Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.



ITEN St. Louis Tech Startup Report

This report is an attempt to cover as completely as possible the growth and overall status of the technology startup landscape in St. Louis, as of year end 2012. The report is based entirely on original data reported by the more than 250 startups that ITEN has tracked since 2008.

ITEN accelerates tech startups with programs for rapid product development, connections to talent, essential networking, and access to funding. Designed by entrepreneurs for entrepreneurs, requiring neither payment nor equity, ITEN is a unique community asset building a new culture of innovation in St. Louis and beyond. ITEN can be found on the web at and @itenstl on twitter.

Related Books

Free with a 30 day trial from Scribd

See all

ITEN St. Louis Tech Startup Report

  1. 1. ST. LOUISTECH STARTUPREPORTHighlighting the history, growth, and outlook fortech industry startups in the St. Louis region
  2. 2. This report is an attempt to cover as completely as possible the growth and overall status of the technology startuplandscape in St. Louis, as of year end 2012. The report is based entirely on original data reported by the more than250 startups that ITEN has tracked since 2008.ITEN accelerates tech startups with programs for rapid product development, connections to talent, essentialnetworking, and access to funding. Designed by entrepreneurs for entrepreneurs, requiring neither payment nor equity,ITEN is a unique community asset building a new culture of innovation in St. Louis and beyond. ITEN can be found onthe web at and @itenstl on twitter.About This ReportAbout ITEN
  3. 3. 5St. Louis Tech Startup ReportINTRODUCTIONTable of ContentsBY JIM BRASUNAS — EXECUTIVE DIRECTOR, ITENITEN is very pleasedto present the 2012Tech Startup Reportto the community,highlighting theexplosive growthduring 2012 in the Greater St. Louisregion’s tech startup ecosystem.This report provides important data and insights aboutwhat’s happened, how we got here, and where we’re going.It is a very exciting journey that is still in its early stages.As you’ll see in the report, $30 million wasinvested in St. Louis-area tech deals in 2012.This is in addition to $40 million that had been putinto deals during 2009-2011, according to ITEN’sdata. We also would note that funding of St. Louistech ventures is accelerating, coming from bothexisting investors, new investors and recentlyestablished investor groups.Beyond attracting increasing investments,more tech startup companies in St. Louis areentering into a fast-growth mode, characterizedby growing revenue as well as quickly addingnew employees. The impact of revenue growthand employee growth is just beginning to be felt inthe region, and we anticipate that the accelerat-ing growth of these metrics will soon be making amaterial impact on the economy of the region.The growth in St. Louis’ startup tech sectorhas been remarkable, and 2012 was the mostimpressive year yet. Still, major challengesremain. In spite of the emergence of new fundingvehicles, many worthy deals are challenged in find-ing seed capital and A Round funding. This short-age becomes more and more acute as the qualityand volume of the deals produced in the tech sec-tor grows. We need to find solutions to this problem.Second, as the region’s tech companies grow andexpand, we need to find ways to attract and trainthe talent that these new companies need. St. Louishas recently been named the fastest growing regionfor tech jobs. That’s a real honor and also a call toarms: we need to make sure tech talent is availableto fuel the growth of tech companies. A scarcity oftalent is potentially as challenging to our startupecosystem’s success as a scarcity of capital.Ingredients for Continued SuccessThere are several things we can learn from the successof startups in other cities. One is the need to developgreater collaboration between for-profit and not-for-profit organizations in the startup space. Each plays anumber of essential roles. The missions and objectives ofboth interests align most of the time, but occasionally thereare instances when they don’t align. In those times it’s veryimportant that the interests of the entrepreneur are carefullyconsidered, because at the core of every successful startupTech Startups in St. Louis:The State of the RegionINTRODUCTIONEXECUTIVE SUMMARY/ KEY TRENDSTHE COMPANIES050810THE MONEYHIRING ANDJOB GROWTHAPPENDIX202428
  4. 4. 6 St. Louis Tech Startup Report 7St. Louis Tech Startup ReportINTRODUCTIONINTRODUCTIONecosystem are serial entrepreneurs. Serial entrepreneursare key to the region’s ability to learn how to create suc-cessful new ventures.Corporate involvement is critical. We look forward toincreasing participation from the St. Louis corporate com-munity, and are beginning to see greater interest fromestablished companies in how St. Louis tech startups canbenefit them. Their role is important as early adopters oflocally grown technology innovations, potential acquirersof tech startups, and as a source of and destination for thetalented workforce needed by both startups and estab-lished companies.Our area’s universities are also vital to the success ofthe startup community, as a source of technology innova-tions, talented graduates and inspirational support andcollaboration. With a continuing dedication from all partiesfor close collaboration to expand and improve the techecosystem, St. Louis has an opportunity to create a newculture of innovation and look forward to a brighter future.How We Got HereWhile this report focuses on 2012, it is worthwhile toglance back for a moment at the foundations that have en-abled our recent growth. Without these foundational efforts,our current progress would not have been possible.The Missouri Venture Forum was an early provider ofconnections for entrepreneurs and investors, and theInvestMidwest Venture Capital Forum and the St. LouisArch Angels have been supporting selected high-growthstartups since the early 2000’s, although primarily in lifesciences and medical device technology. In 2003, theTechnology Entrepreneur Center (TEC) established thefirst IT-focused incubator in the region, producing compel-ling tech companies SliceHost, Global Velocity and others.Innovate St. Louis was formed in 2007 and launchedits flagship mentoring program, the Venture MentoringService (IVMS). Based upon an MIT mentoring program,IVMS was a pioneer in offering incubator-quality mentor-ing without the need for a real estate component. Underthe same Innovate St. Louis umbrella, ITEN was formedin 2008, thanks in a very large part to the support of theMissouri Technology Corporation (MTC). ITEN’s modeldidn’t require an incubator and in focusing on tech compa-nies, leveraged the growing ubiquity of high-speed Internetaccess. The need for tech companies to be collocated withtheir server array had gone away, and startup companieswere freed up to be anywhere.ITEN’s mission has been two-fold: first to be the cata-lyst for the emergence of a vibrant startup ecosystem thatgenerates great tech startups; second, to identify gaps inthe ecosystem and find ways to address those deficien-cies, through events, programs, other innovations, or theencouragement of partners who can provide the neededelements.In those early days, local tech entrepreneurs had a bleaknotion of St. Louis. Many of them felt they were the onlytech startup in town, there was no support for them in thecommunity, and to find investors they’d eventually haveto go to the west coast. The investors we connected within those days had a predictably similar view: there wereno interesting tech deals in St. Louis and they found theirdeals through relationships with investor groups from thewest coast. So both were right, but only because theyweren’t connected with each other.In those early days of 2008 and 2009, ITEN focusedon building those connections that otherwise wouldn’thave existed. We used a combination of public and pri-vate events as well as trying to chart what was going onand who needed what on a huge excel spreadsheet. Toreally build a community, though, we soon needed men-tors. We looked for individuals who understood the techstartup landscape and/or could provide immediate valueto entrepreneurs needing advice and direction. Most of thementors we’ve brought in are serial entrepreneurs, techinvestors and others currently working in the tech spacewith small, medium or large-scale enterprises. They haveexpertise across the board, not just in coding and big dataapplications but also marketing, sales, finance, operations,legal and other specialized needs.Near the end of 2009, we launched the Mock Angelprogram, which prepares our most promising ventures forinvestor discussions. The mentor group affiliated with thisprogram includes a number of investors, serial entrepre-neurs and financial experts familiar with valuation issuesfor startups. This program has been very influential in thecommunity and has produced many of the companiesthat are gaining great traction today. While we don’t creditall of their success to participation in this program, thereis unanimous agreement among the graduates of MockAngels that it has been of great value to them. We canproudly say that about three quarters of Mock Angel gradu-ates have received outside funding.This increasing quality deal flow provided opportunitiesfor investors, and in the last couple of years we’ve wit-nessed not only heightened interest from the Arch Angelsin tech deals, but also the founding of Capital Innova-tors in 2011, FinServe Tech Angels, and new investmentprograms from Arch Grants and Cultivation Capital in early2012. Simultaneous with the founding of Capital Innova-tors, T-Rex opened its doors, providing affordable officespace specifically for new tech startups. T-Rex is a hugesuccess story with over 40 companies on two floors of theRailway Exchange building downtown.There’s no denying that with the advent of new players inthe tech ecosystem, some jostling for branding space hasoccurred, but the overarching spirit of collaboration andcooperation has carried the day, and is a real hallmark ofwhat’s right with the startup community in St. Louis. ITENworks very closely with all of the organizations mentioned,celebrating their successes as indications of the overallhealth of the community. Many of the startups on our TopTen lists in this report have benefitted greatly from the sup-port of one and often two or three of these groups.For example, Yurbuds, Aisle411, Multicoreware,NorseCorp, Food Essentials, Lockerdome and others areemerging success stories that a number of organizationshave helped. To quote a familiar saying, “It takes a village.”A recent reflection of that collaboration is the launch of theAccelerateStLouis website, enabling startups across allindustry sectors to be recognized.Let’s end by coming back to our number one priority,and that’s the entrepreneur and her or his vision, dedica-tion, and team. Without the entrepreneur, investors, funds,and venture development organizations are all useless. Asa community, we need to recognize that our region’s futuredepends upon the success of the pioneers who are creat-ing the successful new high-growth ventures. And as thecommunity embraces entrepreneurship as a foundationalelement of what St. Louis must become, I believe we’veshown that given great entrepreneurs (which we have!),our collaborative and growing support ecosystem canaccelerate and multiply many times over the communityimpact and potential success of these new ventures.A few words about the data presented in this report.None of the data is from secondary sources, but all comesdirectly from the 250+ startups that participate or haveparticipated in ITEN and have volunteered to share theirinformation with us. Therefore, our report covers as com-pletely as possible the total number of tech startups in ourregion. We believe this study includes more than 80% ofthe high-growth tech startups in the region. Included arecompanies that have joined ITEN since our inception in2008. Some very notable companies that were foundedbefore that time, such as Appistry, Exegy, Global Velocityand others, while sometimes considered startups by oth-ers, are not included in our study. And finally, a lot has hap-pened since the end of 2012, and in some cases if we didour Top Ten lists today there would be changes. In manycases companies would move up the list because of theircontinuing successes into 2013, but as we’d expect, thereare a couple that would be moving down.Please enjoy the progress we report herein. Feel free toquote or extract any of the information from the report; weonly ask that you reference ITEN as the source.Here’s to our community’s continued success.— Jim
  5. 5. SECTION TITLE9St. Louis Tech Startup ReportEXECUTIVESUMMARY /KEY TRENDSThe St. Louis tech startup communityhas reached a state of critical mass,and is poised for continuing growth.The ecosystem for tech startups in the St. Louis region, whichhas been under development for years, has taken firm root.More new tech companies than ever are being founded in St.Louis. Just as important, they are finding funding and talent inthe region.And some companies are beginning to find exitsthrough acquisition.Within ITEN, there are now more than 250startups that count themselves as members -- a number thathas doubled in less than two years.St. Louis tech startups have access to betterresources than they have had at any time in thepast. Access to money and employee talent aretwo of the most vital factors to fueling startup ex-pansion. Over the last two to three years in particu-lar, St. Louis has seen a significant increase in thenumber of organizations focused on helping techstartups through grants, funding, education andaccess to resources. A list of these organizationscan be found in the Appendix. Many of these newefforts are derived from intensive and ongoing col-laboration among public and private entities acrossthe St. Louis metropolitan area.Investors, both inside and outside of St. Louis,are paying significantly more attention to St.Louis tech startups. In 2012, there were severalSt. Louis-based, non-private sector organizationsthat invested in St. Louis tech startups. Many ofthese groups did not exist more than two years ago.Nearly all of these groups are growing and expand-ing their membership.The vast majority of St. Louis tech startups arefounded by area natives. Well over 70 percent ofthe companies surveyed for this report were startedby natives of the St. Louis Metro region, includingthe Metro East. Retaining and nurturing “home-grown” talent has been a priority topic among civicand business leaders for years. More of those whoare passionate, ambitious and driven to realize theirbusiness idea or dream are choosing to chase thatdream in St. Louis.More entrepreneurs from outside of St. Louisare starting and keeping their companies here,too. While St. Louis natives show well among ITENcompanies, most of the companies in the ITENTop 10 include founders who were not born in St.Louis. Even so, there is still work to be done toattract more entrepreneurs to get them to basetheir operations here, and the statistics show thatit is happening. The region’s universities and morerecently Arch Grants are playing important roles inattracting outside entrepreneurs.St. Louis tech startups are diverse. They can befound across industry segments and focus on verydifferent products and services. St. Louis tech start-ups offer solutions in IT, healthcare, mobile, indus-trial/manufacturing, gaming, social media, “green”and clean energy tech, sports, and more.Key Trends in the St. LouisTech Startup Community
  6. 6. 11St. Louis Tech Startup ReportTHECOMPANIESEarlier this year, ITEN published itsTop Ten, Next Ten, and Fast Ten listsof companies.Our “Top” lists seek to recognize and celebrate those earlystage tech ventures that are getting the most traction, mostlikely to become a lasting success, and most likely to makesignificant contributions to the St. Louis region’s economicprosperity through the growth of well-paying jobs, andwealth creation for the founders and investors.Any yardstick is likely to favor some companies over oth-ers, and incomplete data from some makes it difficult to getan accurate view of their progress. Our lists of companiesare subject to these challenges and although we’ve madeevery effort to create a level playing field, our method forcreating our lists is inevitably going to reward one at theexpense of another.For our Top Ten and Next Ten lists, as well as theindustry-segmented lists of Top Threes in this report, wefocus on these key metrics: total funds raised (from allsources including friends and family, grants, debt and equityfrom outside sources), current monthly revenue, and totalemployees (including founders working full time on theventure). We believe outside funding, customer revenue andemployees hired are reasonable criteria to measure a ven-ture’s importance to the community. As a fourth consider-ation, we include the growth in those three primary metricsover the course of 2012. By doing so, we give added weightto the traction that companies are getting right now, andreward the ones that are growing rapidly.For our Fast Ten list, we look only at companies foundedin 2010 or later, and give additional consideration to thegrowth in metrics during calendar year 2012. We thinkthe companies on the Fast Ten list are ones most likely toemerge and make an impact in the next couple of years.We don’t consider factors such as the number of freemi-um (non-paying) customers, click throughs, site visits, visitdurations, search engine rankings, etc.A final note: we are limited in our evaluations by the will-ingness of companies to share with us what is their propri-etary data. As you can see from our report and any of ourother reports and publications, ITEN does not divulge anycompany-specific data. Some companies are more forth-coming than others and in a few cases this lack of willing-ness has had an impact on their rankings.OverviewThe growth in tech companies in St. Louis has been impressive and it has helpedput us on the map nationally. Our reputation as a place that supports startups iswell-founded, in no small part due to the excellent service provided by ITEN. Thisis truly a bright spot for the future of the St. Louis economy.DENNY COLEMAN, PRESIDENT & CEOST. LOUIS COUNTY ECONOMIC COUNCIL
  7. 7. 12 St. Louis Tech Startup Report 13St. Louis Tech Startup ReportTHE COMPANIESTHE COMPANIESITEN Top TenYurbuds | www.yurbuds.comYurbuds was founded in 2008 to solve the market need for a quality earphone/headset solution for use with iPods™, cell phones, telemarketing headsets andall other types of earphone communication devices.MulticoreWare Inc. | www.multicorewareinc.comMulticoreWare Inc. is the leading provider of programmer productivity tools,libraries and application development services for homogeneous andheterogeneous multicore CPU and GPU architectures.NorseCorp | www.norse-corp.comNorseCorp, a leading innovator of IT security and fraud prevention solutions,is the only provider of live, actionable, cyber threat intelligence. The company’spatent-pending IPViking technology continuously monitors the Internet for hackeractivity and high risk network traffic.Aisle411 Inc. | www.aisle411.comaisle411 collects, organizes and monetizes product inventory and location datathrough a mobile engagement platform, bringing simplicity to in-store search andnavigation.Hexagrid Computing | www.hexagrid.comHexagrid is a software company that has developed a software platform thatspecializes in building Infrastructure as a Service (IaaS) Clouds.FoodEssentials | www.foodessentials.comFood Essentials provides grocery retailers and brands with big data-driven infor-mation about ingredients and additives in food products, enabling them to target-market to consumers with dietary concerns.Trade Harbor | www.tradeharbor.comTrade Harbor is a pioneer in voice authentication services, focused on the bank-ing and financial transaction industries.LockerDome | www.lockerdome.comLockerDome is a social media platform for sports; it is one of the fastest growingonline sports properties in the world. More than ten million people now use Lock-erDome to consume content and interact with like-minded people around theirfavorite sports interests.Virtual Nerd | www.virtualnerd.comVirtual Nerd is an engaging, interactive, intuitive software that utilizes video-basedinstruction to improve student achievement in mathematics.Mortgage Returns | www.mortgagereturns.comMortgage Returns works with the data already captured within a mortgage com-pany’s back-end loan origination system. Based on each mortgage company’sunique database, Mortgage Returns prompts every loan officer in the companywith the details on who to contact, when to contact them, and why.1 62 73 84 9510
  8. 8. 14 St. Louis Tech Startup Report 15St. Louis Tech Startup ReportTHE COMPANIESTHE COMPANIESITEN Next TenSystematic Revenue | www.systematicrevenue.comSystematic Revenue provides growing businesses with an easy to use and affordable mar-keting automation system to consistently follow up with all of their prospects and customersin a meaningful and relevant way.BusyEvent | www.busyevent.comBusyEvent provides a comprehensive, mobile app-driven solution for event planning, execu-tion, exhibitor-to-attendee interactions and information, and follow-up big data intelligence.Makaboo Personalized Gifts | www.makaboo.comMakaboo is a high-quality online retailer of personalized baby and children’s gifts.Blendics | www.blendics.comBlendics makes software tools that allow designers of integrated-circuit systems to developtheir products more rapidly and at less cost.Gremln | www.gremln.comGremln offers a wide array of essential and intuitive features to help businesses make themost of their social media strategies. From message management and customer engage-ment to social analytics and education, Gremln’s unique feature set is specifically designedto help businesses master the social marketing landscape.Off Campus Media | www.offcampusmedia.comOff Campus Media, a proven college marketing company, leverages its national network ofcollege student Ambassadors and proprietary technology to better understand and connectwith millions of college students. OCM’s Bonfyre app enables immediate sharing amongevent-goers.BizMed | www.bizmedsolutions.comBizMed™ is supporting physicians in office-based practices by providing affordableknowledge, expertise and tools to simplify and manage the regulatory and business aspectsof medical practices.Foxtrax Vehicle Tracking, Inc. | www.goxtraxgps.comFoxtrax Vehicle Tracking provides GPS vehicle tracking to small businesses.Greenvelope | www.greenvelope.comGreenvelope provides beautiful electronic invitations online that are delivered to guests in apersonalized “envelope” for special occasions.Lifestream Communications | www.lifestreamcom.comLifestream Communications is a provider of visual communications products(videoconferencing), streaming/archiving products and services to the healthcare industry.
  9. 9. 16 St. Louis Tech Startup Report 17St. Louis Tech Startup ReportTHE COMPANIESTHE COMPANIESITEN Fast TenSplice Machine | www.splicemachine.comThe Splice SQL Engine™ enables companies to unlock the insights in their BigData and to put these insights into action in hyper-personalized web, social andmobile applications that increase customer retention and revenue.simMachines | www.simmachines.comsimMachines provides a next generation database that is capable of answeringsimilarity queries. Similarity queries enable the creation of next generation appli-cations. Our engine is not only the fastest available, it is also very easy to use.SirenGPS, LLC | www.sirengps.comSiren develops smartphone technology to connect you and your family to emer-gency services and information — making communities safer.Time to Cater | www.timetocater.comA national, web-based catering concierge service that connects BUSY peoplewith the RIGHT caterer for their needs and budget to save them TIME andMONEYEvtron Inc. | www.evtron.comEvtron Inc. is an Information Technology corporation providing Enterprise CloudStorage and Co-Location services.Dorsata, Inc. | www.dorsata.comEarly stage HIT company focused on the development and implementation ofclinical pathways.Dead Inventory Management System (DIMS) |www.deadinventorymanagement.comDIMS provides a platform for industrial concerns with excess inventory to findcustomers who need products or parts that are often discontinued or not availablethrough conventional sales channels.Click With Me Now, Inc. | www.clickwithmenow.comClick With Me Now has the unique opportunity to engage with and provide ser-vices to EVERY person who uses a web browser! The Click With Me Now appli-cation is intuitive, requires no-downloads and best of all it’s free.Rollsale | www.rollsale.comRollSale is “rolling wholesale”, a new way of conducting wholesale operations viaa transactional social network for used car dealers.Material Mix, LLC | www.materialmix.comMaterial Mix is a disruptive web-based exchange platform that commoditizes thetrade of industrial byproducts within the current waste collection industry; helpingwaste and recycling professionals reduce operating expenses, recover investmenton inventory, and monetize the trade of their recyclables.1 62 73 84 95 10
  10. 10. 18 St. Louis Tech Startup Report 19St. Louis Tech Startup ReportTHE COMPANIESTHE COMPANIESTop 5 States where Founders are originally from:Age of the Youngest Founders:Patents applied for:Patents granted:Ethnicity of the Founders:Gender of the Founders:Facts & Figures Segment RankingsThere are35 companieswith a founderunder the ageof 25Caucasian (82%)AfricanAmerican (9%)Asian (7%)Hispanic (1%)Other (1%)25731279%male21%femaleWomen-Owned1. Makaboo2. BuildingWorks, LLC3. Material MixMinority-Owned1. MulticoreWare Inc.2. Hexagrid Computing, LLC3. G2 MediaGreen Tech1. FoodEssentials2. BusyEvent3. GreenvelopeSecurity1. NorseCorp2. Parameter Security3. Siren GPSMobile1. aisle4112. Siren GPS3. IDC ProjectsSocial Media1. LockerDome2. Off Campus Media / Bonfyre3. Dealie DoSports1. Yurtopia2. LockerDome3. LogYourRunThe surge in start-up activity in St. Louis over the past two years and thegrowing number of high-quality deals have attracted the attention of nationalinvestors who are now finding it worth their while to visit our region.DONN RUBIN, CEOBioSTLMissouri (>80%)Illinois (5%)California (2%)Massachusetts,Michigan, Kansas,Washington (1%)
  11. 11. 21St. Louis Tech Startup ReportTHEMONEY$30 million invested into St. Louistech startups in one year is a majormilestone and a great accomplish-ment for our region. This representsa steep increase over previous years,and more than 40% of the total in-vestment since ITEN started trackingsuch activity in 2008.Well over half of this new money has gone into a smallhandful of local deals, many of them listed in our Top Tenand Next Ten lists. This is to be expected, since investorswill gravitate to the most compelling deals that are gettingsignificant customer or investor traction. On the other hand,what’s most interesting is where the rest of the money is go-ing. We have indicated, through our Fast Ten list, that thereare others outside of the spotlight getting investor interest. Asuccessful ecosystem produces more than a small handfulof great deals; a successful ecosystem is a living systemthat is supporting many deals at all stages of development.For the long-term health of the community, the increas-ing amount of money going into more earlier-stage dealsis probably more significant in the long run than a well-known deal raising an additional one to two million dollars,because it shows that sustainable financing momentum isbuilding from the bottom of the pyramid.Despite the fact that we still have many very interestingventures having to look (and sometimes move) to otherparts of the country, the trend is most definitely going in theright direction. St. Louis now offers multiple options for seedfunding for tech deals, and more than one way of raisingup to $500K to $1M in funding. Beyond that level, the goinggets tougher and there’s no question we need more accessto funding for A rounds. A continuing quality deal flow willhelp attract funding alternatives, and the outlook is bright inthe intermediate and long term. Meanwhile, today’s dealswill still need to work hard to find local financing at thoselevels.OverviewIt is truly impressive to see the critical mass that we seem to be reaching on theinformation technology startup scene in St. Louis. The advent of new Angelinvestors, venture funds, and T-Rex, coupled with ITEN’s continued commitmentto mentoring and preparing our startups for funding, is really paying dividends. Ilook forward to continued positive momentum, the success of our startups andthe positive impact it has on our community.MARK SHOWERS, CIOREINSURANCE GROUP OF AMERICA
  12. 12. 22 St. Louis Tech Startup Report 23St. Louis Tech Startup ReportTHE MONEYTHE MONEYMonthly Combined Revenue of AllITEN Companies:Money Invested in All ITENCompanies (Cumulative Total):Outside Funding Sources(Percentage of Sources):RevenueFunding01234562012201120102009010203040506070802012201120102009Friends andFamily (52%)AngelInvestors (23%)Accelerators (9%)GrantFunding (7%)CustomerFunding (2%)Other (7%)Of all ITEN member companies:■ 30% have generated revenue■ 1 in 4 raised outside fundingOf active companies:■ 35% have revenue($200 to $1M per month)■ Half have raised outside funding(a couple thousand to multiple millions)■ Of those companies raising money,43% have revenueOf companies that have ceasedoperations:■ 1 in 6 had revenue■ 1 in 12 had raised outside funding■ Of those raising money, 8% had revenueKey Facts & FiguresInformation technology is dominating a revolutionary culture of entrepreneurismin the St. Louis region. Hundreds of high-quality enterprises are emerging,brilliant opportunities encouraged by robust mentoring from entities such asITEN, exciting new sources of initial financing like Arch Grants and severalcapital enterprises.Yet we, the nation and world are at an early stage of thetransforming influence of this limitless technology. Our regional challenge is tocontinue to encourage this fragile development, in part by ensuring theavailability of substantial scaling capital.DR. BILL PECK, CHAIRMANINNOVATE ST. LOUISTotal Invested (in Millions)Monthly Revenue (in Millions)$5.2M$70.6M$40.3M$28M$17.5M$3.5M$1.2M$819K
  13. 13. 25St. Louis Tech Startup ReportHIRING ANDJOB GROWTHSt. Louis is rapidly gaining traction asa hot city for interesting and talentedtechnology employees.A recent report on the tech job site lists St. Louisas the country’s top city in year-over-year growth in techjobs. ITEN is seeing these opportunities within our start-ups in the data gathered in 2012. The rapid growth in jobcreation numbers from ITEN startups validates these highnational rankings.In polling ITEN client companies for their potential futurejob openings, ITEN is seeing preliminary data on how tobetter address talent gaps in the region. The needs of techstartups are heavily based in technical areas with over 32%of our startups planning to hire more coders, programmers,and designers. However, startups clearly see the need forcustomer acquisition and market awareness as well. Thenext highest sectors of projected needs for ITEN startupscome in the form of Sales (20%) and Marketing (19%). Thedata coming from startups clearly dictates that the regionneeds to continue to keep focus on attracting and retainingtalent in many forms, to keep up the healthy growth we areseeing in the tech startup ecosystem.OverviewThe growth in entrepreneurialactivity in St. Louis over the last 18months has been nothing short ofexplosive. This is especially true inthe tech space. I credit the amazingcommunity effort being put forth.With everyone pulling togethertoward a common goal under the“all boats rise” theory, our ability toachieve success is limitless.It makes me proud to be aSt. Louisan!JUDY SINDECUSE, CEO / MANAGING PARTNERCAPITAL INNOVATORS
  14. 14. 26 St. Louis Tech Startup Report 27St. Louis Tech Startup ReportHIRING AND JOB GROWTHHIRING AND JOB GROWTHOverall Growth in NewFull Time Employees:Top Positions/Areas of Expertise DesiredNumber of employees companiesare planning to hire in 2013:Key Facts & Figures185 425Employees expected to behired in 6 monthsEmployees expected to behired in 12 months0200400600800100020122011201005101520253035OtherHRLegalFinanceC-levelOperationsMarketingSalesTechCompany QuotesSt. Louis’ tech startup scene is exploding.The talent, financial resources, andoverall support have all come together atjust the right time, allowing LockerDometo build a world-class company right herein St. Louis.GABE LOZANO, CEO / CO-FOUNDERLOCKERDOMEBuilding Norse from St. Louis was noteasy as we started in early 2010 beforemany of the programs now available werepresent, outside of ITEN and the CapitalInnovators accelerator, of which we werein its inaugural class. That said, I am veryexcited to see the rising start-up scenewith programs to support entrepreneursas they grow their companies. The T-Rexoffices downtown are buzzing, and agreat indicator of these programs result-ing in success.SAM GLINES, CEONORSECORPThe St Louis start-up community hasall of the pieces of a larger, moresophisticated market, but maintainsthe straight-talking Midwest flavor. Thiscommunity is full of very smart, genuinelynice people who really want you tosucceed even if they don’t have afinancial interest. They also don’t mindtelling you when they think you are on thewrong track – which is just as valuable.PAUL RAUNERSirenGPSWhen I see the Gateway Archmonument, I can relate to the pioneersthat came to St. Louis as part of thewestward expansion of the United States.In a similar way, I came to St. Louis toconquer digital lands, to elucidatebusiness applications of similarity searchand pattern recognition.DR. ARNOLDO MULLER-MOLINA, FOUNDER, DATA SCIENTISTsimMACHINES85060145532%20% 19%9% 8%6%4% 2%< 1%
  15. 15. 29St. Louis Tech Startup ReportAPPENDIXFor a complete list of resources, both in state and outof state, please go to & DevelopmentAccelerate St. is a one-stop website that connectsentrepreneurs to resources and investors who can helpthem in launching and growing their businesses in the St.Louis region.www.acceleratestlouis.orgCenter for Emerging TechnologiesThe Center for Emerging Technologies (CET) providesthe specialized facilities, knowledgeable support services,entrepreneur training programs, and access to capitalneeded to establish and develop next generation medicaland other advanced technology companies. CET has beena key member of a St. Louis public-private-three universitypartnership focused on creating all of the elements neededto commercialize innovations through new companies, growa competitive life science industry cluster, and be a leadingcenter of tech-based economic development.www.emergingtech.orgCenter for Entrepreneurship, St. Louis UniversityThe goal of Saint Louis University’s Entrepreneurship Cen-ter is to help entrepreneurs combine their business passionwith the planning skills taught in a world-class institution, toproduce high-performing catalyst for tech startups in the St. Louis region, and aprovider of education and training programs at every stageof the startup lifecycle.www.itenstl.orgInnovate Venture Mentoring Services (IVMS)IVMS provides mentoring teams for innovative start-upventures in all disciplines.www.innovatevms.orgUniversity of Missouri St. LouisThe Center for Entrepreneurship and Economic Education(CEEE) at UMSL addresses the vital need for economicliteracy by contributing to the understanding of economics,personal finance, and entrepreneurship through educationand outreach to children and University Skandalaris CenterThe Skandalaris Center for Entrepreneurial Studies servesWashington University in St. Louis and the broader St. Lou-is community, working to build an innovation environmentwhere ideas and people can connect and cause action thatchanges connects small business owners with anetwork of nonprofit resource organizations that providebusiness-building services. We facilitate the linking of theseresource organizations to one another and to established,emerging and start-up small businesses throughout
  16. 16. 30 St. Louis Tech Startup Report 31St. Louis Tech Startup ReportAPPENDIXAPPENDIXFundingArch GrantsArch Grants seeks to create a more robust startup cultureand infrastructure in St. Louis. To increase employmentgrowth and establish St. Louis as a place where entrepre-neurs want to start and grow their businesses, Arch Grantsoffers startups funding in the form of grants and supportsthe startups as they remain or transition to downtown St.Louis. The Arch Grants Business Plan Competition helps toshape the image of St. Louis among aspiring entrepreneursand others looking to have a formative role in building anew entrepreneurial climate in St. Louis.www.archgrants.orgBilliken AngelsThe goal of the Billiken Angels Network is to provide infu-sions of expertise and capital to firms that show promiseto make a difference for the St. Louis economy and region.BAN is willing to look at firms in all industries and evaluatesfirms at all stages, not just start-ups.www.billikenangels.comCapital InnovatorsCapital Innovators provides tech startups with the funding,resources, and connections they need to reach the nextlevel. The Capital Innovators Accelerator Program providesseed funding, project-based mentorship from a seasonedpool of knowledgeable entrepreneurs, stellar perks, net-working, and follow-on funding opportunities over thecourse of 12 weeks.www.capitalinnovators.comCultivation CapitalCultivation Capital is a venture capital firm managed bya team of serial entrepreneurs. The firm invests in youngtechnology companies whose ideas have the potential todisrupt the way we live and work. The goal of CultivationCapital is to take revenue-generating businesses to the nextlevel with expertise, guidance and funding.www.cultivationcapital.comMissouri Technology Corporation / IDEA FundsThe Missouri Technology Corporation funds several pro-grams across the state of Missouri that support the growthof innovative Louis Arch AngelsThe mission of the St. Louis Arch Angels is to provideopportunities for members to obtain outstanding financialreturns by investing in early-stage companies with highgrowth potential in the St. Louis Region and accelerat-ing them to market leadership. The Arch Angels are a partof the St. Louis region’s seed to later stage equity capitalcontinuum and are targeting an investment range that isgenerally underserved by institutional venture capital firms.www.stlouisarchangels.comOffices & General ResourcesT-RexT-REx is a coworking space and technology incubator locat-ed in the heart of downtown St. Louis. Facilities are locatedin the historic Railway Exchange Building, which has beenconverted into a hub for the St. Louis startup scene. T-RExis home to a growing community of entrepreneurs, develop-ers, designers, mentors, educators and more.www.downtowntrex.comLab 1500Lab1500 is an entrepreneurial center founded on theprinciple that collaboration drives innovation. It is designedto be a cool, comfortable place where members can utilizeco-working space, network with likeminded entrepreneurs,and attend classes, workshops and events.www.lab1500.comHelix Center Biotech IncubatorThe Helix Center Biotech Incubator offers affordable, high-quality wet and dry lab and office space to bioscience,technology, and plant and life science startups. The incuba-tor for plant and life science companies is designed to helpemerging companies grow, graduate and
  • chiz147

    Sep. 2, 2013
  • zoedaemon

    Jul. 2, 2013
  • eddodds

    Jun. 13, 2013

This report is an attempt to cover as completely as possible the growth and overall status of the technology startup landscape in St. Louis, as of year end 2012. The report is based entirely on original data reported by the more than 250 startups that ITEN has tracked since 2008. ITEN accelerates tech startups with programs for rapid product development, connections to talent, essential networking, and access to funding. Designed by entrepreneurs for entrepreneurs, requiring neither payment nor equity, ITEN is a unique community asset building a new culture of innovation in St. Louis and beyond. ITEN can be found on the web at and @itenstl on twitter.


Total views


On Slideshare


From embeds


Number of embeds