Innovation & Job News

The student-led start-ups that have the best chance of success are those that become fixtures in the local startup scene.

The co-founders of the likes of Are You a Human and ReGenerate (both started by University of Michigan students and winners of multiple business plan competitions) became regulars in the local business plan scene. They are now landing big seed capital rounds and preparing for growth. The latest U-M start-up to make begin making that impression is Yo Mama Packed It!.

The five-month-old start-up is the brainchild of Jessica Lai (a masters of public health student) and Emily Potter (a recent graduate with a masters degree in space systems engineering), which was inspired while the two were hustling to study at U-M. The start-up provides fresh, healthy and affordable meals for students who are too rushed to cook and keep up with class.

"It's mostly from personal experience of rushing from class to class every day and not having the time to make food or the resources to go out for food," Lai says.

Yo Mama Packed It! recently won the Michigan Business Model Competition, created by U-M's School of Information's SI-Create organization and held at a recent A2 New Tech Meetup. It also won an award at Entrepalooza Symposium and was a semi-finalist in the student portion of last fall's Accelerate Michigan Innovation Competition.

Yo Mama Packed It! is still developing its business model, using friends and fellow students as test subjects. It hopes to roll out its business later this year while partnering with other local craft-food businesses.

"If someone makes really good cookies, I would love to have them in our lunch," Lai says.

Source: Jessica Lai, co-founder of Yo Mama Packed It!
Writer: Jon Zemke

Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

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.

Business ideas don't always make profitable businesses. A new program at the University of Michigan's Ross School of Business hopes to make that transition more commonplace in Ann Arbor.

U-M is launching the Mayleben Family Venture Shaping Program through the Zell-Lurie Institute for Entrepreneurial Studies. The new program is being funded by a gift from Aastrom Biosciences president & CEO Tim Mayleben (a U-M graduate) and his wife, Dawn Mayleben. The grant program will teach student teams from across the University how to transform identified opportunities into businesses.

"It takes an idea and transforms it into a business structure," says Tim Faley, managing director of the Zell-Lurie Institute for Entrepreneurial Studies at the University of Michigan's Ross School of Business. "We see a lot of ideas."

The U-M Venture Shaping Program will provide teams of student entrepreneurs with guidance from faculty while going through a three-part process. That process includes directed discovery, value system synthesis, and profiting from capabilities framework evaluation. The idea is to prove that the startup meets a validated market need and will provide a cash prize so they can take the business to the next level.

Breaking through that key wall of building a business (taking it from an idea to a reality) is the major constraint that has been identified by U-M officials. The Venture Shaping Program hopes to help 25 student-led business each year.

"We see it as the big bottleneck in the process," Faley says. "We're happy to have a program to handle that program."

Source: Tim Faley, managing director of the Zell-Lurie Institute for Entrepreneurial Studies at the University of Michigan's Ross School of Business
Writer: Jon Zemke

Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

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.

Real Time Farms got its start in Ann Arbor 18 months ago and is going national today as it continues to spread food transparency across the U.S.

The Ann Arbor-based start-up is a combination social media tool for foodies and a nationwide online directory of farmers markets and what's available there. Users can share pictures of local markets and farm stands by posting them on the site, along with product information and handy tips for other patrons.

"This isn't about sustainable or local," says Cara Rosaen, co-founder & director of vegetable outreach for Real Time Farms. "It's about transparency."

Cara Rosaen co-founded Real Time Farms with her husband Karl, a former Google employee who moved back to Michigan to start the venture. They have tripled their team to six core members and another 20 interns.

"Part of it is that this is the right time," Rosaen says. "The other part is we have a really solid tech team. That has really helped us grow."

Real Time Farms has recently launched its software and has been gaining traction with users. More than 32,000 photos have been uploaded to its site. It just launched its software for restaurants so it can spread food awareness further into the food chain.

"It's really just a matter of capturing people's enthusiasm that exists and creating systems to channel it," Rosaen says.

Source: Cara Rosaen, co-founder & director of vegetable outreach for Real Time Farms
Writer: Jon Zemke

Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

What was once uRefer is now Amplifinity, and it's growing.

The downtown Ann Arbor-based startup landed a multi-million dollar seed capital round last year and has leveraged it to hire four people in the last year. The 5-year-old firm also plans to bring on interns this summer as it continues to build up its team beyond its staff of 15 people.

"You'll definitely see us growing," says Molly McFarland, marketing director of Amplifinity. "You'll definitely see us hiring."

Amplifinity specializes in referrals and helping companies, such as ESPN and Direct TV, maximize these referral systems. The company rebranded in December to reflect that the referral business has changed to the point where it's not just as simple as one person telling another to use this product.

"What we found is that the world of advocacy and building brands is much bigger than that," McFarland says. "There is so much more than that linear referral process."

To capitalize on this, Amplifinity has expanded its product and service offerings. For instance, it has added software that allows people to upload video testimonials and other similar services where companies can capitalize on Internet advocacy through channels like social media.

Source: Molly McFarland, marketing director of Amplifinity
Writer: Jon Zemke

Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Had you asked Lisa Kurek her opinion about the potential of growing biotech start-ups in Michigan late last year, she would have told you to ask her again in a month or two. Ask her today, and the managing partner of Biotechnology Business Consultants won't put off the question. She will exude confidence.

Kurek points out that the recent reauthorization of the federal Small Business Innovation Research grants brought stability back to the bio-tech space. Add to that the state of Michigan recently reauthorizing spending up to $500,000 annually over three years for bio-tech business consulting, and the woman behind the Ann Arbor-based consultancy is feeling optimistic.

"All of my clients breathed a sigh of relief," Kurek says. "It allows us to really ramp up what we were doing. This is a really good time after a lot of upheaval."

Biotechnology Business Consultants specializes in helping bio-tech start-ups develop their technologies and grow their business, a process that often takes several years of work and millions of dollars in investment. The company recently added an independent contractor to its staff of five employees. Kurek plans to create two more full-time jobs in the next year as her 22-year-old firm works to build up its new clients.

"My goal is not to be a high-growth business but to be a high-impact business," Kurek says. "I want to focus on our new clients we just landed."

Source: Lisa Kurek, managing partner of Biotechnology Business Consultants
Writer: Jon Zemke

Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

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.

The Michigan Business Challenge, a business plan competition at the University of Michigan, is entering its second of four rounds this week, judging 14 student-led start-ups that span a wide variety of industries.

The Michigan Business Challenge attracted 45 teams, comprising 145 students interested in starting their own business. They are competing for $60,000 in cash prizes, including the grand prize of $20,000.

"We have a number of web-based businesses," says Anne Perigo, program coordinator for the Zell-Lurie Institute for Entrepreneurial Studies at the University of Michigan's Ross School of Business and the manager of the Michigan Business Challenge. "We have a number of student teams that are looking at medical devices or assistive technologies."

The student-led start-ups complete an executive summary for their proposed business. Those that make it to the later rounds of the competition write a marketing and financial overview for their company and finish a complete business plan. These teams also pitch their businesses to a panel of judges comprised of entrepreneurs and investors. The competition will wrap up by Feb 17.

"The Michigan Business Challenge is one of several programs the Zell-Lurie Institute and Ross School of Business runs that engages student entrepreneurs across the university," Perigo says. "Our number one goal is to give these students the tools and experience to become successful entrepreneurs."

Source: Anne Perigo, program coordinator for the Zell-Lurie Institute for Entrepreneurial Studies at the University of Michigan
Writer: Jon Zemke

Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Cybernet Systems watched its revenue numbers climb in 2011 and expects its staffing numbers to rise this year as well.

The Ann Arbor-based tech firm has enjoyed 10 percent revenue growth in 2011 through increasing sales of its Information Assurance Management System (a data protection service) and new contracts with the U.S. armed forces. Cybernet Systems plans to keep going after this business this year and expects to expand its Ann Arbor headquarters staff to 50-60 people by adding 10-20 jobs in 2012.

"We're going after these larger types of contracts and more sales," says Charles Cohen, vice president of research & development for Cybernet Systems. "That will tie into more jobs in Michigan."

Cybernet Systems has made a large chunk of its sales to the U.S. armed forces. It has created and sold an ammunition sorting machine used by ground troops. It has also developed an enhanced PC tablet computer called the Xplor that helps soldiers with data collection and inventory maintainence.

"Our other programs are growing quite nicely," Cohen says.

Source: Charles Cohen, vice president of research & development for Cybernet Systems
Writer: Jon Zemke

Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Hyundai is sinking $15 million into its Hyundai America Technical Center, an investment that promises to create 50 jobs in the Ann Arbor-based facility.

"The Ann Arbor area has had the good fortune of being an increasingly bigger cluster of automotive research and development activity among a number of different nameplates," says Paul Krutko, president & CEO of Ann Arbor SPARK.

The Ann Arbor area is home to a number research and development centers for automakers, most notably Toyota, which employs more than 1,000 people at two technical centers. Hyundai plans to invest $5 million into its technical center, the Hyundai America Technical Center, in Ann Arbor over the next five years.

The Korean automaker is also building a world class Hot/Cold Weather Dynamometer Test facility at its Superior Township location south of Ann Arbor. To help make this investment attractive, the state of Michigan will fund the construction of a new power substation that will power the building.

Ann Arbor SPARK also played a key role in making this investment possible. The economic accelerator agency helped Hyundai secure more than $2.5 million in new business development incentives from the state and Superior Township.

Source: State of Michigan and Paul Krutko, president & CEO of Ann Arbor SPARK
Writer: Jon Zemke

Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Ann Arbor-based re:group is growing its bottom line and staff by adding more health-care businesses to its customer list.

"We really have made a concerted effort to grow our business," says Carey Jernigan, director of business development for re:group. "We expect to grow significantly this year. I hope to double our revenue."

The downtown-based firm that specializes in branding and Internet marketing has added the likes of St. Joseph Mercy Health System to its roster. The firm now serves companies in a variety of industries, such as finance, bio-tech, retail and franchising.

re:group has hired three people over the last year, expanding its staff to 20 employees, a few independent contractors, and an intern. It is also looking to add an account executive later this year, on top of a few more expected hires.

Source: Carey Jernigan, director of business development for re:group
Writer: Jon Zemke

Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

CytoPherx pulled down one of the largest venture capital rounds in recent memory, raising $34 million from the likes of Early Stage Partners, ONSET Ventures and Capital Midwest Fund.

David Weaver, chairman & founder of Great Lakes Angels, a group of about a dozen angel investors based in Bloomfield Hills, first reaction to the amount of money raised by CytoPherx was "Wow, that's a lot of money." He said a seed round that big will give the start-up a lot of flexibility to commercialize its product.

"That gives them room to breathe," Weaver says. "That's a big deal to have that much money around."

The Ann Arbor-based bio-tech start-up plans to use the funds to complete its clinical trials and gain FDA approval for its anti-inflammatory therapy for acute kidney injuries. CytoPherx's therapy can be used to ease the pain of intensive care unit patients with kidney injuries, such as Renal failure, suffering from extreme inflammation. It is also expected to help patients recover and live more full-filling lives.

CytoPherx spun out of the University of Michigan in 2007. It has raised several million in seed capital before this latest financing round, including a $5 million raise in 2010. The start-up has its eyes on the more than 2.7 million hospitalized patients in the U.S. diagnosed with acute renal failure. Approximately 160,000 receive Continuous Renal Replacement Therapy, which CytoPherx hopes to make it technology a part of, representing what it claims is a multi-billion dollar potential market.

Source: CytoPherx and David Weaver, chairman & founder of Great Lakes Angels
Writer: Jon Zemke

Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

When HealPay's co-founders, Erick Bzovi and Lancelot Carlson, went looking for seed capital to grow their software startup, the pair quickly realized their best chance for finding funding wasn't necessarily with traditional venture capital firms. The Ann Arbor-based start-up found success with angel investors familiar with the debt collection industry.

"We went with people who understand the space," Bzovi says. "It was a lot easier."

HealPay is developing web & mobile apps that make collecting money easier. The 18-month-old start-up has raised a six-figure seed capital round Bzovi characterizes as worth "a few hundred thousand dollars."

"It provides us a runway for the next 12-18 months," Bzovi says. He adds the money will allow Bzovi and Carlson to focus on the start-up full-time, further develop the software and market it. The pair hope to double their staff of two people over the next year as they start to roll out the software.

HealPay plans to open-source its invoice application, called BillerApp, to the software development community early this year. The idea is to disrupt the invoice market with our free invoice application. The company plans to use that free software as a launchpad to draw in customers to its SettlementApp, which is plans to monetize.

Source: Erick Bzovi, co-founder of HealPay
Writer: Jon Zemke

Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

3.7 Designs has traditionally made its money through hourly billing for its software and website work. These days the Ann Arbor-based firm is moving toward creating more training products and other software programs that provide more reliable revenue streams.

"Our focus now is how do we create a product we can maximize our time," says Ross Johnson, CEO of 3.7 Designs. He adds that these sorts of training products and software programs come with steady customer bases that should allow for more growth.

3.7 Designs currently employs four people, including an intern. That team is currently working to develop and release three products over the next year and improve three of its existing products in the same period. Johnson hopes to add another 2-3 people with that new work.

"We're focusing on developing something with a steady customer base," Johnson says.

Source: Ross Johnson, CEO of 3.7 Designs
Writer: Jon Zemke

Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.