BUILDING AMERICA’S MOST ENTREPRENEURIAL CITY: 2015 …

BUILDING AMERICA’S MOSTENTREPRENEURIAL CITY:2015 REPORT

2 BUILDING AMERICA’S MOST ENTREPRENEURIAL CITY A REPORT FROM DIGITAL SANDBOX KC 3

The entrepreneurs tell the rest of the story. With Sandbox support, Happy Food Co. will connect its ordering process with distribution partners, Edge Up Sports will build a rich feature set that will help its customers with their fantasy football leagues, Cancer Survivorship Training will provide practical education tools to help health care providers improve care for cancer survivors, TapTeach will develop in-classroom, student-specific education applications for K-12 students. And the innovations continue.

From wearable technology that improves sports performance to mobile apps that help prevent migraines, from smart homes to smart scheduling, morethan300early-stageentrepreneursand potentially high-growth startups are tapping support, advice and connections from the Sandbox to move from concept to commercialization.

Established in 2013, Digital Sandbox KC is a proof-of-concept center that provides the needed technology infrastructure to take advantage of the region’s strengths. Sandbox offers a central hub for large businesses, emerging enterprises and entrepreneurs to evaluate and develop new products and services.

The Sandbox is an innovative approach that connects Kansas City’s corporate community to the area’s entrepreneurs and early-stage companies. Developed with support from an unprecedented two i6 Challenge Grants from the U.S. Commerce Department’s Economic Development Agency, Digital Sandbox KC includes players from academia, large corporations, entrepreneurs, business development organizations and economic developers. The program’s mission is to accelerate the commercialization of new ideas and promote business and job growth in the region.

By financing small proof-of-concept projects, typically around $20,000, coupled with ongoing support from local corporations and other partners, Digital Sandbox KC helps accelerate the commercialization of new ideas and promote business and job growth throughout the region.

BRINGING INNOVATIONTOLIFE

The numbers tell part of the story: 55 proof-of-concept

ideas funded since 2013, 27 new businesses created,

$22.7 million in follow-on funding and 247 total new

jobs created. Digital Sandbox KC is making a difference for

early-stage startups—and doing its part to help make

Kansas City America’s most entrepreneurial city.

Digital Sandbox KC helps move ideas from concept to commercialization.

Typically, the pipeline for submissions is 16 to 20 per month with an average

project receiving $20,000 in support. Working with more than 300 early-stage

concepts to date, this effort has resulted in:

S A L E S$10.7 MILLION

IN TOTAL SALES

J O B S

247TOTAL JOBS CREATED

$7.3 MILLIONIN TOTAL PAYROLL FOR THOSE JOBS

P A T E N T S30

PATENT APPLICATIONS

5PATENTS AWARDED

E X I T S

3SUCCESSFUL EXITS

(SOLD/MERGED FOR MONEY)

RESULTS

55PROOF-OF-CONCEPTPROJECTSFUNDED

FORAREASTARTUPS

TWENTY-SEVEN

NEWKC-BASEDCOMPANIESCREATED

$22.7MILLION

INTOTALFOLLOW-ONFUNDING

17COMPANIES

FOUNDEDORCO-FOUNDEDBYWOMEN–TECHNOLOGY

ENTREPRENEURS

T O P I N D U S T R I E S

HEALTHCAREITEDUCATIONLOCATION-BASEDSERVICESWORKFORCEMANAGEMENT

WEARABLETECHNOLOGYCONSUMERMARKETINGLOGISTICS


DIGITALSANDBOXKC WINS AN UNPRECEDENTED SECOND i6 CHALLENGE GRANT

from the Department of Commerce Economic Development Administration. The three-year, $500,000 grant is matched by the Kauffman Foundation, Missouri Technology Corporation and the UMKC Henry W. Bloch School of Management for a total of $1,150,000. Additional corporate support provides key resources and connections for the young companies in the Sandbox.

As “America’s Innovation Agency,” the Department of Commerce prioritizes its support of startups, entrepreneurship and business incubators through intellectual property protection, collection and dissemination of data that helps build businesses and investments in local economic development.

CollaboratingtoBuildAmerica’sMostEntrepreneurialCity

Tin Man Prints, one of the startups showcased at Crowdfunding Live, creates custom aluminum prints.

CROWDFUNDINGLIVE:KCINNOVATIONSHOWCASEOFFEREDNINEKCSTARTUPS with active crowdfunding campaigns an opportunity to meet the community and gain followers and funders. Hosted by Hallmark, the showcase was sponsored by Digital Sandbox KC, the Greater Kansas City Chamber of Commerce and KCSourceLink, along with corporate partners UMB; DST Systems; Garmin; JE Dunn Construction; Ewing Marion Kauffman Foundation; Lathrop & Gage; Shook, Hardy & Bacon; Kansas City Chiefs and University of Phoenix.

INAPRIVATEROUNDTABLEWITHSECRETARYOFCOMMERCEPENNYPRITZKER, 10 Sandbox entrepreneurs shared how the Sandbox has advanced their companies and how the Department of Commerce can work alongside new businesses to shape the next great era of American entrepreneurship and innovation.

DigitalSandboxKCisaperfectexampleofhowtheU.S.DepartmentofCommerceissupportingentrepreneurialecosystemsaroundthecountrythroughpublic-privatepartnerships.

— Secretary of Commerce Penny Pritzker

APARTNERSHIPWITHTHECITYOFOLATHEDRIVESLOCALENTREPRENEURSHIP. The Sandbox’s partnership with the City of Olathe will focus on continuing the city’s efforts to drive entrepreneurship and new business starts. The first company in Olathe to receive Digital Sandbox KC program support is PerfectCube, founded by Mark Calhoun and Jim Starcev.

TheSandboxhasdoneaphenomenaljobhelpingearly-stageentrepreneursmovefromconcepttobusinessstart.WeknowthatwehavemanycreativeentrepreneursinOlathewhocanusetheSandboxtoturntheirideaintoagrowingOlathebusinessthatcreatesnewjobsinourcity.

— Michael Wilkes Olathe City Manager

THREESTARTUPSAREFUNDEDTHROUGHAPARTNERSHIPWITHUMKCBLOCHSCHOOLE-SCHOLARS: Mag-Vest, the first magnetic tool vest; Mobility Designed, whose first product brings much needed innovative design to crutches; and Smart Steps Mobile, an app designed for teens and adults with cognitive disabilities such as autism or Down syndrome. The partnership gives E-Scholars participants a direct route to resources of the Sandbox.

THESANDBOXHOSTSITSTHIRDSUMMERINTHESANDSERIES with an impressive

lineup of topics and experts to prompt discussion around some of the hottest topics for

entrepreneurs today, including how to access capital in KC, how to make an effective

pitch to the Sandbox or angel investors and how startups can attract and acquire their

first customers.

ThemissionoftheUMKCEntrepreneurshipScholarsprogramistoacceleratetheformationofscalable,sustainableventuresandcreatejobs.Now,ourE-ScholarsentrepreneurswillgetthefullbenefitofapartnershipwithDigitalSandboxKCandthecombinedresourcesbothprogramscandeliver.

— Jeff Hornsby, Regnier Institute director and Henry W. Bloch/Missouri Endowed Chair in Entrepreneurship

27NEWKC-BASED

COMPANIESCREATED

247TOTALJOBSCREATED

$22.7MILLIONINNEW,

ADD-ONINVESTMENTRAISEDFORKCSTARTUPS


DigitalSandboxisanecessarypipelinetohelpfindthenextMarionLabs,H&RBlockorCerner,justafewofthehomegrowncompaniesthatcontinuetomakethiscitygreat.– Kansas City Mayor Sly James

t its core, Digital Sandbox KC provides innovators with proof-of-concept resources to support early-stage commercialization. After startups receive support, the Sandbox continues to provide access to experts, mentors, potential customers and follow-on funding resources. We’re helping to build the next generation of great Kansas City companies.

Here are just a few companies that

have grown up and gone far because

of the initial help they received from

Digital Sandbox KC.

PatientsVoices™ uses a proprietary interview technique and software to convert patient feedback into health care data that hospitals can use to improve patient satisfaction—and increase Medicare reimbursement.

But when faced with its own funding issues, PatientsVoices’ founder Mary Kay O’Connor turned to the Sandbox for feedback. With help from director Jeff Shackelford, O’Connor refined her pitch, made strategic connections with

technical experts and grant-writing counselors and landed a $150,000 grant from the National Science Foundation and a $100,000 credit from Google for business services.

“TheintroductionsandsupportfromDigitalSandboxKChavebeenkeybuildingblocksinPatientsVoices’successandimportantsteppingstonesinmyeducationasanentrepreneur,”saysO’Connor.

PatientsVoicesReceivesKeyFundingtoImprovePatientCare

Lacey Ellis, founder of LittleHoots, wanted a way to capture all the little funny things her son said. In 2014, she and her team created LittleHoots, a mobile app that helps parents keep track and share the witty nuggets of childhood.

The Sandbox supported initial proof-of-concept mobile applications that were later used to secure follow-on funding. Today, the LittleHoots app has been downloaded more than 41,000 times. In addition, Ellis has partnered with the Huffington Post and the Today Show, which feature LittleHoots’ engaging content on an ongoing basis.

“Withlimitedresourceswehadtogettremendouslycreativetogeneratebig-timeawareness,”saysEllis.Astoryaboutoneoftheapp’susers—Ms.Greta,age4—wentviralearlierthisyear.Herhilariousmemorytileswere#7onRedditandfeaturedbytheHuffington Post,GeorgeTakei,ZooeyDechanel’sblogandPopSugarMoms.“Thiswastheawarenessboostweneeded.”

LittleHootsGoesViral

Social media has created opportunities for companies to connect to customers and key stakeholders like never before. Often, however, tweets and posts can seem “planted” or robotic. Julie Edge and Steve Stava, founders of Creelio, saw an opportunity to help make companies sound more human online.

Digital Sandbox KC gave Creelio the ability to quickly extend their storytelling platform. Additional networking and

media exposure helped propel Creelio forward. It raised $300,000 from an angel investor and was awarded $50,000 in Kansas tax credits after completing the SparkLabKC accelerator program.

“With this money and vote of confidence we’ve hired seven people including a chief technology officer, which is vital to our business,” says Edge.

CreelioLeveragestheSandboxforFollow-OnFunding

IhaveeveryconfidencethatwhatiscomingoutofDigitalSandboxKCwillplayabigpartinthefutureofKansasCity.– Donald Hall Jr., President and CEO of Hallmark Cards

Why would one of the largest engineering consulting firms in the world snap up a small, Kansas City startup? To gain technology, innovation and talent.

In January 2015, Burns & McDonnell, a 5,000+ employee-owned firm, recruited Nathan Benjamin and Brian Alferman. They were the innovators behind PlanetReuse, a first-round Sandbox company started by Benjamin in 2008. PlanetReuse developed a platform for reclaimed building material coordination, brokering and consulting services throughout North America. That platform is now part of the broad

range of services offered by the Burns & McDonnell Global Facilities (GFS) practice.

“As environmental consciousness continues its path towards the mainstream, Burns & McDonnell continues bringing inventive solutions to its customers,” said Greg Graves, chairman and CEO of Burns & McDonnell. “We see an immediate opportunity to impact the planet and our clients’ bottom line within commercial architecture, manufacturing and retail.”

PlanetReuseBringsGlobalReusePlatformtoBurns&McDonnell

FuelingtheFutureofKansasCity


DigitalSandboxCompanies Digital Sandbox Companies

ACREDESIGNSLLC builds homes for the next generation that fully embrace new technologies, processes and materials. Support from Digital Sandbox KC is enabling Acre Designs to finalize development and validate the performance of its PGX system.

AWARE3 helps churches launch and manage a branded mobile app to make it easy for their congregations to connect and engage. The Sandbox provided support for the development of back-end integration, matched the company with mentors, included them in the Sprint Mentoring program and helped solidify a working partnership with VML, one of the world’s largest digital marketing agencies.

BIGBANG is a backend as a service (BaaS) platform for developing real-time applications for mobile devices, desktops and the web. Proof-of-concept support from Digital Sandbox KC helped expand the number of programming languages supported by the API and provide technical documentation.

BRIEFCASE (Cobrapps) aggregates and simplifies job search for college students. Support from Digital Sandbox KC helped Briefcase continue to fully develop their initial product version and release a closed beta trial with local colleges and universities. Additionally, the Sandbox has introduced Briefcase to corporate partners for potential beta testing of their platform.

CANCERSURVIVORSHIPTRAINING is an e-learning company that delivers continuing education courses for health care professionals. The courses are designed to increase knowledge and cancer survivorship care, thereby improving the lives and well-being of cancer survivors.

CLAIMJOCKEY files and manages long-term care insurance claims for families and care providers, helping them access funds for needed care. With the help of Digital Sandbox KC, ClaimJockey is building a new website that can be linked to their HIPAA-compliant database.

CREELIO’S technology platform and mobile application help executives grow their online thought leadership position, build their company brand, increase web traffic and attract raving fans. Digital Sandbox KC support contributed to the development of their web interface and data analytics components for the platform.

DEWSLYMEDIA is a safe and secure online community that brings together schools, teachers, parents and students—all in one place—to stay up-to-date on important school, classroom and activity updates. The proof-of-concept project is helping Dewsly with the development of a smartphone app. Dewsly has secured significant equity investment.

DIVVYHQ is a cloud-based, content planning and production workflow tool built to help marketers and content producers get/stay organized. With the lead IT support provided by Digital Sandbox KC, DivvyHQ increased their product development cycle and secure a significant round of equity investment.

EBSYSTEMS (formerly e-Beacons) uses mobile applications, Bluetooth beacon devices and a cloud data platform to help make companies more efficient through improved workflows and employee worksite accountability. The Sandbox supported code framework and end-user design.

E.D.DENTAL, dba The Dentist Is IN, provides 24/7 dental consultation in emergency rooms, urgent care centers and wellness programs through telemedicine. Digital Sandbox KC support gets them to market faster.

EDGEUPSPORTS is a platform for people who play fantasy football and want a more robust research tool. It gives participants data on NFL players’ behavior and insights from multiple data sources along with traditional fantasy information. Digital Sandbox KC support developed a richer feature set.

FANADDICT created an event listing service that easily tracked live music events. Digital Sandbox KC resources helped to develop the app and test feed features.

FLYOVERINNOVATIONS is a hardware startup company focusing on easy-to-use smart A/V and A/V accessory products. The first product, Blumoo™, provides users seamless control of the audio and visual equipment already installed in their home. Digital Sandbox KC worked with Flyover to develop a prototype on the iOS and Android mobile platforms.

FOLIOMATCH developed a platform that organizes and keeps track of education achievements to receive the best scholarships, internships and career opportunities on the market. The Sandbox supported front-end web development for FolioMatch’s online platform. Completing this project allowed FolioMatch to launch and test its beta.

GENNEO gives people the tools to convert their own natural movement into battery charge for phones and other electronic devices. Digital Sandbox KC supported a beta test build of up to 50 model G3000 units for field testing as a final step before launching Genneo-branded products.

HACUMEN helps cyber security consultants collaborate on IT security audits and create detailed reports. Support from Digital Sandbox KC enables them to develop a prototype and provide access into the KC business ecosystem.

HANDPRINT developed a platform that makes 3D printing easy and convenient. Support from Digital Sandbox KC resulted in the establishment of the company and helped finish its beta version of the software.

HAPPYFOODCO delivers an Eat Well solution for people who want home-cooked meals but don’t have time. The “meal kits” include ingredients supplied by premium providers that are delivered daily to designated distribution partners equipped and monitored by Happy Food Co technology.

HEARTTOHEART™NETWORK’S patent-pending care management platform reduces costs, improves care and optimizes outcomes by enabling remote management of patients. Digital Sandbox KC support helped bring a diabetes management system to Children’s Mercy Hospital.

INNOVATIVEHEALTHMEDIA offers products designed to help hospitals and physician offices provide excellent patient care and generate a profitable business. Digital Sandbox KC is working with Innovative Health Media to improve its eAWV product to add additional features, ensure compliance for Medicare 2016 guidelines and improve back office functionality.

KNODA created a social platform where predictions were made, voted on and results were crowdsourced by the community. Digital Sandbox KC assisted in market validation and intellectual property search including development of an iOS application.

LABORCHARTis a resource management and scheduling application for the construction industry, replacing the traditional whiteboard and primitive spreadsheet with an automated process. Support from Digital Sandbox KC enables LaborChart to enhance the product, helping contractors save time, simplify workflow processes and ensure that manpower hours are maximized.

LENDINGSTANDARD automates the debt financing of commercial real-estate with a focus on multi-family properties. Digital Sandbox KC helped LendingStandard develop the processing and checklist-oriented functions of their web application.

LIGHTBRIDGE is focused on delivering distributed data storage to its clients, ranging from small business to enterprise level engagements. Digital Sandbox KC worked with LightBridge to develop customer integration features and advise on intellectual property protection. Lightbridge recently closed on a significant Series A funding round.

LIMELIGHT provided the visibility to secure the safety of meat production across the food supply chain, from rancher to retailer. Digital Sandbox KC conducted a market research project to validate market conditions, determine end-user feature needs and determine market position.


Digital Sandbox Companies Digital Sandbox Companies

LITTLEHOOTS is a mobile application designed to help busy parents capture and share all the fabulous things their kids say and do. Digital Sandbox KC funded prototype development, testing and functionality refinement.

LOCALRUCKUS created a local event platform. Digital Sandbox KC assisted with development of core technology. Local Ruckus secured a substantial contract with Sprint, a Sandbox partner.

MAG-VEST is the first magnetic tool vest that lets people carry their tools from any working position, unlike other solutions that have limited compartments or simply get in the way in tight spaces. Digital Sandbox KC support will help them develop their website and be ready for orders.

MAPPER (Angling Technology) is a convenient service platform for rapidly creating interactive maps. Digital Sandbox KC resources were used to develop go-to market capabilities including new mapping features and enterprise map sales and management.

MIZOCALO, a project of Bluejacket Technology, took the next steps in developing its product for the U.S. Hispanic market with the help of Digital Sandbox KC.

MOBILITY+DESIGNED creates devices to improve quality of life for those with mobility challenges. Their first product, the M+D™ Crutch, solves the problem of pain and potential damage to armpits, hands and wrists caused by the use of standard crutches. Digital Sandbox KC support is for prototype design.

MOTAVERA enables businesses to find and hire college students for internships and entry-level employment. Support from Digital Sandbox KC will further design and develop the existing minimum viable product of the platform.

MYSUPERDISPATCH is an app and web platform that helps trucking companies reduce paperwork, more efficiently invoice and process customer payments more quickly. Digital Sandbox KC support helps them to get to market faster.

PASSEL is a free, web and mobile app that

enables moms to easily manage multiple mobile calendars. Support from Digital Sandbox KC is being used to complete the development of Passel’s minimum viable product that includes both iOS and Android operating systems.

PATIENTSVOICES™ quickly identifies the problems that patients repeatedly mention to help hospitals improve their patient satisfaction scores. Digital Sandbox KC support is used to create HIPPA-secure analysis and reporting tools that summarize patient feedback.

PERFECTCUBE provides business analytics tools – typically available only to large retailers – for small retail business owners. The tools help business owners make more informed decisions by collecting POS and other relevant information. The Sandbox support allows them to add additional functionality.

PHISIONARY is developing Union Portal, a web and mobile application that allows union members to access their fringe benefits information and provides an avenue for contractors to securely pay their union contributions online. Digital Sandbox KC support enabled the company to develop a beta version of the company’s online app.

PLANETREUSE Marketplace developed a platform for reclaimed building material coordination, brokering and consulting services throughout North America. That platform is now part of the broad range of services offered by the Burns & McDonnell Global Facilities (GFS) practice.

PLAY-ITHEALTH makes taking medications and following medical regimes easier, and even fun, with the most comprehensive, innovative, and responsive adherence system to date. Digital Sandbox KC helped develop and customize the Pearl a Day educational components of the Play-it Health platform.

RFP365 provides software to facilitate the entire RFP process. Their Sandbox project upgraded the core infrastructure and supports future integrations with external applications.

ROYALLOYAL’S mobile app promotes store products for gas and convenience stores. Digital Sandbox KC support is assisting the company with building a more streamlined user experience for both store owners and store customers.

SHOTTRACKER (Data Driven Sports) is an interplay of hardware and software that tracks competitive athletes’ (of all ages) performance, motivates them to work harder and generates data that positively impacts their game.

SMARTSTEPS mobile is a decision-making app designed for teens and adults with cognitive disabilities, such as autism or Down syndrome, helping users solve everyday problems. Digital Sandbox KC’s support helped create a portal for user-created decision trees.

THESWAPPINGCOMPANY is an e-commerce platform for the resale fashion community to help move inventory on multiple social media and e-commerce marketplaces. Digital Sandbox KC supports the development of the web platform and mobile app.

TAPTEACH is an educational engagement platform designed to connect classrooms to mobile devices leveraging an on-demand experience driven by Bluetooth beacons. Support from Digital Sandbox KC allowed them to build out important platform elements.

TERACRUNCH’S custom behavioral analytical tools transform raw data into fact-based actionable insights for business challenges faced in operations and marketing. Digital Sandbox KC resources were used to help establish the company’s corporate structure.

TRACKTI was developed to eliminate the scheduling chaos associated with selling a home. Digital Sandbox KC worked with TrackTi on development of their mobile application. TrackTi secured a strategic partnership with one of the nation’s largest residential home-show scheduling services.

TRELLIE’S first product, a wireless device disguised as a women’s fashion accessory, aims to help keep women better connected. Digital Sandbox KC worked with Trellie on critical design engineering work that enabled the company to complete its initial prototype and finalize its first product for consumer release. Trellie has closed a significant Series Seed B round of investment.

VENTURE360 has developed a technology platform to assist private equity investors in evaluating, closing and tracking investments in order to facilitate a private market for trading these securities. Digital Sandbox KC resources were used to help build the “entrepreneur facing” element of the Venture 360 platform. With this element added, Venture 360 released its beta version.

WELLTODO is developing a workforce of digital therapeutics for chronic disease sufferers. Proof-of-concept support from the Digital Sandbox KC assisted in implementation of a pilot study for their first mobile app, Migraine Coach.

XLRYNTTECHNOLOGIES develops proprietary programmable computer hardware products, capable of bringing terabit speed solutions to Big Data. One benefit of support from Digital Sandbox KC has been the production of a more robust current edition, built with the latest version of the emerging set of network cards coming onto the market.

YOURADOPTIONCOACH provides adoption agencies and professionals with resources to address the high cost of adoption. Digital Sandbox KC assistance helped the company add new services to the current system and build a new gift registry feature.

ZORILLARESEARCH uses computational

technology to predict problem interactions of a drug in the early stages of development, enabling the developing company to repurpose failed compounds earlier. With project support from Digital Sandbox KC, Zorilla will move its SABLE software to a high-powered, cloud environment and develop a user-friendly interface for interaction with clients.

AuniquepartnershipworkingtogethertobuildAmerica’smostentrepreneurialcity

OLATHEK A N S A S

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BUILDING AMERICA’S MOST ENTREPRENEURIAL CITY: 2015 …