Harvest Automation Lays New Roots in Billerica

It seems as if the type of person who helps dream up a great product or launch a successful company is never satisfied. Commonly, the same people bounce from startup to startup, dedicating their time and resources to ever-changing, innovative projects. (Image courtesy: http://bit.ly/8YPbBH)

Charles Grinnell, formerly of DEKA Research and Development Corp., the company that created the Segway, and Joseph Jones, formerly of iRobot, the company that created the Roomba, have come together to work towards developing a robot for use in wholesaler greenhouses and nurseries. In their new venture, Harvest Automation Inc., Grinnell serves as CEO and Jones serves as CTO.

Recently, Harvest Automation relocated from Grinnell’s garage to a new, 6,000 square foot headquarters in Billerica, MA. The startup financed the move in part by using some of the $4 million in funding the Massachusetts Technology Development Corp., Life Science Partners and MidPoint Food & Agriculture Fund provided. Presently, Harvest Automation employs fifteen engineers and is actively seeking more. By 2011, the company anticipates hiring at least ten additional engineers to fuel its expansion.

Harvest Automation’s first goal is to create a robot for use in the warehouses of wholesale plant growers, which will complete “dangerous and dirty jobs,” as well as repetitive tasks. In some industrial warehouses, for example, employees work full-time potting acres of plants by hand.

“Our robots can move these heavy containers one at a time, but with great speed,” Wade Appleman, Harvest Automation’s vice president of marketing, explained. “We are in prototype development now, but will be in the market in 2011.”

According to the company’s homepage, Harvest Automation’s new robots will fit into a new category of machines dubbed Agile Mobile Robots, or ARMs. These ARMs are “designed to work in unstructured environments and perform a wide range of tasks safely alongside humans to improve working conditions and productivity.” (Image courtesy: harvestautomation.com)

Harvest Automation is in good company, having started in the same place as countless now famous bands and notable businesses, such as Microsoft. Although, it would stand to reason that potential investors will look more seriously at the startup now that it has a more customary headquarters. Considering the world-wide spread of wholesale plant growers, hopefully Harvest Automation will be greeted with substantial demand once its ARMs enter the market, allowing it to expand its Massachusetts operations.

[Sources: http://bit.ly/8YPbBH, http://www.harvestautomation.com/]

Forecast Calls for Bright Economic Future

Evidence has begun to pile up, making it difficult for even the most skeptic to deny that the economic recession has ended and recovery has begun. While the estimates on just how long a full national recovery will take span various numbers of years, it is encouraging to learn that Massachusetts is ahead of the curve. (Image courtesy: http://www.neepecon.org)

An economic forecast released at the New England Economic Partnership’s (NEEP) conference in Boston this month showed that Massachusetts fared better than the national average during the recent recession and will likely see a full recovery faster than the national average.

“The state's recovery appears to be firmly on track,” the NEEP’s forecast said in regards to Massachusetts. “Payroll employment should grow robustly in the second and third quarters, boosted by the hiring for the 2010 Census.”

Most economists agree that the nation-wide recession began in January of 2008 and lasted 20 months. Massachusetts’ economy, however, remained unaffected until April of 2008, meaning the state’s localized recession lasted only 16 months. Furthermore, only 5% of Massachusetts’ jobs were lost to the recession, with the state’s unemployment rate rising to a maximum of 9.5%. Nationally, 6% of jobs were lost, with the national unemployment rate rising to a maximum of 10.1%.

At the current pace at which the state’s economy is predicted to expand, there will be over 200,000 new jobs in Massachusetts by 2015. Moreover, just four years after its start, by the middle of 2013, the state will have recovered all jobs lost due to the recession. This fact is particularly positive when compared to the “downturn” of the early 1990s, from which it took the state six years to recover, and the “technology bust” of 2001, from which the state has never fully recovered.

During the first quarter of 2010, Massachusetts created approximately 12,000 new jobs. In part because of this increase, from March to April, the state’s unemployment rate dropped slightly from 9.3.% down to 9.2%.

“This is super, surprising, good,’’ Alan Clayton-Matthews, professor of economics at Northeastern University, expressed. “It’s hard to believe that these job numbers are all real, but everything we are looking at supports positive and strong job growth.’’

The NEEP’s report also outlined a handful of negative issues facing the state. When considering unemployed individuals and those newly entering the workforce, nearly 300,000 citizens are without jobs. In fact, the report projected that Massachusetts’ unemployment rate will remain at about 9% through at least 2011. Additionally, as housing tax credits expire, home values are expected to level off, as are sales of homes in general. (Image courtesy: http://bit.ly/cPXjJk)

Mark Zandi of Moody’s Economy.com, and attendee of the NEEP’s conference, reported being optimistic about the economy as a whole, but described the ever-increasing national debt as the “big elephant in the room.” Unless the government does something to curtail its loses, such as by increasing taxes, Zandi fears the deficit may prevent a complete, national economic recovery.

“These numbers may be too good to be true,’’ Andre Mayer, senior vice president for research at Associated Industries of Massachusetts, chimed in, “but they still confirm that we are on positive trend.’’

Hearing positive information about Massachusetts’ economy is always uplifting, but the concerns of more cautious economists, such as the growing budget deficit, must still be acknowledged. Although, it has essentially been demonstrated that an economic recovery has begun, to continue moving forward everyone must be vigilant and proactive. We will recover, but we are going to have to fight for it.

[Sources: http://bit.ly/a57dgE, http://bit.ly/bQHkWz, http://bit.ly/cJJAkT]

Terrafugia's "Roadable Aircraft" Gets $2M Funding

Most would agree that today’s technology is impressive. Increasingly smaller and more powerful computers have allowed for the creation of such handy devices as smart phones and MP3 players. The flying car, though, is one modern convenience we have been promised by so many sci-fi movies and scientists since the 1950s, but that just never panned out. However, Woburn, Massachusetts-based, Terrafugia Inc. makes the next best thing: “a roadable aircraft.” (Image courtesy: www.terrafugia.com)

Founded in 2006 “by award-winning MIT-trained aeronautical engineers and MBAs,” Terrafugia’s mission is to “provide innovative solutions to the challenges facing personal aviation.” The company’s first creation was the Transition®, a vehicle whose wings can be extended for flying, or folded in for street driving.

This week, Terrafugia brought in $2 million in Series B financing. The names of the twenty investors involved in this round were not released to the public. According to Terrafugia’s CEO, Carl Dietrich, the new funding will be put towards the creation of a more developed prototype.

“We are building a second prototype vehicle, and that vehicle we are looking to fly around a year from now,” Dietrich said. “It’s an improvement in almost every respect to the vehicle. This will be a vehicle that is much, much closer to the actual production vehicle than the proof of concept vehicle.”

Presently, Terrafugia is considering relocating from Massachusetts in order to secure funds for a production facility. A $4.4 million offer to relocate to Dayton, Ohio is among the front-running deals the company is considering. (Image courtesy: www.terrafugia.com)

“We’re still talking with a number of different locations, including the folks in Ohio, and this funding round is not tied to any particular location,” Dietrich explained. “Obviously, this is great
for us.”

Terrafugia stressed that technically its vehicles are not “flying cars,” but “roadable aircraft.” This may seem like splitting hairs, but the company’s website explains that the Transition® is not intended to replace standard cars, but merely to make owning a plane more convenient and less costly.

Pilots who run into unfavorable weather during a flight can simply land the Transition® and finish their trip on the ground, Terrafugia’s website explains. Furthermore, Transition® owners will not have to rent a hanger for the vehicle, but can instead store it locally and for free in their home’s garage. Finally, while the Transition® is powered by an aircraft certified engine, it runs on standard automotive fuel, which is cheaper than aircraft fuel.

Consumer release of the Transition® is planned for 2011. According to Terrafugia’s website, by 2015, the company expects to be manufacturing between 300 and 400 vehicles annually and employing an estimated 400 people in jobs ranging from skilled manufacturing to high tech
engineering. (Image courtesy: www.terrafugia.com)

Terrafugia makes the idea of a flying car, or “roadable aircraft,” as they prefer, seem perfectly reasonable--maybe even practical. While its recent Series B financing will hold Terrafugia over for a bit longer, it would be a shame to see such an innovative company relocate to Ohio in order to secure additional funding. With any luck, investors will come forward to help finance a local manufacturing plant for Terrafugia, leading to the creation of new local jobs and keeping this cutting-edge company in the Bay State.

[Sources: http://bit.ly/aXky2H, http://bit.ly/bpRtp6)

An Entire District of Innovation Comes to Boston

Anyone who has ever looked into purchasing Boston real-estate knows the sort of staggering price tags potential buyers face. For startups hoping to enter the city, ensuring they find the optimal location before signing a lease can be a long and intimidating process. Committing to opening in an incorrect location could be a costly, if not unrecoverable, setback. (Image courtesy: www.innovationdistrict.org)

Last week, Boston mayor Thomas Menino relieved some of the pressure on innovative startups looking to move into the city. At a breakfast during the New England XPO for Business conference, Menino announced the development of a 1,000 acre parcel of land on the coast of South Boston and the Marine Industrial Park into an “Innovation District.”

Spencer Trask & Co., a local venture capital firm, promised to provide $25,000 towards the cost of a startup opening in the Innovation District. The firm plans to determine which startup will receive the funds via a competition in July. Next year, Spencer Trask & Co. pledges to offer an additional $25,000 to a winning startup to help maintain interest in the district.

As his own way of building interest, Menino will personally direct “university and hospital presidents and their real estate staffs” through the Innovation District this summer. The main objective of this tour, as explained by Menino, will be to showcase two specific areas of the district that will soon be ready for requests for proposals. (Image courtesy: www.spencertrask.com)

Although a startup will surely exhaust the $25,000 Spencer Trask and Co. is offering in short time, the sum does sweeten the deal for companies considering opening in Boston. Perhaps the larger benefit that will come from the Innovation District is the grouping of similar companies. Just as financial firms build headquarters in the financial district, now innovative firms can rest easier knowing they are selecting a fitting property when opening in the Innovation District.

[Sources: www.innovationdistrict.org, http://bit.ly/aCWDU5, http://bit.ly/bQxXwW]

New CFO Leading Emptoris Towards IPO Goals

It is unrealistic for any company to think that every day its doors are open business will proceed as planned. Despite everyone’s best efforts, the occasional negative event is simply unavoidable, but what differentiates a strong company from a weak company is its ability to recover from unfavorable situations and to get its business objectives back on track. (Image courtesy: http://bit.ly/9t2NJ3)

After losing a significant patent lawsuit and being sold off by its investors to private equity firm West Coast in December of 2008, Burlington, Massachusetts’ Emptoris Inc., is now making efforts to expand in anticipation of an IPO in 2011.

To spearhead the company’s financial activities, Emptoris selected Bradley Miller as its new Chief Financial Officer. Miller has more than 24 years of business experience, 18 years of which he served as CFO of public companies. Most recently, Miller worked at Aspen Technology, “a leading supplier of integrated software and services to process industries,” which has more than 1,500 customers in 21 countries.

“We’re extremely pleased to have Brad Miller join Emptoris as Chief Financial Officer,” said Patrick D. Quirk, President and Chief Executive Officer of Emptoris. “His experience as a CFO with fast-growing, multi-national public technology companies will serve Emptoris and its customers well as the company reaches its next stage of growth.”

In a time when Emptoris is seeking to expand its operations and workforce in part via acquisitions, Miller’s history makes him a particular fitting CFO. While serving as CFO of Viissage Technology, Miller oversaw the purchase of Integrated Biometrics and SecuriMetrics as well as a $770 million merger with Indentix. (Image courtesy: http://bit.ly/aFDJGi)

“Emptoris has steadily expanded its global organization and market share, and is well positioned to extend its growth, both organically and through strategic acquisitions. Brad brings the specific skills and experience necessary to help Emptoris capitalize on such opportunities and to extend the company’s position as a market leader,” CEO Quirk assured.

Miller launched his career working for Coopers & Lybrand (now a part of PricewaterhouseCoopers). During this period, he earned his CPA credentials and an MBA from the University of New Hampshire’s Whittemore School of Business and Economics.

“I am excited to be joining the world-class leadership team at Emptoris – and to have the opportunity to be part of an organization that is growing the bottom line for its Global 2000 customers,” Miller said. “I look forward to helping Emptoris strengthen and grow its world-class organization.” (Miller image courtesy: http://bit.ly/9t2NJ3)

With a main goal of enabling “better decision-making through business optimization,” Emptoris markets a six-component software suite including programs that focus on spending analysis, sourcing, services procurement, supplier risk analysis, and contract management. Presently, Emptoris has sold its suite to Global 2000 companies in more than 90 countries. Key customers of Emptoris include American Express, Kraft, Motorola, Samsung, and Vodafone.

Now, well past the point of recovering from its unfavorable lawsuit in 2008, Emptoris is on its way to realizing its expansion goals with Miller as its new CFO. Emptoris is a clear example that, while strong companies may not be immune to setbacks, they can overcome them and go on to reach high levels of success.

[Sources: http://bit.ly/9t2NJ3, http://bit.ly/cG1KBV, http://bit.ly/cISrxZ]

C-Crete Cements its Rank as $100K Winner

Getting a business off the ground takes far more than simply having a good idea. Although determination and drive are key requirements, a more material prerequisite is funding. Without money, it can be nearly impossible to grow your company into a thriving enterprise. (Image courtesy: http://www.mit100k.org/home/)

C-Crete Technologies, a student-run startup that created a “nanoengineered” concrete that is stronger than standard concrete and reduces CO2 emissions, was awarded the $100 thousand grand prize in MIT’s Entrepreneurship Competition this week.

“For many years, the world has been looking for simple, scalable solutions to reduce the global carbon footprint and limit its impact on the environment,” explained Natanel Barookhian, C-Crete co-founder and MIT Sloan School of Management MBA. “We at C-Crete Technologies have developed a method for tackling this issue by targeting the production of cement, one of the most widely used materials on earth, while improving all of its core properties.”

From a pool of other strong contenders, such as a team that developed an insulin chewing gum, a panel of entrepreneurs, venture capitalists, and successful professionals, selected C-Crete as the competition’s winner, primarily because of the company’s strong business plan and product presentation.

“For the past 20 years, the MIT $100K has been inspiring entrepreneurs to pursue their passions and create businesses that will impact the world around them,” said Daniel Vannoni, Managing Director of MIT’s Entrepreneurship Competition. “The competition is an educational exercise that allows students to pursue the entrepreneurial path in a fairly risk free environment... In the end, we all win from the efforts of our competing teams.”

During its twenty-year lifetime, MIT’s Entrepreneurship Competition has funded the creation of 130 companies that have gained $770 million in venture funding, and generated over 2,500 new jobs. Some recent successful companies created from the competition include Akamai, C-Bridge Internet Solutions, Harmonix, and Brontes Technologies. (Image courtesy: http://bit.ly/abvcCx)

C-Crete was not the only team to walk away from the competition with cash in hand. Finalists, first runner-ups, and second runner-ups were awarded $20,000, $5,000, and $3,000, respectively. The competition’s audience favorite also received a $10,000 award.

A competition such as MIT’s is ideal for startups looking for their big break. In the end, even those companies that do not leave with funding benefit from the free publicity generated by the event. After all, pitching your idea to a crowd of people attending an entrepreneurship competition is an excellent way to catch an investor’s eye.

[Sources: http://bit.ly/bz1gXe, http://www.mit100k.org]

Interactive Data Sells for $3.4 Billion

When employees hear talk of a buyout, rumors begin to fly. Probably, the most pressing concern is if the purchase will result in redundant or unnecessary positions, ultimately leading to layoffs. Bedford, Massachusetts-based Interactive Data, top provider of financial market information, says there will be no need for employees to worry after its $3.4 billion acquisition by investment firms Silver Lake and Warburg Pincus. (Image courtesy: http://bit.ly/dBnxbv)

Presently employing over 500 workers across three locations in the Bay State, Interactive Data says that it will actually increase hiring following its sale, as its increased access to capital will allow for rapid expansion. The company will also maintain its Bedford, MA headquarters. Furthermore, after having purchased 14 companies in the past 13 years, Interactive Data says that it will be just as eager to seek out promising companies to acquire itself in the future.

“With the backing of Silver Lake and Warburg Pincus, we look forward to accelerating our momentum and further enhancing our capabilities, delivery platforms and technical infrastructure,” Interactive Data’s president and chief executive officer, Ray D'Arcy, commented.“I believe that the collective experience and expertise of these firms in the financial services and technology sectors will enable us to take our Company to a new level in terms of our size, capabilities and stature in the industry.”

Stockholders in Interactive Data will receive $33.86 per share of common stock, which is over 30% higher than the last price shares traded at before the company’s Board of Directors announced the company might be acquired. Assuming all standard closing conditions are met, the acquisition is expected to be completed by the end of the third quarter. (Image courtesy: http://bit.ly/bVLkt3)

Interactive Data employees will assuredly be glad to know their jobs are safe. Those holding stock in their employer will be even happier as their portfolios realize a dramatic appreciation in value. Overall, it seems as if only positives should come from this acquisition as the buyer and seller, and employees and shareholders all walk away better off.

[Sources: http://bit.ly/dBnxbv, http://bit.ly/d945OG]

A123 Systems to Recharge State's Job Market

While concern for their company’s well-being is often enough to motivate executives to perform their best, positive reinforcement can never hurt. Awards and other acknowledgments can go a long way, but cash bonuses and stock options are, of course, also customary. (Image courtesy: a123systems.com)

After gaining over $370 million from its IPO in September and increasing its revenues by over 30% from 2008 to 2009, Watertown, Massachusetts’ A123 Systems Inc. awarded its three top executives pay packages valued at over $1 million in 2009. Leveraging its patented Nanophosphate™ technology, developed from Massachusetts Institute of Technology concepts, A123 Systems has become “one of the world's leading suppliers of high-power lithium ion batteries.”

A123’s CEO, David Vieau, and the vice president of human resources and organizational development, Andrew Cole, both received pay packages valued at $1.5 million. Vieau’s package included a $277,700 bonus and $982,740 worth of stock options, while Cole’s package included a bonus of $98,427 and $1.2 million worth of stock options. The company’s vice president of the automotive solutions group, Jason Forcier, received the third largest pay package, at $1.3 million, which included $1.2 million worth of stock options.

“The fourth quarter capped off a record year for A123 Systems and our momentum is strong entering 2010,” CEO David Vieau said. “With our IPO proceeds in place and the closure of our DOE grant during the fourth quarter, we are investing aggressively in worldwide sales, R&D, and
manufacturing capacity.”

Over the next few years, A123 intends to create more than 250 new Massachusetts’ jobs as part of an $80 million expansion plan. A123 must attain its hiring goals by the end of 2014 in order to qualify for forgiveness of its $5 million Massachusetts Clean Energy Center loan. A large portion of the new jobs created by A123 will be at the company’s Hopkinton, MA manufacturing facility. According to Governor Deval Patrick, the company’s expansion will allow it to fill the role of assembling “trailer-sized units” that will store power for the Massachusetts’s electrical grid. (Image courtesy: http://bit.ly/dsThNm)

“For close to four years, A123 Systems has demonstrated its ability to manufacture advanced lithium ion batteries in scale and at extremely high quality levels, and we are now expanding our capacity to ensure customers and prospects that we can scale with them to meet expected strong demand in the years ahead,” CEO Vieau explained.

So, executives gain bonuses and stock options for keeping A123 well in the black, while the company as a whole gets a $5 million forgivable loan in return for a promise to increase its Massachusetts workforce and for producing batteries to help stabilize the state’s power grid. Once again, Massachusetts has found a way to support local technology companies, create new jobs, and improve the state’s infrastructure via a single smart investment.

[Sources: http://bit.ly/bN5Wxf, http://bit.ly/a0utph, http://bit.ly/9MaQWM]

Boston Company Increases Innovation by 12-Fold

One of the good things that has come from the economic recession is a renewed emphasis on innovation and creativity in Massachusetts. People have come together to develop unprecedented ways to carry the state into the future. (Image courtesy: twelvebytwelve.org/)

When Governor Deval Patrick asked people to do their part to “enhance competitiveness in the digital and information technology sector of Massachusetts,” innovative mentoring program 12x12 responded. The newly-formed, private company aims to launch 12 cutting-edge businesses through the creation of 12 teams, each with one CEO, one venture capitalist, and one entrepreneur. On their own, these partnerships could take months or even years to form naturally. By bringing all the vital parts of the equation together: experience, funding, and a seed idea, 12x12 plans to jumpstart the industry by creating companies that are engineered to succeed.

Ideally, the hand-picked and carefully constructed nature of the 12 startups, will make them appealing investments, which will draw millions in first-round funding. Already, LighterLiving, the first of the program’s companies, brought in $3 million in its A-round of funding.

An estimated 100 new Boston-area jobs will be created by each company for a grand total of 1,200 new positions. From there, Michael Greeley, founder of 12x12 and partner at Flybridge Capital Partners, predicts the parties involved will try to recreate the success of their first teams by either forming additional companies with their chosen partners, or at least seeking new partners to launch additional ventures.

Teams involved in 12x12s startups will meet at least four times throughout 2010, but will remain in nearly constant contact during the year to share progress and ideas. It is anticipated that the involved CEOs will take an active role by holding board positions in their respective new companies.

The CEOs selected for 12x12s program include: Colin Angle of iRobot, Jim Baum of Netezza, Jeff Bennett of NameMedia, Joe Chung of Allurent, Helen Greiner of CyPhy Works, Brian Halligan of HubSpot, Tim Healy of EnerNOC, Diane Hessan of Communispace, Scott Savitz of ShoeBuy.com, Brian Shin of Visible Measures, Ram Sudireddy of CHiL Semiconductor, and Michael Weintraub of Humedica. (Image courtesy: http://bit.ly/cwgJit)

The venture capitalists selected for 12x12s program include: Jon Auerbach of Charles River Ventures, Liam Donohue of.406 Ventures, Scott Friend of Bain Capital Ventures, Jamie Goldstein of North Bridge Venture Partners, Felda Hardymon of Bessemer Venture Partners, Matt Harris of Village Ventures, Mike Hirshland of Polaris Venture Partners, Eric Hjerpe of Kepha Partners, Bob Hower of Advanced Technology Ventures, Paul Maeder of Highland Capital Partners, Eric Paley of Founder Collective, and Carl Stjernfeldt of Castile Ventures.

Now, even the ideas to generate innovation in Massachusetts are in themselves innovative. The moment you hear about 12x12 you know that its plan simply makes sense. Often, the most successful relationships are those in which everyone has something to add and everyone walks away with something they want. That is exactly what 12x12 offers Massachusetts.

[Sources: http://bit.ly/diHet7, http://bit.ly/cdLwXE, http://bit.ly/cRt1pU]

Cormier Takes Leadership Skills to Nexage

Everyone knows that a simple change of scenery can help keep things fresh. Mobile advertising solutions developer Nexage acted on this idea in 2009 when it relocated from California to Boston to take advantage of the city’s “talent pool and success in mobile advertising.” Now, less than a year later, Nexage is changing things up again by electing Ernie Cormier as its new president and CEO. (Image courtesy: http://bit.ly/c6Dcis)

Not only does Cormier hold a B.S. in engineering from Worcester Polytechnic Institute and management certificates from the Harvard Business School and the Georgetown University Graduate School of Business, but he comes from a strong practical background in mobile content management. Previously, Cormier held advertising positions at Lagardere, Nextel Communications, and Virgin Media Inc. Additionally, Cormier is a board member of both Integrated Mobile Inc. and New Potato Technologies Inc..

“We are pleased to attract an executive of Ernie’s caliber to join Nexage,” Mike Baker, Nexage’s Chairman of the Board said. “He has a passion for digital content that comes through in his drive to innovate business models and solutions that enable publishers to successfully support content creation.”

Founder and former President and CEO, Devkumar Gandhi, will remain an active participant in Nexage. “I’m excited to have Ernie onboard. He has the vision, leadership, and management experience to drive Nexage’s next level of growth and scale,” Gandhi commented. (Image of Gandhi courtesy: http://bit.ly/blcklL)

Sometimes an anecdotal story of a company relocating from California to Boston speaks louder than any report about the city’s resources. It is great to hear that Nexage found what it was seeking in the Bay State and has acquired the leadership it will need to maintain its edge.

[Sources: http://bit.ly/c6Dcis, http://bit.ly/c5P62G]