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-Select an Issue -
SDirector's A. Lead g urren
Notes & Quotesrof the ay erspectves
Dear Friends, Alumni and Students,
This Spring I retired after 36 years of employment at the University of
Florida. This has been a great journey where I have had the opportunity to
work with brilliant colleagues, leadership in education, business and
government in Florida and at the University, but most importantly with
students. The challenge and the joy of students are that every year a new
group comes. They could care less of your other accomplishments: they
demand that you perform here and now.
This keeps you young. When I think that my first UF students are now in
their late 50's and the youngest are in their early 20's, I wonder if I made a
difference in that brief period of time we interacted. I have always lived by the code of Henry Adams who said "A teacher
affects eternity, he can never tell where his influence stops."
I have been given the chance to follow my passions at UF working in two departments, enjoying different leadership
assignments and working as a consultant with many great businesses and attorneys.
The past ten years have been the best-I have lived the formation and growth of CEI and seen its impact. If you think of life
as a series of gigs, this was my best one and I am so fortunate that it came at the end of my career.
For years, I was the only tenured faculty member involved. We have added three new tenure track faculty for the fall and
have one additional position to fill. We will also have two post-docs in addition to our clinical faculty. We have achieved the
goal of making entrepreneurship an important part of the University curriculum.
CEI was able to succeed because of a supportive dean, supportive department members, a team of co-workers who also
embraced the goals of CEI and are better at what they are doing than I, a great advisory board that saw our goals, helped us
with their time and their money and their contacts, and were great strategic guides.
I conclude with these thoughts:
This generation of students is in my view special. It is a beacon of hope that shines through the despair of finance, poverty,
unemployment, and the environment. We need to help them along the way and then get out of their way. You can
encourage them to see and pursue opportunities, teach some basic tools and let them know about who has gone before.
You can't create jobs with legislation. Jobs have always been created by a market economy and most specifically an
I'll close with a comment from Guy Kawasaki. "Success for an entrepreneur is making yourself dispensable because only
then is your venture capable of providing sustainable value over the long run. It is not about you as the entrepreneur-it is
about the organization." I feel like I have done that. The team is more than ready to pick up the challenge. Our organization
will not falter as we go into the future. I thank all of you that have been part of the creation of this dream.
Arnold A. Heggestad, Ph.D.
Holloway Professor and Founding Director
Center for Entrepreneurship and Innovation
1i~iluii o e
Co-founder & Director of Sales, RoomBug
A Startup Enterprise Gaining Traction
During his time as a leasing consultant for a local housing development in
the summer of 2006, Rob Castellucci often fielded numerous calls from
panic-stricken college students. They were distressed about the random
roommates they were assigned to live with after viewing their Facebook
So Castellucci had an idea: Why not provide a roommate-matching
enterprise integrating Facebook? The result was RoomBug, a Facebook application that allows college students to achieve
roommate-matching on their own.
RoomBug is still in the startup phase, but is gaining traction. RoomBug, which Castellucci co-founded in 2007, has acquired
services from four universities-Emory, Florida, Temple and Wichita State-and recently secured another.
Castellucci, a graduate of UF's Thomas S. Johnson Entrepreneurship Master's Program (MSE) in 2008, realized targeting
universities instead of dealing with numerous properties would be a simpler and more focused approach to attracting
business. So he partnered with RMS (Residential Management Systems), a leading university housing software provider,
which already had credible relationships with universities all over the country.
"We integrated with their systems and they introduced us to all their clients," said Castellucci, 25. "That's what started
everything. That was the biggest value inflection point for our company to date.
"It's so difficult to sell to universities in general. But if you have someone working with them, someone who has a relationship
with them for 20, 30 years, it makes it much easier to use their credibility especially when you're a startup. I think that really
Castellucci (UF BSBA, Marketing '07) admits he wasn't necessarily born with an entrepreneurial spirit, but his interactions
with the MSE program and the Center for Entrepreneurship & Innovation (CEI) changed that.
"You start to hear words over and over again and one of the buzzwords was entrepreneurship," Castellucci said. "You kept
hearing interviewers were looking for entrepreneurial-type individuals. So I figured, 'Ok, how can I get into
entrepreneurship?' That's what initially led me to CEI.
"I wasn't one of those prodigy kids creating businesses when I was 8 years old. I don't think I had that opportunity
recognition thing when I was growing up. It really came once I started getting involved with CEI and entrepreneurship...
Maybe it proves to the point more that entrepreneurs can be made and aren't necessary born with all the skill sets."
The undertaking of starting your own business can be overwhelming, but one theme Castellucci strives to live by is
establishing and maintaining credibility among his clients.
"There's definitely a very strong association between your business and you as a personal brand," Castellucci said. "So you
have to be really careful about how you promote your business. Your credibility, your personal story carries around with you,
especially with social media. Everybody can know everything you've ever done."
Castellucci said the plan for RoomBug is to continue to expand its presence among universities, gather data as the
roommate-matching season approaches and analyze the results. He also hopes to acquire more corporate partnerships to
help initiate further relationships with colleges and universities. And Castellucci credits the MSE program for providing him
with the confidence and capabilities to expand.
"This program is an accelerated program," Castellucci said. "If you are entrepreneurially-minded right now, it's going to
accelerate you to start that business right now versus in five years or 10 years from now. If you are not entrepreneurially-
minded but maybe you have an interest in it, it will accelerate you to a future point where you'll start a business as well."
Iw Interview Video
Great Accomplishments Honored at Annual
CEI's annual Entrepreneur of the Year Awards Banquet recognized the
accomplishments of three esteemed entrepreneurs in addition to honoring
the Center's founding and executive director, Arnold Heggestad. The
annual banquet allowed faculty, staff, students, and supporters of CEI to
join for an evening of commemoration and celebration.
hRecognized for his accomplishments as President of Care Dynamix, Inc., David Greiff was this
ear's S. Clark Butler Entrepreneur of the Year. Care Dynamix offers onsite vaccination clinics for
schools, businesses, and government agencies. Greiff has led Care Dynamix towards great success
through the company's delivery of a substantial percentage of the H1N1 inoculations that were made
Ivalat.le for distribution.
BRichard Allen, co-founder and CEO of Xhale Inc., was named Gainesville Entrepreneur of the Year
or his profound accomplishments in Gainesville. His most recent work with Xhale has led to the
pro:jduc':lion of the HyGreen system, which actively assists hospital workers in following sanitation
protocol. Further innovations springing from Xhale include breath-based diagnostics that aim to replace
standard blood tests.
Rhis year's Distinguished Alumnus of the Year, Brent Berthy, exemplified the power of teamwork.
rAccepl ing Ire award on behalf of his co-workers and employees, Berthy emphasized that he had not
traveled the road to success alone. He contributed greatly to the growth of MRI Devices Corporation,
overseeing its merger with Intermagnetics General Corporation. This merger gave rise to Invivo
agnostic Imaging, a current leading supplier of MRI equipment for manufacturers such as GE,
Siemens, Philips, and Toshiba.
The award ceremony specifically highlighted various contributions that Arnold Heggestad has made to the community and
university over the years. The evening acknowledged his contributions to the Center as its founding director, a mentor to
students, and a self-proclaimed "evangelist of entrepreneurship." Marking the Center's tenth anniversary, the banquet
allowed attendees to reflect upon the accomplishments of CEI while looking forward to future growth and opportunities.
CEI Hosts Entrepreneurs-In-Residence
During the past year, CEI hosted on campus four Entrepreneurs-In-Residence, representing a variety of industries and
experiences including venture investing, start-up consulting and general business services. As part of the program our
guests spent several days on campus lecturing in courses, working with teams participating on GatorNest experiential
learning projects, and meeting with students individually and in teams. This year's guests were as follows:
Mason Allen, President, Aware Mark
Scott Brady, Partner, Palia Partners
Jim Hammel, President, Gator Leasing
Sam Waksman, President, GatorWear Team Sports
Students Attend 2010 Entrepreneurial Women's Summit
This spring, CEI hosted its first annual Entrepreneurial Women's Summit. A conference room filled to capacity with MSE and
other graduate students as well as CEI Ambassadors, and several successful local female entrepreneurs, produced a lively
discussion on topics especially relevant to emerging entrepreneurs in attendance. Through a networking lunch followed by a
panel discussion and Q & A, the group explored interesting and current issues with diverse women entrepreneurs who are
each currently in a unique stage of the business cycle.
Stephanie Warrington, President of Synogen and VP-Corporate Affairs & Development of Xhale Inc.
Wanda Ibanez, Proprietor of Emiliano's Cafe
Kristin Hadeed, President of StudentMaid Inc.
To learn more, watch a podcast of the event.
Q&A with William Rossi
-" Capital Options in a Down Economy
4 Based on his recent presentation at the Jacksonville
9 VenturePlex, Mr. Rossi offers a few personal insights on
this timely topic. Mr. Rossi is a Senior Lecturer and
Associate Director at CEI.
CEI: What have been the recent implications of the economy
and market performance on financing startups?
Rossi: The general economy, while at times appearing to be not particularly bad, looks pretty perilous due to two
significant issues. The first is the fact that banks still retain a significant quantity of commercial real estate paper on their
books and a considerable portion of that paper can be categorized as either under-performing or non-performing. Unless the
quality of the underlying assets changes such that they become more strongly performing, the banks will likely have to write
these assets down. This will affect their capital positions, further reducing their ability to extend credit, particularly for
residential real estate, which in turn will put further pressure on the already poor housing market. The second issue is that
Fannie and Freddie have discontinued purchasing mortgage-backed securities from the banks. Again, this will very likely
cause banks to severely limit the extension of credit for residential real estate putting further pressure on the housing
Given the overall concerns about the economy, investors, both institutional and angel, have limited investments in startups.
The result has been that some potential startups have not started up because they have not been able to secure financing.
Another group, while they have secured some financing, started up undercapitalized forcing them into immediate cash flow
problems. These firms have either given up or are struggling to try to resolve what is essentially an unsolvable problem. A
third group has received what I call anemic financing. This latter group has launched, may be growing but at a slow pace
that will affect their ultimate scale. This has generally not been a good situation.
CEI: What changes appear on the horizon for investors and startups?
Rossi: There are two very, very significant changes that appear to have already begun.
First, there is a sea-change occurring in the venture capital industry. "Lean startups" entail business teams that are
exploiting opportunities involving cloud computing, Web 2.0 and Web apps and do not need millions in venture capital. They
can essentially create a very saleable software-based business utilizing no more than a few hundred thousand dollars. They
are not trying to establish infrastructure that has traditionally run up the price of launching an enterprise. Many are even
virtual. With less deal availability involving strong, investible enterprises seeking $5 million $10 million, two things have
occurred. Some VC's have actually begun returning investments to their limited partners. Another development is that some
VC's have created small funds within their larger organization to participate in this trend. An example I would cite is the i-
fund created within Kleiner-Perkins to invest in firms creating businesses based upon iPhone apps. Ultimately, this suggests
that VC's may scale down investments and begin to move into what has traditionally been the realm of angel investors. This
could begin to muscle out angels, which would be very unfortunate as angels in total have typically invested about twice the
amount as have VC's.
Second, and this is really quite interesting, angels it seems, because of the amazing volatility in the markets due to what
they perceive as no more than emotion, have begun to feel that private equity investments are more secure than traditional
investments in the market of established companies. One reason they feel this way is that they have an opportunity to
exercise some control in their private equity investments by getting involved to help. I find this both very interesting and very
CEI: So, what does this mean for startups? Where should they look for financing?
Rossi: Given what I've indicated here, I'd say that pursuing angel investment would be the highest leverage use of most
business teams' time. I'd continue in parallel to try to forge relationships with a few VC's, but not with the intent of securing
investment from them currently. Allow the VC changes I've discussed to sort out.
2010 Thomas S. Johnson Entrepreneurial Scholars Selected
The Thomas S. Johnson Entrepreneurship Master's Program finished the spring semester by recognizing its 2010 Thomas
S. Johnson Entrepreneurial Scholars. The students were chosen based on a combination of their academic performance,
contributions to experiential learning efforts, involvement in entrepreneurial activities on campus and in the community, and
input from classmates, faculty and staff. This year's winners were as follows:
Hector Di Bonaventura With a degree in electrical engineering and graduate studies focused on
e idJenrification of emerging opportunities, Hector will leverage his entrepreneurial skill sets in the
,:crp:raIle setting, beginning this summer with Bloomberg L.P., based in New York City. Resume
,Tracy Shank Entering the program as an Anderson Scholar of High Distinction, Tracy served as
earn lead and founder of BrainActive, a medical device project targeting the Alzheimer's market. Her
laris include furthering her graduate studies in creativity and innovation at UF in the area of Digital Arts
rnd Sciences. Resume
MSE Ethics Fellows
Do entrepreneurship students care about ethics? Would they invest time thinking and talking about business ethics,
sustainability, and innovations that allow a business to be more socially responsible?
We asked them and the answer was "Yes!"
For many years The Poe Center for Business Ethics in the Warrington College of Business Administration has worked with
student groups in the MBA and MSM programs. The CEI asked if the Poe Center would run a program on business ethics
for MSE students. We would! A new partnership was made: The MSE Ethics Fellows!
In Fall of 2009 we invited all of the Entrepreneurship Masters' students to join the MSE Innovations in Sustainable Business
program. They were invited to attend one meeting per month, no credit but a free lunch, to consider the ethical issues in
using the growing awareness of sustainability to create new market niches or products to improve bottom line and long term
We kicked off the year by providing all students a copy of The Omnivore's Dilemma by Michael Pollan to read before
the first meeting, which was a locavore lunch prepared by Chef Mark Newman at 706 Restaurant in Gainesville. Rob and
Katherine Lune, who run Heritage Farms in Archer, spoke to the group about the heirloom organic pig they produced, which
was the main course. The Lunes grow organic beef, pigs, and chickens for local purchase. They explained the joys and
business challenges of running an organic farm, while students experienced the incredible flavor of the meat. Chef Mark
regaled them with the market opportunities and business challenges he faces in trying to provide organic local produce for
the restaurant. Most of our students will probably not run organic farms, but they began to grasp the business opportunities
in scaling such an opportunity in this growing niche market. Moreover, all of the students like to eat, and they do think about
what they eat and where it comes from. Discussing the book, in light of the lunch, also provoked broader thought about the
food industry overall and small markets in particular. They were hooked on the complexities of ethics in food, how small
farmers and businesses grow, buy and sell local organic food, and how the food markets are changing.
The subsequent seven meetings included speakers from RentaCrate in Orlando, which invented rentable plastic moving
boxes and wheels which allow movers to stop using cardboard boxes, most of which end up in dumps and Valley Forge
Fabrics in Pompano Beach supplies hotels, cruise ships and movie theatres with flame retardant fabric made from recycled
plastic bottle. In addition, the students discussed the unsustainable labor practices of abusing migrant workers with Bill
Maxwell, syndicated columnist and former migrant worker, and they tasted Satchel's Pizza, a local Gainesville pizza icon, to
learn how a small business can make money caring well for employees and charging more for pizza (they can). And there
were more a private jet caterer, a local coffee importer who roasts and sells the best coffee in town.
Our young entrepreneurs will begin life after grad school with more of an awareness of current sustainability and ethical
issues as they create their own businesses. MSE Ethics Fellows learned a lot beyond the classroom, and had a great time in
New International Partnerships
Beginning next summer students in the Thomas S. Johnson Entrepreneurship Master's Program will have the opportunity to
study abroad in Haifa, Israel. Technion University is Israel's premiere institute of science and technology. In part due to
Technion's innovations, Israel is now recognized as one of the world's most innovative countries and has been called the
second Silicon Valley. Students will have the ability to take a variety of courses in entrepreneurship, business innovation,
and technology management through Technion's world-class MBA program. Courses available include Marketing High-Tech
Products and Managing in the Global Economy. Students will also have the ability to take electives and immerse themselves
in the Israeli culture.
In addition to the exchange with Technion, the program will be accepting students from South Korea's Sogang University
and Turkey's Ozyegin University as part of new cooperative agreements. Students will take entrepreneurship courses on the
UF campus toward their master's degree.
Students Study Gainesville's E-climate A GatorNest team spent the Spring semester studying the city's ability
to sustain a proof-of-concept micro-investment fund much like the very successful Y-Combinator. Are there enough talented
people, investors, and resources to attract and keep young tech companies in Gainesville? David Whitney, who recently
moved to Gainesville from Silicon Valley, guided the team through the process of finding the answers to those questions.
Results indicate there is a powerful, untapped stream of student talent that could generate many companies and healthy
returns, but not without smart, experienced, and patient investors to kick things off.
TEDxUF In the spirit of ideas worth spreading, the CEI Student Ambassadors held their first TEDx event in February
2010. More than 70 people attended the event. Dedicated to technology, entertainment, and design, TEDx is a program of
local, self-organized events that bring people together to share a TED-like experience. (TED is an annual event where some
of the world's leading thinkers and doers are invited to share on topics for which they have great passion.) At a TEDx event,
live speakers and Ted Videos combine to spark deep discussion and connection in a local, small group environment.
Speakers at this year's event included UF entomology professor Dr. Carl Barfield, and Dr. Charles Teleco, professor of
Social Initiatives Update This Spring we were able to reintroduce the undergraduate Honors Introduction to Social
Entrepreneurship course to a group of bright, motivated students from majors as diverse as accounting, organic farming,
sociology, engineering, marketing and dance. Not only did they learn about social entrepreneurship, they put their
knowledge into action in the local community with Blue Oven Kitchens, a startup kitchen incubator, which aims to support
local farmers and food entrepreneurs as they launch their ventures. The students are most proud of together raising almost
$1500 in support of Barrels of Hope for Haiti, barrelsofhope.org, which will provide supplies for the construction of 5
sustainable barrel homes.
"Startup Hour" for Young Entrepreneurs Startup Hour is a monthly happy hour geared to student-age people
who want to chat about startups. The low pressure atmosphere is perfect for making connections, sharing ideas, finding
partners, and joining teams. The success of groups like this (over 100 participated in the last event) is a sign of the
increasing culture of entrepreneurship in Gainesville. Startup Hour was created by Ted Astleford of CEI, and Augi Lye, a
successful local entrepreneur. The intent was to help facilitate the creation of startups in Gainesville by young people.
Entrepreneurship Recognized at School of Business Awards Ceremony It was a good night for
entrepreneurship on campus at the Warrington College of Business Administration's School of Business Awards Ceremony.
David Boneparth, Assistant Director, Academic Programs, CEI, was recognized for the second year in a row as the "Student
Organization Advisor of the Year" for his work with the CEI Student Ambassadors. The Entrepreneurs Club took home the
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