Pilot Program Has Resulted in 18 Startups Actively Pursuing Partnerships with Five Leading Illinois Corporations

CHICAGO - Governor Pat Quinn today was joined by CEOs from some of Illinois' top companies and rising startups to announce the successful results of the inaugural "Corporate-Startup Challenge" program. The pilot program, conceived by the Illinois Innovation Council and managed by the Illinois Science & Technology Coalition (ISTC), has resulted in 18 startups actively pursuing partnerships with leading Illinois corporations. The partnerships vary by company, but include investments, contracts and mentorships. These partnerships with leading corporations are critical to the long-term success of the startups. The initiative is part of Governor Quinn's agenda to drive innovation and create jobs throughout Illinois.

"This innovative challenge is helping solve an important piece of the entrepreneurship puzzle - connecting startups with often inaccessible large corporations," Governor Quinn said. "This gives the startups important experience and business, while helping these large corporations continue to innovate and stay competitive in the global marketplace. This will create jobs and drive innovation throughout Illinois."

Participating corporations Allstate, John Deere, Molex Inc., Motorola Mobility and Walgreens first identified areas for potential collaboration. Then, they examined startups that had been referred through a network of more than 30 universities, incubators, accelerators, associations and not-for-profits. Connections were created between the corporations and promising entrepreneurs during "Demo Day" events.

On the heels of this successful pilot program that was launched last summer, Governor Quinn announced the kickoff of the second round of the Challenge with corporations ADM, Exelon Corporation and Hyatt Corporation.

"Illinois corporations are relying more than ever on technology and innovation to stay relevant and globally competitive," Illinois Innovation Council Chairman Brad Keywell said. "Connecting corporate leaders with innovative entrepreneurs helps those leaders address their own challenges, and opens the door for these emerging companies to gain feedback and expand their businesses."

More than 200 startups were referred to the program, and 62 of them were matched to at least one corporation. Of the 45 that were selected to present at one or more of the Demo Day events, 50 percent received engagement beyond the Demo Day and 18 remain in some form of ongoing partnership, including startups Servabo and SimpleRelevance with Allstate, Ploughman Analytics with John Deere and SiNode Systems with Motorola Mobility.

"A start-up like SiNode Systems can learn and grow from an introductory pitch to a corporation, but the Corporate-Startup challenge provided us with a much more meaningful gateway," SiNode Systems co-founder and CEO Samir Mayekar said. "Thanks to our participation in this effort, SiNode has had the opportunity to learn directly from Motorola Mobility's top battery engineers and we have now established key relationships to help us build value and create more high technology jobs in Illinois."

"As part of our global product development efforts and interest in supporting Illinois economic growth, Molex was a natural fit for the inaugural Corporate-Startup Challenge program," Molex Inc. Vice President of Marketing and Communications Brian Krause said. "The program team did an outstanding job at the front end, understanding our technology requirements and innovation direction and marrying those with entrepreneurs and startup companies - including those from the state's research universities - who were looking for a compatible growth strategy. We are very optimistic that the partnerships developed will prove valuable to Molex and the startup organizations."

"Illinois' differentiator is our diverse corporate community, which plays a central role in driving and supporting innovation, especially as customers to emerging Illinois businesses," ISTC President and CEO Mark Harris said. "The Corporate-Startup Challenge demonstrated the mutual value of better connecting the state's entrepreneurial community with these corporations and we look forward to continue growing the program with even greater participation and engagement."

Corporations and startups interested in learning more about the Corporate-Startup Challenge should visit IllinoisInnovation.com.

About the Illinois Innovation Council

The Illinois Innovation Council (IIC) is a diverse group of leaders convened by Governor Quinn to promote engagement, innovation and economic development. Its mission is to identify and advance strategies that foster and accelerate the innovation and economic growth that will create the jobs of today and tomorrow. For more information, visit illinoisinnovation.com/illinois-innovation-council.

About the Illinois Science & Technology Coalition

The ISTC is a member-driven, non-profit organization that harnesses the power of research and innovation to grow the state's economy. Created by the state of Illinois more than 20 years ago and with the support of the Illinois Department of Commerce and Economic Opportunity, the ISTC drives public-private partnerships between industry, research universities, federal labs and government to increase research and technology-based investment, talent, awareness and job growth in Illinois. For more information, visit istcoalition.org/.

You have insurance on your home, your car, your health.

How about your retirement plan?

"People have homeowners insurance to protect against fires and floods," notes independent financial planner Stephen Ng, founder and president of Stephen Ng Financial Group, (www.stephenngfg.com). "They buy insurance to replace their car if it gets wrecked and they buy health insurance to protect themselves from medical costs.

"But for many people, their biggest material asset is their retirement portfolio. When I look at a new client's portfolio and ask, 'Where's your insurance?' they look at me like I'm crazy!"

Insure your retirement fund by taking steps to safeguard at least a portion of it, Ng says. As you get closer to retiring, the amount you safeguard will be what you need to rely on for your retirement income.

"Your retirement income should be derived from guaranteed sources, such as Social Security benefits and your pension plan," says Ng, a licensed 3(21) fiduciary advisor, certified to advise companies about their 401(k) and other retirement plans. "It's the amount you need to pay the bills and do the other things you hope to do in retirement, so your retirement income needs to be a guaranteed source of income.

"Then you look for your 'play checks.' That's the money you don't absolutely have to have, so you can still try to grow it, and take risks with it, in the market."

Ng offers these tips for insuring your retirement plan:

•  Invest a portion of your portfolio in annuities.
Annuities are long-term investment options through insurance companies that guarantee you payments over a certain rate of time, which could be the rest of your life or the life of your spouse or other survivor. Note: The guarantee is subject to the financial strength and claims-paying ability of the issuing insurance company.

•  If you leave your job, quickly roll your employer-sponsored 401(k) into an IRA.
While 401(k)s are a great tool for saving, particularly if your employer is providing matching funds, if you were to die, the taxes your survivors would pay on your 401(k) would be much higher than on an IRA. That's because they would have to inherit the money in a lump sum - that could easily take 35 percent right off the top. The lump-sum rule does not apply to IRAs. While your spouse would have the option to inherit your 401(k) as an IRA, your children would not. So, take advantage of your employer-sponsored 401(k), but if you leave the company, convert to an IRA or ROTH IRA. You can also begin transferring your 401(k) funds to an IRA at age 59½.

•  Consider converting your IRA to a ROTH IRA.
For protection from future income tax rate increases, you should consider slowly converting your tax-deferred IRA funds into a ROTH IRA. Yes, you'll have to pay the taxes now on the money you transfer, but that will guarantee that withdrawals in your retirement are not taxed - even as the money grows. If you plan to leave at least part of your IRA to your children, they'll benefit from a fund that continues to grow tax-free.

About Stephen Ng

Stephen Ng is the founder and president of Stephen Ng Financial Group™ (www.stephenngfg.com). Since 1992, he has helped pre-retirees and retirees preserve and increase their wealth by, in part, helping them avoid common mistakes. He regularly holds financial management, retirement investing and insurance planning seminars at businesses, churches and non-profit organizations. Ng is a Chartered Life Underwriter, Chartered Financial Consultant and a Certified Estate Planner. He is also an Investment Advisor Representative with SagePoint Financial, Inc., member FINRA/SIPC.  He brings a national and international perspective to his financial advice, with professional and educational roots in Australia and Asia, and certifications in 19 states.

Labor, faith, and community activists are rallying at Outback Steakhouse restaurants in Davenport, Cedar Rapids, Clive, and Sioux City on Wednesday June 18 at 6:00pm to protest the latest case in what experts are calling a growing epidemic of "wage theft" - when workers are not paid some or all the wages they are legally owed for their labor. Last fall, Kossiwa Agbenowassi worked hard seven days per week cleaning an Outback Steakhouse in Coralville to support her young children - but the restaurant's cleaning contractor has refused to pay her for 49 days of her work, totaling more than $2,300 in wages she is legally owed.

Kossiwa was hired by Sandpiper Maintenance and Repair, which held cleaning contracts with at least two Outback Steakhouses in Iowa. Sandpiper is not licensed in the state of Iowa, has no legitimate business address, and has refused to return Kossiwa's calls. This spring, alone and unsure how to proceed, Kossiwa approached the Center for Worker Justice of Eastern Iowa (CWJ), an Iowa City-based group that helps low-wage workers understand and defend their civil and workplace rights. With CWJ's help, Kossiwa has filed complaints with state and federal agencies, and has enlisted the help of faith and labor activists who have also contacted the Outback and its contractor. A few weeks ago, Representative Art Staed called for an investigation into this case by the Iowa Attorney General, Iowa Workforce Development, and the U.S. Department of Labor. In response to growing community concern, the Outback has ended its use of this cleaning contractor...but Kossiwa has still not been paid. CWJ Director Misty Rebik says that while she welcomes the Outback's decision to end its contract with Sandpiper, it's not enough. "The Outback hired this contractor, and benefited from Kossiwa hard labor. She needs to be paid immediately, and the Outback has a responsibility to make sure that happens."

Wage theft is reaching epidemic proportions in low-wage workplaces, according to a 2012 report by the Iowa Policy Project, which estimates that low wage Iowa workers miss out on an estimated $600 million in wages each year. The Iowa legislature considered a bill this spring that would have strengthened penalties against employers who don't pay their workers; it passed the Senate, but the House failed to take action. The Center for Worker Justice of Eastern Iowa is sponsoring Wednesday's actions, with solidarity from labor federations in the Quad Cities, Des Moines, Cedar Rapids, Iowa City, and Sioux City.