Innovation & Job News

What started as a freshman-level engineering project meant to help make the world a better place has become a socially entrepreneurial start-up that aims to do just that.

Centri Cycle is creating a cost-effective and easy-to-use centrifuge that can be used to perform simple medical tests in the Third World. The idea is to make this self-powered technology available in places like India to help combat preventable suffering and death from disease.

"We took the idea and ran with it," says Carolyn Yarina, CEO of Centri Cycle.

Yarina and her co-founder (both University of Michigan students) have gotten the technology to the prototype phase where it is being tested at the University of Michigan Hospital. The TechArb-based start-up hopes to bring its technology to market in the U.S. next year and to India by fall of 2014.

"It should be ready for market in March or April," Yarina says.

Source: Carolyn Yarina, CEO of Centri Cycle
Writer: Jon Zemke

Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Omar Hashwi has always thought public performance and music platforms like Youtube were difficult to use and unfriendly to small bands and DJs looking to break out. That's when the University of Michigan student decided to build a better music platform, Stamp.fm.

"We want to make sure every artist can be heard," says Omar Hashwi, founder & president of Stamp.fm. Hashwi is also a local DJ and vice president of the student body at the University of Michigan. "We want this to be a well-known platform where people go to discover new music and artists go to kickstart their careers."

The 5-month-old start-up provides a platform for what it calls online music tournaments. Every couple of weeks, Stamp.fm asks artists to audition in places with dynamic music scenes, like Ann Arbor and Detroit. The auditioning acts then square off in a battle-of-the-bands-like contest where a champion of that city's music scene is announced.

The Ann Arbor-based start-up and its team of a few dozen contributors has already held one of these competitions in Ann Arbor and is looking to expand into other nearby markets, such as Detroit and Chicago.

Source: Omar Hashwi, founder & president of Stamp.fm
Writer: Jon Zemke

Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

DeepField is planting its flag on West Liberty in downtown Ann Arbor, claiming new office space where it can call the likes of Menlo Innovations, Barracuda Networks, and Google as neighbors.

"It's an incredible pool of talent and energy," says Craig Labovitz, CEO & co-founder of DeepField. "It's incredibly close to the university and the growing pool of tech talent."

The 1-year-old start-up got its start in the Tech Brewery on Ann Arbor's north side. That is where the company has done much of the work to develop software that enables large corporations to adapt to the ever changing world of the Internet's back-end IT infrastructure. It raised $1.6 million in venture capital last year to develop its technology.

DeepField's technology is now deployed in some large companies (Labovitz declined to name which ones) in North America, Europe and South America. "We're seeing a large part of the consumer Internet traffic in the United States," Labovitz says. Naim Falandino, chief data scientist for DeepField, adds, "We are in all segments of the market now."

DeepField recently hired two people, bringing its staff to nearly 15. The growing staff meant it had to sign a two-year lease for a new office space downtown to make room for the new hires. DeepField currently has five job openings and expects to make another 10 hires later this year.

Source: Craig Labovitz, CEO & co-founder of DeepField and Naim Falandino, chief data scientist for DeepField
Writer: Jon Zemke

Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

AlertWatch has set some high hopes for its first round of venture capital. The Ann Arbor-based start-up has raised $1 million in seed capital and plans to formally close on its Series A round in 2014.

The 1-year-old star-up is a University of Michigan spinout and calls the Venture Accelerator at the university's North Campus Research Complex home. Its first year has focused on pushing forward the development of its patient-monitoring technology and turning its team of three people's work into full-time jobs.

"A lot of it was just the blocking and tackling of getting a company off the ground," says Justin Adams, CEO of AlertWatch.

AlertWatch's technology is a secondary patient monitor for hospital operating rooms. It aggregates data from multiple networks and hospital IT systems and displays them at a central location. It is currently being used in three pilot projects. Adams hopes to have its intensive care unit product ready for commercialization and to be piloting an emergency room product by early 2014.

"We'd like to be in five hospitals and have a term sheet for a Series A round," Adams says.

Source: Justin Adams, CEO of AlertWatch
Writer: Jon Zemke

Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Terumo Cardiovascular Systems continues to expand as a rapid pace, growing its Ann Arbor-based workforce to 600 people after making 150 new hires in the last two years.

The company currently has 30 open positions in a variety of white-collar work areas.

"These are all-across-the-board jobs," says Barbara Schmid, director of corporate communications at Terumo Cardiovascular Systems. "They are in professional, medical and administrative fields. A majority of them are in engineering."

Terumo Cardiovascular Systems is a subsidiary of Japan-based Terumo Corp but has called the Ann Arbor area home for nearly 50 years. It is a maker and global exporter of heart and lung machines and other devices used in cardiac surgery. Among its technologies are perfusion products, which are used to temporarily replace the functions of the heart and lungs during cardiac and thoracic surgical procedures, and intraoperative monitoring systems that provide continuous information on important blood parameters during cardiac surgery.

Terumo Cardiovascular Systems recently finished a nearly $5 million investment in upgrading its Ann Arbor facilities. It recently secured a 12-year tax abatement for the project.

Source: Barbara Schmid, director of corporate communications at Terumo Cardiovascular Systems
Writer: Jon Zemke

Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Ingenex Digital Marketing's recent growth curve might rest on the new economy of website design and Internet marketing, but it's building its company on some age-old business ideas, like word-of-mouth referrals.

It has tackled website redesigns in the last year for some major players in Michigan, including Cranbrook.edu and Aiag.org. The downtown Ann Arbor-based company wants to continue taking on some more major institutions in the Great Lakes State as clients, but it's going to be choosy.

"We don't want too many clients," says Derek Mehraban, CEO of Ingenex Digital Marketing. "We want clients that are progressive and want to do smart things online." He adds the idea behind this line of thinking is to take on more clients who are interested in long-term work in building their online brands.

Ingenex Digital Marketing has also grown its staff to seven employees and four interns. The 7-year-old company has hired four people in the last year, including a new client-experience manager, account manager, social media director and Google search specialist. The firm is also looking to hire a web developer right now.

"We just do a lot of websites," Mehraban says. "We need more people."

Source: Derek Mehraban, CEO of Ingenex Digital Marketing
Writer: Jon Zemke

Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Mobile-app start-up Larky has publicly launched its newest app and is growing its small staff to make it a success.

The downtown Ann Arbor-based company is creating an app that helps consumers maximize their membership perks and loyalty programs. The app alerts them when they are eligible for savings or discounts through things like alumni association memberships.

Many of these reward programs are highly underutilized because of consumer ignorance or forgetfulness of their existence. Larky's technology looks to remind consumers of these perks at the point of purchase. So far, 10 major organizations with access to 50 million consumers have signed on and Larky is looking to lock down a few thousand more in the next few months.

"We built this to be used on a very large scale," says Gregg Hammerman, co-founder of Larky. "We are proud to be based in Michigan and to have Michigan partners, but we want to scale to millions of members."

Larky landed $650,000 in seed capital earlier this year. It has a staff of three full-time employees and another three part-timers. The full-time employees include the company's two co-founders and one Adams Entrepreneur Fellowship Program fellow.

"He has been enormously helpful," Hammerman says. "He has helped us grow a lot."

Source: Gregg Hammerman, co-founder of Larky
Writer: Jon Zemke

Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Ruth Ann Church launched Artisan Coffee Imports to help more than herself. The Ann Arbor-based decaffeinated coffee importer also helps create economic opportunity in third world countries around the world.

"There has been a long-time interest in developing countries and coffee has a unique ability to bring economic development to developing countries," says Church, president of Artisan Coffee Imports. "I was drawn to coffee to do some good in the world."

Church worked in sales and marketing in the higher education and automotive industries. She has turned Artisan Coffee Imports into her full-time job. Church decided to focus on decaffeinated coffee because it's what she likes to drink and she sees it as being underserved in the artisan coffee market.

The company has expanded its service offerings to include consulting and expects to triple its overall sales this year. "We are really finding out what products resonate with our customers," Church says. "I would love to see this become a three-to-four-person operation."

Source: Ruth Ann Church, president of Artisan Coffee Imports
Writer: Jon Zemke

Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Chris Bogdan spent $5 or more a day at coffee shops for more of his college career than he likes to remember. The regular caffeine and sugar rush from his regular coffee and muffin came at a cost he thought could be lower, so he and a friend came up with a start-up to do that.

Get Up and Go makes caffeine-infused muffins that pack the same kick as Bogdan's coffee and pastry habit. The difference is they cost $3.50 and are a convenient grab-and-go item.

Bogdan and Zach Rose, both University of Michigan undergraduate students, launched Get Up and Go last summer not long after Rose and friends tasted some of Bogdan's first test treats. Bogdan, a neuroscience major, studied chemistry that helps show him how to make caffeinated food tasty.

"I have this background in science so I can find a way to mask the taste of the caffeine," Bogdan says.

The Ann Arbor-based company is focused on online sales and is working on a deal with ThinkGeek.com, according to Bogdan. The two are looking to ramp up sales and break into the retail markets this summer after Bogdan graduates from college and can focus on the business full-time.

"Our goal is to do $750,000 to $1 million in sales," Bogdan says.

Source: Chris Bogdan, CEO of Get Up and Go
Writer: Jon Zemke

Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

As the healthcare industry continues to evolve, one Ann Arbor-based company is capitalizing on the trend by staying ahead of the communication curve.

CareEvolution creates software that allows one hospital's data center to speak to another's, facilitating a sharing of electronic medical records and information that streamlines patient care.

"We help hospitals exchange information with one another or doctors with hospitals," Kheterpal says.

That process has become more complicated with new federal regulations in legislation like the Affordable Care Act (AKA Obamacare), prompting companies like CareEvolution to step into the breach.

"Much of what we do has come into sharper focus," says Vik Kheterpal, principal of CareEvolution. "That has fueled our growth."

That growth includes 15 new hires at CareEvolution, bringing the 10-year-old company's staff to 50 employees and a few interns. Kheterpal expects to hire another 15-17 people over the next year. That is being prompted by 60-percent-plus revenue growth.

"We expect to grow faster than that in 2013," Kheterpal says.

Source: Vik Kheterpal, principal of CareEvolution
Writer: Jon Zemke

Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Backyard Brains insect neuroscience kits can not only be found across the U.S. this year, but also on the other side of the world. The Ann Arbor-base company is now exporting its products to a number of South American countries, thanks to an entrepreneurship program in Chile.

Chile is going through an economic boom thanks to exports of natural resources. The government is using these good times to help spur more entrepreneurship through things like its StartupChile program, which brings in entrepreneurs from around the world to help inspire more business creation. Backyard Brains won one of the start-up grants and used it as a bridge to help spread its product sales to Chile and several other South American countries.

"It's been great," says Tim Marzullo, co-founder of Backyard Brains. "We have actually received another round of funding from the Startup Chile program. We have been going back and forth from Chile for the last year."

Marzullo and his partner Greg Gage, both neuroscientists, started Backyard Brains three years ago as a way to provide a cost-effective product that teaches grade-school students the workings of neurons in the brain. Its Robo Roach allows them to control insects via antennas. Since then the company has expanded to a team of nine and the occasional intern after adding five new positions in the last year.

Backyard Brains initially received a National Institute of Health grant for start-up funding. It is now angling for a second round grant from the National Institute of Health and otherwise using sales of its products to fund its growth. Backyard Brains' products can now be found in all 50 states and on all seven continents after sales from its Chile distribution made it ways to Antarctica.

"We are pretty well-known as the go-to company in the neuroscience equipment field,"  Marzullo says.

Source: Tim Marzullo, co-founder of Backyard Brains
Writer: Jon Zemke

Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

If you're looking for a success story in the wake of Pfizer closing its operations in Ann Arbor five years ago, look no farther than Velesco Pharma.

The Plymouth-based company, it calls the Ann Arbor SPARK-managed Michigan Life Science Innovation Center home, offers pharmaceutical consulting and laboratory services. It also operates a plant in Kalamazoo that makes dosage forms for clinical trials. Each year since its start, the company has experienced sustained growth.

"Velesco Pharma continues to have significant growth," says Gerry Cox, COO of Velesco Pharma, former Velesco Pharmaceuticals. "We continue to work with ore than 75 different clients."

Velesco Pharma currently has 17 people and a few summer interns between its facilities in Plymouth and Kalamazoo. It has hired two people over the last year as it's clinical trial products and services continue to gain traction in the market. Cox expects to spend 2013 strengthening the firm's branding and business development resources to sustain its growth pattern.

"There has been significant demand," Cox says. "There has also been a lot of repeat business from existing clientele."

Source: Gerry Cox, COO of Velesco Pharma
Writer: Jon Zemke

Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Accent Reduction Institute could have moved wherever it wanted last year when Menlo Innovations, which it shared office space with, relocated from its Kerrytown headquarters closer to the University of Michigan's campus. Instead, the 7-year-old company found another office in downtown Ann Arbor.

"This is home to us even though north of 98 percent of our clients are outside of southeast Michigan," says Judy Ravin, president & founder of Accent Reduction Institute. She adds that she and her executive team "love Ann Arbor. We are three University of Michigan graduates. We feel really connected to the community. It's a wonderfully business community."

Accent Reduction Institute's close ties to U-M were a major reason for it staying nearby. The university serves a pipeline of talent for the company, mostly in the form of interns. Accent Reduction Institute has hired three of its former interns over the last year, expanding its staff to 20 people and 3-4 interns each year.

"Our interns provide a wonderful pipeline for other interns," Ravin says. We get fantastic people to work with."

The Accent Reduction Institute provides accent reduction training programs for non-native English speakers so they can carry on communication seamlessly. It also develops English pronunciation software to help people eliminate language barriers while maintaining their unique cultural identity. Menlo Associates, the holding company for Menlo Innovations, is still a major investor.

Ravin points out that the talent gap for major companies is driving the Accent Reduction Institute's recent growth. She explains that as more baby boomers retire the company's are scrambling to find their best talent to replace them in the workforce. That in turn is prompting Accent Reduction Institute to add to its staff. It is currently looking for up to two more linguistics professionals.

Source: Judy Ravin, president & founder of Accent Reduction Institutue
Writer: Jon Zemke

Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

The Pure Michigan Social Entrepreneurship Challenge is taking on one of the toughest challenges of unemployment, the structurally unemployed.

The structurally unemployed are characterized as people who are low-income, have a criminal history, at risk youth, high school drop outs, functionally illiterate or have been unemployed for long periods of time.

"They're people who have difficulty finding a job even when jobs are plentiful," says Jim Durian, director of Community Ventures, which is part of the Michigan Economic Development Corp. "They have barriers to finding employment."

To help solve this conundrum, Community Ventures is sponsoring a $25,000 prize at the Pure Michigan Social Entrepreneurship Challenge for socially entrepreneurial start-ups that help encourage the hiring of structurally unemployed individuals.

The Pure Michigan Social Entrepreneurship Challenge is a statewide competition designed to advance ideas and solutions that address social challenges. The competition is looking for start-ups with an emerging entrepreneurial idea or replicable model from an existing organization for sustainable social change in a wide range of areas including but not limited to urban revitalization, environment, health, and education. It is being organized by the Michigan Corps and Great Lakes Entrepreneur's Quest, two organizations that have roots in the Ann Arbor area.

The deadline to applying to the company is March 27. For information, click here.

Source: Jim Durian, director of Community Ventures
Writer: Jon Zemke

Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Gold Star Mortgage Financial Group plans to move into the former headquarters for Borders in Ann Arbor this spring.

The Ann Arbor-based firm is more than doubling its space to 70,000 square feet, which should allow the company to continue its rapid expansion. Gold Star Mortgage Financial Group has hired 100 people in Ann Arbor over the last year, expanding its workforce to 300 people at its current headquarters. The company is growing so fast it projects to hire another 250 in 2013.

"I wouldn't be surprised if we add 300 people," says Rick Richter, executive vice president of Gold Star Mortgage Financial Group. He adds that his company is at least "adding about 30 people a month" and looks to leverage the region's deep talent pool of young people.

Gold Star Mortgage Financial Group is a full-service mortgage business that closes more than $1.5 billion in loans per year. It has focused on growing its presences in southeast Michigan and across the state to continue its organic growth. The 10-year-old company has doubled its growth over the last year thanks largely to expanding its local staff.

"We kept bringing on new people, run them through our training program and they have enjoyed a lot of success," Richter says.

Source: Rick Richter, executive vice president of Gold Star Mortgage Financial Group
Writer: Jon Zemke

Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.