Ann Arbor

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

By Newsroom

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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.

Ann Arbor 6th gayest city in U.S.?

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Health

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January 11, 2012

The Advocate ranks Ann Arbor as the 6th gayest city in America. Obviously something is seriously wrong with their survey. I'd be surprised if we were even in the top 20. Grand Rapids was listed as 10th. Haven't they ever heard of Ferndale? And Inkster isn't even in the same county. Of course Salt Lake City was ranked first, so maybe they've decided to become more like The Onion. Excerpt: "You don’t have to be big to have it going on, as this sixth largest city in Michigan does. The area has one of the few clubs in Michigan catering to dykes: Stiletto’s (technically in nearby Inkster) draws in every lesbian in Detroit. But talk about a taste for drama! Just ask U. of M.’s first out student body prez, Chris Armstrong, the target of a smear campaign by nutso assistant attorney general Andrew Shirvell." Read the rest of the story here.

Californian vacations in Ann Arbor. In the winter. Really.

By Newsroom

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General

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January 11, 2012

It's Winter Break and you're going to school in California and you could pick anywhere in the U.S. to vacation, where do you go? Chances are Ann Arbor isn't going to be high on your list. But in a case of reverse migration that's just what this San Franciscan did. And she wrote about it. Excerpt: "This city is centered around the University of Michigan, and epitomizes the comforting quaintness of the Midwest. Inviting coffee shops like Espresso Royale, The Lab, and Comet Coffee color every street with the opportunity to warm up, study up, and get that much-needed caffeine fix (college students, you hear what I’m talking about!). Proof of how adorable these shops are can be found in the fact that I consumed more warm caffeinated beverages the past 3 days than I have in the past 3 months… although that could also be proof of how f-ing cold I was. Also important to note is that worn down San Francisco-bought combat boots are not very waterproof." Read the rest here.

Seva Opens In Motown

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Arts & Culture

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January 11, 2012

Motown is going veggie. Or, at least, it's adding a little bit o' Ann Arbor vegetarian cuisine to its restaurant scene. Seva expands into Detroit. Excerpt: "Well-timed for everyone's New Year's resolutions to eat healthier, the Detroit edition of Ann Arbor's popular vegetarian restaurant Seva has opened in Midtown. Owners Jeff and Maren Jackson hoped the serene, airy space at 66 E. Forest -- behind the N'Namdi contemporary art gallery -- would be ready last summer or fall. But inspection delays slowed them down, and they were at last able to do a soft opening Dec. 17." Read the rest here.

Downtown geothermal project: Harbinger of greener things to come?

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Economic Development

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January 11, 2012

Even with its big upfront costs, more and more businesses and municipalities are seeing the economic and sustainable virtues of going geothermal. Could the system currently being installed in the Marketplace Building signal a shift in downtown building practices? Excerpt: "The geothermal system at the Marketplace Building starts underground in a lot north of Argiero's Restaurant, running under the brick pavement of Detroit Street to reach the building. Aspects like crossing a public right-of-way with the underground pipes, liability and ongoing maintenance of the pipes under roadways concerned city staff as they researched and finalized the agreements, Harshe said. The Downtown Development Authority, which funded part of the effort through its Energy Program, also played a role. “I’m intrigued about its potential to make downtown even more of a sustainable center,” said Susan Pollay, executive director of the DDA." Read the rest of the story here.

Ann Arbor’s CytoPherx raises largest VC in state since 2009

By Newsroom

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Economic Development

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January 11, 2012

Want to read a big number? $34 million is a pretty big number, isn't it? That's how much CytoPhrex has raised in venture capital, which pretty much sets the record for 2011. And 2010 for that matter. Excerpt: "Ann Arbor-based CytoPherx Inc., a clinical-stage medical device company initially focused on acute kidney failure, announced today that it has raised $34 million in venture capital, the largest round of such funding for a state company since Ann Arbor-based Lycera Corp. raised $36 million in April 2009." Read the rest here.