PhillyInc

A tale of doing business in Philadelphia: All she wanted to do, says Rose Parotta, owner of the Happy Rooster at 16th and Sansom, was play by the rules; get her chef a new food-safety certificate from the city. But you apparently can't get there from here. We retraced her steps. You dial 215-685-7495 for the Office of Environmental Health Services of the Department of Public Health. You press Option #4 for "inspections and other services." You're directed to press Option #1 for info on food-safety certification. And what do you get? A voice of doom that says, "1 is not a valid option." Please hang up and call again. And again. And again.

-- Rick Nichols

NP Solutions: One of the largest potential markets in the world of biotechnology is treating lower back pain, since many people begin to suffer some form of degenerative disc disease in their late 20s, and the vast majority of sufferers are not disabled severely enough for highly invasive and risky treatments, such as spinal fusion. But the spokesperson for the NP Solutions Team -- Neil Malhotra, a neurology resident at the University of Pennsylvania Medical School -- developed a much less invasive form of treatment, which involves a tiny injection of a hydrogel treatment into the affected disc. "Lower back pain is responsible for 15 million physicians' visits a year," Malhotra told the judges, in sizing up the large potential market for their innovation, which is slated to begin testing in animals.

Bootstrapper has taken a stab at picking 100 daily "must read" sites for entrepreneurs. Uh, one hundred per day? Not really. It's actually a useful categorization and description that enables you to pick the right ones. Here it is.

- Thomas Ginsberg

Parkway Corp. Chief Executive Joseph Zuritsky, whose father Herman founded the company in 1936 and whose son Robert is president, has watched his nearly 40-year interest in koi fish morph from fascination to hobby to a side business called Quality Koi Co.

Quality Koi is based on a 43-acre converted asparagus farm in Carneys Point, N.J. It has 28 ponds measuring 50 feet by 150 feet, and four larger ponds between a quarter of an acre and 1 acre each. Zuritsky, 67, said he speaks on the phone with Matt McCann, who manages the operation, about twice a day and visits the farm in person about every 10 days.

In an interview with Jonathan Berr for PhillyInc, Zuritsky said he can indulge his interest in koi because he’s confident in the management team at Philadelphia-based Parkway, which very much remains a family affair. His daughter Anna Z. Boni is vice president for risk and claims management. His sister Etta Winigrad is a senior vice president and Etta’s son Jake Winigrad also is a Parkway vice president.

Parkway has 100 locations with 30,000 parking spaces in nine markets including Philadelphia and also designs and develops parking garages and commercial properties.

PhillyInc: What lessons did you learn about business from your late father?
Zuritsky: He was not the typical full-time entrepreneur. He gave me room to grow. (For the next generation) I gave them space. I let them learn on their own as I have done.

Innovation Philadelphia, the Philadelphia city office created by John Street to juice the local entrepreneurial economy and which probably has had more than its share of ups and downs, said today it has unveiled a new Web site. Take a look at www.innovationphiladelphia.org and give it a review. Wonder why George Burrell couldn't wait to leave before it unveiling this?

Philly Future is running a poll: "How often do you make it a point to shop at a local small business?" Posted by bean9493.

When it comes to funding new businesses, the Delaware Valley is a pretty languid place, according to Jeffrey Babin, a lecturer on entrepreneurship at the University of Pennsylvania's Wharton School of Business and an angel investor himself at his firm Antiphony Partners LLC. Data from PricewaterhouseCoopers LLC shows that the Philadelphia area attracted $195.8 million in funding from venture capital funds in the second quarter this year. That was below the $278.7 million a year earlier and less even than the quarterly median of $205.3 million over the preceding decade. (See data here.)

These figures are near the middle of pack for major U.S. venture markets and far below areas like Boston and San Diego. That's something Babin calls concerning for the region and Wharton, which not only wants to train people to start businesses but also keep them here.
Babin, who funds small startups in the hopes that they may become the next Google and serves as program advisor to Wharton's Venture Initiation Program, discussed the region's advantages and obstacles in an interview Jonathan Berr for PhillyInc.

PhillyInc: How has the entrepreneurial climate in Philadelphia changed?
Babin: The balance of power has shifted more to the entrepreneur. ... We still have a fair bit of money that people need to invest.

From Berwyn to Leblon Beach

No word from Bacardi. But according to Bonney, it all started when he and his Penn State buddy Steve Luttmann, a former brand manager for Grand Marnier, saw an opportunity to market a new rum in North America to meet a growing demand for premium, exotic spirits. They went to Brazil and taste-tested various recipes. Then Luttmann hit on a brand name while visiting Leblon Beach, not far from Ipanema Beach, that one made famous by Antonio Carlos Jobim's hit musical homage to a nameless Girl. Evidently Ipanema was taken, so they used Leblon, a beach conveniently named for a 19th century Brazilian distiller (who had no connection to their rum, but that's a small detail.) Bonney told PhillyInc: "We were looking for something with a little panache." They selected the bottle, the slogan, the whole tone: Berwyn conquers Brazil.

CMF, Bonney and Luttmann still retain a share of ownership in Leblon, and Luttmann still serves as Leblon's CFO. But Bonney said they eventually would like to sell Leblon entirely. For now, Bonney said Leblon is hoping to piggyback on Bacardi's national distribution network and leap into upscale restaurants and bars. As for CMF, Bonney says he hopes to focus on its core business of providing financial management, due diligence and advisory services to private-equity and middle-market firms. Then again, he says: "I've been getting requests from other spirit producers."

- Thomas Ginsberg

Verticalnet Inc., run by Nathanael Lentz, says it got another delisting warning from the Nasdaq Stock Market after falling short on one or all of three key financial qualifications (it didn't say which). But a comeback compliance plan won't help this time. Lentz's only hope is an appeal hearing. Unclear if or how a delisting may affect its planned sale to Italy's BravoSolution S.p.A. for $15.2 million.