innovation

HAHDhAHSDHAHS

The Power of Innovation: Why The Hardtech Showcase is a Game-Changer

Posted on by Joe Ball

The Power of Innovation: Why The Hardtech Showcase is a Game-Changer

In the ever-evolving world of technology, breakthroughs don’t just happen in Silicon Valley or within the confines of software. Hardtech—where tangible, physical innovations come to life—plays an equally pivotal role in shaping the future. From cutting-edge materials to groundbreaking solutions in transportation, energy and manufacturing, hardtech startups are laying the groundwork for the next wave of industrial transformation. But for these founders to take their innovations to the next level, they need more than just brilliant ideas—they need the right platform, connections and support. That’s why events like The Heritage Group Accelerator’s Hardtech Showcase are not only vital but transformative.

The Heritage Group understands that groundbreaking ideas can come from anywhere. By hosting a dedicated showcase for hardtech startups, we’re creating a bridge between the visionaries who are developing next-gen technologies and the industry leaders and investors who can propel those visions into reality.

“The Heritage Group Accelerator taught us how to tell our story,” said Mark Collins, CEO and founder of Emission Free Generators as well as an alumni of the Accelerator. Storytelling is not only key to a successful showcase presentation, it makes an impact with investors as well. For Collins, that meant standing out among over 180 applicants to secure support from the Rocket Fund.

The value of this event is its ability to bring together two worlds that need each other: startup founders, who are often pushing the boundaries of what’s possible with limited resources, and industry giants, who have the experience, capital and infrastructure to turn those possibilities into scalable solutions. For the founders, it’s an unparalleled opportunity to present their innovations to an audience that can fuel their growth. Whether it’s a new material that will revolutionize construction or a breakthrough energy storage solution that could reshape the renewable energy sector, the ideas on display at the showcase have the potential to change entire industries.

For investors and industry leaders, the Hardtech Showcase is a front-row seat to the future of hardtech. Having access to these innovative startups can make all the difference, and these decision-makers get to see first-hand the ingenuity behind the pitches. The chance to interact directly with the minds behind the innovations—hearing their stories, understanding their challenges and seeing their solutions up close—provides a level of engagement far beyond reading reports or reviewing portfolios. It’s also an opportunity to see how the Accelerator makes an impact on founders.

“The Accelerator pushed the limits of what I thought was possible,” said Nick McRae, Chief Executive Officer of BroadLoop and another program alumni. “It’s changed the way that I operate the business, the way I think about growing more quickly and what’s possible for our company.”

New ways of thinking are at the heart of The Hardtech Showcase, which goes beyond pitching to foster a true collaborative environment. It’s not just about attracting investment—it’s about building relationships. Founders leave the event with invaluable feedback, mentorship and potential partnerships. In turn, industry leaders gain insights into emerging trends and technologies that can keep their companies and products ahead of the curve.

At its core, The Heritage Group Accelerator’s Hardtech Showcase is about celebrating innovation in its most tangible form. It’s about recognizing the immense value that comes from building solutions that are not only visionary but practical and world-changing. For the startup founders, it’s a moment to be heard and supported. For investors and industry leaders, it’s an opportunity to be part of something bigger than themselves—supporting the kind of innovation that doesn’t just influence industries but transforms the way we live and work. While the Hardtech Showcase is the culmination of an intensive 13-week program, it’s also the start of a brighter, more innovative future, all thanks to the hardtech visionaries who dare to dream—and the platforms like The Heritage Group that help make those dreams a reality.

HAHDhAHSDHAHS

Driving the Future of Octane

Posted on by Joe Ball

At the Octane National Symposium, held in Indianapolis in late-April 2024, Monument Chemical brought together key players together for once-of-a-lifetime experience.

From April 22 to 24, over one hundred industry experts and technicians flew in from all over the country to swap stories and gain insight into the future of octane fuels. Monument’s Indianapolis Octane National Symposium created an intersection for proven experience and fresh perspectives to give attendees a valuable look into emerging industry trends — and how we’re taking full advantage. And true to Monument fashion, we took the conference experience to another level, hosting it at the Heritage Center with a truly one-of-a-kind tour at the Indianapolis Motor Speedway.

“As a leader in the Octane space, it was our goal to bring together key players in our industry to share best practices on the nuances of Octane measurement,” Indresh Mathur, Director of Innovation and Customer Solutions at Monument, explained. “In addition, we shared our expanded capabilities and investments in the renewable fuels business, particularly in the racing industry, as well as how we leverage decades of history and experience through Haltermann Solutions to support our customers in all the areas they need. This Symposium is just one of many ways we’re raising the bar.”

After a night of networking and introductions, the first day of the three-day event included technical sessions and panel discussions, featuring business leaders from Sunoco, Marathon, ExxonMobil, Argonne Laboratory, and more, as well as several members of the Octane measurement and racing community.

“Our speakers were thoughtfully chosen to facilitate the most effective transfer of knowledge across the industry,” Sarves Peri, VP, Business Leader Monument Renewables and Fuels, shared. “There are a lot of highly experienced leaders entering retirement, so we wanted to give their expertise a platform to educate the young people in our field who are shaping the landscape and designing the future of Octane and Cetane measurement.”

“Following the conference, participants were eager to share positive feedback with the Monument team,” Indresh added.

“Monument did a great job coordinating the event and keeping all the attendees engaged with the presentations, while creating a relaxed, open atmosphere where we could all share insights and stories about our experiences in testing fuels,” Zachary Santner, Manager, Product Engineering and Business Optimization at Sunoco Performance Products, shared. “Building my network of resources for octane testing gave me a lot of confidence in continuing to find parts and service for our old equipment — which is extremely valuable for Sunoco and me personally in navigating any issues my team might encounter related to the knock engines.”

That afternoon, a bus took all attendees to the Indianapolis Motor Speedway for a special access tour led by the head of track operations. Working closely with Milestone, everyone was able not only to get exclusive access to the track itself, but also to see and learn all about a real pace car first-hand.

“I feel like Monument went above and beyond any expectation that anyone had,” Stacy Perry, Refining Analytical & Development’s Quality Programs Compliance Specialist, Marathon. “The tour of the raceway was a once in a lifetime experience for me. But my favorite part of the experience was meeting individuals who have been in the business for many years. Hearing their experience and life lessons is an invaluable practice that provides benefits to everyone. I learned more in the two days of this symposium than I have learned in the ten years I have been in the refining industry.”

Day two featured a highly technical agenda in collaboration with the Joint Regional Octane Group Meeting. Sessions were tailored specifically to these members, while all other attendees had the opportunity to tour The Heritage Lab, as employees shared the history of our research, as well as our current and emerging capabilities in renewable fuels.

“The Center was an amazing venue,” Stacy added. “I got a chance to walk around the woodland trails and fell in love with the creative world they have created!”

From one-of-a-kind tours to invaluable networking and knowledge sharing, Monument is extremely proud of the success of our first Octane Symposium. We’re grateful for our collaboration with CFR Engines Inc., the regional groups, our sponsors, and all the participants in coming together to share valuable perspectives and insights.

“Our role as an industry leader goes far beyond buying and selling Octane and Cetane reference fuels,” Sarves explained. “It’s our responsibility to understand the big picture, how the industry environment is changing, how that impacts our customers’ needs, and how we respond with solutions. And we then share that information with our partners and even our competitors. That’s what being a leader is all about, and we’re very excited about what the future has in store.”

HAHDhAHSDHAHS

Fueling Discovery

Posted on by Joe Ball

In the race for innovation, there’s no greater proving grounds than the Indianapolis Motor Speedway (IMS). Throughout its storied history, the Speedway embodies the spirit of discovery.

Indianapolis Motor Speedway has played a pivotal role in shaping the landscape of motorsports worldwide. The Speedway’s marquee event, the Indianapolis 500, has inspired countless imitations and adaptations, solidifying its status as the pinnacle of motorsport. The Indianapolis 500, often referred to as “The Greatest Spectacle in Racing,” is the crown jewel of racing in America. This annual event draws hundreds of thousands of fans to witness the world’s best drivers compete in a grueling 500-mile race. The event’s significance transcends sports, becoming a cultural phenomenon that symbolizes the spirit of competition, perseverance and ingenuity.

The Heritage Group and our operating companies have stood alongside the Indianapolis Motor Speedway for decades. Together, we push boundaries, harnessing emerging science to propel progress forward. But, how exactly, did this long-standing partnership come about?

Our first company, Crystal Flash, sponsored a car for the 1937 running of the Indianapolis 500. Beginning in the late 1950s, Asphalt Materials, Inc. (AMI), a member of Heritage Construction + Materials (HC+M), began supplying bituminous materials for use in track repairs. This partnership continued and expanded in 1988 when Heritage Research Group (HRG), the research and development team of The Heritage Group, designed specific asphalt mixes for the Speedway’s oval.

Since then, the partnership between the two institutions has only strengthened. As time wore on and the track’s racing surface was subjected to the ever-changing climate of Indiana, it was time to update the asphalt, which at the time was only lasting around seven years. When it came to repaving the surface, IMS called upon Heritage to oversee and execute the sensitive work.

It wasn’t until 2013 that the full strength and capabilities of the various operating companies of The Heritage Group were put on display. On October 1, 2013, IndyCar and IMS officials announced a new event, a grand prix race on a road course, to be held in May 2014. However, an entirely new track needed to be designed and built in a very short amount of time. The road course project united Heritage Research Group, Milestone Contractors, US Aggregates and Asphalt Materials, Inc. to complete the work prior to the upcoming winter season which would halt any on-track construction. The work was completed to specifications on time, and the inaugural Indianapolis Grand Prix was held May 10, 2014, just seven months following the event’s announcement.

Enduring Spirit of Innovation

The pursuit of speed at the Indianapolis Motor Speedway has also been a catalyst for scientific discovery. Engineers and mechanics continuously strive to enhance the performance and safety of race cars, often pioneering technologies that eventually find their way into commercial vehicles. From rearview mirrors to disc brakes, from seatbelts to increased fuel efficiency, all of these innovations were first tested at the Speedway before making their way to your personal automobile.

The innovations born on the track often have far-reaching implications beyond racing, contributing to advancements in automotive technology, transportation systems and even environmental sustainability. For example, developments in hybrid and electric vehicle technology, spurred in part by the push for greater fuel efficiency in racing, have the potential to revolutionize the automotive industry and reduce carbon emissions.

Beyond its role as a hub for innovation and scientific discovery, the Indianapolis Motor Speedway holds a special place in the hearts of racing enthusiasts worldwide. The speedway’s illustrious history is dotted with legendary drivers, unforgettable races and dramatic moments that have captivated audiences for generations. From the first Indianapolis 500 in 1911 to the present day, the speedway has been a dramatic stage for both motorsports and human achievement.

“Find those partners that understand your mission and that are willing to work alongside you to make it better,” noted Doug Boles, President of Indianapolis Motor Speedway. “That’s one of the things we love so much about Heritage. We could not have the Indianapolis Motor Speedway and the Indianapolis 500 without our partners at Heritage.”

The enduring partnership between the Speedway and The Heritage Group drives a relentless pursuit of excellence, shaping the next generation of safety, speed and success — both on and off the track.

 

HAHDhAHSDHAHS

Envita Solutions: Leading By Example

Posted on by Joe Ball

Since 2001, Envita Solutions has been a devoted partner to customers, helping them tackle their most complex waste and sustainability challenges. Since its inception, Envita Solutions has continued to evolve with the changing sustainability landscape. From circularity strategies, increased recycling, waste minimization, landfill diversion, equipment optimization, cost savings – and everything in between – Envita Solutions understands the dynamic decision points its customers are weighing.

Envita Solutions exists to protect human health and the environment. As the premier provider of total waste management services in North America, they walk the talk in working towards their own ambitious sustainability goals.

Carbon Neutrality

To further its environmental impact goals and continue leading by example, Envita Solutions has achieved carbon neutrality across its North American operations. In addition to structural changes to minimize GHG release, Envita Solutions also procured carbon credits from N2O abatement projects to offset harder-to-decarbonize business operations. Envita Solutions’ carbon credit strategy was guided by ClimeCo, a trusted carbon credit market leader with the highest standards of environmental commodity products. Over the next decade, Envita Solutions will work to reduce GHG emissions so each subsequent year they rely less and less on the offset market to support climate resilience.

Environmental Impact Reporting

Creating a sustainability plan requires extensive decision-making with a focus on long-term impact. Envita relies on both The Carbon Disclosure Project (CDP) and EcoVadis to help identify benefits and risks as well as improve performance and accountability on their sustainability journey. CDP supports Envita Solutions in managing its environmental impact through reporting and risk management with programs focusing on climate change, water, supply chains, forests, and cities. EcoVadis is a globally recognized assessment platform that Envita Solutions utilizes for reporting. It allows Envita Solutions to see the full picture of how their sustainability decisions influence four main categories: environmental impact, labor, procurement practices, and human rights standards/ethics.

Zero-Waste-to-Landfill

Envita Solutions has proudly helped more than 300 of its customers’ facilities achieve zero-waste-to-landfill certification. This means that they send zero discards to landfills or high-temperature destruction, instead diverting it to more sustainable means. Of course, all of Envita Solutions’ facilities in both the United States and Mexico are also proudly zero-waste-to-landfill certified.

Envita Solutions is the industry leader in delivering transformative sustainability across North America and they’re not slowing down any time soon!

HAHDhAHSDHAHS

Progress Over Perfection

Posted on by Joe Ball

Amy Schumacher is CEO of The Heritage Group, a U.S. based sustainability investor. Amy tells Nomura Greentech that she is applying generations of business experience to grow vital new industries such as battery recycling.

This interview first appeared in the Winter 2023 edition of Nomura Greentech, and is reposted here for promotional purposes.

“We have been in the environmental sector for over 50 years.”

 

What first sparked your interest in sustainability?

At The Heritage Group we are a fourth generation, privately held, family-owned business. We think in terms of decades and ultimately generations, that’s how we are still around.

We have been in the environmental sector for over 50 years. My father founded that part of our organization, and I grew up in that world.

My spark is tied to how we define sustainability as people, planet and communities, as well as our common vision, centered on leaving the world better than we found it.

From early teenage summer jobs to my current CEO responsibilities, sustainability has always been a part of me.

How concerned are you about climate change and the pace at which the world is collectively trying to solve this problem?

We are all citizens of the world on this particular issue and I think everyone needs to explore what they can do to address climate change.

Both big initiatives and small steps can create a significant impact. For example, we’ve taken the small, but important step of eliminating single-use plastic bottles at our headquarters, and other Heritage locations are beginning to do the same. On a larger scale, we’re part of an initiative that’s introducing sustainable solutions into the construction of airport runways.

Tackling climate change is fraught with challenges from inconsistencies in language and measurement, to lack of global alignment and keeping up with rapidly evolving regulation.

I am concerned that the challenge may seem too daunting or the solutions so complex that people either get discouraged or spend too much time debating rather than taking meaningful steps forward.

At The Heritage Group, at least on our sustainability journey, we have adopted the mantra of ‘progress over perfection’ – in other words, even if our action is somewhat imperfect, we’ve ultimately made more progress than if we hadn’t begun at all.

As CEO you oversee The Heritage Group’s portfolio of more than 50 businesses and 6,000 employees. What’s your ethos when it comes to sustainability, capital allocation and investment or acquisitions?

The way we consider sustainability in making investment decisions has changed dramatically. It was always in the ether, but it’s now front and center as a factor that we actively discuss as it relates to strategic investments.

Our portfolio is very diverse. We have some companies that operate directly in the environmental services space and others in various adjacencies around it.

In addition to our core business areas, we have grown our investment thesis into new platforms that ultimately service our sustainability mission. In our HG Ventures portfolio, a hard-tech focused venture strategy, I can’t think of an investment we have made that doesn’t support our sustainability goals.

The DNA of The Heritage Group is in materials science. You have a focus on chemicals, construction materials and environmental services. How are you looking to bring sustainability into these businesses and which one is the hardest to decarbonize?

I’m really proud to be in these sectors and I’m committed to supporting their transition.

When I think about some of our legacy core businesses, we have embraced circularity for a very long time. Take reclaimed asphalt pavement, or RAP, one of the most recycled materials in the U.S., or recovering zinc from one of the largest solid hazardous waste streams in the country.

To decarbonize these businesses, we have long leveraged our Heritage Research Group, which uses science and technology to do more with less and do things differently.

This means harnessing our expertise in specialty chemicals and sustainable fuels to drive development or taking a waste stream from one industry to create an environmentally friendly solution in another or even optimizing processes, not only to reduce waste, but also to decrease our environmental footprint.

Quite often the decarbonization challenge is difficult and instead of leaning in, many investors exit and transfer the problem to someone else. We see that all the time and instead, we are using our expertise in science to drive sustainable solutions.

Which areas are you focused on for new investment and which of your past investments have yielded the biggest sustainability impact?

From an investment perspective, we are always looking at aligning our capabilities with the next emerging macro trend or tailwind – that’s when we are at our best.

Our investment in Cirba Solutions, the largest lithium-ion battery recycler in North America, is a good example of a recent success and where we plan on maintaining our focus in the near term.

Battery recycling is set to benefit from the rapid expansion in the global EV market and the U.S. will continue to develop at a fast pace as there’s a shortage of mineral inputs. Batteries are also associated with geopolitical and societal challenges considering where in the world some of these raw materials are located so recycling can help mitigate these issues.

Our strategy for Cirba Solutions was to look at that emerging opportunity and match it with the expertise within our portfolio companies to accelerate its development.

When I think about our past investments and current capabilities, what gave us the courage to commit to building and ultimately growing Cirba, was our understanding of recycling. We have capabilities in collection, and expertise in the science and technology of reusing materials.

With our track record of successfully handling challenging materials, we see an opportunity to be a leader within that industry. It’s a perfect example of where so many of The Heritage Group’s best capabilities really came together to do something impactful.

To what extent do you think the Inflation Reduction Act (IRA) is fast tracking decarbonization solutions and is it helping any of your portfolio companies?

I think it’s too early to understand the full impact of the IRA. It is definitely raising awareness, driving capital investment and accelerating the pace of business growth within the green space.

A number of our businesses, including Cirba Solutions, were recipients of federal Department of Energy grants related to their innovative technology. We were fortunate to have Energy Secretary Jennifer Granholm at our ribbon cutting to celebrate not only the IRA, but what was possible for one of our emerging core businesses.

Envita Solutions is another example of a key Heritage operating business that is helping our customers achieve their goals through the use of data and science to optimize waste management.

While the IRA is not directly benefiting Envita, it is impacting the customers we serve by accelerating their net zero goals and timelines which in turn creates more opportunities.

The IRA is also having a positive effect on our communities. The Children’s Museum of Indianapolis is one of the best museums in the country, and The Heritage Group helped it apply for a Department of Energy sustainability grant through the IRA. We have a strong passion and commitment towards improving our communities.

Which future technologies are you most excited about?

Every year, around this time, I get really excited about welcoming our hard-tech founders into The Heritage Group Accelerator.

The program brings roughly ten very early stage companies to The Heritage Group for 13 weeks to help launch their sustainability businesses in areas such as green materials, infrastructure, environmental solutions and industrial systems.

It’s inspiring to see so many budding entrepreneurs applying their curiosity, talents and creativity to this space and the number of applicants grows exponentially each year.

Specific technologies capturing my attention include: sustainable aviation fuel, low carbon materials, water technology, and, of course, battery recycling.

There are also brand new technologies that we have never envisioned, which provide a glimpse into the future.

In 2030, The Heritage Group celebrates its centenary. What would you like to achieve by then and what legacy would you like to leave?

As a long term family-owned business, we’re building for generations, leaving people, planet and communities better than when we found them.

I’m fortunate to build upon what came before me at Heritage and to plant the seeds for what will come after, and that’s both a privilege and a responsibility.

Aspirationally, I would like to leave The Heritage Group in a place where it will be successful for the next 100 years, not just the next decade.

That means a focus on top talent. We aim to have a collection of world class businesses where smart, hardworking individuals can make a real difference. We are thinking carefully about the people side of our company because people are our greatest asset and hopefully a part of my legacy.

Who’s your sustainable hero and why?

It would be easy to say my grandfather and father; they had the foresight and courage to introduce sustainability concepts into The Heritage Group at a time when no one was talking about it and really laid the foundations for the businesses that we run today.

But honestly, my sustainable hero is my great-uncle Frank who was the steward of our sustainability journey in the early days, when the environmental industry was so much like the Wild West that we felt uncomfortable operating there.

All leaders have defining moments in their history where they can choose diverging paths and great-uncle Frank’s came soon after we had bought a fledgling environmental business. It was hindered by a series of challenges and leadership at the time was considering getting out and moving on.

But great-uncle Frank said “the world needs people like us in this business so we’re going to lean in, not lean out, and do the right thing, always.”

That really became the fabric and DNA of the business. We never stepped into this because of ESG regulatory pressures, financial returns or to jump on the next big macro trend. My forefathers did it because it was the right thing to do and that has served us at the heart of who we are today.

HAHDhAHSDHAHS

Heritage Accelerator Alumnus Wins Innovation Showcase (Again)

Posted on by Amelia Yeager

The Heritage Group Accelerator powered by Techstars fuels innovation by giving participating startups face time with mentors from across the Heritage family of companies, access to the Heritage Research Group, and a dedicated accelerator team supporting the entrepreneurs. The latest proof of the program’s value comes from Ateios, which was selected into the inaugural accelerator program in 2019 and received additional funding from HG Ventures. Ateios placed first of 22 startups in the Venture Club of Indiana’s Innovation Showcase, which serves as a state finals event at the NCAA Hall of Champions.

Ateios CEO Rajan Kumar (left) and HG Ventures’ Jonathan Schalliol at the 2021 Innovation Showcase

Ateios aims to enable innovations through ultra-thin, flexible and conformable batteries. Compared to typical coin cell batteries, Ateios’s flexible models are more than five times thinner and deliver up to five times higher energy density. As Ateios brings their product to market, these capabilities promise to help people around the world through improved wearable medical devices.

Their innovative manufacturing process caught the eye of Jonathan Schalliol, Director at HG Ventures, when the company applied to the Accelerator in 2019. “It was clear from the first time meeting Raj [Kumar] that Ateios had great potential and was an ideal fit for our accelerator. Their novel battery technology and a team driven to do whatever what it takes to bring it to market is a winning combination.” The supportive network and partnerships that Ateios’s team built during the Accelerator made the company more competitive. Ateios has since moved from La Jolla, California to Indiana.

Kumar, CEO of Ateios, is not the first Heritage Group Accelerator founder to take home the first-place prize at the Innovation Showcase. In 2020, judges awarded first place to MITO Materials, whose specialty additives are engineered to help manufacturers create lighter and more durable products. Since the Accelerator, founders Haley Marie and Kevin Keith have been named to Forbes’ 2021 30 Under 30 list in the Manufacturing & Industry division.

There’s a good chance that one or more of this year’s Accelerator class will feature in next year’s Innovation Showcase. Until then, the founders will take advantage of the opportunities and connections provided during their 13 weeks at The Center.

HAHDhAHSDHAHS

Behind Mentor Madness

Posted on by Amelia Yeager

Pictured: HG Ventures Senior Associate Nida Ansari consults with the Simplifyber team.

As The Heritage Group Accelerator powered by Techstars reaches its midpoint, its 2021 cohort of entrepreneurs have spent over 50 hours connecting with more than 70 mentors from both the Heritage family of companies and the Indianapolis business community. Known as Mentor Madness, these three weeks serve as an opportunity for participating startups to make important connections, practice their pitches and engage in valuable discussions about business strategy.

Startup founders meet at The Center.

Utilizing expertise from 30+ operating companies, mentors from The Heritage Group (THG) provide key insights into their markets and industries. Not only does the 13-week accelerator add value to the entrepreneurs, but mentors are exposed to innovative and disruptive technologies that could revolutionize existing processes.

Any businessperson understands that success does not happen alone. For the founders in the cohort, mentors are a vital resource who also benefit from their participation in the program. Linda Osborn, Director of Analytical Research at Heritage Research Group, states that as a mentor, “not only does this (program) allow me to pay it forward as my great mentors did for me, but it is invigorating to be around these entrepreneurs. The founders sometimes develop innovative ways to meet challenges that we face on a global scale.”

THG and program mentors share in the excitement and take pride in seeing the entrepreneurs adapt to challenges and overcome hurdles. Nida Ansari, Senior Associate at HG Ventures, states that “many of these entrepreneurs have had significant personal challenges before getting here, and we get to know what drives them. THG gives them access to labs, resources and minds that these folks will leverage to change their business in leaps and bounds.” The mentors, many with an entrepreneurial background themselves, share personal experiences that founders can relate to and then apply to their own strategies.

Founders attend Techstars’ Concept to Commerce event.

Basil Merriman, Director of Strategy on THG’s Strategy + Mergers & Acquisitions team, says, “My favorite part of being a Techstars mentor is being around the entrepreneurial energy of the founders.  It’s inspiring to see someone create something from nothing, and you can really feel the passion and vitality when working with the teams.” This same energy carries over into THG, as conversations and experiences with the Techstars cohort encourage critical thinking and spark innovation within the Heritage family of companies. “The mindset that comes with partnering with a company like Techstars forces us to think differently and gives us fresh perspective to further differentiate from the competition,” says Chris Ames, Senior Strategic Manager at Heritage Interactive Services.

Anthony Rogers, VP of Technology and Growth for Retriev (formerly Heritage Battery Recycling), says, “I think THG brings a wealth of commercial, business, and technical experience to the table. THG is able to make connections in ways most venture firms aren’t able to, and I think that adds a lot of value to the Techstars companies.” Participating founders utilize these resources leading up to and beyond the program’s culmination, Demo Day, where each startup pitches at The Center to local investors and THG representatives. While Demo Day is the last step of the Accelerator, it’s only one of the first steps in the mission HG Ventures shares with its Accelerator companies: building the future, together.

With every day bringing new chances for innovation, mentors take pride in working with founders to turn big challenges into even bigger opportunities.

HAHDhAHSDHAHS

Innovate to Accelerate

Posted on by Amelia Yeager

How the Heritage Research Group fuels innovation for Techstars Accelerator startups.

–

The Center, Electrified

Those who tuned in to virtual Demo Day, the culmination of the 2020 Heritage Group Accelerator Powered by TechStars, witnessed the final product of the development, strategy and mentoring that went into the 13-week accelerator. Each of the ten founding teams participating—some of whom hailed from as far as the Netherlands—created a five-minute recorded pitch showcasing their startup’s vision, progress and plans for the future. If you just watched the video, you might have missed the months of creative collaboration that laid the foundation for the pitches.

 

Despite the impact of COVID-19, the accelerator produced an “electric” Demo Day, according to Senior Director of HG Ventures Ginger Rothrock. “The environment in the accelerator when it’s full of founders is incredibly active and upbeat,” added Chemistry Research Manager Meghan McLeod of the 13-week process preceding Demo Day. “There’s so much energy. There’s so much excitement.”

Participating founders quickly discover a hidden gem of The Heritage Group (THG) Accelerator: the Heritage Research Group (HRG). When introducing the accelerator in a May 2021 Crowdcast, Nanci Churchill of Techstars touched on this aspect of the program: “The lab that’s on site at The Heritage Group is a world-class facility that allows startup companies to run experiments in cooperation with the HRG lab team, which is phenomenal.”

 

Staffed by a team of experienced chemists and researchers, THG’s in-house research and development laboratory solves some of the biggest business and customer problems among the Heritage family of companies. Their work is behind several innovations that THG harnesses to build a safer, more enriching and sustainable world.

A Dream Team

The process begins with McLeod, whose non-accelerator months are spent overseeing analytical chemistry research for HRG. McLeod acts as a liaison between HRG and the startups involved in the accelerator. “[When] all the companies come in, I have one-on-one meetings with them, and I identify product characterization, development, and pilot opportunities that we can work on during the program,” she described. After this initial meeting, McLeod assesses the tools at her disposal, including those on-premise at HRG facilities (all of which are accessible to accelerator startups). After identifying an expert in the area in question, McLeod assembles a team of researchers to address the startup’s unique issue.

 

The Work Begins

In the case of Mobile Fluid Recovery (MFR), a startup dedicated to the cleaning and reuse of industrial waste streams, the collaboration with HRG took about a month from start to finish. CEO Justin Edmondson described the root of the challenge in his Demo Day pitch as “unlock[ing] the liquids from the solids in the waste stream.”

 

“The waste stream he had was too high in sulfur for resale,” said McLeod, describing high-iron metal fines with resale potential. “Justin already had that in mind, and when we met, that was something he identified as a particular problem the research group could help with.”

 

To resell the metal fines, MFR had to satisfy requirements for sulfur content by removing that element from the waste stream. HRG’s chemists rose to the challenge, taking a sample of metal fines and performing elemental analysis. “We helped him both quantify and type the sulfur, and then come up with an approach to remove it [from the waste stream],” McLeod said. The process evolved to a point where Edmonson’s team could perform it in their own facilities, opening MFR’s services to valuable new customers and, potentially, a new market.

 

“Industrial waste stream management is about a $60 billion industry. We recycle only about 30% of all waste streams today,” said Rothrock, “but the EPA believes about 75% of the waste streams are recyclable. MFR is unlocking the value of waste streams that are not currently recycled… and now, thanks to our research group, [Edmondson] has a solution that adds value to the company and his customer base.”

 

This waste stream innovation also underscores an essential tenet of THG’s mission: sustainability. By reusing the de-sulfured metal fines rather than disposing of them, MFR contributes to the circular economy by eliminating waste and making the most of available resources.

From the Ground Up

Some Accelerator projects have a much longer scope. Sunthetics, a startup that aims to make the development of new molecules more sustainable, harnessed HRG’s resources and brainpower to develop their pilot product: an electron reactor that enables organic synthesis.

 

“Sunthetics was developing new hardware, and we were the first pilot users of the product. So as you can imagine, there was a lot of trial and error in the lab and collaboration with the founders to get to a functional prototype,” said Rothrock.

 

The reactor, which uses electricity to produce a small-scale chemical, is paired with machine learning software, which predicts the most efficient conditions for reactions. Configuring the reactions was just the beginning.

 

“We had a lot more optimization and work that had to go into understanding the system,” said McLeod, who brought together a large team of researchers to work with Sunthetics. “Myself and one other chemist were working with the hardware to perform the reactions, and then we had another part of the team doing the chemical analysis and method development.”

 

The outcome of the accelerator for Sunthetics was an effective, repeatable framework for testing reactions. “We can run the Sunthetics system and demonstrate improvements in efficiency over multiple tests,” said McLeod. “That was a significant outcome for the Sunthetics team.”

 

A Vision Realized

For accelerator startups, the benefits of working with HRG extend far beyond the doors of The Center. For participating startup Pretred, the accelerator served as the perfect place to brainstorm. Working to mitigate the environmental impact of tire waste, founder Eric Davis envisioned road barriers made of recycled tires. “There’s got to be something we can make out of it,” he said in a Techstars Crowdcast of the tire and plastic waste occupying a local river. “It’s high volume and potentially high value.”

 

“We have members of the HRG team who have previously worked in related industries — tire, rubber, resins, all the different components that he was using — so he found a knowledgeable resource in simply having access to those people, brainstorming ideas, [and] talking about his process,” said McLeod.

 

One such team member is Research Engineer Dennis Justice. “The wide range of product and process assignments we participate in sets us apart from other research groups,” he said. “My knowledge, matured in multiple manufacturing environments, aided Pretred directly in building prototypes and rapid production improvements.”

Dennis Justice with the Pretred team and prototype

Justice aided in identifying materials and processes needed for Davis’s idea to become a reality: six-foot-long, one-ton construction barriers made of over 95% recycled material. With his help on the first manufacturing run, Pretred went from proof of concept to a full-scale product in just two weeks. “Over a short period of time, with limited resources, the Pretred sustainable construction product has gone from an idea on paper to a one-ton reality. The company continues to build on these manufacturing learnings and uses the first set of manufactured products to capture customer interest,” said Rothrock.

 

A year out from the accelerator, Pretred is looking forward to commercial scale manufacturing and product launch as well as addressing alternative waste streams. A seed-round investment of $3 million led by HG Ventures proves Pretred’s potential within the hard tech industry.

 

Justin Edmonds, founder and CEO of MFR, will be deepening his relationship with Heritage Interactive Services. “He’s made strong connections with the business unit and is actively working with them to help solve our customer’s waste problems,” Rothrock said.

 

Currently, the founders of Sunthetics are moving forward with the reaction method pioneered in collaboration with HRG. “That’s actually one of the biggest takeaways: now they have an established method for data analysis to use with targeted customers,” said McLeod.

 

After the Accelerator

Startups leave the Heritage Group Accelerator with 13 weeks’ worth of collaboration, creativity and innovation that translate into an incredible amount of business value. In return, the impact they leave behind is a major motivator for the Heritage family. “I just love that the broader Heritage Group gets exposed to entrepreneurs and their thinking, their energy,” said Rothrock. “It’s electric. It’s awesome.”

 

As the 2021 cohort of startups travels to Indianapolis for their own turn at the accelerator, Rothrock anticipates seeing The Center once again abuzz with the same lively dynamic. McLeod agrees: “There were ten different companies that were in completely different markets, and I got to learn about all of them and be involved in that process,” she said. “Our ability to catapult both their technical and business development is incredibly valuable.”

 

To learn more about the accelerator, visit hgventures.com/hgaccelerator/.