More than 350 Maryland entrepreneurs attended the first statewide Entrepreneur Expo, held on Nov. 14 at the BWI Airport Marriott in Linthicum Heights.
Presented by the Columbia-based Maryland Technology Development Corp. (TEDCO) in partnership with leading business development organizations, the expo served as one of 10 featured events in the country to be scheduled as part of Global Entrepreneurship Week, which was held Nov. 14 to 20.
Maryland Department of Business and Economic Development (DBED) Secretary Christian Johansson was on hand to open the event. “Maryland is a power player in the country’s entrepreneurial scene,” he said. “This expo was the perfect forum for our state’s entrepreneurs to further the conversation on growing Maryland’s economy.”
The day’s agenda included a selection of programming tracks focused on subjects ranging from mentoring and advising, technology transfer and commercialization, financing and other topics. Attendees also heard remarks from and panel discussions among some of the state’s more well-known entrepreneurs, investors and business advocates.
Capital Topic
The topic of capital received ample attention in the Expo’s breakout sessions. And despite the lagging economy, panelists had some encouraging news: Money may be tight, but it’s still available. The trick to finding it — or making it last — is the same as it ever was: Look in the right place, and be creative when it comes to using it.
Art Jacoby, managing partner of Maryland Cyber Investment Partners, advised entrepreneurs to seek both the right kind of capital and the right source. He also stressed the importance of assembling the right team before seeking capital.
“If you don’t have an investment-grade CEO, it’s very unlikely you’re going to get funding,” Jacoby said. “Surround yourself with subject matter experts that understand your market: consultants, CEOs, attorneys, accountants, bankers, professional CFOs.”
As to funding sources, Jacoby endorsed the viability of angel investors over the much-hyped venture capital route.
“Last year there were 1,001 venture capital investments [amounting to] $22 billion made in the entire United States, and in my entire career I’ve been involved in two venture capital investments with clients,” he said. “The chances of getting a venture capital investment are extremely low.”
By comparison, he noted, angel investors invested $50 billion during the same timeframe. “They made 35 to 40 times more investments than venture capital firms and four times the dollars invested by venture capital firms,” he said. “There is plenty of capital out there; you can get reasonable terms if you are investment grade.”
Creative Resourcing
Speaking candidly on the art of survival, a panel of Maryland entrepreneurs presented a behind-the-scenes look at some of the challenges they’ve had to overcome and the creative ways they dealt with them.
“When you have a need to start making money you become real focused,” said Jayfus Doswell, president and CEO of Juxtopia, which produces a wearable heads-up display that trains and guides the wearer through complex tasks, such as surgical or manufacturing procedures. He used collaboration and collaborative funding to turn universities into strategic partners, each working on different aspects of Juxtopia’s finished product.
“Software engineers cost a lot of money,” he said, noting that hiring students turned out to be a mutually beneficial arrangement for his company.
The same strategy worked for Steve Kubisen, CEO of Seguro Surgical, a medical device venture, who advocated part-time hiring arrangements to dampen the funding burn rate.
“One of the benefits of being a later career entrepreneur is you have a little bit of finance of your own,” Kubisen said. “The CFO and I cofounded this company, and each put $150,000 of our own cash into it. A lot of people can’t do that.”
He also found the economic downturn working to his favor. “It’s easier to start up when times are tough [because] it’s easier to find people [to work for you],” he said.
Robert Neelbauer, CEO and chair of SortIQ, which provides recruiting software for employers, said he eased into entrepreneurship through a hiring agreement with a software startup company. “I started working for them, but told them I was going to quit not too long after and become a consultant,” he said.
Innovation
The highlight of the Entrepreneur Expo was an interactive plenary session with Bryan Sivak, newly minted chief innovation officer for the state of Maryland. The plenary session was moderated by digital lifestyle expert and talk show host Mario Armstrong.
According to Sivak, his new position focuses on encouraging government employees at all levels to embrace innovation in the workplace as well as working to create a more entrepreneurial environment throughout the state.
“I can pick and choose the specific battles I fight, assuming, of course, that they fit the gubernatorial priorities,” Sivak said.
Currently, he said, his office is considering initiatives to increase the rate of technology transfer from academic and research institutions in the state.
“We get a lot of research and development money here and have a decent climate for entrepreneur activity,” he said, “but the question is, ‘Why are we not commercializing more of that technology?’”
Constructive Thoughts
During the plenary session, Sivak received a number of suggestions from entrepreneurs attending the event. Heather Sarkissian, chief business development officer for Community Analytics and founder of the BmoreSmart networking group, recommended an online exit interview web site for businesses that leave the state.
“Part of the challenge of figuring out what’s going to move the needle is taking an audit of why people are leaving,” she said.
Malaika Simmons, president and CEO of Compass Global Solutions, pointed out the need for a program to better tie together the state’s incubators and accelerators and better identify the focus of each and improve networking opportunities.
Along the same line, Startup Baltimore blogger Mike Brenner advocated for a statewide publication covering technology and the startup ecosystem in the cities or in the state.
“Tech Crunch on the West Coast, for example, covers a global space, but a lot of their presence is Silicon Valley and what’s going on out there,” he said. “I think there needs to be a good stand-alone resource that connects the ecosystem and culture together.”
Speaking to the enthusiasm with which the first Entrepreneur Expo was greeted by the state’s entrepreneurs, TEDCO President and Executive Director Rob Rosenbaum termed it an enormous success.
“The conference provided entrepreneurs from across the state with a rare opportunity to connect face-to-face to share important business best practices and learn about proven models of success,” he said. “As evidenced by the solid turnout and the energy of the event, Maryland has a bright entrepreneurial future.”
