Innovation News

IROA Technologies scores $1M-plus in seed capital

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May 1, 2013

IROA Technologies (formerly NextGen Metabolomics) has a new infusion of seed capital to go with its new name. The Ann Arbor-based life sciences start-up recently landed a sizable Series A round of financing. Felice de Jong, the firm's CEO, declined to give a specific number of the amount beyond saying IROA Technologies closed a Series A worth "over $1 million." Bloomfield Hills-based O2 Investment Partners led the round with Ann Arbor SPARK and InvestDetroit also participating. IROA Technologies is developing tools to identify key metabolites that can be used to diagnose diseases such as cancer in samples including blood and urine. The start-up's technology is unique because it can cut through the clutter of information from the analysis of blood or other bodily fluids and tissues to find the critical metabolites that relate to disease and illness. That cuts the diagnosis time from hours to minutes. "Our tools make it easier to measure all of the metabolites in a person or any organism," de Jong says. IROA Technologies plans to use its new seed capital to continue development of its software, expand its sales and marketing and add to its team. The firm currently employs two people and is looking to hire two more now to push forward the commercialization of its technology. "We're hoping that within the year we will be able to launch our products," de Jong says. Source: Felice de Jong, CEO of IROA Technologies Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Latest in Innovation News

VC Web Design nearly doubles staff, plans to add interns

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Innovation News

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April 24, 2013

VC Web Design has grown to the point it's having a hard time finding space for its new hires, leading the downtown Ypsilanti-based business to start looking for a bigger home. "We can't fit any more people in here," says Vince Chmielewski, president of VC Web Design. "We would like to stay in downtown if possible." The 3-year-old business was the first to spin out of Ann Arbor SPARK's downtown Ypsilanti incubator. It specializes in website construction and video work. Its revenue has doubled in the last year, allowing it to hire three people. Those new hires include a videographer and website developer. The company now has a team of seven employees and is planning to add more interns this summer. That staff has been doing work with the Barwis Methods and Ann Arbor SPARK. Chmielewski expects the current rate of growth to continue for the rest of this year. "So far we're on track to double again," Chmielewski says. "It's why we might not be able to be where we are for much longer." Also helping accelerate VC Web Design is its recent switch to agile software development methodology. This new system emphasizes website developers showing updated versions of sites in the progress of development so changes can be made quickly and efficiently. "You can change direction very easily without waiting until the end," Chmielewski says. "It changes our output because we have to do less rework." Source: Vince Chmielewski, president of VC Web Design Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Qlovi aims to bring digital education into 21st Century

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Education

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April 24, 2013

The trio of U-M graduates behind the education start-up Qlovi see their venture not only as a business but as a social entrepreneurial experience. "We're really passionate about education," says Harlyn Pacheco, CEO & co-founder of Qlovi. "We have been educated in Michigan and have 5-6 degrees between us from the University of Michigan. We want to pay it forward as much as we can." The Ann Arbor-based start-up is developing a suite of literacy instruction and publishing platforms for the K-12 and digital publishing markets. Think digital educational content that is both instructive, engaging and easy to access from a computer or a mobile device. That's what Qlovi is aiming for. The 1-year-old start-up recently landed five figures' worth of financing from the Michigan Microloan Fund, which it is using to put the finishing touches on its platform. The company has 20 K-12 schools using the platform and plans to launch it nationally late this year. Source: Harlyn Pacheco, CEO & co-founder of Qlovi Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Arotech defense firm hires 40, doubles Ann Arbor space

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Community Development

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April 24, 2013

Arotech is growing its staff and footprint in Ann Arbor, doubling its commercial space with another 40,000 square feet and hiring 40 people over the last year. That growth is coming from the Ann Arbor-based defense firm's training and simulation division. That division, which employs 168 people, has watched its revenue jump 39 percent last year and expects another healthy year in 2013. Spearheading that growth are a couple of large contracts with the U.S. military. The largest is providing a simulation suite to the U.S. Army that helps soldiers train to find and disarm improvised explosive devices, commonly known as IEDs. The suite helps teach soldiers how to use equipment that finds and disarms IEDs, along with the vehicles that protect the disarming operation. "We're in the process of delivering our 15th suite out of 28," says Kurt Flosky, executive vice president of Arotech's training and simulation division. "We're delivering one per month." Arotech's training and simulation division has also enjoyed more business from the law enforcement and homeland security sectors. It has a contract with the U.S. Airforce to provide simulation technology to train soldiers how to operate mid-flight refueling booms and several contracts with municipal law enforcement agencies for training and use-of-force simulation. Source: Kurt Flosky, executive vice president of Arotech Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

MedImmune acquires Ann Arbor start-up AlphaCore Pharma

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Economic Development

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April 24, 2013

MedImmune has acquired Ann Arbor-based AlphaCore Pharma, creating another exit for a local up-and-coming start-up. MedImmune, the global biologics research and development arm of AstraZeneca, has not disclosed the acquisition price nor its intentions on whether to keep the start-up in Tree Town. Tracy Rossin, director of corporate public relations for MedImmune, did write in an email that the company does "not have plans to expand its operations/workforce in Ann Arbor." She does add that her firm is "planning to incorporate AlphaCore Pharma into the larger AstraZeneca organization." The 5-year-old biotechnology company is developing a recombinant human lecithin-cholesterol acyltransferase enzyme. The enzyme in the bloodstream is a key component in the reverse cholesterol transport system, which is thought to play a major role in driving the removal of cholesterol from the body and may be critical in the management of high-density lipoprotein (HDL) cholesterol levels. AlphaCore Pharma completed a clinical study last year with encouraging results, Brinkeroff says. That made the start-up and its eight-person team an attractive acquisition target, and Brinkeroff says MedImmune is a great partner to continue the development of the enzyme. "They have a deep experience in developing biological products," Brinkeroff says. "They're an ideal partner to hand off to." Source: Bill Brinkeroff, president of AlphaCore Pharma and Tracy Rossin, director of corporate public relations for MedImmune Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Language Link leverages corporate work for 3 new hires

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Education

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April 24, 2013

The Language Link Institute is witnessing the comeback of the corporate American internationalist, mostly in its bottom line. The Ann Arbor-based business has watched its revenue jump 20 percent in the last year on the strength of more business in the corporate language training sector. It has also seen more executives seek out tutoring in learning another language. "Corporate training seems to be back," says Caroline Wojan, owner & director of the Language Link Institute. "We have a good number of interested parties and we have signed a number of new contracts." The Language Link Institute primarily helps people either learn foreign languages or master English. It also offers tutoring services for students, and cultural and language training for foreign nationals in local businesses. It has also seen an increase in its test prep and student tutoring work and is branching out into hosting foreign language summer camps this year. That uptick in business has allowed the Language Link Institute to hire three people over the last year. Its staff now stands at 11 employees and a summer intern. "We're hopeful the corporate work will continue to grow," Wojan says. "It has been good the last three months and we're hopeful it will continue through the rest of the year." Source: Caroline Wojan, owner & director of Language Link Institute Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Dangos creates info-based travel app for destinations

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Economic Development

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April 17, 2013

Ever get to a cool vacation spot and then not know where to go to really enjoy the destination? If that's you, the folks at Dangos hope there are lots of you and all of you lost travelers will use their new mobile app. The downtown Ann Arbor-based start-up is building a suite of apps for visitors to North America's largest travel destinations. Think major parks and tourist locations, such as Mackinac Island, The Henry Ford, and amusement parks. The first location will be focused on Sleeping Bear Dunes and released at the end of May, "just about the time everyone starts to go back there," says Lisa Lloyd, founder & CEO of Dangos. "It's a fun location." Dangos' team of three people have been developing the app for the last 14 months. It recently received five figures' worth of financing from the Michigan Microloan Fund. That money helped with the development of the software to get it to the point of near launch. Source: Lisa Lloyd, founder & CEO of Dangos Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Tree Fort Bikes renews focus on customer service, adds 5 jobs

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Health

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April 17, 2013

Tree Fort Bikes is in an interesting position, where even though its sales volume hasn't spiked, it has found a way to improve its profit margins, allowing the company to hire more staff. Over the last year, the Ypsilanti-based retailer has turned to doing more high-end bicycle business. That change means a lower volume of bikes sold, which allows the firm to focus more on customer service. That has led to better profit margins and a happier customer base. "We're always focused on customer service but now we have the extra time to take of each customer," says Scott Mulder, president of Tree Fort Bikes. It has also allowed Tree Fort Bikes to hire five people over the last year, expanding its staff to 15 people. Among those hires are sales and customer service professionals and a videographer. The videographer has let the company expand its YouTube channel with videos, such as instructional videos on maintaining a bike or overviews of certain brands. That sort of extra is part of the customer-service-oriented plan to broaden the company's bottom line. "We're growing but at the same time we're not Wal-Marting out our service," Mulder says. Source: Scott Mulder, president of Tree Fort Bikes Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Akervall Technologies hires 3, expands product portfolio

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Economic Development

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April 17, 2013

Change was an important word for Akervall Technologies over the last year. The Ann Arbor-based business has rebranded, expanded its product portfolio, added to its staff and begun work on a bigger and better product. The 3-year-old company's first product is a thin-yet-tough mouthguard made of non-compressible, perforated material, and is 30 percent stronger than conventional mouth guards. The creation of Dr. Jan Akervall -- a local ear, nose and throat specialist -- was originally branded as Protech Dent. Akervall Technologies rebranded it as SISU Mouth Guards because the former brand was often confused with other non-related firms, such as a gun company, with similar names. Akervall Technologies also expanded its product portfolio, adding a flavor spray to put on mouth guards called SISU Lyst. It is currently in mint flavor with plans to expand the taste options soon. "Eventually we're going to have to have some more flavors," says Sassa Akervall, COO & president of Akervall Technologies and wife of Dr. Jan Akervall. Akervall Technologies has also hired three people over the last year, expanding its staff to seven employees. It is currently looking for a summer intern or two. One of its recent hires, made possible by a federal Small Business Innovation Resarch grant, was a scientist who is developing a new material for an improved mouthguard set to launch next year. "Testing shows it can take impact 50 percent better than existing mouth guards," Akervall says. "The original can take impact 30 percent better." Source: Sassa Akervall, COO & president of Akervall Technologies Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

New Michigan Microloan Fund director keeps deal flow gushing

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Community Development

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April 17, 2013

There is a new man in charge of the Michigan Microloan Fund Program at Ann Arbor SPARK, and Joe Licavoli's plan is not to fix a seed-funding initiative that isn't broken. The Michigan Microloan Fund Program has been on a tear the last 18 months, servicing a growing number of small businesses looking for a source of start-up capital. Nine companies have received $397,000 in loans in recent months. "We have seen an increase in deal flow going from 2012 to 2013," says Licavoli, manager of capital programs at Ann Arbor SPARK. The Michigan Microloan Fund Program provides small loans (think low five figures) to even smaller start-ups in the pre-seed stage, companies that need some seed capital to grow but aren't mature enough to garner angel investment or bank loans. So far the program has made $3.6 million in subordinated loans to 84 Michigan-based companies since 2009. Licavoli is a veteran of the IT and finance industries, working in business development, operations and investment, at companies such as Ramsoft Systems and Kelly Services. He is focused on keeping the current level of deal flow at the Michigan Microloan Fund Program as it works to establish itself as a permanent funding source for local start-ups. "It's not a mature program," Licavoli says. "It's only been around a couple years." Source: Joe Licavoli, manager of capital programs for Ann Arbor SPARK Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.