Coherix recently landed $12 million to help rapidly grow sales of its manufacturing software around the world. But the Ann Arbor-based startup nearly perished before getting to this point.
The company launched in 2004, making software that help streamline the advanced manufacturing process. Business grew quickly and the startup’s leadership had visions of going public. Then the Great Recession hit. The company's investors, never losing faith in Coherix's potential spent $9.6 million between 2008 and 2010 to keep the company afloat through hard times.
"We have a tremendous group of investors," says Dwight Carlson, CEO of Coherix
When the economy turned around and Coherix extinguished its cash burn, Carlson had high hopes to raising a lot more money to fuel its growth.
"I thought they would be throwing money at me because we survived (the Great Recession)," Carlson says.
It didn't turn out that way. Investors saw that Coherix specialized in manufacturing, strike one. It is based in Michigan, strike two. Carlson cut his loses and went back to growing Coherix organically and further developing its technology.
Today its principal technology provides high-speed, high-definition 3D measurement and inspection services for manufacturers that streamlines their production capability. It creates efficiencies through high-tech, optical-based measurement and inspection of the assembly processes.
Coherix has found most of its success deploying this technology in China where 40 percent of that country’s gross domestic product is created through manufacturing. It employs 50 people globally, including 35 in Ann Arbor. It has hired two marketing people in Ann Arbor over the last year now that it has landed its latest investment round.
Carlson expects to hire a lot more people as he starts to put the $12 million in new seed capital to work. One third of that money will go toward building out Coherix's operations in China. The rest of it will be spent building the business in Ann Arbor. Taking Coherix public in the next few years is a dream again.
"Now we're pedal to the metal," Carlson says. "We are going from survival mode to rapid growth mode. We will be hiring an awful lot of people."
Source: Dwight Carlson, CEO of Coherix
Writer: Jon Zemke
Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.