jumpstart community 2009
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DESCRIPTIONJumpStart Community Report 2009
REALIZING OUR FUTURESTORIES OF ICONS, INNOVATORS & IMPACT
2 0 0 9 C O M M U N I T Y R E P O R T
JumpStart Inc. represents the best and brightest in 21st century economic development.
U.S. Commerce Secretary Gary Locke
Table of Contents
1 Message to Our Community
2 The Path of Icons & Innovators
3 Stories of Icons
6 Stories of Innovators
12 JumpStarts Impact
14 Recognizing Our Donors
16 Realizing Our Future
JUMPSTART 2009 COMMUNITY REPORT 1
This year, JumpStart is celebrating the entrepreneurial
icons and innovators of our region. We are inspired by
these visionaries who take an idea and with the right tools,
transform it into a company that brings wealth and prosperity
to an entire community. These are the people who have
generated prosperity for Northeast Ohio in the past, and are
in the process of realizing the regions economic future.
In this report, we tell the stories of Charles Brush, B.F.
Goodrich, and Ray Kralovic, all of whom had the vision
to create companies that generated billions of dollars in
revenues and employed hundreds of thousands of people.
The region hasnt had enough people with the vision, the
persistence, and the leadership of these entrepreneurs.
That is why JumpStart was created: to increase the number
of entrepreneurs able to turn a disruptive idea into an
impactful company, ultimately generating economic
prosperity and wealth for all the regions citizens.
Today, we are working with a new collection of entrepreneurial
innovators. If history repeats itself, some of these individuals
will help realize the transformation of our regions
economy once again. These entrepreneurs are following
the same paths to growth as the entrepreneurial icons of
the past, including raising capital, obtaining mentorship,
and accessing talent. But todays entrepreneurs have one
additional advantage: the support of a community which
has created a robust entrepreneurial ecosystem, led by
JumpStart, to provide them with capital and assistance.
JumpStarts work in guiding companies led the Economic
Development Administration to recognize JumpStart as a
recipient of the 2009 Excellence in Urban and Suburban
Economic Development Award. JumpStarts other
accomplishments this year (ending June 30, 2009) include:
# Supporting over 400 entrepreneurs with thousands of hours of free technical assistance and investing over $3.5
million in ten companies via JumpStart Ventures.
# Assisting the JumpStart Ventures portfolio of companies in raising over $23 million in follow-on capital, and
the JumpStart TechLift Advisors clients in raising $15
million, in a year with almost unprecedented challenges in
# Reaching more than 5,000 community members and entrepreneurs to tell them about JumpStart and Northeast
Ohios robust entrepreneurial ecosystem while building the
skills of more than 275 entrepreneurs with JumpStarts own
# Creating over $75 million in economic impact in the region, including generating tax revenue of $8.3 million to the
federal and state government. This revenue is almost equal
to JumpStarts annual budget, including funds for direct
# Rebranding our services to make ourselves more accessible to more entrepreneurs by adding JumpStart TechLift
Advisors and JumpStart Inclusion Advisors (and the related
395 entrepreneurs these teams support) to our portfolio of
# Raising over $10 million to support the operations and investments of JumpStart.
We are proud of these accomplishments, but it is the progress
of the entrepreneurs we support that makes our work come
to life. Read the historical stories and be inspired by what
entrepreneurs have accomplished, with the right tools.
More importantly, consider how the current innovators are
in the process of creating our regions economic future.
We continue to be extremely grateful to JumpStarts donor
community. Thank you for your support of our work and of
our regions entrepreneurial innovators.
MESSAGE TO OUR COMMUNITY
RAY T. LEACh
Chief Executive Officer
DOUGLAS L. WEINTRAUb
REALIZING OUR FUTURE: STORIES OF ICONS, INNOVATORS & IMPACT2
The paths entrepreneurs take as they build a company are similar,
whether they started a business 100 years ago or start one today.
The entrepreneurial icons from Northeast Ohios past led their
companies down this high growth path and created organizations
that have continued to grow for decades. The innovators
JumpStart is working with today are on the same path and will
continue to follow that path as they realize their potential.
In the pages that follow, we tell the stories of both the icons of our
past and the innovators realizing our economic future. In addition
to telling these stories, we are using a chart to represent the growth
path they are following. The stages in the path are from Ohio Third
Frontier, one of JumpStarts biggest supporters, and outline the
different stages of growth and activities in each stage. Although each
entrepreneurs journey is slightly different, the general path is the same.
n IMAGINING (I): Idea and business model are conceptual.n INCUbATING (IN): Technology and business model are in development, but products
are not yet for sale. This can include preclinical trials.
n DEMONSTRATING (D): Prototype technology is completed and sales orders can be taken. Clinical trials and FDA approval occur.
n MARkET ENTRY (ME): Product or technology is being sold and revenue model is determined.
n GROWTh & SUSTAINAbILITY (G&S): Company is an established and growing business, with a plan to increase market share, revenue, and profits.
ThE PATh OF ICONS & INNOVATORS
JUMPSTART 2009 COMMUNITY REPORT 3
Charles Brush | Brush Electric Company
George was impressed and invested, and with this vote of
confidence, Charles was able to raise additional money from
the Telegraph Supply Company. Georges company also
offered technical assistance in developing, manufacturing,
and marketing the dynamo. With the capital and
assistance, Charles filed his first of 50 patents
and continued to develop the arc lamp. His
research led to the ring clutch, an innovation that
let the arc lamp operate reliably and efficiently
without supervision, and led to increasing the
amount of fuel in the lamp, allowing it to run
all night without maintenance. Two years after
giving up his day job, Charles unveiled his
arc lamp system at what is now Clevelands Public Square.
According to The Plain Dealer, twelve lamps simultaneously
lit the square as thousands watched in amazement.
By 1883, the systems were across the country from Boston
to New York to San Francisco, the companys revenues
reached $2 million, and it had a workforce of 400 associates.
By 1891, the company had merged with its top competitor,
Thomson-Houston Electric Company, and then again
with Thomas Edisons company to form General Electric.
The mergers created the GE we know today, which has
over 300,000 employees with revenues of $183 billion,
and remains at the forefront of energy creation.
1880: Reorganizes company to form Brush Electric Company
1883: $2 million in revenue
1883: 400 employees
1891: Merges with Edison General Electric Company to become General Electric Co.
1878: Gains endorsement from The Franklin Institute
1879: Unveils electric lighting system on Clevelands Public Square
1877: Receives investment and guidance from childhood friend George Stockly
1876: Charles completes dynamo design improvements on paper
1877: Works full time to develop dynamo and electric arc lamp
And the growth continues:
2009: 300,000 employees worldwide
2009: $183 billion in sales
I IN D ME G&S
CHARLES BRUSH, the man credited with inventing the street
light as we know it, was a lifelong innovator. He innovated
throughout his life, from age 12, when he made his own
static electricity machine out of household items, to nearly
30 years later, when he built the worlds first automatically
operated wind turbine to power his home. Today, Charles
Brushs legacy is cemented in the role General Electric
plays as a global innovator in energy creation.
Charles quit his job selling iron ore in 1877 to work
on his idea for a dynamo electric engine and a
powered arc lamp. At that time he looked to a
childhood friend for capital. George Stockly,
Vice President of Clevelands Telegraph
Supply Company, heard from his
own company directors that
electric lighting was a
field without a