Features

Renaissance Venture Capital Fund closes on second fund worth $79M

The Renaissance Venture Capital Fund has closed on its second investment vehicle, a $79 million fund destined for Michigan-based startups and the venture capital firms investing in them. The 6-year-old firm, which has offices in Ann Arbor and Detroit, is a fund of funds, meaning it invests in smaller venture capital firms. It closed on its first fund for $45 million in 2010 with an idea of helping grow Michigan’s entrepreneurial ecosystem by infusing it with more seed capital and attracting more outside investors. Some of Michigan's biggest corporations have contributed to Renaissance Venture Capital Fund’s investment vehicles. The hope is by including them they will help these startups grow by providing revenues and potential acquisitions. The fund also invests in out-of-state venture capital firms looking to invest in Michigan-based startups. "For every $1 we put in them they put $4 into the state," says Chris Rizik, CEO of the Renaissance Venture Capital Fund. "It has worked out very well." For instance, the Renaissance Venture Capital Fund made an investment in Houston-based Mercury Fund, which opened its Midwestern office in Ann Arbor. Mercury Fund has invested in Ann Arbor-based startups like DeepField and Swift Biosciences. The Renaissance Venture Capital Fund and its team of four people have already made eight investments in venture capital firms and is aiming to make three side-by-side investments in startups with those VCs. The second fund has been active for two years and is looking to continue to keep going this year. "We probably have another 3-4 years left to invest," Rizik says. Source: Chris Rizik, CEO of the Renaissance Venture Capital Fund Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Message Blocks eyes expansion into event software with new hires

If slow and steady wins the race it also can build the business. That's what the team behind Message Blocks is learning. The Ann Arbor-based startup offers a comprehensive event-planning software platform that streamlines the event-planning process. The platform focuses on the event planner's experience, allowing users to share documents and presenters to use plug-in presentations. Message Blocks launched this platform in the fall of 2013 and has built it up ever since. "We have kept every customer," says Len Gauger, founder & CEO of Message Blocks. "Our retention rate is quite high." The 2-year-old startup has also attracted new clients. It landed the Michigan Realtors Association, which is using the platform for everything from events to media releases. Message Blocks also has pilot programs with new customers underway in Michigan, California, and Washington, D.C. This year the company is looking to take on bigger events, such as concerts. "We are looking at out-of-the-box verticals that deal with large amounts of people," Gauger says. "It's about helping their team organize better." Message Blocks currently employs a team of seven people and is looking for a few summer interns this year. It has hired three people over the last year and is looking to add another three right now. Source: Len Gauger, founder & CEO of Message Blocks Writer: Jon Zemke

U-M student startup app helps track loved ones

A group of students at the University of Michigan are trying to bring campus safety into the 21st Century with a new mobile app called Companion. The five students began working on the app a few months ago after noticing there wasn't a comprehensive public safety tool that worked with their smartphones. "It was the culmination of a number of experiences we have had for years," says Danny Freed, co-founder of Companion. "We would get crime alerts that are 12 hours old and useless or there are the blue safety stations that no one uses." Companion's mobile app harnesses real-time walking data that allows for family and friends to keep an eye on you as you walk home late at night. It matches that data with historical walking pattern and a predictive engine so local campus police can determine the optimal placement of officers. Companion won the Pryor-Hale Award for Best Business at the Michigan Business Plan Competition. That came with $20,000 in seed capital. The team, all U-M undergraduates, also won the Most Successful Undergraduate team award for $2,500 as well as the Marketing Award sponsored by Marketing Associates for $2,500. That $25,000 will go toward further developing the app. A Beta version is currently available in the Apple App Store, but the team is looking to enhance its capability. "We are continuously adding features," Freed says. Source: Danny Freed, co-founder of Companion Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Stratos launches all-in-one credit card for your wallet

Stratos is launching its all-in-one payment card this week, a product that aims to consolidate the contents of your wallet into one piece of durable, dynamic plastic. "It's a next generation card that can hold all of the cards in your wallet," says Thiago Olson, CEO of Stratos. The Stratos Bluetooth Connected Card consolidates an unlimited number of plastic cards into one and can work anywhere traditional credit cards are accepted. That means the Stratos Card can load credit, debit, loyalty, membership and gift cards into a familiar, universally accepted card that can instantly change into the card you need on demand. The Stratos Card comes equipped with Bluetooth technology that consolidates your cards helps make sure the right one is ready to go when the user is ready to check out. Check out a video describing it here. "If I simple double tap this card it will say, 'Based on your location you are near Macy's. Do you want to use your Macy’s card?'" Olson says. Users can access the Stratos card on a subscription basis for $95 per year or $145 for two years. Customers can sign up now and expect the cards to be shipped in April. The cards are made of a durable plastic that comes with a scratch-proof coating. "It's more resistant to wear and tear than an average credit card," Olson says. Stratos launched a little more than two years ago in downtown Ann Arbor. It has grown into a new office space in Kerrytown, taking over the former home of Duo Security. It currently employs a staff of 50, including 25 people and a few interns in Ann Arbor. It has hired about 15 people over the last year and it looking to hire another 14. You can check out the open positions here. Source: Thiago Olson, CEO of Stratos Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Feature Story Roger Hewitt at Red Hawk in Ann Arbor

5 tough questions with Roger Hewitt of Ann Arbor's DDA

While DDAs tend to have a good reputation in most Michigan communities, Ann Arbor's downtown development authority has frequently come under fire by local (and particularly vocal) critics. So, what's the deal? Concentrate talks housing, affordability, and ambassadors with veteran board member Roger Hewitt.

Ann Arbor City council vows to grow affordable housing

As Ann Arbor lands in the top 10 for most economically segregated cities in the U.S., city officials say they are committed to changing that dynamic. Good to see that the conversation we started in earnest several months ago has snowballed into a serious exploration of what our community needs to accommodate residents of every stripe. Excerpt: City Council this week voted, 10-1, to adopt affordable housing goals, the Ann Arbor News reported. That's part of a larger goal of adding 3,137 affordable non-student rental units between Ann Arbor and Pittsfield Township over the next 20 years. Officials also hope to increase demand for market-rate housing in the Ypsilanti area by 4,187 units. Read the rest here.

Local investors bet on Ann Arbor as tech hub

Hoping to bring together Ann Arbor startups struggling to grow, a pair of execs at Nutshell Inc. have decided to develop a tech hub incubator. And they already have their first tenant before the doors have opened. Excerpt: "Using the Madison Building in downtown Detroit as the model, a group of former Barracuda Networks Inc. executives wants to create a large hub for tech startups in downtown Ann Arbor. They have signed a purchase agreement to buy two adjacent office buildings downtown and are negotiating to buy one or two more buildings. They hope to close on the first deal in about a month and have a build-out done in six months." Read the rest here.

NerdWallet says Ann Arbor is an innovative tech hub

Looks like news of Ann Arbor's tech scene is spreading. While we didn't break the top 10, NerdWallet lists us at a respectable 12th for innovation. Excerpt: Silicon Valley is by far the leader. With a high number of patents per capita and venture capital funding figures that no other place comes close to, the metro area that includes the cities of San Jose, Sunnyvale and Santa Clara leads all in tech innovation. The West dominates. Only two East Coast places made our top 10 list — Burlington, Vermont, and Boston, Massachusetts. Universities are key. Every area in our top 10 is located near a major university, suggesting that higher education and innovation are closely linked. Read the rest here.

Former Ypsilanti pub to be reincarnated as co-working space

The new co-owner of Ypsilanti’s former Pub 13 building hopes to bring new life into a "fabulous" building by transforming it into an open co-working space. Wayne Millette, who bought the building earlier this month with two business partners, says the trio is working with an architectural firm to keep some of the details of the former business and its character, such as transforming the wooden bar into desk space. He'd like to keep the openness of both floors, while incorporating conference rooms and other quiet spaces. "We don't want to lose the character of that building," he says. "We're really trying to create a space that is user friendly." Located at 17 N. Washington St., the building first needs a new roof -- it currently "looks like an icicle," Millette says -- and windows need to replaced in accordance to the historic district in which it's located. Then interior renovations can get going in earnest, working toward an aggressive goal of opening in September. He hopes the space brings more people into the downtown area and expects to hire staff to keep it running smoothly. Ideally, Millette would also like to see green technology incorporated into the building, and perhaps partner with a nearby business school. "We'll always have something going on in the building," he says. Millette has lived in the area for some 20 years, having been involved in the New Beginnings Academy nearby as well as a few other business ventures. "This is our home -- we want to invest in it," he says. "Ypsi has a bright future, and we're just excited to be a part of it." Source: Wayne Millette, co-owner Writer: Kristin Lukowsk

Recycled Cycles Bike Shop keeps Ypsi riders rolling

When it comes to bikes, David Yapp wants to keep the wheels turning. Yapp recently founded Recycled Cycles Bike Shop, operating out of a storefront at 32 N. Huron St. in Ypsilanti, to buy, refurbish and sell gently used bikes back to the community. "There are so many bikes already out there, it just makes sense," Yapp says. "And maybe not everyone wants a brand new bike -- maybe it’s something classic they enjoy." Recycled Cycles also accepts donations of used parts to be refurbished or sold, and repairs bicycles. Not only is purchasing a used bicycle usually more economical, but it also holds the opportunity to make the bike unique to the rider, Yapp explains. "Anything that can be of value, we'll save," he says. "We'll use it for the next bike, or a project bike." Yapp draws from his 15+ year passion of "cycling and everything related," he says, including working in bike shops, racing, and riding all over the country. "This is what I know and this is what I love," he says. "It's really just a fun place to work for me." He's hoping to manage the workload with volunteers and friends to start, but as the weather warms up and more people dust off their own bicycles, adding a small staff may be necessary based on growth. He also hopes to offer bike maintenance classes. "There's nothing wrong with used bikes," Yapp says. "We're trying to reestablish a passion for refurbished bikes." Source: David Yapp, founder, Recycled Cycles Bike Shop Writer: Kristin Lukowski

Pixel Velocity scores $10M in Series B round

Pixel Velocity has landed $10 million in seed capital thanks to a Series B round of investment in the image processing and data analytics startup. "They're really well-positioned in an area that combines data from sensors and data analytics," says Jonathan Murray, managing director of the Ann Arbor office of Draper Triangle Ventures, which also participated in Pixel Velocity’s Series B. The Ann Arbor-based company creates sensor technology that helps provide safety, security and operational continuity solutions to commercial and government facilities. Its imagery and data analytic tools help protect users from accidental or natural threats, such as leaks, spills or intrusion. The company is planning to expand into the oil and gas market this year. Money from the Series B will fund the Pixel Velocity’s revenue growth and expanding operations by adding more working capital to its bottom line. That money will help do everything from adding inventory to expanding its staff. The company has hired 10 people over the last year, including positions in executive management, software development, and hardware engineers. It currently employs 17 people and the occasional intern. "We will also be doing some work on our branding," Grisham says. Source: Heather Grisham, COO of Pixel Velocity, and Jonathan Murray, managing director of the Ann Arbor office of Draper Triangle Ventures Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Stout Systems takes aim at record growth year in Ann Arbor

Stout Systems has been riding a nice wave of success since the Great Recession hit, and it looks like the ride has yet to crest for the tech firm. "If it keeps going this way for us it will be a record year for us," says John W. Stout, founder & president of Stout Systems. "It was already a record January for us." The Ann Arbor-based company providing staffing and consulting services in the software and IT sectors. It's fourth quarter last year produced the best sales ever for the 22-year-old firm. That allowed it to add to its staff, including four hires in January and another one coming onboard this month. The firm currently employs 35 people, including a dozen that work at client sites. "The area we have grown the most is our consulting business," Stout says. "It has really taken off in the last few years." Stout Systems also recently won the Corp! Magazine's 2015 DiSciTech Award in the Science and Technology category for its innovative and cost effective project management system. The DiSciTech awards are presented to Michigan companies and educational organizations that are leading the way in science, technology and digital initiatives through innovation, research and applied science. Source: John W. Stout, founder & president of Stout Systems Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Sales of Another Rinse’s recycled goods spread across U.S.

It didn't take much for Another Rinse's made-from-recycled-materials products to carve out their own little niche. The thing is, the Ann Arbor-based company’s never stopped carving. The one-year-old company gives new life to old things by turning them into a refinished product with a new purpose. For instance, it turns old wooden golf clubs into bottle openers. And its sales have been growing exponentially since its launch. They can now be found in 37 states and three countries. "Michigan is our top sales state followed by New York," says Michael Sydlowski, owner of Another Rinse. "We have been streamlining our sales online sales process." Sydlowski worked in sales and marketing before launching Another Rinse out of his basement. At the time he wanted to find a new use for old golf clubs collecting dust there. He turned them into bottle openers and coat hooks. He added old wooden tennis rackets and baseball bats into the mix, along with turning old golf balls into corkscrews. Now he is looking to add reclaimed wood products to his lineup. Another Rinse's products have recently shown up in consignment shops in Wisconsin and Indiana. The company’s products mostly end up being sold online. Sydlowski estimates 90 percent are either bought or gifted to men. "I never thought the split would be that way," Sydlowski says. Another Rinse is run by a core team of three people. Source: Michael Sydlowski, owner of Another Rinse Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Draper Triangle’s Ann Arbor office spreads the seed capital

Draper Triangle Ventures opened its Michigan office in Ann Arbor a year ago, and the venture capital firm is off to a fast start. The Pittsburgh-based firm has made investments in two Ann Arbor-based startups over the last year. The first was in Amplifinity, which makes referral software, in early 2014. Draper Triangle Ventures also recently sunk money into Pixel Velocity, a image processing and data analytics startup. "A person can make and manage two investments per year," says Jonathan Murray, managing director of Draper Triangle Ventures’ Ann Arbor office. "I'll make two investments this year, and Pixel Velocity is one of them." Draper Triangle Ventures has more than $200 million under management across three funds. Its latest investment fund was set to raise more than $100 million. The venture capital firm invests in early stage tech ventures, such as software and IT startups. Murray is Draper Triangle Ventures’ lone representative in Michigan. The firm has its main office in Ann Arbor and another satellite location in downtown Detroit. Murray expects to make one more investment in a local startup this year but that number could grow. "I have a long list (of potential startups to invest in)," Murray says. "There are a lot of very good prospects on it. It could change from two investments to three investments if the right opportunity comes along." Source: Jonathan Murray, managing director of Draper Triangle Ventures’ Ann Arbor office Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

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Inspiring stories from The Henry Ford's Innovation Nation: Thomas Edison

The Henry Ford shares inspiring stories that showcase change-makers and the possibilities for future progress. Celebrate the birth month of Thomas Edison by taking a virtual tour of the workshop where he profoundly changed our world. 

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Inspiring stories from The Henry Ford's Innovation Nation: Aamir Patel

The Henry Ford shares inspiring stories that showcase change makers and the possibilities for future progress.  Meet Aamir Patel, founder of Silic, who developed a highly specialized fabric that uses nanotechnology to repel liquids and stains. Intrigued? Watch this clip to learn more about this entrepreneur's work.

Feature Story Dan Peron at Arbor Brewing Company Microbrewery in Ypsilanti

Building a better beer ecosystem

Having a microbrewery in your community is great. Having a craft brew ecosystem is freakin' awesome! And that's just what Washtenaw County has. What started decades ago as a small homebrewers scene has grown into a beer-o-sphere that includes hop growers, small batch pioneers, a craft brew organization for women, and even beer-flavored suspense novels.

U-M among top 10 universities for Peace Corp volunteers

If you're one of those townies who grumbles every time they see a U-M student playing beer-pong on their front lawn or crossing against the light when you least expect it or, well, whatever townies grumble about (over crowded restaurants, clueless drivers, too loud music, etc), keep in mind that you might be cursing the next Peace Corp volunteer. Yep, U-M ranked 8th when it comes to producing international do-gooders (51 volunteers currently). The university also ranked No. 5 on the Peace Corps' list of the top-producing graduate schools Or so says the Peace Corp in this report.

How Ann Arbor's Skyspecs got off the ground

Ann Arbor-based drone firm Skyspecs lays out the story of its path to investment and product development in Crains' interesting business series, "Startup diaries," analyzing how new metro Detroit businesses find their feet. Excerpt: "But these startups hardly have it easy. They slog through early years developing often-complicated technology and spending just as much time chasing money. It's a drawn-out, gambling lead-up to one day having sales that reward the effort.  SkySpecs launched on paper in 2012, but that was just one small first step. The company's first few years were spent honing its product and chasing money, whether at business plan competitions or from investors. " Read the rest here.

According to science Jolly Pumpkin is 6th best beer in Michigan

Dexter's Jolly Pumpkin Brewery ranks six out of the twelve best beers in the Mitten. Or so says Thrillist online magazine. And, frankly, we take serious issue with that assessment. Don't get us wrong, there are many fine Michigan brews on their "scientific" list. But sixth? Puh-lease. Jolly Pumpkin easily ranks in the top three. So say we all! Excerpt: "Jolly Pumpkin is all about those rustic, country style, sour beers, and if the whole sour thing seems off-putting to you, don’t worry about it. Most folks who think they don’t like sour beer wind up liking Jolly Pumpkin’s sour beer, so much so that their facilities last year maxed out at around 4-5,000 barrels. And although this is a beer list, you should also eat their food. Trust us." Read the rest o' the list here.

Hasini and Harshini Anand are members of Corner Health Center's Youth Leadership Council and mental health advocates.

 


   Voices of Youth
Concentrate's Voices of Youth series features content created by Washtenaw County youth in partnership with Concentrate mentors, as well as feature stories by adult writers that examine issues of importance to local youth. Click here for a full list of the latest content from this series.