Investment

65 VC firms set to attend U-M Growth Capital Symposium

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May 6, 2009

There are places to be seen in the Midwest start-up/venture capital game, and the University of Michigan's Growth Capital Symposium is definitely one of them.This is not a new thing. This Tuesday and Wednesday is the 28th incarnation of the symposium, and given how many venture capitalists are coming and how many start-ups looking for funding wanted to get their foot in the door it shows how important the event has become.This year 65 venture capital firms and a handful of angel investors will attend. They include names like locally known Arboretum Ventures and internationally revered Silicon Valley Bank. They will be paying attention to the 32 companies (more than double that applied) that will present their products at the event. All of these companies are looking for financing."We see a lot deals, a lot of partnerships coming out of this event," says Mary Nickson, manager of the University of Michigan's Growth Capital Symposium. "We put the right people in front of the right investors."The symposium started as an economic development tool, a way to get investors to take a look at Michigan who otherwise wouldn't pay attention let alone invest dollars here. The symposium will be held at the Marriott Resort in Ypsilanti.Source: Mary Nickson, manager of the University of Michigan's Growth Capital SymposiumWriter: Jon Zemke

Latest in Investment

Ann Arbor-area companies lead venture capital deals in first quarter

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Economic Development

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April 22, 2009

The silver lining to the latest venture capital cloud is in Ann Arbor.Excerpt:Ann Arbor-area companies led the venture capital deals completed in Michigan in the first quarter, although deals across the state and nation were down overall the National Venture Capital Association reported today.According to a report from PricewaterhouseCoopers and the National Venture Capital Association that was based on data provided by Thomson Reuters, there were 10 deals worth about $8.44 million in the state in the first quarter.Read the rest of the story here.

Adeona Pharma buys Cali firm, plans to expand in Ann Arbor

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Economic Development

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April 22, 2009

Adeona Pharmaceuticals didn't just open an office in California, it bought one. The Ann Arbor-based firm recently paid handsomely (but smartly) for Colwell Clinical Laboratories in southern California. Adeona plans to use the CLIA-certified clinical laboratory’s services and test it has developed to expand an untapped part of its market."We're hoping to increase the type of testing they offer," says Steve Kanzer, chairman and CEO of Adeona Pharmaceuticals.Kanzer plans to leave Colwell’s five people out in California. In the mean time he hopes to add another 5-10 people to Adeona’s Ann Arbor operations within the next year or two. The company already employs seven people, some independent contractors and the occasional sumer intern. Adeona is a specialty pharmaceutical company specializing in awareness, diagnosis, prevention and treatment of subclinical zinc deficiency and chronic copper toxicity in the mature segment of the population.Source: Steve Kanzer, chairman and CEO of Adeona PharmaceuticalsWriter: Jon Zemke

Ypsilanti’s SPARK East incubator receives $250,000 in grant funding

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Economic Development

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April 8, 2009

Ann Arbor SPARK's East incubator in Ypsilanti landed a little bit of green ($250,000) from the Michigan Strategic Fund.The Strategic Fund's money comes from the Michigan Economic Development Corporation and the state. The money is supposed to help get the fledgling incubator off the ground."It will help us with the operating costs for the facility," says Michael Finney, president and CEO of Ann Arbor SPARK. "It will cover a little bit of everything."Ann Arbor SPARK opened its third incubator in downtown Ypsilanti earlier this year. There are now four companies in its 8,000 square feet facing Michigan Avenue, next to Bombadill’s Cafe.The incubator offers two conference rooms, utilities, high-speed Internet, copiers and convenient parking for its tenants. It also provides expert business support from Ann Arbor SPARK and provides numerous opportunities to network with other new economy entrepreneurs. For information on leasing space click here or send an email to shamar@annarborusa.org or call (734) 527-9171.Source: Michael Finney, president and CEO of Ann Arbor SPARKWriter: Jon Zemke

U-M spin-off Biotectix adds two jobs, works to validate new tech

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Economic Development

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April 8, 2009

The people at Ann Arbor’s Biotectix don’t exactly know where they’re going with their start-up's technology, and that's a good thing.The 2-year-old spin-off from the University of Michigan got its start when a U-M professor and the people in his lab discovered a new way to use a polymer, PEDOT, for medical devices. In it they saw the potential to help fight illnesses, such as deafness, blindness and Parkison's. Massachusetts-based Allied Minds and Ann Arbor SPARK’s Pre-seed Investment Fund have invested about $1 million in furthering research for the three-person (Sarah Richardson-Burns, David Martin and Jeffrey Hendricks) company and its discovery. "Once the research was validated by an independent third party the decision was made to ramp up development," says Richardson-Burns, director of research & development for Biotectix. That means that the company now employs two full-time scientists, an interim CEO and two part-time technicians. It's bringing an intern on this summer. Biotectix's team is also trying to attract more financing to further its research. It's still deciding how to best commercialize the technology and which direction to first pursue."We’re not really sure where this will take us," Richardson-Burns says.Source: Sarah Richardson-Burns, director of research & development for BiotectixWriter: Jon Zemke

Thomson-Shore prints books, wins award, invests in Dexter

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Economic Development

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April 8, 2009

Thomson-Shore isn’t growing in Dexter as much as it is investing in the town it has called home for 37 years.The company downsized from 260 to 245 people since last year, but has invested about $10 million in its book-printing business. Thomson-Shore prints lots of short-run books, ranging anywhere from 500-20,000 copies, that are usually special orders for universities or religious institutions."The last year has been a lot about installing new equipment and focusing on our core products and customers," says Kevin Spall, the president and CEO of Thomson-Shore.The new equipment includes three new sewing machines, web press and multi-color press. This is the type of equipment that will allow the company to perform its job more efficiently and effectively.Thomson-Shore is also looking at breaking into some new markets. These range from graphic novels and comic books to digital printing and ebooks. "We'll be looking at a lot of new markets," Spall says.The company expects to use its organic growth from it core products and expansion into new markets to expand its payroll within the next year or two by a handful of people. Spall estimates it could be 2-3 new people for every million dollars in growth.The employee-owned company also recently won the 2008 ESOP Company of the Year Annual Award for Communications Excellence from the ESOP Association. The award recognizes outstanding communications and educational programs.Source: Kevin Spall, the president and CEO of Thomson-ShoreWriter: Jon Zemke

Washtenaw County gets in on Aerotropolis Development

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Community Development

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April 8, 2009

Most people may think of Ann Arbor when someone brings up Washtenaw County. But the county is far fmore than just Ann Arbor. That is a major reason why the county has signed up to become part of the Aerotropolis Development Corporation."This will really help us redevelop the eastern side of the county," says Anthony VanDerworp, director of strategic planning for Washtenaw County. "That's the older section of the county. There are a lot of vacant buildings and factories there."The regional corporation will develop about 60,000 acres of land from Detroit Metro Airport to Willow Run Airport. The county paid $25,000 to be part of the initiative, joining Ypsilanti and Ypsilanti Township which already signed on.The Aerotropolis is expected to create 64,000 new jobs, $10 billion in economic impact and millions in tax revenue in the area around Metro and Willow Run airports. Major economic development incentives are planned to help develop the Aerotropolis area.Metro Airport is expected to become one of Metro Detroit's main economic engines of the 21st Century because it has lots of room to grow in the vacant or unused land around it. Most other major metro airports have already been extensively developed and have little room to grow. Source: Anthony VanDerworp, director of strategic planning for Washtenaw CountyWriter: Jon Zemke

Xoran Technologies moves into bigger HQ in Ann Arbor

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Development News

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April 8, 2009

Bigger is better for Ann Arbor's Xoran Technologies. At least, when it comes to workplaces.The portable CAT scan company just upgraded its facilities, moving from a 20,000-square-foot home on Ann Arbor’s north side to a 45,000-square-foot space in Tech Park facility on South State Street. Xoran Technologies also has an option of expanding into even more space during the lease."We're definitely expanding in our area," says Susie Vestevich, manager of public relations and corporate communication for Xoran TechnologiesThe company got its start eight years ago and has created about 60 jobs during that time. It recently hired five new people and expects to fill more spots later this year. The growth is expected to continue, allowing Xoran Technologies to eventually fill all of its new space.Source: Susie Vestevich, manager of public relations and corporate communication for Xoran TechnologiesWriter: Jon Zemke

Downtown Ann Arbor’s Federal Building in line for green upgrades

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Community Development

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April 8, 2009

The feds are starting to green their buildings and one of the first to undergo these environmentally friendly updates is Ann Arbor’s Federal Building.The downtown structure on Liberty between Fourth and Fifth streets will receive $2.4 million in improvements, including advanced water and electricity meters. A new green roof is also a possibility.The money is coming from the Federal Stimulus bill and is being administered by the U.S. General Services Administration. $5.5 billion has been designated for federal buildings throughout the country.Repeated calls to agency over several days to find out further details were not returned.Source: U.S. General Services AdministrationWriter: Jon Zemke

Location scout talks about Michigan’s Hollywood close up

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Arts & Culture

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April 8, 2009

Detroit is known as the Paris of the Midwest, but could Washtenaw County become the Hollywood of the 'Great Flyover'?Excerpt:Michigan's subsidy for filmmakers has been a great success, as evidenced by California's passage earlier this year of its own $500 million tax incentive to retain productions that have been fleeing the Golden State for places like the Great Lakes State.A 42 percent refund for in-state spending is a difficult lure to resist, but Innocence Production Inc.'s George Constas says it's only a start.Constas is a location scout for the Ann Arbor based production company. He is largely why places like Dexter, Chelsea, Jackson, Ann Arbor and Ypsilanti were included in the roster of locations around mid and eastern Michigan.Read the rest of the story here and the YpsiNews' April Fools story about the porn industry setting up shop in Ypsilanti here.