Congratulations McGuire New Venture Competition winners, Specteros!

On Friday, April 28, the McGuire Entrepreneurship Program held their annual New Venture Competition. Eighteen student teams pitched their startups to a panel of esteemed judges for the chance to win free hosting, office space, and cash prizes.

Six teams advanced to the competitive final pitch round where they were able to provide the judges more information, elaborating on the traction and validation of their companies, financial plans, and opportunities for growth.

Specteros, an LED grow light manufacturing company, wowed the judges and walked away with cash and prizes valued at $31,300 including the $10,000 grand prize, Microsoft Social Impact Award ($5,000), Connect Coworking Award (valued at $11,600), and StageXchange Award (valued at $4,700).

Winners of the McGuire New Venture Competition, Specteros. Pictured (left to right): Cory Owan, electrical and computer engineering junior; Jonathan Besquin, marketing and entrepreneurship senior; John-Michael Stilb, marketing and entrepreneurship senior; Edward LaVilla, optical engineering doctoral candidate; and Wesley Stiner, Juris Doctor candidate.

Nunami Labs, creators of cutting-edge sensor technologies for self-driving cars, took the $5,000 second place award. Nunami Labs was also a finalist in April’s ASU Innovation Open winning $5,000.

In third place winning a $2,500 cash prize was Pocket Pantry, an app that allows users to watch cooking videos, create shopping lists, and order ingredients for doorstep delivery.

Winners of Startup Tucson’s 2016 Startup Weekend, Pocket Pantry. Pictured (left to right): Robert Johnson, Quinn Miller, Leo Shix, and Matthew Poulton.

As winners of Startup Tucson’s Startup Weekend in September 2016, Pocket Pantry took their business idea to the next level, continuing to develop and perfect their presentation throughout the McGuire Entrepreneurship Program.

Specteros will present at 1 Million Cups on Wednesday, May 10, 2017, 8:00AM – 9:00AM. Come out and congratulate the Specteros team and see what makes them amazing entrepreneurs and innovators!

Early Stage Investors Converge on Tucson at Southwest Regional Angel Summit

This week Tucson played host to the 5th Annual Southwest Regional Angel Summit.  Organized by Bob Morrison of the Desert Angels and the McGuire Center for Entrepreneurship, the yearly Summit attracts early stage investors from Arizona, California, Utah, and New Mexico as well as from as far away as New York City and Mexico.

Summit organizer Bob Morrison welcomes everyone to the New Venture Expo

Here are some notes from the 2 day event:

  • Day 1: For the first time, an additional day of events were added with a focus on opportunities for investment in and collaboration with Mexico.  Melissa Guz wrote her first article for Startup Tucson News and covered Sunday’s events in some detail.
  • Day 2 kick off:  On Monday morning with a welcome presentations from Sarah Dickey from the Angel Capital Association.  Sarah provided a national update on trends in angel investing.  She made a special note about the success of this event (in it’s 5th year) and recognized the Desert Angels and the leadership of Chairman Curtis Gunn having funded over $6M in across over 20 companies in the last 2 years.  Most all of the funded companies are located in Tucson.
  • Side Cars: Next, Curtis and Jim Goulka of the Arizona Technology Investor Forum discussed “sidecard funds“.  Curtis and the Desert Angels have implemented a sidecar fund here in Tucson.  It allows investors to passively invest in deals by relaying on the collective domain knowledge of the group by taking investments in the sidecar, which in turn invests in certain deals made by members.  This increases engages investors who might not otherwise being investing money due to time limitations or domain expertise and ultimately results in more dollars invested.
  • Tech Transfer: The next session included Nina Ossanna of UA Office of Tech Transfer, Larry Hecker of Hecker and Muehlebach,  and Bob Morrison.  They discussed how discussed how UA OTT works, with a particular focus on supporting UA researchers as they go through the patent and commercialization.  Challenges facing UA commercialization efforts included limited resources resources available to aggressively support the commercialization of UA research.  This issue was further addressed during the lunch session with Dr. Len Jessup, Dean of the UA’s Eller College of Management who is heading UA’s effort to create Tech Launch Arizona.  This is discussed later.
  • Digital World: Chad Lehrman did a special write-up on the session discussing investing in digital, web and mobile app deals.
  • SyndicationBase Horner, Screening Panel Chairman for the Desert Angels and Jim Gouka handled the next session on how different angel groups often use “deal syndication” to partner together, share domain expertise, reduce risk and improve the ability of the groups to provide for  larger investments for portfolio companies. They also discussed the value of Gust (formerly known as AngelSoft), and how it helps with information sharing and due diligence on deals.
  • Tech Launch Arizona: Len Jessup, provided the luncheon keynote and introduced Tech Launch Arizona.  He explained that his past investigation into University technology commercialization processes allowed him to survey the best and worst practices at public research universities like the UA.  Unfortunately, the UA showed up on the “worst” list.  While the UA is among the nations top public universities with nearly $600M per year in research, it has some of the lowest revenues from research commercialization revenues.  The new plan will more closely align the Arizona Center for Innovation, the Office of Technology Transfer, the Office of Corporation Relations and the McGuire Center for Entrepreneurship.  Read more information on TLA here.
  • Angels and VCs: Harry George of Solstice Capital, Tucson’s only Venture Capitalist, discussed the how the VC sector has been shrinking, going from 2500 firms at its peak to only about 500 firms today.  Additionally, fewer firms are doing early stage deals which leaves a significant gap and increases the importance of angel investment.  He also provided 3 pints of advice for entrepreneurs who are raising money:
    • Send out quarterly newsletters to your  investors, share the bad news first. Don’t try to spin it.
    • Create listening culture in your company (in your portfolio companies if you are an investor) so the CEOs learn to take advice effectively.
    • “Get to revenue fast, if not faster” (to paraphrase a quote from Micky Thompson at Post. Bid. Ship, one of Harry’s portfolio companies and an alumnus of the McGuire Center).
  • Potpourri:  This session included a series of short sessions
    • Larry Hecker discussed the JOBS Act which will be signed into law later this week legalizing certain forms of “crowdfunding” for equity deals.  The practice has previously been limited to deals that didn’t involve equity in return for the investment, typically charitable contributions.  He said that there is both good and bad news in the new law, making it easier for companies to raise money and easier to for people to invest in companies, but it comes with lots of concerns about how complicated the process may ultimately be.
    • Chuck Bolotin provided a presentation on how early stage companies are leveraging free resources to save money during tight times. Resource Examples included (1) The Internet, (2) Google and other search engines, (3) Non-vendor content providers, (4) Vendor content providers, (5) The community
    • Emre Toker of Arch Partners, discussed and some of the limitations of Tucson including limited investment capital, imbalance between business school talent and software talent, and too few incubators.  Emre and Joann MacMaster of AZCI then discussed the latest models for both for-profit and non-profit business incubators.
    • Dan Roberts: Provided an update on the efforts of Maverick Angels, a California-based angel group.
  • New Ventures Expo: Finally, the day ended with the McGuire Center’s student teams hosting the New Venture Expo, a rocket pitch and team competition.  The teams created booths and presented their business ideas to angel investor-judges who visited each booth asking critical questions.  See our write-up on the competition for a summary of teams and the contest winners!

Mexico is a land of investment opportunities

The Desert Angels, an Arizona-based non-profit organization of investors, kicked off their fifth annual Southwest Regional Angel Summit Sunday at the University of Arizona (UofA).

Bob Morrison, the organizer of the event and a member of the local Desert Angels investment group, said that this year’s summit differed from past ones because they extended it into two days, with the first exposing angel investors to Mexico’s market, entrepreneurship and innovation.

“(Angel investors) need to understand that (Mexico) is not the land of just tequila and margaritas, but a land of investment opportunities,” Morrison said.

Speaker Giancarlo Ciscomani Freaner led the discussion panel by sharing with the audience one such opportunity: Angel Ventures Mexico (AVM).

According to Freaner, AVM was founded in 2008 in Mexico City and is run by Hernan Fernandez. In general, the company focuses on “providing companies and angel investors with potential looking for capital.”

Giancarlo Ciscomani Freaner (right) interacts with an angel investor on the first day of the Fifth Annual Southwest Regional Angel Summit Sunday. Freaner introduced angel investors from both Mexico and the U.S. to the company, Angel Ventures Mexico. Photo by Melissa Guz

“Angel investing is a critical stage in our development,” Freaner said. “The challenge is getting access to them… the (U.S.) investors interested in spanning into Mexico. We need help opening up the market to Mexico.”

Freaner also said that their major plan is to replicate a model so that Mexicans living in foreign countries can invest in the Mexican/Hispanic innovation.

“Unfortunately, there are minor cultural problems,” he said. “One of these problems (that applies toward investments in general) is that investors don’t like to put money in things with high risk or that they’re uncertain about.”

And in this case, it appears that many investors are worried about the safety and trustworthiness of such companies based in Mexico.

This concern over establishing credibility toward Mexican-based companies ended-up being one of the central driving factors behind the start-up company, enBIDia. It was pitched by Luis R. Soto and Alexandra Garcia, who are two members of the management team, as well as international students attending the UofA’s McGuire Center for Entrepreneurship.

According to Soto, enBIDia is a penny-bidding website similar to the Canada’s However, its aim is to provide trust in both the Mexican market and government.

“There is no friendly penny auction in Mexico because a lot of people don’t trust them,” Soto said. He used the company, por1peso as an example. He said that this auction website has a great deal of discontent to its customers.

“Compared to others, we want to be transparent, friendly, have fast delivery, as well as provide a natural bidding Mexican-based website with an entertaining outlet,” Soto said.

In addition to establishing trust with their customers as the main business risk, Garcia noted that a major financial risk is just being able to raise the sufficient funds for the products they will be auctioning off.

“This is also the result of the lack of industry information in Mexico,” she said.

The panel then transitioned into a company called  CIMATIKA. According to its CEO, Franciska Karsay, CIMATIKA was founded in 2011 by scientists as a technology-transfer project between the UofA and Mexico’s National Board of Science and Technology, or CONACYT. In general, CIMATIKA was designed to highlight Mexico’s innovations by commercializing them to benefit the Mexican people.

And in this case, CIMATIKA highlighted products like their Automated Counting System, which allows the counting of a specific product’s order size and inventory in seconds. In general, it counts things like various stacked materials, such as lumber, metal or paper, Karsay said.

Marcos Garay listens to Freaner's presentation on Angel Ventures Mexico on the first day of the Fifth Annual Southwest Regional Angel Summit Sunday. Garay believes that it is important for angel investors from both the U.S. and Mexico to start understanding where each country comes from when dealing with investments, entrepreneurship and technological innovations. Photo by Melissa Guz

By the end, angel investors like Marcos Garay from New York City appeared to have shown a great interest in the education of Mexican investors about how U.S. investors think, and vise versa.

“There are a lot of good things down there, and a lot of misconceptions (like safety),” Garay said. “The time has come to increase business from one place to another… Our challenge is to bring forth the opportunity of entrepreneurship everywhere.”

Click here to see the agenda for the second day of the summit.

Arizona Tops List of US States –

Geographically, entrepreneurial activity rates decreased in all U.S. regions except the Northeast, which experienced a slight increase. Rates remain highest in the West and lowest in the Midwest. Arizona had the highest entrepreneurial activity rate, with 520 per 100,000 adults creating businesses each month during 2011. Rounding out the top five highest rates were Texas (440 per 100,000 adults), California (440 per 100,000 adults), Colorado (420 per 100,000 adults) and Alaska, with 410 businesses started per 100,000 adults.

via New Business Startups Declined in 2011 Arizona Tops List of US States –

McGuire Entrepreneurship Students Undertake Special Assignment to Investigate Tech Commercialization at UA, within Southern AZ & Across the State

The McGuire Center's Matt Mars oversees honors students' work in the Dean's Open Innovation Challenge.

eller buzz

Eller College of Management

McGuire Entrepreneurship at Work

Honors Students Investigate Tech Transfer in Dean’s Open Innovation Challenge

By Liz Warren-Pederson – March 12, 2012

As part of their honors coursework, 28 undergraduates enrolled in the McGuire Entrepreneurship Program are investigating the technology commercialization environment at the University of Arizona, within southern Arizona, and across the state.

The Dean’s Open Innovation Challenge tasks eight teams of honors students with gathering and analyzing data that may contribute to the success of the new Tech Launch Arizona initiative UA announced in 2011.

Continue reading

Students Present Potential New Startup Companies at Recent UA Innovation Showcase

Students unveil entrepreneurial creations at UA’s Innovation Day

Posted: Friday, March 9, 2012 12:00 pm | Updated: 7:37 pm, Sat Mar 10, 2012.

By Patrick McNamara – Inside Tucson Business

The University of Arizona’s best and brightest student entrepreneurs filled the ballroom at the Student Union Memorial Center on Tuesday (March 6). The venue was apropos for the event, Innovation Day, which had the feel of a debutante ball for students eager to give their ideas a first public showing.

Student teams from the UA McGuire Entrepreneurship Program presented business concepts that they had worked on throughout the school term at the Innovation Showcase.

Some students are hopeful that their concepts will get noticed, create interest and attract investors. Others have already have begun to market their creations.

Continue reading

Building the Next Tucson

Building the Next Tucson

In 2010, Boulder, CO was named “America’s Best Town for Startups”.  Why?

“With the University of Colorado as an anchor and a backyard full of mountains as lifestyle bait, Boulder now has the highest concentration of software engineers per capita in the nation. It’s second only to Silicon Valley in percentage of workers employed in tech, according to the American Electronics Assn. Best-selling author and urban development expert Richard Florida says it has the greatest concentration of the “creative class”—scientists, artists, engineers, and the like—in the U.S.

The university and prestigious research labs such as the National Center for Atmospheric Research and the National Institute of Standards & Technology have long attracted well-educated folks to Boulder.”

Does this sound like any city you might know?

In 2006, David G. Cohen co-founded TechStars.  The idea was simple, but pretty bold – “create a program that would help create a bunch of new startups in Boulder”.

“Our belief was that the mentors–many of whom were experienced entrepreneurs– would engage deeply with the first-time entrepreneurs (the “TechStars”) over the 90-day program to help them get their businesses up and running..”

Then 5 years later, the model Cohen helped build in Boulder has been wildly successful, launching 80 companies, attracting 200 mentors and expanding from Boulder to Boston, Seattle and New York.

So what is the key to success for TechStars and Boulder?  Well, money, for one thing.  TechStars provides $18,000 seed funding to each of the companies accepted into their program.   But money isn’t the only answer.

Each year hundreds of companies from all over the country apply to TechStars and 10 companies per city are accepted into the program.  So the Boulder community benefits from the attraction of nearly $180,000 in startup investments made each year into TechStars companies, many of which move to Boulder.  Young, creative entrepreneurs move there.  They setup shop there.  It was all part of the plan from the beginning.

 “In our best case, we’d help start a bunch of neat new companies. In our worst case, we’d lose all of the money that we invested in the program but we’d end up attracting 20-plus new entrepreneurs to our Boulder community.”

While money is key, it’s not the only thing.  Cohen published an article on his blog, describing a recent discussion he had with a group of entrepreneurs and investors in San Diego, where he shared with them 7 things that really made Boulder work:

“So, I rattled off 7 things to the dinner group to spur discussion:

  • Richard Florida’s work on the Creative Class matters. Please read it. This is now table stakes.
  • I talked about how the real up and coming communities are entrepreneur led. Everyone else’s job is to support the entrepreneurs who are leading. I referenced Tony Hsieh in Las Vegas as a great current example of this.
  • We discussed the idea of a “high quality focal point.” – This is the notion that you need something in your community that engages everyone deeply across the spectrum of first time entrepreneurs, more experienced entrepreneurs, service providers, angels, venture capitalists, students, etc. They have to have something “real” to do together. TechStars provides this for the communities that we’re in. But it can be anything, as long as it drives real activity and energy together and it’s something that’s not shallow.
  • We talked about Brad Feld’s notion of entrepreneurial density. If the best efforts of a town occur in a dense area, you will have more serendipity and excitement around startups a compact area. In Boulder, this is palpable.
  • We talked about what Brad calls “fresh meat” – a constant inflow of new talent. Again, TechStars provides this. But so do universities. The best entrepreneurial communities seem to do this well.
  • We talked about being vocal about your community. I told the folks from San Diego “I can’t hear you!”. Talk about this more, and let the world know about your successes. Again, this has to come from the entrepreneurs (and be amplified by the media).
  • Finally, I said that a community needs visible entry points. Boulder’s new tech meetup and web sites are great examples. I love the “ambassadors” part of Look at the entrepreneurial leaders who have stuck their hand up to say “I’ll show you around here.” Amazing.”

This is a set of recommendations that leaders in Tucson should look at closely.  Startup Tucson and many other people and organizations are having this discussion right now.

At Startup Tucson, we are committed to helping build a robust startup ecosystem here in Tucson.  In the weeks and months ahead, we will be rolling out tools to help create a more connected and informed community.  We are launching Startup Tucson News to cover the startup events and companies from our local community.  We will be launching a collaborative calendaring platform to help inform people of what’s going on in the community.

Please join us.  The first step is to get involved:

To pull this off, we need you, the creatives, developers, designers, inventors, and investors… to show up… speak out…  contribute… create…. and do your part in Building the Next Tucson.

Please share your thoughts with us and each other in the comments section, on our Facebook page, on Twitter or just send send me an email.