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5.0. EDSR 08-13-2001 ` ' Item# 5 1��j • City of Elk River MEMORANDUM TO: Economic Development Authority FROM: Catherine Mehelich, Director of Economic Developmen DATE: August 13, 2001 SUBJECT: Strategic Industrial Marketing Plan Update Advertising/Marketing Activities The City of Elk River has been invited to participate in the MN Real Estate Journal and the University of St. Thomas Economic Development& Site Selection Real Estate Conference. The conference will be held October 16,2001 and will be marketed to over 15,000 readers of the MN Real Estate Journal. At a cost of$3,000, the City will receive a half page article and half page ad on the special conference insert in the MREJ and distributed at the conference, a table top exhibit at the event,logo on all event materials,participation on • community site selection roundtable, two bonus ads in the MREJ, and 5 free passes to the event. Only 5-6 cities will be asked to participate in the event at this level by the MREJ. MREJ anticipates attendance of 250 people including real estate brokers, property managers, developers and economic development professionals. This event will provide the City a "spotlight" position among key accounts for promoting industrial development opportunities. Related Article The attached August 2001 MinnesotaBusiness article featured business incubator graduate, CYMBET. The article highlights the Elk River Business Incubator, Elk River Investment Club and Anoka-Sherburne County Capital Fund as critical components to the company's growth and success. • S:\EDA\MARKETNG\UPDA 1'ES\8-13-01.DOC C '}' ,Y . t s v % 1 S11Vti ;:i.;+*-' X. 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',.4,2-0,1114,,,, ,,,,,.„., ,..,,,,,,.,4,-0'.;,- ''-: * t4:: 4 ;04'1 ''' - It # , 7 �� t PI�++€.,,.£d�� 3 3�3i'�,;�•?�, � k p" PHOTO BY david neiman , ,• II ��:,,u..s.b,y�,�.�.�.a,.,�r.Tt.r..��. � '� 1v.�,e,., m,.a:......,.,:,...,��+.a:s ,s.:.,_s.._,, >, _..i,� '3t.:,.,.,,#vx a,th.....3."J...333 .,..fir..>.._ , 1 Powerful Aspirations Overlooked by local VCs, Cymbet finds way to launch new battery technology BY STEPHEN DUPONT I he next time you pick up a pack of batteries at Target, and medical devices,such as hearing aids. I The company was co-founded slightly take a long hard look. That s because your concept of more than a year ago by Mark Jenson and batteries may never be the same—that is if an Elk River, Harlan Jacobs. Jenson is an engineer who Minn., start-up is successful in developing a new type of battery spent more than 20 years of his career with Honeywell International, with stints at i based on thin-film technology. - Intel, FSI, Honeywell spin-off, Nonvolatile oThe company is Cymbet Corporation, a smallest batteries, and, more importantly, Electronics, Inc. (NVE) (www.nve.com], and nine-person enterprise that is leveraging the chemistry of its batteries will allow for Union Semiconductor Technology Corp. $4.5 million recently raised from overseas nearly indefinite recharging (actually, about Jacobs is president of Genesis Business investors on its fast-track path to commer- 70,000 recharging cycles). Centers (www.genesiscenters.com], who has cializing thin-film battery technology. About a year away from actually manu- been instrumental in launching a number of Cymbet's batteries, if the concept holds facturing its first commercially viable prod- local start-ups through his incubator 44 true, will come with several twists—they uct, Cymbet anticipates that its batteries gram [see "Nurturing the Fire Within," will be manufactured to nearly microscopic will be used in a variety of applications,such MinnesotaBusiness,April 2000]. sizes offering double the power of today's as smart cards and paper, wireless devices, Jenson was initially introduced to the 24 i Spotting an opportunity in an emerging field of thin-film technology, founder Mark Jenson (left) and chairman Victor Weiss didn't take "no" for an answer. They traveled 7,000 miles around the world to find the capital they needed to found Cymbet. �:F'--°'' -;,��a.x,..�,'�w :s'. ",w:-.,�:a:.!._..�.. .��.:.i...,> �`..., ,�4w.., _..,,:.,...�..-,..�.�,�a.-..»a"c=_,�,.mn,.a u�.,��:.„ _ dynamic world of thin-film technology dur- another •important step—bringing in sea- Where most people are nearing retire - dynamic his employment with NVE (OTC: soned business managers up front. That ment, Weiss, who entered the Cymbet pic- NVEC) [see "Bucking the Odds," decision led to two long-time acquaintances tune in April 2000,couldn't resist the oppor- MinnesotaBusiness, December 1997.] during of Jacobs', Victor Weiss, a former Bemis tuniry for one more challenge. A chemical the late 1980s. But it wasn't until leaving executive who serves as Cymbet's chairman, engineer by training, whose career included Plymouth based Union Semiconductor and Brian Shiffman,a Control Data veteran a stop at Du Pont,Weiss spent the majority Technology Corp., a company that Jenson who serves as vice president of business of his career rising through the ranks of and several other Honeywell engineers development. Bemis Corp. founded in early 1999, that Jenson came up with a business idea based on the technology. Through various conversations with his network of supporters,Jenson learned about battery technologies being developed at Oak s A 9 9 i !III 9 i Ridge National Laboratory (www.ornl.govj a a � ;;, ;r �, w located in Oak Ridge,Tenn., a federal gov- „' ernment research institution that offers opportunities to license its technology. In ('' O O D \I r (� ■ reflecting on his experiences at NVE and \ L J uu Q U Union Semiconductor, Jenson realized that. YOU'L L K N 0 E H A C T L 7 H 0 W while thin-film battery technology had great u potential, the real challenge lies in establish- K MUCH M 0 N E I T 0 U H H U E. ing manufacturing processes to actually pro- duce commercially viable thin-film batteries. In early 2000,Jenson, armed with a busi- B D N E`W S , ness plan,officially hung his shingle out on a ■ i new .- business that he called Integrated Power a, Solutions,Inc.,which would later be renamed Y 0 U'L L KNOW E H H C T L Y H O W u U Q Cymbet. At the heart of the new company MUCH M 0 N E 7 you U H A lir E. ! business plan: 15 batterychemistrypatents licensed from Oak Ridge National Laboratory,matched with seven patents pend ing for manufacturing improvements. Sparking a Connection .�' Tenon's experiences with NVE and Union with marquette.com, you'll have all the information Semiconductor proved invaluable when you need to keep your business running smoothly. Our.web Jenson hooked up with Harlan Jacobs and the incubator that Jacobs' company man11 site is easy and very convenient. Plus, it can.save you time ages with the City of Elk River. 11,,,, and money:With marquetEe.com you can get instant balance 4 As Jacobs describes it, he was floored by ,, reports, transfer funds, originate ACH transactions an stop:,:f;is;4::::: ,,,,, 1,, the commercial potential of the technology that Jenson had identified. Jacobs, who payments.Sign up`now for marquette.corn's Business Web himself has experience in the thin-film Banking. For more information, visit us on the web at industry as the former CFO of FilmTec : :' -:'•1' Corporation, immediately helped Jenson www•masrquette.com anytime, any day. We'll be open for t raise about $300,000 through a combing- business. MargUette.Cortl. Nonstop banking tion of investments from the Anoka- Sherburne County Capital Fund and the Elk River Investment Club, which consists rIt kr-ifw^w:.4+�d+ai.-.'rH4 l.a: +-tm., �+'hii� of a group of private angel investors. The Marquette Banks caveat for accepting this funding—the new business must remain in Elk River. With Jacobs' guidance, Jenson took *other terms and conditions may apply. Member FDIC ©Marquette Bank,N.A.2001 1 Company Headquarters: Revenue/VC Funding: Inception: Employees: Cymbet Corporation Elk River None/$4.5M 1999 a 4.`4' Most recently, Weiss was chairman of "What most impressed me was MacTac Engineered Products, a subsidiary `,,,, of Bemis, which included the joint inven- Mark Jenson himself. He's like $ o tion and development of the battery tester » U that comes with some of today's leading a poster child for entrepreneurs. •,°o consumer batteries. By the way, Weiss —Harlan Jacobs, founder, w claims credit for the new name,a collection, he says, of prefixes and suffixes that mean Genesis Business Centers nothing, but nonetheless, didn't resemble F any other company's name. "Mark recognized that he didn't have the will be critical to attracting and retaining the Collaborative and NetSuds—which has P managerial experience to take this company employees and establishing a new culture been hit or miss. (NetSuds was helpful in to where he and Harlan envision. That's that reflects the passion, vision, and entre- connecting the company to a Silicon Valley where our experience comes in,"adds Weiss, preneurial spirit of the core executive team. chipmaker.) Instead, the company had to go "we've been through this before." "We need to be very picky in this early nearly 7,000 miles to Finland and Israel to o "What most impressed me was Mark stage,"says Shiffman,"we need team players obtain start-up financing. , Jenson himself," Jacobs says. "He's like a who want to learn,take risks (not gambles), "We decided to invest in Cymbet because poster child for entrepreneurs. He works and who have the confidence to work in a of its exciting technology and its strong . hard. He's a delight to work with. And, start-up setting." management group," says Zwi Vromen, a most importantly, he's open-minded and Jacobs also began the hunt for venture spokesperson for the Millennium Materials willing to call on the resources he needs to capital. Unfortunately, the new company Fund. The focus of the Millennium n' make his vision become a reality." met stiff resistance from local venture capital Materials Fund, based in Israel, is to invest It's this experience that Shiffman believes firms. Jenson even tried networking through in projects which may later feed technology 0 a - , ..r w �* -,% It's no surprise—we are perfect for groups! Leaders ,,,e-:-.-:--, , , ,., „ Y wanted . :, ,__7-- -- (No experience necessary.) h x y. Developing effective leaders with vision,insight and the ability I to motivate is what our Master of Arts in Leadership program is - all about.If you're a working adult who is career oriented, self ' disciplined and leadership motivated,this program is designed I specifically for you.Call 612.330.1786 for information. ., fes' _ •Traditional college setting •Outstanding faculty.and staff ' . '-w: ;; •Tailored to working adults •Small class size y a •Evening-weekend schedule • No entrance exam 21 ... rte'"'''' ! ' . Hang on y to your�� habits! Groups Save up to 20% :-, AUGSBG � �j+N'�.. / Reserve now/ Confirm later! Corporate Leadership Series C O L L E G E ��l/.'�""i Bring your group to the hottest dub in town for some for Supervisors starts October sassy music.down-home food by O'Amico&Sons -, 2001.For details,call or visit Master of Arts in Leadership w- opens November 2001. and a smokingood time. , LL 612-339-1399 Z our website today. Learn More. A GROUPS OF 14 OR MORE,CA _ W1NV1r tt r urge+u ma r Fewer than 14.call Ticketmaster at 612-673-0404 r'7 HEY CITY THEATER•HENNEPIN THEATRE DISTRICT•WWW.HEYCITY.COM A college of the Evangelical Lutheran Church in America.Augsburg College is an equal education/employment institution, s 26 E 1 Business Leader: Description:tion: ,We b site: r: Mark Jenson, founder and CEO Developer of thin-film, rechargeable batteries www.cymbet.com t ' or products to its key investors,a who's who recent $4.5 million round of financing, the Other upcoming milestones include gen- rg list of European industrial giants, including determination of Jenson, Weiss, and erating its first sale,which Shiffman believes Bayer, Siemens, Henkel, DSM, Bekaert, Shiffman will cast all doubt aside. will occur within the year, and establishing 0, and Schott.The fund's policy is to invest in With an eye toward raising upwards of profitability within three years. Meanwhile, 0,,?.- new materials aiming at the microelectron- $50 million or more to begin manufactur- anticipating the next phase in the company's ro ic, communication, and life science indus- ing, the most immediate milestone that evolution,Cymbet has moved from its start- i tries worldwide. needs to be achieved within the next six up digs at the Genesis incubator in Elk ' In addition,Cymbet also received financ- months is proving to its current investors River to another building within the city ing from Merchant Venture Investments that the company actually can manufacture that accommodate its manufacturing plans. (MVI),an international equity pool of more one of its batteries. Key to achieving this "Cymbet has worked exactly how a start- than 400 individuals investing jointly in milestone is establishing a partnership with up should,"says Jacobs. "They started small buy-outs and development situations. MVI a company that will serve as the beta for in the incubator, and as they've grown, they ' has offices in Finland, Germany, Italy, Cymbet's battery technology, based on an sought larger space in the community that Norway,Singapore,and Switzerland. - actual application of the technology.To add has supported them the most." Mi credibility, Shiffman says the company will Hitting the Milestones base its processes on ISO 9000 certification ile the rise of Cymbet may sound guidelines. .Stephen Dupont(sdupont@clynch.com] s a fre- g II Vlike a Cinderella story in the making, This is where the Millennium Funds' quent contributor to MinnesotaBusiness. ' the fact is the next year may be the compa- investment in Cymbet may pay off. The Magazine. He is partner/director of media , ny's most critical. With venture capital participation of companies such as Bayer, relations at Carmichael Lynch Spong, but does comes the demand of hitting important Siemens, and Boeing may lead to a connec- not write about his clients. 1 milestone markers. And lest you think tion that will allow Cymbet to breath life o Cymbet is basking in the glow of its most into its technology. t ',2,, q.-4 lrz' 7 { .fix-c .k may=?;;r - L1;€ . i -' - '---,-------. '-------- a � '� QEF' } ,& rte'' to s�'5. 4' moi.7 ac;-.,, i 4'T; ,,-0-4:„.1.-i . { fir. �§ —r ��, 5 a � . --4 ' ' �^c `4` ass,, ` E5� � .� "Ar---,,k '� �r s x +ter ' ->~ t t �' r ,`y e4 y;, �'' 9swa z rr t0 #3 ":1 „ 1 ' ' , vi-4, I Y s4 s , Xcel Energy -_- t ' �,,,,,,Y....,,..4,,,-,,,,,,-,i t7 'z '� �� a 0���',--`� k�3 [IB8Br$4Q -,. 27