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Buffalo start-ups aim to impress investors

Three local companies to present at forum with funding potential

By Matt Glynn
NEWS BUSINESS REPORTER

Oral Health Innovations has ambitious growth plans, but it needs to attract additional funding.

The Buffalo start-up is developing an automated, hands-free device to help people with limited dexterity to brush their teeth. The company will have a chance to capture the investment community’s interest in the product today at a forum in Albany.

“As we go to the venture capital forum, we’d like to give an opportunity to someone who would like to take a stake in the company, with the understanding there will be an exit [for the investor] in the near future,” said Eric Cornavaca, Oral Health’s chief executive officer.

Oral Health is one of three early-stage companies from the Buffalo area presenting its business plan at the ninth annual SmartStart UNYTECH Venture Forum. A total of 26 companies from around the state are participating.

The forum is not a competition where prize money is awarded. Instead, it allows the presenters to gain exposure for their innovations with investors.

Investments could follow, which could in turn create jobs in the region as the companies grow. Organizers say of the 199 companies that have presented in past years, 62 have ended up raising more than $361 million in equity financing, including more than $70 million directly attributable to their participation in the forum.

The two other local companies presenting are TheraSyn Pharmaceuticals Inc. in Buffalo, and Hyper Wall in East Aurora. A total of 36 high-growth technology companies from around the state applied before the field was cut to 26 through a selection process.

TheraSyn is creating coatings for medical devices. The venture forum has developed a reputation for connecting investors with new projects, said Michael J. Green, chief executive officer.

“We’re doing it as a marketing sales opportunity,” Green said. The company envisions building a base of employment in Buffalo, he said.

What about the notion of attracting investor dollars during a downturn in the economy? Green said he does not see that as an impediment— many investors, he said, are looking for places to put their money outside of the stock market.

Hyper Wall is developing “green” technology that makers of exterior wall panels would use to insulate their wall panels as they are manufactured, thus making them more energy efficient.

Part of the forum’s appeal for the company is receiving feedback on its business proposal and how to better position Hyper Wall in the market, said David Martens, one of the principals.

“We’re very open minded about ideas,” he said. “Our company is all about what’s the best idea.”

The company is seeking about $500,000 in investor funding, he said. Martens said the forum’s qualification process is a plus.

“It’s certainly a privilege for us to have an opportunity to present our idea and our business model to the folks at the conference,” he said.

Oral Health has received $380,000 in private and public financing and hopes to line up $1.4 million in new capital, Cornavaca said.

The company is preparing to switch to a new name it is not ready to reveal, he said. It is developing a prototype with the help of Polymer Conversions in Orchard Park and has clinical trials scheduled for early next year.

Part of the company’s vision, Cornavaca said, is to not only create new jobs but generate business for area vendors.

The forum is presented by the Center for Economic Growth in Albany. UNYTECH is collaborative effort among leading research institutions in Upstate New York, including the University at Buffalo and Alfred University.

The forum highlights innovations from universities as well as entrepreneurs in Upstate.