Wednesday, November 12, 2014

Source: Concentrate

Ann Arbor-based startups all but swept the awards at the Accelerate Michigan Innovation Competition last week, taking home a combined $740,000 in seed capital. Startups from Tree Town took the top two spots, and won six out of the nine sub categories. A startup led by University of Michigan students also took second place in Accelerate Michigan's student portion of the competition. The big winner was SkySpecs, a startup developing drone technology, taking home the $500,000 first place prize. Getting here has been a long road for Ann Arbor-based company, originally placing in the student portion of the competition in 2012. "This was our third year doing it," says Danny Ellis, CEO of SkySpecs. "It was a really, really good competition. I was impressed with so many of the competitors." Cribspot, which calls Kerrytown home and has an office in downtown Detroit, took second place in the overall competition. That showing earned it $100,000 in seed capital, which company plans to use to adds staff to help further develop and expand its online-student-housing platform. The following Ann Arbor-based companies took home category awards: - Ornicept won the IT prize (worth $25,000) for its software platform that helps field workers collect and manage data. - Solartonic won the Alternative Energy prize ($25,000) for its flexible solar panel technology, solarap, that attaches to non-traditional surfaces, such as wrapping around the pole of a street lamp. - Akervall Technologies won the Advanced Materials prize ($25,000) for its thin-yet-tough mouthguard made of non-compressible, perforated materials. - Freestride Therapeutics won the Life Science prize ($25,000) for its drug that relieves and even prevents shin pain for racing horses. - AlertWatch won the Advanced Transportation prize ($25,000) for its patient-monitoring technology. - TurtleCell won the People's Choice award ($10,000) for the second year in a row for its Phone case that comes with retractable earbuds. HeelSecret took second place in Accelerate Michigan's student competition ($5,000) for its shoe attachment that helps better connect high heels to the people wearing them. The startup is led by University of Michigan students. Source: Danny Ellis, CEO of SkySpecs Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Technology and Innovation

SkySpecs wins Accelerate Michigan, spot at Techstars incubator

Wednesday, November 12, 2014

Source: Concentrate

Third time turned out to be the charm for SkySpecs. It took the Ann Arbor-based drone startup three tries at the Accelerate Michigan Innovation Competition before it won it all and a hefty payday to go with it. SkySpecs first participated in Accelerate Michigan's student competition in 2012 when the startup was being launched by some University of Michigan students. It took third place in the student portion that year. It came back again in 2013 and made the semifinals of Accelerate Michigan. This year it went all the way and took home $500,000 in seed capital. "The biggest things for us is it's going to really accelerate our product development," says Danny Ellis, CEO of SkySpecs. "It will enable us to do what we need to do to get our project out into the world and hire more people." SkySpecs is developing aerial drones that use artificial intelligence to inspect infrastructure in dangerous locations, such as the blade of wind turbines. It's WingMan platform allows the aircraft to hover near an object without fear of hitting it. Check out a demonstration company’s WingMan technology here. SkySpecs has hired two people (business development and computer programer) over the last year, expanding its staff to nine employees. Those nine people are currently working in New York City at the Techstars incubator. The company plans to wrap up its tour there and return to Michigan by February when it hopes to have 10 prototypes working in the field. "We thought (Techstars) was going to help us to take it to the next level," Ellis says. "They have the right network and the right skill set." Source: Danny Ellis, CEO of SkySpecs Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Kids and Education

Cribspot adds $100K to seed round with Accelerate Michigan win

Wednesday, November 12, 2014

Source: Concentrate

Cribspot announced raising a $660,000 seed round a little more than a month ago. Add another six figures to that number after its win at the Accelerate Michigan Innovation Competition. The Ann Arbor-based startup, it also has an office in downtown Detroit, took second place at Michigan's pre-eminent business plan competition. That showing comes with $100,000 in seed capital the startup can use in the best way it sees fit. "We want to add more features that cater more toward landlords," says Jason Okrasinski, co-founder & CEO of Cribspot. "We also want to have a larger footprint across the country." The 1-year-old startup and recent Bizdom graduate is creating an online portal that creates one central website for off-campus housing in higher education. The co-founders, mostly University of Michigan students, recognized that finding off-campus houses is an exercise of searching craigslist ads and signs on the sides of buildings. Cribspot offers a central location where students and landlords can come together to find/offer/manage student housing. Cribspot landed $660,000 in seed capital early this fall with the round led by Huron River Ventures. It plans to put most of the $100,000 it won at the Accelerate Michigan competition to hiring another software engineer, expanding its staff to six full-time employees and four interns. It is also looking to expand into an other few university markets (it’s currently in 15) including Wayne State University and the University of Detroit Mercy. Source: Jason Okrasinski, co-founder & CEO of Cribspot Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Technology and Innovation

Caelynx expands bottom line on growth of software platform

Wednesday, November 12, 2014

Source: Concentrate

Three years ago Caelynx made all of its money from its engineering consulting and staffing services. By next year its only going to get about half of its bottom line from those sources. The other half, from its rapidly growing software platform. "Software is continuing to be the major growth area," says Hans Steiner, director of business development for Caelynx. "All areas are growing but software is leading it." The Ann Arbor-based company's computer-aided engineering platform works as a simulation platform for the company. "This allows them to test it virtually so they can see if it performs," Steiner says. Caelynx recently notched another 20 percent revenue growth year, making it the sixth consecutive year to do it. Ann Arbor SPARK has now recognized Caelynx as one of its FastTrack award winners for exponential revenue growth. Caelynx has also hired one person in the U.S. and three for its Romania office over the last year. It now has a staff of 12 people in the U.S. and six in Romania. The company also recently moved from Ann Arbor's southside to a new office just north of downtown near the Amtrak train station. "It's smaller but it's the right size for us," Steiner says. Source: Hans Steiner, director of business development for Caelynx Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Economic Development

Ann Arbor lands office for Texas-based VC firm, Mercury Fund

Wednesday, November 12, 2014

Source: Concentrate

Mercury Fund, a Houston-based venture capital firm, is opening its Midwestern office in Ann Arbor and is taking aim at making investments in Michigan-based startups. To solidify its plans it has brought on Adrian Fortino as a partner to run the Ann Arbor office. Fortino had been running the Invest Detroit fund (he will remain an advisor) and will utilize his local expertise to make more investments in local startups. "We are deeply interested in exploring the research and industrial background here," says Adrian Fortino, partner with Mercury Fund. "I see an immense opportunity in the industrial and research corridors." Mercury Fund is in the midst of raising a $100-million investment vehicle, which Fortino expects to close before the end of the year. Mercury Fund has made investments in two local startups, DeepField and Swift Biosciences, and is currently looking at other potential investments. The Ann Arbor office of Mercury Fund is located in the Headwaters space in Kerrytown. Headwaters is a small community of startups and early stage investors led by Ann Arbor-based Huron River Ventures. "There is an incredible value to being around other investors in town," Fortino says. Source: Adrian Fortino, partner with Mercury Fund Writer: Jon Zemke

Feature Story

Charlie Engelman at the U of M Museum of Natural History

Kids and Education

How Ann Arbor helped launch a next generation explorer

Patrick DunnWednesday, November 5, 2014

From a video about squirrels on U-M's diag to a National Geographic grant to film extreme tree-climbing, U-M student Charlie Engelman has turned a video hobby into the start of a career in educational entertainment.

Feature Story

Building Communities

New philanthropists: Under 40 and giving more than just a check

Kristin Lukowski Wednesday, November 5, 2014

Philanthropy isn't just for wealthy gray hairs determined to leave a legacy. Increasingly, young professionals are getting involved through volunteerism, nonprofit boards, and giving circles. Concentrate looks at a trio of young Ann Arbor couples and their efforts to give back to their community.

Economic Development

Ann Arbor "Hackomotive" winner sell stake in mobile app

Wednesday, November 5, 2014

Source: Lansing State Journal

Ann Arborite Steve Schwartz is one third of a trio of entrepreneurs (one in Lansing, one in Seattle) who developed an app called Carcode, that connects customers and auto dealerships via text message. Success took less than a year. Excerpt: "Berkowitz would not disclose financial terms of the deal. But Gorton and his team said the transaction was “life-changing.” The group also declined to accept investment offers while launching Carcode, which allowed each of them to keep a larger ownership share." Read the rest here.

Economic Development

Ann Arbor in top 10 for construction job growth

Wednesday, November 5, 2014

Source: SurfKy.com

Look at all the giant cranes around town and it should be little surprise that Ann Arbor is a destination for construction employment. In this case we're seventh on the list. Excerpt: "In addition to being the home of the University of Michigan, Ann Arbor is also number 7 on our list of top cities for job growth in construction. From August 2013 to August 2014, the Tree Town had a total construction job growth of 18.4 percent. Though job growth in construction is strong, the University of Michigan remains the city’s largest employer. The city is also a regional hub for technology, biotechnology, health services, research and manufacturing." Read the rest of the list here.

Community Development

Washtenaw County an early adopter of single point of entry homeless services

Wednesday, November 5, 2014

Source: Lafayette Journal & Courier

As financial support dwindles, nonprofits that are part of homeless service system are adopting new strategies to offer care. Excerpt: "Here's how it works in Washtenaw: A nonprofit organization called Housing Access handles all visits from potential clients. A separate 24-7 hotline operated by the county's Salvation Army fields calls for services. Staff members then assign clients a vulnerability rating that determines what kind of services individuals receive. Outside of a few exceptions, such as the domestic violence shelter, the organizations don't field calls directly from potential clients. By having just one agency screen potential clients, the system streamlines the intake process and ensures that all participating agencies receive the same data, making it easier for agencies to coordinate on getting clients a shelter bed." Read the rest here.

Economic Development

Ann Arbor's Avegant raises $9+ million. Is this the future of video?

Wednesday, November 5, 2014

Source: Wall Street Journal

Could Glyph be the next generation in entertainment viewing? Some big investors are betting on that to be the case. Excerpt: "Glyph is based on technology developed by Dr. Allan Evans, a graduate of the University of Michigan, and relies on images that are generated from reflected light, which mimics how the human eye sees the world. Each headset incorporates an array of tiny mirrors that reflect light onto the retina. Reflection creates images that are crisp, avoiding the pixelated effect of images on older televisions and on smartphones, for instance, when their screens are too close to the eye, the company said. Video for Glyph is generated from a smartphone or other mobile device and connects to Glyph through an HDMI cable that Avegant provides." Read the rest here.

Healthy Communities

B Young B Fit expands into 4,200 sq. ft location

Natalie BurgWednesday, November 5, 2014

Source: Brian Young, B Young B Fit

Ann Arbor native and personal trainer Brian Young's B Young B Fit began in a 900-square foot location in 2006 and has been beefing up ever since. In 2010, the member-focused gym grew into a 3,500 square foot location in Glencoe Crossings, and then continued its growth this year by moving to a 4,200 square foot space on Washtenaw Ave. "This new studio is designed with field turf, state of the art equipment, a private yoga studio and all the necessary tools for us to train everyone from the elite athlete to the beginner fitness enthusiast. A former Snap Fitness, the space was ideally suited to BYBF's needs. It also includes outdoor studio space for boot camp classes and other training classes. The BYBF concept is intended focus on personalized fitness and individual progress. In addition to serving individual members, BYBF also works with local businesses on their corporate wellness programs, an initiative Young plans to expand upon in his new space. "We also are growing our Sports Performance programs to work with local high schools for boys and girls in sports," he says. "This is a big passion of mine working directly with athletes as I was once in their shoes." Source: Brian Young, B Young B Fit Writer: Natalie Burg

Entrepreneurship

New State St. Area men's barber spa aims for December opening

Natalie BurgWednesday, November 5, 2014

Source: Birdie White, Taylor & Colt

If men in Ann Arbor's State Street Area start looking a little more dapper in 2015, there's a reason why. Toronto-based men's barber spa Taylor & Colt is bringing its grooming services south of the border, and Ann Arbor will host its first U.S. location. "We’re beginning to see men have an appreciation for the precise grooming techniques of their fathers and grandfathers," says Taylor & Colt's Birdie White. "We also want men to enjoy taking a bit of time for themselves in a space exclusively designed for them, rather than in a salon designed for women." White says Ann Arbor was chosen as the first U.S. Taylor & Colt for its unique, bustling downtown vibe. The shop's buildout is now underway in their 1,100 space on E. Liberty. "The physical space will be completely renovated, right down to the studs. Ann Arbor will be our flagship location, so we didn’t hold back," says White. From here, Taylor & Colt plans to open a shop in Rochester Hills next year, followed by Birmingham, Grand Rapids, Lansing and then on to other states. White hopes to finish renovations by mid-December and open in time for the holiday rush. They are currently hiring 7 to 8 barbers, as well as support staff and managers. Source: Birdie White, Taylor & Colt Writer: Natalie Burg

Arts and Culture

DFCU eyes Carpenter Rd. location for new branch in 2015

Natalie BurgWednesday, November 5, 2014

Source: Mark Shobe, DFCU Financial

Ann Arbor is Dearborn-based DFCU Financial's fastest growing market. To keep up, the credit union is looking at Pittsfield Twp. site to replace an existing branch with a larger location that offers more amenities. "It’s a high-traffic intersection, and therefore current and potential members will pass by this corner every day," says DFCU Financial CEO Mark Shobe of the new Carpenter Rd. site. "Its proximity to our current branch is an added bonus for an easy transition for our membership." The proposed branch would be built in place of the now vacant Great Lake Chinese Seafood Restaurant on Carpenter. The one-acre property would include a new 4,600 square foot branch, drive up window and ATM, and include services "to fit our brand promise," says Shobe. DFCU Financial hopes to move forward with the multi-million dollar project in mid- to late-summer next year. Seven to nine full-time employees are expected to work in the new location. Source: Mark Shobe, DFCU Financial Writer: Natalie Burg

Arts and Culture

Neighborhood oriented Bake Me Crazy brings cookies and pizza to E. Madison

Natalie BurgWednesday, November 5, 2014

Source: Harold Solomon, Bake Me Crazy

If there's such thing as the perfect resumé for a pizza and cookie bakery entrepreneur, Harold Solomon has it. He began his career working for a French bakery before spending a decade in research and development for Dominos, working for and being a franchisee for Cottage Inn and then bringing the Insomnia Cookie truck to town. Now, he's shed those big business names and has opened his very own twist on all of it: Bake Me Crazy on E. Madison. "I liked the Insomnia Cookie concept, but I'm a pizza guy," Solomon says. "We're, in effect, complicating their business model with other items we think people would like delivered." Though the menu is still under development, that will include pastries, shakes, lunches, breakfast sandwiches, and, of course, pizza. Both with his full pizzas and the pizza by the slice he sells now, he plans to follow through on the "crazy" part of his company name with such pies as pot roast pizza, spaghetti and meatball pizza, Asian fusion pizza and more. Solomon's experience in the food industry has taught him the importance of a good, long slow opening, during which he can perfect his menu and get everything up to snuff. He's been quietly serving to residents and workers in his neighborhood for a couple of months now, but is looking forward to a big roll out soon. "We're almost there now, at the final menu stage" he says. "I'm thinking a couple of weeks." Bake Me Crazy currently employs a staff of four in the 900 square foot location near the corner of Main and Madison. As his delivery services and grand opening gets underway, Solomon estimates he'll employ between 10 and 20 workers. Source: Harold Solomon, Bake Me Crazy Writer: Natalie Burg

Economic Development

Edmunds acquires Tech Brewery’s Carcode SMS

Wednesday, November 5, 2014

Source: Concentrate

Automotive website Edmunds has acquired Ann Arbor-based Carcode SMS, making the mobile startup the firm's first acquisition. Carcode SMS created a website plugin that allows consumers to text automotive dealership staff and inquire about a specific car. The software assigns local cell phone numbers to dealerships so mobile shoppers can text them and provides the dealership with an app that allows staff to respond and manage conversations in a compliant environment. Edmunds plans to launch this technology across its dealership network, providing CarCode SMS for free to both dealers and consumers. "More and more traffic is going through the dealerships mobile websites," says Steve Schwartz, co-founder of Carcode SMS. The Tech Brewery-based got its starts a couple of years ago creating mobile technology for automotive dealerships that leveraged QR codes. The three-person team pivoted a year ago to focus on the text-message conversations platform. It won the 2014 Edmund Hackomotive contest last spring. That was the first contact Carcode SMS had with Edmunds, which led to an invitation to participate in the company’s newly formed startup accelerator program last summer. It also led to a spike in the startup’s revenues thanks to dozens of new dealerships signing up for its . "We ended up generating revenue very quickly after the hackomotive competition," Schwartz says. It ended with the acquisition. The terms of the deal were not disclosed. Schwartz and one of the other co-founders are leaving the company while Carcode SMS' CEO takes on a role with Edmunds. Source: Steve Schwartz, co-founder of Carcode SMS Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Universal Marketing Group hires 75, looks to hire 100 more

Wednesday, November 5, 2014

Source: Concentrate

Universal Marketing Group announced the opening of a new call center in Ann Arbor last year with lots of fanfare. The Toledo-based firm promised to creates dozens of jobs and invest millions in Tree Town. One year later it has accomplished a lot of those things. The 11-year-old company has grown the Ann Arbor office (its second location) to 75 people, and it’s in the process of hiring 100 more people. "It's going pretty well," says Kirk Schimmoeller, general manager of Universal Marketing Group. "We are taking on more clients as well as servicing our existing client. We have the new office up and running now." Universal Marketing Group is occupying a large section of the former Border headquarters. It received a $600,000 incentive from the state to open the location with the promise of creating 400 new jobs by 2016. The company currently employs 300 people overall, and plans to have 150-200 employees in Ann Arbor by the end of next year. That hiring is ramping up now because its the beginning of the company’s busy season handling work for retailers and gyms. "Our busy season continue through the first quarter," Schimmoeller says. Source: Kirk Schimmoeller, general manager of Universal Marketing Writer: Jon Zemke

Economic Development

Cayman Chemical hires 17 as it fills out Ann Arbor offices

Wednesday, November 5, 2014

Source: Concentrate

Interns are an important part of Cayman Chemical's growth. The bio-tech firm has hosted a steady stream of interns over the years and turned a number of its former interns into full-time positions. The Ann Arbor-based company hosted 15 interns over the summer, and has three right now. Over the last year, the company has turned seven into full-time employees making up nearly half of its new hires. And the firm is looking for more. "We are working to hire interns all year," says Christine Booher, vice president of human resources for Cayman Chemical. "We want to hire five right now." The 34-year-old company provides researchers with bio-chemical tools and research services. It has hired 17 people over the last year, and is currently looking to hire another four people right now. Those new job openings include two entry-level scientists, a regulatory affairs professional, and a facility management professional. Check out its open positions here. That growth puts Cayman Chemical’s staff to 225 employees. A consistent growth in revenue (Booher declined to say how much) has lead to the constant hiring. That has allowed the firm to continue filling up newly acquired space. The company doubled its building count in Ann Arbor to four last year, and recently just opened a new product shipping area. "We have our facilities pretty much full at this time," Booher says. Source: Christine Booher, vice president of human resources for Cayman Chemical Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Technology and Innovation

RetroSense Therapeutics scores FDA orphan status

Wednesday, November 5, 2014

Source: Concentrate

RetroSense Therapeutics hit a significant milestone when the U.S. Food & Drug Administration granted the Ann Arbor-based startup an orphan designation for its lead technology. Orphan status for a biopharmaceutical company is actually much better than it sounds. It gives the company bureaucratic cover to continue keep pushing forward its commercialization efforts by helping protect its rights to its research. "It's a form of intellectual property identification," says Sean Ainsworth, CEO of RetroSense Therapeutics. "That's a key part of it." The 4-year-old startup is developing a novel gene therapy to restore vision in retinal degenerative diseases, using technology licensed from Wayne State University. RetroSense Therapeutics' platform extracts a new gene from blue-green algae that helps make cells more photo sensitive. The company plans to apply this gene to human cells to regenerate photo receptors in the retina. The FDA Orphan designation is intended to support the development of medicines and technologies that diagnose, treat or prevent rare diseases and conditions that impact 200,000 people or fewer in the U.S. It serves as an incentive for their development by designating a seven-year period of market exclusivity following FDA approval, along with certain tax credits for clinical testing expenses. "It gives us the chance to demonstrate efficacy," Ainsworth says. "We expect to see that in our stage one clinical study." RetroSense Therapeutics employs four people. It is in the process of wrapping up some of its pre-clinical testing and plans to launch clinical tests in 2015. Source: Sean Ainsworth, CEO of RetroSense Therapeutics Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

DotMine Day Planners relaunches on consumer demand

Wednesday, November 5, 2014

Source: Concentrate

Sarah Nicoli left the corporate world more than a decade ago to start her own firm, DotMine Day Planners. These days she is relaunching the company after realizing there is demand for good, old-fashioned, paper-and-pen day planners from a core group of her old customers. "I just got an email today from a woman who placed an order," Nicoli says. The Ann Arbor resident worked in product development at Proctor & Gamble before launching DotMine Day Planners in 1999. She built up the company until last year when she choose to focus on digital versions. That's when she realized her core customer group still really liked the feel of in-hand planner. "People emailed us saying last year was the worst year for them without their paper planner," Nicoli says. Now DotMine Day Planners is relaunching its product and rebuilding its relationships with retailers. It has rebuilt its team to seven people and has added a marketing person recently. Nicoli plans to keep rebuilding her good business through the rest of next year. Source: Sarah Nicoli, president of DotMine Day Planners Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

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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.