The winner of the student portion of the Accelerate Michigan Innovation Competition is now a venture-backed start-up, landing six figures in seed capital. Covaron Advanced Materials (formerly Kymeira) scored $300,000 in a seed capital round, which was led by the Mercury Fund. The First Step Fund, Huron River Ventures and Two Seven Ventures are also participating in the round. The Ann Arbor-based firm is developing a new chemistry for ceramics, which brings the benefits of existing advanced ceramics to new parts and markets. "It's going to help further the development of the technology and the intellectual property," says Dave Hatfield, CEO of Covaron Advanced Materials. "It will also generate the initial sales in the mold and pattern market." The 1-year-old business employs four people and a few independent contractors. The team consists of founder Vince Alessi, co-founders Cam Smith and Reed Shick, along with Hatfield. That team took home first place in the student division of last fall's Accelerate Michigan Innovation Competition, a prize worth $25,000. That prize usually goes to raw start-ups but Hatfield believes Covaron Advanced Materials' technology is far enough along that it can begin making sales in the molds and patterns market (think durable goods like those used by the automotive sector) this year. An expansion into the oil and gas industry and a Series A round of funding could also be in line next year. "We're hoping to commercialize this as soon as possible," Hatfield says. Source: Dave Hatfield, CEO of Covaron Advanced Materials Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.
