houston, Minnesota State University Moorhead, Pur-due University, University of Arizona, Colorado State University, Stanford University, North Dakota State University, and South Dakota State University.

The 2014 GIANTS Entrepreneurship Challenge was sponsored by GIANTS Sunflower Seeds, JLG Architects, UND Center for In-novation, Rhombus Guys, U.S. Bank, and Valley Dairy.•

1st Place Prize - $5,000Cara Wood Shield (University of Houston)

Entrepreneurship Challenge Results2nd Place Prize - $2,000 PowerPitch (University of Arizona)

3rd Place Prize - $1,000Oxiginne (University of Houston)

Best Elevator Pitch - $250CommSense (Purdue University)

Most Improved Team - $250TuffTum (South Dakota State University)

Most Innovative Idea - $250Caydian (Stanford University)

GIANTS Entrepreneurship Challenge

8 July 2014

Ina Mae RudeEntrepreneur CenterNorm Skalicky Tech Incubator4200 James Ray DriveGrand Forks, ND 58203

Address Service Requested

Phone: 701.777.3132www.innovators.netE-mail: [email protected]

The UND Center for Innovation helps entrepreneur innovators, students and researchers launch new technologies, products and ventures, develop business and marketing plans, access UND talent and secure venture financing. We are a division of the UND College of Business & Public Administration.

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Support Students and Entrepreneurs

UND Center for Innovation Foundation - Priority Needs •Entrepreneur Assistance/ Coaching •EB-5 Program/ Foreign Direct Investment •Angel Investor Education •International Entrepreneurship •SBIR outreachSchool of Entrepreneurship - Priority Needs •Student Entrepreneurs - Entrepreneur Internships •Sponsorship of Entrepreneur Speakers and Forums •Dakota Venture Group (Student Venture Fund) •Experiential Learning Experiences •Faculty Recruiting & Development •Unrestricted- Priority Use

Opportunities to GiveBruce GjovigEntrepreneur Coach & CEO UND Center for Innovation Foundation 701.777.3134 | [email protected]

Tommy KenvilleVP Development UND Center for Innovation Foundation 218.779.9950 | [email protected]

*Donors may qualify for up to a 40% income tax credit with an endowment. Contact Kim Woods at [email protected] or 701.777.4106 for more information.* Contributions to the UND Center for Innovation Foundation are tax deductible and included in your UND Foundation giving record.

The success of the UND Center for Innovation is made possible by previous investors in our quality programs resulting in national recognition for excellence and quality. Our programs favorably impact future and existing entrepreneurs who will innovate, grow our economy, solve problems and make this a better world. For more information on how to help “pay it forward” in our entrepreneur community please contact Bruce Gjovig or Tom Kenville.