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1 I EMERGING 2 COMPANIES Big op small, now or established, these 30 ppivately held companies have one thing in common. They're poised 10P rapid growth—and maybe even public stock ollovings. t . By Phil Bulsla M os trit of the 30 companies profiled in scene could be changing. He says venture wonderful network of resources to draw the following pages have con- capitalists are acting more conservatively this from here,'says Dr.Ed Shapland,president buted significantly to Minneso- year and are more likely to fund later-stage of Cortrak Medical,Inc.,a Minneapolis de- ta's economic rejuvenation.Nearly all have companies than startups. veloper of drug-delivery catheter systems. watched their revenues and number of em- Venture capital,of course,isn't all that's Shapland has found a well-trained work ployees rise dramatically over the past year. available."We're technically still a develop- force and readily available consultants and But that's not why they appear here.These ment-stage company," says Christopher contractors he can leverage into his growing privately held companies have garnered the Price,CEO of Roseville-based Larex,Inc.,a company without having to add employees. attention of local investors,venture capital- producer of specialty chemicals found in In general,business owners and investors ists,accountants,and Twin Cities Business trees."With the support that our young com- are optimistic about business in Minnesota. Monthly for.what they are likely to do—em- pany has received from Minnesota investors, Still,admits Jay Novak,commissioner of the bark on an impressive growth spurt in the state agencies,corporations,and academic state Department of Trade and Economic coming months or next few years.Indeed,a institutions,I cannot imagine beginning this Development,there is room for improve- good share of these businesses are thinking company in any other location." ment."We have among the highest commer- seriously about going public. Brian Brockway concurs. Brockway's Ar- cial and industrial tax rates in the country,' "Is Minnesota better than other states[for den Hills firm,Data Sciences International, he says. "And the availability and cost of starting a business]?I believe that it is,"says Inc.,a maker of implantable medical devices, space has an impact on an entrepreneur's Ron Eibensteiner,a local investor and entre- received$1.2 million in Small Business Inno- ability to get a location to start a business." preneur. "What really makes this area vation Research grants—imparted by federal High workers'compensation rates—al- " unique is entrepreneurial capitalism.There agencies to small high-tech businesses—in though addressed by the legislature in is readily available money to start a business the early 1980s."We wouldn't be who we are 1995—continue to be a problem as well. N' if you have a good concept" today without the SBIR grants,because the "Workers'comp is still not where it should ^x Indeed,Minnesota has a rich community technology that we were developing early on be,but the walls are coming down."says ry of investors who nurture start-up companies. was simply too risky to attract venture capi- John Tastad,CEO of Energy Solutions In- According to Ted Johnson,president of the tal,"he says. ternational,Inc.,in Mendota Heights."And fis Minnesota Cooperation Office for Small Investors and entrepreneurs alike also the people who will benefit are the taxpayers Business and Job Creation,however,that praise Minnesota's work force."There's a and the consumers.