9.0. EDSR 08-14-2000 Item 9.
ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY
MEMORANDUM
TO: Elk River Economic Development Authority
FROM: Marc Nevinski, Assistant Director of
Economic Development
DATE: August 14, 2000
SUBJECT: Incubator Application: Integrated Power Solutions
Issue
Integrated Power Solutions(IPS) has submitted an application to enter the Business
Incubator Program. IPS has conceptually developed a manufacturing process for an
existing solid-state battery technology. Mark Jensen, President and CTO, will be in
attendance to provide a short presentation on the company and its plans.
• Background
IPS is a high-tech firm that has developed a process for manufacturing a solid-state,
thin-film battery technology, which has many advantages and applications. Due to
the size of the battery, the technology can be integrated into the circuit boards of
any electronic device, thus eliminating the need for large batteries and expanding
the capabilities of the device. Additionally, the battery is recharged via radio
frequencies, thus eliminating the need to remove it from the device. Finally, it has a
nearly infinite lifespan and will likely outlive any device it powers.
This battery technology has already been developed at Oak Ridge National
Laboratories, however, production methods are too costly to bring the battery to
market. Mark Jensen has conceptually developed a process to manufacture such a
battery at a price acceptable to the market.
IPS has received commitments for funding from both the Anoka/Sherburne County
Capitol Fund and the Elk River Investment Club for an approximate total of
$50,000. Additionally, the company recently secured a two million dollar
commitment from a technology oriented venture capital firm.
Due to limited utilities and power supply, IPS is unable to conduct research and
• development of its manufacturing process at the incubator. However, the company
P.O. Box 490 • 13065 Orono Parkway • Elk River, MN 55330-1743 • (612) 441-7420 •Fax: (612) 441-7425
Equal Opportunity Housing and Equal Opportunity Employment
• intends to lease space in the West Business Park project proposed by Mr. Santwire.
Until that facility ready, however, IPS would like to lease approximately 1500 SF of
incubator space for a six-month period, where it will be able to administer its
operations and meet with investor and vendors.
The Incubator Advisory Board reviewed IPS' application on July 25, 2000 and is
recommending that the company be admitted to the program. Staff has proposed a
lease of $5.00 per square foot with a 50:50 cash/stock ratio.
Action Requested
Staff requests that the EDA consider the application of Integrated Power Solutions
for admittance to the Business Incubator Program.
Attachments
• Application
• Incubator Advisory Board July 25, 2000 minutes
•
•
ELK RIVER BUSINESS INCUBATOR
• APPLICATION FORM
Name of Business: �NTA`G/ 7Z'Dc- O.Vs TNc.
Name of Principal: 10/9 ZX
Address: X 3 3// ,VVI / �/�/il/C.�TJr� /�.sd s-5-3-2/
Phone: /7---3c) --297 Es Fax: 763— 1 9- 7
Ownership structure: Sole Proprietorship ❑
Partnership 0
Corporation ( '
Business is primarily involved in: Research and Development
Product Manufacturing/Assembly 0
Other 0
Principal product(s): C'dverl� ik/r4r'4 QS
•
Activities��// to be undertaken in the incubator facility:
Projected number of employees (including principal) at incubator
operation:
Full Time Part Time
Initially
After 6 months 4/ •-' /
At the end of 1 Year l( /
• At the end of 3 Years
• Please attach the following information:
• Business Plan, including financial projections, current sales figures (if
any), Profit and Loss Statement, and Balance Sheet.
• Personal financial statements
•
Signature:
Printed name: /. '¢/uC L, .✓ '�
Company name: 4>4--A-1
Date: 5—/2 /®O
• eda\bincapp.doc
• Elk River Business Incubator Advisory Board
July 25, 2000
4:00 PM
Elk River Business Incubator
INTEGRATED POWER SOLUTIONS
Present Absent
Jeff Gongoll—Advisory Board Stephanie Klinzing—Advisory Board
Larry Hickman—Advisory Board Darryl Thompson—Advisory Board
Harlan Jacobs—Consultant Jim Barthel—Advisory Board
Victor Weiss—Integrated Power Solutions Jack Mowry—Advisory Board
Mark Jensen—Integrated Power Solutions
Brian Shiffman—Integrated Power Solutions
Cathy Mehelich—Staff
Marc Nevinski—Staff
Following a presentation by Mark Jensen of IPS, the advisory board asked a
series of questions around the following issues:
Applications for the Technology
Mark indicated that the applications for the battery technology are vast.
Opportunities exist in such areas as the medical industry, micro-robotics and
electronics, secondary batteries, and brilliant cards. Because the batteries
11, are so small and pliable, the opportunities for their use are nearly limitless.
IPS plans to license their technology in addition to manufacturing in order to
generate an additional source of revenue.
Management Experience
The advisory board asked about the teams'background. Mark Jensen,
President/CTO has a science background and spent twenty years working for
Honeywell. Brian Shiffman, VP of Business Development, has worked with
numerous firms and has expertise in business development and government
relations. Most recently he worked for Northstar Photonics. Victor Weiss has
also worked with a number of start-up companies and is Chairman/CEO of
IPS. Finally, Harlan Jacobs has joined the team as CFO.
Time Frames
IPS intends to hold two rounds of funding. Round one will include setting up
the manufacturing process and developing the "proof of concept". Round two
will include manufacturing, sales, and licensing of the product. The entire
process is expected to take thirty-six months.
Recommendation
Advisory Board members Gongoll and Hickman recommended that the EDA
• consider IPS for admittance into the Business Incubator Program.