Hannah Wallace

Billie Jean King Wants to Change the Playbook for Female Founders

 

 

I got to interview tennis legend Billie Jean King and her wife Ilana Kloss for Inc.'s April 2024 Female Founders issue.  

 

One detail you may not know about tennis icon Billie Jean King: She's long been a savvy businessperson.

Before she made history more than 50 years ago for trouncing former men's tennis champion Bobby Riggs in the Battle of the Sexes, King co-owned several tennis tournaments. She was then in her 20s, and her portfolio included the Oakland Pro Championships and the Billie Jean King Invitational, which was part of the all-women Virginia Slims series.

A year earlier, in 1972, King refused to play in the next year's U.S. Open unless all the women playing got paid the same as the men. However, she didn't just protest; she actively worked behind the scenes to secure a sponsor. "I did that so I could go to [tournament promoter] Billy Talbert and tell him, 'We have the money!' " says the now 80-year-old King. ­"Because money is everything in these situations." (Bristol Myers agreed to be the sole sponsor--and the U.S. Open became the first of the majors to offer equal prize money to women.)

Equal pay has continued to elude ­female athletes, but a shift is taking place as interest in women's sports spikes. ­In 2024, global revenue generated across the category is expected to surpass $1 billion for the first time, according to a recent report from Deloitte's Center for Technology, Media & Telecommunications. That same report predicted that women's elite sports team valuations would continue rising in 2024, with added clubs exceeding the $100 million threshold.

In a year when the business of women's sports is finally getting its due, Billie Jean King stands out not only for her pioneering efforts to elevate the field, but also for continuing to stay relevant. Through the Randolph, New Jersey-based Billie Jean King Enterprises, an investment and consulting firm, King and her wife, Ilana Kloss, 68, have invested in six sports, from volleyball to hockey. And they've invested in startups like Kinlò, the skin care line for people with melanated skin founded by 26-year-old tennis phenom Naomi Osaka, and the media company Just Women's Sports, led by 30-year-old former soccer star Haley Rosen.

But being a sympathetic investor is only part of King's appeal. "Billie is a legend and a mentor," says Osaka. "I have grown up in awe of her."

And she's not alone. From the tennis court to the C-suite, women and men have found continued pride and inspiration in King's trailblazing moves all those years ago. And while it can seem somewhat commonplace these days to hear about women playing to sold-out shows and standing up to massive corporations--Taylor Swift is just the most prominent recent example--doing so was far less typical 50 years ago.

"Billie took on the risk of saying, 'This isn't right, and we're going to do it the right way, whether we're successful or not,' " says Julie Uhrman, co-founder and president of Angel City Football Club, Los Angeles's new pro women's soccer team. Like King, Uhrman also landed on Inc.'s 2024 Female Founders list. King and Kloss invested in Angel City in 2020, and Uhrman says their support and mentorship has meant the world. She recalls how right before the club launched, Kloss sent a video of King telling the team how proud she was. King said, "Keep up the good work!"

"It was so meaningful coming from someone who laid the groundwork," Uhrman says. "Someone who did fight against the system, who did strive for a better future, who did break barriers and continues to break barriers and recognizes how challenging and difficult it is and how many people get in your way."

That King and Kloss are fiercely committed to investing in women's sports makes sense. The WNBA's combined viewership across all networks grew 67 percent from 2022 to 2023, as the league's overall partnership revenue notched double-­digit growth. For BJKE, that's translated to annual revenue growth of 35 percent in 2023 over the year prior; the company declined to provide a specific number.

"People are thinking of women's sports as a great investment now--not just helping us or being nice to us," says King. "We're actually a good investment."

Billie Jean King in play at the US Open on September 1st, 1973.Photo: Getty Images

 

That's part of the impetus behind her company's role in propping up the new six-team Professional Women's Hockey League, with L.A. Dodgers co-owners and spouses Mark and Kimbra Walter. Creating the league took over five years, says King, who credits Kloss, BJKE's CEO, with doing the bulk of the work. "We're really thrilled that happened, because now the little girls have their dream. That's what I want," King says. "The boys have had their dream for 100 years, and the girls haven't--not at this level."

It's the kind of messaging King is game for as executive producer of Groundbreakers, too. The PBS documentary celebrates Title IX, the landmark civil rights law that prohibits sex-based discrimination in schools and other education programs, through the stories of prominent women athletes. BJKE is partnering with the International Tennis Federation and TWG Global to market all of the commercial rights for the Billie Jean King Cup, billed as the premiere international women's tennis competition. In 2022, the company launched Trailblazer Venture Studio in partnership with three other companies. Also under the auspices of BJKE, King and Kloss do consulting work and leadership training for sports organizations as varied as the NFL and the National Women's Soccer League.

Right now, the pair's focus is on helping women's sports get media exposure across all platforms--which can translate into more money for women athletes. A study released in 2023 by talent-­management and marketing firm Wasserman found that women's sports averaged about 15 percent of media broadcasts, streaming, social media, and digital publications--up from around 13 percent in 2019. "If you get 15 percent exposure, you're never going to get as much money," says Kloss. "But that's starting to change across every platform."

King knows how much representation matters, especially to children. When she was 9 years old, she went with her parents and brother on Mother's Day to see a minor league baseball game at L.A.'s Wrigley Field. "Sitting there, I had this jolt through my gut and my heart: I cannot play baseball because I'm a girl," King says. "On the way home, I was really upset. Very quiet. My parents said, 'Are you all right?' And I said yes, but I wasn't, obviously. It made a big impression. I think it helped shape my life."

Four years later, when she was 13, she found early inspiration in Althea Gibson, the first Black person to win a Grand Slam event. "She was the first No. 1 in the world I ever saw in person," King says. "I was 13. I remember how excited I was that day. I went, 'She is so good. How am I ever going to be that good?' "

Adds King of Gibson, "You have to see it to be it."

People should never feel like they can't do something because the system isn't built for them, King says. It means the system needs to be rebuilt, which, she adds, the women and men who come next will have to do.

"My parents always taught us that every generation gets better," King says. Rest assured, future generations will still be looking to her for inspiration.

Michael Mohr Grew Up Watching Movies in His Cousin's Basement With Seth Rogen...

Now They Run a Thriving Cannabis Brand 

Inside the creative minds behind Houseplant, a weed-focused lifestyle brand aiming to class-up cannabis.

I wrote this profile of Michael Mohr, Seth Rogen's accomplished business partner and friend, for Inc.'s package on Celebrity Counterparts. 

See here for the full article:{Download MichaelMohr}

 

 

 

7 Green Tech Startups With the Innovations—and the Funding—to Help Save the Planet

From growing kelp forests to making packaging out of mushrooms, these companies are reducing greenhouse gas emissions from every angle. 

I wrote this round-up for Inc.'s Carbon Neutral package, in the May/June 2022 issue. 

Entrepreneurs coast to coast are coming up with innovative technologies showing not only that we can live without carbon-based energy, but also that we can thrive without it. From a Maine startup that's growing kelp forests (which can sequester gigatons of CO2 for centuries) to an electric vehicle company in Eugene, Oregon, that's making affordable electric cars with flair, these green tech startups show that our carbon-free future actually looks pretty cool. Wave energy? Batteries to store renewable energy that are more environmentally friendly than lithium? Biodegradable mushroom-based packaging? These aren't merely futuristic notions. They're happening now, and they've got the funding to prove it.

 

A Running Tide kelp microforest.

 

 Courtesy of Running Tide

 

 

 

An Acrimoto FUV.Courtesy of Acrimoto

Arcimoto

Tech: Builds right-size EVs for less than $20,000
Founder: Mark Frohnmayer
Home base: Eugene, Oregon

Not everyone needs--or wants--a Tesla. Arcimoto is on a mission to democratize electric vehicles. The startup, founded in 2007, makes a series of right-size EVs that are ideal for urban eco-drivers. The Fun Utility Vehicle (FUV), for example, is an open-air (yet covered) car with three wheels. Doors optional. It's ultra efficient and--unlike so many EVs--actually affordable. The company is growing, having just moved into a new 250,000-square-foot plant, a fivefold increase over its former digs. Next off the line will be a series of specialty vehicles, including the Rapid Responder, outfitted with sirens and lights for emergency services, and the Cameo, designed to create a smooth camera vehicle for the film and influencer industries.

Running Tide

Tech: Grows kelp to capture carbon
Founder: Marty Odlin
Home base: Portland, Maine

Like trees, kelp naturally fixes carbon dioxide from the atmosphere--only kelp does it exponentially faster than land-rooted trees and plants. So founder Marty Odlin decided to build a business selling carbon credits around this fact. Running Tide scientists amplify the process by growing the seaweed on wood buoys layered with ground-up seashells that sit on the ocean surface, allowing the plants to capture carbon via photosynthesis. The buoys themselves are made of carbon-rich wood, and when they get waterlogged over the course of several months they sink to the bottom of the ocean--carbon, kelp, and all--where they will sit for centuries. The potential is enormous: Some suggest kelp farms like these, if scaled in our oceans, could collectively sequester over 270 gigatons of carbon. Shopify, Stripe, which just launched a new $925 million carbon removal initiative, and Frontier (along with Alphabet, Meta, and McKinsey) were early purchasers of Running Tide's carbon credits. Chris Sacca's Lowercase Capital is also an investor. The first deployment of algae is happening in late summer 2022, off the coast of Iceland.

Rye Development's Swan Lake Energy Storage Project

Tech: Uses hydropower to store renewable energy
CEO: Paul Jacob
Home base: Boston

Renewable energy sources like wind and solar are critical to our carbon-free future, but since it's not always windy and/or sunny, they require storage mechanisms to green the grid. When it opens in 2026, the Swan Lake energy storage project, based in Klamath County, Oregon, will be the first pumped storage hydropower project built in the U.S. in 30 years. The system uses excess renewable electricity from the grid to pump water to an elevated reservoir, where it sits as stored energy until it's needed. During peak demand, the water is released, spinning turbines that generate electricity. Swan Lake, which is being built by Boston-based Rye Development, will generate 400 megawatts of clean electricity, vastly increasing the storage capacity for the grid's wind and solar electricity.

ESS Energy Warehouse battery system.Courtesy of ESS

Energy Storage Systems

Tech: Builds a better battery
Founders: Julia Song and Craig Evans
Home base: Wilsonville, Oregon

 

These husband-and-wife founders started in their garage in 2011, cooking up so-called "flow" batteries, which store more energy and cost less per kilowatt-hour than lithium-ion cells. That's because they're made of environmentally benign materials: iron, salt, and water. A bonus: Iron batteries have a longer lifespan than lithium batteries--they can operate for 25 years or more with daily use versus lithium ion's 8 to 10 years. This kind of long-duration battery storage, which has been installed at San Diego Gas & Electric and other locations, will be crucial to reliably power a grid that relies on intermittent renewable resources like wind and solar.

 

AquaHarmonics

Tech: Tunes buoys to the waves to generate power
Founders: Alex Hagmuller and Max Ginsburg
Home base: West Linn, Oregon

Solar and wind energy will be essential for a carbon-neutral future, but the amount of time they produce energy is low. Solar produces energy just 25 percent of the time and wind produces energy 35 percent of the time. Wave energy, by contrast, has the potential to produce energy 60 percent of the time, and AquaHarmonics' founders believe they can increase that capacity to at least 80 percent. They will do this by using many smaller devices rather than a single large device as most other wave energy startups have done. Not only are small devices cheaper and easier to deploy, they can also generate more consistent power because they move out of phase with one another. For a variety of reasons, they can also survive storm conditions better than most bigger devices can, and continue to generate similar amounts of power. AquaHarmonics is designing cylindrical buoys with a mooring line that reels in and out with the waves. Depending on where they're deployed, the average capacity is 300 to 600 kilowatts, about the same as a big wind turbine. In 2017, the startup won the $1.5 million Wave Energy Prize and has since received $4.4 million in grants from the Department of Energy. It will soon deploy a device in Hawaii at a Navy Wave energy test site to demonstrate that the technology works. Grid-connected testing should follow in 2023.

 

Harvested air mycelium (left) and a faux leather jacket made from mycelium.Courtesy of Ecovative

Ecovative

Tech: Makes biodegradable packaging from mushrooms
Founders: Eben Bayer and Gavin McIntyre
Home base: Green Island, New York

Polystyrene foam, otherwise known as Styrofoam, is made from petroleum. But what if you could use a plant-based version that you could also break up into bits and throw in your garden, knowing it would become soil in a matter of months? That's the solution pioneered by Ecovative, with its 100 percent natural and biodegradable packaging material made from mushroom mycelium, the root structure of fungi. The company uses a patented growth chamber to guide mycelium into enormous sheets, and then forms it into everything from wine shippers to packaging for beauty brands like Ulta Beauty Retailing. Next up? Projects for the fashion industry including shoe insoles and mycelium leathers. The company, which has licensees in many countries, is ramping up production, with plans to open a 20,000-square-foot facility on the East Coast in August 2022.

Products made with Perfect Day animal-free milk protein.Courtesy of Perfect Day

Perfect Day

Tech: Makes faux milk that's nearly identical to the stuff from cows
Founders: Ryan Pandya and Perumal Gandhi
Home base: Berkeley, California

Methane is 28 times more potent at trapping heat than CO2, and a single dairy cow generates about 220 pounds of the greenhouse gas per year. The founders of Perfect Day engineered a way around the climate-warming impacts of the 10 million-cow strong dairy industry in the lab. By introducing the genetic code for whey protein into a fungus, Trichoderma reesei, they get a whey protein that is molecularly identical to the whey protein in cow's milk. As such, it mimics the creamy mouthfeel of dairy, making it a viable substitute. The protein is already used in a handful of popular ice-cream brands including Midwest ice cream manufacturer Graeter's and the Keto-friendly line Nick's. The company also partners with General Mills on a cream cheese and Betterland and Starbucks on an alt milk that the coffee giant is still trying to name.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

How These Founders Are Detoxifying the Denim Industry—and Saving the Planet

This story appeared in Inc.'s October, 2021 issue, as part of the Female Founders 100.

Most jeans manufacturers rely on petroleum-based dyes and pollutants. Tammy Hsu and Michelle Zhu are on a mission to revolutionize the industry with planet-friendly, microbe-based dyes.

Michelle Zhu (left) and Tammy Hsu run Huue, a startup developing sustainable textile dyes to replace the ecologically destructive colorants the fashion industry uses.

About 20 percent of the world's industrial water pollution comes from textile dyeing. And the denim industry is the worst offender: Most mass-market denim brands rely on petroleum-based dyes and chemicals like formaldehyde and hydrogen cyanide. In 2019, that reality inspired Tammy Hsu and Michelle Zhu to start Huue, which they spun out of Hsu's grad school work at the University of California at Berkeley, where she developed dyes made from microbial secretions. Huue is working on the launch of its first dye, a natural-but-synthetic indigo. The company's eight scientists are also developing sustainable dyes and colorants to disrupt other parts of the fashion industry. --As told to Hannah Wallace

 

ZHU: My parents were entrepreneurs in the apparel industry. Their brand focused on urban streetwear in the late '90s and early 2000s, which was why denim was such a large focus. As a child, I would visit garment manufacturing facilities on summer trips to China and witness the pollution firsthand: particles in the air that workers had to guard against with facemasks, and foul-looking waterways around the factories. It made a lasting impression on me.

HSU: I came at it from studying science and biology. The lab I was in was very entrepreneurial—we were all thinking about how we could apply these solutions to real-world problems. I'm interested in fashion, clothes, and textiles. The more I read about it, the more I realized that this is a huge problem in the industry.

ZHU: Until the turn of the 20th century, indigo was made from plants. Natural indigo is not very cost effective or scalable, and its performance and color consistency doesn't fit industrial needs. Today, it is generally created via petrochemicals. Fossil fuels are used at the source of creation, but the industry also relies on toxic chemicals such as formaldehyde and benzene— which not only pollute the planet but are carcinogenic as well. That's the main challenge we're tackling.

HSU: We look at how the indigo plant makes the indigo dye molecule. Then we take that genetic information and instruct our microbes to make indigo the same way. We're growing these microbes, and they're programmed to secrete the indigo.

ZHU: Microbes are truly amazing—they multiply rapidly. We call them nature's most powerful manufacturers.

 

HSU: Six years ago, my professor at Berkeley had a grant, and a story was written about our project. When people learned we were working on sustainable indigo, brands started inquiring.

ZHU: We'd just hired our team of scientists and everyone was so excited to get to work last year. And then it was all shut down. Our milestones are lab-based, so not being able to go into the facility for three months created all sorts of uncertainty. Then there was the issue of when we could run productions and supply products. We were fortunate to win a female founders competition hosted by Microsoft's M12 fund, Mayfield, and Melinda Gates's Pivotal Ventures. That gave us an extra million dollars, which was a big help in the midst of Covid. Finally in July 2021, we brought the whole (vaccinated) team back into the lab full time.

HSU: We've made a lot of progress to scale up our production with a couple of facilities around the U.S. and to make our microbes more efficient. In August, we were producing 80 times more dye than at the end of last year. Our partners want huge amounts of dye.

ZHU: The fashion industry is aware of its challenges—its troubled supply chain and the toxic nature of the dyeing process. It hasn't been difficult to get people really excited about the technology and potential.

Who Does That? Tyler Malek

I've long been intrigued by people who have unconventional jobs. You know, the guy who makes robotic dinosaur models for museums, or the duo who composes the music for the Daily podcast. So it was fitting when my Inc. editors gave me a new column: Who Does That? 

My first subject, in the May/ June 2020 issue, is none other than Tyler Malek, the flavor whiz at Salt & Straw. (If you're not familiar with Salt & Straw, it's the Portland-based ice-cream company known for flavors like“Pots of Gold and Rainbows,” spiked with Lucky Charms, sea salt with caramel ribbons, and bone marrow with smoked cherries.)  

 

Heath Ceramics, Back from the Brink

This story on the evolution of Heath Ceramics appears in the July/August issue of Inc.

 

Mention Heath Ceramics to design nerds or high-end restaurateurs, and chances are they'll fawn endlessly over its retro, midcentury tile or brightly glazed stoneware. Heath devotees are nothing new: Since visionary ceramicist Edith Heath and her husband started the company in 1948, enthusiasts have included architect Frank Lloyd Wright and chef Alice Waters.

Yet the company likely wouldn't be around today were it not for Catherine Bailey and Robin Petravic. When the couple--designers prowling about for a new project--stumbled into Heath's Sausalito, California, showroom in 2003, the company was struggling, unable to cover its bills and pay all of its employees. At the time, Edith was in her early 90s, with failing health and no succession plan. Forget diversification or modern­ization--a lone typewriter was still being used in the office.

After discovering that Heath was for sale, the couple immediately wrote the company a letter. Three months later, the now-70-year-old business was theirs. "The whole process was simpler than buying a house," Bailey says.

 

Over the past 16 years, Bailey and Petravic have brought Heath back from the brink by evolving everything from its product lines to its ownership structure, striking a delicate balance between respecting die-hard fans and bringing new ones on board. They've shifted the business from wholesale to direct-to-consumer, built a San Francisco experiential destination, expanded into the bridal registry business, and forged creative collaborations with everyone from fashion designers to furniture makers.

 

"We don't want to be forced to do things we don't want to do."

But perhaps the couple's biggest impact, says Bailey, will come from employing a "slow business" approach to growth that enables the company to go all in on creativity, quality, and transparency. Since Bailey and Petravic took over, Heath has steadily grown from 25 employees to 246 and from $1.2 million in sales to $30 million, putting it on track to be debt free by the end of 2020. Earlier this year, they even converted 8 percent of the company to an ESOP, with the goal of increasing that to 25 percent. Says Petravic, with the stark contrast of San Francisco's tech scene bustling around him, "We're setting things up for the next generation."

KELSEY MCCLELLAN

 

Since Petravic and Bailey took over Heath Ceramics in 2003, they've continued working with some of the country's best restaurants, creating dinnerware lines with two of them: Alice Waters's Chez Panisse in 2006, and, in 2016, Tartine, whose outpost at Heath's Mission District location inspired a bright new glaze--Tartine Teal (above). The collection features Heath's signature rim, and extends the company's 70-year tradition of sourcing clay from Lincoln, California. 

 

KELSEY MCCLELLAN

 

Founder Edith Heath began manufacturing tiles in the early 1970s at this Sausalito factory, but the new owners "wanted to be where our customers are," says Petravic. In 2012, they moved the tile factory to a 60,000-square-foot former commercial laundry in San Francisco's Mission District--keeping dinnerware production in Sausalito--and also opened a second showroom and the Heath Clay Studio.

 

A tilemaker working the Ram press, a machine that uses hydraulics to press clay tiles into different shapes, like this retro design created by designer Leon Galetto in the 1950s. Today, tiles are 29 percent of Heath's business, while ceramics account for 55 percent and home goods--ranging from wallpaper to furniture--make up 16 percent.

 

 

Petravic, Heath's managing director, and Bailey, its creative director, standing in front of Heath's iconic, color-saturated tiles. The couple--designers with a 14-year-old son--didn't want to fall into the trap of increasing volume to meet demand, which often sacrifices quality. Instead, at maximum capacity at both factories, they took Heath in the opposite direction: creating limited-release lines sold only in the showrooms that channel the experimen­tation and playfulness of founder Edith Heath. "It's the heart and soul of where we come from," says Petravic.

 

Bailey is always looking for interesting collaborations, like the ones Heath has with Alabama fashion designer Natalie Chanin and with Finnish furniture maker Artek. Pairing her designers with artists who inspire them, says Bailey, allows them to create more interesting designs than they would on their own. It's also expanded Heath into new categories, like textiles (including tote bags and cloth napkins) manufactured in Heath Sews, and flatware, which Heath produced in partnership with the last remaining flatware maker in the U.S., Sherrill Manufacturing.

 

KELSEY MCCLELLAN

At Heath's Mission tile factory (left), a small army of kiln posts are stacked on a table, where the public can view them on one of the company's many tours. The showroom there is also a bustling hub of small-scale bakers, makers, and craftspeople. In addition to Tartine, there's a Japanese pop-up boutique, a printer's shop, a jewelry studio, and the Heath Newsstand, run by Ema Iwata (right). Launched in 2017, the newsstand--which offers 400 magazines from around the world--is an extension of Bailey and Petravic's deep interest in human-scale, tactile experiences. "We want to encourage a richness of face-to-face interaction," says Petravic.

Miami's Sizzling Startup Scene

I wrote a Destination guide to Miami's startup scene for the July/August issue of Inc. 

 

A vibrant immigrant entrepreneurial scene and a dash of the good life make Inc.'s No. 13 Surge City a hotbed for creativity.

Wet labs for biomedical startups, an emerging "elder-tech" scene, and a pipeline to Latin America are just a few of the reasons Miami is heating up as a destination for founders. If you have 24 hours in this Art Deco metropolis, here are the insiders to meet, up and coming neighborhoods to check out, and some insider tips on where to grab that watermelon cucumber margarita.

Startup Neighborhoods

Just eight miles from South Beach, office-tower-and-luxury-condo-plush Brickell is a financial hub-turned-startup magnet. "It's a little New York City," says Andrew Parker, CEO of elder-tech startup Papa, whose offices are headquartered in the neighborhood's WeWork.

 

Vibrant Wynwood marks the inter­section of Miami's arts community and its tech scene. Galleries, cafés, craft breweries, and restaurants sit alongside coding boot camp Wyncode, Cambridge Innovation Center (CIC) Miami, and co-working space Lab Miami.

With upgraded transportation options and the city's best new restaurants—NIU Kitchen, Alloy Bistro, and Soya & Pomodoro—Downtown has become a new draw for young companies. Start­ups including software firm Octopi are now sharing the area with cultural institutions like the Pérez Art Museum Miami.

 

Red Flag

You can land seed and Series A funding here, but it can be hard to find growth-stage investors in South Florida, says Rebecca Danta, managing director at Miami Angels. And according to Brian Breslin, founder of tech entrepreneurship nonprofit Refresh Miami, one of the biggest challenges is finding and retaining talent: "A lot of our top-tier people leave and go to San Francisco because they can earn a much larger salary or because they want to put Facebook or Google on their résumé and build their pedigree."

Where to Talk Shop

One of the first third-wave coffee shops and roasters to open in Miami, Panther Coffee flaunts single-origin pour-overs, coffee cuppings, and founders and investors getting their caffeine fix in all of its five locations. Insider tip: Its Wynwood café is the buzziest.

 

Miami by the Numbers

$39.76 average direct leasing rate, per square foot, for office space in Miami-Dade County.

Source: CBRE MarketView Miami Office First Quarter 2019 report

The No. 1 U.S. metro area in percentage of immigrant entrepreneurs as of 2017.

Source: 2017 Kauffman Foundation Annual Survey of Entrepreneurs

40% growth for jobs in Miami-Dade County's tech sector from 2012 to 2018.

Source: Miami-Dade Beacon Council

Why bother working in Miami if you're not poolside at an Art Deco hotel with a watermelon cucumber margarita? Soho Beach House, the Miami Beach outpost of the London-based Soho House, is limited to members, their guests, and hotel guests, but you can pretend you're an insider at Cecconi's, the Italian courtyard-style restaurant on its ground floor.

The Players

The powerhouse duo behind Cambridge Innovation Center (CIC) Miami and non-profit partner Venture Café Miami are Natalia Martinez-Kalinina and Leigh-Ann Buchanan. Buchanan, among other things, runs Venture Café's weekly gatherings for entrepreneurs and investors over an open bar and can't-miss programming. Martinez-Kalinina oversees CIC Miami, a co-working space for startups--including South Florida's only shared wet lab for biomedical startups--and runs its Latin American engagement program, which has agreements in five countries to bring investments to the city.

Felecia Hatcher is not only co-founder of Blacktech Week, an annual weeklong conference for minority tech entrepreneurs, and coding camp nonprofit Code Fever. She also runs A Space Called Tribe, a co-working space and urban innovation lab that serves black entrepreneurs in the Overtown neighborhood. Its venture-capitalist-in-residence program gives black entrepreneurs unprecedented access to VCs.

Companies to Watch

Papa provides seniors with "grandkids on demand"--vetted college students mostly in health care-related fields--to run errands or just hang out. Andrew Parker launched the app in 2018 and plans to expand beyond Florida, Michigan, and Pennsylvania in early 2020.

 

Boatsetter co-founders Jaclyn Baumgarten and Andrew Sturner were Endeavor Miami Entrepreneurs of the Year in the tech category for their peer-to-peer boat-sharing platform, which operates in the Caribbean, the Mediterranean, and even the Andaman Sea near Thailand's Phuket Island.

In 2017, Olivia Ramos founded Deepblocks, which aims to master the art of closing a real estate development deal. Using A.I. and machine learning, it provides real-time analysis of financial and market data in combination with local building codes.

FRANZISKA BARCZYK

Recent Exits

Weston-based HR and payroll software firm Ultimate Software to a private equity group led by Hellman & Friedman, for $11 billion (2019).

Plantation-based construction software maker e-Builder to Trimble, for $500 million (2018).

Fort Lauderdale-based pet products provider Chewy to PetSmart, for $3.35 billion (2017).

Talent Pipeline

A digital and physical hub for the local tech scene, Refresh Miami hosts workshops and speakers for founders all over town. It's also a clearinghouse for jobs, startup news, and events--from Women in Miami Tech drinks to a Rise of the Rest pitch competition.

Founded by husband-and-wife team Johanna and Juha Mikkola in 2014, Wyncode was the area's first coding boot camp. It now has more than 700 grads--many with no previous computer-science background--who are working in over 300 tech companies, including local players like CareCloud, Magic Leap, and MDLive.

 

The first U.S. outpost of the global nonprofit accelerator-alternative, Endeavor Miami doesn't take equity and focuses on "scale-ups"--companies with the demonstrated business traction to deliver exponential growth--like edtech firm Nearpod.

Destination: Denver

I wrote an insider's guide to Denver's start-up scene for the March/April issue of Inc.   See here for the online version. 

Many are drawn to Denver--Inc.'s No. 8 Surge City--for its laid-back, weed-friendly culture, which certainly doesn't stop with its plethora of cannabis startups. Here's everything you need to know about the city's entrepreneurial scene, from which investors to meet with to where to do Bend and Blaze yoga.

Hot Deal Spots

Entrepreneurs and investors take meetings at Denver Central Market, a warehouse-turned-gourmet food hall in the heart of the River North (RiNo) district, which flaunts a creamery, a butcher, a bakery, a fish­monger, and a wood-fired pizzeria. "It's slammed," says Tom Higley of early-stage accelerator 10.10.10, "but you can always find a seat." 

The Commons on Champa, formed by a public-private partnership four years ago, is a hub for early-stage startups that provides free co-working space, with the option to rent out conference rooms and event space. 

Cultivated Synergy is where cannapreneurs congregate. This lively co-working space in the RiNo district has communal work­spaces, five private offices--occupants include a concentrates company and a payroll firm--and Bend and Blaze yoga. At night, it transforms into an event venue where even non­members can attend everything from beer tastings and bat mitzvahs to budtender-appreciation parties. 

 

Neighborhoods

Tech execs and employees tend to work and live in bustling LoDo (Lower Downtown), given its proximity to co-working spaces CTRL Collective and two WeWorks, Facebook and Slack outposts, the commuter rail to the airport--and Kimbal Musk's restaurant, the Kitchen.

The RiNo Art District, formerly a manufacturing neighborhood, is home to design studios, architecture firms, art galleries, and startups, like online interior-design marketplace Havenly.

CBD (no, not that--the Central Business District) was once a neighborhood just for finance and energy stalwarts. Today, startups including Geospiza, Nanno, and Salt have colonized the area.

STATS 

$27.02

Average cost per square foot of office space for the Denver metro area.

Source: The Downtown Denver Partnership

45

Number of co-working spaces in central Denver.

Source: The Downtown Denver Partnership

216

cannabis dispensaries and 272 indoor-grow locations reside in Denver.

Source: Excise and Licenses, City and County of Denver

 

Red Flags 

The city has yet to see a unicorn. "We'll get seed and Series A funding, but then usually have to raise capital from the coasts," says Paul Foley, managing director at SmartCapital. When it comes to VC capital, Foley estimates that New York City gets 20 percent, Northern California gets 40 percent, and Denver gets a meager 0.6 percent. "So companies here exit earlier," he says. "You get faster, smaller exits."

 

The Players 

 

Chris Onan, a co-founder of Galvanize, a Denver-based national coding school, is a strategy consultant-turned-venture capitalist who has invested in more than 200 companies. Onan can typically be found linking startups in the Denver-Boulder tech scene with talent or capital. "He's a super­connector," says Erik Mitisek, co-founder of Denver Startup Week. "He's our VC prince of the city."

Jenna Walker.CREDIT: Laura Murray

 

Jenna Walker was a professional photographer before co-founding online photo book Artifact Uprising. She sold her Denver-based company to VSCO in 2014, and recently became entrepreneur-in-residence of Techstars Sustainability in Partnership with the Nature Conservancy, which backs 10 entrepreneurs per year, like those behind Node, a Seattle-based company that makes eco prefab homes. 

Erik Mitisek.CREDIT: Courtesy subject

Erik Mitisek, the chief innovation officer for Colorado governor John Hickenlooper and former CEO of the Colorado Technology Association, is indispensable when it comes to startups in this town. He co-founded Denver Startup Week, launched the Commons on Champa and the online booking agent Next Great Place, and is now president of financial software company IMAgine Analytics.

 

Brands to Watch 

Jaclyn Fu and Lia Winograd launched Pepper, maker of bras for small-chested women, in 2017. "Most bra companies design for a single standard size: 36C," and then scale it up or down, says Fu. Pepper fixes the "cup gap." 

If you're still searching for your ideal cannabis, order a genetic test from Green Genomix. The early-stage company, founded by Jackson Rowland, will send a DNA collection kit to analyze genetics like CB1 receptors, and then provide a report revealing which strain, consumption method, and ratio of CBD to THC is best for you. 

Amy Baglan was on OkCupid and Match, but "it was such a sad experience," she says. An avid yogi with a regular meditation practice, in 2015 she launched MeetMindful, a dating app for the mindful-living crowd. 

Founded by Bryan Leach in 2012, Ibotta makes a shopping app that allows people to earn cash back on everyday purchases. It's one of the largest consumer tech companies in Denver, with 500 employees. 

CREDIT: Aaron Meshon

 

Talent Pipeline

University of Denver's Project X-ITE runs an entrepreneurship workshop series, an incubator, and an accelerator that has produced startups including Boobi Butter, which makes breast-care products and encourages women to get regular breast exams.

Accelerator and venture fund Canopy­Boulder has invested in a slew of cannabis-related companies, including digital signage outfit GreenScreens and Würk, a payroll company. 

Early-stage accelerator 10.10.10 invites 10 successful serial entrepreneurs to Denver to solve one of 10 "wicked problems" in 10 days. Graduates include Spout, maker of a device that can be used with a smartphone to analyze the levels of lead and other contaminants in a drop of water.

 

Recent Big Exits 

$2 billion SendGrid, to Twilio (2018)

$1.68 billion ViaWest, to Peak 10 (2017)

$230 million Craftsy, to NBC Universal (2017)

 

Recently Funded Startups 

Welltok, a health care software company, raised $75 million in 2018, bringing its total funding to a reported $251.7 million.

CyberGRX, a cyber-risk platform company, raised $30 million in 2018.

Galvanize, one of the largest coding schools in the United States, raised $32 million in 2018­--bringing its total funding to more than $167 million--and then acquired San Francisco-based Hack Reactor.

 

 

 

 

 

 

 

 

 

 

 

Green Zebra: the Healthy Convenience Store

Lisa Sedlar, founder and CEO of Green Zebra, an Oregon-based healthy convenience store chain 

 

I wrote about Green Zebra for Inc.

 

Green Zebra is the anti-7-Eleven.

The healthy corner-store chain, which is known for grab-and-go salads and kombucha slurpees on tap, is based in Portland, Oregon, and now has three outlets. It's also a rising star in the convenience store market, which in 2018 accounted for $138 billion in U.S. sales, according to research firm Nielsen. However, the company's founder says its good food aspirations extend far beyond dominating the local-foods-obsessed Pacific Northwest.

"In the future, I hope that every urban neighborhood has a Green Zebra," says founder and CEO Lisa Sedlar. "Oftentimes, a neighborhood only has a traditional convenience store and there's no quality food to be had."

 

Six-year-old Green Zebra--named after an heirloom tomato that was bred in the Northwest--has a noble mission: make healthy food convenient and accessible for all. Sedlar came up with the concept--an inspired hybrid of Whole Foods and 7-Eleven--when she lived in Boulder and worked as a sales and marketing executive at a pharmacy and wellness company. From her office, which abutted the University of Colorado campus, she'd watch dumbfounded as college students returned from bike rides in the Rockies only to grab junk food at the local mini-mart.

She wondered why no one was making healthy snacks convenient to access, but she kept that thought in the back of her mind because in 2005 she was recruited to be the president of Portland-based grocery store chain New Seasons.

Then, in 2013, she made her move--opening her first Green Zebra in the North Portland neighborhood of Kenton. Since then, two others shops have opened: one in the Lloyd District and one at Portland State University. (A fourth opens in Southeast Portland in mid-2019.) 

DANIEL CRONIN

 

As at 7-Eleven, snacks are within reach but instead of sugary slurpees and hot dogs, you'll find superfoods like broccoli salad with kale, dried cranberries, cabbage, walnuts, chia seeds and ground turmeric, and chimichurri freekeh, an ancient grain that topples even quinoa in the protein and fiber categories. It's all made from scratch with local ingredients, of course. Each 5,000-square-foot store is also stocked with organic produce, a curated beer and wine selection, and regionally-sourced meats, milk, and cheeses.

Naturally, costs are higher at Green Zebra than at other corner-store chains, but Sedlar is attempting to tame them. The company partners with local farmers and brands to try to keep prices affordable--and it offers a 10 percent discount to SNAP recipients, 10 percent off for seniors every Tuesday, and 10 percent off for students every Wednesday. Ideally, the goal is to open in "food deserts," which are neighborhoods that are short on grocery stores. 

Adam Haber, an avid startup investor based in East Hills, New York, came across Green Zebra on equity crowdfunding platform CircleUp. He met with Sedlar and admired her zeal for healthy food and walkable communities; then he visited the Kenton store as a mystery shopper. "The employees are engaging and believe in the mission. People really love working there," he says. "I couldn't find the chink in their armor." He has invested in the company twice. "I wish there were a Green Zebra in my town," he says. 

Maybe, someday soon, there will be. Sedlar is amidst a Series B funding round to raise $10 million, and is planning to open three stores outside Oregon next year, starting in Seattle. Eventually, she hopes to expand to the East Coast.

While it will take many years before Green Zebra can reach 7-Eleven's level of market domination, with more than 9,000 stores, that's all right with Sedlar. Like the Green Zebra tomato, Sedlar's chain is OK with growing organically.

The Green Rush

Turns out, there's lots of money to be made by servicing the companies that are growing and selling legal weed.  I wrote this piece for the November issue of Inc. 

 

Marijuana has had a shady past, but it's on the cusp of having a very conventional future. In 2017, U.S. consumers spent $8.5 billion on legal cannabis, a number projected to grow to $23.4 billion by 2022. With that growth has emerged an entire ecosystem of startups that support the less sexy side of cannabis. Not the luxury dispensaries or rose-hued vape-pen companies, but the infrastructure that keeps them going--from software systems to package-design firms. As legalization continues to spread--it's now permitted in 31 states, Washington, D.C., Guam, and Puerto Rico--so will the B2B industry solving cannabis's thorny challenges.

The Instagram Effect 

Advertising regulations vary from state to state, but most national publications won't accept ads--and neither will Facebook. Instagram, however, generally does not flag cannabis content, so it has become a critical marketing tool.

Cannabis journalist Ricardo Baca has Grasslands, a well-respected cannabis PR firm in Denver. New York City-based North 6th Agency represents a handful of cannabis com­panies including BDS Ana­lytics and venture fund Canopy, both in Boulder, while San Diego-based CMW Media focuses on pharma­ceutical cannabis.

How High Will You Get? 

In states where cannabis is legal, every bit has to be tested and labeled for levels of THC (tetra­hydrocannabinol, the substance that produces a high) and CBD (cannabidiol, which does not produce a high), along with, in many cases, pesticide residues, contaminants, and fungus. If a farm's crop doesn't make the grade, it's not allowed to sell it.

A handful of regulatory-driven testing labs have launched, including Cascadia Labs in Oregon, Pure Analytics in California, and Evio Labs, the largest publicly traded testing company, with nine sites.

The Future Is Female

Since female plants produce much higher levels of THC and CBD than males, growers always cull the males. Traditionally, cannabis growers "grow out" crops, which takes six to eight weeks, to determine the sex.

Portland, Oregon-based Phylos Bioscience, which is mapping the genome of cannabis online at the Galaxy, sells a DNA "sex test," which allows growers to quickly and accurately identify sex. "It saves a lot of money spent on feeding, watering, and lighting the males," says Phylos co-founder Mowgli Holmes, who has collected samples from 80 countries, making Phylos's database of cannabis genetics the largest in the world.

Continue reading my story at Inc.'s site.  

 

Love the Wild by Saving It

 

Love the Wild's clever packaging. The delicious sauces are frozen in the shape of hearts. 

I must admit: as an Oregonian who has subscribed to a wild salmon share for the last 3 years, I'm not a fan of the idea of farmed fish. I had this naive and outdated notion that all fish farms are crowded, dismal places, teeming with sea louse. In 2010, I had read in Paul Greenberg's book Four Fish, The Future of the Last Wild Food that farmed salmon had a terrible feed-to-conversion ratio: typically, farmed salmon need to eat six pounds of wild fish for every pound of flesh. But that has changed over the past eight years as some fish farms have found alternative feeds. 

According to the Global Salmon Initiative, the average salmon farm today has a feed-conversion-ratio of 1.3:1. Kvarøy Fiskeoppdrett in Norway, which a sustainable seafood company called Love the Wild began sourcing from last year, is replacing fish meal with microbial proteins, algae-based oils, and grains, making their feed-conversion-ratio an impressive 0.47 to 1.   I write about Love the Wild in the June issue of Inc. (pg. 48 if you have a subscription).  Here's a PDF of my piece.

Download INC_0618_Annotated

Meanwhile, I'm not quitting my Fish CSA, but I'm also going to be more open-minded about trying sustainably-raised farmed fish. Even Paul Greenberg agrees that we cannot live on wild fish stocks alone. Last year he was interviewed for NPR's the Salt about his Frontline documentary the Fish on my Plate and he said, "People often compare wild fish to farmed fish, but what we should really be doing is comparing fish to other forms of protein."  Beef is way more resource-heavy than farmed fish. Love the Wild founder Jacqueline Claudia told me something similar.

"I’m not trying to win against wild fish. Truth be told: It’s some of my favorite fish. For me, it's farmed fish vs. farmed pork, farmed chicken, and farmed beef," she told me. "Great farmed fish is your daily driver—that’s what you eat during the week. On the weekend you get something wild and sustainable and you celebrate its terroir."  

 

 

 

The Secret Ingredient for America's Most Loved Sea Salt? A Failed Tech Startup

 

 

 

I wrote about Ben Jacobsen and his Oregon-harvested artisanal sea salt for Inc.'s May issue. 

 

Netarts Bay, a protected estuary on the Oregon Coast, is an ideal spot to harvest salt.                [Photo: Carlos Chavarría]

While attending business school in Copenhagen in 2004, Ben Jacobsen fell in love with Maldon sea salt, the flaky finishing salt prized by chefs. Returning to the United States--landing in Portland, Oregon--he was shocked to find that no one here was harvesting anything like that high-end sea salt.

After his mobile-app-discovery startup went belly-up, Jacobsen began lugging 275-gallon wine totes of seawater from Netarts Bay back to his home in Portland, where he re-created the laborious (and messy) process of evaporating the water to make salt. "I destroyed cookware and pots and pans and made a mess in the oven and everything else," Jacobsen says. "It was definitely a learning experience." Today, his category-defining American flaky sea salt is the favored salt of celebrity chefs.

The process of salt-making is now much more efficient at Jacobsen's 6,000-square-foot production facility on the Oregon coast, where the company has built custom equipment. Jacobsen's 42-person crew harvests 18,000 pounds of salt per month, which is then sent to the warehouse in Portland's Central Eastside to be packaged and shipped out to Williams Sonoma, Whole Foods, and thousands of other retailers across the country. "Like the people who went to California 240 years ago and wondered if it was possible to grow grapes and make wine there," says Jacobsen, "we're the first in our category to make great salt in the U.S. mainstream."

Continue reading on Inc.'s website. 

Portland, Oregon: the Insider's Guide to the Startup Scene in this Highly Caffeinated Pacific Northwest City

My guide to Portland's energetic startup scene is in the March/April issue of Inc.  

 

CREDIT: Zack Spear via Unsplash

Portland, Oregon has become one of America's hottest destinations for entrepreneurs—thanks in part to its vibrant startup scene. Here's a guide for navigating who to know and what to see in the highly caffeinated Pacific Northwest city.

Talent Pipeline

Co-founded by Nike veteran Ellen Schmidt-Devlin, the University of Oregon's 18-month sports product management master's program on designing, producing, and marketing sports products connects aspiring entrepreneurs with angel investors at Oregon Sports Angels, founded by fellow ex-Nike employee Kate Delhagen.

 Portland Community College's intensive, 14-week "Getting Your Recipe to Market" course ends with students pitching products to local grocery chain New Seasons. Pitches that ended up on New Seasons' shelves include TanTan Foods' vegan Vietnamese sauces, Salsas Locas Mexican Foods, and Brazi Bites, gluten-free cheese bread.

$98,146

Average salary for a software engineer

Source: Glassdoor

 

$33.67

Average price per square foot for office space in the Central Business District

Source: Melvin Mark Commercial Real Estate

 

78

Number of Certified B Corps in the greater Portland area

Source: B Lab

 

12

Number of co-working spaces in Portland

Source: Glassdoor

 

Who to Know

 

Angela Jackson

CREDIT: Courtesy Ecotrust

 

Angela Jackson is the executive director of Portland State University's Center for Entrepreneurship and its business accelerator, and co-founder and managing director of the Portland Seed Fund, which invests in early-stage Pacific Northwest-based companies. PSF's portfolio consists of 78 companies, including Indow Windows (which makes energy-saving window inserts), software firm Cloudability, and apparel maker Wildfang. Successful local exits include Better Bean, GlobeSherpa, and eyewear startup Sightbox.

"Because our initial investments are small, we are able to take risks that others feel they cannot," says Jackson. "We're in it for the long haul."

To continue reading, go to Inc.'s web site.