22 1 2014 Year in Review About this Report 2 The St. Louis Tech Startup Report: 2014 Year in Review is an overview and summary of the tech startup ecosystem in the Greater St. Louis Metropolitan Area. This report reflects our best efforts to capture information about the growth, evolution and current state of technology startups in the St. Louis region for the calendar year 2014. The report is based entirely on original data gathered from more than 310 active startups in the St. Louis region. 2Introduction 3 Key Trends 4 The Money 6 Jobs & Hiring 9 Inclusion Initiative We would also like to give special thanks to these following organizations, who have given us tremendous help and support in the creation of this report: 11 The Companies ITEN has got to be the best resource 12 ITEN Top Ten for tech entrepreneurs in St. Louis. Our 14 ITEN Fast Ten business has benefited beyond what 16 Segment Rankings 17 St. Louis: Hub of Innovation 19 Letter from Our Chairman 20 St. Louis Tech Startup Ecosystem we could have anticipated. The one-onone mentorship with Chuck Vallurupalli has helped me grow as person and an entrepreneur. The hard work preparing, giving, and redoing our presentation for Mock Angels was worth the long hours. Because of the mentorship, training, and programs offered by ITEN we are not only well-established and plugged into the tech ecosystem in St. Louis we also have raised over $175K only a few months after the Mock Angel program. Great team at JIM KOETTING About ITEN ITEN with real wisdom! FOUNDER & CEO, The catalyst for tech startups in St. Louis, ITEN provides unique programs for rapid product development, connections to talent, essential networking, and access to funding. Designed by entrepreneurs for entrepreneurs, requiring neither payment nor equity, ITEN is a unique community asset building a new culture of innovation. ITEN can be found on the web at www.itenstl.org and @itenstl on Twitter. PFITR 1 Introduction Key Trends Welcome to the 2014 St. Louis Tech Startup Report! ITEN is 01 Entrepreneurs are getting smarter. No question about it. Since we started ITEN seven years ago, the understanding of the typical first-time entrepreneur about the challenges that lie ahead, while far from complete, has increased significantly. It’s because there’s so much more information available to wannabe entrepreneurs, coupled with the work that universities, ITEN, and other support organizations have done over the years. Because of this, the quality of deals is also on the rise. 02 Entrepreneurship has gone mainstream. It’s become a common area of focus across the country, and in many places around the world. Many cities and large corporations have recently established or expanded programs focused on fostering entrepreneurship and innovation. The 1 Million Cups program has expanded to over 50 cities with over 2500 entrepreneurs taking part each week at sites all around the country. And check out the long list of cities from around the world that have a Startup Digest edition: that publication is adding one or two cities a week. Regions are realizing that economic development will increasingly come from innovation and entrepreneurship, and what better place to find both of those than in their local startup community? 03 Inclusion is Mandatory. Regional development requires that all ideas and viewpoints have a legitimate, respected place at the table. Assuming this exists automatically can really hold back a region’s success. The St. Louis region has finally seen a dramatic increase in intentional efforts focused on equal access to knowledge, networking and opportunities within the entrepreneurial ecosystem. Inclusion is key to retaining and attracting the diversity essential for long-term success. pleased to present this year in review, highlighting the exciting growth and activity in our region. 2 In this report we look at the year that on expanding innovation to include all investors. We look forward to playing an was, point out some key trends and populations and technology clusters. essential role in making St. Louis a hub statistics from the region’s tech startup These efforts included the BioSTL-led of innovative startup activity for years companies, as well as highlight our Top inclusion initiative and the development to come. Ten and Fast Ten companies for 2014. of new accelerators to spur this trend This year there are lots of changes along. Prosper Capital was established on both of those lists. We have a new to help fund and support emerging #1 in our Top Ten list as Yurbuds, last companies with female leadership. year’s #1, was acquired by Harman The Yield Lab was developed as an International Industries. ITEN’s ever accelerator to focus on opportunities in popular startup community map is in the the AgTech space. These accelerators Report as well---new and improved to along with Captial Innovators, SixThirty, reflect some of the expanded offerings Arch Grants, the St. Louis Arch Angels, to entrepreneurs in 2014. the Billiken Angel Network, and Cultivation Capital continue to attract and There was certainly a lot to celebrate keep funded companies in our region. Enjoy the 2014 Tech Startup Report! 04 IT is the key to a progressive future. In this technology-driven world we live in, it is not an understatement to say that all industries require computer and IT skills, and demand for expertise in this area is only going to increase. Strong STEM educational priorities and enlightened immigration policy are the bookends for a ready and robust workforce. Our region must be focused like a laser on attracting and developing the best programmers, developers and IT management talent. Can we lead in Cybersecurity, Healthcare IT, Ag Tech, Internet of Things, and Financial Tech? Let’s go for it! 05 Undercapitalization: Get used to it! The good news is that there’s more money available to tech startups in St. Louis than ever before. And with the announcement of new funds being created, that good news is getting even better. Still, the reality is there is not enough money to support all of the good deals, and those that do get support often won’t get enough. For many entrepreneurs the choices will be to die on the vine, move to where the money is, or find new ways to do more with less. Our new ventures are often competing with inferior, but better-funded, solutions from the coasts. How are we going to solve this conundrum? FRANCIS CHMELIR DIRECTOR OF OPERATIONS, ITEN in 2014. More companies received funding than ever and the total dollars 2014 proved to be an historic and invested continues to rise, with over expansive year for ITEN as well. ITEN $155.1M invested into our tech startups graduated 13 companies from our Mock in 2014. In addition to Yurbuds, another Angel program up from our total of 8 in homegrown company-Answers.com, was 2013. We grew our staff to 5 FTEs and acquired by Apax Partners in a huge 6 Entrepreneurs in Residence (EIRs). deal. Innovation and entrepreneurship Our EIRs continue to give direction and became mainstream parts of the St. insight to our programming that has only Louis economy and beyond. Corporate gotten better since their involvement. We partners in the region such as Anheuser- moved our monthly 2nd Thursday event Busch, Boeing, and Purina highlighted to Venture Café, enabling us to greatly their innovation programs, in some expand our programming and networking cases even locating their innovation opportunities for the tech community. 06 Corporations are coming to the party. 07 Collaboration is our differentiator. teams inside incubators like T-REX or CIC in the Cortex district. We approach 2015 with hopeful optimism for more successful exits In 2014, a strong emphasis was placed for our region’s entrepreneurs and JIM BRASUNAS EXECUTIVE DIRECTOR, ITEN Regional corporations are recognizing the tech startup community as a source of business solutions, talent, and new innovations. We need to unlock this potential, and there are definite signs it could kick into high gear in 2015. B2B startups need to find their first customers. Here’s a prediction: The day is coming when local corporations will line up to review new solutions arising from our own tech startups. Most cities of any size now have entrepreneurial activity, some more than others, but you’d be hard-pressed to find a city with nothing going on. When we compare statistics with other cities, some will show St. Louis is doing well and occasionally some won’t. At ITEN we measure ourselves against ourselves: how we’re progressing from year to year and driving innovation ever deeper into our regional culture. What makes St. Louis special, and what has led more than anything else to the dramatic rise of entrepreneurship in our city is the spirit of all for one and one for all that permeates the tech ecosystem. For-profits and not-forprofits working hand in hand; individuals seeking to “give first” and trust that the future will be brighter for all. This is the Spirit of St. Louis at its best, and it will carry us far as we work together, honoring the efforts of each individual and each organization. 3 The Money Combined Monthly Revenue of ITEN Network Companies ($M) 8 7.5 7 4 Interesting Trend The St. Louis tech scene continued to Momentum continues on the gain momentum in 2014. According accelerator and seed investment front Amount of SelfFunding in ITEN Companies to CB Insights, St. Louis was the fastest as well. Two new startup accelerators, growing area for funding in 2014 and, Prosper and Yield Labs, announced that to quote Tech Cocktail’s recent report, their first cohorts will begin in 2015. “St. Louis’s tech ecosystem has not With the addition of those accelerators, just grown over the past few years – along with SixThirty, Capital Innovators it actually blew up”. This is amazing and Arch Grants, 60 companies will considering where we were just a few receive between $50,000 and $100,000 years ago. in funding from those programs in 2014: $3.5M 2013: $3.8M 2012: $4.1M Funding for tech companies more than doubled between 2013 and 2014, increasing from $66 million to over $155 million, and experienced nearly a 2015. St. Louis has led the way in the in number of accelerators, trailing only California, New York and Texas. As indicated by the 2014 numbers, St. total number of companies being funded Louis continues to provide tremendous continues to grow, too. In all, at least 77 opportunity for startup tech companies. tech startups were funded in 2014, with It is growing at a pace that few 17 receiving $1 million or more and 26 envisioned. National press and the receiving at least $500,000. increased interest by outside venture develop, it must have exits and create additional funding sources. Both happened in 2014. The two biggest 5.0 5 4 3.5 3 2 1.2 state with Missouri now ranking fourth 5x growth over the last two years. The For an ecosystem to continue to 5.9 6 1 0 2010 high-growth business in the Midwest, if 2012 2013 400 not in the nation. 350 55 exits in 2014 were the Answers.com acquisition by Apax and the Yurbuds acquisition by Harmon Industries. From HAL GENTRY a capital perspective, Cultivation Capital GENERAL PARTNER AT announced its second fund of $40 SIXTHIRTY FINTECH, million and I anticipate other funds to be announced in early 2015. St. Louis PROSPER, AND companies once again attracted outside CAPITAL INNOVATORS venture capital from premier firms 292.4 300 155.1 250 200 150 66.7 such as Bessemer Venture Partners, Interwest Partners, Mohr Davidow Venture Partners, and LightSpeed Venture Partners making investments. Angel investing groups and the Missouri Technology Corporation (MTC) continued their funding pace, maintaining the records set in 2013. 2014 Money Invested in St. Louis Tech Startup Companies (Current Year’s Increase in Red) ($M) capital groups confirms that St. Louis is one of the premiere places to start a 2011 137.3 100 30.3 50 0 28 28 2010 2011 70.6 40.3 2012 2013 2014 Number of Employees Tech Startups Expect to Hire Jobs & Hiring “2014 has been a very good year for the tech community in St. Louis. St. Louisans have realized exits at companies like backed companies have 6 It’s also why our economic development the St. Louis region! We saw so many team has increased our commitment to of our most promising startups take Accelerate STL. This platform showcases off and new ones pour into the robust startup activity in our region. 2014: 259 the region. It’s giving people around the world an 2015: 429 2013: 185 idea of what it means to start and grow a Answers, Yurbuds and ShipWorks, and venture- 1ST 6 MONTHS OF YEAR: This was the year of momentum in As I walked the floor of a recent startup CLIFFORD HOLEKAMP been very successful at SENIOR LECTURER IN raising additional rounds ENTREPRENEURSHIP of financing at increased DIRECTOR OF THE valuations.” ENTREPRENEURSHIP PLATFORM business in St. Louis. event next to a local venture capitalist, he remarked, “I don’t know a single This is just a fraction of what is ahead for company in here and I love it.” the tech sector in St. Louis. CNBC just 2013: 425 2014: 539 named St. Louis a top tech hub to watch. The growth of tech entrepreneurship We agree and look forward to much is one of the strongest economic success in the future. FULL YEAR Hiring Fields 2015: 878 2% 2% drivers in the St. Louis region. Tech OLIN BUSINESS workers command high salaries and SCHOOL as a result many other businesses WASHINGTON UNIVER- thrive when new IT professionals CHIEF EXECUTIVE OFFICER SITY IN ST. LOUIS move to St. Louis. These workers also ST. LOUIS ECONOMIC DEVELOPMENT bring an enhanced vibrancy to the PARTNERSHIP DENNY COLEMAN, CECD, FM, HLM 3% 3% 26% 5% neighborhoods where they reside. This past year we saw Boeing relocate an entire IT division to St. Louis and some 7% of our fastest growing tech startups such as LockerDome, Aisle 411 and Pixel Press hiring. We are proud of the work 7 ITEN is doing to make St. Louis a national leader in technology jobs. Smart people find a great quality of life in this region. 7% That is a winning combination. Supporting the tech community is a top priority. This past year we helped connect local tech CEOs to the leaders of Southwest Airlines. They wanted 7% a non-stop flight to San Francisco to increase fundraising and recruiting. Not 16% only did they get it, but through the St. Louis Regional Chamber, Southwest invited a group of top startups on the inaugural St. Louis to San Francisco flight 8% to celebrate the new route. 14% Inclusion Initiative Total Full Time Employees of ITEN Network Companies 1200 1073 1000 835 800 600 827 corporations of international stature. However, St. Louis has lacked the required infrastructure, entrepreneurial culture and ecosystem 601 400 200 8 0 2011 For a long time St. Louis has been home to universities and 2012 2013 2014 350 386 300 “The entrepreneur ecosystem in St. Louis is incredible. HealthyMe wouldn’t 250 As one of many activities to help The St. Louis startup ecosystem’s address this need, BioSTL developed commitment to becoming more inclusive and launched the Bioscience & was demonstrated by the fact that more Entrepreneurial Inclusion initiative in than 30 vendors and Entrepreneur 2008, and began programing efforts today without the support and mentorship of key programs like ITEN, During a seminar in August, we hosted underrepresented minorities interested 55 attendees for a more in-depth look at in starting or expanding a high growth building a bioscience startup. The seminar business in the biosciences and tech led many of our meeting participants industries. Through a strategic pathway to apply for Cortex’s new Square One and strong collaborations with partners program; a 10-week business “boot including ITEN, our programming camp” designed to support first-time provided opportunities for engagement, entrepreneurs here in our region. Opportunities in Bioscience: Business & 100 50 Networking Forum”, was a huge success, 109 attracting more than 200 attendees. We 57 hosted two additional events during the summer with the intended goals of 0 BioGenerator and Capital Innovators. 2011 2012 2013 2014 raising awareness about the In fact, HealhyMe’s overall bioscience industry our CEO. Can’t highlighting entrepreneurs ITEN mentor is now DANA FOWLER beat that for an endorsement.” FOUNDER & PRESIDENT, HEALTHYME currently building high growth businesses MOBILE exposing participants to our SOLUTIONS region’s entrepreneur resources and organizations mobile app designed to assist patients In 2015, we look to continue our inclusion efforts and bring additional programing to women and underrepresented minorities. We are Support Organizations (ESO) participated already working more closely with ITEN in these two events. to plan a wide range of activities for the ecosystem to high potential women and The inaugural event: “Creating 150 handling robot for industrial and with medicine adherence. for participants. be where it is bioplastics 3D printing and material- business community. training and access to various resources 252 200 developing an advanced biotissue and biomedical applications; and RXplain—a introduce the St. Louis entrepreneurial 400 include: Square Fruit Labs—a company to fully capitalize on its potential as a multi-dimensional, thriving in 2014. The goal of this program is to Total Part Time Employees of ITEN Network Companies companies that cross both industries We are thrilled to report that out of the 33 participants selected for this inaugural boot camp class, onethird participated in our Bioscience & year. As bioscience and IT fields become increasingly linked, we find these collaborations extremely valuable. We must work together to develop highly talented professionals and support their entrepreneurial endeavors to create high growth ventures that ultimately will increase the level of innovation and opportunities in our region. If everyone in the startup community is able to work together to achieve that goal, St. Louis will remain on track to be one of America’s top innovation hubs. Entrepreneurial Inclusion programming. The Square One program offered three tracks for those selected to participate: DR. CHERYL WATKINS-MOORE bioscience, IT, and consumer/advanced DIRECTOR, BIOSCIENCE & manufacturing. Square One provided free formal instruction, hands-on learning, expert assistance, and networking in a supportive environment for budding entrepreneurs. It was clear through the diversity of ideas and technologies represented in the Square One program that there is a strong connection between the biosciences and IT. Examples of ENTREPRENEURIAL INCLUSION BIOSTL 9 ITEN COMPANIES 22% MINORITY-OWNED 20% WOMEN-OWNED 8% IMMIGRANT-OWNED 5% VETERAN-OWNED LAUNCHCODE PARTICIPANTS 10 42% PREVIOUSLY UNEMPLOYED 30% MINORITY 23% WOMEN The Companies “Our region will grow by finding and encouraging entrepreneurs from all parts of the community. As we seek out immigrant and other minority entrepreneurs, we bring them into the network of entrepreneurial resources to encourage their success. Inclusion initiatives like SQUAREONE PARTICIPANTS of new opportunities, both 36% UNDERREPRESENTED POPULATIONS PROSPER WOMEN ENTREPRENEURS 31 MASTERMIND GROUP PARTICIPANTS 60 YOUTH & COLLEGIATE #PROSPERNEXT EVENTS PARTICIPANTS 70 ENTREPRENEUR RESOURCE EVENTS PARTICIPANTS creating the entry funnel for the region and for those individuals themselves. St. Louis Mosaic Project provides inclusion initiatives so that our region benefits from the many immigrant entrepreneurs in our community.” EXECUTIVE DIRECTOR, ST. LOUIS MOSAIC PROJECT Louis that didn’t make this list. That in ventures that are bringing new ideas no way means that they aren’t destined to market, reshaping industries, and for great success. The bar is being ultimately creating something of lasting raised every year by the rapid growth value. The St. Louis region is blessed with of our top companies, and the honor of numerous emerging companies that are being mentioned as one of St. Louis’ Top not just growing, but thriving. Once again Ten startup tech ventures means more we honor these great ventures in our Top this year than ever before. 2014. For our Fast Ten list, we look only at companies founded in 2013 or later, and “Due to the diligent work of These lists recognize and celebrate the look particularly to their growth during tech ventures that are getting the most 2014. We believe that some of the traction, most likely to become lasting companies on the Fast Ten list are likely successes, and most likely to make to emerge and make a major impact in significant contributions to the St. Louis coming years. region’s economic prosperity. ITEN and other supporters of the For our Top Ten list and the industry ecosystem, Stone on the following key metrics: total segment lists in this report, we focus funds raised (from all outside sources Carlie enjoyed BETSY COHEN There are great tech ventures in St. community are the entrepreneurs and Ten, Fast Ten, and Segment Rankings for the one that ITEN helps lead, are so important for The most vital ingredients in a startup including but not limited to friends and a large increase family, grants, debt and equity), current in start-up (including founders working full time on monthly revenue, and total employees the venture). These three factors are companies that the main criteria we use to measure we serve during a venture’s impact on the community. 2014 and expect in these three primary metrics during We give additional weight to the growth 2014. Thus we assign more importance a similar increase in 2015.” in our ratings to the traction that MARIE CARLIE, CPA companies are getting right now. SENIOR MEMBER, STONE CARLIE Note: The data above is not mutually exclusive. Note: Due to the proprietary nature of most of the data used in our rankings, we rely heavily on the companies to provide that information to ITEN on a confidential basis. Therefore, limited or absent data may affect a company’s inclusion or ranking in the list. 11 02 05 07 Splice Machine FoodEssentials Aisle411 Click With Me Now www.splicemachine.com www.foodessentials.com www.aisle411.com www.clickwithmenow.com Splice Machine provides the only Hadoop RDBMS. FoodEssentials’ LabelINSIGHT is the food Aisle411 is the leading local and indoor location Re-humanizing the online channel with the easiest It is designed to scale real-time applications using industry’s most powerful and innovative product commodity hardware without application rewrites, insight exchange, providing manufacturers providing companies with a high-performance, and retailers a live view into the grocery massively scalable database for applications that marketplace. LabelINSIGHT provides retailers don’t require compromising SQL support, secondary and suppliers with gold standard consumer-facing merchandising insights. connect online. indexes, joins, and transactions. product data, a transparent view in to the data for Fun Facts Fun Facts 2.3 million products are found in Aisle411’s product Click With Me Now raised $2.45 million in 2014. Fun Facts Splice Machine is featured in Datamation’s top 20 Big Data Companies list. 12 the entire organization, and custom integration into existing systems, taxonomies, and use cases. Fun Facts Splice Machine raised $18M in 2014. FoodEssentials founders all grew up together in Splice Machine has offices in both St. Louis and Hong Kong. San Francisco. FoodEssentials has a presence in Australia, Hong Kong, France, Chicago, and St. Louis. platform powering over 13,000 retail stores with indoor mapping, search, location and analytics solutions that help retailers and brands drive store visits, in-store shopper engagement, and search engine. 30% of Aisle411 employees are female. Aisle411 was officially founded in a Panera Bread restaurant (locally-known as St. Louis Bread Co.) due MulticoreWare Inc. www.multicorewareinc.com start-up incubator. MulticoreWare is the leading provider of programmer 01 Norse www.norse-corp.com Norse is the global leader in live attack intelligence. Norse delivers continuously updated and unique productivity tools, libraries and application Hatchbuck development services for homogenous and www.hatchbuck.com heterogeneous multicore CPU and GPU architectures. Fun Facts MulticoreWare launched a very successful HEVC encoder product. MulticoreWare is featured in 2014 Inc. 500 list, test startups list. crawlers, and agents deliver unique visibility into the operate. The Norse DarkMatter™ network processes www.lockerdome.com hundreds of terabytes daily and computes over LockerDome helps you personalize the web. 1,500 distinct risk factors, live, for millions of IP Through lockerdome.com and LockerDome- addresses and URLs every day. powered widgets, more than 75 million people per Fun Facts Norse has employees in 5 countries and 13 states. Norse’s Global Infrastructure is attacked by The Hatchbuck team grew 112% in 2014. Hatchbuck grew their base of customers and in- LockerDome Internet - especially the darknets, where bad actors into raving fans with our all-in-one sales & marketing Fun Facts 04 tools. Norse’s globally distributed distant early website visitors into handshakes, and customers MulticoreWare was selected by EE Times for the hot- warning grid of millions of dark sensors, honeypots, they are spotted by traditional threat intelligence ing efforts overnight. Turn emails into conversations, platform. It’s time to grow. detect and block attacks that other systems miss. threats and tags nascent hazards long before for small business that automates sales and market- ranked at 110th. Internet and darknet intel that helps organizations The Norse DarkMatter™ platform detects new Hatchbuck is simple sales and marketing software month use the platform to discover, collect, and engage around things they like. Fun Facts adversaries on average 6,000 times per second. LockerDome has users in more than 100 countries. Norse’s engineering team received 7 exotic sports LockerDome employees once slept in the office for car rentals as year-end bonuses, resulting in a pow- 81 days straight to finish a release. erful recruiting video. LockerDome raised $10M in 2014. creased revenue by 300% in 2014. Hatchbuck is its own customer. The Hatchbuck team uses Hatchbuck sales and marketing software to attract, capture, nurture and convert prospects into customers. REALTIME, REPLAY & RECORD - all based on patentpending Collaborative Customer Interface Platform – Click With Me Now is changing the way people Click With Me Now has developed a second product on its collaboration platform. Click With Me Now has grown to 12 employees all committed to “humanizing online communications”. Observable Networks www.observable.net 10,000 new products for a client. 06 & safest way to share the web! With products like: to free Wi-Fi access and great food, a true St. Louis Over one weekend, FoodEssentials collected over 03 09 08 TruQC www.truqcapp.com 10 Observable Networks delivers critical threat defense services based on dynamic endpoint modeling to TruQC is a quality control and process understand the behavior of all network devices documentation app built for the iPad. Originally and identify early stage and hidden indicators of designed for industrial painters, TruQC is now bringing QC and reporting tasks into the digital age compromise. for customers in an array of industries. Fun Facts Fun Facts Observable Networks was listed as one of the “10 St. Louis hockey legend Barret Jackman is an investor in TruQC. TruQC has been downloaded in 67 countries. TruQC’s app is now available in Spanish. Honorable Mentions security startups to watch” by Network World. These dynamic ventures just missed making Observable performs nearly 2 billion device inspec- the Top 10 (in alphabetical order): 13 tions per day for its current customers. Observable Networks grew over 50% in employee count in 2014. Blendics Bonfyre BusyEvent Gremln Juristat Kingdom Scene Rovertown 02 04 www.Pushup.com www.pfitr.com Pushup Social Pushup Social is a technology that allows a brand or organization to create their own online community on their existing website in a matter of minutes. With Pushup, brands and organizations see a higher return on the investments they are making in building loyal fan bases, clients or supporters, by engaging their community members directly on their own website. Site owners can engage their community, access analytics, moderate content, 14 PFITR PFITR is a cloud-based software that helps public treasurers across the country by improving transparency, reducing risk, and improving cash flow. Public treasurers are attracted to this new technology because the streamlined iPad and mobile application increases productivity and eliminates the need to print so many reports. Fun Facts Prattle Analytics was founded by Evan A. Schnidman sized churches to efficiently and effectively manage mobile, location aware, personalized, and Ph.D. and William D. MacMillan Ph.D. to develop and engage volunteer staff in real-time. iChurch is a fun. Game changing analytics overlay engagement and sell unique data products to the financial mobile app that helps churches realize a reduction tools (messaging, deals, automatic check-in, games services industry. Prattle’s core data product utilizes in costs and better forecasting/utilization of volun- and rewards) in a unique way that enables local and proprietary text analysis methods to generate teer staff through the utilization of custom reports national merchants to get new clients, and keep quantitative data based on the sentiment of central and analysis via mobile app. them as profitable repeat customers. Consumers bank communications. This data presents better get valuable, personalized real-time information than 70% correlations with fixed income, equity and iChurch enables leadership at small to medium- Fun Facts Recent Washington University PMBA graduate predict asset price movements and make informed PFITR is the only start-up company that has gone partners with an MIT Alum to design the UI/UX for community members can now share photos, posts investment decisions. Prattle Analytics central bank through two start-up accelerator programs simulta- the iChurch Volunteer Management App. and much more as they interact on the website of sentiment data is currently used by some of the neously: Capital Innovators and SixThirty. iChurch is 100% owned by an African-American, the brand or organization they are passionate about. largest hedge funds in the world. raised in the St. Louis region The only pictures in PFITR’s offices are underwater scenes, mostly ship wrecks. Fun Facts: Xooker will launch to 2.5 million opt-in mobile subscribers and 3,500 Merchants. Consumer choice rules with Xooker. Individual Fun Facts Pushup Social is undefeated in Ping Pong consumers get targeted messages at times they Both Prattle Analytics’ founders are recovering tournaments, having defeated such powerhouses as can best use them, for products, services, and academics. merchants they select. As recovering academics, Evan and Bill have With Xooker, a store or restaurant of any size can benefited greatly from hiring their former students have a branded game. to aid in their data development process. Break”, hosted by small business expert Susan Solovic. 05 Marketvolt 01 03 TopOpps Pixel Press www.Marketvolt.com MarketVolt helps B-to-B, B-to-C, and nonprofit businesses attract leads, engage prospects, convert email marketing and other interactive technologies. Businesses in the St. Louis region and across the globe choose MarketVolt’s email software creating new rewards that reinforce the user’s MeterGenius is a customer engagement and self-control. The main goal is to help users reduce analytics platform that enables electricity suppliers planning and execution of email campaigns, web site their smartphone dependency by monitoring app to provide residential customers tools and development, social media, and offline marketing. usage on their smart devices, and identify potential incentives to engage with and lower their electricity areas for improvement. HealthyApp is targeting usage. MeterGenius gives homeowners the ability user groups such as parents who want to monitor to track electricity consumption, create reminders their kids, doctors who want to help their patients, to help them change their behavior, set goals and employers who need to manage their employees, track their progress, compare themselves to similar and self-motivated individuals who want to set up neighbors, and earn points that can be redeemed goals on a phone diet. It’s a secure and effective way for smart and energy efficient appliances. Fun Facts: and enhance the sales process - while ensuring that for audiences of all ages that leverage both the everyone is following it. Sales management benefits analytical & creative sides of the brain. MarketVolt was first established in 2001 as a product and service of Foundry Software Fun Facts Development Company before spinning out as an mobile coaching and simplified updates. As a result Pixel Press users have created over 100k games and of the sales process optimization and streamlining, published 13k games to the arcade. MarketVolt can integrate seamlessly (without TopOPPS moved twice in 2015 - first to Downtown hair and rides his skateboard to work. If you see him T-REX and then next door to the Curlee Building downtown on his way in say hello! MeterGenius on MarketVolt’s marketing experts to assist with building creative and fun mobile gaming experiences Pixel Press’ newest developer, Mark has long blonde www.healthyapphealthylife.com automate marketing campaigns. They also can rely Pixel Press is a technology company focused on voiced by “Weird Al” Yankovic. Technologies. 09 habit cycle, preventing overuse of target apps while to optimize the sales process. It helps define, align, The final boss, “The Doodle Wizard” of Pixel Press’ HealthyApp HealthyLife Studio and affordable way to create, deliver, track and TopOPPS uses advanced analytics and automation new game in partnership with Cartoon Network is 07 HealthyApp is designed to break the smartphone www.projectpixelpress.com are more accurate. award winning company in the area TurnGroup prospect. because it gives them a powerful, easy-to-use www.topopps.com deals close faster, win rates increase, and forecasts Keith Turner, the founder, previously founded an One of Prattle’s data developers is a top NFL Campaign Manager sales, and maximize customer relationships, using TopOPPS’ sales team’s theme song. Xooker is the next generation ad delivery platform: www.ichurchphoneapps.com currency markets allowing portfolio managers to episode of AT&T’s new web series, “3:00 Inspiration The song “Shake It Off” by Taylor Swift is the www.prattle-analytics.com and have fun while they do. Pushup Social will be featured in the upcoming first founded Gainsight. www.xooker.com iChurch Phone Apps about items and offers at their favorite merchants, Nigeria and Denmark. founders Jim Eberlin and Ted Stann. They previously Prattle Analytics the world. Two of the three founders are foreign-born, from TopOPPS is the second venture together for xooker PFITR has employees and contractors from all over ups. Fun Facts 10 and relevance of their website. Additionally, Elasticity and LaunchCode in head-to-head match- while sales people benefit from the intelligent 08 improve SEO, and increase the overall stickiness Fun Facts from the clearer visibility and real time updates 06 independent startup in 2013. to spend less time on one’s smart devices, and more customized code) with more than 300 applications, time on one’s life. including Salesforce, Dynamics, Zoho, other popular Fun Facts CRMs and many event management, e-commerce, www.metergenius.com Fun Facts In their first pilot in Texas, MeterGenius increased customer retention by 27% and reduced accounting and social media management tools. All founders are foreign-born from China. consumption by 6%. MarketVolt has delivered nearly one billion emails HealthyApp has offices in St. Louis and Beijing All co-founders were Northwestern University on behalf of its clients. All founders are successful business owners, one graduate students. of them is ex-CTO of Alibaba Software and Yahoo MeterGenius won $135,000 in business plan China. competitions in 2014. 15 Segment Rankings Minority-Owned Financial Services “The dialogue around CIC St. Louis opened its doors to its new facility at @4240 Duncan Avenue last October. The launch was the culmination of a journey 01 MulticoreWare Inc. 01 Gremln startups in St. Louis is 02 FoodEssentials 02 PFITR 03 PushUp Social 03 Prattle Analytics changing. Our larger Women-Owned Sales/Marketing 01 Hatchbuck partner with startups 02 EDIS Solutions 02 TopOpps 03 HealthyMe Mobile 03 Less Annoying CRM to more quickly drive 01 Norse 01 LockerDome 03 Parameter Security 02 Gremln fostering conversation and collaboration, we are helping with job creation and the 03 Bonfyre Mobile App backstory that has led us to where we are today. business value. By Social Media 02 Observable Networks people have asked, “Why did CIC choose St. Louis?”, Here’s some of the guidance on how to 01 SparoLabs Solutions Security for CIC into St. Louis that began almost three years ago. So many clients are looking for bolstering of our local 01 Aisle411 economy. Investing in RON DAUGHERTY Game Design 02 TruQC startups is investing in FOUNDER, 01 Kingdom Scene 03 TopOpps the future of our city.” DAUGHERTY 02 Pixel Press 03 Xooker BUSINESS SOLUTIONS ITEN Company Status Outside Funding Status 54% 46% ue It was maybe four years ago when CIC government and very active universities. driving in from Chesterfield! All this stuff began seriously considering expansion This signaled to us that there was a really matters. outside of Massachusetts. Initially we long term plan in place. But what left started with the obvious places, where us most enthusiastic were the people Three years ago, choosing St. Louis startups and innovation are seemingly who were (and are) most directly behind as our first expansion city seemed evergreen: San Francisco, Silicon Valley, the startup growth initiatives. St. Louis counterintuitive to many of us. Now, New York City. Exploring these markets appeared to us like a bootstrapped we’re just grateful to be here and excited left us hungry for expansion but the startup, run by people bullish about the for everything to come. 2015 will no complexities and costs that would have city and determined to build something doubt be an uphill slog every single day come with opening up a space in one big and important. From Arch Grants of the year. But what joy it is to be a of those cities kept us from jumping in. and T-REX to Cortex and BioGenerator, part of this incredible city. Also, part of the fun of CIC in Cambridge there was a lot of amazing stuff going comes from the satisfaction knowing on, and the energy and enthusiasm felt that we added to the current “innovation quite familiar to what we’d experienced ecosystem” in real, meaningful ways. in Cambridge. Once we started to look at new markets The opening months of our entry into from that perspective, things started to St. Louis have been nothing short get really interesting. We began to look of amazing. They’ve exceeded our at cities that we hadn’t ever considered. expectations in just about every way. Cities on the rise, but ones with a lot The clients and people who work in left to prove. We traveled to a number our spaces are some of the most of cities including Baltimore, Winston- talented entrepreneurs in the city and Salem, Philadelphia, Miami - and St. the community energy has created Louis. buzz that’s reverberating even back to Cambridge and Boston. Our @4240 63% 37% With R e v en ue 73% g in Outside With F u nd in 27% hout Outside Wit Fu nd e nu ve Re Without Rev en ue W ith Funded Company Status Without Rev en Revenue Status g 16 St. Louis: Hub of Innovation I’ll skip the number crunching parts of space is filling with a wonderful mix of our exploratory phase, but suffice to clients ranging from Arch Grants alumni say that St. Louis set itself apart from and Washington University spinouts other cities because the local, grass root to investor groups and corporates. projects here were further developed LaunchCode is now doing its important and producing measurable results. work from within CIC. Some of our There was also real money behind client companies have come from far off these projects - and a supportive city places like Israel. We’ve even got people DOUGAN SHERWOOD CO-FOUNDER & MANAGING DIRECTOR, CIC ST. LOUIS 17 Letter from Our Chairman Founders’ college and origin 30% STL Metro Missouri - Non STL 13% 15% 12% 12% Illinois - Non STL US (Remaining) 35% 23% 4% 4% Europe 0.4% 1% Africa 1% Latin America 0% This past year has been an exciting one ITEN will sharpen our focused mission for the tech startup community in St. to accelerate individual startups. Each on several fronts. A lot of money was invested Louis, and for ITEN. We were able to venture is unique, and we will continue in local startup companies, new accelerators accomplish so much, as you can see to improve our programs and tools to demonstrated in this report. help them overcome barriers and find formed, and large corporations continued to buy 4% 1% 2% Middle East “St. Louis startups made great strides in 2014 focused on women and agtech companies were 2% 2% Asia, New Zealand & Australia 18 39% 5% 10% 15% 20% 25% Founders’ college 30% % 35% 40% Age of Founders Founders’ origin 2015: Tech Inclusion Initiative, expansion importantly, several tech companies saw significant positive narrative for the future of the of our Entrepreneur in Residence region, and is the foundation for the program, the new STLTechJobs website, innovation economy that is essential for an innovative startup/corporate investors/entrepreneurs. Exits included Answers a prosperous future. Now operating as engagement program, and the possibility Corp., yurbuds and ShipWorks. What investors in an independent organization, ITEN has of launching a new tech fund, ITEN is the flexibility to be an effective leader committed to serve the critical needs of in creating that future and overcoming the startups, the innovation ecosystem, the many challenges faced by the and the wider community. those companies do now will be a major narrative 26-35 for 2015. Following the Answers exit, a group of Answers executives raised nearly $40 million for a 36-45 new fund. It would be a tremendous positive if a 46-55 IP Issue 1% 5% 10% 15% 20% 25% 30% 35% with a great deal of passion and enthusiasm as we continue to build on Louis companies. It wouldn’t surprise me in the least ITEN has received tremendous support the considerable momentum among the if a few high-profile startup companies also made along the way as an operating entity of ecosystem that ITEN has helped Innovate St. Louis. During the past 7 to create. big exits in 2015.” BRIAN FELDT Sales 6% We look forward to the next 12 months of the St. Louis IT startup ecosystem, 56+ 0% entrepreneurial community. Founded in 2008 to be the catalyst good chunk of that money was reinvested into St. Finding a Cofounder Forming Strategic Time 3% Partnerships Management 5% 5% 23% can play an essential role in crafting a Under 25 Startup Biggest Challenge Funding With new initiatives in the pipeline for in to the startup storyline. But perhaps even more exits, thus putting money into the hands of local 45 their individual pathway to success. The rapid growth in tech entrepreneurship TECHNOLOGY REPORTER, ST. LOUIS BUSINESS JOURNAL years, we have been at the forefront of the development of the St. Louis tech Our motto: “Entrepreneurs Helping startup ecosystem. We are grateful for Entrepreneurs” sums up our core value. Innovate’s support and are very proud We’re excited to see where it’s going to that we are now ready to take on new lead us this year! challenges on our own. We are very Develop Prototype 7% encouraged by the growing community JEAN ROBERSON support. Without all of you we would CHAIRMAN OF THE BOARD, ITEN not be where we are today. Your support inspires us! Prior Entrepreneurial Experience of Founders Finding Mentors 9% Talent 15% “To see innovation and entrepreneurship drive change is remarkably exciting. The St. Louis region has the perfect mix for a growing startup hub: premier universities like Washington University and Saint Louis University, internationally recognized innovation hubs, support organizations, mentorship programs, capital efficiency, an educated workforce, competitive cost of living, and affordable real estate, among others. As we shared recently with a group of investors in New York, these strengths, combined with our region’s leading role in fields such as 33% No 67% Yes Marketing/Advertising 14% Customer Aquisition 12% plant and life science; financial services; information technology; aviation and renewable energy, make St. Louis a place where big ideas grow.” JOE REAGAN PRESIDENT & CEO, ST. LOUIS REGIONAL CHAMBER 19 St. Louis Tech Startup Ecosystem LEWIS AND CLARK FUND iSELECT FUND FTL CAPITAL MTC IDEA FUND “This is an extremely exciting THINKBIG ARCH GRANTS time to be involved in innovation “In 2014 Arch Grants and ITEN 20 “The start-up environment in St. Louis is exciting and very energized with professionals and innovative ideas. I have found ITEN to be a good resource for information, support, and talent. Particularly, ITEN’s Entrepreneurs-in-Residence are invaluable advisors with a great willingness to share their experiences. ” A.KEITH TURNER FOUNDER & PRESIDENT, iCHURCH PHONE APPS and technology in St. Louis. The region is on a meteoric rise as a deepened their collaboration hub for entrepreneurism and St. by making ITEN the venture Louis’s culture of partnership and development partner for tech collaboration is strong and unique focused Arch Grant recipients. draw. Being an integral part of the This partnership ensures Arch regional entrepreneurial community Grants funded companies take full not only strengthens our own advantage of ITEN’s outstanding research at Washington University, offerings including its Mock Angel, but creates a dynamic, high-energy, Business Model Validation, and creative spirit that is so important Development programs. This type for encouraging start-up activity. of collaboration is of tremendous St. Louis is realizing its full potential benefit to the participating of being world-class leader in entrepreneurs, and to the broader innovation. From large undertakings community as both organizations like Cortex to smaller in-the-lab leverage their respective strengths experiences, Washington University to ensure entrepreneurs can access is proud to be part of the effort. the resources they need to make their businesses successful. ” GINGER IMSTER EXECUTIVE DIRECTOR, ARCH GRANTS BILLIKEN ANGELS REGIONAL GROWTH CAPTAL ARCH ANGELS LAB 1500 INDUSTRIOUS CHANCELLOR FOR ACADEMIC AFFAIRS RITA LEVI-MONTALCINI DISTINGUISHED UNIVERSITY PROFESSOR WASHINGTON UNIVERSITY IN ST LOUIS SIXTHIRTY T-REX STL VENTURE WORKS NEBULA THE YIELD LAB HARRIS-STOWE ENTREPRENEURSHIP PROGRAM BUSINESS MODEL VALIDATION GVMS CIC@CET ITE WEBSTER ENTREPRENEURSHIP PROGRAM MOCK ANGELS ARCHREACTOR TECHARTISTA UMSL ENTREPRENEURSHIP PROGRAM BIOGENERATOR OPO HIVE44 WASHINGTON UNIVERSITY’S SKANDALAIRIS CENTER CULTIVATION CAPITAL CLAIM SLU CENTER FOR ENTREPRENEURSHIP CORPORATE ENGAGEMENT PIPELINE SIUE ENTREPRENEURSHIP PROGRAM CIC TECH SHOP TALENT FINDER SIGS ” PROVOST AND EXECUTIVE VICE CAPITAL INNOVATORS PROSPER WOMEN ENTREPRENEURS HELIX FUND ST. LOUIS MAKES HOLDEN THORP LINDBERGH TECHNOLOGY FUND STLTECHJOBS ENSTITUTE MVF REGIONAL CHAMBER VENTURE FOR AMERICA LAUNCH CODE TALENT FUNDER SLEDP VENTURE CAFÉ ST.LOUIS MOSAIC PROJECT IMMIGRANT ENTREPRENEURSHIP PROGRAM THE MISSION CENTER L3C CODE WORLD ORDER 21
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