Detroit : Innovation & Job News

The Michigan University Research Corridor (URC) helped create $2.6 billion in added economic impact in Michigan compared to similar figures released in 2007, according to a report released by the non-profit earlier this month.

The URC is a consortium of the state's three research universities (University of Michigan, Michigan State University and Wayne State University) focused on helping creating synergies between Michigan's universities and increasing research that comes from them. Its more recent report shows the URC contributed $15.5 billion to the state's economy.

"We think that is pretty impressive when we benchmark ourselves against Research Triangle and Massachusetts and Northern California," says Jeff Mason, executive director of the Michigan University Research Corridor.

One of the factors in that growth is the increase of spin-out companies from technology developed at research at Michigan's three research universities. In 2011, the three universities spun out 18 companies, which ranked it third against other similar innovation clusters.

"What you see is these institutions spinning out on average of one company every month," Mason says.
 
Source: Jeff Mason, executive director of Michigan University Research Corridor
Writer: Jon Zemke

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

Luis and Sara Mendez once lived in Mexico until they saw opportunity in Detroit. That's when they moved to Ferndale and are now getting ready to launch their own food-truck business, Don Lucho Taco Truck and Salsa.

The couple had already been selling their own salsa when they decided they wanted to take it a step further this year. They recently graduated from D:hive's BUILD program, an initiative that teaches aspiring entrepreneurs the basics of launching a business. They are now looking to launch the food truck this spring to give their food business a foothold.

"Spring is the time because it's warm and everybody wants to be outside," Luis Mendez says.

The Mendez family was originally looking at opening a brick-and-mortar restaurant in Ferndale but decided to go the food truck route because it offers a better entry point for their business. They plan to cook authentic Mexican food with vegan and vegetarian options.

"We found a taco truck is more versatile than an actual restaurant," Luis Mendez says.

Source: Luis Mendez, co-owner of Don Lucho Taco Truck and Salsa
Writer: Jon Zemke

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

One of the things Accelerate Michigan Innovation Competition excels at is bringing together a broad variety of entrepreneurial players with ties to the Great Lakes State. This makes for some invaluable business connections.

The third annual business plan competition kicked off in the Guardian Building lobby Tuesday evening. The lobby, provided by Bank of America, which has a branch in the ornate hall, provided the right space for investors, entrepreneurs and local shot callers to mix freely. Small enough to be intimate for a crowd of about a 100 people but it's soaring ceiling giving an air of roominess.

This reporter never felt crowded but couldn't stop long enough to send a text message to his wife or an email to his editor without someone tugging at his elbow to say, 'Hello.' In that time, I ran into some of the most successful angel investors in the state as well as aspiring entrepreneurs, like one who is currently trying to launch a start-up while attending medical school at Wayne State University. All of these people mingled both casually and comfortably.

There weren't hard pitches or tables with literature. Those come later during the official part of the competition on Wednesday and today at the Westin-Book Cadillac Hotel. But for the first night, many of the people who are actively building Michigan's new economy came out of the silos of their sectors and made connections with others interested in helping them build a company.

Accelerate Michigan got its start in Ann Arbor as a way to showcase the cream of the crop of Michigan's entrepreneurial ecosystem and connect them with both local and out-of-state resources and investors. This year it moved to downtown Detroit to show off the Motor City's emerging tech hub and vibrant downtown. That shined through Tuesday evening where attendees walked past office buildings lit up with young people working for the likes of Quicken Loans, GalaxE.Solutions, Compuware and Strategic Staffing Solutions.

Accelerate Michigan offers $1 million in prizes to start-ups based in or looking to move to Michigan. This year the top three finishers will take home $500,000, $100,000 and $50,000. For information, click here.

Source: Accelerate Michigan Innovation Competition
Writer: Jon Zemke

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

A trio of significant changes are coming to this year's Accelerate Michigan Innovation Competition.

First, the $1 million business plan competition will be held in downtown Detroit this fall. The third installment of the new economy competition will take place in the Book-Cadillac Hotel, the Guardian Building and Orchestra Hall, using the Motor City's vibrant downtown and emerging tech economy as a back drop.

Accelerate Michigan will also welcome Terry Jones as its keynote speaker. The founder & former CEO of Travelocity will speak about start-up culture and building tech businesses in broader terms than previous speakers, which have all been Michigan-based.

"He's a very unknown quantity," says Lauren Bigelow, executive director of Accelerate Michigan. "He has enjoyed an awful lot of success. He has done 10 start-ups."

Accelerate Michigan will also beef up its top prizes. The competition has traditionally had a $500,000 top prize and smaller five-figure prizes. This year the first place winner will still receive $500,000 while second place will take $100,000 in seed capital home and third place will received $50,000. Bigelow explains that in previous years the top-prize competitors came down to three very-worthy start-ups and only one would walk away with a big check. The new prize break down helps solve that.

"Every year it has come down to three like clockwork," Bigelow says.

Accelerate Michigan will be held between Nov. 13-15. For information, click here.

Source: Lauren Bigelow, executive director of Accelerate Michigan
Writer: Jon Zemke

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

The people at the Coil Group see a unique opportunity in the market when it comes to mobile app development.

The six-month-old firm sees its niche in providing both mobile apps and traditional marketing services to mid-size businesses, which are often flush enough to pay for both services but not familiar enough with the mobile app market. The Coil Group thinks it sets itself apart from the competition because many small mobile app firms are run by people who have more expertise in technology than marketing.

"It's kids who don't understand strategy but they know how to build an app," says Jonathan Pielak, co-founder and vice president of strategy for the Coil Group.

The Rochester-based firm is offering both. So far it has three people and a few dozen independent contractors to draw upon. The company, which is looking to move to either Royal Oak or Detroit, is looking to hire people in software development, design and marketing strategy.

The goal is to be in a permanent home with a staff of 20-25 people within the next two years.

"We want to keep it small," Pielak says "We want to keep it nimble."

Source: Jonathan Pielak, co-founder & vice president of strategy for the Coil Group
Writer: Jon Zemke

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

The Accelerate Michigan Innovation Competition is back again this fall and it's bring hundreds of innovative start-ups to downtown Detroit.

The business plan competition has attracted a little more than 300 applicants to vie for the contest's $500,000 top prize. Accelerate Michigan, in its third year, routinely attracts the cream of the crop of start-ups from the Great Lakes region along with a smattering of companies from across the U.S. who are looking at relocating to Michigan.

Accelerate Michigan also serves as a stage for these start-ups to showcase their technology to investors. Last year it attracted 60 investment professionals, ranging from angel investors to venture capitalists to private-equity firms. This year organizers have been able to up that number to more than 100.

"The focus this year is going to be putting Michigan on the map for the investment community," says Lauren Bigelow, executive director of Accelerate Michigan. "We were able to get more venture capital and private equity firms here to mingle with out local investors."

Accelerate Michigan will be held at the Book Cadillac Hotel in downtown Detroit from Nov. 13-15. For information, click here.

Source: Lauren Bigelow, executive director of Accelerate Michigan
Writer: Jon Zemke

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

Moses Olaniran is a serial entrepreneur in transition. He spent six years growing his online home-improvement supply business MWP in Pontiac before selling it earlier this year. About the same time he started eBabEx, a foreign language start-up that is creating a cloud-based marketplace for foreign language services.

Olaniran is utilizing the tech expertise of Menlo Innovations in Ann Arbor to build out his online marketplace where clients can hire foreign-language services providers. He is also applying to the entrepreneurial accelerator Bizdom in downtown Detroit in the hopes of building and scaling his company quickly

"We're starting with lean start-up principles," Olaniran says. "Within six months we hope to have a minimum viable product. By working with groups like Bizdom and Menlo, we hope it'll give us access to a good network of professional investors."

Olaniran is currently raising seed capital for eBabEx and hopes to launch the start-up's first product within the year.

Source: Moses Olaniran, CEO & founder of eBabEx
Writer: Jon Zemke

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

DTE Energy Foundation has been helping young people in the city of Detroit find jobs for several years now through its summer jobs initiative. The effort normally means several hundred quality positions, often first jobs, for young people in places where work is an uncommon commodity.

The downtown Detroit-based charitable organization is looking to spread the working wealth. The youth summer employment initiative plans to fund up to 500 jobs this summer in both Detroit and some of its economically challenged suburbs.

"We are looking to grow beyond Detroit to some other communities that are vulnerable, like Ypsialnti, Muskegeon and Pontiac," says Karla Hill, vice president of DTE Energy Foundation.

DTE Energy Foundation made a $750,000 commitment, which includes a $500,000 grant to the Grow Detroit's Young Talent program. That is the largest private donation toward its fundraising goal of $2 million. The additional $250,000 from the DTE Energy Foundation will be used to enhance Detroit's program and expand to other communities across the state.

DTE Energy Foundation plans to work with about 50 community partners to place teens and young adults in jobs. The foundation's $500,000 grant to Grow Detroit will fund nearly 350 jobs in the non-profit's Young Talent program. The summer jobs program begins in July and runs for six weeks. For information, click here.

Source: Karla Hill, vice president of DTE Energy Foundation
Writer: Jon Zemke

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

The number of seed capital options for early entrepreneurs in Metro Detroit have risen significantly in recent years, prompting the Michigan Economic Development Corp to increase efforts to connect these entrepreneurs with cash funds.

The MEDC will host a series of events showcasing the seed-funding and business-building options available to Michigan's growing class of entrepreneurs. These free events, which kickoff next week, are designed to help entrepreneurs and start-ups find growth opportunities through the business services and financial support made available through MEDC-supported business incubators and accelerators across the Great Lakes State.

"Michigan is different than any other state because we truly fund an ecosystem," says Paula Sorrell, managing director of entrepreneurship for the Michigan Economic Development Corp.

The Metro Detroit meetings will take advantage of programs at Detroit-based Next Energy, along with Ann Arbor-based programs and seed capital funds like Accelerate Michigan Innovation Competition, Biotechnology Business Consultants, Michigan Angel Fund, Michigan Pre-Seed Capital Fund, Michigan Venture Capital Association.

"It's not unusual for a company to take advantage of 4-8 programs from the state to further their businesses," Sorrell says.

The 70-minute presentations based in Metro Detroit will be held on Monday and Tuesday at places like the University of Michigan, Eastern Michigan University, Wayne State University, Next Energy, the Macomb-OU INCubator and Automation Alley. For information, click here.

Source: Paula Sorrell, managing director of entrepreneurship for the Michigan Economic Development Corp
Writer: Jon Zemke

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

The seeds of growth were planted in 2011 when a number of new venture capital firms launched in Metro Detroit. Detroit Venture Partners are changing the narrative in downtown Detroit, Stage 2 Innovations is bringing $100 million to the table in Oakland County and small VCs in Ann Arbor are springing up or reloading with new multi-million-dollar funds.

$100M Stage 2 Innovations fund launches out of Automation Alley

Magic Johnson invests millions in Detroit Venture Partners

Arboretum Ventures raises $140M VC fund, beats goal

Huron River Ventures $7.5M VC fund to invest in clean tech sector

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

The numbers of entrepreneurs in Metro Detroit continue to climb, but the youngpreneurs are making some of the biggest strides. DeNovo Sciences, founded by a small group of 20 somethings, won the top $500,000 prize at the Accelerate Michigan Innovation Competition. Are You a Human, started by recent University of Michigan graduates, rakes in seven figure seed capital round. Livio Radio, run by youngpreneur poster boy Jake Sigal, is attracting investment from Silicon Valley VCs. It all adds up to a promising future for Metro Detroit's entrepreneurial class.

Silicon Valley VC invests in Ferndale's Livio Radio

From Scratch: Denovo Sciences

Are You a Human moves to downtown

Garbage In, Energy Out: A Q&A with the Founders of ReGenerate

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

Metro Detroit firms swept into the Accelerate Michigan Innovation Competition and ran away with most of the $1 million in awards last month.

After a Kalamazoo-based business, Arume BioSciences, took first place last year, Metro Detroit-based firms took the top two prizes and most of the industry awards in the competition's second year. Life Sciences start-up DeNovo Sciences (founded in Ypsilanti and moving to Plymouth) won the $500,000 first prize while green tech firm Fusion Coolant Systems (based in Ypsilanti and opening a tech center in Detroit) took second place and the $150,000 that comes with it.

"If I can take anything back to Washington, D.C., it's that it should focus on Michigan," Peter Perez, deputy assistant secretary for manufacturing for the U.S. Depart­ment of Commerce, said during his keynote address at the Accelerate Michigan awards gala. "They are working on and doing great things."

Companies based in or with strong ties to Ann Arbor led the way with many winning $25,000 awards. The winners were i3D Technologies in the IT area, OcuSciences in life sciences, LLamasoft in product and services, Advanced Cooling Therapy in medical devices, ePack for next generation manufacturing. NEXTGEN Metabolomics took the AARP Encore Award and Are You a Human won the student competition.

Other Metro Detroit firms to pull down $25,000 awards were Bloomfield Hills-based ENRG Power Systems in the advanced transportation division and InfiChem Polymers of Sterling Heights in the advanced materials category.

Source: Peter Perez, deputy assistant secretary for manufacturing for the U.S. Depart­ment of Commerce
Writer: Jon Zemke

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

A123 Systems has some big plans for its Metro Detroit workforce now that the lithium-ion battery manufacturer has won a large contract from General Motors.

"We're talking about hiring 1,000 people in Michigan over the next few years," says Dan Borgasano, PR manager for A123 Systems. "Most of them will be in Livonia and Romulus."

A123 Systems, which calls Massachusetts home, develops and manufactures lithium-ion batteries, which are the battery packs that power hybrid-electric vehicles like the Chevrolet Volt. The manufacturer employs 1,000 people in Michigan, most of whom work in the company's Livonia and Romulus production facilities.

The contract includes advanced Nanophosphate cells and fully integrated electronic components. GM battery engineering teams have tested and validated the A123 battery chemistry at the automaker's Global Battery Systems lab in Warren. Teams from both companies will now work on developing calibrations and software controls for the battery system in preparation for production.

Source: Dan Borgasano, PR manager for A123 Systems
Writer: Jon Zemke

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

Metro Detroit's emerging venture capital community is starting to flex its muscle and create a number of jobs locally. General Motors Ventures, the venture capital arm of GM, has invested $7.5 million into Sunlogics so it can ramp up solar panel production, creating 200 new jobs in the next few months.

"It provides a firm foundation for our company to grow, not only in North America but on a world-wide basis," says Michael Matvieshen, CEO of Sunlogics.

The Rochester Hills-based start-up currently employs 40 people and plans to revamp an industrial building into a solar panel factory. They facility will make solar-powered charging stations for the Chevrolet Volt, GM's new electric car. The charging stations will be placed at 3,000 automotive dealerships across the U.S.

"This investment will provide Sunlogics with the working capital to open a world headquarters and manufacturing facility here in Rochester Hills," says Jon Lauckner, president of GM Ventures.

Source: Jon Lauckner, president of General Motors Ventures
Writer: Jon Zemke

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

RingSide Creative and Jeff Moon Production Services are partnering to create Moonlink Studios, a move that promises to create the largest source of production and satellite services in Michigan right here in Metro Detroit.

The new venture, based in Oak Park, will offer camera, crew, satellite truck, studio and other newsroom services to major TV networks, such as FOX or MSNBC. The idea is to be there and ready for those media outlets when news breaks in Metro Detroit.

"We want to be the most technologically savvy with the best award-winning crews around," says Robin Tracey, executive producer and director of Moonlink Studios. "We want to hold onto that reputation."

Moonlink Studios currently has nine employees, two interns and 20-30 independent contractors. It hopes to add a few more people as it opens up studio space in Warren and Ann Arbor later this year. There is already studio space in Oak Park, Troy and Detroit.

Source: Robin Tracey, executive producer and director of Moonlink Studios
Writer: Jon Zemke

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