Government

Ann Arbor SPARK scores $10.8M for investments and programs

By Newsroom

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August 3, 2011

Ann Arbor SPARK plans to spread $10.8 million it received from the state last week toward replenishing the Michigan Pre-Seed Capital Fund, funding the Accelerate Michigan Innovation Competition and starting the Michigan Angel Fund.The Michigan Economic Development Corp awarded the money from the state's 21st Century Jobs Fund. Most of it, $9.17 million, will go toward reloading the four-year-old Michigan Pre-Seed Capital Fund. The $14 million evergreen fund has invested $13.4 million in local pre-seed stage start-ups to help them finish larger fundraising rounds."If the trends of the last four years stay in place this fund will last us two years, possibly a little longer," says Skip Simms, senior vice president of Ann Arbor SPARK and administrator of the Michigan Pre-Seed Capital Fund.Approximately $1.05 million will go toward funding the second annual Accelerate Michigan Innovation Competition. The Business Accelerator Network of Southeast Michigan's business-plan competition offers more than $1 million in prizes for the cream of the crop of Michigan-based start-ups and companies interested in moving to the Great Lakes State. The funds will cover the awards and logistics of the event, which is managed by Ann Arbor SPARK.The remaining $600,000 will pay for the administrative costs of the Michigan Angel Fund, a new angel investor group managed by Ann Arbor SPARK. The new $5 million investment fund from which everything but the administrative costs will come from high-net-worth individuals, will be focused on investing in Michigan-based, early stage start-ups. The investments are intended to help bridge the gap between turning research into commercialized technology."We're raising funds for it now," Simms says. "We hope to initiate it as soon as possible." He adds that there is no definitive timeline for launching the fund.Source: Skip Simms, senior vice president of Ann Arbor SPARKWriter: Jon ZemkeRead more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

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Ann Arbor firms snag nearly $1M in pre-seed investments

By Newsroom

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Community Development

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July 27, 2011

The Michigan Pre-Seed Capital Fund recently invested $1.8 million into start-ups based in the Great Lakes State, and half of them went to small businesses that call Ann Arbor home.Among the local firms that have scored pre-seed funding are wind-turbine designer ArborWind, digital medical records consultancy Practical EHR Solutions, retinal gene therapy start-up RetroSense Therapeutics, and software firm Reveal Design Automation. Each of those companies pulled in six-figures' worth of funding, on top of several other high-dollar private investments.The Michigan Pre-Seed Capital Fund helps Michigan-based start-ups raise capital so they can hit that final bridge before pushing forward a project, such as a clinical trial or marketing effort. So far the five-year-old fund has invested $13.4 million in 61 start-ups, with much of that money helping entrepreneurs finish a fundraising round."In Michigan that has been very difficult money for entrepreneurs to raise," says Skip Simms, senior vice president at Ann Arbor SPARK and administrator of the Michigan Pre-Seed Capital Fund. "We created this program so we could co-invest."The state recently issued a request for proposals for the next Michigan Pre-Seed Capital Fund, which Simms and his co-workers at Ann Arbor SPARK hope to run again. A decision could come as soon as this week."We hope to have more funds put into the Michigan Pre-Seed Capital Fund very soon, so we can continue it for a few more years," Simms says.Source: Skip Simms, senior vice president at Ann Arbor SPARKWriter: Jon ZemkeRead more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Ann Arbor Speaker Event – How Ann Arbor Runs

By Concentrate Staff

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General

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June 28, 2011

City governments come in all styles and flavors. Local filmmaker and urbanist Kirk Westphal has made a short film examining what makes for an effective system and we'll be showing it at TOMORROW'S Speaker Event. We'll also be discussing how informed citizen involvement is vital to the success of any community. Ferndale City Council member Melanie Piana will be joining the event to discuss her experiences getting elected and serving in local government. Sign up now!

Ann Arbor’s Merit Network looks to complete statewide fiberoptics network

By Newsroom

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Community Development

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June 22, 2011

Merit Network, an Ann Arbor-based nonprofit owned by the state's public universities, is further expanding into the upper peninsula of Michigan as it continues building one of the largest fiber optic networks in the country.The 2,297-mile fiber-optic line will run across the state of Michigan and bring access to technology to more people than ever. The BTOP (Broadband Technology Opportunities Program) project is a partnership between Merit, its subcontractors, and the federal government, which has awarded $102 million to Merit to build the network. Merit and its partners put in a 20-percent match to design and lay the network, which will serve 52 counties in the lower and upper peninsulas."The economic development opportunity that this infrastructure brings to the area is significant," says Elwood Downing, vice president of member relations, communications and services at Merit, in a statement.Merit currently provides connectivity to universities and school districts in the U.P. Its decision to open an office there and appoint a member relations manager is aimed at making the UP and Michigan an appealing place to live and work.Merit Network owns and operates America's longest-running regional research and education system and provides networking services to universities, college, school districts, libraries, state government, and health care and nonprofit organizations.Sources: Patty Giorgio, spokesperson, Merit NetworkWriter: Kim North Shine

Clean Energy Coalition moves to new HQ, to add up to 8 jobs

By Newsroom

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Community Development

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May 25, 2011

The Clean Energy Coalition is adding more staff members and space to house them, moving to a bigger office in Ann Arbor just north of downtown."We're continually expanding," says Sean Reed, executive director of the Clean Energy Coalition. "We're in the process of hiring three people right now. We have the potential for another 4-8 hires later this year as we continue to grow."That brings the sustainability-oriented non-profit's staff to 14 employees, four interns, and two independent contractors. That growth also prompted the organization to move into its fourth office in six years. It had been occupying two spaces (1,000 and 1,500 square feet, respectively) in Ypsilanti's Depot Town for the last few years. Today, it calls 6,000 square feet on the near north side of Ann Arbor home."This allows us to bring the staffs of the offices together under one roof," Reed says. He adds that it also gives adequate room for growth for the Clean Energy Coalition, which is debuting its new website this week.The Clean Energy Coalition has landed several million dollars in grant funding in recent years, including $15 million from the federal stimulus package. That money is part of Michigan's $31 million Green Fleets project, which will integrate more alternative fuels and advanced fuel-efficient technology (i.e. bio-diesel) into municipal vehicle fleets. The non-profit is also working to help make local government buildings more energy efficient.Source: Sean Reed, executive director of the Clean Energy CoalitionWriter: Jon ZemkeRead more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Venture Michigan Fund II sinks cash into Ann Arbor’s MK Capital

By Newsroom

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Community Development

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May 4, 2011

The Venture Michigan Fund II, a fund of venture capital funds, has made its first investment, infusing an undisclosed amount of capital into MK Capital.MK Capital is a Chicago-based firm with offices in Los Angeles and Ann Arbor. It specializes in start-ups in the digital media, software, and education industries. The firm plans to invest in Michigan-based companies."We have already made six investments in the fund," says Mark Koulogeorge, managing partner with MK Capital. "One of them, Outside Hub Media, is based in Southfield. We're looking at more opportunities as we speak."The $120 million Venture Michigan Fund II is supported by the Michigan 21st Century Jobs Fund. Its focus is on venture capital firms targeting Michigan companies seeking seed and early-stage capital. Those start-ups are in the advanced manufacturing, health care, life sciences, IT, alternative energy, homeland security, and defense sectors.MK Capital is raising a fund worth in excess of $100 million. Koulogeorge expects it will make 13-15 investments in the digital media and software sectors, mostly in the Midwest.Source: Mark Koulogeorge, managing partner with MK CapitalWriter: Jon ZemkeRead more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Huron River Ventures $7.5M VC fund to invest in clean tech sector

By Newsroom

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Community Development

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April 27, 2011

Huron River Ventures has closed its first fund, a $7.5 million vehicle that will make investments in clean-tech start-ups, primarily in Michigan."We have a couple of opportunities that we are excited about that are at advanced stages," says Ryan Waddington, managing director of Huron River Ventures. "We have a few that are cued up and we see more everyday."Waddington started the early stage investment firm last August with Tim Streit. The co-founders are longtime Michiganders who recently returned to the Great Lakes State from careers in the financial industry (finance and private equity) in New York City and Chicago. Huron River Ventures will specialize in three sectors of the clean-tech industry, including clean energy (everything from alternative energy to energy efficiency), advanced materials, and advanced automotive and manufacturing.About 80 percent of the VC firm's first fund comes from the state of Michigan, with the remainder coming mainly from private in-state investors. Source: Ryan Waddington, managing director of Huron River VenturesWriter: Jon ZemkeRead more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Wolverine Energy Solutions & Technology receives federal funding, triples staff

By Newsroom

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Community Development

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April 20, 2011

Wolverine Energy Solutions & Technology is a green energy company that doesn't dabble in things like wind, solar or biofuels. The University of Michigan spin-out is developing an organic material for super capacitors that will make them more energy efficient and bio-degradable."The material allows it to handle really intense energy, and it can do it over a long period of time," says Stephanie Goodson, president of Wolverine Energy Solutions & Technology. She is also the wife of Theodore Goodson III, a U-M chemistry professor who first discovered the technology.Wolverine Energy Solutions & Technology has already developed a prototype and is using funding from federal agencies, such as the U.S. Dept of Defense, to further development of the organic material in real-life scenarios. This has allowed the company to expand its staff from two people from its inception in 2009 to six today."We'd like to see our employee number double over the next year, and have a good business plan to market our technology to a major corporation," Goodson says.Source: Stephanie Goodson, president of Wolverine Energy Solutions & TechnologyWriter: Jon ZemkeRead more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Pixel Velocity has triple digit growth on strength of gov’t contracts, expects to add positions

By Newsroom

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Community Development

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April 20, 2011

All this talk of federal budget balancing and project slashing hasn't scared Pixel Velocity or its executive team. The Ann Arbor-based firm continues to grow at a triple-digit rate thanks mainly to federal and local government contracts for its digital image processing products.The 10-year-old company clocked a 400 percent revenue increase over the last year with contracts for its products at Wayne County Port Authority and Midway Airport in Chicago. "It's better than ever in regards to federal sales," says Eric Sieczka, president and CEO of Pixel Velocity. "This is a significant year for us. We're doing some significant roll-outs. We see a pretty prosperous horizon."Pixel Velocity creates high-speed digital image processing products for the surveillance and medical imaging markets. One of its biggest markets is installing this technology at points of entry throughout the country, such as ports, airports, and border crossings. Sieczka also expects his company to expand into the petrochemical (oil and gas) market.He expects to add about two new hires to the company's staff of 15 people later this year, depending on Velocity's business.Source: Eric Sieczka, president and CEO of Pixel Velocity Writer: Jon ZemkeRead more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

The Michigan Department Of Zingerman’s?

By Newsroom

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Community Development

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April 13, 2011

"Bureaucrat" and "customer service" are two words that seem incompatible and contradictory. Nevertheless, Governor Rick Snyder thinks Lansing employees could learn a thing or two from Zingerman's "service culture" training. Does that mean license renewal will include a complimentary bagel with cream cheese? One can dream, right? Excerpt: "The state of Michigan wants to raise its service game, and it is turning to entrepreneurial businesses for help. Zingerman's, an Ann Arbor–based deli and food company at which doing the right thing by customers is bred in the bone, has stepped up to train government employees in service culture. Michigan's new governor, Rick Snyder, posed the idea to Paul Saginaw, a co-founder of Zingerman's, when the two crossed paths at an awards dinner last winter. "I said, 'Are you serious?' " recalls Saginaw. "But I thought, Wouldn't it be great if the orientation of public servants was, My job is to be your resource. You are paying my salary. How do I help you get your business open?"" Read the rest of the story here. And a local follow up here.