entrepreneurship : In The News

Small-production breweries can create demand for their products -- it might be a good lesson for future craft brewers.

Hill Farmstead, in the hamlet of Greensboro, produces just 60,000 gallons of beer annually. The beer is available for purchase only at the brewery and in roughly 20 Vermont bars. In addition, Mr. Hill sends 12 kegs to distributors in New York City and Philadelphia a few times a year...

From the start, his philosophy has been to make the best beer possible without pursuing what he calls “infinite, boundless growth.” He operates under the belief that beer is a perishable item, “just like lettuce or broccoli,” he says, and should be consumed locally, not shipped long distances.

Original source: The New York Times
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Philadelphia gets props for its proclivity for hands-on activities -- many of them available to tourists.

Philadelphia's diverse neighborhoods have been the bastion of artisans and craftspeople since their very beginnings. In the early 1700s, immigrants sought their fortunes in the one colony that didn't require a tithe to the Church -- Pennsylvania. By 1740, Philadelphia was the largest city in the colonies -- an engine of industry. One German observer wrote in 1754: "Pennsylvania is heaven for farmers, paradise for artisans and hell for officials and preachers." This "paradise for artisans" has gone through a rebirth in recent years, revitalizing Philadelphia's flagging neighborhoods and bringing a distinctive creative energy to each.

Venture capital in Philadelphia is on the upswing, especially compared with national trends. 

Nationally, the number of venture capital deals has decreased, according to a joint report released last week, yet Philadelphia is defying this trend. Philadelphia saw a 17-percent increase in total financing deals in 2012, while the national number of deals declined by 3 percent with an 18-percent decrease in total dollars invested. During the past 18 months, $1 billion has been invested in the Greater Philadelphia region companies by venture capitalists, angel funds and seed funds... Philadelphia’s status as a mecca for pharmaceutical and biotech companies as one impetus for venture capital firms to be interested in investing in the city. This years-long trend is making way for more venture capital investment in other fields as well.
Original source: The Daily Pennsylvanian
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Philadelphia Magazine put together a great list of the area's "coolest" startups. Flying Kite readers might recognize, well, most of them from our coverage of Philly's entrepreneurship scene.

Something big is happening. It’s not obvious, and it’s nothing tactile—but it’s most definitely a shift in the way we normally do things around here. It’s spurred on by a group of people who, above all else, want to create something that is their very own. With a whole lot of passion and tireless energy, they’re dreaming up new uses for technology, coming up with problem-solving products, and sketching out websites on napkins at coffee shops. Our research turned up more than 100 start-ups (whittled down here to the 20 coolest) that are happening right now. And while those companies may be small, what they’re part of is something huge: They’re changing the way business and culture look in Philadelphia. They’re ushering in an era in which our city is suddenly smarter, hipper, younger, more communal, more energetic and more creative than ever before. And this is just the beginning.
Original source: Philadelphia Magazine
Read the complete list here.

According to the Federal Reserve Bank of Philadelphia, manufacturing in the region was up in September -- firms reported a pickup in new orders, shipments and hiring.

The survey’s broadest measure of manufacturing conditions, the diffusion index of current activity, increased from 9.3 in August to 22.3 this month (see Chart). The index has now been positive for four consecutive months and is at its highest reading since March 2011. The percentage of firms reporting increased activity this month (36 percent) was greater than the percentage reporting decreased activity (14 percent).

The demand for manufactured goods, as measured by the current new orders index, increased 16 points, to 21.2. Shipments rebounded from last month: The current shipments index increased 22 points. The diffusion indexes also suggest that, on balance, inventories and deliveries were near steady this month, while unfilled orders increased slightly.

Labor market indicators showed improvement this month. The current employment index increased 7 points, to 10.3, its highest reading since April of last year. The percentage of firms reporting increases in employment (21 percent) exceeded the percentage reporting decreases (10 percent). Firms also reported a longer average workweek compared with last month, and the index increased 15 points, to 12.2.

Via The New York Times
Original Source: PhiladelphiaFed.org
Read the complete report here.

Rich Gorman talked to Technorati about the great potential for startups in Philadelphia.

This nonprofit organization places fellows in cities that aren’t traditional startup magnets, including Philadelphia. The New York Times profiled one young man who moved to Detroit via Venture for America.

Some people might look at what Brentt Baltimore did and shake their heads in disbelief. Last year, Mr. Baltimore, a graduate of Claremont McKenna College in California who majored in economics and finance, turned down a six-figure job at a Los Angeles area hedge fund. Instead he took a $33,000-a-year position at a venture capital firm in Detroit. This, even though he has about $38,000 in student loan debt.

Mr. Baltimore, 24, is part of a small group of recent graduates who are forgoing large salaries to work for start-up businesses in Detroit, Las Vegas, Cincinnati, Cleveland, New Orleans, Baltimore and Philadelphia and Providence, R.I. He chose his job with the help of Venture for America, a nonprofit organization that selects fellows to work in cities that aren’t the usual magnets for young college graduates. By August, 108 fellows will be working at 70 companies as part of the two-year program.

Original source: The New York Times
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The team behind the Franklin Fountain has transformed Shane Confectionery.

For the Berley brothers, it’s not just the candies that are nostalgic–it’s the experience, too. A look around the pristine storefront shows an antique cash register and pay phone, walls lined with memorabilia and ephemera of eras gone by, and apothecary jars stocked with penny candy (think Abba Zabba and Bit-o-Honey). The duo, along with head confectioner Davina Soondrum, use period tools and equipment like hand-fused copper kettles and bowls heated over a manually-fired gas stove, to keep the production experience as authentic as possible.

Via The New York Times.

Original source: Sweet Paul 
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Paul Downs, founder of Paul Downs Cabinetmakers, wrote about his generous employee compensation philosophy on the New York Times' small-business blog.

I don’t want that kind of relationship with my employees, and I don’t want to deal with constant turnover. My people are smart and hard-working and that’s who I want to spend my life with. I’d rather err on the side of paying them too much than have to deal with grumbling and turnover. But if I were running a business where turnover is expected — an ice-cream stand in a summer resort, for example — I’d have a different attitude. I’d be a lot more interested in my own reward than the long-term prosperity of my workers. And that would make sense, for that situation.

Original source: The New York Times
Read the entire column here.

Philly startup Curalate is profiled in the New York Times' small business column, "You're the Boss."

But the idea that rose to the top was a platform that allows companies to measure the impact of Pinterest and other visual social media. They called the company Curalate, and they introduced it in beta in March 2012 and for real two months later. Mr. Gupta said the rise of Pinterest last year looked similar to Twitter’s early days with brands "falling over themselves to get on board but reluctant to commit until they had some way to measure their presence on the platform."

Enter Curalate, which created a way to listen and measure visual conversations. The company’s algorithm recognizes images using pixels and then matches it to a brand. "The platform tells companies the conversations people are having about their product," Mr. Gupta said.

For more on Curalate, check out this story in Flying Kite.

Original source: The New York Times
Read the full story here.

Ami Kassar of MultiFunding, a company based in suburban Philadelphia, penned a piece in the New York Times offering advice for business owners looking for capital.

The best advice that I think I can give anyone in the hunt for money is to get organized early, do your research, identify your targets for financing, and pursue them in a focused and methodical way. As small-business owners and entrepreneurs, we often try throwing as much as we can against the wall to see what sticks. But when it comes to looking for money, this approach can consume time and is unlikely to end happily. Still, I see it all of the time.

First Round Capital's Dorm Room Fund, an investment fund helmed by Philadelphia college students, earns praise in the New York Times. Starting this spring, the Fund is going nationwide -- starting in New York.

New York City’s Dorm Room Fund will follow the model established in Philadelphia, Mr. Barnes said. Student investors will seek out promising ventures among their peers and present the most exciting projects to the investment team. Though partners from First Round Capital will offer advice, students will lead the decision-making process. First Round does retain a veto right, Mr. Barnes said, but “we would not use it unless we were legally or ethically required to do so.”
For more on the Dorm Room Fund, check out this story in Flying Kite.

Original source: The New York Times
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Bilenky Cycle Works, the legendary Olney custom bike builders headed up by Steve Bilenky (and his beard), is the subject of a wonderful short film by Bicycling magazine, directed by Andrew David Watson.

Long before the resurgence of "handmade everything" Stephen Bilenky started a career as a custom bicycle builder. 30 years later, Stephen is still creating works of art in his gritty north philadelphia workshop.

Original source: Bicycling magazine
Click here to watch the mini-documentary.

First Round Capital's Dorm Room Fund is going national, starting in New York City. The program funds student-run startups selected by students. Flying Kite reported on its local success in December. 

"We’ve heard from several entrepreneurs claiming that it was 'much harder to raise our first $25,000 then our next $2 million,'" wrote [founder Josh] Kopelman."Given this, I just wonder how many amazing companies we would be talking about today had they received that first small check. Instead, I hear stories about how amazing students, under the giant burden of college debt, abandoned their startup dreams and chose to take full-time positions at established companies."

Original source: The Epoch Times
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The Navy Yard earns some national attention from ABC News for its exciting work fostering business, entrepreneurship and green technology.

"There was a lot of uncertainty early on," said John Grady, president of the Philadelphia Industrial Development Corp. "People weren't sure what we were going to do to replace this engine of activity that was there."

Last week, The Navy Yard marked its 10,000-employee milestone and unveiled an update to its 2004 master plan that is forecasting 1,000 apartments, more parks and open space, more new construction and continued adaptive reuse of Navy-era industrial buildings.

Original source: ABC News
Read the full story here.