building america`s most entrepreneurial city - Digital Sandbox

building america`s most entrepreneurial city - Digital Sandbox

BUILDING AMERICA’S MOST
ENTREPRENEURIAL CITY:
2015 REPORT
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A REPORT FROM DIGITAL SANDBOX KC
BUILDING AMERICA’S MOST ENTREPRENEURIAL CITY
BRINGING INNOVATION
TO LIFE
The numbers tell part of the story:
55 proof-of-concept
27 new businesses created,
$22.7 million in follow-on funding and 247 total new
ideas funded since 2013,
jobs created. Digital Sandbox KC is making a difference for
early-stage startups—and doing its part to help make
Kansas City America’s most entrepreneurial city.
The entrepreneurs tell the rest of the
story. With Sandbox support, Happy Food
Co. will connect its ordering process with
distribution partners, Edge Up Sports
will build a rich feature set that will help
its customers with their fantasy football
leagues, Cancer Survivorship Training
will provide practical education ​tools
to help health care providers improve
care for cancer survivors, TapTeach will
develop in-classroom, student-specific
education applications for K-12 students.
And the innovations continue.
From wearable technology that improves
sports performance to mobile apps that
help prevent migraines, from smart
homes to smart scheduling, more than
300 early-stage entrepreneurs and
potentially high-growth startups are
tapping support, advice and connections
from the Sandbox to move from concept
to commercialization.
Established in 2013, Digital Sandbox KC
is a proof-of-concept center that provides
the needed technology infrastructure to
take advantage of the region’s strengths.
Sandbox offers a central hub for large
businesses, emerging enterprises and
entrepreneurs to evaluate and develop
new products and services.
The Sandbox is an innovative approach
that connects Kansas City’s corporate
community to the area’s entrepreneurs
and early-stage companies. Developed
with support from an unprecedented
two i6 Challenge Grants from the U.S.
Commerce Department’s Economic
Development Agency, Digital Sandbox KC
includes players from academia, large
corporations, entrepreneurs, business
development organizations and economic
developers. The program’s mission is
to accelerate the commercialization of
new ideas and promote business and job
growth in the region.
By financing small proof-of-concept
projects, typically around $20,000,
coupled with ongoing support from
local corporations and other partners,
Digital Sandbox KC helps accelerate
the commercialization of new ideas
and promote business and job growth
throughout the region.
RESULTS
55
PROOF-OF-CONCEPT
PROJECTS FUNDED
FOR AREA STARTUPS
SALES
$10.7 MILLION
IN TOTAL SALES
Digital Sandbox KC helps move ideas from concept to commercialization.
Typically, the pipeline for submissions is 16 to 20 per month with an average
project receiving $20,000 in support. Working with more than 300 early-stage
concepts to date, this effort has resulted in:
TWENTYSEVEN
NEW KC-BASED COMPANIES CREATED
JOBS
247
TOTAL JOBS CREATED
17
COMPANIES
FOUNDED OR
CO-FOUNDED
BY WOMEN –
TECHNOLOGY
ENTREPRENEURS
MILLION
IN TOTAL
FOLLOW-ON FUNDING
PAT E N T S
EXITS
30
3
PATENT APPLICATIONS
SUCCESSFUL EXITS
5
(SOLD/MERGED FOR MONEY)
$7.3 MILLION
IN TOTAL PAYROLL
FOR THOSE JOBS
$22.7
PATENTS AWARDED
TOP INDUSTRIES
HEALTH CARE IT EDUCATION LOCATION-BASED SERVICES WORKFORCE MANAGEMENT
WEARABLE TECHNOLOGY CONSUMER MARKETING LOGISTICS
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A REPORT FROM DIGITAL SANDBOX KC
BUILDING AMERICA’S MOST ENTREPRENEURIAL CITY
Collaborating to Build America’s Most Entrepreneurial City
The mission of the UMKC Entrepreneurship Scholars program is to accelerate the formation of scalable,
sustainable ventures and create jobs. Now, our E-Scholars entrepreneurs will get the full benefit of a
partnership with Digital Sandbox KC and the combined resources both programs can deliver.
— Jeff Hornsby, Regnier Institute director and Henry W. Bloch/Missouri Endowed Chair in Entrepreneurship
DIGITAL SANDBOX KC WINS
AN UNPRECEDENTED SECOND
i6 CHALLENGE GRANT
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NEW KC-BASED
COMPANIES CREATED
247
$22.7
TOTAL JOBS CREATED
MILLION IN NEW,
ADD-ON INVESTMENT RAISED
FOR KC STARTUPS
from the Department of Commerce
Economic Development Administration.
The three-year, $500,000 grant is
matched by the Kauffman Foundation,
Missouri Technology Corporation and
the UMKC Henry W. Bloch School of
Management for a total of $1,150,000.
Additional corporate support provides key
resources and connections for the young
companies in the Sandbox.
As “America’s Innovation Agency,” the
Department of Commerce prioritizes its
support of startups, entrepreneurship and
business incubators through intellectual
property protection, collection and
dissemination of data that helps build
businesses and investments in local
economic development.
A PARTNERSHIP WITH THE
CITY OF OLATHE DRIVES LOCAL
ENTREPRENEURSHIP. The Sandbox’s
partnership with the City of Olathe will
focus on continuing the city’s efforts
to drive entrepreneurship and new
business starts. The first company
in Olathe to receive Digital Sandbox
KC program support is PerfectCube,
founded by Mark Calhoun and Jim
Starcev.
Tin Man Prints, one of the startups showcased
at Crowdfunding Live, creates custom aluminum
prints.
CROWDFUNDING LIVE: KC INNOVATION
SHOWCASE OFFERED NINE KC
STARTUPS with active crowdfunding
campaigns an opportunity to meet
the community and gain followers
and funders. Hosted by Hallmark, the
showcase was sponsored by Digital
Sandbox KC, the Greater Kansas
City Chamber of Commerce and
KCSourceLink, along with corporate
partners UMB; DST Systems; Garmin;
JE Dunn Construction; Ewing Marion
Kauffman Foundation; Lathrop & Gage;
Shook, Hardy & Bacon; Kansas City
Chiefs and University of Phoenix.
IN A PRIVATE ROUNDTABLE WITH
SECRETARY OF COMMERCE PENNY
PRITZKER, 10 Sandbox entrepreneurs
shared how the Sandbox has
advanced their companies and how
the Department of Commerce can
work alongside new businesses to
shape the next great era of American
entrepreneurship and innovation.
Digital Sandbox KC is a perfect
example of how the U.S.
Department of Commerce is
supporting entrepreneurial
ecosystems around the
country through public-private
partnerships.
The Sandbox has done a
phenomenal job helping
early-stage entrepreneurs
move from concept to business
start. We know that we have
many creative entrepreneurs
in Olathe who can use the
Sandbox to turn their idea into
a growing Olathe business that
creates new jobs in our city.
THREE STARTUPS ARE FUNDED
THROUGH A PARTNERSHIP WITH
UMKC BLOCH SCHOOL E-SCHOLARS:
Mag-Vest, the first magnetic tool vest;
Mobility Designed, whose first product
brings much needed innovative design
to crutches; and Smart Steps Mobile, an
app designed for teens and adults with
cognitive disabilities such as autism or
Down syndrome. The partnership gives
E-Scholars participants a direct route to
resources of the Sandbox.
—Michael Wilkes
Olathe City Manager
— Secretary of Commerce
Penny Pritzker
THE SANDBOX HOSTS ITS THIRD SUMMER IN THE SAND SERIES with an impressive
lineup of topics and experts to prompt discussion around some of the hottest topics for
entrepreneurs today, including how to access capital in KC, how to make an effective
pitch to the Sandbox or angel investors and how startups can attract and acquire their
first customers.
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A REPORT FROM DIGITAL SANDBOX KC
BUILDING AMERICA’S MOST ENTREPRENEURIAL CITY
Fueling the Future of Kansas City
I have every confidence that what is coming out of Digital Sandbox KC
will play a big part in the future of Kansas City.
– Donald Hall Jr., President and CEO of Hallmark Cards
PlanetReuse Brings Global Reuse Platform to
Burns & McDonnell
Digital Sandbox is a necessary pipeline to help
find the next Marion Labs, H&R Block or Cerner,
just a few of the homegrown companies that
continue to make this city great.
– Kansas City Mayor Sly James
t its core, Digital Sandbox KC provides
innovators with proof-of-concept
resources to support early-stage
commercialization. After startups
receive support, the Sandbox continues
to provide access to experts, mentors,
potential customers and follow-on
funding resources. We’re helping to
build the next generation of great
Kansas City companies.
Here are just a few companies that
have grown up and gone far because
of the initial help they received from
Digital Sandbox KC.
PatientsVoices Receives Key Funding to
Improve Patient Care
PatientsVoices™ uses a proprietary
interview technique and software to
convert patient feedback into health care
data that hospitals can use to improve
patient satisfaction—and increase
Medicare reimbursement.
But when faced with its own funding
issues, PatientsVoices’ founder Mary
Kay O’Connor turned to the Sandbox
for feedback. With help from director
Jeff Shackelford, O’Connor refined her
pitch, made strategic connections with
technical experts and grant-writing
counselors and landed a $150,000 grant
from the National Science Foundation
and a $100,000 credit from Google for
business services.
“The introductions and support from
Digital Sandbox KC have been key
building blocks in PatientsVoices’
success and important stepping stones
in my education as an entrepreneur,”
says O’Connor.
Why would one of the largest
engineering consulting firms in the
world snap up a small, Kansas City
startup? To gain technology, innovation
and talent.
In January 2015, Burns & McDonnell,
a 5,000+ employee-owned firm,
recruited Nathan Benjamin and Brian
Alferman. They were the innovators
behind PlanetReuse, a first-round
Sandbox company started by Benjamin
in 2008. PlanetReuse developed a
platform for reclaimed building material
coordination, brokering and consulting
services throughout North America.
That platform is now part of the broad
range of services offered by the
Burns & McDonnell Global Facilities
(GFS) practice.
“As environmental consciousness
continues its path towards the
mainstream, Burns & McDonnell
continues bringing inventive solutions
to its customers,” said Greg Graves,
chairman and CEO of Burns &
McDonnell. “We see an immediate
opportunity to impact the planet and our
clients’ bottom line within commercial
architecture, manufacturing and retail.”
Creelio Leverages the Sandbox for
Follow-On Funding
Social media has created opportunities
for companies to connect to customers
and key stakeholders like never before.
Often, however, tweets and posts can
seem “planted” or robotic. Julie Edge
and Steve Stava, founders of Creelio, saw
an opportunity to help make companies
sound more human online.
Digital Sandbox KC gave Creelio the
ability to quickly extend their storytelling
platform. Additional networking and
media exposure helped propel Creelio
forward. It raised $300,000 from an angel
investor and was awarded $50,000 in
Kansas tax credits after completing the
SparkLabKC accelerator program.
“With this money and vote of confidence
we’ve hired seven people including a
chief technology officer, which is vital to
our business,” says Edge.
LittleHoots
Goes Viral
Lacey Ellis, founder of LittleHoots,
wanted a way to capture all the little
funny things her son said. In 2014,
she and her team created LittleHoots,
a mobile app that helps parents keep
track and share the witty nuggets
of childhood.
The Sandbox supported initial proof-ofconcept mobile applications that were
later used to secure follow-on funding.
Today, the LittleHoots app has been
downloaded more than 41,000 times.
In addition, Ellis has partnered with
the Huffington Post and the Today Show,
which feature LittleHoots’ engaging
content on an ongoing basis.
“With limited resources we had to get
tremendously creative to generate
big-time awareness,” says Ellis. A
story about one of the app’s users —
Ms. Greta, age 4 — went viral earlier
this year. Her hilarious memory tiles
were #7 on Reddit and featured by
the Huffington Post, George Takei,
Zooey Dechanel’s blog and PopSugar
Moms. “This was the awareness
boost we needed.”
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A REPORT FROM DIGITAL SANDBOX KC
BUILDING AMERICA’S MOST ENTREPRENEURIAL CITY
Digital Sandbox Companies
ACRE DESIGNS LLC builds homes for the
next generation that fully embrace new
technologies, processes and materials.
Support from Digital Sandbox KC is enabling
Acre Designs to finalize development and
validate the performance of its PGX system.
AWARE3 helps churches launch and
manage a branded mobile app to make it
easy for their congregations to connect and
engage. The Sandbox provided support for
the development of back-end integration,
matched the company with mentors,
included them in the Sprint Mentoring
program and helped solidify a working
partnership with VML, one of the world’s
largest digital marketing agencies.
BIGBANG is a backend as a service
(BaaS) platform for developing real-time
applications for mobile devices, desktops
and the web. Proof-of-concept support
from Digital Sandbox KC helped expand
the number of programming languages
supported by the API and provide technical
documentation.
BRIEFCASE (Cobrapps) aggregates
and simplifies job search for college
students. Support from Digital Sandbox KC
helped Briefcase continue to fully develop
their initial product version and release a
closed beta trial with local colleges and
universities. Additionally, the Sandbox has
introduced Briefcase to corporate partners
for potential beta testing of their platform.
CANCER SURVIVORSHIP TRAINING is an
e-learning company that delivers continuing
education courses for health care
professionals. The courses are designed to
increase knowledge and cancer survivorship
care, thereby improving the lives and
well-being of cancer survivors. CLAIMJOCKEY files and manages longterm care insurance claims for families and
care providers, helping them access funds
for needed care. With the help of Digital
Sandbox KC, ClaimJockey is building a new
website that can be linked to their HIPAAcompliant database.
CREELIO’S technology platform and mobile
application​help executives grow their
online thought leadership position, build
their company brand, increase web traffic
and attract raving fans. Digital Sandbox KC
support c​ ontributed to the development
of their web interface and data analytics
components for the platform.
DEWSLY MEDIA is a safe and secure online
community that brings together schools,
teachers, parents and students—all in one
place—to stay up-to-date on important
school, classroom and activity updates. The
proof-of-concept project is helping Dewsly
with the development of a smartphone
app. Dewsly has secured significant equity
investment.
DIVVYHQ is a cloud-based, content planning
and production workflow tool built to help
marketers and content producers get/stay
organized. With the lead IT support provided
by Digital Sandbox KC, DivvyHQ increased
their product development cycle and secure
a significant round of equity investment.
Digital Sandbox Companies
EB SYSTEMS (formerly e-Beacons) uses
mobile applications, Bluetooth beacon
devices and a cloud data platform to help
make companies more efficient through
improved workflows and employee worksite
accountability. The Sandbox supported code
framework and end-user design.
FLYOVER INNOVATIONS is a hardware
startup company focusing on easy-to-use
smart A/V and A/V accessory products. The
first product, Blumoo™, provides users
seamless control of the audio and visual
equipment already installed in their home.
Digital Sandbox KC worked with Flyover to
develop a prototype on the iOS and Android
mobile platforms.
HANDPRINT developed a platform that
makes 3D printing easy and convenient.
Support from Digital Sandbox KC resulted
in the establishment of the company
and helped finish its beta version of the
software.
E.D. DENTAL, dba The Dentist Is IN,
provides 24/7 dental consultation in
emergency rooms, urgent care centers and
wellness programs through telemedicine.
Digital Sandbox KC support gets them to
market faster.
FOLIOMATCH developed a platform that
organizes and keeps track of education
achievements to receive the best
scholarships, internships and career
opportunities on the market. The Sandbox
supported front-end web development for
FolioMatch’s online platform. Completing
this project allowed FolioMatch to launch
and test its beta.
HAPPY FOOD CO delivers an Eat Well
solution for people who want homecooked meals but don’t have time. The
“meal kits” include ingredients supplied
by premium providers that are delivered
daily to designated distribution partners
equipped and monitored by Happy Food Co
technology.
EDGE UP SPORTS is a platform for people
who play fantasy football and want a more
robust research tool. It gives participants
data on NFL players’ behavior and insights
from multiple data sources along with
traditional fantasy information. Digital
Sandbox KC support developed a richer
feature set.
GENNEO gives people the tools to convert
their own natural movement into battery
charge for phones and other electronic
devices. Digital Sandbox KC supported a
beta test build of up to 50 model G3000
units for field testing as a final step before
launching Genneo-branded products.
FANADDICT created an event listing service
that easily tracked live music events. Digital
Sandbox KC resources helped to develop the
app and test feed features.
HACUMEN helps cyber security consultants
collaborate on IT security audits and create
detailed reports. Support from Digital
Sandbox KC enables them to develop a
prototype and provide access into the KC
business ecosystem.
HEARTTOHEART™ NETWORK’S patentpending care management platform
reduces costs, improves care and optimizes
outcomes by enabling remote management
of patients. Digital Sandbox KC support
helped bring a diabetes management
system to Children’s Mercy Hospital.
INNOVATIVE HEALTH MEDIA offers
products designed to help hospitals
and physician offices provide excellent
patient care and generate a profitable
business. Digital Sandbox KC is working
with Innovative Health Media to improve
its eAWV product to add additional
features, ensure compliance for Medicare
2016 guidelines and improve back office
functionality.
KNODA created a social platform where
predictions were made, voted on and results
were crowdsourced by the community.
Digital Sandbox KC assisted in market
validation and intellectual property search
including development of an iOS application.
LABORCHART is a resource management
and scheduling application for the
construction industry, replacing the
traditional whiteboard and primitive
spreadsheet with an automated process.
Support from Digital Sandbox KC enables
LaborChart to enhance the product, helping
contractors save time, simplify workflow
processes and ensure that manpower hours
are maximized.
LENDINGSTANDARD automates the debt
financing of commercial real-estate with
a focus on multi-family properties. Digital
Sandbox KC helped LendingStandard
develop the processing and checklistoriented functions of their web application.
LIGHTBRIDGE is focused on delivering
distributed data storage to its clients,
ranging from small business to enterprise
level engagements. Digital Sandbox
KC worked with LightBridge to develop
customer integration features and advise on
intellectual property protection. Lightbridge
recently closed on a significant Series A
funding round.
LIMELIGHT provided the visibility to secure
the safety of meat production across the
food supply chain, from rancher to
retailer. Digital Sandbox KC conducted a
market research project to validate market
conditions, determine end-user feature
needs and determine market position.
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A REPORT FROM DIGITAL SANDBOX KC
10 BUILDING AMERICA’S MOST ENTREPRENEURIAL CITY
Digital Sandbox Companies
LITTLEHOOTS is a mobile application
designed to help busy parents capture and
share all the fabulous things their kids say
and do. Digital Sandbox KC funded prototype
development, testing and functionality
refinement. LOCAL RUCKUS created a local event
platform. Digital Sandbox KC assisted with
development of core technology. Local
Ruckus secured a substantial contract with
Sprint, a Sandbox partner.
MAG-VEST is the first magnetic tool vest
that lets people carry their tools from any
working position, unlike other solutions that
have limited compartments or simply get in
the way in tight spaces. Digital Sandbox KC
support will help them develop their website
and be ready for orders.
MAPPER (Angling Technology) is a
convenient service platform for rapidly
creating interactive maps. Digital Sandbox
KC resources were used to develop go-to
market capabilities including new mapping
features and enterprise map sales and
management.
MIZOCALO, a project of Bluejacket
Technology, took the next steps in
developing its product for the U.S. Hispanic
market with the help of Digital Sandbox KC.
MOBILITY + DESIGNED creates devices
to improve quality of life for those with
mobility challenges. Their first product, the
M+D™ Crutch, solves the problem of pain
and potential damage to armpits, hands
and wrists caused by the use of standard
crutches. Digital Sandbox KC support is for
prototype design.
MOTAVERA enables businesses to find
and hire college students for internships
and entry-level employment. Support from
Digital Sandbox KC will further design and
develop the existing minimum viable product
of the platform.
MY SUPER DISPATCH is an app and web
platform that helps trucking companies
reduce paperwork, more efficiently invoice
and process customer payments more
quickly. Digital Sandbox KC support helps
them to get to market faster.
PASSEL is a free,
web and mobile app that
enables moms to easily manage multiple
mobile calendars. Support from Digital
Sandbox KC is being used to complete the
development of Passel’s minimum viable
product that includes both iOS and Android
operating systems.
PATIENTSVOICES™ quickly identifies the
problems that patients repeatedly mention
to help hospitals improve their patient
satisfaction scores. Digital Sandbox KC
support is used to create HIPPA-secure
analysis and reporting tools that summarize
patient feedback.
Digital Sandbox Companies
PERFECTCUBE provides business analytics
tools – typically available only to large
retailers – for small retail business owners.
The tools help business owners make more
informed decisions by collecting POS and
other relevant information. The Sandbox
support allows them to add additional
functionality.
PHISIONARY is developing Union Portal,
a web and mobile application that allows
union members to access their fringe
benefits information and provides an avenue
for contractors to securely pay their union
contributions online. Digital Sandbox KC
support enabled the company to develop a
beta version of the company’s online app.
RFP365 provides software to facilitate the
entire RFP process. Their Sandbox project
upgraded the core infrastructure and
supports future integrations with external
applications.
ROYAL LOYAL’S mobile app promotes store
products for gas and convenience stores.
Digital Sandbox KC support is assisting the
company with building a more streamlined
user experience for both store owners and
store customers.
SHOTTRACKER (Data Driven Sports) is an
interplay of hardware and software that
tracks competitive athletes’ (of all ages)
performance, motivates them to work
harder and generates data that positively
impacts their game.
PLANETREUSE Marketplace developed a
platform for reclaimed building material
coordination, brokering and consulting
services throughout North America. That
platform is now part of the broad range of
services offered by the Burns & McDonnell
Global Facilities (GFS) practice.
PLAY-IT HEALTH makes taking medications
and following medical regimes easier, and
even fun, with the most comprehensive,
innovative, and responsive adherence system
to date. Digital Sandbox KC helped develop
and customize the Pearl a Day educational
components of the Play-it Health platform.
SMART STEPS mobile is a decisionmaking app designed for teens and adults
with cognitive disabilities, such as autism
or Down syndrome, helping users solve
everyday problems. Digital Sandbox KC’s
support helped create a portal for usercreated decision trees. THE SWAPPING COMPANY is an
e-commerce platform for the resale fashion
community to help move inventory on
multiple social media and e-commerce
marketplaces. Digital Sandbox KC supports
the development of the web platform and
mobile app. TAPTEACH is an educational engagement
platform designed to connect classrooms
to mobile devices leveraging an on-demand
experience driven by Bluetooth beacons.
Support from Digital Sandbox KC allowed
them to build out important platform
elements.
TERACRUNCH’S custom behavioral
analytical tools transform raw data into
fact-based actionable insights for business
challenges faced in operations and
marketing. Digital Sandbox KC resources
were used to help establish the company’s
corporate structure.
WELLTODO is developing a workforce of
digital therapeutics for chronic disease
sufferers. Proof-of-concept support
from the Digital Sandbox KC assisted in
implementation of a pilot study for their first
mobile app, Migraine Coach.
XLRYNT TECHNOLOGIES develops
proprietary programmable computer
hardware products, capable of bringing
terabit speed solutions to Big Data. One
benefit of support from Digital Sandbox KC
has been the production of a more robust
current edition, built with the latest version
of the emerging set of network cards
coming onto the market.
TRACKTI was developed to eliminate the
scheduling chaos associated with selling
a home. Digital Sandbox KC worked with
TrackTi on development of their mobile
application. TrackTi secured a strategic
partnership with one of the nation’s largest
residential home-show scheduling services.
TRELLIE’S first product, a wireless device
disguised as a women’s fashion accessory,
aims to help keep women better connected.
Digital Sandbox KC worked with Trellie
on critical design engineering work that
enabled the company to complete its initial
prototype and finalize its first product
for consumer release. Trellie has closed
a significant Series Seed B round of
investment.
VENTURE 360 has developed a technology
platform to assist private equity investors in
evaluating, closing and tracking investments
in order to facilitate a private market for
trading these securities. Digital Sandbox KC
resources were used to help build the
“entrepreneur facing” element of the
Venture 360 platform. With this element
added, Venture 360 released its beta version.
YOUR ADOPTION COACH provides adoption
agencies and professionals with resources
to address the high cost of adoption. Digital
Sandbox KC assistance helped the company
add new services to the current system and
build a new gift registry feature.
ZORILLA RESEARCH uses computational
technology to predict problem interactions
of a drug in the early stages of development,
enabling the developing company to
repurpose failed compounds earlier. With
project support from Digital Sandbox
KC, Zorilla will move its SABLE software
to a high-powered, cloud environment
and develop a user-friendly interface for
interaction with clients.
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A unique partnership working together to build
America’s most entrepreneurial city
OLATHE
K A N S A S