An unsuccessful company isn’t necessarily a failed one. Take the example of Nephrion.

The Ann Arbor-based start-up was founded from intellectual property that once belonged to another start-up. Both companies were founded by Dr. H. David Humes, a professor of Internal Medicine at the University of Michigan and a serial entrepreneur.

Nephrion took some of the intellectual property from the first company and combined it with other IP and brought in three people looking to make something from nothing. That something is a firm that employs nine people and an intern. It's just received $2 million from Michigan's 21st Century Jobs Fund on top of another $2 million in venture capital. It expects to eventually create 200 jobs with the investment with nearly 10 positions created within the next year.

Nephrion develops proprietary medical devices designed to treat several large unmet medical needs such as End Stage Renal Disease, Acute Renal Failure, Cardio-Pulmonary Bypass Surgery, Sepsis and other inflammatory conditions. The $4 million will help fund clinical trials on the devices, which are expected to be commercialized in 2010-11.

"We will use external resources," says Clint Dederick, chairman and CEO of Nephrion.

In the mean time the company is focusing on clinical trials and raising capital. It has already raised approximately $3 million from four prominent Mid-Western venture funds.

Source: Clint Dederick, chairman and CEO of Nephrion
Writer: Jon Zemke