Category Archives: University of Washington

2012 Business Plan Competition innovations inspire

Business plan competitions are never just isolated, one-off events. Instead, not only do they help advance the participant innovations along their entrepreneurial paths, but such competitions also help identify overall trends and patterns. What we learn from watching changes in participation, the width and breadth of the ideas and the increasing professionalism of submissions over the years may also serve as an indication of where our economy is (or will be) heading and how prepared our emerging innovators are to address it.

As the University of Washington Foster School of Business’ 2012 Business Plan Competition gets underway, student co-chairs Alan Blickenstaff and Annie Koski-Karell (both MBA 2013) wrote a submissions review letter noting key developments. Letter excerpts:

The first submission I picked up from the daunting stack of papers in front of me described an innovative online service that would connect entrepreneurs seeking funding to would-be investors. Out of the gate, I knew I was in for a fun and inspiring time. Indeed, I was: the entries I reviewed ran the gamut from high-tech cooking tools to DIY veggie gardens in wooden boxes. Across the board, participants demonstrated a remarkably creative, savvy ability to pinpoint business opportunities among a myriad of industries. In addition to the plans addressing some of the more familiar sectors such as medicine and fashion, I was introduced to businesses in fields that I was completely unfamiliar with, including drone aircraft manufacturers and crowd-sourced charity funds. Before I knew it, the stack had disappeared. I came away brimming with excitement for this year’s competition, and more glad than ever for the privilege to be a part of it.

This year, 101 teams of students submitted their innovations, visions and start-ups to the Business Plan Competition. While most entrants classified their idea as a technology or consumer product, the ventures continue to blur the lines between industries. Current trends include a focus on food (15% of plans feature innovations to help you source, cook and enjoy your favorites), crowd-funding platforms, language learning tools, and creating social networks for motivational and educational purposes (such as getting in shape or learning to program). Additionally, 2012 sees environmental innovation infused throughout all categories with focuses on local, efficient and sustainable ideas. Not only does this year’s field represent a wide range of ideas, but the entrepreneurs are already getting their ventures off the ground; more than 25% of entrants have incorporated their venture, raising nearly $400K in combined seed capital and generating more than $120K of earned revenue thus far.

This year’s cohort of young entrepreneurs also represents an amazing range of northwest schools. Nine regional universities are represented with their innovations: Bainbridge Graduate Institute, Eastern Washington University, Evergreen State College, Gonzaga University, Seattle University, Seattle Pacific University, University of Washington, Walla Walla Community College and Washington State University. Additionally, several teams include partnerships across universities, including team members from UCLA, UC Davis, University of Montana, and University of Tokyo.

Follow the 2012 UW Business Plan Competition on Facebook, or search #UWBPC12 on Twitter. The competition is the largest Center for Innovation and Entrepreneurship annual event.

Clean-technology winners awarded $22,500 in 2012

If our future will be driven by clean-tech innovation, universities are the laboratories for a green economy. University of Washington engineering and business teams won all five prizes at the 2012 UW Environmental Innovation Challenge, with 23 teams from 5 Pacific Northwest universities competing. Teams displayed prototypes and plans for clean-tech ventures that address market problems with forward-thinking, scalable solutions.

Recycled tires converted to highway barriers$10,000 Grand Prize = GIST
An alternative to concrete highway jersey barriers, Green Innovative Safety Technologies (GIST) is a start-up that revolutionizes a transportation sector with recycled technology. They take used tires that otherwise get dumped into landfills and convert them to highway barriers. Judges viewed a full-size prototype and 3-D animation demo of how their barriers increase safety. The team consists of three UW engineers who specialize in chemical, mechanical, environmental and civil engineering and a Foster School of Business MBA student.

“Last year alone in this country there were 300,000,000 used automotive tires thrown away with no good secondary purpose. That’s where we come in. The GIST solution uses proprietary, rubber-recycling technology,” says MBA student Ricky Holm. “We have designed a recycled alternative to concrete lane separation devices. Not only is our product environmentally friendly, it is more aesthetically pleasing, safer for vehicle occupants and it increases the safety of people living near highways.”

Wiancko Family Foundation’s Brad Parker, a judge, says, “GIST caught my attention from the beginning; anybody who can take discarded waste material and turn it into something productive is doing something fabulous.”

Sustainable housing for disaster relief$5,000 Second Prize = Barrels of Hope
Replacing post-disaster relief transitional housing with sturdy, long-lasting, sustainable shelter, Barrels of Hope, improves the lives of natural disaster victims.

“We’ve developed a safe, affordable, environmentally friendly house that can fit inside of a small rain barrel. Organizations such as USAID, American Red Cross, World Vision International and Habitat for Humanity raised nearly $4.5 billion for the relief efforts to Haiti after the earthquake struck in 2010. Unfortunately, there were no truly transitional and scalable shelter solutions at the time. Stuck with the next best option, nearly half of the 200,000 families who lost their homes in the earthquake are still living in the tents that they received nearly two years ago. Our houses are earthquake and hurricane-resistant. With disasters continuing to occur… it’s time that we change the way that we approach post-disaster response,” says Ryan Scott, MBA student.

The UW team of entrepreneurs consists of four MBA students and a civil engineering student and two consultants.

Three $2,500 Honorable Mentions = LumiSands, OmniOff, UrbanHarvest
Ambient-pleasing LED household lighting (invented by UW team LumiSands), a non-toxic alternative to Teflon cookware (invented by UW team OmniOff) and rooftop urban greenhouses (invented by UW team UrbanHarvest). Those are the product innovations designed by three University of Washington teams that each won $2,500.

The UW Environmental Innovation Challenge is sponsored by the UW Foster School of Business Center for Innovation and Entrepreneurship, UW College of Engineering, UW College of the Environment and UW Center for Commercialization.

Watch two videos below with demonstrations from winning teams GIST and UrbanHarvest.

Impel’s POD device helps drugs jump the blood-brain barrier

Impel NeuroPharmaIt sounds like science fiction: a device that delivers pharmaceutical drugs directly to the brain using something called “nose-to-brain” transport. But this is no sci-fi tale. The Pressurized Olfactory Delivery (POD) device, developed by John Hoekman, UW PhD in pharmaceutics and chief scientific officer of Impel NeuroPharma, has the potential to solve one of the biggest problems facing the neurological drug industry today: getting drug molecules beyond the blood-brain barrier and into the central nervous system.

While conducting research in neurological drug delivery at the UW, Hoekman saw how the nose-to-brain pathway could improve drug delivery save for one small issue: there were no devices capable of reaching the upper nasal cavity to utilize this pathway. He began working with Dr. Rodney Ho in the UW Department of Pharmaceutics to develop a commercial device that would be cost-effective, disposable and user-friendly. “We’ve developed the POD device to be an elegant mechanical solution in a space plagued by biological problems,” says Michael Hite (MBA 2009), CEO of Impel. “Rather than manipulate drug properties chemically to improve absorption by the brain, the POD device simply delivers them to a region in the body where they will naturally be readily absorbed into the brain.”

For many drugs, this ability to move drugs beyond the blood-brain barrier means lowering the dosage, reducing organ exposure and lessening side effects. It can also have significant impact for biologic-based drugs such as peptides and proteins—drugs that hold tremendous promise for treating diseases such as Alzheimer’s and Parkinson’s but that can’t make it to clinical trials due to the lack of a viable delivery mechanism.

Hoekman and Hite took Impel to the 2008 UW Business Plan Competition, where they won the $25,000 Grand Prize as well as a Best Idea Prize for Innovation. They then worked with the UW Center for Commercialization to license their technology, produce a prototype device and select candidates for proof-of-concept trials. “The BPC prize raised our profile and provided credibility with angel investors,” says Hite. “One of the lessons we learned was how to convey not only the technological break-through of the POD device, but also the advantages of our business model to angel investors. As a pharmaceutical technology provider, Impel adds value to products in the $60 billion-plus central nervous system therapeutics market without having to launch its own drug products.”

As one might expect for a life sciences start-up, the last 18 months have been make or break time. In early 2010, the company raised its first outside seed capital from some of the Northwest’s most well-known life science angel investors, including members of the Alliance of Angels, WINGS and Bay Area angel groups. With over $1.1 million in private and public funding raised, the company has been able to conduct proof-of-concept work and scale up the POD device in anticipation of human trials, including a successful demonstration of the device using neuro-oncology tracers in PET imaging studies. Impel’s device will soon see its first in-human trial for the targeted delivery of analgesics to the brain as part of a study being conducted later this year by UW SOM researchers, funded in part by a life science discovery fund commercialization grant. This analgesic program has broad treatment applications, including post-operative and cancer pain.

Hite says that Impel has thrived because he and Hoekman have quickly addressed the concerns of their critics and improved the design of their device.

What advice does he have for other first-time entrepreneurs? “Don’t just begrudgingly accept help, but go out and seek advice, assistance and opinions from successful entrepreneurs. CIE has built a great network of advisors who can provide that invaluable experience.”

University of Washington celebrates state’s top minority businesses

The Business and Economic Development Center at the University of Washington Foster School of Business honored seven outstanding minority-owned companies from around the state at the 13th annual UW Minority Business of the Year Awards on December 8.
 
“Tonight’s award winners represent the incredible entrepreneurial spirit that makes this country great. They represent a wide variety of industries, operating locally, nationally and internationally,” said Michael Verchot, executive director of the Business and Economic Development Center. “Some have grown consistently through the economic downturn while others suffered short-term difficulties but have rebounded quickly. What unites them is the combination of a visionary leader who sees opportunities, a laser-like focus on meeting their customer needs, and their ability to build a strong management team.”

Foster School Dean Jim Jiambalvo wrote in a Puget Sound Business Journal article, “With job creation being top priority among both politicians and voters, I’m proud to say that the University of Washington Foster School’s Business and Economic Development Center is doing its best to stimulate economic growth.”

Proceeds of the awards event fund minority-student scholarships and support minority-business development.

Sam & Jenny, Inc. | William D. Bradford Minority Business of the Year
Sam & Jenny is one of the largest waste-paper exporters in the United States. With offices in Bellevue and in Seoul, Korea they currently provide Korea with 80% of its recycled products. In 2010, their revenues exceeded $62 million.

Revel Consulting | King County Minority Business of the Year
With 2010 revenues of $25 million, Revel Consulting is a leading business management consulting firm based in Kirkland. For four consecutive years, it has been named one of the nation’s fastest growing companies by Inc. magazine and one of the Pacific Northwest Region’s Fastest Growing Private companies for the past three years by the Puget Sound Business Journal.

Del Sol Auto Sales | NW Washington Minority Business of the Year
Located in Everett and in operation since 1995, Del Sol Auto Sales specializes in buying, selling and repairing used vehicles for the general public. Their 2010 revenues were $6.5 million.

Sister Sky | NE Washington Minority Business of the Year
Sister Sky, on the Spokane Indian Reservation, manufactures and distributes natural bath and body care products inspired by Native American herbal wisdom. With 2010 revenues of $500,000 the company announced a new distribution partnership in the fall of 2011 that will enable it to distribute products to major national hotel chains beginning in 2012.

Hughes Group, LLC | SW Washington Minority Business of the Year
The Tacoma-based Hughes Group is a logistics contract management company that focuses on moving people and things from one location to the next, in any part of the world. They handle every step along the way, from planning to coordinating and managing the move. Their revenues for the 2010 fiscal year were $6.8 million, a 72% increase from 2009.

Indian Eyes, LLC | SE Washington Minority Business of the Year
100% women-owned Indian Eyes, LLC specializes in equipment logistics, employee resource and construction management services. Headquartered in Pasco, Indian Eyes also has offices in Colorado and Virginia. Its 2010 revenues increased by 78% over 2009 reaching $22 million.

Macnak Construction, LLC | Rising Star Award
Macnak Construction, a licensed general contractor since 2007, works on a variety of construction disciplines including new building and bridge construction and remediation primarily for Department of Transportation projects. Macnak has grown their revenues by 375% in the last three years.

Making a successful Korea change

Wander's "W" logo of a path around the world exemplifies the company vision.The journey of a thousand miles begins with a single step. For the founders of YongoPal, a 6,000 mile step resulted in a dramatic shift for the better.

In the spring of 2010, Darien Brown and a team of software, political science and business students grabbed the $25,000 grand prize in the UW Business Plan Competition with YongoPal, a web service that connected university students in Korea with their American counterparts for on-line conversation to practice their English. On the heels of that win, the team received seed money from super angel Dave McClure’s 500 Startups and relocated to Silicon Valley to participate in its inaugural accelerator class. Then dark clouds rolled in from the West.

Disappointing reports from Korea showed that YongoPal was proving hard to use and not gaining the expected traction with students. After an intense UX workshop, one fact emerged. The program had huge potential but needed a complete redesign. So just before the make-or-break Demo Day, CEO Brown raced back to Korea and learned that the appeal of the service had nothing to do with learning English: students were actually only interested in its social value as a way to meet foreigners. With no time to create a prototype, and with money running out, the team pitched a new concept and scraped together enough seed money to build it. A better service and a new name were born.

YongoPal became Wander, a free iPhone app that pairs a user daily with a “local guide.” To jumpstart the new relationships, the app suggests daily “photo missions” to help users share their lives. For the armchair traveler, even the mundane is exotic: the street outside the house or the local food market. People can get to know somebody halfway around the world, “visit” places they’ve wanted to experience or study a language. Users find Wander to be simple and engaging, but its potential is even more exciting.

Brown says that, though Wander is something he feels they stumbled into, he believes they have an opportunity to define a new product category.  “We are giving people in digital isolation the ability to reach outside of what they know,” he says.  “China is a great example. We’re seeing users in that part of the world use our app to meet foreigners for the first time in their lives. And the fact that we let people interact through machine translation means that they can do it free of language barriers.”

Online marketing guru Dave Schappell of TeachStreet agrees. “I believe that the true power of the Internet to connect like-minded people is largely untapped. The first generation of social applications focused on connecting people who already know each other. Wander makes new connections a reality by matching individuals around the world so they can learn about one another.”

By any measure, Wander is making new friends around the world, serving users in more than 80 countries at a rate that doubles monthly and adding new meaning to the saying “A journey is best measured in friends, rather than miles.”

Go tech, young man

Chris Ruff, two-time Business Plan Competition award winner“If at first you don’t succeed…” is a mantra for many Business Plan Competition winners who learn their lessons and emerge with laurels at a later date. Chris Ruff made that commitment to win and returned a year later—with a better idea.

Themed retail was still riding high in 1999 when Ruff and his team pitched a chain of upscale barber shops. They won the “Best Retail” prize, but it was the comment of one judge that resonated with him: “Go into technology.” So in 2000 Ruff’s Aptelix team won the competition with a novel concept at that time: e-mail delivered through a mobile phone browser.

Aptelix was just a few years ahead of its time, and in 2000 Ruff joined an early-stage tech company that was gaining traction in the emerging mobile market – UIEvolution. Today Chris Ruff is president and CEO of UIEvolution, which designs platforms and apps to “help make your company a bigger part of customers connected lifestyle.” UIEvolution has more than 100 clients, including AT&T, Bing, Disney, ESPN, Samsung and Verizon Wireless.

Most recently the company is staking its position in automobile “info-tainment.” Today’s car buyers prefer on-board amenities to gas-guzzling muscle. Toyota has enthusiasts buzzing about a UIEvolution-powered, voice-activated, system platform that delivers an easy-to-use, in-car experience that includes personalized traffic, fuel prices, stocks, weather, sports results, movie tickets, restaurant reservations and Internet searches. The system keeps drivers from getting distracted while still offering a rich interactive experience.

In a career that has taken him from being one of the company’s first employees and director of business development to VP of marketing and finance to his current role as president and CEO, Ruff said, “My business degree taught me the value of critical thinking in running a business. Having lived through one tech bubble and two recessions, I would say you will succeed if you have a good vision with the money, time and energy to make it work.”

“You also need integrity, which Chris has in abundance,“ says Satoshi Nakajimi, the original founder of UIEvolution and a current board member. “Decisions affect shareholders, employees and the family of employees. When Chris makes the commitment, you know he will see it through.”

Keeping it real

Simulated businesses with make-believe P&L statements have no place in Professor John Castle’s “Creating a Company” course at the UW Foster Business School. Here, student businesses are awarded real money and expected to turn a profit in 10 weeks. There’s no text book or PowerPoint lectures. The emphasis is on relentless question and answer, to promote “on your feet” thinking—a necessity for young entrepreneurs.

That’s how Castle likes it. Over the duration of the two-quarter sequence, student teams write a business plan, meet with investors to obtain in-house funding, run the business and then exit the firm at the end of the second quarter. All profits are returned to the fund, which has become self-sustaining over time. Though profitability of the company is a major criterion for grading, the ability of the team to deal with the unexpected is considered more important.

The next Google is not a hoped-for endpoint of this entrepreneurship course, but personal enlightenment and growth certainly is. Castle tells students, “You may or may not learn to be a good entrepreneur here, but you will find out whether you want to be one.” Students learn by starting companies that, among other ideas, sell clothing, promote music events or serve a real and immediate need, as in the case of the MS Children’s Book.

The book was the inspiration of William Khazaal, father of two, who returned to the UW Foster School for his BA at age 33. In 2009 Khazaal was diagnosed with multiple sclerosis (MS). Those with this devastating disease have good days and days when their energy is sapped. On bad days, Khazaal’s kids would be scared and confused, with no resources to help them understand what was happening with their dad. Like any good entrepreneur, Khazaal created one. His team, which included Molly Massena, Zac Raasch, Eugene Kim and Adam Greenberg, produced, printed and sold and donated more than 2,000 copies of MS Children’s Book, a 50-page picture book. The team also generated $12,000—the largest profit in class history.

While Khazaal’s story is uncommon, the take-home message of the course was. “My experience demonstrated the value of working as a team and letting my team members take more of the initiative. I learned how to plan events to get the results I wanted, rather than just jumping into things,” Khazaal reflected.

The book is only the beginning of the story. Khazaal plans to continue the effort past his graduation this fall, with more events to raise money for MS awareness and research.

Center for Innovation & Entrepreneurship celebrates first 20 Years

Zino Society CEO Cathi Hatch gives her elevator pitchHow can 17 speakers share their memories of the University of Washington Foster School of Business Center for Innovation and Entrepreneurship without running too far into the next decade? Easy: make it an elevator pitch. The one-minute brief used by all good entrepreneurs made it possible for alumni and current students, faculty and leaders from the Seattle business community to reminisce. Here’s what some of them said in their 60 seconds at the podium.

“Innovation is not just for start-ups, but the life-blood for any company. If we were really doing the same thing we did when we opened in 1982 and using the same ingredients, our company would not be leading the competition or even keeping up with them. Judging the Business Plan Competition each year leaves me energized and more creative in my own business.”
Fran Bigelow, owner of Fran’s Chocolates and Foster alumna

“Expertise doesn’t reside entirely within the tech transfer office or the College of Engineering or the business school. For entrepreneurship to flourish, these organizations need to work together to weave entrepreneurship into the fabric of the university. That’s CIE’s role. CIE is at the center of it all.”
Ed Lazowska, Bill & Melinda Gates Chair in Computer Science & Engineering, UW

“We failed horribly twice at the BPC. The third time, we knew what we were doing and took second place. We closed some financing shortly thereafter. Things are going really well. We couldn’t have done it without CIE.”
Brian Glaister, CEO of Cadence Biomedical, UW PhD candidate in mechanical engineering

Center for Innovation and Entrepreneurship founder with current director“My interactions with CIE, which include taking entrepreneurship classes through the Technology Entrepreneurship Certificate as well as coordinating events with the Science & Engineering Business Association, have transformed my career path. I’ve discovered my entrepreneurial passion.”
Jeff Chamberlain, PhD student in bioengineering and past president of UW Science & Engineering Business Association

Photos (top to bottom): 1. Cathi Hatch, CEO of ZINO Society, 2. Professor Bud Saxberg, who launched the Center for Innovation & Entrepreneurship in 1991, with Connie Bourassa-Shaw, CIE’s current director