Two University of Cincinnati professors have developed a technology to track students’ participation in activities that build their reputation and are turning it into a company they hope becomes Cincinnati’s next big startup.
Michael Jones and Jordan Tate have launched Carbon Copy Assets. The company features their technology that enables scholarship students to record their participation in activities outside the classroom such as volunteering and going to events and career fairs that are required for them to keep those funds. It records those activities using blockchain technology so scholarship donors and employers can see the data.
Once Jones, who is director of UC’s Cryptoeconomics Lab, and Tate, fine arts professor at UC’s College of Design, Architecture, Art and Planning (DAAP), saw how the technology worked, they realized it could be used by college athletes to demonstrate the value of their personal brand. That’s highly sought after when athletes team up with companies to make money through use of their name, image or likeness (NIL).
Jones and Tate have high expectations for the company.
“We definitely want this to be the next unicorn, a $1 billion startup,” Jones told me. “We’re not going for a lifestyle company here. UC wants to hit the home run.”
They’ve already received $115,000 in entrepreneurship funding through UC’s 1819 Venture Lab program. That came after they went through the Venture Lab pre-accelerator program in the 1819 Innovation Hub. That program provided entrepreneurial guidance and resources. Carbon Copy Assets has also been admitted to its Startups Founders Hub as part of 1819 Venture Lab’s partnership with Microsoft. That gives them access to Azure software credits worth up to $150,000.
Now they’re raising money in a pre-seed round. Jones didn’t specify how much they’re looking for, but they want enough to get through the end of the year. After that, he figures they’ll raise a seed round.
“We fully plan to be in the VC-backed space,” Jones said.
Neither Jones nor Tate has run a startup before.
“That’s what’s exciting about it,” Jones said.
They came up with the idea when pondering the amount of activities students need to verify to keep their scholarships. There’s no simple clearinghouse to keep track of their participation.
“It can be hard to measure these things, and I thought there had to be a better way,” Jones said.
Students claim badges by swiping their phone or a specially designed card that’s Tate’s brainchild. The system has steps built in to ensure students have to actually show up for these events and can’t just have someone else go in their place.
Once they developed the system, Jones and Tate saw another large use that captures a hot trend in college sports.
“We realized we’re creating a reputation system,” Jones said. “If companies could measure the reputation of these students and create a provable way for students to share this with employers and brands, we can improve the NIL experience.”
The idea is companies that are willing to pay to have student-athletes represent their brand want those athletes to have a strong reputation. And with Carbon Copy Assets’ technology, they can prove that.
“We can protect that downside risk for the brand,” Jones said. “We can’t guarantee a student-athlete isn’t going to say something completely off the rails. But if they’re in the chess club and out there volunteering, it’s pretty unlikely they’re going to be posting something that’s a bad fit for the brand.”
Carbon Copy Assets makes money by charging a brokerage commission when companies and student-athletes team up. The companies pay that commission. Additionally, companies can advertise on the platform to sponsor specific badges students earn as they attend events and meet certain criteria.
UC swimmer Jessica Davis has already started to use the platform.
“She’s the target market we’re going for,” Jones said. “She’s in a non-football or basketball sport. She’s very active on social media and very engaged.”
They expect to expand it to other athletes, and they don’t need to be stars.
“There’s a real market for that second-string player who has a massive social media following and a great reputation,” Jones said. “They might be a better fit for a brand.”
Jones and Tate are building an NIL marketplace function this summer. That will enable brands and student-athletes to not only share information but connect companies with athletes to provide endorsement opportunities.
Carbon Copy Assets has started sharing the platform with other student-athletes at UC.
It plans to expand to other colleges, too. It has made a presentation to Thomas More University.
This summer it will make a push to sign up businesses who are interested in signing student-athletes.
Jones and Tate have a patent pending for the technology. UC owns the patent but Carbon Copy Assets licenses the technology at a relatively low price.
“UC has been very generous to us,” Jones said.
Jones and Tate are the majority owners of the company, with some others who are supporters of UC. The university is not an equity owner.
This summer they expect to have the money to bring in a full-time CEO. Jones fills that role now. He’ll remain in his faculty role, which is what he wants to do.
“That’s what the university wants, too,” he said. “They want us to get it going, prove the concept but then keep doing research, teaching and being involved in the community.”
There’s a lot of competition in the relatively new but fast-growing world of NIL, particularly on the marketplace side. But Jones sees Carbon Copy Assets as being able to set itself apart because of its unique system of tracking reputation-building activities.
“We think there’s a missing niche for other students outside of NIL,” he said. “And we want the universities to adopt our solution and then we’ll get the student-athletes.”
They see a huge opportunity.
“It’s a loyalty platform for universities,” Jones said. “What if you can provide real-time insights into how donor money is being used?”
Bowling Green State University recently announced $140 million in scholarships, the largest in Ohio’s history. It’s dependent on students performing community service and meeting other criteria.
“We’re building a solution to do that,” Jones said. “We think donors are going to want to fund this. Now your market is massive.”
