Ghostly International capitalizes on a successful decade in Ann Arbor
Source: Concentrate, 5/27/2009
Ten years ago this August the idea behind Ghostly International was only a dream for Sam Valenti, a dream that the University of Michigan student incubated in his dorm room in Couzens Hall.
Today it's an internationally recognized electronic and ambient music label that supplies pay checks for six employees, a handful of independent contractors and numerous musical artists. It continues to grow, moving into places like retail stores and iPhone applications.
"We've tried to move with the times," Valenti says. "Obviously, the record industry was in tumult or recession before the country was."
That doesn't mean Ghostly is abandoning the music that made it famous. It still plans to produce the records and shows that its fans yearn for, but also use them as a launching pad for diversify its business plan. Among its target industries are film and beauty shows.
Valenti expects such diversification will lead to further expansion of the record label's payroll and its fan base. But big growth or no, he still plans to keep the business' headquarters in downtown Ann Arbor.
Source: Sam Valenti, founder and owner of Ghostly International
Writer: Jon Zemke
Ann Arbor’s Nanosystems turns sustainable foam into big growth
Source: Concentrate, 5/27/2009
The products from John Nanos' company Nanosystems find themselves in the oddest places, ranging from surfboards to ear plugs to big, nasty, bleeding wounds.
Nanos, a University of Michigan graduate, took his experience in specialty foams nearly four years ago and created his own company that specializes in the organic versions of these foams. Today that company employs four people, three independent contractors and an intern.
The company now makes soy bean-based foam used in the rigid cores of surfboards and those aforementioned ear plugs and cosmetic foams. The former manufacturer of those surfboard cores ruled the market but lost it when their signature material turned out to be less than environmentally friendly. Nanosystems stepped in with its organic foam and an industry was cornered.
"It helped my clients find an environmentally friendly material to use," Nanos says.
One of the most promising sectors is using the foam for medical purposes. The foam has an almost insatiable appetite for absorbing liquid. Nanosystems is making an organic foam that could be used in deep injuries to soak up blood, water and other bodily fluids.
"Instead of using gauze they’re starting to use foam," Nanos says.
Nanosystems, a product of Ann Arbor SPARK, hopes add as many as 6-8 technologists next year as it breaks into new markets and grows vertically. The idea is to grow vertically into manufacturing its own products, which will mean more local jobs on top of the 6-8 already planned.
"There's going to be a tipping point where it makes more sense for us to make it ourselves," Nanos says.
Source: John Nanos, president and owner of Nanosystems
Writer: Jon Zemke
Incept BioSystems plans to double payroll
Source: Concentrate, 5/27/2009
Incept BioSystems is gearing up to become Ann Arbor’s next start-up success story if only it can get out of the incubation stage.
The University of Michigan spin-off employs seven people downtown, but hopes to double that number within the next year when it commercializes its first product. The company, founded in 2005, is trying to reset the industry standard for in-vitro fertilization.
"We will be providing a superior method for embryonic development used for in-vitro fertilization therapy," says Chris Bleck, CEO of Incept BioSystems. That loosely translates to helping significantly increase the success rate of in-vitro fertilization for mothers trying to have babies.
Incept BioSystems is in the final stages of developing its product. It hopes to start human clinical trials this year and submit for FDA approval before the end of the year. Commercialization will happen so after, which will mean more jobs in manufacturing, quality assurance, sales and marketing.
The company was recently named as one of Michigan's 50 Companies to Watch by the Edward Lowe Foundation.
Source: Chris Bleck, CEO of Incept BioSystems
Writer: Jon Zemke
Ann Arbor VeoProject focuses on growth and partnerships
Source: Concentrate, 5/27/2009
Ann Arbor's VeoProject continues to grow as evidenced by its expanding payroll.
Ann Arbor-based Bitcarvers, the creators of VeoProject, have increased its employee base to 10 people and are looking to add interns this summer. It hopes to add more employees later this year.
"The market for our software has been expanding dramatically over the last year," says John Wyderko, chief technology officer of VeoProject. He adds that southeast Michigan is "a gold mine" for finding quality project managers.
VeoProject is a lot like Microsoft Project. It helps users manage projects, tasks and their everyday worklife ...except its done from a website. This allows users to access it from anywhere they can get an Internet connection. In comparison, Microsoft Office is run from a single computer or system. The idea is to make it appealing to business travelers far from their home computing base or telecommuters working from home.
Bitcarvers are now incorporating VeoProject with social media outlets, such as Twitter. The idea is to use these programs to help keep projects and their managers on track. Bitcarvers are also working to establish partnerships to help it hit its financial milestones and spur more growth.
Source: John Wyderko, chief technology office for VeoProject
Writer: Jon Zemke
Love Book turns gift for wife into Ann Arbor start-up
Source: Concentrate, 5/27/2009
A few years ago, Rob Patterson created a gift for his wife that he hopes will pay dividends for them for years to come.
Patterson made a small book that explained why he loved her so much. It was a Christmas gift that meant so much to her that it turned on the CFL over his head.
"She loved it and thought it was the greatest gift she had ever gotten," Patterson says.
That inspired the creation of Love Book last year. The four founders have been perfecting the website that allows people to create customized message books for anybody they care about. It has only been live for a few weeks now.
"We’re trying to figure out our marketing plan right now," Patterson says.
The books can be used for anything from birthdays to anniversaries or other important days. "Pretty much any time you want to give a gift to somebody you love," Patterson says.
Love Book is still developing its product. It hopes to hire and create a few spin-off businesses in the future, but right now the foursome just wants to establish their product.
Source: Rob Patterson, founder of Love Book
Writer: Jon Zemke
U-M takes in $5 million gift, expands Google agreement
Source: Concentrate, 5/27/2009
The University of Michigan took two big steps forward recently, accepting a $5 million gift and expanding its relationship with Google.
The D. Dan and Betty Kahn Foundation recently awarded $5 million to the University of Michigan Cardiovascular Center. The money will fund research in biomedicine and bioengineering, such as understanding irregular heartbeats and other heart or blood vessel diseases.
Dr. Kim Eagle, a director of U-M's Cardiovascular Center, says this money will help push forward the research of dozens of doctors at U-M and Israel's Technion University. The money is expected to last many years and produce a number of collaborations in higher education and medicine under the name of Dr. Kahn, a West Bloomfield-based physician.
"He is establishing a legacy that will last forever," Eagle says.
U-M is also continuing its legacy of working with Google. The two institutions have expanded their agreement to digitize U-M’s library so it will create millions of copies of U-M texts. The expansion is made possible thanks to the settlement reached between Google and a broad class of authors and publishers.
The idea behind the project is to put the enormous wealth of U-M’s libraries at the fingertips of any Internet surfer in the world. Making these 8 million books and more (Google has similar partnerships with other notable libraries) available will give everyone equal access to this wealth of information.
Source: Dr. Kim Eagle, a director of U-M’s Cardiovascular Center and the University of Michigan
Writer: Jon Zemke
Essen Instruments expands into research, plans to hire 40
Source: Concentrate, 5/20/2009
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 large portion 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 Instruments
Writer: Jon Zemke
Velesco to invest $1.8 million, hire 35 people
Source: Concentrate, 5/20/2009
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 Services
Writer: Jon Zemke
Pre-Seed Capital Fund hits three Ann Arbor/Ypsilanti businesses
Source: Concentrate, 5/20/2009
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 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 from across the state have received
seed money from the fund since its inception.
Source: Skip Simms, administrator of the Michigan Pre-Seed Capital Fund
Writer: Jon Zemke
U-M gets ready to move into old Pfizer campus, create 3,000 jobs
Source: Concentrate, 5/20/2009
The transition of Ann Arbor’s Pfizer campus is nearly complete as the University of Michigan prepares to move onto the 174-acre research facility.
U-M is expected to close on the campus it bought for $108 million within the next couple of weeks. Move-in will begin this summer with the first offices opening this fall. Laboratories could open by early next year.
The deal is expected to create between 2,000-3,000 jobs within the next 10 years. Those would replace the jobs that were lost when Pfizer closed the facility in 2007. How many of those jobs will be created right away, however, isn’t known yet.
"It's very, very hard to be specific beyond that because of we’re in the planning process right now," says Stephen Forrest, dean of research for the University of Michigan.
The campus is expected to provide a springboard for new discoveries, job creation and educational opportunity at the university. The facility is adjacent to U-M’s North Campus, so a number of natural synergies are expected to occur with the addition of the old Pfizer facility.
Source: Stephen Forrest, dean of research at the University of Michigan and the University of Michigan
Writer: Jon Zemke
Arboretum Ventures makes 2nd investment, plans for 1-2 more
Source: Concentrate, 5/20/2009
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 or 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 Ventures
Writer: Jon Zemke
Hands on Tech plans to connect Ann Arbor’s new economy with kids
Source: Concentrate, 5/20/2009
The Ann Arbor Hands-on Museum and local new economy companies. Two great tastes that taste great together... to borrow a marketing phrase.
Yeah, they seem like a mismatch, but the Hands-On Tech Event hopes to make obvious the natural synergies between the two.
"We
think there is a natural connection there," says Michael Cole, one of
the organizers of the event and president of the Technology Industry
Group for Bank of Ann Arbor. "This is where the kids go to get their first taste of science before they go onto become scientists and engineers."
Not
only do kids and tech go together, it's an opportunity for the Hands-on
Museum to introduce attendees to their myriad resources.
The
event, set for May 30 between 6-9 p.m., is expected to introduce the
museum to new economy entrepreneurs and businesses as both a resource
and networking opportunity. After all, Ann Arbor is known as a
kid-friendly town, so what better way to merge its strengths --kids and
high tech innovation-- than to highlight them into one event?
The Hands On Museum is located in downtown and has resources such as meeting rooms that could be used by local companies.
For information on the event, call (734) 995-5439 or click here.
Source:
Michael Cole, one of the organizers of the Hands-On Tech Event and
president of the Technology Industry Group for Bank of Ann Arbor
Writer: Jon Zemke
DNA Software doubles staff in downtown Ann Arbor
Source: Concentrate, 5/13/2009
DNA Software has been in Ann Arbor since
2000, but it really started to hit its stride just last year. That's
when the downtown-based firm solidified its funding and doubled its
staff to 15 people and a few independent contractors. It's also working
to set up an internship program with local colleges.
"We're
working with the local talent to make a difference in Ann Arbor," says
Jeff Machak, vice president of business development for DNA Software.
The software company recently hired a Kalamazoo College graduate. The
software company recently hired graduates from Wayne State University,
University of Michigan, and Kalamazoo College. Machak is even a Pfizer
refugee that DNA Software hired in 2007, shortly after Pfizer
closed its Ann Arbor campus. DNA Software is currently looking for the
right local talent and hopes to expand its staff in the relatively near
future.
DNA Software, recently named one of Michigan's
50 Companies to Watch,
conducts original wet lab research, develops molecular biology software
and provides scientific consulting. The company’s
technology (technology spun off from Wayne State University)
helps scientists to quickly and accurate
design, simulate and analyze DNA and RNA-based experiments. These are often used to help predict how maladies, such as those caused by flu, evolve.
The company is developing new technology for 3D structure
modeling of RNA-based molecules and
plans to use that technology for drug discovery applications like antibiotics.
Source: Jeff Machak, vice president of business development for DNA Software
Writer: Jon Zemke
ThreeFold Sensors raises VC cash, plans to hire in Ann Arbor
Source: Concentrate, 5/13/2009
Within the next couple of years, ThreeFold Sensors plans on growing three fold ...in a couple of different ways .
The
Ann Arbor-based employs eight people and six independent contractors.
It received $2.6 million in Michigan 21st Century Jobs Fund money in
2007 to commercialize its sensor technology.
Well, the company
has been working on that for the last 18 months. It is at the tail end
of closing on another $4.8 million in financing soon. Once that money
comes in the firm expects to expand its staff to about 35 people.
"Once we raise that money we hope to raise the number of employees," says Richard Farkas, CEO of ThreeFold Sensors.
ThreeFold Sensors, recently named one of Michigan's 50 Companies to Watch,
was originally set up in 1992. Its commercial sensor technology is for
medical diagnostic platform for point-of-care treatment. That means
emergency room staff would use it to help assess a patient's condition
when time and information can be the most valuable.
Farkas
says ThreeFold Sensors' technology is 1,000 more sensitive and works
much faster than what is in the market today. He thinks it could prove
to be a "game-changer" when it hits the market in 2011.
Source: Richard Farkas, CEO of ThreeFold Sensors
Writer: Jon Zemke
Sensei Change sets up shop at Ypsilanti's SPARK East
Source: Concentrate, 5/13/2009
Diana Wong is a person who specializes in
change. One might even call her an expert. But it doesn't take her
well-trained eye to recognize the change that's washing over downtown
Ypsilanti.
"It's an incredibly dynamic place," Wong says. "The
energy there is dynamic. It's in the early stages of renewal and
renaissance. Not everybody sees it but there are a lot of pieces in
place."
One of those key places is Ann Arbor SPARK's new East Incubator.
The office space for entrepreneurs on Michigan Avenue next to
Bombadill's Café is where Wong choose to set up the office for her new
start-up – Sensei Change.
The Eastern Michigan University
business professor's firm specializes in handling change in the
business world. That could be everything from helping professionals
switch career paths to helping corporate executives make a successful
switch to entrepreneurism. Wong makes sure these people make the
changes in their strategies and technique to enable a successful switch.
"I find that a lot of strategy doesn't happen without fundamental change," Wong says.
What's
staying consistent is the size of the 5-year-old company. Right now
it's just her and four independent contractors. She hopes to change
that by adding more independent contractors and even an employee or two
when she starts taking on more work.
Source: Diana Wong, president and CEO of Sensei Change
Writer: Jon Zemke