Entrepreneurship

Coverage of those starting up businesses and community resources to help them thrive.

Ann Arbor’s North Coast Tech Investors hits $100M in VC

By Newsroom

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March 25, 2009

Twenty years ago venture capitalist Hugo Braun left California and came back to Michigan, taking a job at Access Ventures. Ten years later he and another partner turned it into North Coast Technology Ventures with $10 million under its management. Today that number has reached $100 million and is still expanding.The downtown Ann Arbor-based firm is getting ready to close on another investment vehicle (fund) this summer. It will be another large chunk of change that will allow North Coast Technology Ventures to make investments for at least the next few years."We feel this is an excellent time to make investments," Braun says. "Even though it's a depressing time there are a lot of excellent ideas out there."North Coast Technology Ventures is made up of Braun, one other partner and one more employee. The company will also have interns during the summer months, occasional venture partners and entrepreneurs in residence. It also uses its offices to help incubate companies in which it has made investments. Most of those companies are local."The nearer they are to us the more attractive they are," Braun says. "Our investments are in the Midwest and most of them are in Michigan."North Coast Technology Investors invests in a wide range of start-ups. They include the likes of software firm Arbortext and life sciences company Avidimer Therapeutics. Source: Hugo Braun, principal of North Coast Technology InvestorsWriter: Jon Zemke

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Ann Arbor/Ypsilanti pushes envelope with news consumption

By Newsroom

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Economic Development

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March 25, 2009

A media revolution is taking place in Washtenaw County and the first casualty appears to be The Ann Arbor News, a venerable 174-year-old local institution.Replacing it will be a news website, AnnArbor.com, and a newspaper that publishes every Thursday and Sunday. The Ann Arbor News as we know it will cease to be in July. Booth Newspapers, which owns the paper, plans to continue providing news coverage in the Ann Arbor area.The purpose of reporting on local news will be the same, but the website's staff will be significantly smaller than the newspapers. How that reporting is done, what it looks like and how its presented are still details that are being worked out."This is not the end of local journalism in Ann Arbor," says Laurel Champion, publisher of The Ann Arbor News and who will serve as the executive vice president of AnnArbor.com. "This is just a changing in how it's served."But what happens next for local journalism is not as clear. A number of independent, web-based news organizations have popped up in recent years, including this publication, YpsiNews.com, The Ann Arbor Chronicle and the Ypsilanti Citizen. Local blogish websites, Mark Maynard and Arbor Update, have also surfaced as information alternatives.Much of the initial conversation in the aftermath of The Ann Arbor News' announcement has centered on how the business model for newspapers is irreparably broken, leaving a huge void when it comes to a community voice and watchdog. Some are not so certain."The model of current journalism is broken," says Steve Pierce, owner and managing editor of YpsiNews.com. "It's not unusual that the people who broke that model are running around saying the sky is falling."Almost in the same breath, Pierce says the recent developments with The Ann Arbor News are a "huge concern for me." Pierce started his website in 2006 after he thought local news coverage in his community was lacking and decided to step up. He isn't a journalist by trade, but his sometimes muckraking site has served as a watchdog of local government and events. But he concedes the community needs more than just him. He credits the Ann Arbor News for having the wherewithal and deep pockets to go after the hard investigative stories."There is no way my little media outlet can afford to do that," Pierce says. "The Ann Arbor News has been willing to spend the money on important fights like the President's house and the EMU murders. Even if The Ann Arbor Chronicle, Ypsilanti Citizen and Ypsi News combined resources there is no way we could take the EMU lawyers to task."He is currently looking at other avenues to help deepen local pockets, like Spot.us, and keep local media watchdogs barking. Not that there aren't working watchdogs today. It's just that they are more in the puppy stage of life. But they have been able to bark loud enough recently to make local government meetings more accessible and open to the public."There is this notion that real journalists are doing investigative reporting, routing out corruption, asking tough questions," says Dave Askins, editor of The Ann Arbor Chronicle. "There is the idea of the Fourth Estate. We aspire to some extent to fill that."Source: Steve Pierce, owner and managing editor of YpsiNews.com, Dave Askins, editor of The Ann Arbor Chronicle and Laurel Champion, publisher of The Ann Arbor NewsWriter: Jon Zemke

Ann Arbor’s MyBandStock.com opens local music to local investors

By Newsroom

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Arts & Culture

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March 25, 2009

Many music entrepreneurs try to go the Berry Gordy route of making it in the biz: Start an independent label, sign acts, tour, sell records, repeat. The dozen or so people behind Ann Arbor's MyBandStock.com look at things from a slightly different view point.MyBandStock.com's motto is to give music back to the people who are passionate about it: the artists and their fans. It does that by letting customers buy stock in the bands they like through their website. Think of it as viral grassroots funding."This is a business but it's not all about making money," says Taylor Hulyk, director of public relations for MyBandStock.com. "This is us out there to help spread the music. MyBandStock.com wants to put the focus back on the music. We want to give the power of the music back to the people who love it."Right now there are 11 active young people (and a few more behind-the-scenes investors) getting the website and its accompanying web-based community off the ground. The founders are all Michigan-based people who went to the likes of University of Michigan, University of Michigan-Dearborn and Michigan State University.They all work from their own virtual office (i.e. laptop) where they continue to labor away on their passion – music. Right now that's all about their local music scene, but they have big plans on growing that."We hope to expand regionally in the next year and nationally after that," Hulyk says. "It's going to be a slow process."Source: Taylor Hulyk, director of public relations for MyBandStock.comWriter: Jon Zemke

Ann Arbor SPARK looks for next entrepreneur boot camp class

By Newsroom

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Entrepreneurship

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March 25, 2009

A lot of communities are talking up the entrepreneurship game these days, holding networking events and seminars to help get these little businesses of the future going today. Ann Arbor SPARK takes it a step further with its Entrepreneur Boot Camp, and it's a big step.Boot camp is where aspiring business people pack a few years worth of business learning into two days. Think of it as an entrepreneurship cramming session for people with ideas who lack the basic knowledge about starting a business. This unique two-day program is a rare opportunity in the Ann Arbor area and the whole state. Most other new economy business incubators offer similar services in a hodgepodge of programs over a longer period of time.This year organizers from Ann Arbor SPARK are working to get participants involved and better prepared for boot camp earlier. That includes giving them more information and working with them beforehand."We feel that if we have companies more engaged they will be better prepared," says Elizabeth Parkinson, managing director of marketing and public relations for Ann Arbor SPARK.Ann Arbor SPARK is currently taking applications for its next boot camp on April 23-24. So far a number of companies have signed up, including firms that specialize in fuel cells, recreational equipment and nanotechnology. Companies that participated the last go around included software developers, bio-tech firms and Internet start-ups.Concentrate followed a couple of these local entrepreneurs through the last boot camp. That story can be found here. For more information about the boot camp application process send an email to Lori@AnnArborUSA.org.Source: Elizabeth Parkinson, managing director of marketing and public relations for Ann Arbor SPARKWriter: Jon Zemke

Rizzolo Brown + Novak Architects goes for green in Ann Arbor

By Newsroom

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Arts & Culture

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March 25, 2009

The girls behind Rizzolo Brown + Novak Architects may have started their company because of the current economy, but they see the situation as an opportunity.Celeste Alen Novak and Connie Rizzolo Brown fouded their downtown Ann Arbor-based firm last year by focusing on design that incorporates things as eclectic as art and as essential as sustainability. They now have one more employee/intern and two consultants as they continue to take on more work."I think things are challenging but exciting," Rizzolo Brown says. "It breeds a new ways of looking at design and energy issues and containing costs."Rizzolo Brown + Novak Architects is doing that kind of work for Ann Arbor-based Motawi Tile, the Ann Arbor Art Center and People's Food Co-op, among others. Their innovative design work includes materials not normally seen in traditional architectural projects (recycled car window glass) but that doesn't mean they don't take on the less glamoroussustainable work, such as renovating fire damaged apartments or building green homes.The firm tackles every project with three things in mind: design, energy and sustainability."What are the sustainable parameters for working with a client?" Rizzolo Brown says. "How can we push those?"Both Rizzolo Brown and Novak are members of the American Institute of Architects and LEED certified. They also both teach architecture at Lawrence Technological University.Source: Celeste Alen Novak and Connie Rizzolo Brown, principals of Rizzolo Brown + Novak ArchitectsWriter: Jon Zemke

Biotechnology Business Consultants adds to staff

By Newsroom

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Economic Development

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March 18, 2009

For a long, long time Ann Arbor's Biotechnology Business Consultants stayed the same size, toiling at the firm's downtown office. Recently the company added a sixth person to ease the load.The company started in 1990 helping biotech start-ups get their feet under them. Today the company has expanded its reach beyond that, working with economic development agencies, like Ann Arbor SPARK.Some of the time their clients will be both the start-up and the business incubator assisting its growth. That has allowed the firm to add more customers both inside and outside of Michigan. "The demand of what we do has grown significantly but the funds to pay for it have been challenged," says Lisa Kurek, managing partner with Biotechnology Business Consultants.But she sees that challenge downsizing as more and more communities focus on economic development to grow their tax base and revitalize their areas. Enough so that she hopes to break with her company's habit of staying small and adding 1-2 more people within the next few years.Source: Lisa Kurek, managing partner with Biotechnology Business ConsultantsWriter: Jon Zemke

Ypsilanti’s downtown scores low vacancy rate despite economy

By Newsroom

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Development News

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March 18, 2009

Ypsilanti's downtown is enjoying a low vacancy rate these days, bad economy be damned. So much so that the downtown has half the vacancy rate of revered downtown neighbor Ann Arbor.Ypsi's vacancy rate measures a reasonably healthy 7 percent so far this year. Tree Town's comes in at 14 percent while Depot Town's vacancies hit 11 percent - but is expected to dip below 10 percent within a few months."A lot of other downtowns have vacancy rates above 7 percent ..." says Brian Vosburg, director of the Depot Town and Downtown development authoritie. "And a lot of the strip malls are ghost towns these days."Downtown Ypsilanti has experienced a boom in eclectic boutique and cafe-culture businesses setting up shop in the city's center. The opening of the Ann Arbor SPARK's East Incubator in the newly renovated Mack & Mack building is only the latest in a long string of blights storefronts turning into entrepreneurial bright spots.There are even plans to reopen the recently closed TC’s Speakeasy storefront on Michigan Avenue."We have people who are working on their business plan to purchase it," Vosburg says.Source: Brian Vosburg, director of the Depot Town and Downtown development authoritiesWriter: Jon Zemke

Ann Arbor’s Published Daily boot straps for growth

By Newsroom

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Economic Development

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March 18, 2009

The seven people behind Published Daily aren't just trying to make noise with their fledgling start-up. They're trying to make relevant noise.Published Daily offers a customizable service to create online magazines, newsletters, and marketing service that costs about $1 a day. This will help their customers relay relevant information in a timely manner in a world filled with too much information. The idea is to help professionals generate more referral business. "Every other service we’ve seen is focused on just content, or just newsletter templates, and the users are forced to spend more time and money in order to get their desired result," says Gibran Nicholas, chairman of Published Daily.The seven member staff (there is also one intern) all have an equal share in the company. This self-funding allowed the company to get off the ground and move forward without things like angel investors or venture capital. The firm hopes to take in $500,000-$1 million in revenue this year.Source: Gibran Nicholas, chairman of Published DailyWriter: Jon Zemke

Video Tech Transfer

By Keith Jefferies

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Economic Development

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March 18, 2009

From laboratory to marketplace, U-M's Tech Transfer Office plays matchmaker, introducing local venture capitalists to promising new technologies. And with $850 million in research and over 300 discoveries each year at the university the potential for crossover is tremendous.

SPARK East incubator opens in Ypsilanti with 4 tenants

By Newsroom

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Community Development

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March 11, 2009

New economy entrepreneurs have officially landed in downtown Ypsilanti now that four start-ups have set up shop in Ann Arbor SPARK's newly opened East incubator.The four lucky companies include LaVision, SENSI Change, Brainstorm Creative and Smart Dining. They are taking up part of the new incubator's 8,000 square feet on the ground floor of the Mack & Mack building on Michigan Avenue next door to Bombadill's Cafe. The Maurer family bought and renovated the blighted 19th Century building into one of downtown's most valuable addresses last year. Ann Arbor SPARK will occupy the ground floor while about a dozen lofts will be built on the second and third floors.The incubator has two conference rooms, utilities, high-speed Internet, copiers and convenient parking. It also provides expert business support from Ann Arbor SPARK and provides numerous opportunities to network with other new economy entrepreneurs. For information on leasing space click here or send an email to shamar@annarborusa.org or call (734) 527-9171.Source: Ann Arbor SPARKWriter: Jon Zemke