From our first humble days with only one employee, through a very quick ramp up to a fully staffed office, and ending in third quarter 2009, Rocket Venture’s clients have received almost $28M in investment, grants, sales, licensing agreements, and joint development efforts.  That’s not just a couple of “lucky” entrepreneurs – that number represents the success of twenty-six different early-stage companies!  That doesn’t count any money from the State of Ohio, either, such as grants from the Alternative Energy Program.  We only measure how much “New” money comes into these Ohio businesses.  It also doesn’t include other deals in the works, which we expect will dramatically increase that total.

Why is this important and what should it mean to you?  Well, if you are an entrepreneur with a technology idea, it means that we have a proven track record of success and you should talk to us to see if we can help you.  If you are looking to relocate a business, it means that Northwest Ohio is on the upswing and will continue to be a great place to be based.  If you are a tax-payer, it means that we have taken $5.5M of a Third Frontier bond issuance and leveraged a 5.1 return.

Even though these are great numbers, some of the impact on Northwest Ohio is a little tougher to see.  We are accustomed to hearing about “new jobs” and large existing companies moving here from out of the area.  We don’t often hear about or think about how companies get started and what needs to happen before an entrepreneur can even hire the first person.  But that is what Ohio’s Third Frontier Entrepreneurial Signature Program is designed to do – help position companies for that initial step and continued growth.  We are taking the lessons from the start of the glass industry in Toledo, the auto industry in Michigan, and more recently personal computer industry in Seattle in order to apply them here today.  We are creating industries from small groups of related technologies.  Those industries will take hold, grow, expand, and grow some more.  It will take some time to see the full effects of our efforts today, but the point is that these numbers indicate we are on the right track. 

Craig Ortega
Program Manager

Tags: Add new tag, Economic Development, Money, ODOD, Ohio, Starting a business, Strategy, Technology, Third Frontier Posted in Current Ventures, News, Ohio, Technology | Comments Off

At Rocket Ventures, we focus on technology, entrepreneurs, growth and opportunity.  But we also offer some intangibles that we can’t take credit for, but we sure do leverage.  Our location is arguably the top of that list.  Ohio is known as the State of Perfect Balance.  As the Ohio Business Development Coalition states on their website ohiomeansbusiness.com, it is the place “where world class companies and those who aspire to be don’t have to compromise professional or personal satisfaction in pursuit of their ambitions. The same goes for their families and the employees whom they lead. The Great State of Ohio offers business and industry many unique qualities that contribute to better balance and, ultimately, optimal business performance.”  What about Northwest Ohio specifically?  What makes us so special?

The largest city in NW Ohio is Toledo, with a population of about 400,000 in the metro area.  Owens-Corning, Dana, Pilkington-North America and Owens-Illinois are headquartered and Fifth Third, Huntington, Key, and National City banks have major operations in the Toledo Metro area.  This critical mass supports a minor league baseball team and has enabled a new sports arena to be built (officially opening in just one month) that will house an East Coast Hockey League team and an Arena Football 2 team as well as countless music, sports, and entertainment events.  The ballpark and the arena combined with the Seagate Convention Center and the Valentine Theatre anchor an entertainment district in the heart of downtown.  Toledo also boasts about its Art Museum, thought of as one of the top five in the country, and its Zoo, one of the world’s most complete with over 760 species.  Even with this draw, we don’t experience some of the problems that larger cities do, such as traffic and crime.  Our highways and surface streets allow for such good flow that it is often joked we don’t have a rush hour; we have a rush “half-hour.”

Findlay and Lima, each with a population around 40,000, are tremendous assets for the region.  Findlay and Hancock County offer one of the more comprehensive community planning and economic development efforts available.  In fact, more than fifteen high-profile companies such Marathon, Whirlpool, and Cooper Tire are present because of it.  Lima has been home to many manufacturing companies, serving the locomotive, automotive, and home appliance industries among others.  Both offer cultural and entertainment outlets, from the Arts Partnership of Greater Hancock County to the Lima Warriors semi-pro football team to Findlay’s Riverside Park band shell.

Despite our size and corporate history, we haven’t lost our honest, straightforward nature or our traditional values such as generosity and strong work ethic.  We still appreciate a job well done and will honor a commitment.  In fact, Lima was once named among the Top 10 places to raise a family in the U.S. by Reader’s Digest due to the area’s strong sense of community, great business and entertainment opportunities, and a rewarding quality of life that’s easy on the pocketbook.  America’s Promise Alliance and Capital One announced Findlay as one of the 100 Best Communities for Young People in 2007.

I would be remiss if I didn’t mention the Lake Erie shoreline and islands of Ottawa County or the city of Defiance, which was recognized for the seventh consecutive year by Site Selection Magazine as one of the Top 100 small towns in the US.  As the midpoint between Fort Wayne, Indiana and Toledo, it is experiencing growth and investment due to the “Fort to Port” project.

So, if you are an entrepreneur, and you have an idea, we would love to talk to you.  We can offer advice, coaching, management expertise, and maybe grants or investments.  But we can also help you build a business in one of the best possible places – Northwest Ohio.

Craig Ortega
Program Manager

Ignite! Development Fund

One of the most difficult aspects of preparing a business plan is the development of powerful financial statements.

If the statements are too grandiose, they lose creditability. For example, if they are what is commonly called “hockey sticks” the sophisticated financial analyst who is reviewing the statements will immediately discount the soundness of the business plan. A “hockey stick” projection is one where the revenues for the first one or two years are relatively modest, and then in the third, fourth and fifth year they shoot up spectacularly. On the other hand, if the projections are understated you may not be able to attract investment because the potential investors will not look favorably on the opportunity. The answer is to be very thorough in preparing your projections so they reflect the written content of your business plan.

An often overlooked aspect of financial statements is cash flow. How much money will you need each month to meet your anticipated obligations? Cash flow to a start up is the most important financial management task. Each month there must be sufficient cash to meet your obligations. Focus on the uses of cash each day. Avoid unnecessary expenditures. We have several cash flow projection sheets we can make available. These will forecast your cash needs for the following 6-8 weeks which allows you to plan the needs and uses of that scarcest of resources cash.

Finally, be accurate in forecasting your needs for getting to market. Venture capital firms and other investors react badly to unanticipated cash calls. If you forecast your total investment needs to be $500,000 and they turn out to be $1,000,000 two unpleasant things happen. First you will find that raising the additional amount will cost you dearly. The amount of equity the second $500,000 will demand will be high. Primarily because the investor will know you are desperate, and because your lack of foresight casts doubt on your management knowledge. Secondly, those investors who took a chance on you in the early rounds will find the value of their investment severely impacted. It may wipe out all or most all of it. You don’t want to be responsible for that. So be realistic.

Examine your needs, consult with those who have done it before to get their insights. Bob Savage, who manages our Rocket Venture Investment Fund, and other funds constantly reminds us, “it takes twice as long and costs twice as much as you think”. That is a good rule of thumb to follow.

Jon Klotz
Entrepreneur in Residence, Rocket Ventures
klotz@rgp.org

How many times have you said “I need to start my own business,” but never took any action? Maybe you thought it would take too much time or money. Well, you are wrong on both counts. Starting a business in the State of Ohio is easy - just 4 steps - and costs less than $150.00.

Become the CEO you were destined to be by taking these actions NOW.
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