Incubator tenant maps its growth
Data Enhancement Services among newest tech firms there
The Frederick County business incubator's newest tenant, Data Enhancement Services, makes sure that the nation's roads and waterways are where government officials think they are.
The company, founded in May 2004, "delivers premier solutions for highly automated geographic information systems data conflation and feature extraction services," according to its Web site.
In other words, said company president Richard Freedland, "if a map shows a street or river that is in the wrong place, we look at a new map in order to move it to the correct place,"
Bernard Catalinotto founded DES after spending 10 years as senior vice president of operations at Thomas Brothers Maps, a company that began in California and has since been acquired by Rand McNally.
Catalinotto started DES in an effort to create better mapping data and maps.
"Everything is being mapped by everybody," he said. "The way to really get data to businesses is to combine the best of everything."
Privately held DES had been experiencing steady growth but went through a "horrifying" 2008, according to Freedland, who declined to disclose revenues. In some ways its rough 2008 led DES to become a startup all over again this year, he said.
Much of its business is with state and municipal governments, some of which terminated projects with DES last year when their funding dried up, Freedland said.
The drop in revenues prompted belt-tightening and the move to the Frederick Innovative Technology Center Inc. incubator, which offers to its tenants business resources, including easier access to capital through federal Small Business Innovation Research grants and relationships with local banks, plus connections with the county that could yield contracts.
"Every county and every city has a need for some kind of mapping services," Freedland said.
DES, with about 15 employees, has a promising future at the incubator because it is in a position to experience dramatic growth, said Michael J. Dailey, the incubator's executive director.
"Their [geographic information system] technology and what they can do with it is by far superior to any of the existing technologies out there," Dailey said.
However, state-of-the-art technology alone isn't enough to ensure success, he said.
"You have to have the business acumen and the infrastructure to capitalize on that technology and become successful, and that's where we think FITCI can help DES," Dailey said.
DES specializes in mapping rivers, which Freedland said is the most difficult task, as they bend over time.
"The whole industry is based on geometry and mathematics," he said.
DES often works with officials in states that are prone to flooding. Sometimes the current maps show waterways more than 1,000 feet from their actual location.
The mapping industry is growing rapidly in the Washington area, according to Freedland. DES has projects in the works with Baltimore County, which if successful will then go statewide.
"I think we bring a little different look and that energizes people," Freedland said.
The mapping industry exploded in the 1980s, when it evolved from a graphics industry to a digitized one, as those newer maps were much easier to edit and correct, he said.
Among the industry's newest tools are cameras that take pictures by using lasers to collect accurate data on the elevation and height of features such as roads, rivers, buildings, power lines and trees.
Incubator growth
DES is one of six tenants to join the incubator in the last six months, Dailey said. No tenants were added last year.
The incubator — which opened in 2005 with an original 10,000-square-foot location at Hood College and later added an 11,000-square-foot facility on Metropolitan Court — recently added renewable energy to its list of industries it specializes in, joining biotechnology and information technology.
The idea is to create high-tech jobs in the county. More than 40 percent of the local work force commutes out of the county, Dailey said.
FITCI tenants have created 180 jobs in Frederick County. So far, 10 companies have graduated, including eight last year.
With four prospects lined up to move in, Dailey expects the incubator to be full by the end of the year. Besides DES, UR Solar Power and Carevision recently moved in.
The relative scarcity of investment capital during the recession has forced some tenants to move out, Dailey said.
"We are more fortunate than other incubators because many of our current clients and our prospects aren't dependent on venture funding," he said. Still, revenues for some tenants have dipped during the downturn.
Small businesses are the backbone of the county's economy, according to Laurie Boyer, director of the Frederick County Office of Economic Development.
"Anytime we can help [the incubator] get a leg up on the competition, it benefits everyone," Boyer said. "The incubator provides a number of resources to help small companies grow and grow smart."
The county is fortunate to have a vibrant biotech industry, said M. Richard Adams, president and CEO of the Frederick County Chamber of Commerce, in an e-mail. He added that the chamber tries to partner with FITCI to help new bioscience and technology companies feel welcome in the Frederick business community.
"FITCI gives individuals with an idea the opportunity to make their dream a reality," Adams said. "Many tech startups are now viable companies because of FITCI's support."