Startups : Innovation + Job News

Do people investing money in companies geared for social or environmental good have to give up the prospect of market-rate returns in exchange for working towards a better world?

No. At least according to the first systematic academic research to address the young but extremely broad field of "impact investing," the Wharton Social Impact Initiative's (WSII) new report, "Great Expectations: Mission Preservation and Financial Performance in Impact Investments." In some arenas, socially or environmentally conscious investors can see their returns hit market-rate performance.

"It’s difficult to talk about the report because there is so much nuance in it," explains co-author Harry Douglas, a full-time impact investing associate at WSII, who continues to follow the data of this growing field. However, he hopes that the findings will be accessible enough to spread the message that, contrary to longtime perceptions, impact investing doesn’t "necessitate a concessionary return."

What does that mean?

Investors who choose to put their private equity dollars into companies with missions like micro-finance, healthcare in low-income regions, education technology or green energy don’t have to accept smaller returns than folks who put their money into more traditional profit-driven avenues.

The study tracked the performance of 53 impact investing private equity funds that represent 557 individual investments, and debunks the widespread assumption that lower investment returns are inevitable when investing in socially focused funds.

How do we define impact investing? According to the Global Impact Investing Network, the receiving company’s intentionality of impact (meaning their bedrock commitment to the good outcomes they espouse), the measurable impact the company makes, and the expectation of a financial return.

So since impact investing is such a broad field, with many investors valuing a specific social interest over maximized profits, how did WSII identify a stable of funds to follow? WSII asked participating fund managers to self-identify in one of three categories: those seeking to simply preserve the capital invested, those seeking below-market-rate returns, and those pursuing market-rate returns.

"Our report doesn’t make any type of value judgements about what’s appropriate there, because there’s important work to be done in each of those three segments of the financial expectation," says Douglas. But this study focused only on the latter group of investors: those whose fund managers were seeking market-rate returns.

They did this because they wanted to get the best understanding possible of what the industry’s going to look like over the next couple of years, given the typical five-to-seven-year life cycle of a private equity investment. Funds launched around 2010 are nearing the time that fund managers will exit the companies involved. So there are the questions of whether those investments will prove profitable, whether the companies' missions continue after the exit, or if fund managers seeking higher returns abandon the ideals when mission protections aren’t built into the language of exit agreements.

"We focus on this market-rate seeking segment because we felt the tension would be greatest in this group," explains Douglas. "They would be trying to balance these competitive market-rate returns with preserving portfolio company mission."

This research is just the beginning.

"We’re really hoping to grow this sample size, so we can make more definitive statements about the industry," adds Douglas. 

Writer: Alaina Mabaso
Source: Harry Douglas, Wharton Social Impact Initiative 

A year after launching Frankford Avenue's Kensington Quarters -- a restaurant with its own on-site butcher shop sourcing whole, sustainably and humanely raised animals -- owner Michael Pasquarello has been pleasantly surprised. (Here’s the Flying Kite look at KQ’s opening.)

"What’s been really awesome is the butcher shop has performed better than we expected," he says of the front corner of the space.

Pasquarello worried that his goal of reviving an old-fashioned butcher’s counter in the age of the supermarket would be tough, but a dedicated customer base has materialized. Thanks to that success, KQ offers a growing roster of locally sourced retail products including pickles, produce, dairy, cheese, salts and olive oil. With help from butcher Heather Marold Thomason, Pasquarello plans to expand this part of the business over the next year, "so people can come through and put their meals together."

He also hopes to better utilize the upper floor, which already hosts a range of cooking and butchering classes and events. KQ Executive Chef Damon Menapace plans on more collaborations with top local chefs, including one in November with George Sabatino.

The demonstration space has already hosted Rob Marzinsky, executive chef of 13th Street Kitchens Restaurant Group's latest venture Buckminster’s, a "neo-bistro" slated to open in November in Point Breeze. The resto group -- owned and run by Pasquarello and his wife Jeniphur -- also operates Café Lift (their first restaurant, opened in 2003), Prohibition Taproom and Bufad. 

Buckminster's -- which will boast design elements that honor local science legend Buckminster Fuller of geodesic dome fame -- aims to capitalize on a dining style that’s especially popular in Paris right now, with young chefs giving their own spin on small plates of casual bistro food. But according to Pasquarello, Buckminster’s menu isn’t defined by French cuisine. It will focus on locally sourced goods, with a seasonal menu changing every couple of days and complementing the beverages on offer. Plates ($2-$21) will join eight beers and six wines, along with specialty cocktails.

Pasquarello hopes that Buckminster’s (coming to 1200 S. 21st Street) will open sometime in November offering dinner seven nights a week, with brunch and lunch hours to follow as the restaurant finds its feet.

Writer: Alaina Mabaso
Source: Michael Pasquarello, 13th Street Kitchens Restaurant Group

For patients who suffer heart attacks, the resulting damage to the organ can eventually lead to heart failure. Now a University of Pennsylvania lab is investigating the use of injectable biomaterials that show promise as a new frontier in cardiac repair.
 
Speaking at the University City Science Center’s Quorum, Dr. Jason Burdick, a Penn bioengineering professor, described how "hydrogels" have delivered promising results that "might be the difference between going on to heart failure or not." (Bioengineering encompasses concepts from biology and engineering; many areas of the field focus on biomedical applications.) 
 
The Burdick Polymeric Biomaterials Lab at Penn was established 10 years ago and immediately began work on hydrogels. The study of cardiac repair began around seven years ago. The aim is to create substances that go directly into the heart tissue to preserve the heart wall thickness and the overall shape of the heart, frequently damaged by heart attack or "myocardial infarction."
 
"Injectability is an interesting engineering problem," explains Burdick. The challenge is to get the gelatinous gloop to flow through syringes and catheters, solidify and stay stable in the heart tissue.
 
Burdick and his team are making progress using a class of hydrogels based on the molecule hyaluronic acid, already widely used in cosmetic and musculoskeletal procedures. A few small clinical studies are already underway.
 
"The next step is really defining the right formulation that we are interested in pursuing, so that we can finalize pre-clinical large animal trials," he says. "This involves selection of the appropriate method for delivery of the hydrogels to the heart. Hopefully we will move towards a Phase I clinical trial in just a few years."
 
Burdick is careful to credit clinical collaborators at Penn and other schools, notably Robert Gorman, a Penn professor of cardiovascular surgery. The two have founded a startup called Myostratum that is focused on the translation of hydrogel therapies.
 
"I believe this is an exciting area that has a lot of potential to develop new therapies for patients that have myocardial infarction," adds Burdick. "Many people are affected by heart disease and the development of therapies that can improve clinical outcomes is very important."
 
Source: Dr. Jason Burdick, Department of Bioengineering, University of Pennsylvania
Writer: Elise Vider

WRITER IN RESIDENCE is a partnership between the University City Science Center and Flying Kite Media that embeds a reporter on-site at 3711 Market Street. The resulting coverage will provide an inside look at the most intriguing companies, discoveries and technological innovations coming out of this essential Philadelphia institution.
 

Last winter, Philly chef Lou Boquila helped bring the city its first taste of a cuisine that’s hard to find in these parts: Filipino food. With help from partners Neal Santos, Jillian Encarnacion and Resa Mueller, Pelago Pop-Up Kusina temporarily took over Passyunk Square resto Noord. The event (and subsequent pop-ups) sold out, and now Boquila is launching his own restaurant in South Philly.

Perla, currently under construction at 1535 South 11th Street, will be the city's only Filipino restaurant. Boquila, a Philippines native who came to Philly when he was eight, says he’s not a traditional Filipino chef.

"But I know the food," he insists. "I know the flavors, [and] I relate that to a restaurant kitchen."

Balking a bit at overuse of the word "fusion," the fledgling restaurateur nonetheless describes Filipino dishes as a mix of influences. They blend Chinese, Malaysian, Indonesian and Spanish flavors, and are served in family-style communal meals that are hard to replicate in a restaurant setting.

Boquila, who’s been cooking for about ten years, got his start in the local food industry as a dishwasher at South Street’s now-defunt Knave of Hearts. He worked his way up, becoming a line cook and then helping run the kitchen, before deciding to attend culinary school. After finishing, he interned at Twenty Manning Grill, where he later became sous chef, and then moved to Rittenhouse Square’s Audrey Claire, where he’s been since 2007.

"Perla will be interpretations of popular Filipino dishes," he explains; he's aiming for "an approachable palate everyone can try."

For example, there's his version of kare-kare, a Filipino stew he makes with oxtail and tripe, along with peanut butter and shrimp paste. He assures diners not to be scared off by the unusual-sounding flavor combo of this "very different, very very funky dish," because it all blends together well with the under-appreciated savory quality of peanuts.

Perla will have a small start for its small space, focusing mainly on a tasting menu that will keep the chef in a hands-on role. But in a nod to traditional Filipino dining, the restaurant will offer special Sunday brunches -- according to Boquila, "breakfast is very big in the Filipino community" -- as well as a Sunday night homage to home-style Filipino dining with kamayan meals, large communal dinners eaten by hand off of a banana leaf.

Boquila hopes to open Perla by March of 2016.

Writer: Alaina Mabaso
Source: Lou Boquila, Perla

Last week, over 30 Philadelphians set their alarms and woke early to head to the Friends Center for breakfast. On offer was much more than just bagels and coffee -- organized by The Exchange, a co-working space comprised of nonprofits and philanthropic organizations, the event was an opportunity to discuss social innovation in Philadelphia.

The crowd included local leaders in development, government, nonprofit administration, startups and philanthropy. All are working towards making this city a national leader in uncovering thoughtful solutions to society's problems, whether through policy, programs or entrepreneurial ventures.

One of the key questions that arose from the discussion -- led by Matt Joyce of the GreenLight Fund (who works out of the Exchange) -- was, what are the things that limit great ideas? It's often not just economics, but also politics: being in the right rooms at the right times, and making the right arguments to the right people. That often takes a different type of expertise -- founders may have knowledge and drive, but they also need pitching help and matchmaking with investors and stakeholders. How can the entrepreneurial and nonprofit communities help nurture initiatives and organizations from creative spark to potential investment to surefire success?

Fortunately, the city has more and more avenues to incubate those great ideas, from the Philadelphia Social Innovations Lab to the Commerce Department's StartUpPHL program, to accelerators at established venture funds like DreamIt and Good Company Ventures. And even if every promising startup or pilot program doesn't make it, the founders earn valuable experience and become better bets in the future. 
 
Luke Butler, Chief of Staff to the Deputy Mayor for Economic Development, talked about how when First Round Capital (a Commerce Department partner) is looking to invest in early stage companies, the idea is important, but they invest primarily in the founder and the team. As an example, he mentioned Curalate -- a company that pivoted from trying to build an Airbnb for parking spaces to designing marketing campaigns for social media platforms. The company has become a shining star in the city's ascendent startup landscape.

And it's not only companies that have to be agile. A group of Temple students founded Philly Urban Creators, an urban farm at 11th and Dauphin. Their goals were to grow produce for the neighborhood and engage the local community. Five years in, they weren't making enough money to sustain themselves. How do you get from a nonprofit that's doing good, to a more sustainable revenue model? 

The organization went through the FastFWD program, a public/private partnership between The City of Philadelphia, GoodCompany Group and the Wharton Social Impact Initiative, funded in part by a $1,000,000 grant from the Bloomberg Philanthropies. Via that process they came to the conclusion that they needed new revenue streams. The team created a 12-week course targeted at formerly incarcerated youth, covering urban agriculture, carpentry and entrepreneurship. Combatting recidivism was a goal that could dovetail with their original mission, and funding for their first cohort came from the Department of Justice.

Other success stories were bandied about: Coded by Kids, Textizen (which was recently acquired and also went through FastFWD), Springboard Collaborative, an organization that seeks to stop the summer slide for low-income students. Eventually, though the conversation was still humming, folks had to get to work. Fortunately, the bigger picture discussion is just getting started.

Breakfast Club at the Exchange will return November 19. Stay tuned to Flying Kite for more details on the upcoming topic and how you can get in on the coffee talk. You can also join the discussion on twitter using the hashtag #ExchangeBreakfastClub.

 

If ROAR for Good had its way, there would be no need for its product.
 
The startup, located at the Innovation Center @ 3401, the University City Science Center and Drexel University’s entrepreneurial incubation space, is the developer of the Athena device, a line of jewelry that triggers an alarm and text messages if its wearer is in danger.
 
"We’ve architected a sophisticated printed-circuit board (PCB) that can fit within our Athena line of jewelry," explains Charlotte Wells, ROAR’s operations executive. "The PCB contains logic such as a Bluetooth micro-controller and buzzer that enables the jewelry to emit a loud alarm when the button is pressed, as well as communicate with wireless devices to send alert messages to friends and family members. We’re also engineering the ability for the device to call 911 in order to get instant help in an emergency."
 
The company took a big step last week, launching a $40,000 Indiegogo (IGG) campaign, which according to Wells, "gives us a chance to spread the word about ROAR as a company and Athena as a product, while allowing people to pre-order the device for themselves or loved ones."

ROAR raised 64 percent of its goal in the first day.
 
With a successful IGG campaign -- plus funds from angel investors -- ROAR expects to begin shipping by next spring even as it continues to innovate.

"The Athena line of jewelry is just our first product," says Wells. "We plan to introduce additional designs and styles to appeal to different lifestyles. Also, as technology evolves, more things can be done in even smaller spaces. For example, embedding the technology directly into clothing, footwear, phone cases and so forth enables even greater flexibility."
 
As a social-mission certified B-Corp, ROAR also wants to address the root causes of violence against women. The startup has committed to investing a percentage of its proceeds in nonprofits that teach young men and women about empathy, respect and healthy relationships.
 
"The truth of the matter is that women should not need to alter their lifestyle, modify their behavior or carry self-defense devices to protect themselves," insists Wells. "Our goal is to help create a society where that is a reality. In the meantime, ROAR is committed to helping make a difference."
 
"We will continue developing solutions to reduce assaults and ideally begin to transform society," she continues. "To borrow from Steve Jobs, we want to make a dent in the universe of women’s safety and nothing would bring us more joy than to obviate the need for devices like Athena."
 
Source: Charlotte Wells, ROAR for Good
Writer: Elise Vider

WRITER IN RESIDENCE is a partnership between the University City Science Center and Flying Kite Media that embeds a reporter on-site at 3711 Market Street. The resulting coverage will provide an inside look at the most intriguing companies, discoveries and technological innovations coming out of this essential Philadelphia institution.
 

Instead of flipping through year-old magazines next time you’re waiting in a doctor’s exam room, imagine using that time (an average of 22 minutes) to enter important medical information on an iPad. Imagine how that could make the average nine-minute doctor/patient encounter more productive for both parties. Real-time information could improve your care, speed your insurance claim and free up your provider to focus more on screening and treatment.
 
Noble.MD, a healthcare IT startup located at the University City Science Center’s Innovation Center @3401, has developed a technology platform that does all that. Their goal is to improve outcomes for patients and create efficiencies for medical providers.
 
We asked Meg Steinmetz, chief program officer at Noble, five key questions about this growing company.
 
What is your big idea?

The average U.S. primary care physician (PCP) has a patient panel of 3,500 patients. With all the requirements and recommendations of the Affordable Care Act, Medicaid and Medicare, it would take the average PCP 21.7 hours per day to provide all recommended risk screening and care. As a result, 50 percent of health risks are never identified and coded, including chronic conditions. 
 
Our team designed a product called Theo to gather information from patients about their health risks on an iPad while they're in the doctor’s exam room. Theo then offers useful information about their health in an interactive manner that is simple and easy to understand. Theo turns the exam-room waiting time into fun, productive time for the patient and provides valuable information to the doctor that is otherwise often missed.
 
What is your origin story?

Our CEO Todd Johnson and his wife Bindi Shah-Johnson -- both trained physicians -- experienced a health crisis with their daughter in the first days of her life. While sitting in an exam room, these two doctors and new parents experienced firsthand how lack of knowledge and communication lead to fear and confusion, which often leads to inaction or poor choices.

Experiencing what average patients go through every day in our incredibly complex health system inspired them to change that for people everywhere.
 
What is your timeline?

Theo is now three years old and in version 2.0. Theo is being used by over 150 physicians in nine states and has interacted with over 50,000 patients in the past year. We are measuring improvement in patient outcomes as a direct result of using Theo. Our next step? Partnering with a major health plan.
 
Why does the marketplace need your company?

With healthcare coverage now available to all Americans, healthcare providers and health plans need a faster, more efficient way to identify patient health risks, manage those risks and get patients engaged in their own care. Theo helps our clients to understand the health risks of their patients in real time and manage them immediately. Our clients range from individual clinicians to accountable care organizations, academic hospitals and health systems.
 
What is your elevator speech?

Doctors and nurses today simply do not have the time to spend with every patient to screen for every health risk, yet under the guidelines of the Affordable Care Act and the Accountable Care Movement, they need to do just that. Theo makes it easy for providers and health plans to learn more about their patients’ health risks and lifestyles, and for patients to learn more about how they can manage their health and better their lives.
 
Source: Meg Steinmetz, Noble.MD
Writer: Elise Vider

WRITER IN RESIDENCE is a partnership between the University City Science Center and Flying Kite Media that embeds a reporter on-site at 3711 Market Street. The resulting coverage will provide an inside look at the most intriguing companies, discoveries and technological innovations coming out of this essential Philadelphia institution.
 

For the second event of its Entrepreneur Works Presents speaker series, Philly nonprofit Entrepreneur Works is bringing Rebecca Rescate to International House. Shark Tank viewers may remember her from memorable turns during seasons two, three and four; on October 19 from 7 to 9 p.m., she will lead a special presentation and Q&A with aspiring entrepreneurs

A Northeastern University graduate who majored in design with a minor in business, Rescate tells Flying Kite that she wanted to be an art teacher growing up before realizing that product design was her true calling. In the last decade, she's shepherded a diverse stable of products onto the market, including the ones she landed deals for on ABC's Shark Tank. Cat owners across the country are toilet-training their felines with the CitiKitty system, while others are staying cozy with HoodiePillow. (For a look at all of Rescate’s brands and products, check out her website.)

A mother of three kids under 10, the Yardley resident is an advocate for tailoring work life to one's personal schedule. She also emphasizes that developing a successful brand or product doesn’t happen overnight.

"There’s a lot to learn and people don’t have the patience to do the learning," she explains, touting the value of the local library and myriad modern resources aspiring entrepreneurs can access without relying on a specialized degree. "I didn’t launch my second brand until six years into owning my first business."

It took her that much time to master the ins and outs of understanding a market, fine-tuning and promoting a product, and building her brand.

According to Rescate, her October 19 speech will tackle "the reality of entrepreneurship, and the really amazing lifestyle that you can build as an entrepreneur," unshackled from the typical nine-to-five, Monday through Friday schedule. It took her awhile to realize this, she admits, but once she began building her work hours around her life instead of the other way around, she realized "you can use it to your advantage to be more effective than you ever imagined."

For her, that means being "on fire" at four or five AM -- she can get more done in the wee hours of the morning than she ever can in the middle of the afternoon -- and designing the cycle of work on her businesses around the kids’ school year.

"A lot of times as an entrepreneur, you can forget to use those things to your advantage," she insists. "Take advantage of when you’re at your best…I have used the best of me to create the best business."

In other words, "Why are you working when everybody else works? It doesn’t have to be like that."

"I always try to empower people to use what they have at their disposal," she adds. "It’s never lack of education, lack of funding, or lack of connections that keeps you from being successful. How successful you are is determined by you."

The event, sponsored by Goldman Sachs 10,000 Small Businesses, is happening in partnership with International House’s Intercultural Leadership Series, which fosters "insight on the competencies, behaviors and specific skills needed to be an effective leader in an intercultural environment." Advance registration ($20; free for International House members and residents) is required.

Writer: Alaina Mabaso
Source: Rebecca Rescate

The University City Science Center  is now accepting applications for the sophomore class of its Digital Health Accelerator (DHA), a program that helps launch companies in the digital health or health IT sectors.

Need convincing? Consider UE Lifesciences, one of the startups in the inaugural DHA class that wrapped in July. UELS recently announced that it has raised $3 million in venture capital to commercialize its handheld breast health examination tool.

iBreastExam, a painless and radiation-free device, can be easily operated by nurses and social workers to provide standardized breast exams with instant results at the point of care. The product uses patented ceramic sensors invented at Drexel University to detect subtle variations in the stiffness of breast tissue that can point to tumors.

The implications for women in the developing world are enormous. Survival rates for women in the U.S. diagnosed with breast cancer are 80 to 90 percent compared to less than 50 percent for women in the developing world.

"iBreastExam may provide a fighting chance for them by enabling early detection on a large scale," explains Dr. Ari Brooks, director of the Integrated Breast Center at Pennsylvania Hospital.

According to the Science Center, UELS and the six other companies in the first DHA class went from prototype to commercialization, created 53 new jobs, generated $600,000 in sales and raised almost $4 million in follow-on investment.

For the next class, they're is looking for companies ready to establish operations in Greater Philadelphia with a product or concept ready to be sold -- or that will be ready with DHA support -- on the U.S. healthcare market. The six companies will each receive up to $50,000, office space at the Science Center, professional mentorship, access to investors and introductions to appropriate decision makers in their target markets.

The program will run for one year beginning in February 2016. Applications are due October 26.

Source: University City Science Center and UE Lifesciences
Writer: Elise Vider

WRITER IN RESIDENCE is a partnership between the University City Science Center and Flying Kite Media that embeds a reporter on-site at 3711 Market Street. The resulting coverage will provide an inside look at the most intriguing companies, discoveries and technological innovations coming out of this essential Philadelphia institution.
 

Recently, we took a look at Germantown photographer Tieshka Smith’s project Racism is a Sickness, which will be on display at City Hall on November 2. In the meantime, Smith of is one of eight presenters at the fourteenth Philly Stake dinner, which draws creatively and civically minded folks together to enjoy a meal and hear from some of the city’s most ambitious grassroots innovators.

A member of the worldwide Sunday Soup Network (founded in Chicago), Philly Stake has been operating since 2010. Until 2014, the all-volunteer group did three events per year, but it now focuses on just one. Held picnic-style at beautiful Bartram’s Garden, the shindig will return on Sunday, October 4 from 3 - 6 p.m.

Guests (which usually number about 250; get your $20 tickets in advance online here) come for the Philly Stake-provided dinner and dessert, featuring foods from local suppliers, and stay to hear presentations from artists, entrepreneurs and nonprofit leaders.

"It’s very simple," says founder Theresa Rose of their guidelines for presenters. "It’s just creative, relevant, community-engaged projects."

After hearing each presentation, diners vote by ballot on which concept they like the best. The first-place winner gets a cash prize of about $1,000 on the spot; the second-place winner nabs around $500 (sometimes when the vote is very close this prize is split between the second and third-place vote-getters).

According to Rose, Philly Stake isn’t a formal nonprofit or an LLC -- it’s a group of volunteers working together to boost Philly's best ideas for community improvement, and all the money gathered from ticket sales goes directly toward the next dinner and the prize money for the presenters.

This year’s dinner has an arts focus, and for the first time Philly Stake has the Greater Philadelphia Cultural Alliance as a promotions partner. (Past Stake winners have run the gamut from urban farming projects to a poetry program for Vietnam veterans to a dance program for Philly seniors. Others victors have included Recycled Artist in Residency, now its own nonprofit, and the West Philly Tool Library.) The other partner is Drexel University’s Center for Hospitality and Sports Management -- it is donating its kitchen for food preparation, and also lending some students to help out at the event. With a core group of just eight volunteers besides Rose (Mira Adornetto, Annemarie Vaeni, Brett Map, Mallary Johnson, Jonathan Wallis, Ruth Scott Blackson, Albert Lee and Emma Jacobs), the events are getting a bit hard to handle without the help of sponsors.

Philly Stake typically narrows its presenters down from a pool of 20 to 30 applicants. Rose calls the event "fuel for the imagination," because in a world full of dire news and fear for the future, Philly Stake reminds its fans that "there’s so many awesome things going on" and also a tangible way to support them.

Writer: Alaina Mabaso
Source: Theresa Rose, The Philly Stake

It should come as no surprise to readers of Flying Kite that a lot of innovation – and news of innovation – comes from the University City Science Center. 
 
Now Flying Kite and the Science Center have embarked on a new partnership, a way to keep up with the amazing output generated by this dynamic hub for innovation, entrepreneurship and technology commercialization.
 
For the next year as "Writer in Residence," I’ll be filing regular dispatches, offering an in-depth look at the West Philly institution's scientists, entrepreneurs, startups, and established companies, along with the work it does to move technology out of the lab and into the marketplace.
 
Founded in 1963, the Science Center is the oldest and largest urban research park in the United States. In service of its goal -- "to inspire a community of knowledge, spark the spirit of enterprise, and help expand and strengthen the Philadelphia’s region’s technology sector" – the campus offers an array of services including lab and office space, business incubation, support services and programming for entrepreneurs.
 
A few numbers reflect the magnitude of the Science Center’s impact on the region:

• The Science Center has 17 buildings – and is fast growing – at its 17-acre West Philadelphia campus.
• 8,000 people come to work at the Science Center every day.
• More than 350 companies have "graduated" since 1963.
• 93 graduate companies located in Greater Philadelphia employ 15,000 people.
• Graduate and current incubator companies generate $9.4 billion in annual regional economic impact.
• The Science Center’s 31 nonprofit shareholders include many of the region’s leading colleges, universities, hospitals and research institutions.

Over the next year, Flying Kite will report on many aspects of the Science Center’s programs and resources. For now, a quick primer:

• The Port Business Incubators flexibly accommodate the changing needs of emerging, fast-growth life sciences, physical sciences and digital technology companies. The Global Soft Landing Program fosters international business in the U.S. by helping global companies establish a foothold in local life sciences and IT markets. The Digital Health Accelerator (DHA) supports early-stage digital health companies with funding, office space, professional mentorship and introductions to key stakeholders in the region.
   
• The QED Proof-of-Concept Program supports proof-of-concept work in early-stage life science and health technologies with commercial potential. 
   
• Quorum unites the region’s entrepreneurial and innovation communities through a central gathering space on the Science Center campus.
   
• FirstHand adds art to the STEM subjects (science, technology, engineering and math) to create project-based STEAM programs and workshops that empower individuals and convene communities around creative applications of technology.
   
• The Innovation Center @3401 is a flexible workspace for startups.
   
• Blackstone LaunchPad Philadelphia supports student entrepreneurship in the Greater Philadelphia region through a partnership between Philadelphia University, Temple University and the Science Center. 

So watch this space and stay abreast as the Science Center takes Philadelphia innovators "from idea to IPO."

WRITER IN RESIDENCE is a partnership between the University City Science Center and Flying Kite Media that embeds a reporter on-site at 3711 Market Street. The resulting coverage will provide an inside look at the most intriguing companies, discoveries and technological innovations coming out of this essential Philadelphia institution.
 

Lancaster entrepreneur Charlie Crystle, whose food products are finding an enthusiastic audience in Greater Philadelphia, has a specific philosophy on the trouble with America’s economy.

According to the Lancaster Food Company CEO, what we need is "an effort to make jobs that meet people where they are, rather than where we want them to be." Politicians and civic leaders talk a lot about job training, but especially in a city like Lancaster -- which has a 30 percent poverty rate -- this falls short. Focusing on job training programs rather than immediately accessible jobs "continues to push the responsibility for unemployment onto the unemployed…if we don’t do something to meet them halfway, or all the way, [they] will never have decent employment," he argues.

Hiring people in poverty with a good living wage is a part of his company's mission. Crystle founded the company alongside his childhood friend Craig Lauer, who serves as chief product officer, in 2014. After launching and then exiting two software startups, living coast-to-coast and working in Central America with a program for street kids, Crystle felt a strong desire to create a company at home with a social as well as an economic impact.

Lancaster Food Company specializes in organic and sustainably sourced breads, spreads, salsas and jams, including sandwich rye and cinnamon raisin swirl bread, sunflower seed spreads, and limited-edition small-batch toppings from locally grown ingredients such as golden orange tomato salsa and organic strawberry jam. A Lancaster Heritage Grain bread is also on the way this fall.

While their products are handmade, Crystle insists Lancaster Food Company is already a scalable business -- their target market ranges from Washington, D.C., to the New York metro area, with a large presence in Philly. Currently, you can find their products at Mariposa and Weavers Way food co-ops, Reading Terminal Market, area Shop-Rites and the Lancaster Farm Fresh CSA. They just closed an exciting deal with five Wegman’s stores in Southeastern PA, and have their sights set on Whole Foods; look for their products on the shelves of a location in Wayne soon.

That increased reach means more room to advance the company’s social philosophy: hiring people in poverty struggling to find jobs. The company was launched with "a demand for jobs that require relatively low skills, and could meet people where they are in terms of their education, work history or legal background," explains Crystle, something that was difficult to achieve with his prior work in tech startups. "We’re trying to scale so that we can hire hundreds of people, not dozens."

He’s also adamant about the value of supporting local businesses and enjoys being able to tap into the vibrant agriculture of the Lancaster area.

"Every dollar that we spend locally has…three times the impact on our local economy" as money spent on goods from corporations in faraway states, he explains. That adds up to a business as committed to combating poverty as it is to pleasing customers.

Writer: Alaina Mabaso
Source: Charlie Crystle, Lancaster Food Company
 

Lisa Miccolis worked for a long time in coffee shops. She found a lot of pride and enjoyment in the communities she found there, both among her co-workers and the customers. But she didn’t feel that she was really fulfilling her life’s goal until she had a “lightbulb moment" -- the idea for a nonprofit café specifically designed to employ and mentor young people aging out of the foster-care system.

Miccolis first became aware of this problem on a trip to South Africa several years ago. She met residents of an orphanage who were facing the sudden loss of their support system when they were no longer legally children -- they didn’t have the network or skills to forge an independent life. She realized that the same problem exists in Philadelphia as youngsters lose access to a host of resources at age 18 (or, if they meet some criteria in Pennsylvania, age 21). Without family support or education and job prospects, they don’t know what to do.

"Generally, as soon as one thing goes, everything goes with it," she explains. "If your housing is unstable, chances are you’re not going to be able to hold a job. And if you don’t have a job, good luck getting a job."

Her answer is The Monkey & the Elephant, a non-profit café/mentoring program that hires youth who have aged out of foster care. It launched in late 2012, with pop-up locations in three spots over subsequent years: the Italian Market, Manayunk’s Transfer Station and Impact Hub (from March to December of last year).

In February 2015, The Monkey & the Elephant opened its first permanent location at 2831 W. Girard Avenue in Brewerytown. It’s open seven days a week, 7 a.m. - 7 p.m.

Eight youngsters have been employed in the program so far, ranging in age from 19 to 25. And it’s not just about food service -- the M&E team helps employees think through career and educational decisions, offers support in the housing process, and even helps out with schoolwork.

"What I’ve noticed is changes in how they think about things," explains Miccolis. "When they’re talking about what they want to do, we’ve been able to reframe the direction they’re taking to get there." It’s not about a rush to the "perfect job," but a practical, encouraging and achievable long-term path. Typically, the program takes on its participants for eight months, but the mentorship is ongoing. "When they finish with us and they are ready to work towards that job or get back into school or whatever it is, they have more of a foundation for it and they’re better able to support themselves.”

Monkey & the Elephant recently received an unexpected honor: a Startup of the Year nomination from the annual Philadelphia Geek Awards. "Geek" has a broad definition these days, and in Philly it’s a coveted label.

"I was pretty shocked and honored to have that nomination," says Miccolis; the ceremony that will take place on August 15 at the Academy of Natural Sciences. "I wouldn’t have thought of a coffee shop or a non-profit as a geek-centered organization... It’s pretty cool that it’s not just for the sciences or technology."

Writer: Alaina Mabaso
Source: Lisa Miccolis, The Monkey & the Elephant

Ben Franklin Technology Partners of Southeastern Pennsylvania (BFTP/SEP) closed fiscal year 2015 with $2.8 million in investments in 14 early-stage companies in sectors ranging from information technology to digital health to advanced manufacturing.

American Aerospace in Montgomery County provides endurance, beyond-line-of-sight, unmanned aircraft system products and services to oil and gas, electric transmission and emergency management customers.

BioBots in Philadelphia builds 3D bioprinters and bioinks, producing 3D living tissues out of human cells.

Montgomery County's Core Solutions is a progressive leader in transforming the behavioral, medical and social services experience for behavioral health providers, consumers and state agencies.
 
Philadelphia’s DECNUT provides healthcare organizations with dynamic point-of-care solutions designed to improve clinical decision-making. 

Defend Your Head in Chester County has developed an innovative protective helmet cover that reduces head trauma for all contact sports.

Philadelphia's Gencore offers a revolutionary cloud application analytics solution that provides high-fidelity performance analytics and monitoring. 

Grand Round Table in Philadelphia provides innovative clinical decision support solutions integrated into electronic health records.

Montgomery County’s KickUp aims to end the intellectual, physical and geographic isolation that educators face by providing access to quality coaching, collaboration and mentorship opportunities. 

MeetBall in Bucks County offers a location-sharing platform that helps fans navigate the crowd and improve their experience at large events such as NASCAR races, football games, concerts and festivals. 

Philadelphia's Optofluidics is enhancing particle analysis with state-of-the art, nanotechnology-enabled instrumentation. 

ROAR in Philadelphia is developing fashionable jewelry that doubles as an alarm and alert system to protect women from attack. 

Rocker Tools in Bucks County is an innovative designer, manufacturer and distributor of specialty construction tools. 

Philadelphia's Yorn is a real-time data platform that links patient-generated feedback with associated health data. 

Philadelphia’s ZSX Medical is a medical device company whose Zip-Stitch offers a rapid surgical closure platform. 

Source: BFTP/SEP
Writer: Elise Vider

Independence Blue Cross (IBX) and Thomas Jefferson University have embarked on a new collaboration "designed to boost innovation in healthcare across the region and help both organizations improve the quality and value of healthcare," said the partners in a statement.

The new Independence Blue Cross – Jefferson Health Innovation Collaboration will be jointly and equally funded up to $2 million by IBX and Jefferson. The program will be run through the Independence Blue Cross Center for Health Care Innovation and Jefferson's Innovation Pillar. 

According to Jefferson's Donna Gentile O’Donnell, details are still being worked out, but the effort will include an entrepreneur-in-residence program for clinicians and researcher who have promising discoveries that need more dedicated time and proof-of-concept support, including prototyping. 

The entrepreneurs-in-residence will also participate in education curriculum in entrepreneurship and an innovation engagement speaker series.The collaboration also plans to host health hackathons with participants working intensely to "hack" usable solutions to important healthcare issues such as reducing hospital readmissions, designing wearable devices that improve healthcare delivery and other cutting-edge technology applications.

"We anticipate that the entrepreneur-in-residence program will be a pivot point for moving new ideas forward and changing what we do and how we do it in multiple aspects of healthcare," enthused Stephen K. Klasko, president and CEO of Jefferson University and Jefferson Health.

Gentile O’Donnell says that specifics of the selection process are being worked out, but that for year one "we are looking for areas of practice research and clinical applications that may need proof of concept, but [whose hypotheses] point in the direction of improving care, decreasing care risk and decreasing hospital readmission."

Established in February 2014, IBX's Center for Health Care Innovation houses a wide range of initiatives and champions healthcare entrepreneurism in the region. Jefferson's Innovation Pillar is an initiative designed to elevate and encourage innovation as a mission for the university and the health system.

Source: Donna Gentile O’Donnell, TJU and Independence Blue Cross
Writer: Elise Vider