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Ratings Are ‘Confusing’ Exercise Startup Bids Get Investors Big Boost Expect

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Ratings Are ‘Confusing’ Exercise Startup Bids Get Investors Big Boost Expect 20160801-NEWS--1-NAT-CCI-CL_-- 7/29/2016 3:28 PM Page 1 VOL. 37, NO. 31 AUGUST 1 - 7, 2016 Source Lunch Archer Awards Stephanie York, crisis management expert She dishes on the media, her law background and much more. Page 40 The List CLEVELAND BUSINESS Largest public companies Page 43 Pages 15-24 SPORTS BUSINESS HEALTH CARE TECHNOLOGY Sports Ratings are ‘confusing’ exercise Startup bids get investors big boost expect NNUAL R NNUAL NNUAL A AN A RA A RA K NK NK S S S from RNC WE’RE NO, NOPE. new cash NO. 1! WE IT’S US Capital raised hit By KEVIN KLEPS ARE. four-year low in ’15 [email protected] @KevinKleps By CHUCK SODER In the next two weeks, the Greater [email protected] Cleveland Sports Commission will @ChuckSoder submit bids to host a series of NCAA championship events. The amount of capital raised by The sports commission and the local startups hit a four-year low in Cavaliers have repeatedly reminded 2015. But Ray Leach isn’t too wor- the NBA of their interest in bringing ried. the All-Star Game to Cleveland for Local startups will probably raise the first time since 1997, and the more money this year — and for at sports commission has also worked least a few years to come, according on bids for an upcoming Major to the people who run JumpStart, League Baseball All-Star Game and VentureOhio and North Coast Angel the 2018 or 2019 USA Triathlon Na- Fund. tional Championships. For one, several investment funds Coming off a Republican National here and throughout the state have Convention that has drawn rave re- new cash to invest. views for the city and its host com- Plus, a few local funds years ago mittee, Cleveland’s timing — much made bets on startups that are now like it was for LeBron James’ return among Ohio’s fastest-growing tech two summers ago — couldn’t be any companies, such as OnShift, Cov- better. erMyMeds and Assurex. If any of The RNC “strengthened every bid those companies get acquired or go we have out there right now, and public, which is by no means guar- every bid we put out there,” said anteed, their investors could get Mike Mulhall, the sports commis- some sizeable checks. And that sion’s vice president of business de- David Kordalski could help them raise new funds in velopment. “It elevated our reputa- the future. tion, which I think was pretty good By LYDIA COUTRÉ and Medicaid Services released its meaningful way,” said Lori August, Thus, the future for the most already.” new Overall Hospital Quality Star senior director of quality at St. Vin- part looks bright for Ohio’s rela- On July 22, the day after the RNC [email protected] Ratings. U.S. News & World Report cent Charity Medical Center. tively small venture capital com- concluded, the four Ohio Democrats @LydiaCoutre expects to release its hospital rat- Increasingly, consumers look to munity — and for local startups in the U.S. House of Representatives ings on Tuesday, Aug. 2. the internet for information in that need venture capital, accord- sent a letter to NBA commissioner Throughout the year, govern- So, what can consumers — or making decisions: everything from ing to Leach, who is CEO of Jump- Adam Silver that said Cleveland ment agencies, news organiza- hospitals, for that matter — do a new car to a restaurant. And yet, Start, a Cleveland-based nonprofit “would be proud” to host the 2017 tions, quality groups, nonprofits with these often-conflicting grades in health care, studies show that that provides assistance and fund- All-Star Game. Charlotte lost that and for-profit companies scruti- and designations? The answer is- the vast information available to ing to startups. star-studded event because of North nize, squeeze and survey hun- n’t quite clear. Some officials say patients is not where they first look “I do think the VC numbers are Carolina’s controversial House Bill 2. dreds of metrics concerning hos- the scores confuse patients, while in deciding where to seek care. going to be solid over the next five Cleveland, however, is not in the pital performance. others say they bring much-need- They turn to friends and family, years. … I could not have said that a running to host the Feb. 19 All-Star The result? A dizzying array of ed transparency to the health care draw from past experiences and year ago,” he said. Game, sources told Crain’s. New Or- stars, percent scores, grades, rank- system. rely on the direction of their pri- So what are those numbers? Last leans, according to reports, is the ings and ratings. Just last week, for “It’s hard to imagine how con- mary care physician. year, 94 Northeast Ohio startups SEE BIDS, PAGE 7 example, the Centers for Medicare sumers really can utilize that in a SEE RATINGS, PAGE 42 SEE CAPITAL, PAGE 11 Entire contents © 2016 by Crain Communications Inc. 20160801-NEWS--2-NAT-CCI-CL_-- 7/29/2016 2:23 PM Page 1 PAGE 2 z AUGUST 1 - 7, 2016 z CRAIN’S CLEVELAND BUSINESS Breakthrough’s newest spot will get Head Start By RACHEL ABBEY McCAFFERTY [email protected] @ramccafferty On Aug. 16, Breakthrough Schools will officially open the doors on its newest educational option, the E Prep & Village Prep Willard Campus. It’s not the first new school the charter school network has launched, and it’s not likely to be the last, either. John Zitzner, president of Friends of Breakthrough Schools, said the oper- ator would like to grow the network to 19 or 20 schools by 2020. It will have 12 schools on 10 campuses after E Prep & Village Prep Willard open. “What Alan and I have said from Mark Lenart, owner’s representative for Breakthrough Charter Schools, the beginning is we’re in this to funda- shows off the plans for the E Prep & Village Prep Willard campus. mentally change the face of education in Cleveland. And we think you can’t aware of the school. Jacklyn A. Chisholm, president do that with two or three schools,” “It’s a big lift to fill the first few class- and CEO of the Council for Econom- Zitzner said. “But maybe with 20 es and the first few years,” he said. ic Opportunities in Greater Cleve- schools, we can make an impact.” And E Prep & Village Prep Willard is land, which runs the Head Start pro- Alan Rosskamm, CEO for Break- a bit unique for Breakthrough. The gram, said the group thought pairing through Schools, said the network school will share a building with a Head with Breakthrough would be a “mar- wants to be “part of the solution for Start program, which Rosskamm said riage of strength.” She wants the Cleveland.” Breakthrough gets asked he would like to see as a trend going for- school to be a model for future Pre- to start schools in other communi- ward. It has previously shared space K-8 programs. The school will start ties, he said, but it wants to work in with a preschool at one of its Intergen- with three kindergarten classes and the city. The driving force behind the erational Schools, and the Centers for one first grade class in the fall, each network’s planning process is Families and Children will open a with about 30 students and two “need,” he said, whether that’s de- preschool at one of its Citizens Acade- teachers, according to an email from The cost of buying and rehabbing the old school will be about $7 million. termined by community demand or mies this fall. Breakthrough has a vari- vice president of communications by the data, like the Willard school. ety of school models in its portfolio. Lyman Millard. By the 2019-2020 gone into that area in the past 10 to Village Prep Willard in the past year: 12 years, she said, but the Willard But that doesn’t mean opening a Zitzner said Breakthrough inten- school year, the Willard campus will The building new school is old hat for Break- tionally made E Prep & Village Prep house preschool through 8th grade. building has been underused. She through. A lot of work goes into this Willard smaller so Head Start could Anita Brindza, executive director hopes that having a public school Friends of Breakthrough Schools kind of launch, from revamping the stay on the Willard campus. It will of- of community development corpo- option that doesn’t require those bought the building at 2220 W. 95th building to hiring the teachers to cre- fer a strong feeder system to the ration Cudell Improvement Inc., families to cross a major street will St., in the Cudell neighborhood of ating the arrival and dismissal plans. school, he said, and one that thinks the new school will be a “great encourage them to stay in the area. Cleveland, in March. The network Zitzner said the first year is the Rosskamm said will be made up of opportunity” for the community. A Here’s an overview of the work doesn’t have the funding to build toughest in terms of getting families kindergarten-ready students. number of lofts and homes have Breakthrough has put into E Prep & new, so it’s always watching for “old SALT • SALT • SALT • Water Softener • Industrial • Food • Ice Melt • Sea Salt Call For Pricing!! Minimum Delivery:1Pallet WIN THIS WAY... A PRIZE EVERYDAY! GUARANTEED prizes EVERY DAY in August! Swipe your Rock Star Rewards card daily between 9am and 11pm to win instant prizes like Free Play, Comedy Zone & Concert tickets, Free Restaurant Credits, Rock Shop gear, Free Play Tournament entries, Lottery Tickets, Golden Tickets and more! • MONDAYS – Bonus prizes include Free spins on the Prize Wheel to win pro sports tickets, Hard Rock logo gear, and merchandise autographed by Bernie Kosar and other Hard Rock celebrities! • TUESDAYS & THURSDAYS – Pick Your Prize Days! 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