Investment

University of Michigan’s Stephen Forrest: ‘We’ve got to commit to something’

By Newsroom

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August 26, 2009

Ann Arbor's newest tech chief, Stephen Forrest, is making the case for more incentives to lure more new economy businesses to Michigan.Excerpt:Stephen Forrest doesn’t mind picking winners.In fact, he thinks it’s imperative.Forrest, the University of Michigan’s vice president for research and chairman of Ann Arbor SPARK, is a fervent proponent of leveraging university technology to reconstruct Michigan’s economy on the backbone of alternative energy and other technologies. Michigan’s attraction of $1.3 billion in battery grants from the U.S. Department of Energy in July marked a key step in the state’s economic revival plan, he said. Read the rest of the story here.

Latest in Investment

Ann Arbor’s venture capital leaders envision vibrant recovery

By Newsroom

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Economic Development

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August 26, 2009

Not even the recent financial tsunami can wash away the venture capital groundwork that has been laid in Ann Arbor.Excerpt:More than $200 million in government funds allocated to Michigan-based venture capital investors in recent years will enable Ann Arbor’s VC sector to prevent the financial crisis from becoming a crippling blow, local experts said.National observers have notably predicted that the financial crisis would liquidate one out of every three venture capitalists. But local VC proponents say many Michigan investors have positioned themselves to survive the crisis.“We have just as much of a chance to survive as other states,” said LeAnn Auer, executive director of the Ann Arbor-based Michigan Venture Capital Association. “That’s because we have a lot of the infrastructure built - we have a great entrepreneurial economy that’s been plugging along and improving within the last few years.”Read the rest of the story here.

A Passage From India

By Constance Crump

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Community Development

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August 19, 2009

With a population of nearly 1.2 billion, India occupies a rather large corner of the world. And with its growing technological industries it was bound to discover Ann Arbor's deep well of innovation. But is our region making the kinds of international connections that are necessary to thrive in today's global economy?

RPM Ventures receives $4M from Renaissance VC Fund

By Newsroom

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Economic Development

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August 12, 2009

The Renaissance Venture Capital Fund has struck again, investing $4 million into RPM Ventures.Renaissance is a venture capital fund that invests in VC funds. It was formed last year and has offices in the downtowns of Ann Arbor and Detroit. RPM Ventures is also based in Ann Arbor and focuses on investing in start-ups working on innovative technologies in manufacturing."They have a really good strategy and national reputation," says Chris Rizik, CEO of Renaissance Venture Capital Fund. This is the third investment Renaissance Venture Capital Fund has made since it was founded late last year. Two of the three investments have been in Ann Arbor-based VC firms and all three firms have been in Michigan-based firms. "We only invest in funds that are active in Michigan," Rizik says. "They have to have a strategy on how they’re going to invest in Michigan."RPM Ventures was founded in 2000 by partners Marc Weiser and Tony Grover. It focuses much of its work in Michigan and in neighboring Midwestern states.Source: Chris Rizik, CEO of Renaissance Venture Capital FundWriter: Jon Zemke

Ann Arbor venture capitalists raise $73 million for 2nd fund

By Newsroom

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Economic Development

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August 12, 2009

Ann Arbor’s Arboretum Ventures continues to establish itself as Michigan’s premier venture capital firm.Excerpt:Last fall's financial markets meltdown hasn't stopped Arboretum Ventures from emerging as one of Michigan's leading venture capital firms this year.In February, Arboretum finished raising its second investment fund, attracting $73 million from nine major institutional investors. That's the largest in the state, excluding a few government-created funds.And just four months earlier, the Ann Arbor-based firm scored the equivalent of a home run in venture investing when Johnson & Johnson acquired one of its companies, HealthMedia Inc. The sale gave Arboretum a nearly tenfold return on its money."Our goal is to be one of the top five venture funds in the country for health care," said Jan Garfinkle, who started Arboretum in 2002 after she couldn't get a job in the state's once tiny venture industry.Read the rest of the story here and when Concentrate first reported on it back in February here.

Where’s VC cash? UM spinoffs, Ann Arbor companies early winners

By Newsroom

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Economic Development

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July 29, 2009

When it comes to venture capital, companies with roots in Ann Arbor are cashing in early and often.Excerpt:So far, the University of Michigan and Ann Arbor-based firms are the big winners in early investing from two state funds, the Venture Michigan Fund and the 21st Century Investment Fund.Twelve Michigan companies have received funding from the funds. Of eight Ann Arbor companies, seven are UM spinoffs. Read the rest of the story here.

Early Stage Partners plans to open VC office in Ann Arbor

By Newsroom

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Economic Development

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July 1, 2009

Michigan’s investment in a couple of mezzanine funds is resulting in a new venture capital office in Ann Arbor.The state’s 21st Century Investment Fund just invested $35.5 million into four funds. Among them is Cleveland-based Early Stage Partners ,which is getting a cool $10 million to invest venture capital into research companies in the Midwest. It plans to open an office in Ann Arbor soon as part of the deal.Early Stage Partners provides early stage venture capital to research-based start-ups. Those companies are usually in the educational, scientific and medical industries.The other three companies include Arsenal Venture Partners, which will receive $5 million and plans to open an office in Michigan soon, too. It also focuses on early stage venture capital but in the defense and commercial markets. Detroit-based Peninsula Capital Partners, the state’s largest mezzanine fund, got $14.5 million. Triathlon Medical Ventures also received $10 million and plans to hire a Michigan-based full-time partner.The 21st Century Investment Fund is part of Michigan’s 21st Century Jobs Fund. The $2-billion effort is focused on growing and diversifying the state’s economy over 10 years.Source: Michigan Economic Development CorpWriter: Jon Zemke

U-M’s VC Frankel Fund invests in Accio Energy

By Newsroom

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Economic Development

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June 24, 2009

The venture capitalists at the University of Michigan's Ross School of Business have struck again, investing $80,000 into an Ann Arbor-based company. Accio Energy will use the money to develop a wind energy system that generates electricity differently than your standard wind turbine. The "aerovoltaic technology" uses charged particles and wind to generate electricity in a machine that doesn’t have any moving parts.The money comes from the Frankel Commercialization Fund, a student-managed venture capital seed fund. It was formed to help speed up the technology commercialization and company formation at the university and surrounding area. It's the fund's fourth investment and its first in a alternative energy firm. Source:Writer: Jon Zemke

Axiobionics plans Ann Arbor move, to create 100 new jobs

By Newsroom

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Economic Development

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June 17, 2009

Ann Arbor took another one from Columbus, and this doesn't have anything to do with sports. Axiobionics has called Columbus home for 15 years, but it's packing up and heading to the land of Maize and Blue before the summer is over. The life sciences company, formerly BioFlex, is bringing its dozen or so jobs and plans to hire another 100 here within the next five years. The firm had looked at sites across the nation, but choose Ann Arbor after receiving a $1.4 million state tax credit over seven years. Locations Axiobionics considered included Arizona and Texas. The company also liked Ann Arbor's established software community and access to a top-notch teaching hospital like the University of Michigan Hospital."This is just a good environment for therapy and rehab," says Joel Dalton, vice president of Axiobionics. "That's something that Ohio lacks."Axiobionics develops and markets medical devices for pain control and neuro rehabilitation in patients with severe spinal cord and brain injuries. This therapy system uses customized electrical stimulation devices designed to improve stability, build muscles and increase circulation in prosthetic patients. Axiobionics plans to invest $2.89 million as part of its relocation. Some of those new hires that comes with that investment will be made in the near future.Source: Joel Dalton, vice president of AxiobionicsWriter: Jon Zemke

Dexter Research Center plans to expand, hire 47

By Newsroom

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Community Development

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June 17, 2009

Sometimes the sirens call for strategic partnerships is too strong to keep companies where they were founded. Not so with the Dexter Research Center.The 31-year-old firm has renewed its lease on life by choosing to expand in its hometown, a move that will lead to 47 new jobs in the next five years. The defense contractor has strategic partnerships in Ohio and Massachusetts that were wooing the firm away from Michigan. A $313,000 state tax credit over seven years helped quiet them."We have always been here in Michigan," says Cory Ziegler, controller of the Dexter Research Center. "We enjoy being here."The Dexter Research Center manufactures infrared thin-film thermopile and silicon detectors used in the automotive, oil and military industries. It's also working on new products in what will be the $3 million expansion the firm plans to undertake. "The last couple of years we have had some good growth but we realized we need more products," Ziegler says.The Dexter Research Center employs 58 people and has 4-5 positions open right now. It expects to hire another 2-3 people on top of those by the end of the year. Source: Cory Ziegler, controller of the Dexter Research CenterWriter: Jon Zemke