Sakti3 to invest $1.1 million in Ann Arbor move, create 112 jobs
Sakti3 is looking to cash in on hybrid battery technology and to do so in Ann Arbor. The start-up looks to invest $1.1 million in Tree Town and create 112 new jobs.
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Michigan venture capital report shows progress, need
Surprise, surprise, a new report from the Michigan Venture Capital Association says the state needs more venture capital, and a few other interesting things.Excerpt:Reports showing a large gap between the demand for venture capital in Michigan and the amount of money available represents both how far Michigan has come in the VC arena -- and how far it still needs to go.An annual report by the Michigan Venture Capital Association in Ann Arbor says efforts to transition Michigan's economy are at risk without an increase in venture capital in the state.Yet at the same time the report says Michigan has made great progress this decade through the creation of several homegrown VC funds. The amount of capital under management in Michigan is now at $1 billion, and all VC investments made in the state grew in 2008 by nearly 75 percent to $246 million.Capital available from out-of-state firms also has grown, with 10 now dedicating an investment professional to Michigan or operating an office here, double that of 2007.The varying perspectives within the same document stem from the relative infancy of the VC industry in Michigan."It's a great start. It's just not enough," MVCA Executive Director Leann Auer said. "We have come a long way, but we've got a long way to go."Read the rest of the story here.
Pre-Seed Capital Fund hits three Ann Arbor/Ypsilanti businesses
Three new businesses in the Ann Arbor/Ypsilanti area are about to get by with a little help from their new friend - Michigan Pre-Seed Capital Fund.White Pine Systems, OcuSciences and RealKidz (all Ann Arbor SPARK-sponsored start-ups) received between $142,000 and $250,000 in seed money. Ann Arbor SPARK administers this money."We hope this acts as an incentive to bring an angel (investor) to the table to make an investment," says Skip Simms, administrator of the Michigan Pre-Seed Capital Fund. Ann Arbor-based White Pine Systems will use its $225,000 to further its internet-based medical records service. That service securely stores and manages personal information, such as medical and legal records.University of Michigan spin-off OcuSciences has $250,000 to develop its OcuMet line of ocular metabolic imaging products. The Ann Arbor-based firm’s products allow detection of several diseases through indicators in the eye, several years earlier than current clinical methods.Ypsilanti-based RealKidz, an on-line retailer, plans to use its $142,000 to further its development of of large size kids clothing and social network. RealKidz is a tenant of SPARK East business incubator.The Michigan Pre-Seed Capital Fund, a collaborative effort of Michigan's 15 SmartZones, is an equity investment fund. It receives the same returns as a private third-party investor. Ann Arbor SPARK is one of these SmartZones. Thirty-four companies have received seed money from the fund since its inception.Source: Skip Simms, administrator of the Michigan Pre-Seed Capital FundWriter: Jon Zemke
Venture capitalists say time is right for U.S.-Canada investments
Venture capitalists who recently gathered in Ypsilanti see now as a great time to cross the border with some cash.Excerpt:The timing is right for U.S.-Canada cross-border investment opportunities. That was the message of a panel discussion Wednesday morning at the 28th annual Michigan Growth Capital Symposium at Marriott at Eagle Crest in Ypsilanti. It was the second day of a conference on venture capital investing that drew about 450 participants. Attendees included about 65 VC firms and 32 young companies who made presentations in the search for equity investments. For the first time, the symposium devoted a panel devoted to cross-border opportunities, and it included a record six Canadian companies who made formal presentations to would-be investors. “Canada is a great breeding ground for U.S. investors to come north,” said Marc Faucher, partner of the Toronto-based BlackBerry Partners Fund, which focuses on companies in the mobile phone sector. “From a cross-border standpoint, we’re finding very good conditions for early-stage investments in telecom firms in Canada that we’ll bring down to the U.S. for deals as the companies mature.”Read the rest of the story here.
Arboretum Ventures makes 2nd investment, plans for 1-2 more
Venture capital is far from dead in Ann Arbor these days. Arboretum Ventures announced its second new investment last week, bringing its total investment so far for this year to $5 million.The Ann Arbor-based venture capital firm still expects to make 1-2 more investments before the end of 2009. So far it has invested in Aptus Endosystems and CerviLenz."We're still actively investing," says Tim Petersen, managing director of Arboretum Ventures. "There are some venture capital funds that are laying low because of the economy of they don’t have the capital."CerviLenz is a manufacturer and distributor of a disposable device used to predict the risk of preterm birth in pregnant women. Arboretum Ventures investment is part of $4 million the Ohio-based company raised during its initial round of venture funding. Louisville-based Chrysalis Ventures also invested in the financing.Arboretum Ventures focuses mainly on investing in up-and-coming companies that make medical devices. Peterson and Jan Garfinkle formed the firm in 2002. It recently closed a $74 million fund.Source: Tim Petersen, managing director of Arboretum VenturesWriter: Jon Zemke
Velesco to invest $1.8 million, hire 35 people
Velesco Pharmaceutical Services is making another big investment in two of Michigan’s smartest college towns, Ann Arbor and Kalamazoo.The Ann Arbor-based firm will utilize a $431,536 state tax credit over seven years to expand its laboratory space in the Ann Arbor area and open a new production facility in Kalamazoo. The $2 million investment is expected to create up to 35 jobs by 2014."This is a tremendous help for us to position us for success," says Gerry Cox, COO of Velesco Pharmaceutical Services.The four-person firm was formed by ex-Pfizerites Gerry Cox and David Barnes shortly after the pharmaceutical giant closed its Ann Arbor campus in 2007. It provides drug formulation, analytical chemistry and early stage clinical GMP supplies to emerging biotech and pharmaceutical companies. It works out of Ann Arbor SPARK's wet lab incubator in Plymouth. It plans to expand its presence in the Michigan Life Science and Innovation Center where it will perform analytical and drug formulation work. Velesco also planning to open a 10,000-square-foot production facility in the Kalamazoo Commerce Center. It will manufacture GMP clinical trial supplies for pharmaceutical companies that are developing new medicines. Source: Gerry Cox, chief operating officer for Velesco Pharmaceutical ServicesWriter: Jon Zemke
Essen Instruments expands into research, plans to hire 40
It would have been easy for Ann Arbor-based Essen Instruments to skip town. Many of its customers are headquartered in the San Francisco Bay area. And there’s more venture capital there that could help the promising start-up grow. "There were a lot of things that were pulling us toward California," says Brad Naegle, a spokesman for Essen Instruments.The 10-year-old firm decided to stick to its roots and expand in Michigan while taking advantage of a $490,940 tax credit over seven years from the Michigan Economic Development Corporation. That will allow the life sciences company to invest $3 million in Ann Arbor while creating 43 new jobs over five years.Essen Instruments builds, sells and services pre-clinical cell-based research tools, the type of products used by pharmaceutical companies for research. The company has noticed that a lot of these firms are now outsourcing a lot of their lab work, prompting Essen Instruments to create the Discovery Services Business Unit Development Project. "We had to develop a business unit to take advantage of that," Naegle says.This new division of the company, which already employs 25 people on the city’s south side, will employ scientists, technicians and instrument operators. These workers will conduct drug-discovery research in up to 3,000 square feet of laboratory space in Ann Arbor.Source: Brad Naegle, a spokesman for Essen InstrumentsWriter: Jon Zemke
EDF focuses on getting ‘capital efficient’
Though EDF Ventures has been flying under the radar in Ann Arbor, it's not in danger of taking off any time soon. And that's a good thing.Excerpt:EDF Ventures, which helped spawn some of the Ann Arbor region's most successful tech companies, had been uncharacteristically quiet of late. The firm's silence has led some to quietly wonder whether EDF was poised to slowly exit Michigan's venture capital scene. But founder Mary Campbell isn't showing any signs of backing out.EDF's role in Plymouth Township-based drug discovery firm Lycera's recent $36 million financing deal served as a reminder that the venture firm is still a major player in the investment community.And Campbell said she expects to continue making investments despite the financial crisis, which has sapped funding for many investors."Our concept is to be even more capital efficient, which means we will invest more human capital to get down the path further in a more efficient way," Campbell told Business Review in an interview. "That will, if nothing else, allow us to buy time as the market evolves and be able to do more investments with the money under management."Read the rest of the story here.
University of Michigan poised to reap windfall of research dollars
The University of Michigan's coffers are about to become very happy Barack Obama was elected president.Excerpt:The confluence of economic forces surrounding the University of Michigan's research and technology commercialization efforts makes for a paradoxical set of circumstances. Some U-M researchers are experiencing trouble securing capital for their startup efforts. But at the same time, U-M is by all accounts poised to reap a windfall of research dollars directly connected to President Barack Obama's $787 billion economic stimulus package.Marvin Parnes, associate vice president of research for U-M, said administrative employees are working overtime processing all of U-M's funding requests."We are sending in enormous numbers of proposals for these funds," Parnes said.Read the rest of the story here.
Eastern Leaders sets sights on micro loans, land bank
The Eastern Leaders Group has some lofty ambitions for Washtenaw County, but they all seem attainable when looking at their 33 page plan.The group is made up of local leaders from the public, private and university community dedicated toward improving the eastern half of the county. The idea is to harness their collective power and influence to make these improvements, such as building on Eastern Michigan University's reputation and resources.One of their checked-off goals includes the opening of the Ann Arbor SPARK East business incubator in downtown Ypsilanti this year. The group expects the incubator to help make Ypsilanti and the surrounding area more attractive to new economy firms and the high-paying jobs they create.The Eastern Leaders Group also plans to push for a number of other tools, such as the creation of land bank and micro loans for promising start-ups. The land bank is expected to help save foreclosed property from demolition, put them back on the tax roles quickly and stabilize area with heavy foreclosure rates. The micro loans would help fledgling small businesses grow, especially in this time known for its credit crisis. They're part of larger goals aimed at stabilizing the area and developing local businesses.These tools, especially the land bank, will also help the Eastern Leaders Group bring in more federal money to push its programs forward."What we're trying to do is leverage all of that funding," says James McFarlane, a project manager for Eastern Leaders Group.Source: James McFarlane, project manager for Eastern Leaders GroupWriter: Jon Zemke
Michigan venture capital report shows progress, need
Surprise, surprise, a new report from the Michigan Venture Capital Association says the state needs more venture capital, and a few other interesting things.Excerpt:Reports showing a large gap between the demand for venture capital in Michigan and the amount of money available represents both how far Michigan has come in the VC arena -- and how far it still needs to go.An annual report by the Michigan Venture Capital Association in Ann Arbor says efforts to transition Michigan's economy are at risk without an increase in venture capital in the state.Yet at the same time the report says Michigan has made great progress this decade through the creation of several homegrown VC funds. The amount of capital under management in Michigan is now at $1 billion, and all VC investments made in the state grew in 2008 by nearly 75 percent to $246 million.Capital available from out-of-state firms also has grown, with 10 now dedicating an investment professional to Michigan or operating an office here, double that of 2007.The varying perspectives within the same document stem from the relative infancy of the VC industry in Michigan."It's a great start. It's just not enough," MVCA Executive Director Leann Auer said. "We have come a long way, but we've got a long way to go."Read the rest of the story here.
Pre-Seed Capital Fund hits three Ann Arbor/Ypsilanti businesses
Three new businesses in the Ann Arbor/Ypsilanti area are about to get by with a little help from their new friend - Michigan Pre-Seed Capital Fund.White Pine Systems, OcuSciences and RealKidz (all Ann Arbor SPARK-sponsored start-ups) received between $142,000 and $250,000 in seed money. Ann Arbor SPARK administers this money."We hope this acts as an incentive to bring an angel (investor) to the table to make an investment," says Skip Simms, administrator of the Michigan Pre-Seed Capital Fund. Ann Arbor-based White Pine Systems will use its $225,000 to further its internet-based medical records service. That service securely stores and manages personal information, such as medical and legal records.University of Michigan spin-off OcuSciences has $250,000 to develop its OcuMet line of ocular metabolic imaging products. The Ann Arbor-based firm’s products allow detection of several diseases through indicators in the eye, several years earlier than current clinical methods.Ypsilanti-based RealKidz, an on-line retailer, plans to use its $142,000 to further its development of of large size kids clothing and social network. RealKidz is a tenant of SPARK East business incubator.The Michigan Pre-Seed Capital Fund, a collaborative effort of Michigan's 15 SmartZones, is an equity investment fund. It receives the same returns as a private third-party investor. Ann Arbor SPARK is one of these SmartZones. Thirty-four companies have received seed money from the fund since its inception.Source: Skip Simms, administrator of the Michigan Pre-Seed Capital FundWriter: Jon Zemke
Venture capitalists say time is right for U.S.-Canada investments
Venture capitalists who recently gathered in Ypsilanti see now as a great time to cross the border with some cash.Excerpt:The timing is right for U.S.-Canada cross-border investment opportunities. That was the message of a panel discussion Wednesday morning at the 28th annual Michigan Growth Capital Symposium at Marriott at Eagle Crest in Ypsilanti. It was the second day of a conference on venture capital investing that drew about 450 participants. Attendees included about 65 VC firms and 32 young companies who made presentations in the search for equity investments. For the first time, the symposium devoted a panel devoted to cross-border opportunities, and it included a record six Canadian companies who made formal presentations to would-be investors. “Canada is a great breeding ground for U.S. investors to come north,” said Marc Faucher, partner of the Toronto-based BlackBerry Partners Fund, which focuses on companies in the mobile phone sector. “From a cross-border standpoint, we’re finding very good conditions for early-stage investments in telecom firms in Canada that we’ll bring down to the U.S. for deals as the companies mature.”Read the rest of the story here.
Arboretum Ventures makes 2nd investment, plans for 1-2 more
Venture capital is far from dead in Ann Arbor these days. Arboretum Ventures announced its second new investment last week, bringing its total investment so far for this year to $5 million.The Ann Arbor-based venture capital firm still expects to make 1-2 more investments before the end of 2009. So far it has invested in Aptus Endosystems and CerviLenz."We're still actively investing," says Tim Petersen, managing director of Arboretum Ventures. "There are some venture capital funds that are laying low because of the economy of they don’t have the capital."CerviLenz is a manufacturer and distributor of a disposable device used to predict the risk of preterm birth in pregnant women. Arboretum Ventures investment is part of $4 million the Ohio-based company raised during its initial round of venture funding. Louisville-based Chrysalis Ventures also invested in the financing.Arboretum Ventures focuses mainly on investing in up-and-coming companies that make medical devices. Peterson and Jan Garfinkle formed the firm in 2002. It recently closed a $74 million fund.Source: Tim Petersen, managing director of Arboretum VenturesWriter: Jon Zemke
Velesco to invest $1.8 million, hire 35 people
Velesco Pharmaceutical Services is making another big investment in two of Michigan’s smartest college towns, Ann Arbor and Kalamazoo.The Ann Arbor-based firm will utilize a $431,536 state tax credit over seven years to expand its laboratory space in the Ann Arbor area and open a new production facility in Kalamazoo. The $2 million investment is expected to create up to 35 jobs by 2014."This is a tremendous help for us to position us for success," says Gerry Cox, COO of Velesco Pharmaceutical Services.The four-person firm was formed by ex-Pfizerites Gerry Cox and David Barnes shortly after the pharmaceutical giant closed its Ann Arbor campus in 2007. It provides drug formulation, analytical chemistry and early stage clinical GMP supplies to emerging biotech and pharmaceutical companies. It works out of Ann Arbor SPARK's wet lab incubator in Plymouth. It plans to expand its presence in the Michigan Life Science and Innovation Center where it will perform analytical and drug formulation work. Velesco also planning to open a 10,000-square-foot production facility in the Kalamazoo Commerce Center. It will manufacture GMP clinical trial supplies for pharmaceutical companies that are developing new medicines. Source: Gerry Cox, chief operating officer for Velesco Pharmaceutical ServicesWriter: Jon Zemke
Essen Instruments expands into research, plans to hire 40
It would have been easy for Ann Arbor-based Essen Instruments to skip town. Many of its customers are headquartered in the San Francisco Bay area. And there’s more venture capital there that could help the promising start-up grow. "There were a lot of things that were pulling us toward California," says Brad Naegle, a spokesman for Essen Instruments.The 10-year-old firm decided to stick to its roots and expand in Michigan while taking advantage of a $490,940 tax credit over seven years from the Michigan Economic Development Corporation. That will allow the life sciences company to invest $3 million in Ann Arbor while creating 43 new jobs over five years.Essen Instruments builds, sells and services pre-clinical cell-based research tools, the type of products used by pharmaceutical companies for research. The company has noticed that a lot of these firms are now outsourcing a lot of their lab work, prompting Essen Instruments to create the Discovery Services Business Unit Development Project. "We had to develop a business unit to take advantage of that," Naegle says.This new division of the company, which already employs 25 people on the city’s south side, will employ scientists, technicians and instrument operators. These workers will conduct drug-discovery research in up to 3,000 square feet of laboratory space in Ann Arbor.Source: Brad Naegle, a spokesman for Essen InstrumentsWriter: Jon Zemke
EDF focuses on getting ‘capital efficient’
Though EDF Ventures has been flying under the radar in Ann Arbor, it's not in danger of taking off any time soon. And that's a good thing.Excerpt:EDF Ventures, which helped spawn some of the Ann Arbor region's most successful tech companies, had been uncharacteristically quiet of late. The firm's silence has led some to quietly wonder whether EDF was poised to slowly exit Michigan's venture capital scene. But founder Mary Campbell isn't showing any signs of backing out.EDF's role in Plymouth Township-based drug discovery firm Lycera's recent $36 million financing deal served as a reminder that the venture firm is still a major player in the investment community.And Campbell said she expects to continue making investments despite the financial crisis, which has sapped funding for many investors."Our concept is to be even more capital efficient, which means we will invest more human capital to get down the path further in a more efficient way," Campbell told Business Review in an interview. "That will, if nothing else, allow us to buy time as the market evolves and be able to do more investments with the money under management."Read the rest of the story here.
University of Michigan poised to reap windfall of research dollars
The University of Michigan's coffers are about to become very happy Barack Obama was elected president.Excerpt:The confluence of economic forces surrounding the University of Michigan's research and technology commercialization efforts makes for a paradoxical set of circumstances. Some U-M researchers are experiencing trouble securing capital for their startup efforts. But at the same time, U-M is by all accounts poised to reap a windfall of research dollars directly connected to President Barack Obama's $787 billion economic stimulus package.Marvin Parnes, associate vice president of research for U-M, said administrative employees are working overtime processing all of U-M's funding requests."We are sending in enormous numbers of proposals for these funds," Parnes said.Read the rest of the story here.
Eastern Leaders sets sights on micro loans, land bank
The Eastern Leaders Group has some lofty ambitions for Washtenaw County, but they all seem attainable when looking at their 33 page plan.The group is made up of local leaders from the public, private and university community dedicated toward improving the eastern half of the county. The idea is to harness their collective power and influence to make these improvements, such as building on Eastern Michigan University's reputation and resources.One of their checked-off goals includes the opening of the Ann Arbor SPARK East business incubator in downtown Ypsilanti this year. The group expects the incubator to help make Ypsilanti and the surrounding area more attractive to new economy firms and the high-paying jobs they create.The Eastern Leaders Group also plans to push for a number of other tools, such as the creation of land bank and micro loans for promising start-ups. The land bank is expected to help save foreclosed property from demolition, put them back on the tax roles quickly and stabilize area with heavy foreclosure rates. The micro loans would help fledgling small businesses grow, especially in this time known for its credit crisis. They're part of larger goals aimed at stabilizing the area and developing local businesses.These tools, especially the land bank, will also help the Eastern Leaders Group bring in more federal money to push its programs forward."What we're trying to do is leverage all of that funding," says James McFarlane, a project manager for Eastern Leaders Group.Source: James McFarlane, project manager for Eastern Leaders GroupWriter: Jon Zemke
