Innovation News

Biotechnology Business Consultants eyes big biz impact over next 3 years

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January 25, 2012

Had you asked Lisa Kurek her opinion about the potential of growing biotech start-ups in Michigan late last year, she would have told you to ask her again in a month or two. Ask her today, and the managing partner of Biotechnology Business Consultants won't put off the question. She will exude confidence. Kurek points out that the recent reauthorization of the federal Small Business Innovation Research grants brought stability back to the bio-tech space. Add to that the state of Michigan recently reauthorizing spending up to $500,000 annually over three years for bio-tech business consulting, and the woman behind the Ann Arbor-based consultancy is feeling optimistic. "All of my clients breathed a sigh of relief," Kurek says. "It allows us to really ramp up what we were doing. This is a really good time after a lot of upheaval." Biotechnology Business Consultants specializes in helping bio-tech start-ups develop their technologies and grow their business, a process that often takes several years of work and millions of dollars in investment. The company recently added an independent contractor to its staff of five employees. Kurek plans to create two more full-time jobs in the next year as her 22-year-old firm works to build up its new clients. "My goal is not to be a high-growth business but to be a high-impact business," Kurek says. "I want to focus on our new clients we just landed." Source: Lisa Kurek, managing partner of Biotechnology Business Consultants Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

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Amplifinity hires 4 as it adds services, clients, and rebrands

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Economic Development

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January 25, 2012

What was once uRefer is now Amplifinity, and it's growing. The downtown Ann Arbor-based startup landed a multi-million dollar seed capital round last year and has leveraged it to hire four people in the last year. The 5-year-old firm also plans to bring on interns this summer as it continues to build up its team beyond its staff of 15 people. "You'll definitely see us growing," says Molly McFarland, marketing director of Amplifinity. "You'll definitely see us hiring." Amplifinity specializes in referrals and helping companies, such as ESPN and Direct TV, maximize these referral systems. The company rebranded in December to reflect that the referral business has changed to the point where it's not just as simple as one person telling another to use this product. "What we found is that the world of advocacy and building brands is much bigger than that," McFarland says. "There is so much more than that linear referral process." To capitalize on this, Amplifinity has expanded its product and service offerings. For instance, it has added software that allows people to upload video testimonials and other similar services where companies can capitalize on Internet advocacy through channels like social media. Source: Molly McFarland, marketing director of Amplifinity Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Ann Arbor’s re:group adds 3 jobs, expands into healthcare field

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Economic Development

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January 18, 2012

Ann Arbor-based re:group is growing its bottom line and staff by adding more health-care businesses to its customer list. "We really have made a concerted effort to grow our business," says Carey Jernigan, director of business development for re:group. "We expect to grow significantly this year. I hope to double our revenue." The downtown-based firm that specializes in branding and Internet marketing has added the likes of St. Joseph Mercy Health System to its roster. The firm now serves companies in a variety of industries, such as finance, bio-tech, retail and franchising. re:group has hired three people over the last year, expanding its staff to 20 employees, a few independent contractors, and an intern. It is also looking to add an account executive later this year, on top of a few more expected hires. Source: Carey Jernigan, director of business development for re:group Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Michigan Business Challenge Competition attracts 45 teams

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Entrepreneurship

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January 18, 2012

The Michigan Business Challenge, a business plan competition at the University of Michigan, is entering its second of four rounds this week, judging 14 student-led start-ups that span a wide variety of industries. The Michigan Business Challenge attracted 45 teams, comprising 145 students interested in starting their own business. They are competing for $60,000 in cash prizes, including the grand prize of $20,000. "We have a number of web-based businesses," says Anne Perigo, program coordinator for the Zell-Lurie Institute for Entrepreneurial Studies at the University of Michigan's Ross School of Business and the manager of the Michigan Business Challenge. "We have a number of student teams that are looking at medical devices or assistive technologies." The student-led start-ups complete an executive summary for their proposed business. Those that make it to the later rounds of the competition write a marketing and financial overview for their company and finish a complete business plan. These teams also pitch their businesses to a panel of judges comprised of entrepreneurs and investors. The competition will wrap up by Feb 17. "The Michigan Business Challenge is one of several programs the Zell-Lurie Institute and Ross School of Business runs that engages student entrepreneurs across the university," Perigo says. "Our number one goal is to give these students the tools and experience to become successful entrepreneurs." Source: Anne Perigo, program coordinator for the Zell-Lurie Institute for Entrepreneurial Studies at the University of Michigan Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Hyundai’s $15M investment to lead to 50 new jobs

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Innovation News

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January 18, 2012

Hyundai is sinking $15 million into its Hyundai America Technical Center, an investment that promises to create 50 jobs in the Ann Arbor-based facility. "The Ann Arbor area has had the good fortune of being an increasingly bigger cluster of automotive research and development activity among a number of different nameplates," says Paul Krutko, president & CEO of Ann Arbor SPARK. The Ann Arbor area is home to a number research and development centers for automakers, most notably Toyota, which employs more than 1,000 people at two technical centers. Hyundai plans to invest $5 million into its technical center, the Hyundai America Technical Center, in Ann Arbor over the next five years. The Korean automaker is also building a world class Hot/Cold Weather Dynamometer Test facility at its Superior Township location south of Ann Arbor. To help make this investment attractive, the state of Michigan will fund the construction of a new power substation that will power the building. Ann Arbor SPARK also played a key role in making this investment possible. The economic accelerator agency helped Hyundai secure more than $2.5 million in new business development incentives from the state and Superior Township. Source: State of Michigan and Paul Krutko, president & CEO of Ann Arbor SPARK Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Ann Arbor’s Cybernet Systems aims to hire 10-20 this year

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Economic Development

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January 18, 2012

Cybernet Systems watched its revenue numbers climb in 2011 and expects its staffing numbers to rise this year. The Ann Arbor-based tech firm has enjoyed 10 percent revenue growth in 2011 through increasing sales of its Information Assurance Management System (a data protection service) and new contracts with the U.S. armed forces. Cybernet Systems plans to keep going after this business this year and expects to expand its Ann Arbor headquarters staff to 50-60 people by adding 10-20 jobs in 2012. "We're going after these larger types of contracts and more sales," says Charles Cohen, vice president of research & development for Cybernet Systems. "That will tie into more jobs in Michigan." Cybernet Systems has made a large chunk of its sales to the U.S. armed forces. It has created and sold an ammunition sorting machine used by ground troops. It has also developed an enhanced PC tablet computer called the Xplor that helps soldiers with data collection and inventory maintainence. "Our other programs are growing quite nicely," Cohen says. Source: Charles Cohen, vice president of research & development for Cybernet Systems Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

3.7 Designs aims to hire 2-3 as it releases new products

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Economic Development

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January 11, 2012

3.7 Designs has traditionally made its money through hourly billing for its software and website work. These days the Ann Arbor-based firm is moving toward creating more training products and other software programs that provide more reliable revenue streams. "Our focus now is how do we create a product we can maximize our time," says Ross Johnson, CEO of 3.7 Designs. He adds that these sorts of training products and software programs come with steady customer bases that should allow for more growth. 3.7 Designs currently employs four people, including an intern. That team is currently working to develop and release three products over the next year and improve three of its existing products in the same period. Johnson hopes to add another 2-3 people with that new work. "We're focusing on developing something with a steady customer base," Johnson says. Source: Ross Johnson, CEO of 3.7 Designs Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Ann Arbor’s CytoPherx lands $34M in venture capital

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Economic Development

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January 11, 2012

CytoPherx pulled down one of the largest venture capital rounds in recent memory, raising $34 million from the likes of Early Stage Partners, ONSET Ventures and Capital Midwest Fund. David Weaver, chairman & founder of Great Lakes Angels, a group of about a dozen angel investors based in Bloomfield Hills, first reaction to the amount of money raised by CytoPherx was "Wow, that's a lot of money." He said a seed round that big will give the start-up a lot of flexibility to commercialize its product. "That gives them room to breathe," Weaver says. "That's a big deal to have that much money around." The Ann Arbor-based bio-tech start-up plans to use the funds to complete its clinical trials and gain FDA approval for its anti-inflammatory therapy for acute kidney injuries. CytoPherx's therapy can be used to ease the pain of intensive care unit patients with kidney injuries, such as Renal failure, suffering from extreme inflammation. It is also expected to help patients recover and live more full-filling lives. CytoPherx spun out of the University of Michigan in 2007. It has raised several million in seed capital before this latest financing round, including a $5 million raise in 2010. The start-up has its eyes on the more than 2.7 million hospitalized patients in the U.S. diagnosed with acute renal failure. Approximately 160,000 receive Continuous Renal Replacement Therapy, which CytoPherx hopes to make it technology a part of, representing what it claims is a multi-billion dollar potential market. Source: CytoPherx and David Weaver, chairman & founder of Great Lakes Angels Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Great Lakes Angels invests in Ann Arbor’s Blaze Medical Devices

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Economic Development

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January 11, 2012

Blaze Medical Devices recently closed a $250,000 seed capital round that was led by a handful of investors from the Great Lakes Angels Group. The Ann Arbor-based startup is developing a product that focuses on quality control and optimization for the blood banking and transfusion industry. The technology analyzes stored blood to allow clinicians to predict the effectiveness of transfusions by assessing the levels and rates of quality loss during storage for individual units. The investors from Great Lakes Angels moved on investing in Blaze Medical Devices so they could take advantage of Michigan's angel tax credit (it expired at the end of 2011) and because the 5-year-old start-up has also received two patents. That sort of forward progress makes the start-up an attractive company for a future acquisition. "It appears Blaze Medical Devices will need less than $10 million to get to an exit," says David Weaver, chairman & founder of the Bloomfield Hills-based Great Lakes Angels. "That creates the opportunity for less dilution." Weaver adds that Blaze Medical Devices is aiming to be acquired by 2015 or 2016. By then it should have $40 million in sales, proving the products viability but still leaving a high ceiling for future sales. Source: David Weaver, chairman & founder of Great Lakes Angels Writer: Jon Zemke

HealPay scores seed investment for debt collection software

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Economic Development

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January 11, 2012

When HealPay's co-founders, Erick Bzovi and Lancelot Carlson, went looking for seed capital to grow their software startup, the pair quickly realized their best chance for finding funding wasn't necessarily with traditional venture capital firms. The Ann Arbor-based start-up found success with angel investors familiar with the debt collection industry. "We went with people who understand the space," Bzovi says. "It was a lot easier." HealPay is developing web & mobile apps that make collecting money easier. The 18-month-old start-up has raised a six-figure seed capital round Bzovi characterizes as worth "a few hundred thousand dollars." "It provides us a runway for the next 12-18 months," Bzovi says. He adds the money will allow Bzovi and Carlson to focus on the start-up full-time, further develop the software and market it. The pair hope to double their staff of two people over the next year as they start to roll out the software. HealPay plans to open-source its invoice application, called BillerApp, to the software development community early this year. The idea is to disrupt the invoice market with our free invoice application. The company plans to use that free software as a launchpad to draw in customers to its SettlementApp, which is plans to monetize. Source: Erick Bzovi, co-founder of HealPay Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.