BENTONVILLE -- Five startup companies pitched their business concepts Thursday in front of a room full of potential investors and possible customers at the ARK Challenge Demo Day at the Crystal Bridges Museum of American Art.
"It's a coming-out party of sorts," explained Jeff Amerine, director for technology licensing at the University of Arkansas at Fayetteville, an adviser for Innovate Arkansas, and an ARK Challenge mentor.
During ARK Challenge, accelerator teams work with mentors and meet key business contacts as they develop business strategies and tactics.
The business accelerator program started three years ago. This year, for the first time, it's being held both in Northwest Arkansas and central Arkansas, though the programs have different formats, goals and timetables.
The five companies selected to participate in the Northwest Arkansas program received $50,000 in seed funding for a 6 percent stake. The central Arkansas program has seven participating companies that receive less seed funding. The central Arkansas group will host its demonstration day Nov. 12 at which some of its participants will qualify for additional investments in exchange for more equity.
Funding for the ARK Challenge comes from Winrock International, Gravity Ventures, Fund for Arkansas' Future and Arkansas Development Finance Authority, according to the program's website.
To make it into the Northwest Arkansas class of the ARK Challenge, participants had to be beyond the initial concept stage. This year the Northwest Arkansas program had 70 applications from 12 countries and 16 states.
Many of the companies had working prototypes or already established customers to showcase at the event.
Anna Drachenberg, co-founder of Fayetteville-based HIPPA Risk Management, told the crowd the company's online data security tool for health care organizations was easy to use and cost efficient.
"We're like the TurboTax of HIPPA compliance," she said.
She said the company has more than 90 clients, a 98 percent renewal rate, and projects revenue of $10 million by 2016.
The other program participants are Skosay, offering a private, two-way communications link between customers and businesses to provide feedback in real time; CrowdToGo is home delivery for businesses using crowd-sourcing; NEO, offers simple-to-use and inexpensive cybersecurity to small- and medium-size businesses; and HumanLink connects those with elderly family members to quality in-home caregivers.
Rick Webb, senior vice president, global business processes for Wal-Mart Stores Inc. and a program mentor, said he thought he got more out of the event than the participants did.
"Listening to these entrepreneurs keeps my mind young," he said.
During its first two years, the ARK Challenge program was based in Fayetteville and helped establish several technology-based companies that are still in operation and growing, including QBox and Overwatch, whose founders spoke Thursday.
QBox CEO Mark Brandon said his management team, which includes people he met during the first ARK Challenge, has developed a search and analytics company that now has more than 600 customers and is managing information in 24 data centers on five continents.
Josh Moody, the teenage CEO of Overwatch, said the company has refined its mobile application and hardware combining game features and technologies from combat video games to enhance live-action airsoft, paintball and laser-tag competitions. He said his company's partnership with airsoft industry leader CyberGun is strong and its products would soon be available online and in retail outlets.
Business on 09/05/2014