Venture Capital

FarmLogs scores $4M in VC, looks to add 6 positions immediately

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January 29, 2014

First FarmLogs developed its agriculture technology. Then the Ann Arbor-based startup landed the seed capital. Now the up-and-coming firm is starting to hire. FarmLogs recently landed $4 million in venture capital. The Series A round was led by Drive Capital, a Columbus-based venture capital firm with roots in Silicon Valley VC titan Sequoia Capital. A couple of local investment organizations also participated in the round, including Ann Arbor-based Huron River Ventures and Detroit-based First Step Fund. That cash infusion, along with a $1 million seed round it raised last year, has allowed FarmLogs to exponentially grow its staff. The firm has hired five people over the last year, hires that consisted of software engineers and designers. It now employs nine people and is looking to add interns this summer. FarmLogs is also in the process of trying to hire another six people, primarily software engineers. "We will double the team this year," says Jesse Vollmar, CEO of FarmLogs. FarmLogs makes online-based, farm-management software that enables farmers make better business decisions by providing real-time analytics and other strategic information. Vollmar and Brad Koch, who grew up in rural areas in Michigan's thumb region, came up with the idea in Silicon Valley's Y Combinator but moved the startup to Ann Arbor. The idea behind the move was to be closer to agriculture business while also calling an emerging tech hub like Ann Arbor home. The startup has taken off in its first year since it launched its product. Today farms in each of the U.S. 50 states and 130 other countries are using it. Vollmar says that 5 percent of row-crop farms (think traditional crops like corn) in the U.S. are using FarmLogs big-data technology and that number is growing rapidly. "It all boils down to delivering more value to our customers," Vollmar says. Source: Jesse Vollmar, CEO of FarmLogs Writer: Jon Zemke

Latest in Venture Capital

Epsilon Imaging closes in on $4M Series B round

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Economic Development

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December 18, 2013

Epsilon Imaging is landing more and more investment and the startup is close to closing on a sizable seed round. The Ann Arbor-based company recently landed a $250,000 investment from Automation Alley's Pre-Seed Fund, which is part of more than $3 million it has raised for a Series B round. It is aiming to raise $4 million, a goal that is within the firm’s grasp. "There is a small amount left," says Eric Sieczka, CEO of Epsilon Imaging. "We expect to have it closed out by the end of January." Epsilon Imaging's principal product is EchoInsight, an ultrasound for cardiac imaging that quantitatively measures the strength and weakness of the heart's muscles. The technology helps medical staff analyze and interpret echo studies for cardiac patient care. The company has been closing on sales since last summer. EchoInsight is now available in 35 hospitals across the U.S. and abroad. "We have been expanding into Europe as well," Sieczka says. Which has required Epsilon Imaging to hire more staff. It has brought on two new employees (in sales and software development) over the last year and currently employs nine people. More hires are expected in 2014. "We have lots of business coming at us so we need more sales people," Sieczka says. "We have a lot of business in the pipeline so we need more bodies to pull it through." Source: Eric Sieczka, CEO of Epsilon Imaging Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Covaron takes 2nd place, $100K at Accelerate Michigan

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Economic Development

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December 4, 2013

Covaron Advanced Materials took second place in the Accelerate Michigan Innovation Competition last month, a win that put $100,000 in cash into the startup's kitty. That money will go toward its seed capital round. The firm raised a total of $300,000 in seed capital and also landed a $250,000 loan from the Michigan Pre-Seed Capital Fund prior to the win last month. Covaron Advanced Materials is also looking to raise a $5 million Series A. "We're just starting to solicit that now," says Dave Hatfield, CEO of Covaron Advanced Materials.? The Ann Arbor-based start-up, formerly Kymeira Advanced Materials, is developing a new chemistry for ceramics, which brings the benefits of existing advanced ceramics to new parts and markets. The 1-year-old company won the student portion of the Accelerate Michigan competition last year. This year the startup and its team of six people (it just hired one of its interns) leveraged that experience to turn in another winning effort. "We had a good story," Hatfield says. "To win both of those competitions and through the vetting for the business loan from the Michigan Pre-Seed Capital Fund means you have a pretty good business plan. It’s a great confirmation for us." Source: Dave Hatfield, CEO of Covaron Advanced Materials Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Blaze Medical Devices raises $1.1M of $2M VC round

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Economic Development

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November 20, 2013

Blaze Medical Devices is more than halfway to its goal of raising $2 million worth of seed capital, raking in $1.1 million as of this fall. "My goal is to close on all of that before the end of the year," says David Weaver, CEO of Blaze Medical Devices, adding it might take until early 2014 to hit the target. The 7-year-old company originally had a goal of raising $1.5 million in seed capital but bumped that number up to $2 million after encountering higher demand from investors than expected. The Ann Arbor-based startup, which made the semi-finals of this year's Accelerate Michigan Innovation Competition, is developing blood transfusion technology that will enable medical professionals to better control and optimize blood banking and transfusions. Its clinical tests help assess the quality of stored blood and its laboratory instruments help facilitate blood research. The company has finalized the design of its product this year and hopes to begin sales early next year. "We have a queue of people who are interested in the product for research," Weaver says. "We expect to roll it out next year." Blaze Medical Devices has hired three people over the last year, expanding its staff to six employees. Weaver expects to make a couple more hires in 2014. Source: David Weaver, CEO of Blaze Medical Devices Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

DeNovo Sciences preps to make first sales next year

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Economic Development

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November 6, 2013

DeNovo Sciences is in the final stages of commercializing its first products and is preparing to make it first sales soon. The 3-year-old startup is developing a platform for early detection of cancer from blood as an alternative to painful biopsies. It has spent the last year going through clinical testing, primarily for its breast- and colon-cancer-detection products. It plans to debut two of its instruments later this fall at trade shows. "We are really excited about it," says Kalyan Handique, president & CEO of DeNovo Sciences. "We hope to start taking orders from them early next year." DeNovo Sciences launched out of Ypsilanti and is now operating out of the Michigan Life Sciences and Innovation Center, which is managed by Ann Arbor SPARK, in Plymouth. It currently employs six full-time employees, eight part-timers and three summer interns. It has hired one person, an engineer, over the last year. The startup took first place, which was worth $500,000 in seed capital, at the Accelerate Michigan Innovation Competition two years ago. It has raised $1.75 million in seed capital from angel investors last year. It is currently looking to raise $6 million in a Series A round from venture capitalist next year. "It's looking good," Handique says. "It's like what we planned." Source: Kalyan Handique, president & CEO of DeNovo Sciences Writer: Jon Zemke

Student start-ups continue evolution at Accelerate Michigan

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Economic Development

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November 6, 2013

There will be some familiar start-up names in this year’s Accelerate Michigan Innovation Competition. Not because it's the same entrepreneurs pushing the same ideas. It's because a number of former studentpreneurs are now pushing their start-ups as professionals. A number of businesses that were launched from Michigan-based student housing are among the 51 semifinalists in the Accelerate Michigan Innovation Competition. Among those are Covaron Advanced Materials (which won Accelerate Michigan's student competition last year under the name Kymeria Advance Materials), AutoBike (a product of U-M Ross School of Business grads), TurtleCell (founded by two U-M students) and SkySpecs (launched by four U-M students). "We want to make sure we have a staircase of opportunities for students and their companies," says Lauren Bigelow, executive director of the Accelerate Michigan Innovation Competition. The Accelerate Michigan Innovation Competition is in its fourth year. It has made a name for itself for awarding $1 million in prizes over the three-day business plan competition, including a $500,000 top prize for the top finisher. The prizes go to Michigan-based startups rooted in the new economy or startups that are looking to move to the Great Lakes State. The competition is held annually in mid November. It was held at the University of Michigan its first two years and moved to downtown Detroit last year. This year's event will also be held in downtown Detroit on Nov 12-14, primarily at the Westin Book-Cadillac Hotel. For information, click here. Source: Lauren Bigelow, executive director of the Accelerate Michigan Innovation Competition Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Ann Arbor’s solartonic leverages microloan to expand sales

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Community Development

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September 18, 2013

Ann Arbor-based solartonic plans to leverage a new microloan to help market its solar-power technology and begin work on developing a second-generation of its principal product. Solartonic is commercializing solar panel technology that it hopes to take the industry beyond the panel-on-a-frame installations. The firm’s solarap systems is meant to work with outdoor energy-efficient lighting apparatus with a panel that raps around a street pole so it can collect solar energy throughout the day. It has installed its first sales in texas and is working to generate more sales across the U.S. “We’re looking to sell more of that version,” says Brian Tell, managing partner of solartonic. “We’re also looking at building a 2.0 version that will include some smart-grid technology.” A microloan from the Michigan Microloan Fund, which is managed by Ann Arbor SPARK, will help support the two-person startup’s sales and marketing efforts, which will include building out its website and attending trade shows. The size of the microloan wasn’t disclosed but amounts granted by the Michigan Microloan Fund usually average around $50,000. Source: Brian Tell, managing partner of solartonic Writer: Jon Zemk Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Covaron Advanced Materials scores $550K in seed capital

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Community Development

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September 11, 2013

Covaron Advanced Materials has locked down another $250,000 in seed capital, bringing the total for the downtown Ann Arbor-based start-up’s initial seed round to $550,000. The $250,000 comes from the Michigan Pre-Seed Capital Fund, which is run by Ann Arbor SPARK. It serves as matching funds for the $300,000 in venture capital it raised earlier this year, and is the precursor to the next round of funding the start-up plans to being raising soon. “We expect we will be looking for A-round funding in the first quarter of next year,” says Dave Hatfield, CEO of Covaron Advanced Materials. The 1-year-old start-up, formerly Kymeira, is developing a new chemistry for ceramics, which brings the benefits of existing advanced ceramics to new parts and markets. Vince Alessi, a University of Michigan graduate, developed the technology, which is in the final stages of commercialization. The seed capital will go toward finishing that process so it can start to make its first sales this fall. “It (the seed capital) is going toward several things, like securing our intellectual property position, and replicating and validating the basic chemistry,” Hatfield says. “We are moving very rapidly to create the capability and the customers for the initial sales.” Those initial sales will be in the mold, tool-and-dye industry. Covaron Advanced Materials' team of six people is also eyeing sales in the oil-and-gas industry further down the line. Source: Dave Hatfield, CEO of Covaron Advanced Materials Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Amplifinity grows staff by 8, preps to raise a Series B round

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Arts & Culture

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August 14, 2013

Amplifinity is starting to hit its growth streak stride this year as it preps to land more seed capital in 2014. The downtown Ann Arbor-based start-up specializes in generating Internet referrals through social media. Its Advocacy Management Platform software allows people to advocate for brands by referring new prospects, endorsing products, and amplifying marketing messages. The 5-year-old company currently has a staff of 25 employees and an intern. It has hired eight people over the last year and is looking to hire one more person now. The firm expects to continue adding new people at that rate well into 2014. The start-up expects to double in size this year and triple in size the next year. It has experience significant growth on both the business-to-business and business-to-customer markets. "We have grown quite a bit over the last year and we anticipate growing more this year," says Dick Beedon, CEO of Amplifinity. Amplifinity raised a $3.5 million Series A round of funding last year, which has allowed it to grow at this rate. Beedon says his firm is preparing to begin raising a Series B round of seed capital in 2014 worth somewhere between $4 million and $6 million. Source: Dick Beedon, CEO of Amplifinity Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Ann Arbor ranks #11 for VC activity

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Economic Development

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August 7, 2013

Start-hubs are all the rage and Ann Arbor has been listed as a capital-dense start-up community, right behind Seattle! Excerpt: "Silicon Valley and Silicon Alley capture a lot of attention, but cities including Detroit, Michigan; Las Vegas, Nevada and Omaha, Nebraska each boast booming entrepreneurial communities of their own. Heck, even Canada is in the running for next start-up frontier." Read the rest here.