One excels at style. The other, substance. But when it comes to nurturing an entrepreneurial ecosystem, both matter. Jon Zemke attends Silicon Valley's quarterly Founder Showcase and our own annual business plan competition, Accelerate Michigan, and finds a clash of both cultures and community.
Watching an established business like LLamasoft pitch amongst a room full of early stage start-ups is enough to make insiders take notice. To see its executive team that has traditionally disdained the venture capital chase pitch zealously for money from venture capitalists definitely turned some heads. "Things that made you successful to a point can prevent you from reaching the next level sometimes," says Don Hicks, who co-founded LLamasoft with Toby Brzoznowski. As recently as last summer, Hicks and Brzoznowski defiantly bragged about not taking any investment capital to grow LLamasoft into a $10 million firm. In fact, Hicks half-jokingly called the VC chase a cult. That was then. Today LLamasoft, a combination software and logistics firm, is working to raise $3 million in seed capital to scale up its business. The firm hopes to continue its torrential growth streak as of late; revenues rose by 80 percent this year and 100 percent last year. It is now aiming to up sales by 50 percent in 2012 as it works to expand its staff of 80 people, mainly based in downtown Ann Arbor. Hicks believes he and Brzoznowski can keep growing LLamasoft as they currently have by reinvesting their profits into growing the firm. However, that means cash flow can sometimes come in spurts, which makes a 100-person firm much more vulnerable to sharp growing pains than a 10-person start-up. "Structurally you have to have working capital if you want to keep growing at this rate," Hicks says. LLamasoft took first place in the services category at this year's Accelerate Michigan competition, along with a $25,000 check. Hicks expects to lock down the remaining $2.975 million in seed capital by the end of this year. Source: Don Hicks, co-founder of LLamasoft Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.
Last year it was Ann Arbor, Ann Arbor, Ann Arbor at the inaugural Accelerate Michigan Innovation Competition. This year is was Ypsilanti's turn to take center stage. Ypsilanti not only successfully hosted the $1 million business plan competition, but firms with deep ties to the little college that could took the top two prizes worth a combined $650,000 in seed capital. Life sciences start-up DeNovo Sciences took first place while green tech firm Fusion Coolant Systems landed in second. "As innovators you are doing exactly what our country needs to lead us back to greatness," said Peter Perez, deputy assistant secretary for manufacturing for the U.S. Department of Commerce, during his address at Accelerate Michigan's awards gala. Last year when start-ups based in Ann Arbor or with roots in Tree Town practically ran away with every award, Priya Gogoi worked the crowd for Denovo Sciences, her own start-up she and some friends were trying to get off the ground in Ypsilanti. The start-ups is developing a method of transmitting blood samples from a remote region to a clinical laboratory via cell phone technology as an early warning system for cancer. For the second Accelerate Michigan competition, the three-person team (which recently brought HandyLab co-founder Kalyan Handique on as CEO and now occupies space at the Michigan Life Sciences & Innovation Center in Plymouth) stood on stage with a $500,000 check for first prize. Not bad for a trio that had to volunteer at the first Accelerate Michigan to get in. Also sharing the stage and limelight is Ypsilanti-based Fusion Coolant Systems. The green tech start-up is developing a cutting fluid for industrial use that is both more energy efficient and environmentally friendly. It took home second place and a $150,000 check. Source: Peter Perez, deputy assistant secretary for manufacturing, U.S. Department of Commerce Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.
Coming off the heels of a successful fundraiser last month, the Ann Arbor Skatepark is now over a critical hill. The latest $18,000 raised gets the nonprofit Friends of the Ann Arbor Skatepark to the six-figure mark in total funding thus far – and the next stage. "We reached a point where it's a milestone for us because it allows us to put forward a [request for proposal] for a design of the project," says Scott Rosencrans, project liasion for the Ann Arbor Skatepark. The Washtenaw County Parks and Recreation Commission has pledged $400,000 towards the project if the Friends of the Ann Arbor Skatepark can match that amount. The nonprofit partnered with the city of Ann Arbor on an application for a $300,000 grant from the Michigan Natural Resources Trust Fund, the outcome of which should be known sometime in December, Rosencrans says. The projected cost to build the all-concrete skatepark is between $800,000 and $900,000. "What our nonprofit brought to the table was that it would also include a maintenance endowment to cover all of the maintenance costs of the project so that taxpayers of Ann Arbor wouldn't be on the hook for that," he says. Ten percent of every donation goes into that fund, which at this point already has about two years' worth of money for upkeep. The city of Ann Arbor has donated land for the facility in the northwest corner of Veterans Memorial Park. It will be located next to a hardball field and in a grove of mature trees, to be left intact. There are between 5-7,000 skateboarders in Washtenaw County, says Rosencrans. Every year, 20 million kids get into sports in the U.S., but 70 percent drop out by the age of 13. However, Rosencrans says, "Kids will stick with skateboarding into adulthood. It's just that they're looking for something to do that doesn't have a numeric value attached to their performance. They just want to be creative and express." Source: Scott Rosencrans, project liasion for the Ann Arbor Skatepark Writer: Tanya Muzumdar
Welcome to geek heaven. Vault Of Midnight is pretty much the coolest store in Ann Arbor. Games, ugly dolls, cool figurines, books you never heard of, and, yes, lots and lots of comics. There's enough eye candy here to make your head explode. Check it out.
North American robot companies saw one of their best years ever in 2010, and 2011 is expected to also be a winner. Or so says the Ann Arbor-based Robotic Industries Association. Bet you didn't know there was a robotic association here. No information was available about their relationship with Skynet. Excerpt: "A total of 13,616 robots, valued at $848.5 million, were ordered in the first nine months by companies in North America. When companies outside of North America are included, the totals are 15,683 robots, valued at $968 million. RIA said automakers and their suppliers are the biggest customers, accounting for 53 percent of all new orders. Sales to the automotive segment rose 56 percent through September." Want to read the rest of the story? We've got one word for you: PLASTICS
When it comes to our veterans, some colleges go out of their way to embrace those who have served our country. EMU, Concordia, Washtenaw Community College, Thomas Cooley, and the Ross School at U-M are among those singled out by G.I. Jobs. Criteria for making the list included efforts to recruit and retain military and veteran students, financial commitment to veterans and academic accreditation. Check out the list here.
In 2003, Ann Arbor residents voted to support the Greenbelt, creating a patchwork of protected area parks and farmland. It was a pretty progressive policy for Michigan, but is it delivering what was expected? From securing local food sources to curbing sprawl, Concentrate reviews the program's goals, impacts, and consequences.
RetroSense Therapeutics has raised about $1 million in seed funding over the last year, allowing it to build up its business in Ann Arbor. "It has been instrumental in getting some of our operations off the ground, namely manufacturing of our product," says Sean Ainsworth, CEO of RetroSense Therapeutics. "We have also built out our team a little bit." RetroSense Therapeutics is developing gene therapy for vision restoration with technology licensed from Wayne State University in Detroit. The two-year-old firm is extracting a new gene from blue-green algae that helps make cells more photo sensitive. The idea is to apply this gene to human cells to regenerate photo receptors in the retina. The start-up has also built out its team to three employees and a few independent contractors. It plans to add a chief medical officer and a finance position over the next year as it works to complete its pre-clinical trial and prepare for its clinical trial. It has also recently made the semi-finals of the Accelerate Michigan Innovation Competition, where it hopes to take home the $500,000 grand prize and some leads for more seed funding and strategic partnerships. "It's just good exposure," Ainsworth says. "Not just to the venture capital community but for the local entrepreneurial community as well." Source: Sean Ainsworth, CEO of RetroSense Therapeutics Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.
The Brides Project is coming to downtown Ann Arbor, straight from Canada. The non-profit sells donated used wedding dresses from across the country at a retail shop in downtown Ann Arbor. All proceeds go toward the Cancer Support Group of Ann Arbor. The concept is based on a similar project that is up and running in Toronto. "That's the way non-profits need to be thinking these days," says Monique Sluymers, co-chair of The Brides Project. "They need a business to help fund their ventures." So far The Brides Project has taken in 189 dresses and has sold a little more than half a dozen since opening in September. The social entrepreneurship venture is ahead of its initial sales goal, about one per month, and expects to be in full swing by next spring. "I'd like this to be a comfortable project," Sluymers says. "I just want this to be a steady source of revenue for the cancer support society." Source: Monique Sluymers, co-chair of The Brides Project Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.
Our Partners
We want to know what's on your mind.
