Innovation & Job News

A123 Systems celebrates 1,000 hires in Metro Detroit

Metromode Thursday, July 21, 2011

Lithium-ion battery maker A123 Systems has crossed the 1,000-employee threshold in Metro Detroit by growing its offices in Livonia, Romulus and Ann Arbor.

"We expect to hire a few thousand more over the next couple of years," says Dan Borgasano, public relations manager for A123 Systems. "The demand for our technology is growing and we expect to continue hiring in Michigan to accommodate that growth."

A123 Systems makes advanced lithium-ion batteries for electric vehicles. The Massachusetts-based business received a $249 million federal grant to develop and manufacture these batteries as part of the federal stimulus package. This battery is a key part of the electric vehicle advancement championed by Pres. Obama's administration in recent years.

The battery maker has a research and development office in Ann Arbor and recently opened manufacturing sites in both Livonia and Romulus. It plans to continue expanding all three offices as it ramps up production.

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

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

Vision Computer Solutions revenue jumps 60%, 5 more hires planned

Metromode Thursday, June 30, 2011

Vision Computer Solutions' new business model is gaining traction on the uphill growth chart.

The 16-year-old company has watched its revenue increase 60 percent over the last year and added four positions. It has one open job for an advanced network engineer. The company also just opened an office in downtown Ann Arbor to take advantage of the business opportunities in that emerging technology area. It hopes to find another 30-35 clients over the next year and add five more jobs.

"It's been very consistent and steady growth for us," says Peter Marsack, vice president of business development for Vision Computer Solutions. "That has allowed us to maintain a high level of growth for our clients. I see that continuing."

Vision Computer Solutions has a new business model, switching from a per-item/hourly rate for IT work to a flat fee for complete support services almost three years ago. The company initially lost a few customers when it made that switch but has since found numerous others to take their place.

"It brings these news businesses a way to fix their IT budgets," Marsack says. "They are much more appreciative of that model."

Source: Peter Marsack, vice president of business development for Vision Computer Solutions
Writer: Jon Zemke

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

Accelerate Michigan Innovation Competition re-ups for 2011

Metromode Thursday, May 26, 2011

The Accelerate Michigan Innovation Competition is back for the first time this year, bringing hundreds of thousands of dollars in seed capital to local start-ups.

Last year the competition showcased the best of the best start-ups in Michigan, along with attracting other out-of-state companies to move to the state. It awarded more than $1 million in cash and prizes last fall, including $500,000 to University of Michigan spin-off Armune Biosciences and $150,000 to Ann Arbor-based Arbor Photonics.

The prize pool remains the same this year, and organizers are working to bring in more start-ups and investors from out of state. They plan to utilize Automation Alley's international connections, the region's border with Canada and connections from the Business Leaders for Michigan. The goal is to have one-third of the money and people participating or attending to come from the coasts or elsewhere around the world.

"We're looking to bring in folks regionally, nationally and internationally," says Lauren Bigelow, executive director of the Accelerate Michigan Innovation Competition.

Contestants also receive valuable feedback from business experts and make connections with other business people from around the world.

The Accelerate Michigan Innovation Competition will be held on Nov. 16-17 at the Eagle Crest Conference Center in Ypsilanti. The gala awards and dinner will be held at Henry Ford Museum on Nov. 17. Interested start-ups can submit applications starting on June 6, with a deadline of Aug. 10. The deadline for student-led start-ups is Sept. 21. For information, click here.

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

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

MichBio legislative reform plan similar to angel tax credit

Metromode Thursday, March 24, 2011

MichBio, a local non-profit advocate of the biosciences industry, is pushing an action plan to reform state legislation that will make Michigan more competitive in the bio-tech and life sciences sectors.

"What we need to assess is what we have in our tool box and how that compares to other states," says Stephen Rapundalo, president & CEO of MichBio.

The biosciences industry has emerged on top in Michigan's new economy, garnering $325 million in direct state investment. MichBio's Biosciences Action Plan, a living document, aims to map out Michigan's strengths in this realm (higher education, talent, etc.) and define the Great Lakes State's needs and opportunities for growth.

Amidst this is recognition from local leaders that a favorable business climate is necessary; bio-industry start-ups often need 15 years and millions of dollars of investment before bringing their first product to market.

Many of the reforms mentioned in the action plan combined together could have an impact similar to the recently approved Angel Tax Credit. That incentive provides a state tax credit to angel investors who make investments in start-ups, bringing Michigan in line with the leaders of early investment.

"That was something the state really needed," Rapundalo says. "It's not just our sector but every sector. It's a great tool that will bring investors here."

However, the future of that credit and legislative reform mentioned in MichBio's Biosciences Action Plan are in flux as state legislators rework the state's business tax formula. Specifically, Gov. Rick Snyder's plan to eliminate all tax credits could directly impact the angel tax credit and MichBio's initiative. "It's really up in the air," Rapundalo says.

Source: Stephen Rapundalo, president & CEO of MichBio
Writer: Jon Zemke

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

Algal Scientific to commercialize wastewater tech, pilots project in Cincinnati

Metromode Thursday, March 03, 2011

Algal Scientific has come a long way since it won the first Clean Energy Prize in 2008. Then it was a handful of students from the University of Michigan and Michigan State University looking to commercialize their wastewater technology. Now the company is nearly a dozen strong with six figures' worth of seed capital, pilot projects and commercialization aspirations in less than a year.

Algal Scientific is developing a wastewater treatment system that uses algae to remove nutrients from contaminated water leaving the raw materials for biofuels. It has made the move to the Michigan Life Science & Innovation Center in Plymouth.

It is currently working on a pilot project at a Cincinnati-area landfill where it hopes to help shrink the facility's rapidly rising wastewater costs from $2.5 million back to $500,000.

"They are very interested in our technology," says Paul Horst, CEO of Algal Scientific. "We have built a mobile plant at demonstration scale. We have all the equipment on site and are looking to ramp it up."

The tech company plans to wrap up that pilot project this year and begin full commercial sales by 2012. It has raised nearly $400,000 in seed capital as well as a federal $100,000 Small Business Innovation Research grant. Together with the commercialization sales, this funding will spur Algal Scientific to expand its own staff by 50-100 percent (5-10 people) this year.

Source: Paul Horst, CEO of Algal Scientific
Writer: Jon Zemke

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

Farmington Hills' CSquared Innovations wins Clean Energy Prize

Metromode Thursday, February 24, 2011

Many of the most promising start-ups spinning out of the Great Lakes State have two things in common. They're based in Ann Arbor and come from the University of Michigan. CSquared Innovations has one of those traits -- sort of.

The Farmington Hills-based start-up first discovered its lithium-ion battery technology at the University of Michiagan-Dearborn and is utilizing the services of the Office of Technology Transfer at U-M in Ann Arbor to commercialize the research. This was instrumental in helping the start-up to win the top $50,000 award at last weekend's Clean Energy Prize, and will enable it to really come into its own in 2011.

"We plan to scale up our staff and create 10 new positions this year," says Nick Moroz, vice president of engineering & development for CSquared Innovations.

CSquared Innovations is developing a faster, cheaper, laser-based method of making nano-structured materials and coatings for lithium-ion battery electrodes, solar cells, and industrial coatings. The technology could make the manufacturing process much less expensive. The 1-year-old firm currently has four employees and hopes to land a Small Business Innovation Research grant this year so it can begin selling its technology in 2012.

"The ultimate goal of our business is to supply flexible and capable manufacturing equipment for the lithium-ion battery industry," Moroz says.

Source: Nick Moroz, vice president of engineering & development for CSquared Innovations
Writer: Jon Zemke

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

Google Birmingham office to grow staff

Metromode Thursday, February 03, 2011

Google has some big plans for growth this year and the search engine's Birmingham office stands to benefit significantly.

Google recently recorded one of its best quarters ever and has watched some of its smaller businesses, such as its Chrome web browser and Android platform, experience huge growth. The company plans to hire people at its AdWords headquarters in Ann Arbor and its automotive office in downtown Birmingham.

"We're looking for people who know the automotive game and want to change the world," says Jake Parrillo, spokesman for Google. Check out the job openings here.

Parrillo declines to talk specific job numbers, nor would he indicate how many people Google employs in Birmingham beyond saying it has "well over 250 in Michigan." Google currently has two job openings it is currently trying to fill in Birmingham, however, Parrillo adds that the company plans to hire multiple employees for each position. "I can't give specifics but it's not 1-2 jobs," Parrillo says, adding this is part of an effort to grow the operation in a "significant way."

Google is looking for people with diverse backgrounds and skill sets who have entrepreneurial aspirations. The idea is to help get the established global tech player back to its start-up roots by attracting people who want to start their own business but feel they can have a bigger impact by working through Google.

"We're starting to become a big company but we still have the mindset of a small company," Parrillo says.

Source: Jake Parrillo, spokesman for Google
Writer: Jon Zemke

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

Procter & Gamble inks research deal with Michigan's public universities

Metromode Thursday, February 03, 2011

Many big corporations have master research agreements with the public universities in Michigan. However, a new deal with Procter & Gamble could provide a platform for expanded master agreements and encompass all of Michigan's public universities.

This type of far-reaching agreement is the first of its kind and modeled off a similar agreement Procter & Gamble brokered with Ohio (its home state) last year.

"The biggest opportunity we see is to develop a relationship with a Fortune 500 company to build better research with it," says Jeff Mason, executive director of the University Research Corridor. "We want to do that not only with our research universities but with the rest of the universities in the state."

The idea is to simplify and streamline the process of commercializing research. This new deal is expected to create an environment that will accelerate turning research from universities into new businesses by having one simple, broad-reaching agreement.

"Hopefully, we'll see results sooner than we would without this," Mason says.

Source: Jeff Mason, executive director of University Research Corridor
Writer: Jon Zemke

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

Venture Michigan Fund II has $120M potential for Metro Detroit VC firms

Metromode Thursday, January 20, 2011

A second Venture Michigan Fund, Venture Michigan Fund II, is being deployed this year, and the $120 million that comes with it has big implications for Metro Detroit.

The first Venture Michigan Fund, formed in 2006, made $96 million worth of commitments to 11 venture capital firms. All but one of those is either based in or has an office in southeast Michigan. Nine of those firms have Ann Arbor ties. About one third of that money has been invested in 15 Michigan-based start-ups, the vast majority of which are located in Ann Arbor.

The Venture Michigan Fund was created to help grow Michigan's fledgling venture capital industry. A Thomson Reuters study shows that there were 26 VC investments in Michigan in 2006, representing $117.3 million. Those numbers went up to 44 deals worth $231.1 million in 2010, the year the U.S. officially emerged from a recession. Bob Payne, who manages the Venture Michigan Funds on behalf of Credit Suisse, credits Michigan's emerging entrepreneurial ecosystem for that growth.

"One thing that Michigan has is a wealth of ideas and a number of companies being formed around those ideas," Payne says.

State vouchers are providing the capital for the Venture Michigan Funds. That money supported the creation of 200 new jobs and has leveraged $186 million from other investors.

Source: Bob Payne, manager of Venture Michigan Fund
Writer: Jon Zemke

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

AutoHarvest to connect local IP with auto industry

metromode Thursday, January 20, 2011

Metro Detroit is sometimes referred to as its own worst enemy when it comes to building businesses and creating jobs. A new non-profit called AutoHarvest is ready to make the region its own best asset by capitalizing on its plethora of intellectual property.

"We think of the auto industry as low-tech and behind," says David Cole, chairman and co-founder of AutoHarvest. "It's not that at all. This is the most complicated industry in the world."

AutoHarvest plans to help connect the automotive industry and Metro Detroit's entrepreneurial ecosystem with the immense amount of intellectual property in the region. The idea is that making these connections will accelerate the deal flow and job creation in both the local auto industry and other emerging sectors.

Cole points out that there are six major automakers with operations in the region and another 350 auto suppliers. Pair those with its two research universities, the University of Michigan and Wayne State University, and its handful of business accelerators and there are not only enough sources of intellectual property but players who can use it. It's only a matter of connecting one to the other.

"This is a marketplace to facilitating collaboration around intellectual property," Cole says. "We think it's going to work."

AutoHarvest is working with each of the Big 3, the Michigan Economic Development Corp, local foundations and business accelerators, and creating a peer group of 50 organizations to draw support from. The non-profit is headquartered in Ann Arbor SPARK's central offices but is also keeping offices in Detroit's TechTown and the University of Michigan's North Campus Research Complex.

Source: David Cole, chairman and co-founder of AutoHarvest
Writer: Jon Zemke

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

Michigan Pre-Seed Capital Fund hits $11.6M in loans

Metromode Thursday, January 13, 2011

The Michigan Pre-Seed Capital Fund, a part of the Michigan Microloan Fund, closed out 2010 with some big numbers, shelling out $2.5 million in microloans to Metro Detroit start-ups in 2010.

Each microloan is tailored to the needs of a start-up, averaging about $50,000. The loans provide cash (and validation) to companies in dire need of capital due to the financial crisis. More times than not, that money goes toward commercializing the startup's first product.

The Michigan Pre-Seed Capital Fund has provided this $11.6 million to 52 start-ups, such as Innovative Surgical Solutions, a Southfield-based start-up that made the finals of the Accelerate Michigan Innovation Competition. These firms employ 285 people and the microloans have helped them attract another $16.4 million in outside investment.

The future of the Michigan Pre-Seed Capital Fund is up in the air. Officials from the state of Michigan's 21st Century Jobs Fund have not yet decided whether to invest in the Michigan Pre-Seed Capital Fund this year. The first loans aren't due to be paid back until next year, so its future is in limbo for 2011.

The Michigan Microloan Fund was the first of its kind, proving quite popular. It inspired a number of similar-yet-smaller funds across Metro Detroit. However, those funds each measure about six figures in size and are focused on specific municipalities. Skip Simms, interim CEO of Ann Arbor SPARK and administrator of the Michigan Microloan Fund, believes these newer funds aren't big enough to make up for the potential loss of the Michigan Pre-Seed Capital Fund, which is by far the largest of the funds in the Ann Arbor SPARK-run Michigan Microloan Fund pool.

"They're not that large of funds," Simms says. "For instance, our $275,000 fund for Ann Arbor is a nice fund but the demand is 4-5 times that."

The smaller funds also aren't as flexible as the Michigan Pre-Seed Capital Fund. Each of those is specifically set up to provide financing to start-ups in specific municipalities. The Michigan Pre-Seed Capital Fund can make microloans to any in-state start-up.

Source: Skip Simms, interim CEO of Ann Arbor SPARK
Writer: Jon Zemke

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

Accelerate Michigan showcases state's new economy future

Metromode Thursday, December 16, 2010

One phrase came to mind when summing up the Accelerate Michigan Innovation Competition -- the future.

The new event showed off start-ups that organizers hope will be the future long-term leaders in Michigan's new economy to what they hope will be future near-term investors. The event was held in the University of Michigan's new North Campus Research Complex and featured Michigan's future governor as its keynote speaker. Future Michigan Economic Development Corp head Michael Finney even hinted at bigger prizes for the next Accelerate Michigan competition in the not-too-distant future.

"We're looking forward," Finney said during his remarks at the event. "We're looking at where we're going to go in the next 3-4 years in this state."

The potential of those next few years looked pretty good on stage last Saturday when the 10 finalists made their pitches. Metro Detroit had a healthy contingent among them, including Southfield's Innovating Surgical Solutions, Madison Heights/Ann Arbor's Gravikor, and a number of firms from Ann Arbor. Bloomfield Hills-based ENRG Power Systems, Troy-based MatchRX, and Farmington Hills-based CSquared Innovations each won $25,000 in the Advanced Transportation, Information Technology, and Next Gen Manufacturing categories, respectively.

Kalamazoo-based Armune BioScience (a U-M spin-off) and Arbor Photonics of Ann Arbor took first ($500,000) and second ($150,000) places. Four start-ups from U-M students swept the student competition and its $60,000 in prizes. In addition to the prize money, most of the entrants raved about the exposure to potential investors that the Accelerate Michigan competition provided. To many of them it was an opportunity to expect a brighter future for their start-ups.

"We have a very bright future," Gov.-elect Snyder said during his speech. "We just need to execute now."

Sources: Accelerate Michigan Innovation Competition; Michael Finney, former CEO & president of Ann Arbor SPARK and current head of the Michigan Economic Development Corp; and Rick Snyder, governor-elect of Michigan
Writer: Jon Zemke

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

Boston entrepreneur impressed by SE Michigan's biz-development unity

Metromode Thursday, December 16, 2010

Alden Zecha left Ann Arbor this weekend impressed not only with the Accelerate Michigan Innovation Competition, but the unity its organizers displayed.

The CFO and strategist made the elevator pitch for Massachusetts-based Sproxil during the finals of the $1 million business plan competition. When all was said and done, Zecha was pleasantly surprised by how well the Business Accelerator Network for Southeast Michigan (Ann Arbor SPARK, Automation Alley, TechTown and the Macomb-OU INCubator) worked together to make it all happen.

"That is fairly unusual," Zecha says. "Usually those competitions are put together by a single entity, frequently an academic institution. (At those competitions) I wouldn't normally see any animosity between organizations. I see a lot of autonomous organizations that are competing with each other."

Sproxil won the $10,000 People's Choice award for its drug-intelligence software. The winners of the grand-prize ($500,000) would have to agree to move to Michigan. Sproxil and its staff of four were ready to do that had they won, but will remain in Massachusetts for now. The $500,000 would have justified the costs of moving, Zecha says.

Source: Alden Zecha, CFO & strategist for Sproxil
Writer: Jon Zemke

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

Angott Medical Products raises $1.5M for breast cancer screening machine

Metromode Thursday, December 16, 2010

Angott Medical Products is a start-up with a very personal story.

Paul Angott, the president of the Bloomfield-based firm, came up with the idea of a new breast cancer screening machine about 20 years ago when his mother first developed breast cancer. Her death a few years ago prompted the serial entrepreneur to make that new device a reality through Angott Medical Products.

"It was a painful and horrible death for her," Angott says. "She fought breast cancer for 20 years."

Angott Medical Products' breast cancer screener is a non-invasive and radiation-free device that is simple enough that it doesn't require a highly trained specialist to interpret the results. He has secured 40 patents and raised $1.5 million to develop the device. He hopes to finish the first prototype by the first quarter of 2011 and have it on the market by the second quarter of 2012.

The 3-year-old firm employs a team of about a dozen people. That team recently made the semi-finals of the Accelerate Michigan Innovation Competition. Angott hopes to get even further in it next year.

"We thought we did really well," Angott says. "We hoped to make the Top 10 but there was some stiff competition."

Source: Paul Angott, president of Angott Medical Products
Writer: Jon Zemke

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

Howard & Howard Attorneys expands, opens offices in Chicago and Las Vegas

Metromode Thursday, December 09, 2010

Howard & Howard Attorneys is a law firm that has been around a while (140 years), so it knows the value of words like diversification and has used it as a key cog to spur growth in 2010.

The downtown Royal Oak-based firm has grown its practice in some high-profile new economy-based sectors, such as alternative energy and intellectual property. It has hired about a dozen people over the last year, rounding out its staff to 235 employees, six interns and two independent contractors. In some cases, Howard & Howard Attorneys' new hires are young people who specialize in those new economy sectors that grew into important roles at the law firm.

"There has been a real nice organic growth in our intellectual property practice in terms of interns maturing into lawyers and joining our practice," says Mark Davis, president and CEO of Howard & Howard Attorneys.

The firm specializes primarily in business-to-business and business owner law in a number of industries ranging from gaming to automotive to medical devices. It has set up offices in Ann Arbor, Chicago, Peoria, Ill., and Las Vegas. This has also allowed the firm to grow its revenue by 20 percent in 2010, 15 percent above its goal. Davis hopes to hit 10 percent revenue growth and a few more hires in 2011.

Source: Mark Davis, president and CEO of Howard & Howard Attorneys
Writer: Jon Zemke

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

Ann Arbor : Innovation & Job News