## The University of Minnesota's Startup Surge

In the past five years, only four universities have spun off **20 or more startups annually**. The **University of Minnesota** ranks among this elite group, cementing its status as a major player in academic entrepreneurship.

### TechCom: The Engine Behind the Growth

The University's **Technology Commercialization Office (TechCom)** focuses on transforming research ideas into viable business prospects. Since 2006, TechCom has been involved with **285 startups**, with nearly half of that growth occurring since 2020. Their initiatives span from **protecting intellectual property** to licensing inventions and backing startup companies.

![Rick Huebsch posing for photo](https://img.apmcdn.org/8cc5928f0c6f65b46f74a0a161d7056c9f154126/uncropped/3a20ed-20251121-rick-huebsch-posing-for-photo-600.jpg)

*Rick Huebsch, Associate Vice President for Research and Innovation at TechCom*

"We're actually generating money and recurring revenue that we can then put into new startups and new research," said **Rick Huebsch**, Associate Vice President for Research and Innovation at TechCom. "And we have an ecosystem within the university that we can really help those startups."

### Economic Impact and Job Creation

TechCom's work not only generates revenue for the university but also enhances the U's reputation as relevant to Minnesota's economy. This comes at a critical time when federal funding for university research faces uncertainty.

The startups originating from the University of Minnesota have collectively raised **$3.4 billion in outside capital** and created **1,500 high-tech jobs**. Remarkably, **nearly 70% of these companies remain in Minnesota**, strengthening the local economy.

![A person wears lab equipment in a lab](https://img.apmcdn.org/f3c43d13f2c2ad8f6be8cac17a71aeb5ab1fa8fb/uncropped/0b6721-20251120-pfas-waste-claros-02-600.jpg)

*A Claros Technologies engineer works in the company's PFAS destruction and testing facility*

### Building a Sustainable Innovation Ecosystem

"Having a healthy ecosystem isn't having one or two people around. It's having a set of people so that when you need the talent, they're here. When you need to have people that understand intellectual property, they're here. When you're trying to build things like AI, you have people here," Huebsch explained. "It's kind of that great circle of innovation."

### Case Study: Claros Technologies

The innovation circle includes companies like **Claros Technologies**, headquartered in Minneapolis. The company's proprietary technology focuses on destroying **PFAS waste** or "forever chemicals" - substances critical to manufacturing but linked to serious health problems.

![ClarosTechUV™ PFAS Destruction System](https://img.apmcdn.org/95d3afc6ea6803542069cfb5a7c0dbf5747e6874/uncropped/d70efd-20251120-pfas-waste-claros-01-600.jpg)

*ClarosTechUV™ PFAS Destruction System*

"The kernel came from the University of Minnesota, and that is where my co-founder, John Brockgreitens, is from," said **Michelle Bellanca**, co-founder and CEO of Claros. The company licensed several patents from the university involving PFAS capture technology, marking the beginning of Claros.

![Michelle Bellanca, co-founder and CEO of Claros](https://img.apmcdn.org/197ca3b5239637c0c4063f5c09df1150aed66e9b/uncropped/1dbc13-20251120-pfas-waste-claros-03-600.jpg)

*Michelle Bellanca, co-founder and CEO of Claros*

### Why Universities Are Embracing Commercialization

According to **Brian Rosenberg**, former head of Macalester College and current visiting professor at Harvard Graduate School of Education, three key factors drive universities toward research commercialization:

1. **Entrepreneurship culture** has become central to higher education, influenced by Silicon Valley's success and tech company valuations.

2. **University reputations** need bolstering amid public skepticism about college costs and value, making startup spin-offs tangible proof of economic contribution.

3. **Unreliable federal funding** has forced universities to seek alternative revenue sources, with startup monetization becoming increasingly attractive.

### Record-Breaking Momentum

TechCom spun off a **record 26 startups** this past year, with ambitions to ramp up to **30-50 startups annually**. This accelerated pace promises to significantly boost Minnesota's entrepreneurial ecosystem and solidify the university's role as an innovation powerhouse.

The University of Minnesota’s Technology Commercialization Office has been involved with 285 startups since 2006. TechCom spun off a record 26 startups this past year. The ambition is to ramp up to 30-50 startups a year.

How the University of Minnesota Became a Startup Powerhouse: Spinning Off Record-Breaking Ventures

At just 29, **Brian Zhan**, who practices what he describes as "nerdy investing," has already made early bets on buzzy AI companies now valued in the billions.

After quietly leaving Silicon Valley VC firm CRV this summer, Zhan recently joined **Striker Venture Partners**, where he and veteran investor **Max Gazor** plan to upend traditional VC playbooks with a **$165 million fund** that aims to make massive seed bets on the next generation of AI startups.

"We're only investing in 10 companies per fund, and we're going to show up with checks up to **$30 million**," Zhan said. "That takes conviction."

$30 million is what companies typically raise in a later funding round once they have achieved product-market fit, but Zhan believes VC is undergoing a radical transformation that requires firms to pounce with big checks when an early kernel of an idea presents itself.

"Seed-stage investing is moving earlier and earlier," he said. "Seed rounds today are often just 22-year-old founders with a great idea."

Zhan, who studied computer science at Northwestern University and started his career writing code at Facebook, is emblematic of a shift taking place in venture, where investors switch firms more often and **technical backgrounds** are prized above MBAs because many of the most promising new startups have few business metrics to evaluate.

"It was on the Facebook data team where I saw a pattern that really stuck with me," he said. "The best technical minds at the company were founding startups and then struggling to raise meaningful capital, despite having résumés that Silicon Valley normally drools over."

He started angel investing in his spare time, writing small checks into projects led by former Facebook engineers. At CRV, Zhan transitioned to a full-time VC role, making early bets on **Skild AI**, **Dyna Robotics**, and **Periodic Labs**.

"Today, these companies are some of the best-known companies in AI, but back at the seed round, a lot of VCs just didn't really know who these founders were," Zhan said.

His biggest win so far is the model startup **Reflection AI**, which he views as proof that VCs should not be afraid to pay up in seed rounds.

Zhan was part of the team at CRV that invested in Reflection AI's seed round just last year at a $200 million valuation, a very expensive price that many other VCs passed up. Last month, the company raised $2 billion at a valuation of $8 billion.

"Founders want someone who can speak their language," said Misha Laskin, CEO and cofounder of Reflection AI. "Brian is rare in that he's actually done the work, is incredibly well connected, and is insightful about what's happening at the frontier."

## Excited about AI for science

Zhan grew up in Hong Kong, Beijing, and Palo Alto. His older sister is Stephanie Zhan, a general partner at Sequoia Capital, who was also an early backer of Reflection AI and Skild AI.

"I would say we have very similar tastes, and sometimes we land on the same companies," Brian Zhan said.

Asked if they will be discussing deals around the Thanksgiving table, he said: "No, we keep work separate."

While many VCs spend their days in coffee shops meeting as many founders as possible, Zhan finds it more useful to devote hours a day to reading the latest AI research curated by his own custom AI assistant.

He says he was drawn to reunite with Gazor, an MIT Ph.D. dropout who has appeared four times on the Forbes Midas list, because of their similar intellectual style.

"We spend all morning reading papers and trying to identify the trends and who has the most exciting ideas," Zhan said. "We take very few meetings every day. We just spend more time figuring out what the frontier is, and when we reach out to founders, we have already made up our mind to go back to them."

Gazor, who is probably best known for his early investment in Airtable, helped recruit Zhan to CRV in 2023 and wanted to work with him again.

"I saw him become one of the most trusted advisors to some of the most high-profile AI founders, and I was really in awe of how he related to them," Gazor said. "He's got a fantastic trajectory ahead of him."

Zhan says he is most excited about founders who are harnessing the power of AI for science, such as William Fedus, a former OpenAI researcher who recently cofounded Periodic Labs to automate scientific discovery.

"Imagine if we could use AI to dramatically shorten drug discovery timelines?" Zhan said. "I think that **AI for science** will become as big a category as AI for robotics is today."

Brian Zhan and Max Gazor, formerly of CRV, will employ an unusually bold high-risk/high-reward strategy, making massive bets out of their debut fund.

This VC's $30M Seed Bets Are Rewriting the AI Startup Playbook

## Europe's Growing Confidence in Tech

Good morning! I'm tech reporter Beatrice Nolan, reporting from Slush, one of Europe's premier startup events. Despite the chilly 26°F temperatures, the atmosphere was warm with enthusiasm as over **13,000 attendees**, including **3,500 investors** and **6,000 startups and scaleups**, gathered in Helsinki. A significant **80% hailed from European countries**, spanning northern Europe, Germany, France, and central and southern regions.

## Regulatory Challenges and Talent Triumphs

Europe has faced criticism in recent years for its stringent regulatory environment, particularly the EU's **AI Act**, which some argue hampers innovation and puts the region behind in the global AI race. However, European founders and investors are brimming with confidence, largely due to a **growing talent advantage**.

Creandum founder Staffan Helgesson expressed his optimism during a panel: "I've never been more bullish about Europe. We have great founders, investors, and talent. **Europe has a talent advantage right now**, with the U.S. cutting down on immigration."

## The Cost and Quality of Talent

Gravis Robotics CEO Ryan Luke Johns highlighted that the **"cost of talent" is much lower** in Europe. He noted, "Initiatives in the U.S. that make it hard for foreign students to secure visas have driven many to Switzerland and Europe, rapidly increasing **talent density**."

## AI Ecosystem: A Quiet Strength

The AI hype was palpable at Slush, but founders see Europe's less frenetic AI scene as a benefit. Laurent Sifre, former DeepMind engineer and CTO of French AI startup H-company, told Fortune that Europe is rich in **untapped AI talent**. He emphasized, "Europe's real advantage is its **world-class talent**: people who prefer building from zero-to-one, moving fast, and working with purpose over Big Tech dreams."

Anton Osika, CEO of Swedish AI unicorn Lovable, shared how keeping the company in Stockholm and attracting U.S. talent has fueled rapid growth. He said, "Europe is in many ways a **better place for AI development** and building product companies, contrary to the push to move to Silicon Valley."

## Regulatory Shifts and Future Outlook

Recently, the EU proposed scaling back some privacy and AI laws to address competitiveness concerns, facing pushback but framed as a "simplification." Despite this, the mood at Slush was unified: **Europe's tech ecosystem is thriving**. As the event's banner proclaimed, "Still doubting Europe? Go to Hel!"

## Venture Deals Spotlight

- **Sorcero**: A Washington, D.C.-based AI platform for life sciences raised **$42.5 million in Series B funding** led by NewSpring Growth.
- **Nest Health**: A New Orleans-based family healthcare platform secured **$22.5 million in Series A funding** from Socium Ventures and others.
- **Annie**: A Lehi, Utah-based AI model for dental practices raised **$4 million in seed funding** led by Las Olas Venture Capital.

## Private Equity Highlights

- **Majesco**, backed by Thoma Bravo, agreed to acquire **Vitech**, a cloud-native benefits software provider.
- **TA Associates** acquired a minority stake in **Aeris**, an IoT technology company.

Founders and investors at Slush say Europe’s growing talent pool and the U.S.'s immigration crack-down is giving the region a competitive edge.

Europe's Secret Weapon: How a Talent Boom is Fueling a Startup Revolution

The first time Rhoback co-founders Matt (MBA ’16) and Kristina Loftus (MBA ’17) spotted someone wearing one of their polos on Charlottesville’s Downtown Mall, it stopped them in their tracks.

“I freaked out and ran over to figure out how they knew about the brand,” Matt recalled. “Seeing it, especially here in Charlottesville, is the coolest feeling in the world and something we’re extremely grateful for.”

Rhoback, the lifestyle activewear brand the couple launched with co-founder Kevin Hubbard, is known for its **high-performance apparel** that blends athletic function with a clean, lifestyle-inspired look. The brand has become recognizable for its emphasis on comfort, standout design and its logo, modeled after the Loftuses’ dog, Bunker.

What began as a **class project at the University of Virginia Darden School of Business** has grown into a 100-person company with over 3 million products sold online.

Now, the Loftuses are ready to move to a new, even higher level.

This weekend, Rhoback opened the doors on its **first brick-and-mortar retail store**, a 1,200 square-foot store in the Barracks Road Shopping Center that has been meticulously designed to showcase Rhoback’s product line and quality and distinct vibe in ways that might not convey as readily online.

“We want people to walk into the store and understand who we are as a brand – feel the energy, see the versatility and know that it’s for them,” Kristina said. “That’s hard to communicate digitally, so the store gives us a new way to bring Rhoback to life.”

## New Chapter: Why Charlottesville, Why Now

Rhoback has come a long way since Kristina and Bunker crisscrossed the East Coast in a pickup truck with a teardrop camper in tow, setting up at trunk shows and trade events. From teaching herself how to design clothing using Photoshop courses on Youtube to launching a full women’s line, Kristina was intentional about timing. The brand needed a complete catalogue, menswear and womenswear, before opening its first store.

![Kristina Loftus at the grand opening of Rhoback’s first brick-and-mortar store this weekend.](https://news.darden.virginia.edu/wp-content/uploads/2025/11/rhoback-10-scaled-e1763933139802-300x253.jpg)

“We didn’t want to launch as store until we could fully represent both sides of the brand,” Kristina said. “Now, with nearly half our customers being women, we’re finally at a place where our retail presence can reflect that.”

That same thoughtfulness extended to the physical retail experience. The store’s design reflects Rhoback’s signature energy: fun, active and quality-driven. The layout is intentionally designed to spotlight the full product range, especially the growing women’s collection.

Walking into Rhoback’s first retail store, the team hopes, should feel like stepping into the heart of the brand. From the fabrics to the playlists, every detail is designed to bring the digital brand to life in a way that isn’t as easily captured online.

“The first thing we want people to do is really get to know the product, feel the fabric, understand the intention behind each piece, and see how the products differ depending on how you live your life,” Matt explained. “Whether you’re running, golfing or heading to work, we want that versatility to come through.”

“There’s also an opportunity to cater to the senses in-store in a way that we just can’t online,” Kristina added. “We care deeply about music – it’s part of our social media, our ads, our brand voice, so we built a playlist of fun, soulful songs.”

Charlottesville, they both agree, was a natural choice for the store. Three years ago, the Rhoback team decided to try a warehouse sale in Charlottesville. They expected a couple dozen people. More than a thousand showed up. The overwhelming support turned into an annual tradition and planted the seed for something more.

While they considered other locations, launching in Charlottesville felt like a full-circle moment in the town where the Loftuses first honed their vision, with help from the UVA and Darden communities.

## UVA Community at the Core

From the start, the Loftuses credit Darden and Charlottesville as central to Rhoback’s story. What began as a class project quickly became a community-driven effort fueled by classmates, professors and friends who believed in their vision.

“We set out to create this brand and relied so heavily on our classmates, professors, mentors and alumni just to get connected with people in the field,” Matt said. “The Darden community was right there helping us figure it out.”

![Shoppers browse the racks during the grand opening on Saturday.](https://news.darden.virginia.edu/wp-content/uploads/2025/11/rhoback-14-2-300x225.jpg)

Classmates became early brand ambassadors, spreading the word in their own cities and workplaces. This support also extended to Rhoback’s first sales, with some of their first big orders coming from the Darden Racquet Club and the Darden Golf Club. “All of our friends became our biggest champions,” they shared. “They helped us get the brand off the ground.”

Several Darden professors played key roles in shaping Rhoback’s foundation, including Luann Lynch, who taught the Loftuses accounting and served as an early mentor.

“They were delightful students who worked very hard,” Lynch said. “Both were driven and insightful, and even then, you could see their entrepreneurial spirit. I was mostly a cheerleader, just thrilled to watch their growth as entrepreneurs.”

That entrepreneurial mindset, rooted in their Darden experience, continues to guide Rhoback today. Even as the brand grew, Charlottesville continued to anchor Rhoback’s identity.

“It all stems from Charlottesville,” Matt said. “We’re lucky enough to now be shipping orders around the world, but our roots are here. The coolest part has been seeing amazing talent move to Charlottesville to take a chance on working at Rhoback and growing the brand.”

Yet even with a strong foundation and community support, building a major brand presented its own challenges, from sourcing fabrics to being noticed in a crowded market.

## Early Challenges and Lessons Learned

Despite Rhoback’s success today, the Loftuses faced early challenges, starting with building a supply chain.

“We really didn’t know where to start, so we counted on connections we made, especially through the UVA and Darden network,” Matt said. “We went to every trade show we could, networking and trying to find vendors and manufacturers willing to take a chance on us.”

Their persistence paid off when they found trusted manufacturers in South Korea with standout fabrics and samples. Before signing an agreement, they flew across the world to meet the team in person, pitching the long-term vision of Rhoback.

“We loved the product, but more importantly, we wanted them to see how serious we were,” Matt said. “Most manufacturers get approached with demands to cut costs or increase quality, but we showed up with a partnership mentality.”

That partnership grew from a small initial order to a lasting relationship, with Rhoback now their largest client. “We’re lucky they took a chance on us,” Matt said. “They saw our passion and believed in what we were building.”

With production in place, the next challenge was getting people to notice.

Unlike many start-ups, the Loftuses chose not to raise outside funding, even for marketing. Instead, they relied on low-cost, grassroots strategies: guerrilla marketing at trunk shows and producing their own social media content. That scrappy, self-reliant approach became a hidden strength when the COVID-19 pandemic hit in 2020.

“Trunk shows stopped, and we had to really hunker down,” Kristina said. “Pausing trunk shows and shifting focus to digital marketing ended up being a blessing in disguise. We got really good at selling online and we’ve been focused on that ever since.”

Even with a clear brand vision, those early hurdles tested their persistence and helped the Loftuses develop the strategy and mindset that still differentiate Rhoback today.

## Finding a Gap in the Market

Before launching Rhoback, the Loftuses noticed that existing activewear and golf apparel didn’t resonate with their generation.

“We were creating content for different apparel brands but never found one that truly resonated with us,” Matt said. “Growing up, we all loved Nike, but so many activewear brands were following the same formula, chasing elite athletes and sticking to traditional sports marketing.”

As avid golfers, the Loftuses felt that the golf apparel space was outdated, targeting an older, exclusive audience through pro shops. Meanwhile, brands like Lululemon were innovating with modern fabrics and designs. After exploring their idea thoroughly in their Starting New Ventures course with Professor Saras Sarasvathy, they saw their opening.

![Rhoback stands out for its focus on top-quality, innovative fabrics and subtle yet distinctive designs (Photo courtesy of Rhoback).](https://news.darden.virginia.edu/wp-content/uploads/2025/11/RHOBACK_STORE_CHARLOTTESVILLE-00811-1024x683.jpg)

“There was such a huge opportunity in the middle of these worlds to build a lifestyle activewear brand that could speak to younger consumers, tap into the golf market and sell directly online with great fabrics and a modern feel,” Matt said.

Rhoback stands out in a notoriously challenging apparel market because of their relentless focus on top-quality, innovative fabrics and subtle yet distinctive designs that catch attention without overwhelming. Their dedication to craftsmanship shines through, especially with their signature polos.

“We wanted each product to be the best on the market, even if it took years to develop,” they said. “Our first product, the polo, took two years. We made the collar more structured and the fit slimmer, targeting 25- to 35-year-old men. It became our bestseller because of those details.”

With years of careful development behind each product, the Loftuses have gained insights that go beyond making great apparel. They’ve learned what it takes for an entrepreneur to turn an idea into a thriving business.

## Advice for Future Entrepreneurs

The Loftuses’ journey from a startup to a national performance brand proves that great ideas don’t require perfect experience, just creativity, focus and grit.

Kristina encourages aspiring founders to see their lack of experience as an advantage. “Not being from the industry can actually be your superpower,” she said. “You don’t see the barriers that might stop someone else. Stay laser-focused on your goal and tune out the noise.”

For current Darden students, Matt echoed Kristina’s sentiment and added simple advice: take the leap.

“If you’re considering starting something while you’re at Darden, do it,” he said. “You have more time and support than you think. We probably would’ve been voted least likely to make it with a T-shirt company, but you never know. Take the shot – it’s worth trying.”

November 24, 2025 This weekend, Rhoback opened the doors on its first brick-and-mortar retail store, a 1,200 square-foot store in the Barracks Road Shopping Center that has been meticulously designed to showcase Rhoback’s product line and quality and distinct vibe in ways that might not convey as readily online. –

From Dorm Room to Retail: How Rhoback's First Store Brings Their Digital Brand to Life

Founders often struggle to step away from work when their company's success depends on them. The idea of **work-life balance** sparks intense debate among entrepreneurs, who wonder if it's possible to scale a multimillion-dollar business while having enough downtime to recharge. Nicole Bernard Dawes, a two-time founder, strongly advocates for unplugging—but only for her employees.

"I think I probably am a little bit of a hypocrite, because I don’t unplug. I never do," Dawes tells Fortune. "I never want to be the person that’s holding up a member of our team."

The serial entrepreneur encourages her staff to completely disconnect from work after hours but doesn't allow herself the same freedom. With over two decades of experience, she has embraced the role of always being available. Dawes first founded **Late July**, an organic, non-GMO tortilla chip brand, in 2003. It's now sold in major retailers like Target, Whole Foods, Kroger, and Walmart. Campbell's acquired a majority stake in 2014 and bought the rest of the **$100 million company** in 2017. In 2018, she entered the consumer packaged goods (CPG) market again with **Nixie**, a zero-sugar, sustainably packaged soda line that raised $27 million in funding this year and is available in over 11,000 stores.

Despite facing economic downturns and sleepless nights, Dawes wasn't deterred from starting another venture. However, she doesn't want work to dominate her employees' lives. "I signed up for this. I am the entrepreneur, I did this to myself—a self-inflicted situation. [My employees] didn’t sign up to be entrepreneurs," Dawes says. "I am very comfortable taking downtime, but also making sure I’m available."

## Dawes says never unplugging is "my life"—and she grew up in it

While some leaders, like Google cofounder Sergey Brin, expect their teams to work long hours, Dawes doesn't impose that on her staff. "I think that where a lot of [leaders] differ, is extending that to their team. I feel very strongly that it should not extend to the team," she explains. "But I also feel like that is how I grew up. My father missed a lot of stuff because he felt like that was what you had to do. So I was determined I wasn’t gonna do that. I wanted to be present at things for my kids, and I wanted [it] to be okay for our team to be that way, too."

Dawes experienced the challenges of entrepreneurship firsthand while growing up in her parents' food businesses. She worked at her mother's health-food store and was around her late father's **$4.87 billion snack empire**, Cape Cod Chips. Seeing her parents struggle to step away from work prepared her for her own entrepreneurial journey. "When you decide to become an entrepreneur, there’s a lot of people [saying], 'It’s stressful, it’s lonely, it’s all these things.' And that’s true, but this is where I was really fortunate: I grew up in this business, so I entered eyes wide open," Dawes says. "That’s why it’s really important to be passionate about your mission, passionate about your products. Because you do have to sacrifice a lot on the other side."

## Dawes still makes time for the important things

Although Dawes finds it hard to disconnect completely, she prioritizes activities that keep her balanced. "You have to choose what’s the most important thing in that moment. I don’t think as an entrepreneur—at least for me—I’ve never really, truly, been able to shut off completely," she admits. "But I also make time to have family dinner almost every night. There were things that were priorities to me, and I still make them priorities, like going out for a walk every day or exercising."

The entrepreneur enjoys going to the beach, reading, cooking, and even considers grocery shopping a hobby. She loves observing new products and seeing customers choose her brands, Late July and Nixie, which she finds deeply gratifying. Despite the challenges, her passion makes the work feel rewarding. "Sometimes when I wake up in the morning like, 'I can’t even believe I’m this lucky that I get to do this job,'" Dawes says. "And because I feel that way, it doesn’t feel like working. I’m getting to do something fun all the time."

Nicole Bernard Dawes, founder of Nixie and $100 million snack brand Late July, says her lack of work-life balance is a “self-inflicted situation,” but wants her staffers to totally unplug off the clock.

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