EDC’s Mission: To provide economic growth through the creation and expansion of high-impact Iowa businesses. EDC 2013 Stakeholder Report

EDC Stakeholder Report 2013

Dear EDC Stakeholders,

2013 marked EDC’s 10th year working with Iowa entrepreneurs. With a mission of improving the economic vitality of our region through the creation and growth of high-impact, scalable entrepreneurial enterprise, one look at the program-to-date summary stats will validate EDC’s value proposition. By engaging over 600 Iowa

entrepreneurs with hands-on world-proven expertise, hosting over 80 networking and educational programs for thousands, and making over 1,000 talent and vendor referrals, EDC has established itself as one of the premier entrepreneurial support organizations in the country and the strongest performer in Iowa.

From a concept in February 2003, research was done, a plan was written, start-up funding was secured, and EDC opened its doors in September of the same year. Since that time, EDC has grown from a one-man startup to a successful later-stage entity with a staff of six and a subject matter expert base of 50+ because of its proven processes and continued market demand.

Because of EDC’s unique hands-on model, EDC has been told that in terms of return on investment (as calculated by traditional NBIA incubator/accelerator models nationally) it ranks in the top 1% of such organizations on a global basis (see statistics herein). The team at EDC is very proud of the results witnessed in the businesses and entrepreneurs we have supported.

In completing ten full years of entrepreneurial support, and after coming off of the busiest year in EDC history, performance and need would indicate that the path selected in 2003 was correct. Our business model has evolved to fit client needs and as of today we are stronger and better equipped than we have ever been to accomplish the future tasks at hand. As a long-time stakeholder of EDC, we hope that you are as proud of our accomplishments as we are.

The entire team at EDC thanks its stakeholders for the opportunity to be a part of something unique, something of great value to the region, and something that provides solid internal reward.

Sincerely,

Curtis R. NelsonPresident & CEO

“Having worked with hundreds of business incubators/accelerators globally for 20+ years, EDC has one of the highest ROI’s of any I have known or read about, easily putting them in the top 1% of the 1,500 organizations in the U.S., and 7,000 worldwide.”

Charles Stein, Strategic Development Services (for Incubators), Columbus, OH

2013 EDC BOARD

Charles Rohde, President, King’s Material (Chair)

Jon Dusek, President & CEO, Armstrong Development (Past Chair)

Mary Quass, President & CEO, NRG Media LLC

Doug Kopp, Vice President of Environmental Affairs, Alliant Energy

Larry Helling, President & CEO, Cedar Rapids Bank & Trust

Lance Dunn, Co-Founder, Taxact.com

Kathleen Kleiman, Member, Simmons Perrine Moyer Bergman PLC

Bruce Lehrman, CEO, Involta

William McCartan, Shareholder, Bradley & Riley PC

Dick Schwab, Owner, Iowa Woodworks

David Rusch, President & CEO, CRST International

Steve Schoenauer, Managing Director, RSM McGladrey

Terry Sullivan, CFO & Assistant Vice President, CIPCO

Tim Kintner, Executive Vice President of Consumer, Private and Regional Banking Markets, Bankers Trust

Kris Gulick, President, Entrepreneurial Services Group LLC

David Hensley, Associate VP for Economic Development and JPEC Executive Director and Clinical Professor, University of Iowa

2013 Impact

EDC engaged with 79 area businesses this past year; helping with expansion/creation funding, strategic direction, marketing planning and execution and overall business growth.

Active Clients

EDC currently supports thirty-six (36) clients at the following stages:

• Fifteen (15) of the clients are well-established area businesses seeking growth or restructuring assistance.

• Twelve (12) of the clients are early-stage businesses seeking growth and capital assistance.

• Nine (9) of the clients are start-ups or pre-revenue businesses seeking assistance with market research, business planning and capital raising.

Client Recognition

Several EDC clients were recognized in 2013 for their impact and growth:

• Five (5) clients made Inc. Magazine’s 500/5000 list of fastest growing private companies:

• MobileDemand (#802)

• Clickstop (#1,555)

• Involta (#2,410)

• Geonetric (#4,319)

• Ready Wireless (#4,628)

• As previously reported in the Mid-Year Report, EDC client Involta was recognized as IT Service Provider of the Year at the Technology Association of Iowa Prometheus Awards banquet (over 600 in attendance).

• Also as reported in July, six (6) EDC clients were recognized at the Corridor Business Journal’s Fastest Growing Companies breakfast.

• #5 Genova Technologies

• #7 MobileDemand

• #8 Involta

• #14 Cedar Ridge Vineyards, Winery & Distillery

• #15 Clickstop

• #24 Collective Data

Well-Established Area Businesses

Start-ups or Pre-Revenue BusinessesEarly-Stage Businesses

“The counseling and support we received from the EDC team during our start-up years had a huge impact on our success. And now, we continue to benefit from our EDC relationship with ongoing business and sales coaching and the connections that are helping us grow much faster than the rest of our industry. The Creative Corridor is blessed to have such a strong force for spawning new business.”

Jeff Quint, Founder, Cedar Ridge Vineyards, Winery & Distillery, Swisher

Impact Annual (2013)

Program to Date (2003-2013)

Number of businesses supported 79 618

Capital raised $14M $193M

New revenue generated $175M $738M

New payroll created $41M $265M

Net direct jobs added 19 1,500

Total economic impact $230M $1.197B

Client Funding

EDC continues to assist clients in securing critical funding needed for the growth of their businesses. In 2013, a total of $14M was secured in equity, debt and federal/state/regional programs.

EDC has a proven track record for assisting clients with funding applications, securing 100% of the federal, state and regional funds applied for in 2013. EDC assisted 10 clients who secured funding from the following programs:

IEDA Demonstration Fund..............................................................................$75,000

IEDA Innovation, Acceleration, Launch & Propel ................................$1,500,000

IEDA Proof of Commercial Relevance .........................................................$10,000

ECICOG Revolving Loan Fund ..................................................................... $660,000

SBIR .................................................................................................................. $163,000

Equipment Reimbursement Program ..........................................................$53,625

USDA Sustainable Agriculture Research & Education (SARE) ................$22,000

Total ........................................................................................... $2,483,625

“The EDC has been an important resource for Collective Data for many years and this past year was no exception. In 2013 we relied on EDC’s guidance and expertise in marketing and brand building, specifically with Julie Zielinski and Christie Remley, which had a very positive impact on our growth. Curt also continued helping us build a stronger sales organization. As my company grows and experiences new challenges, I look forward to taking advantage of the wealth of experience and knowledge that the great staff at the EDC bring.”

Jason Wonase, Founder, Collective Data, Cedar Rapids

EDC Client Impact

The table below provides information on EDC’s impact for 2013 as well as results since the program’s launch in 2003.

“The EDC has been instrumental in creating an internal structure and a team to grow my business. Because of the EDC we now have: funds, a manufacturing facility that can take on growth, an operations manager that has been trained and is ready to take over, a sales manager, an inside sales team, a restructuring of the bookkeeping as well as shipping, and a formal marketing plan. Every person at EDC has put energy into this business and within a short amount of time we have increased our sales, margins and overall optimism about the future.”

Anna Sobaski, Founder/President, Anna’s Allergen Free, Iowa City

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“EDC was tremendously helpful to OnTheBlock by helping us navigate the waters with the IEDA. Jane and the rest of the staff helped us navigate complex forms and provided depth of knowledge from their prior experiences to successfully shepherd us through the process. In the end, the results speak for themselves, as we were one of only two companies (in our group) to be fully funded on our PROPEL request.”

Chad Fisher, Founder/CEO, OnTheBlock, Urbandale

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“I’d like to thank the EDC team for all the assistance you have provided us over the past 4 years. 2013 was a great year for growth and we have more than doubled our business since 2010. The assistance in marketing and sales provided by the EDC were critical in forming the strategies, action plans and initial tasks that have enabled us to create and focus our marketing efforts, differentiate from competition, and grow beyond our expectations. I look forward to working with the EDC in the coming year as we take Inteconnex to the next level.”

Marc Meyer, President & CEO, Inteconnex, Cedar Rapids

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“Premier Media Holdings has had the pleasure…and the benefit…of working closely with The Entrepreneurial Development Center (EDC) throughout 2013 as we have worked to identify critical company growth strategies. Despite being a successful serial entrepreneur, I continue to see the talent and support EDC offers to be of indispensable value to our growing business. We fully expect to continue to take advantage of the excellent services EDC offers in the coming New Year.”

Peter Sprague, Chairman, Premier Media Holdings, Marion

“The immediate insight and related experience regarding our business model was instrumental in management’s desire to work with EDC, and our decision to establish the business in Cedar Rapids. EDC helped us fine-tune key aspects of our business plan as well as round up the capital needed to get started. What we at iCONNECT value most about working with EDC is the collaboration and active participation of the EDC team. Everyone with whom we work is fully committed to the success of our business.”

Tom Kielty, Founder/CEO, iCONNECT, Cedar Rapids

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“The Entrepreneurial Development Center (EDC) was key in accelerating our emerging growth medical device company to where it is today. Historically, EDC was instrumental in helping the company to secure a multi-million Series A Financing that catapulted the company from an idea to an operating company. Since then, the EDC has been instrumental in both securing a Series B Financing to fund the company and equally importantly, in retaining an industry-experienced CEO to lead the company through initial commercialization and strategic acquisition. Without EDC, Corvida Medical would not be where it is today...”

Kent Smith, CEO, Corvida Medical, Coralville

Join us Tuesday, October 21st at

the Doubletree by Hilton Cedar Rapids Convention Complex

To get more information and register, visithttp://innovationexpo2014.eventbrite.com

Connect. Learn. Celebrate.Innovation EXPO 2014 is a coordination of three state-wide events, to enable more fruitful connections between resources and entrepreneurs. It will culminate in a convention-like setting for celebrating our area’s entrepreneurial companies and individuals. Meet dozens of entrepreneurs. See & touch their products. Connect with potential partners.

230 2nd St. SE, Suite 212Cedar Rapids, IA 52401

316 E. Court StreetIowa City, IA 52240

319-369-4955www.edcinc.org

This institution is an equal opportunity provider and employer.