Investment

NYC VC Founder sizes up Ann Arbor’s entrepeneurial prospects

By Newsroom

●

February 29, 2012

Roger Ehrenberg, managing partner of IA Ventures, returned to his alma mater to present at the Ann Arbor New Tech Meetup. He offers up his observations and impressions of Ann Arbor's entrepreneurial ecosystem - its virtues and short-comings. Excerpt: "One thing I noticed at Michigan is how developed and entrepreneurial its Office of Technology Transfer is relative to many of its peers. My sense is that because of Ann Arbor’s physical location (a land-locked jewel of innovation), it has had to be incredibly scrappy and experimental in order to achieve its goals. There simply aren’t the deep network effects that exist in San Francisco/Silicon Valley, New York/Silicon Alley or Boston/Cambridge. And while it is still early in the game, they have done a great job cultivating relationships across the University and working closely with the departments to get technology successfully spun-out from the School (kudos to Wes Huffstutter for greasing the wheels of cross-institutional progress). But the fact that “tech transfer” at Michigan doesn’t conjure up thoughts of the usual hard-to-work-with, inflexible bureaucracy is a tribute to what they’ve accomplished in the past decade. Other schools have much to learn from Michigan’s progress." Read the rest here.

Latest in Investment

Coherix hires 15 as it lines up growth capital investors

By Newsroom

●

Economic Development

●

February 22, 2012

Coherix is hiring new team members and raising tens of millions of dollars in growth capital to help it reach the next level. The Ann Arbor-based firm creates high-speed, high-definition 3D visualization and inspection software designed to improve the management of manufacturing processes. Its high-tech optical-based measurement and inspection products help find efficiencies in the automotive and semiconductor industries. The seven-year-old start-up now employs about 50 team members and a few interns after adding 15 people over the last year. The company has also been raising a round of growth capital to help fund its latest expansion, most of which appears to take place overseas. "Over 70 percent of our advanced manufacturing work goes to Asia," says Dwight Carlson, chairman & CEO of Coherix. "It will only increase over time. That tells you a lot right there." Most of the capital Coherix has raised comes from Asian funders focused on advanced manufacturing. Carlson says most of his experience with U.S. investors reveals they are more digital-tech oriented while manufacturing is put on the back burner. Does that mean Ann Arbor is in danger of losing Coherix? Carlson puts it this way: "Coherix China will be much bigger than Coherix Ann Arbor." "Asia is interested in manufacturing," Carlson says. "From my perspective America is not. How are you going to be globally competitive if you don't?" Source: Dwight Carlson, chairman & CEO of Coherix Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Estrakon hires 8 as it aims to close $750,000 seed round

By Newsroom

●

Economic Development

●

February 8, 2012

Estrakon is in the midst of two things these days: wrapping up a six-figure seed capital round and a job-creation spurt. The Ann Arbor-based LED sign manufacturer recently received a $250,000 investment from the Michigan Pre-Seed Capital Fund. So far it has raised $600,000 in this seed capital round, and hopes to close out the round when it gets to $750,000 by the end of the month. The investment is coming on the heels of some rapid growth in the nine-year-old firm's revenues and staff. "Our revenues have tripled," says Philip Ochtman, president of Estrakon. "The number of staff has gone up substantially. Last year we had eight people full-time and today we have 15. We expect to have 30-35 next year." The company has a handful of interns today and is looking to bring on another 1-2 interns this summer, he says. The company is also looking to add independent sales people to its team. Estrakon develops, manufactures and sells LED edge-lit signs for businesses from its base on the south side of Ann Arbor. That energy-efficient technology uses 80-percent less energy than traditional light sources and contains no hazardous materials. It's also a technology that ages well. "The LED space is growing very quickly," Ochtman says. "People seem to love the products we're putting out." Source: Philip Ochtman, president of Estrakon Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Ypsilanti’s ISSYS lands $1.5M NIH grant for pre-clinical studies

By Newsroom

●

Community Development

●

February 8, 2012

Integrated Sensing Systems has scored a $1.5 million grant from the National Institute of Health to help the company finish the pre-clinical work on its new technology, which wirelessly monitors the heart. "It's the last stage of a very long process before you get to human trials," says Nader Najafi, president & CEO of Integrated Sensing Systems. The Ypsilanti-based firm, commonly known as ISSYS, designs and develops microelectromechanical systems for medical and scientific sensing applications. Its latest piece of technology is an implant for the heart that allows medical professionals to wirelessly monitor the heart. "So you can monitor the heart on demand even with home monitoring," Najafi says. ISSYS, founded in 1995, has been working on this technology for 12 years. It has a staff of 30 and plans to add another 2-3 jobs this year. It will continue clinical trials of the technology for the next two years. After that, Najafi hopes to begin work on human trials, while also receiving FDA approval so it can begin sales. Source: Nader Najafi, president & CEO of Integrated Sensing Systems Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Plymouth Venture Partners seeks startup for executive in residence

By Newsroom

●

Economic Development

●

February 8, 2012

Plymouth Venture Partners is looking for a few good startups to invest in, but the Ann Arbor venture capital firm needs one in particular to take advantage of its executive in residence program. Plymouth Venture Partners is specifically looking to lend Kevin Terrasi's talents to a Michigan-based company. Terrasi, a serial entrepreneur who has helped lead startups to profitable exits, is the executive for the Michigan Venture Capital Association's executive in residence program. The program is geared toward helping retain executive talent in the Great Lakes State. "We're looking for a Michigan-based company," Terrasi says. "One that is close to commercialization and has existing revenue." Terrasi was a senior executive and part owner at Pump Engineering, a water supply company. He helped guide it to an acquisition in 2009. He is now an investor in Plymouth Venture Partners' recently closed investment fund worth $41 million. Plymouth Venture Partners plans to insert Terrasi into the executive team of one of its portfolio companies later this year. The venture capital firm is evaluating potential startups and hopes to have a deal done and Terrasi in place by this spring at the earliest. "This is based on a 12-month cycle," Terrasi says. "We're hoping to have this done within the next 12 months." For information on participating Plymouth Venture Partners executive in residence program, click here. Source: Kevin Terrasi, executive in residence for Plymouth Venture Partners Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

A2Awesome makes first $1,000 grant to bike-powered veggie grow rack

By Newsroom

●

Community Development

●

February 1, 2012

A2Awesome, the Ann Arbor chapter of the Boston-based Awesome Foundation, has awarded its first grant worth $1,000. A2Awesome gave the thousand dollars cash in a brown paper bag to Ann Arbor-resident Nathan Ayers. He will use the money to build two bike-powered vegetable grow racks that will be used in a science class he teaches in Ann Arbor and Detroit. The idea is to create a closed-loop system to demonstrate the principles of permaculture -- a design and engineering philosophy based on ecology, which has as its objective the creation of sustainable food, energy and community infrastructure systems. Ayers' proposal was the winner of 20 applications submitted for the first round of funding. A2Awesome aims to provide streamlined seed funding for creative projects that will bring surprise, delight and joy to the Ann Arbor-Ypsilanti community. A2Awesome plans to make one $1,000 grant a month for the foreseeable future. "We anticipate the applications to go way up," says Mark Maynard, dean of awesome for A2Awesome. "With this award we have set the tone for what we want to do." While the Ayers bicycle-grow project is creative and helps push the envelope, A2Awesome isn't limiting itself to those types of projects. It is open to more traditional ideas as long as they result in the same thing, awesomeness. "We're open to everything," Maynard says. "The project just needs to be awesome." For more information, click here. (Full disclosure: Jeff Meyers, Concentrate's managing editor, is on the board of A2Awesome) Source: Mark Maynard, dean of awesome for A2Awesome Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Ix Innovations scores investment from Michigan Pre-Seed Capital Fund

By Newsroom

●

Economic Development

●

February 1, 2012

Ix Innovations has landed an unspecified investment from the Michigan Pre-Seed Capital Fund as part of a larger seed round it raised over the last year. The new cash infusion has allowed the Tech Brewery-based startup to bolster its staff of three people.. "Prior to that we had one software engineer on a 1099 basis," says Ian Dailey, CEO of Ix Innovations. "After that we were able to hire that person and bring on two other people." Ix Innovations is commercializing the PocketPico, a portable, USB-powered picoammeter that can be used as a stand-alone instrument or connected to a PC. Dailey expects to get the PocketPico into user hands later this year, allowing it to ramp up production by the end of 2012. Ix Innovations is also working on a couple more products that would complement the PocketPico. Dailey hopes the further development of those products will grow its bottom line and the size of the company. "More hands on deck," Dailey says. "That is where we would like to be (by the end of the year)." Source: Ian Dailey, CEO of Ix Innovations Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Got Talent? A Conversation with Kurt Riegger

By Jon Zemke

●

General

●

January 25, 2012

When it comes to building a vibrant entrepreneurial ecosystem, Kurt Riegger, COO of OcuSciences, argues that there's no lack of ideas or innovations in Ann Arbor. Talent with enough experience to execute on those ideas may be another question. Riegger has launched, funded, and advised 26 companies, and chats with Concentrate about what our community needs to succeed.

U-M students’ waste-to-energy startup looking to raise $2M

By Newsroom

●

Economic Development

●

January 25, 2012

A quartet of University of Michigan students came up with an idea for a bioreactor that could use methane to heat water. After winning several business plan competitions, the founders of ReGenerate are finally being asked to turn their concept into a real-world technology. Excerpt: "Having proven adept at winning business plan competitions, it's time for waste-to-energy company ReGenerate Solutions LLC to win some actual customers. The Ann Arbor-based startup, founded by four University of Michigan students, is in the midst of raising a seed round of up to $2 million to move it from proof-of-concept stage to commercialization." Read the rest of the story here.

Startup Michigan set to launch from ACE competition in Ann Arbor

By Newsroom

●

Economic Development

●

January 25, 2012

Startup Michigan, the Great Lakes State's node for the Startup America entrepreneur network, is set to launch from the Annual Collaboration for Entrepreneurs event next week. The Startup America Partnership is a national effort dedicated to helping startups grow by connecting entrepreneurs, investors and more than $1 billion in resources across the U.S. Regional affiliate Startup Michigan will launch with 10 other states next week. "It's the first time on a national level that there is a concerted effort on a national level to communication in the entrepreneurship community," says Diane Durance, executive director of the Great Lakes Entrepreneur's Quest, which oversees this year's Annual Collaboration for Entrepreneurs, or ACE 12. She went on to compare Startup America's potential impact to the interstate highway system and how it connects businesses and people from states across the country. ACE 12, which will be held at Ann Arbor's Skyline High School on Tuesday, is an annual event that revolves around entrepreneurship in Michigan. The event features opportunities for entrepreneurial education, networking, funding and mentoring resources. This year's attendance is expected to exceed 1,000 participants. "We have a great entrepreneurial infrastructure," Durance says. "Other states don't have this kind of infrastructure." Source: Diane Durance, executive director of the Great Lakes Entrepreneur's Quest Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.