Concentrate - Innovation & Job News

U-M helps lead new transportation consortium

Wed, 10 Mar 2010 00:00:00 GMT

If there is one thing Ann Arbor knows its research. And if there's one thing Metro Detroit knows its transportation. The two areas are combining these two strengths to create Transforming Transportation: Economies & Communities.

The University Research Corridor's new program promotes multidisciplinary, multi-institutional research that supports industry, community and government policy-making and planning. The University of Michigan and Wayne State University will lead the charge with this new effort that hopes to serve as a nerve center for transportation innovation in the regional, state, national and global economies.

"It's an idea who's time has come," says Allen Batteau, an anthropologist who heads Wayne State's Institute for Information Technology and Culture.

Both U-M and Wayne State (along with Michigan State University) are holding meetings to help organize the program's first transportation summit in Detroit in October. The idea is to leverage the region's location and assets, along with creating synergies between university, community, government and business when it comes to moving people and goods from Point A to Point B.

Batteau believes the new program will help spearhead innovation in the sprawling transportation sector and create economic opportunity locally. In fact he sees this as a once-in-a-generation opportunity to rethink fundamental assumptions through a unique collaboration of regional leaders.

"Every time we make a leap ahead in transportation infrastructure, whether it's the Transcontinental Railroad or the Erie Canal or the expressway system, it is what kicked economic development into overdrive. In other words, transportation investment is vital."

Source: University of Michigan and Allen Batteau, an anthropologist who heads Wayne State's Institute for Information Technology and Culture
Writer: Jon Zemke

Ypsilanti, Ann Arbor start-ups take big bite of microloans

Wed, 10 Mar 2010 00:00:00 GMT

The Current Motor Co sees a promising future for its business, especially now that it has received a small-yet-significant chunk of change from the Michigan Microloan Fund Program.

The company and its staff of six makes electric mopeds and motorcycles. It will use the money to develop a new moped scooter, among other things.

"We're using it to help expand our market and protect our intellectual property by writing patents," says John Harding, founder of Current Motor Co.

The Ypsilanti-based start-up is one of four companies to split $155,000 in loans from the Michigan Microloan Fund Program. The other company's include Avicenna Medical Systems, Shepherd Intelligent Systems and TRIG Tires and Wheels. These companies will use the loans, which range between $10,000 and $50,000, to help further develop and market their products and build their core business.

Avicenna Medical Systems, a University of Michigan spin-off based in Ann Arbor, develops health-care software applications. Shepherd Intelligent Systems, another U-M spin out based in Ann Arbor, creates software that predicts arrival times for mass transit vehicles, like buses. Southfield-based TRIG Tires and Wheels is developing a anti-roll off and run-flat system for vehicle tires.

The $1.5 million Michigan Microloan Fund Program is made up of three distinct microloan funds, including the Eastern Washtenaw Microloan Fund ($225,000), Michigan Pre-Seed Capital Fund ($1 million) and the Ann Arbor/Ypsilanti Local Development Financing Authority ($275,000). The Michigan Microloan Fund Program, which is administered by Ann Arbor SPARK, has distributed $911,500 to 23 companies since last year.

Source: John Harding, president of Current Motor Co.
Writer: Jon Zemke

Hook adds 4 people in downtown Ann Arbor, plans more hires

Wed, 10 Mar 2010 00:00:00 GMT

Hook is growing in just about every way imaginable. The downtown Ann Arbor-based firm is adding people, clients and office space as it starts to assert itself in the city's growing service-based economy.

"We've been lucky," says Aaron Schwartz, co-founder of Hook. "We have some great clients who keep coming back to us. There is a great demand for our services right now."

That means the commercial-art start-up has expanded its payroll to 10 people by adding four new employees since the last time we checked in with it in late 2008. It has also quadrupled its office space to 2,500 square feet.

The 4-year-old firm has also grown its client base and moved itself up the advertising food chain. It has gone from producing auto show materials to moving onto a broader range of interactive advertising. Think: Building micro sites and taking over Internet homepages.

The refocusing has allowed the firm to plan for even more growth. It hopes to hire three more people this year and take over some more of its space in its second-floor commercial space in downtown Ann Arbor.

"We hope to continue growing," Schwartz says. "We get new business every other day. We hope to add more people."

Hook got its start when two former University of Michigan students, Schwartz and Michael Watts, decided to take the entrepreneurial leap. Some of its first work incorporated 3-D imagery into commercial art, such as animation and illustrations. One of the firm's first clients included part of Toyota's North American International Auto Show display in Detroit.

Source: Aaron Schwartz, co-founder of Hook
Writer: Jon Zemke

Avicenna Medical plans to hire in Ann Arbor

Wed, 10 Mar 2010 00:00:00 GMT

The leadership behind Avicenna Medical Systems sees 2010 as a break-out year for the University of Michigan spin-out.

The Ann Arbor-based firm creates healthcare software and thinks it can add six people this year as it claims a small piece of the federal stimulus funds. It also landed a bit of money from the Michigan Microloan Fund Program to help shore up its marketing efforts.

"We recognize that our biggest weakness is in marketing and sales," says Erdwing Coronado, president and CEO of Avicenna Medical Systems.

The company got its start when a small group of doctors and IT professionals at the University of Michigan Hospital started developing healthcare software applications in 2001. They incorporated the company in 2006 and Avicenna now employs four people and an independent contractor.

The firm has two primary products, including one that catalogs and manages patients with chronic health conditions. The other program deals with clinical procedures. Both can cover dozens of specialties, such as cancer and infectious diseases.

"We saw they had a commercial potential so we decided to take advantage of the opportunities and work with the University of Michigan," Coronado says.

Source: Erdwing Coronado, president and CEO of Avicenna Medical Systems
Writer: Jon Zemke

Ann Arbor's ERT Systems adds 1, plans for growth

Wed, 10 Mar 2010 00:00:00 GMT

ERT Systems growth has been slow, steady and growing enough to expand its employee base.

The Ann Arbor-based software start-up has added one person over the last year, bringing its staff to six people. It is also in the midst of hiring another person, expects to add one more person this year and hopes to bring on a couple more in 2011.

"We should pretty easily double in size this year," says Dennis Carmichael, president of ERT Systems. "We're also signing some contracts for 2011 that should allow us to maintain that growth rate."

ERT Systems creates a product that allows first responders and military-style commanders to know exactly where their forces are at all times. Its core product, Onsite ERT (Emergency Resource Tracking), uses a GPS-like system to provide a complete view of the operating theater in real time using lightweight tags and a fast IT system that transmits the information on rugged laptops.

The start-up has signed on 30 new customers and a Canadian reseller in 2009. It's in negotiations to land a national reseller this year.

The business was born four years ago when John Ellis, a veteran firefighter, ran into Dennis Carmichael, an IT services company owner.

Source: Dennis Carmichael, president of ERT Systems
Writer: Jon Zemke

Miilo targets Internet sales for minority cosmetics

Wed, 10 Mar 2010 00:00:00 GMT

The problem: Finding the best cosmetics for people of color. The solution: Miilo.

At least that's what the three budding entrepreneurs at the University of Michigan's Ross School of Business are hoping happens with their new start-up. Kimberly Dillon, Oswaldo Maxwell and Kelley Washington are creating a website that specializes in selling cosmetic and hair-care products for women of color.

"There is a contingent of us who regularly go to Ypsilanti or Detroit to buy beauty products," says Dillon, a U-M MBA student and founder of Miilo. "It's a universal problem. Anytime you go to a new city you have to find the store that sells the products because they aren't sold at mass retailers."

The Ann Arbor-based start-up recently won $1,000 from the Michigan Business Challenge, which is sponsored by U-M's Zell Lurie Institute for Entrepreneurial Studies. The trio of women is using that cash to finish developing their website, which they hope to launch before the end of the year.

Source: Kimberly Dillon, founder of Miilo
Writer: Jon Zemke

Ann Arbor's ePack doubles in size, plans to hire more

Wed, 03 Mar 2010 00:00:00 GMT

The gadgets that make technology so cool these days aren't exactly resilient on the inside. That's where ePack comes in, helping tech firms protect their latest innovations.

The Ann Arbor-based firm is developing technology that helps protect micro devices, such as the motion sensor in a Nintendo Wii. Without such protection these micro devices would be dead on arrival.

"A small amount of moisture or small particles can ruin their performance," says Jay Mitchell, president and CEO of ePack.

The 2-year-old University of Michigan spin-off is starting to raise grant money, which has allowed it to go from its two founding members to a staff of three people, an independent contractor and a couple of advisors. The firm hopes to hire one more person this year and several more in 2011.

For right now it's trying to finish development of its technology so it can go for equity investment in 2011 or later. The long-term plan is to reach the point where it can open a manufacturing facility and produce the technology it is developing.

Source: Jay Mitchell, president and CEO of ePack
Writer: Jon Zemke

U-M student start-ups take 98K from Mich Biz Competition

Wed, 03 Mar 2010 00:00:00 GMT

More seed capital is creeping into the coffers of local start-ups now that the Michigan Business Challenge has awarded nearly $100,000 to student-led start-ups from the University of Michigan.

The Zell Lurie Institute for Entrepreneurial Studies at the U-M Ross School of Business awarded the grants to these new economy-based start-ups for excellence in new business plans and concepts. Eighty-five teams competed for the grants with a couple dozen walking away with money. That's a new record for the competition that is now in its fourth year.

Two of the start-ups that landed four figures in seed money include $2,000 to North Coast Fisheries (an organic fish farm firm) for "Best Written Business Plan" and $1,000 to Miilo (an e-commerce site for cosmetics for women of color) for advancing to the final round. Each found immediate uses for their winnings.

"These funds are a great first step as far as exploring all of the legal issues to create a legal entity," says Aaron Skrocki, a MBA student at U-M and CEO of North Coast Fisheries.

"The $1,000 went straight to the web designer," says Kimberly Dillon, a U-M MBA student and founder of Miilo.

The Michigan Business Challenge lets the student entrepreneurs receive support, training and feedback from judges at each phase of the competition. The students are exposed to a rigorous business development boot camp that reinforces the notion that a solid business foundation is necessary to commercialize a great idea.

A list of this year's major winners of the competition can be found here.

Source: University of Michigan, Kimberly Dillon, founder of Miilo and Aaron Skrocki, CEO of North Coast Fisheries
Writer: Jon Zemke

Wolverine Venture Fund scores 4th profitable exit with Mobius

Wed, 03 Mar 2010 00:00:00 GMT

The Wolverine Venture Fund is starting to hit a nice streak of profitable exits in the local start-up game.

The student-led venture capital fund has announced its fourth profitable exit with the acquisition of University of Michigan spin-off Mobius Microsystems. This is on the heels of its most profitable exit ($2 million) with the sale of HandyLab.

"It allows us to participate but at a higher level now, and for more rounds," says Thomas Kinnear, who oversees the Wolverine Venture Fund. He adds that the fund's small size prevented it from investing in the later rounds of the HandyLab deal, but hopefully that will not happen again.

The fund is 11 years old and worth about $3.5 million. It is run by students at the U-M's Ross School of Business. It has invested in more than 18 companies that have some sort of connection to either Ann Arbor or the University of Michigan. Its current portfolio is comprised of 13 companies.

Kinnear says he would be very surprised if another profitable exit occurred for the Wolverine Venture Fund within the next 12-18 months. However, he says its possible since the Wolverine Venture Fund is invested in maturing start-ups like NanoBio.

"It's hard to say but there are several positive signs," Kinnear says. "But no one counts their money before it's in the bag."

Mobius Microsystems deals with precision all-silicon oscillator technology. More simply said it is a company that makes microchips operate more efficiently. It was acquired by
San Jose-based Integrated Device Technology.

Mobius Microsystems was incorporated in Detroit and eventually moved to California after raising venture capital. It still maintained an office in Ann Arbor as of 2008.

Source: University of Michigan and Integrated Device Technology
Writer: Jon Zemke

Millions more in grants pour in for U-M studies

Wed, 03 Mar 2010 00:00:00 GMT

Seven figures worth of research grants poured into the University of Michigan last week. This time the money is going toward studies examining U.S. elections and the impact of the recession on southeast Michigan.

U-M's Institute for Social Research and Stanford University Institute for Research in the Social Sciences will split $10 million from the National Science Foundation. That money will go toward the American National Election Studies.

The study will measure voter participation and decision-making in this year's mid-term elections and again in the 2012 U.S. presidential race. U-M has participated in this survey since its founding in 1948.

The American National Election Studies is the longest political timeline series in the world, dating back to Pres. Harry Truman's surprise victory in 1948. The study measures the ebb and flow of public opinion, electoral behavior and the overall state of U.S. politics.

Also under U-M's microscope is the effect the current recession is having on southeast Michigan, which is often considered ground zero for these hard times. The John D. and Catherine T. MacArthur Foundation has given a $750,000 grant to the National Poverty Center at U-M's Gerald R. Ford School of Public Policy.

University researchers will study the effects of various housing problems (foreclosures and evictions) and how the economic crisis is impacting vulnerable workers and families in the region.

The three-year survey is expected to help policymakers and researchers better understand the effects of a severe recession, housing crisis, and federal stimulus funding on families living in the Metro Detroit area.

Source: University of Michigan
Writer: Jon Zemke

North Coast Fisheries plans for organic farm fishing

Wed, 03 Mar 2010 00:00:00 GMT

If organic farming has taken off as a profitable, new food-oriented industry, why not organic fish farming? It's a rhetorical question the group of University of Michigan students behind North Coast Fisheries would like to answer.

MBA students Andrew Chamaj, Philip O�Niel, Aaron Skrocki and Matt Turner see a growing demand for fish around the world on a planet where pollution, over-fishing and invasive species are threatening aquatic populations and habitats.

"We see this as a tremendous amount of opportunity around the world," says Aaron Skrocki, CEO of North Coast Fisheries. He once worked for a fish-raising firm and says he saw a pent-up demand for high-quality fish.

The start-up plans to raise fish that are free of antibiotics, growth hormones and methyl mercury. This will provide fish native to the upper Midwest for both consumption at high-end restaurants and grocery stores, and also to stock ponds, lakes and other waterways. There is also potential for a side consulting business that specializes in raising fish and managing them.

The firm hopes to secure land in Jackson County next year and begin operations in 2011-12.

Source: Aaron Skrocki, CEO of North Coast Fisheries
Writer: Jon Zemke

EMU start-ups win seed capital from Skandalaris Biz Plan Competition

Wed, 03 Mar 2010 00:00:00 GMT

Not all business plan competitions are for high-powered start-ups geared toward the new economy. Some, like the The Skandalaris Business Plan Competition, give opportunities for younger entrepreneurs or people who want to start a good, old-fashioned business.

The winners of the Eastern Michigan University Center for Entrepreneurship-based competition include Saline High School alumna and EMU student Carrie Eichler for her business plan called Carrie�s Consignments and fellow EMU student Deborah Merz who won for her plan called Healthcare Integrators. Both received $1,000.

Bill Shaffer took home $700 for his plan called The Shaffer Boys and its presentation. That business plan centers around a carpentry business for commercial buildings. The 23-year-old journeyman carpenter is a senior majoring in construction management at EMU. Shaffer was inspired by his father and uncles who once owned their own carpentry business.

"My whole family is in the carpentry business," Shaffer says.

All business plans were welcome to the competition, which presented its plans at the Sesi Midwest Entrepreneurship Conference. About 300 students, educators and future entrepreneurs attended the annual conference this year.

Source: Eastern Michigan University and Bill Shaffer, owner of The Shaffer Boys
Writer: Jon Zemke

Altarum earns $19M grant, plans 25 Ann Arbor hires

Wed, 24 Feb 2010 00:00:00 GMT

The Altarum Institute is feeling the stimulus these days after receiving a $19.6 million grant from the American Reinvestment and Recovery Act.

The grant from the U.S. Department of Health and Human Services will go toward creating Michigan's health information technology regional extension center, the Michigan Center for Effective IT Adoption. The grant will create 100 jobs across Michigan, including 25 in Ann Arbor where the Altarum Institute is headquartered.

"This project is just a small piece of our growth," says Dan Armijo, director of information and technology strategies with the Altarum Institute.

Altarum employs about 100 people in Ann Arbor and has close ties to the University of Michigan. It employs 350 across the U.S. and has other offices in Washington, D.C., Atlanta, Portland, and San Antonio. It provides consulting services on how to best maximize healthcare services and their delivery.

The Michigan Center for Effective IT Adoption's collective mission is to provide education, outreach, and technical assistance to improve the quality and value of health care delivery in our state. It will service approximately 17,000 primary care providers in Michigan.

Source: Dan Armijo, director of information and technology strategies with the Altarum Institute
Writer: Jon Zemke

Ann Arbor's Weather Underground hits No. 2 in weather web traffic

Wed, 24 Feb 2010 00:00:00 GMT

If you live in the Ann Arbor area and check the Internet for weather forecasts, surf local and go to Weather Underground.

The Ann Arbor-based company runs the second most visited weather website in the U.S. That has translated to upping its revenues and profits by 75 and 25 percent, respectively, in 2009. Last year the firm made four new hires and hopes to add another three in 2010.

Weather Underground ranks as the No. 56 most visited website now (mainly because weather systems have been making headlines) and drops only as low as the 70s when traffic is slow. It averages about 10 million page views per day.

"That puts us a little bit ahead of the New York Times," says Jeff Masters, director of metreology for Weather Underground.

The company spun out of the University of Michigan in 1995, thanks to a few academic types plunging into entrepreneurship with the help of the university and some National Science Foundation funds.

"That was the year the world wide web went commercial," Master says. "It was a bit of untested waters for us."

Weather Underground has its headquarters in Ann Arbor and an office in San Francisco (where most of its employees are based). It is now looking to grow in overseas markets.

Source: Jeff Masters, director of meteorology for Weather Underground
Writer: Jon Zemke

Stout Systems hires 12, plans to add another dozen jobs

Wed, 24 Feb 2010 00:00:00 GMT

One of the favorite words the leadership at Stout Systems likes to use is flexibility. The company is building some solid growth numbers around that word.

"We call ourselves technology agnostic," says John W Stout, president and founder of Stout Systems. "We don't align ourselves with just one system or vendor."

That has allowed the Ann Arbor-based firm to make a dozen new hires, including some recent college graduates, over the last year. The 16-year-old company's staff now stands at 30 employees and the occasional intern. The headcount is up from 25 since we checked in with the company last summer. Plans are afoot to hire another dozen people in 2010.

The software development firm specializes in everything from helping firms with technical staffing, such as computer programmers or project managers, to creating smart phone applications. It's also expanding into the business intelligence sector as it grows beyond Ann Arbor and Michigan.

"We've developed a national reach," Stout says.

Source: John W Stout, president and founder of Stout Systems
Writer: Jon Zemke

Ann Arbor firms Buycentives, Local Orbit receive microloans

Wed, 24 Feb 2010 00:00:00 GMT

Ann Arbor firms took two of the three latest cash infusions from the Michigan Microloan Fund Program. Tree Town-based Buycentives and Local Orbit (along with Lansing-based CIMple Integrations) will split $95,000 from the Michigan Microloan Fund Program.

These fledgling firms will use the funding for product development and delivery. The capital is much needed during a time when credit lines remain largely frozen to small businesses trying to expand.

Ann Arbor-based Buycentives plans to use the cash for product commercialization, software development, legal work, and marketing to potential first clients.

"For us, this working capital accelerates the rate of our growth," says David Goldschmidt, founder of Buycentives. "The process would be the same without it but it would take a lot longer."

Buycentives works with manufacturers to deliver customized sales incentives to online car shoppers during the shopping process. Via information provided by the consumer and parameters controlled by the manufacturer, Buycentives' decision engine generates a personalized incentive in the form of a serialized certificate that can be redeemed at any automotive dealer during a purchase.

Local Orbit connects restaurants, institutions and individuals with local farmers and food producers in one convenient online location. The company is streamlining the process of purchasing local food through a marketplace that combines web-based business and community building tools with the best features of farmers markets and full-service grocery stores.

The 1-year-old Michigan Microloan Fund Program has distributed $706,500 in low-cost loans to 18 companies. These loans range from $10,000 to $50,000 for small, privately-held Michigan businesses that own or license innovative technology. The program is managed by Ann Arbor SPARK.

Source: Ann Arbor SPARK and David Goldschmidt, founder of Buycentives
Writer: Jon Zemke

New U-M research breakthroughs revolve around electricity

Wed, 24 Feb 2010 00:00:00 GMT

Energy, and how best to utilize it, is the focus of a couple of new innovative research initiatives at the University of Michigan.

A National Science Foundation-funded team of scientists at the university is working on ways to make the new hybrid-electric vehicles more self sufficient. That not only includes creating cars that consume less energy, but vehicles that can generate their own. The idea is that if vehicles can harness wind and solar energy either while running or stationary, they will consume less electricity from the traditional grid.

The concept is called vehicle-to-grid (V2G) integration. Jeff Stein, a mechanical engineering professor at the University of Michigan, and his colleagues envision a world where the electric cars become "distributed" storage, doubling as mobile holding tanks for electricity and ready to serve in their down time.

U-M researchers are also developing an artificial foot that recycles energy otherwise wasted in between steps. The idea is to harness this energy that could potentially help amputees walk with greater ease.

The human walking gait naturally wastes energy between steps. Since prosthetics don't produce the same reaction, amputees spend 23 percent more energy to walk. U-M's energy-recycling foot captures the wasted energy and channels it to help an ankle to push off. A microcontroller tells the foot to return the energy to the system at precisely the right time.

The foot was developed by Art Kuo, professor in the University of Michigan departments of Biomedical Engineering and Mechanical Engineering, and Steve Collins, a former U-M graduate student. Watch a video demonstration of it here.

Source: University of Michigan
Writer: Jon Zemke

Ann Arbor, U-M apply for Google broadband project

Wed, 24 Feb 2010 00:00:00 GMT

Ann Arbor and the University of Michigan are pushing to make Tree Town one of Google's guinea pigs, specifically in regards to the cutting edge of broadband development.

The city and the university are exploring a request for information from Google to build ultra-high speed broadband networks in communities across America. Both are working to generate citizen interest in the project from local stakeholders. The idea is to demonstrate why Ann Arbor would be the ideal place to conduct this project.

The deadline for the RFI is March 26. A city spokeswoman declined to comment on the process, saying more details will be released in the next few weeks.

For more information about the Google Fiber for Communities, click here.

Source: Lisa Wondrash, communications manager for the city of Ann Arbor
Writer: Jon Zemke

U-M students win Clean Energy Prize with Enertia start-up

Wed, 17 Feb 2010 00:00:00 GMT

Erkan Aktakka needs a new laptop, and is about to get one thanks to the Clean Energy Prize competition.

Aktakka and two other U-M grad students behind the start-up Enertia just won the entrepreneurial contest, and the hefty purse that comes with it, sponsored by the University of Michigan and DTE Energy. One of the first things the team will do with its new $50,000 in prize money is buy Aktakka a new laptop.

"Right now he's using a computer that has the technology capability of a refrigerator," says Adam Carver, who co-founded Enertia with Aktakka and Tzeno Galchev.

Enertia has developed plans for a device that can harness vibrations to generate electricity to power small electronics, such as remote sensors and surgically implanted medical equipment. The small generators provide renewable electrical power while replacing toxic electrochemical batteries.

Aktakka and Galchev, PhD fellows in NSF Engineering Research Center for Wireless Integrated Microsystems, have been working on the technology with other U-M students for the last few years. They met Carver, a U-M MBA student, at a mingle and mix event in September sponsored by the university's Zell Lurie Institute for Entrepreneurial Studies.

The late 20 somethings hit it off and began aggressively pushing to spin-out the technology and commercialize it. They expect to spend the next two years completing the research and development, perfecting the prototype and working out production, distribution and marketing details. Most of the $50,000 will be spent on proving the technology and preparing it for mass production.

"Those will be the two keystone challenges over the next few years," Carver says. "We'd also like to spend a few thousand dollars making contacts in the marketing and manufacturing sectors."

The Clean Energy Prize is in its second year. This year a total of 32 teams from six universities in Michigan made a go at it. Second place ($25,000) went to Advanced Battery Control, which offers a proprietary smart battery management system and third place ($10,000) was awarded to Green Silane, which provides a low-cost, environmentally benign method for on-site production of silane gas (used in semiconductor, flat-screen display and photovoltaic panel production). Fourth place ($7,000) went to ReGenerate, which manufactures and leases modular anaerobic digestors to institutional food service operators, transforming food waste into on-site renewable energy and nutrient-rich fertilizer products. Video of the awards event can be found here.

Twenty three teams competed last year. They are all pursuing the annual $100,000 prize pool of start-up capital. Last year's winner walked away with $65,000. That company, Algal Scientific, is developing technology that uses algae to simultaneously treat wastewater and produce the raw materials for biofuels. The start-up has secured additional funding and has started operations in an Ann Arbor-area lab with eight employees.

Source: Adam Carver, CFO of Enertia and DTE Energy
Writer: Jon Zemke

Ann Arbor's Advanced Photonix wins big Navy contract, adding jobs

Wed, 17 Feb 2010 00:00:00 GMT

Advanced Photonix is gearing up for some growth in 2010 after holding its ground last year.

The Ann Arbor-based firm and subsidiary Picometrix have been able to keep its employee count at around 160, with the occasional summer intern (the same since we last checked in). But they plan to hire additional people this year. The company has openings (mostly for people with advanced engineering degrees and expertise) right now.

"We've added quite a few people over the years," says Rob Risser, CFO of Advanced Photonix.

Advanced Photonix specializes in making optimum electronic semiconductor sensors. It recently landed a follow-up order worth $2.4 million from the U.S. Navy. The order includes providing a custom photodiode assembly and optical sensor used for the Navy's Guided Missile Systems.

Advanced Photonix's sensors are used by a wide variety of fields, ranging from homeland security's search for WMDs to eye scanners for the healthcare industry. Meanwhile, Picometrix focuses on making sensors for the telecommunications industry, one of the firm's most promising new sectors.

Advanced Photonix went public in the late 1980s when it was a California-based firm. It merged with Picometrix (a University of Michigan spin-off) in 2005 and moved its headquarters and most of its operations to the south side of Ann Arbor.

Source: Rob Risser, CFO of Advanced Photonix
Writer: Jon Zemke

Saline's Flatout Flatbread Co scores capital infusion

Wed, 17 Feb 2010 00:00:00 GMT

Capital might not be flowing with the force it once did, but a couple of Saline entrepreneurs have found a big enough trickle to quench their thirst.

Flatout Flatbread Co. recently received a capital infusion (terms and amount were not released) from the private equity firm North Castle Partners. The Saline-based firm was founded by Stacey and Mike Marsh. It specializes in making, surprise, flatbread and wraps.

Greenwich, Conn.-based North Castle has worked with and helped build niche brands before, such as Naked Juice and Nutrition Solutions. The private equity firm focuses on investing in consumer businesses that promote health and wellness. It also plans to lend expertise in strategy, marketing, operations and IT to help grow the Flatout brand.

Glencoe Capital and the Michigan Opportunities Fund also participated in making the deal happen. Glencoe Capital is a private equity firm focused on lead-sponsored acquisitions and growth equity investments in lower middle-market companies. It participates in the InvestMichigan! initiative established by the state in 2008.

Source: Flatout Flatbread Co.
Writer: Jon Zemke

Wolverine Energy creates new organic energy storage device

Wed, 17 Feb 2010 00:00:00 GMT

More and more technology is spinning out of the University of Michigan. One of the latest examples is Wolverine Energy Solutions and Technologies, which hopes to help make the energy industry more efficient and sustainable.

U-M Chemistry Prof. Ted Goodson III developed the new technology, a storage material that can be used in conductors. Typically that material is ceramic or some other non-biodegradable material. Goodson's technology is made of organic compounds that are far lighter in weight than existing materials.

"We have the technology," Goodson says. "Now we have to do the engineering."

And that requires capital, which requires a business plan and an executive team, and that's how Wolverine Energy Solutions and Technologies got its start last summer. The six-person team hopes to raise enough capital to build a prototype, perfect the technology and make it ready for mass production, a process that is expected to take at least a few more years.

Goodsoon expects the material to have several applications in sectors ranging from military to automotive to industrial to medical.

Source: Ted Goodson III, professor of chemistry at the University of Michigan
Writer: Jon Zemke

Washtenaw ISD wins Michigan College Access Network cash

Wed, 17 Feb 2010 00:00:00 GMT

The Washtenaw Intermediate School District got a little help from its friend, the Michigan College Access Network.

The school district received an $8,000 grant for its Early College Alliance as part of $250,000 worth of grants that went to 17 similar organizations throughout the state. The money is focused on local higher education access networks that help more students attend college. These programs help lower the barriers of entry for students, particularly low-income and first-generation students.

These grants, which come out courtesy of The Kresge Foundation, first became available last fall and are due for another round of disbursement in September. The idea is to help deepen Michigan's talent pool when it comes to new economy centric positions, which often rely on a college-educated workforce.

The Michigan College Access Network plans to dramatically increase the state's college attendance and graduation rates. One of its goals is to raise the percentage of the local population with degrees and credentials from 34 percent to 60 percent by 2025.

The $8,000 grants will allow local education and community leaders to determine what their areas can do to encourage more people to achieve a college education. This will serve as the basis for the creation of a broader plan that incorporates things like mentoring, career exploration, tutoring, college placement test preparation and college admission advising.

Source: Michigan College Access Network
Writer: Jon Zemke

U-M researchers develop new, tiny energy sensor system

Wed, 17 Feb 2010 00:00:00 GMT

The University of Michigan may have developed the most sustainable sensor to date.

Researchers have created a 9-cubic millimeter solar-powered sensor that can theoretically run for the foreseeable future on renewable energy. The sensor is so small it's practically dwarfed by a penny, making it 1,000 times smaller than comparable commercial counterparts, allowing it to use 2,000 times less power.

The research team has spent the last three years working on ultra-low power circuit design (think nano and picowatts) and on current sensor for the last 18 months. It could be commercialized as soon as early 2011.

"There is nothing preventing this system from becoming a commercialized product," says Dennis Sylvester, an associate professor of electrical engineering and computer science at the University of Michigan and the co-principal investigator of the project. "This is a significant step forward."

Part of what makes the sensor so significant is that it spends most of its time in sleep mode. It wakes up occasionally to take measurements, allowing it to conserve energy and only expend what it generates from its minuscule solar panels. The sensor's processor requires about half a volt to operate.

Commercial uses range from bio-medical devices to bridge and building sensors. The technology was recently demonstrated by Greg Chen, a computer science and engineering doctoral student at U-M.

Source: Dennis Sylvester, associate professor of electrical engineering and computer science at the University of Michigan
Writer: Jon Zemke

Ann Arbor SPARK posts big econ dev numbers in 2009

Wed, 10 Feb 2010 00:00:00 GMT

Ann Arbor SPARK's bottom line proved to be quite big for 2009, helping generate $147 million in investment.

The downtown Ann Arbor-based economic development agency is credited with helping create or retain 3,200 jobs, taking part in 11 Michigan Economic Growth Authority deals, attracting seven firms to the Ann Arbor area that in turn created 1,522 jobs and $37.5 million in investment.

"2009 was definitely a challenging time for the Ann Arbor region, as well as the state and the nation," says Michael A. Finney, CEO of Ann Arbor SPARK. "The good news is we continued to help local companies that are in expansion mode."

Ann Arbor SPARK also took part in 34 projects, filled 887 jobs through its website and helped more than 4,200 people with job searches. It also opened its SPARK East incubator in downtown Ypsilanti and the Michigan Life Science and Innovation Center in a former Pfizer site in Plymouth.

Ann Arbor SPARK will consider expanding its influence in 2010. One of the primary ways it hopes to do this is by opening up its resources to other companies, entrepreneurs and economic development agencies outside of Washtenaw County.

"We plan on working in very close partnerships with many other economic development agencies in Michigan," Finney says.

Source: Michael A. Finney, CEO of Ann Arbor SPARK
Writer: Jon Zemke

Schoolpictures.com hires 7 in Ypsilanti, plans to add 7-10

Wed, 10 Feb 2010 00:00:00 GMT

Schoolpictures.com has a lot of room to grow in its new home near Eastern Michigan University, and the Ypsilanti-based firm is already starting to fill out the space.

The 5-year-old company hired seven people in 2009, rounding out its staff to 41 employees, along with 30 more interns and independent contractors. It expects to hire 7-10 people this year, and all of that is organic growth.

"We've increased the size of our business by growing our mission," says Skip Cerier, CEO of Schoolpictures.com. "Our goal is to continue to raise money for schools. As cuts came down from the state, schools are in such dire straits that they are looking for other revenues. Schoolpictures.com provides a unique business model that allows us to sustain and grow our business while we raise hundreds of thousands of dollars for schools."

That includes $540,000 for 180 schools in 2009. Cerier believes that number would have been much higher in a healthier economy. He has big aspirations for beating that number this year, partly because of an improving economy and partly because of the company's new home.

Schoolpictures.com took over the Ave Maria University campus, turning the old mid-20th Century elementary school and other even older structures into a silver LEED campus. It�s first pre-1950 building to reach LEED silver status in Michigan. Now the 21,000 square feet of space that was prime fodder to become building rubble stands as a shinning example of sustainability and economic opportunity.

The old Victorian house is being remodeled into a child portrait studio. The idea is the architecture provides a comforting feeling for both kids and families. The school's old gym is now a 2,400-square-foot photography studio that gives the firm's photographers and creatives a lot of freedom.

"There has been a monumental change in the attitude of my employees," Cerier says. "They are much happier when they have space of their own."

Source: Skip Cerier, CEO of Schoolpictures.com
Writer: Jon Zemke

Chelsea Milling Co invests $5M in plant, R&D expansion

Wed, 10 Feb 2010 00:00:00 GMT

The marquee business Chelsea is known for is growing. Chelsea Milling Co. is investing $5 million to expand its facilities.

The 105-year-old firm, known for making Jiffy Mix, employs 310 people in downtown Chelsea and another 14 in Marshall. It added 10 people last year and hopes to continue hiring in 2010.

It's expanding its presence in Chelsea to accommodate this growth. It's building a pilot plant that will connect its corporate offices and main production facility. It is also upgrading its research and development facility.

"We wanted to get a good feel for how our products would play in the real world," says Jack Kennedy, vice president and general manager for Chelsea Milling Co. "We wanted that intermediate step."

Currently new Jiffy Mix products go straight from the R&D oven to full production. Adding the pilot plant allows the company to do some smaller test runs on the products before investing large amounts of cash into a costly full production.

Right now the expansion is about 70 percent complete. Kennedy expects his employees to occupy the new addition by the end of May.

Source: Jack Kennedy, vice president and general manager for Chelsea Milling Co.
Writer: Jon Zemke

Pinstripe Publishing pushes board gaming envelope

Wed, 10 Feb 2010 00:00:00 GMT

It's not often someone makes the jump from venture capital to board games, but it's the path Steve Jaqua took to create Pinstripe Publishing and Poplin Press.

Jaqua used to be a vice president at Ardesta, going from university to university to find technology that could be commercialized. He realized lots of researchers and professors were former gamers. So he decided to harness that innovative spirit to create the next generation of board games.

"These guys are usually saving the world or destroying it," Jaqua says. "They're just having some fun with it here."

Two-year-old Pinstripe Publishing's first product is a board game called Blasphemy that revolves around posing alternative narratives to the normal religious indoctrination. The company's children's game counterpart, Poplin Press, is coming out with two more products right now.

"It's all about pushing the envelope and challenging people's belief system and how they think," Jaqua says.

Pinstripe Publishing is working on a new board game that goes beyond the normal piece of cardboard, flashcards and figures. It's developing a game that includes affordable touch screens and miniatures. That way players still get the live experience but can harness the latest technology.

The downtown Ann Arbor-based firms employ just Jaqua right now, but also gives out work to 8-10 independent contractors. Think artists, designers and proofreaders. It is working on a deal that could spur some considerable growth by this spring.

Source: Steve Jaqua, president of Pinstripe Publishing and Poplin Press
Writer: Jon Zemke

Sesi Midwest to showcase Ypsilanti entrepreneurship

Wed, 10 Feb 2010 00:00:00 GMT

Eastern Michigan University is working to encourage more students to dip their toes into the entrepreneurship pool with it latest offering Sesi Midwest Entrepreneurship Conference. Joe Venuto, one of the conference's speakers, is already swimming laps.

Venuto graduated from Eastern Michigan in 2008 with a degree in communications and a minor in entrepreneurship. He started several small businesses in Ypsilanti, ranging from Mobile Consulting (which saves people money on their cell phone bills) to SoPlat, a start-up that runs social media for Varsity Ford in Ann Arbor and Ferndale.

Venuto, 27, credits Eastern Michigan and Ypsilanti with giving him "the platform to be great" when it comes to running his own business. Those institutions helped him go from a dead broke student with little to direction in life to becoming a business owner with five independent contractors under him.

"There are so many resources in Ypsilanti and Eastern Michigan," Venuto says. "SPARK is over in Ann Arbor. They provided all of the resources I needed to be great as a serial entrepreneur. Everyone had an open door, too."

The conference will spotlight other local entrepreneurs and their successes, including people from well-established firms like Zingerman's to new start-ups run by students, like IMU.

The conference will be held at Friday in the EMU Student Center. Call (734) 487-0902 for more information.

Source: Joe Venuto, serial entrepreneur and recent graduate of Eastern Michigan University
Writer: Jon Zemke

Greg Janusz earns start-up merit badge in Ann Arbor

Wed, 10 Feb 2010 00:00:00 GMT

This section of the website is normally filled with stories of successful businesses or new, innovative products gearing up for launch. This isn't one of those stories. This is a story about how things didn't turn out as planned for a budding entrepreneur and his start-up, and how that should become seen as a good thing locally.

Greg Janusz started Chrome Monastery two years ago in Ann Arbor. He wrote out a detailed business plan about offering a video game development/operation company. He had big dreams of satisfying a profitable need in the gaming industry.

"In the gaming industry, customer support is really awful," Janusz says.

The computer programmer shopped around the idea for months, turning over rock after rock looking for the seven figures worth of funding it would take to get him started on the right foot. He soon came to the conclusion that the local venture capital community couldn't support his vision and then realized a few weeks ago that it just wasn't going to happen for now in this economy.

The idea is shelved for now, but that doesn't mean Janusz plans to tuck his tail between his legs and look for a coding job in a cubicle farm. He plans to try to start another company or remain his boss for the foreseeable future.

"It's a form of creative expression," Janusz says. "I have a lot of ideas I would like to see put into action."

In Midwestern culture, starting a new business is usually met with raised eyebrows and worried expressions. Entrepreneurs are often only given one shot to be successful, and if they are not there is significant social pressure for them to go back to what was once considered a "safe job" (like those on the production line).

That's not the social expectation on the coasts where entrepreneurship thrives. In fact, Silicon Valley habitues call it the 'punch card mentality.'

Terry Cross, one of Metro Detroit's most successful angel investors who got in on the ground floor with Google, says dropping this scarlet letter attitude is essential. He points out that Silicon Valley treats failure as a merit badge, proof that an entrepreneur has faced the darkside and gotten back up to fight again. The resumes of many successful SV entrepreneurs are filled with misfires and almost-rans.

"The whole concept of failure really needs to be reformatted and reconsidered in the public mind," Cross said in a recent Q&A with Concentrate's sister publication metromode. "If you go out and start a business today and you fail in that business you have to return and face your family with your hand out and your head down. If you fail in the Bay Area it happens everyday and doesn't mean a thing."

Janusz isn't happy with the way things turned out with Chrome Monastery, but he's not giving up on the start-up dream. As he puts it, "I'm still interested in investors." Anyone interested in respecting that merit badge can contact Ganusz at greg.janusz@chromemonastery.com.

Source: Greg Janusz, founder of Chrome Monastery and Terry Cross, serial angel investor
Writer: Jon Zemke