Innovation News

Michigan Angel Fund closes 1st investment vehicle at $2M

The recently formed Michigan Angel Fund has closed on its first fund and made its first investment this month. The angel-investment equity fund, which is managed by Ann Arbor SPARK, will provide early stage investments in Michigan-based start-ups. The idea is to help meet the increased need for seed funding from the Great Lakes State's deepening pool of start-ups. "Entrepreneurship has grown dramatically in the last decade in our state," says Skip Simms, managing member of the Michigan Angel Fund and a senior vice president at Ann Arbor SPARK. "The demand for early stage capital has grown with it." The Michigan Angel Fund has 70 members which have contributed $2 million to its first fund. The fund's first investment went to East Lansing-based BioPhotonics Solutions. The Michigan State University spin-out produces technology that automates the process of shaping and compressing ultrashort (femtosecond) laser pulses, ultimately improving their utility. Simms expects the fund to make 8-10 investments each year. The average investment will range in size from $250,000 to $700,000. Source: Skip Simms, managing member of the Michigan Angel Fund Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

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Ann Arbor couple goes entrepreneurial with Stunning Creative

Amanda Ross lost her job so she and her husband, Andy Ross, decided to do something about it and start their own business. Stunning Creative specializes in web development and graphic design. Andy handles the technical aspects while Amanda handles the business end. It has allowed the Ann Arbor couple to turn the business into their full-time jobs. "It has grown by leaps and bounds," Andy says. Most of that growth is from word-of-mouth referrals from its clients, he says. Some of its projects include brochures for Masco's cabinetry division and trade-show presentations for other clients. Stunning Creative is working to continue its organic growth with improved project quality and the slow, steady addition of new clients. Andy hopes to one day soon turn his company's stable of freelancers into the firm's first employees to help spread some of the work around. "It (running the business) consumes a lot more of our time," Andy says. "There are a lot more details to deal with." Source: Andy Ross, owner of Stunning Creative Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

U-M students tackle social entrepreneurship in Detroit

Saying that students at the University of Michigan are motivated often goes without saying. But the professors there know the magic words to get them to go the extra mile. One of those words is Detroit. "Helping Detroit motivated everybody around here," says William Lovejoy, professor of operations & technology at the University of Michigan's Ross School of Business. Lovejoy overseas the "Integrated Product Development" class at the University of Michigan, which is working with the likes of Cass Community Social Services (based in Detroit) to help create social entrepreneurship businesses and get them off the ground. The partnership recently helped launch a mini-business that turns recycled glass into coasters. Lovejoy says that venture is currently selling as much product as it can make. It is also employing eight formerly homeless people. The Cass Community Social Services also has two other such businesses. One turns discarded tires into welcome mats and the other employs developmentally disabled adults who can't read at a document-shredding company. "We know that students are energized by having some sort of social agenda with the project," Lovejoy says. "They see themselves reaching for something farther than just themselves." The class is currently working with Cass Community Social Services to help create more sustainable businesses for the Motor City. Source: William Lovejoy, professor of operations & technology at the University of Michigan's Ross School of Business Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

DIIME’s Hemafuse technology helps stave off blood loss during birth

DIIME is working on technology that could help healthcare professionals in third-world countries save patients' lives by reusing their own blood when receiving care. The start-up is specifically looking at creating technology to save the lives of mothers and children by putting a lid on hemorrhaging of blood during childbirth. "We are focusing on maternal and infant healthcare because that's what we saw the most in Africa," says Gillian Henker, president of DIIME. DIIME got its start as an undergraduate engineering project at the University of Michigan. That project became DIIME and its principal technology, Hemafuse, that helps recycle a patient's blood so it can used again by that patient. "This can be up to half of their blood volume," Henker says. "We're talking liters of blood." The Ypsilanti-based start-up and its three co-founders and two interns recently took third place, worth $5,000, in the Emerging Company category of the Pure Michigan Social Entrepreneurship Challenge. It is putting that money toward the seed round it is raising. The start-up hopes to raise $600,000 to go toward clinical studies. It has already conducted two pre-clinical studies at the University of Michigan and Michigan State University and received positive results. Source: Gillian Henker, president of DIIME Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

The Pairasight Project creates new eyeglasses tech in Tech Brewery

The Pairasight Project isn't interested in enabling people to walk in each others' shoes. It wants them to experience life by looking through their eyes. The Ann Arbor-based start-up which calls the Tech Brewery home is developing eye glasses equipped with a mini computer that can stream the user's perspective in real time to anyone with Internet access. "It enables users to share their world from a first-person point of view in real time with hands-free technology," says Anthony Blanco, general manager of The Pairasight Project. The 3-year-old company is presently developing the foundation for the technology and building out the back end of its software. Blanco expects to bring the first public version to market early next year with a focus on business-to-business commercialization. "This will allow businesses to enhance existing revenue streams and create new ones," Blanco says. The Pairasight Project currently employs six people and a couple of independent contractors. It has hired three people over the last six months, mostly to fill out its executive team. The firm has made it this far thanks to seed funding from its parent company, Pleasant Lake-based Peak Manufacturing. Source: Anthony Blanco, general manager of The Pairasight Project Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Northstar Bank expands into Ann Arbor market with new branch

How attractive is Ann Arbor's economy these days? Attractive enough that banks from Michigan's thumb region are setting up shop here and looking for a piece of the action. Northstar Bank, which is based in Bad Axe, is opening up a loan office and banking branch in Ann Arbor this summer. So far it has resulted in five hires in the area and the full presence is expected to be eight or nine people within the next year. "We feel it's an area that is continuing to grow," says John Wilkins, senior vice president & group manager for Northstar Bank. "It's a good fit because of the employees available and the market." Northstar Bank will offer both private banking services and commercial loans in the area. The bank's first five employees are its loan team. The rest will come from opening up its own bank branch later this year. "We're going to start with a loan-production office," Wilkins says. "It's a good fit because of the employees available and the market." Source: John Wilkins, senior vice president & group manager for Northstar Bank Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Larky grows business in software for discount-seekers
Accio Energy secures patents on aerovoltaic technology

Accio Energy is working to reinvent the way we generate wind energy, and now the start-up has the patents to prove it. The Ann Arbor-based firm, which derives its name from a spell in the Harry Potter books, recently secured two patents for its aerovoltaic technology, which harnesses the electrokinetic energy of the wind without any moving turbine blades. Think of it as harvesting static electricity from the atmosphere. "We are definitely world leaders in this technology," says Jen Baird, CEO of Accio Energy. She adds that her company has quadrupled its technology's energy output in the last year. "We are approaching striking distance of our first economically viable product," Baird adds. To hit that milestone, Accio Energy has made four hires of technical personnel over the last year. The 5-year-old start-up now employs nine people, including a fellow from Venture for America. Accio Energy is now looking at striking a strategic partnership with a larger firm as it works to perfect its technology. "The cost-effectiveness of this technology has become more attractive," Baird says. "We are excited about the potential as well." Source: Jen Baird, CEO of Accio Energy Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Phire Group moves to downtown Ann Arbor, adds 4 to staff

Phire Group, formerly Phire Branding Co, not only has a new name but a new home in downtown Ann Arbor. The full-service marketing company has hired four people in the last year, expanding its staff to 16 employees and an intern. That meant the company had to move into bigger space to accommodate both its growth and its culture. The new office is more open and collaborative. "It's bigger and more conducive to our company and its growth," says Jim Hume, principal of Phire Group. "We wanted a space that is uniquely us." Hume credits his company's expansion to a "growing slowly philosophy" that has served it well over its time. The firm has not only expanded its work with existing clients, but has added a few new ones. Because of that the firm is looking to consolidate its gains this year and is being picky with which clients it brings on. "We have a lot of momentum," Hume says. Source: Jim Hume, principal of Phire Group Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Vaco sees growth in staffing services, hires 6 in Ann Arbor

Vaco moved its Metro Detroit office from Novi to Ann Arbor nearly two years ago. It's a move the staffing company's leaders see as not only paying bigger dividends but presenting bigger options for growth. "It's a better opportunity," says Jerrett Eiler, partner at Vaco. "We thought we could recruit some more of the talent out of the University of Michigan. We want to keep that talent local." Vaco is a national corporation that specializes in providing staffing services for technical and executive professionals. It has 28 offices across the U.S. and continues to add satellite offices. It opened its Metro Detroit office in 2007 and moved it to Ann Arbor in 2011. It has hired four people in sales and recruiting over the last year in Ann Arbor. Its Tree Town staff now numbers 10 people and the company's local leaders expect that number to continue to grow.  "Our demand for technology-related positions and high-end folks has more than doubled in the last two years," says Paul Bishop, managing partner of Vaco. Source: Paul Bishop, managing partner of Vaco and Jerrett Eiler, partner of Vaco Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

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