Carmel tech firm owner Ron Brumbarger grows his own talent, and now he wants to help other businesses do the same.
Brumbarger on Thursday unveiled plans for his startup Apprentice University, an alternative to what he calls the 11th commandment: Thou shalt go to college.
“We think there’s a better way,” he said at the kickoff event at Launch Fishers.
The program is still in its formative stage, but Brumbarger said he has a couple dozen local employers interested in the idea of providing on-the-job training to Apprentice U. students, who will be paid for their work.
Students enrolled in the 30-month program will be given a series of assignments—and mentors—within the business network, and Brumbarger said they will leave with the real-world skills employers need. He hopes to start making matches by the end of June.
Brumbarger came up with the idea after growing frustrated by the effort required to get traditional college graduates up to speed at his Web development firm, BitWise Solutions.
“I’m not interested in new grads,” he said. “I’ll grow my own every day of the week.”
Apprentice U. will not award degrees, which Brumbarger insists have become more of a rite of passage for students than a value proposition. He cited the prevalence of unemployed and under-employed college graduates as proof.
“What other thing would you spend $100,000 on and not get a warranty?” he said.
In addition to the professional assignments, Brumbarger said students will take a “handcrafted” array of online courses like logic, rhetoric and entrepreneurship. The only requirement for everyone: an old-school acting class, which he said will help students become comfortable in the different roles they will be asked to play in life.
Brumbarger has experience developing young talent. His 7-year-old BitWise Fellows program allows high school students to run their own Web development firm, handling everything from sales and marketing to product delivery. The companion On Deck programis targeted at even younger students.
Fellows President Isabella Penola is a home-schooled sophomore who manages a staff of about 10. The 15-year-old Zionsville resident is an aspiring writer, but she jumped at the chance to expand her horizons. It is her first job.
“It is a really unique opportunity to get some real-world experience,” she said.
Brumbarger mentors students, but he takes a hands-off approach to the business.
“I don’t clean up after them or bail them out,” he said.
He hasn’t had to: The BitWise Fellows business unit posted a $2,200 profit on $6,000 in first-quarter sales. Annual revenue is close to $30,000.
Fellows “graduate” from the program when they finish high school, but several have landed part-time jobs at BitWise Solutions.
Venture Club News
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e-mailIt seems fitting that the America Invents Act spurred Indianapolis product-development pro James Burnes to conjure up a business that helps companies manage their intellectual property portfolios online.
PatentStatus launched in January 2012—mere months after President Obama signed the legislation updating U.S. patent law. Among its changes: a provision allowing patent holders to use a web address to mark protected products. Traditionally, individual patent numbers have been imprinted on the products themselves.
Burnes recognized the opportunity and enlisted the help of a development team from local software firm WDDinc. They built an online platform capable of handling millions of patent records, and Burnes set out to sell the idea to patent attorneys.
He scored an early win, prevailing in a startup competition with a juicy prize: tickets to watch the 2012 Super Bowl with Startup America CEO Scott Case. Burnes got feedback on his idea from Case (who was Priceline.com’s founding chief technology officer) and access to hundreds of decision makers in Indianapolis for the big game.
A year later, PatentStatus is still counting victories—the most recent coming March 1, when the company was named the Entrepreneurship Advancement Center’s Top Emerging Business for 2013. The Fishers-based not-for-profit supports innovation.
Burnes is just as proud of another achievement: The company is making money.
“We are cash-flow positive,” he said. “There’s still a lot of room to grow, but that’s huge.”
PatentStatus has landed a number of out-of-state clients in the consumer products, life sciences and medical-device industries, he said. It also has a robust pipeline of prospects including global brands such as Briggs & Stratton, Kimberly Clark and Caterpillar.
While virtual patent marking remains the firm’s primary service, Burnes has found plenty of demand for its patent-tracking platform, which helps companies understand how they are using existing patents.
“That’s the icing on the cake,” Burnes said.
Burnes financed the startup himself, but took Case’s advice and found investors to help grow the business. He declined to share specifics, saying only that he raised “more than six figures” from a number of private investors.
“I feel good about the future,” he said.
Bingham Greenebaum Doll LLP is pleased to welcome Kate E. Beatty to the firm’s Indianapolis office. Beatty joins the firm’s Environmental and Natural Resources Practice Group after earning her law degree from the Indiana University Robert H. McKinney School of Law. Her practice focuses on environmental compliance, permitting and enforcement issues for industrial, commercial and governmental clients.
“We are pleased that Kate has joined the firm,” said Mary Solada, Managing Partner of the firm’s Indianapolis office. “Kate’s education and certificate in environmental and natural resources demonstrates her depth of understanding in this niche field. Add to that her experience working in Indiana’s legal community, and we’re given a great opportunity to better serve our clients.”
Beatty, a Thorntown, Ind. native, earned her undergraduate degree from Purdue University in 2008. While at Indiana University Robert H. McKinney School of Law, she earned a certificate in environmental and natural resource law. Kate’s education allowed her several opportunities to gain additional legal experience by working with the Indiana Prosecuting Attorneys Council, the Indiana Economic Development Corporation and the IUPUI Athletic Department’s NCAA Compliance Department.
Bingham Greenebaum Doll LLP is a progressive business law firm with nearly 225 professionals serving regional, national and international clients. For more information, visit http://www.bgdlegal.com.
Bingham Greenebaum Doll LLP is pleased to announce that the firm has been named to BTI Consulting Group’s Client Service A-team 2013. The BTI Client Service A-Team is the only law firm ranking that is based solely on unbiased feedback from clients who recognize firms by name without prompting.
“We are honored to be included as part of this elite list,” said Tobin McClamroch, Co-Chairman of the firm. “This honor demonstrates our efforts to provide our clients with quality legal service and meet each of our clients’ evolving needs.”
The BTI Client Service A-team is an elite list limited to law firms considered by the BTI Consulting Group’s survey to be the absolute best in client service. To be included as part of the A-team, firms must be recognized by one of the firm’s clients, by name and without prompting, as delivering client service excellence. The list is derived from a fact-based, comprehensive analysis of 17 different areas that drive superior client relationships and relies on one-on-one interviews over a period of 12 years. Research and analysis for the 2013 annual report was compiled from more than 240 independent interviews with corporate counsel, with more than half of the interviews being with Global 500 and Fortune 1000 companies.
Bingham Greenebaum Doll LLP is one of the 332 law firms nationwide to receive recognition as part of the 2013 A-Team. For more information on the firm’s A-Team inclusion, please visit http://www.bticlientserviceateam.com/.
Bingham Greenebaum Doll LLP is a progressive business law firm with nearly 225 professionals serving regional, national and international clients. For more information, visit http://www.bgdlegal.com.
BioCrossroads has announced the initial investments through its Indiana Seed Fund II. Indianapolis-based algae cultivation technology company Algaeon and oncology drug developer Esanex have received support from the $8.25 million fund.
January 10, 2013
News Release
Indianapolis, January 10, 2013 – BioCrossroads Indiana Seed Fund II has made its first two investments: Esanex, a company developing an oncology drug, and Algaeon, which has developed an algae cultivation technology for use in the nutraceutical and micronutrient markets. The Indiana Seed Fund II is an $8.25 million early-stage fund focused on identifying, creating and developing the next generation of leading Indiana-based life sciences companies.
“These first two investments are indicative of the depth and breadth of Indiana’s life sciences sector as well as the diverse, but outstanding talent of our entrepreneurial community,” said David L. Johnson, President and CEO of BioCrossroads. “Esanex demonstrates the strengths and promise of Indiana’s drug discovery and development sector, and Algaeon highlights innovation in the agricultural biotech area.”
Esanex is developing a novel therapeutic in oncology. The company’s primary focus is centered on a specific Hsp90 inhibitor, SNX-5422, which “deactivates” the ability of tumor cells to grow and survive. The Hsp90 inhibitor is the result of a discovery from Serenex, a former Lilly Ventures portfolio company. The $500,000 investment from Indiana Seed Fund II, which is part of a Series A financing, will be used to complete a Phase 1 study in patients with solid tumors and to conduct multiple Phase 2 trials.
“The clinical development of Hsp90 inhibitors is an active and promising area in cancer research,” said Steven E. Hall, CEO, Esanex. “The investment from Indiana Seed Fund II will enable us to accelerate our progress by evaluating its effectiveness in patients with a variety of tumor types.”
Algaeon has developed patent-pending algae cultivation technology that produces specific algae species used in the nutraceutical and micronutrient markets as human supplements as well as in animal and fish feedstocks. The $250,000 investment from the Indiana Seed Fund II will enable the Company to expand operations and to produce products such as Astaxanthin, Beta Glucan, and others used as food supplements to promote health and disease prevention for humans and animals.
“Thus far, Algaeon’s funding has been from its two founders and angel investors. Having BioCrossroads’ investment and additional support from their team and network will be transformative for our company. The markets for our high-value algae derivative products have been growing at significant rates, and the investment will advance our entry into these high-demand areas,” said Paul DeLacey, President and CEO, Algaeon, Inc.
Algaeon was a winner of BioCrossroads’ inaugural New Venture Competition, presented at the BioCrossroads Indiana Life Sciences Summit in October 2012.
About BioCrossroads
BioCrossroads (www.biocrossroads.com) is Indiana's initiative to grow, advance and invest in the life sciences, a public private collaboration that supports the region's existing research and corporate strengths while encouraging new business development. BioCrossroads provides money and support to life sciences businesses, launches new life sciences enterprises (Indiana Health Information Exchange, Fairbanks Institute for Healthy Communities, BioCrossroadsLINX, and Datalys Center), expands collaboration and partnerships among Indiana's life science institutions, promotes science education and markets Indiana's life sciences industry.
About the Indiana Seed Fund II
The $8.25 million, return driven Indiana Seed Fund II was launched in April 2012. Managed by BioCrossroads, the Fund is a follow-on to the $6 million Indiana Seed Fund I. The Fund makes investments up to $1 million in early-stage biotechnology, pharmaceutical, medical device, diagnostic, ag-biotech and health information technology products and platforms.
Source: BioCrossroads
New Year's Eve is known for champagne toasts at midnight, but sparkling wine is far from your only beverage choice. This year, try ringing in the new year with a beer -- and we don't mean the same old mass-produced brew.
Instead, the options include everything from locally brewed seasonal beers to hard-to-find international splurges.
Seasonal beers
At most microbreweries, this weekend is the last chance to sip seasonal brews, such as Triton Brewing Co.'s Gingerbread Brown and Muletide beers.
The Muletide is a Baltic porter aged in bourbon barrels for five months and infused with Bjava coffee, while the Gingerbread Brown is a brown ale with gingerbread spices, said Jon Lang, director of brewing operations for Triton.
"(The Gingerbread Brown) has a sweet, spicy creaminess to it," he said. "You don't get too many spiced beers out there like that."
Another brew to catch while you can is Brugge Brasserie's Reindeer Games, a dark Belgian ale infused with holiday flavors such as cinnamon, coriander, nutmeg and allspice.
"You're going to get a lot of the Belgian characteristics, but it's slightly muted because it's a spiced ale," said Brugge owner Ted Miller.
At Flat 12 Bierwerks, the seasonal "12 Beers of Christmas" brews, such as Glazed Ham Porter and Chestnuts Roasting Brown Ale, are already gone. Instead, look for the Winter Cycle, a double IPA based on the brewery's Half Cycle IPA, one of its house beers.
Made with eight different hops from three continents, the Winter Cycle was created to celebrate the brewery's second anniversary. It will debut at the anniversary party Jan. 5, and it will be available -- on draft only -- for about a month.
Other brews with a seasonal twist include Fountain Square Brewery's Count Nibula Chocolate Milk Stout, Upland Brewing Co.'s Winter Warmer Barley Wine and Bell's Christmas Ale.
"The Bell's Christmas Ale is a yearly favorite for everyone," said Jordan Schuette, beer manager and buyer at Carmel's Vine & Table. "It's one that most people pick up once a year, if not more."
Splurges for special occasions
Another option for New Year's Eve is to splurge on a memorable special-occasion beer.
Goose the Market stocks a perfect example: a 3-liter bottle of Chimay Grand Reserve. The bottle costs $100 and is so big that two people are needed to pour it, but libation and narration manager Corrie Quinn calls it one of the best beers on the planet.
"Chimay Grand Reserve . . . is one of the wonders of the beer world," she said. "It's textbook Belgian, strong and big, but finessed. At the same time, each glass brings a complexity that's unmatched."
Big spenders also can try the Scaldis Prestige de Nuits, a Belgian ale aged in French oak barrels. It's available at Vine & Table for about $50 a bottle.
"It's a good gift for someone who is a big beer drinker, because it's not something they'd probably buy for themselves," Schuette said.
Or try Bruery's Smoking Wood imperial rye porter, a limited-production beer aged in whiskey barrels and smoked. Vine & Table has it in stock for $23.99 a bottle.
Or, if you want to add a more personal touch to your New Year's Eve celebration, Schuette recommends JW Lees' limited-edition Harvest Ale (about $11 per bottle). Each bottle is dated with the year it was brewed, and Schuette said customers often buy them to commemorate special anniversaries.
"It ages so well that you can just sit on it and do whatever you want with it," Schuette said. "Most people save it to enjoy on a special occasion."
FOR IMMEDIATE RELEASE
Dec. 19, 2012
BLOOMINGTON, Ind. -- While the nation waits for President Barack Obama and congressional Republicans to reach a deal on the so-called fiscal cliff, the Leading Index for Indiana reflects the sentiment of many Hoosiers who are holding their collective breath economically, anticipating what will come next.
After having edged up for the past five months, the LII stalled in December, remaining at November's revised reading of 100.3. The components measuring future activity in the auto sector were down slightly, and the Purchasing Manager's Index also tumbled into the economic contraction zone.
"To balance the negative pressure, the Dow Jones Transportation Average increased marginally and home builders' pessimism about their future prospects is dissipating. Last month we highlighted that consumers and businesses held two drastically different views of the near-term economic future -- consumers positive and businesses negative. Lately, consumers seem to be moving toward the business sentiment," said Timothy Slaper, director of economic analysis at the Indiana Business Research Center in Indiana University's Kelley School of Business.
The Indiana Business Research Center produces the LII.
While the Conference Board's measure of consumer confidence rose in late November, the preliminary Thomson Reuters/University of Michigan's Consumer Sentiment Index fell a jaw-dropping 7.9 points from November's final read of 82.4.
Meanwhile, Small Business Optimism -- already in recessionary territory -- plunged over a cliff. The National Federation of Independent Business' Small Business Optimism Index dropped 5.6 points in one of the lowest readings in survey history.
"Not only are small business owners concerned about the fiscal cliff, but the advent of higher health care costs and the endless onslaught of new regulations have eviscerated any confidence that Washington considers the needs of small businesses," Slaper said. "Based on the NFIB survey, nearly half of owners are now certain that things will be worse next year than they are now. The survey results had the NFIB chief economist wondering if this is the new normal.
Tim Slaper
"As Washington edges ever closer to the fiscal precipice, one might be forgiven to think that the potential of falling off the cliff would focus the minds of congressional leaders and the president. It appears that some progress is being made, but the fiscal clock is moving rapidly toward midnight," he added.
"It is something of a relief that the discussions are past the phase in which Republicans consider the Democratic proposal ridiculous and Democrats reciprocate the sentiment. There may be reason for some optimism that an agreement that would do little harm to the fragile economy and make headway in controlling the exploding deficit is in view. That said, recall that in previous negotiations over the debt ceiling in the summer of 2011, Congress and the president were close to a deal, but it collapsed in the final hours.
"There are, in effect, 535 little presidents in Congress who need to be convinced that the fiscal cliff deal is in their individual interest. In other words, it may not be over even when it is over," he said. "It's not the fall that kills you. It is the sudden deceleration at the end."
Slaper notes that views about the potential impact of the cliff vary. For example, Morgan Stanley said it could affect gross domestic product by as much as 5 percent. The Congressional Budget Office projected that first-quarter growth in 2013 would drop 0.5 percent and recover later in the year.
The IU Center for Econometric Modeling Research is more in line with the CBO numbers. The differences may reflect how the timing of the austerity shocks, namely the government spending cuts and reductions in disposable personal income, play out. But they may also reflect how the models incorporate the policy uncertainty shocks.
"Many corporations have likely made their hiring, investment and earnings distribution plans based on their expectations of how, and when, the fiscal cliff will be resolved. Given the state of CEO sentiment -- last gauged as more pessimistic according to the Conference Board -- it is doubtful that those plans include hiring more workers or investing in expanding production," Slaper said.
"Many expect a protracted tug-of-war in early 2013 with fiscal cliff mini-fixes, for example, a temporary extension of middle-class tax cuts. In such a case, the deceleration at the end won't be as sudden, but it may be more drawn out," he added.
Slaper quipped that in addition to taxes and death, another thing is certain: uncertainty.
"Even if politicians can talk themselves off the fiscal cliff, policy and economic uncertainty may be sufficient to sap the economy of any momentum," he said.
Drivers of change
The National Association of Home Builders/Wells Fargo Housing Market Index posted a two-point gain to 47, the highest level the index has attained since April 2006. Builder confidence has improved dramatically in recent months, and this marks the eighth consecutive monthly gain. Builders are seeing increased demand for new homes as inventories of foreclosed and distressed properties have begun to shrink.
The national HMI has yet to break the 50 mark -- the point where an equal number of builders view sales conditions as good versus poor -- but the Midwest index now stands at 53.
The Institute for Supply Management's Purchasing Managers Index, after a brief stint in the economic expansion zone, dropped to 49.5 from 51.5.
November auto sales exceeded the 15 million units mark, almost reaching 15.5 million units, and was almost 15 percent higher than sales last year. Year-to-date sales are up almost 14 percent.
While the sales numbers may be robust, the auto sector component for the LII is not. Unfilled orders for motor vehicle bodies, parts and trailers fell about 1 percent, putting downward pressure on the LII.
The transportation and logistics component of the LII -- the Dow Jones Transportation Average -- after dipping in early November, recuperated later in the month, improving less than 1 percent.
The Federal Reserve recently announced a fourth phase of quantitative easing -- like QE3 but with a larger spigot -- and precise thresholds that will guide policy. The Fed will continue to pursue its current course of expansionary monetary policy until inflation resurfaces or when unemployment dips below 6.5 percent (6.5 percent is not a goal, but an indicator of an economy healthy enough to absorb restrictive monetary policy).
"All this to say that the interest rate spread is something of a zombie component of the LII. Under continuing Fed policy, the spread does little to indicate the direction or strength of future economic activity in the state," Slaper said.
About the Leading Index for Indiana
The LII, developed by the Indiana Business Research Center, is designed to reflect the unique structure of the Indiana economy. It is a predictive tool that signals changes in the direction of the economy several months before the economy has changed. In contrast to economic forecasts, which use sophisticated statistical models to foretell particular levels for a wide variety of economic activities and outcomes in the future, a leading index is a simple construct that indicates a general direction of future economic activity expected in the next five to six months.
Lt. Gov. Becky Skillman has her next job lined up: president and chief executive officer of a southern Indiana economic development group.
Skillman, who is wrapping up her eighth and final year as lieutenant governor to Gov. Mitch Daniels, will begin her new position on Feb. 1 as head of Radius Indiana, an eight-county economic development cooperative.
The group represents her home county of Lawrence, along with Daviess, Dubois, Crawford, Greene, Martin, Orange and Washington counties. It was formed in 2009 to help boost job creation in that southern Indiana area.
Skillman, who was an Indiana senator from 1992 to 2004, said in a statement that “there has never been a more exciting time to build a globally competitive economy in the region.”
She cited the expansion of Interstate 69 as a route to potential growth for the area. Daniels recently opened a 67-mile stretch of the interstate from Evansville through Daviess County.
Skillman succeeds the group’s former president, R.J. Reynolds, who died unexpectedly last month.
Asked if the state’s one-year “cooling-off” period would apply, Skillman spokesman Tyler Stock said the lieutenant governor was seeking advice. The cool-off provision bars former state employees from contacting or lobbying the state on matters they were directly involved with in government
“Of course, she’ll abide by the ethical standards of this administration and the law,” Stock said.
Radius Indiana is funded with a contract from the Indiana Economic Development Corp., the state’s economic development arm. The current contract, which runs from May 2012 through June 2013, is for $466,662. Ken Sendelweck, chairman of the Radius Indiana board of directors, said Skillman’s salary would not be disclosed. He said the money to fund Radius comes from a portion of casino admissions taxes and was earmarked by the legislature to boost economic development.
Sendelweck said Skillman was chosen for her “in-depth experience in energy, commercial defense, tourism, advanced manufacturing, agriculture and other key issues affecting the eight-county region of Radius Indiana, coupled with her experience in leading international trade missions.”
Skillman and Daniels, who is to become president of Purdue University, leave office Jan. 14, when U.S. Rep. Mike Pence will be sworn in as Indiana’s 50th governor.
Call Star reporter Mary Beth Schneider at (317) 444-2772.
FOR IMMEDIATE RELEASE
Dec. 4, 2012
BLOOMINGTON, Ind. -- Indiana University's Kelley School of Business is co-sponsoring a research conference Dec. 13 and 14 on small business finance at the European Central Bank in Frankfurt, Germany.
European Central Bank/M. Thelen
The current financial crisis and recessions in Europe and the United States have significantly heightened interest in small business finance, said Gregory F. Udell, the Chase Chair of Banking and Finance at the Kelley School and co-organizer of the conference.
There is considerable concern among policymakers that small firms everywhere are vulnerable to a "funding gap" -- the inability to obtain sufficient external funding to finance ongoing operations and invest in valuable new business opportunities.
The conference is expected to attract about 60 scholars and policymakers from around the United States, Asia and Europe.
The Kelley School and the European Central Bank are co-sponsoring the conference with the Centre for European Policy Research, a leading economic think tank; and the Review of Finance, the journal of the European Finance Association.
"Not surprising, small business is an important policy issue in every country," Udell said. "As important as it was in our election, certainly in terms of the rhetoric, it is if anything more important in Europe, because the fraction of business that runs through the small- and mid-sized company sector is even bigger in Europe than it is in the United States."
Depending on one's definition, about 40 to 45 percent of jobs in the United States are at small businesses. In Europe overall, its share of the labor force is larger, but it varies by country.
Previous research indicates that the funding gap may be related to the opacity of small firms, and that this problem has become more acute during the crisis.
Gregory Udell
"It's more difficult, for example, for lenders to see what's going on inside a small business, understand how risky it is, and monitor that company as opposed to a large company," Udell said. "That's because there's a lot more information available about large companies than small companies ... which are harder to understand by an outsider, such as a venture capitalist or a banker."
Udell is co-organizing the conference with Steven Ongena, a professor in the Tilburg School of Economics and Management in the Netherlands; and Alexander Popov, research economist at the European Central Bank.
Nine papers will be presented at the conference and published in the Review of Finance. Topics will include:
- How do banks underwrite loans to small businesses?
- How does loan underwriting vary across banks and countries?
- How do shocks such as this financial crisis affect small business access to finance?
- How have innovations such as small business credit scoring affected small business finance?
- What is the effect of the European Central Bank's standard and nonstandard measures on access to finance by the euro area corporate sector?
More information about the conference is available on the European Central Bank's website.
Editors: To arrange for an interview with professor Udell, contact George Vlahakis at 812-855-0846 or vlahakis@iu.edu. Registration for the conference is closed.
