Features

Duo Security raises $12M Series B from Silicon Valley VC

Duo Security announced this week that it has raised a $12 million Series B round with a big-name Silicon Valley-based venture capital firm (Benchmark Capital) leading the way. What’s interesting is that Dug Song, the startup's CEO & co-founder, never had any intention of raising the 8-figures worth of new funding. "Benchmark approached us," Song says. More specifically Matt Cohler approached Song. He approached Song multiple times. Song didn't respond. He didn't even pick up the phone when Cohler called because Duo Security wasn’t raising seed capital. Song finally did pickup the phone when several of his friends told him he was crazy for ignoring one of the most successful entrepreneurs in tech today. Benchmark Capital has been in the middle of a number of high-profile deals in the Bay Area since its launch in the mid 1990s, including investments in Zillow, Zipcar, Yelp, and Twitter. It's probably most famous for investing early in eBay. "They are probably one of the top three venture capital investors in the world," Song says. Cohler made a name for himself by getting in on the ground floor at number of high-profile startups over the last decade. He was a founding member of Linkedin. Then he went on to become an early hire at Facebook. Kohler joined Benchmark Capital as a general partner in 2008 and led investments in Dropbox and Instagram. He is now the point person for Benchmark Capital's investment in Duo Security. Duo Security makes online security software, specifically a two-step verification process that confirms the right person is accessing protected information. Duo Push seamlessly integrates with the user's online password system, so when a user logs in on a computer Duo Push sends a push alert to that user's smartphone asking whether to approve or deny the login request. Check out a short video of it here. Song (a big proponent of A2 New Tech Meetup and the Ann Arbor Skatepark) and Jon Oberheide launched the startup in 2009 at Tech Brewery. They raised a seven-figure seed round off the bat, attracting local venture capital firms (Reasonant Ventures) and coastal VCs (True Ventures). They have since grown the company to several dozen employees. Song declined to say how many but did say Duo Security is looking to hire 10 people right now. "There are more (open positions) being added," Song says. Which is why Duo Security is moving. It's nearly tripling its office space to 14,000 square feet at 123 N Ashley in downtown Ann Arbor. "We're about to move," Song says. "Our anticipated move date is in November. It's a big build out." Which might help explain why Song is too busy to take extra investor calls, and why they’re calling in the first place. Source: Dug Song, co-founder & CEO of Duo Security Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Feature Story Chef Takashi at Slurping Turtle

A delicious homecoming: Takashi Yagihashi returns to Michigan with Slurping Turtle

With successful restaurants in Las Vegas, New York, and Chicago, former Iron Chef Takashi Yagihashi could have settled anywhere. But what he wanted most was to bring his family back to Michigan. Which is why Ann Arbor is now home to his latest eatery, the Slurping Turtle. Concentrate's Nicole Rupersberg learns why.

Feature Story Vincent Smith

#EATING: U-M football stars plant new seeds

The news is filled with examples of sports figures behaving badly. Well, here's something a little different: a trio of U-M football players have started the #EATING Project, which seeks to establish community food gardens in underserved communities.

Another day, another best of list for Ann Arbor

So, the danger here is to point to the listicle and call it a day. But even if we are the 13th best place to live according to Livability.com (moving up a few spots from last year) that doesn't mean there isn't room for improvement, right? Or do we sound too much like a mom? Excerpt: "This quintessential Big Ten college town lays claim to the University of Michigan, which includes Michigan Stadium – the largest stadium in North America. Residents have easy access to the more than 300 restaurants located in a 20-mile radius of Ann Arbor, as well as the city's growing metropolitan area that features great schools, medical facilities, culture and more." Check out who else made the list here.

The humans (and lizard people) of Ann Arbor

First there was the popular Facebook page "Humans Of New York," which supposedly sets out to capture the rich pageant of living in America's largest city. Then Ann Arbor created its rather more homogeneous counterpart. Then the inevitable happened. Grad student Jeremy Kaplowitz sought to unmask the lizard people of New York who actually control our world. Now that mission has spread to Ann Arbor as well… though no hidden reptilians have yet to be revealed. Yet. Further proof of a conspiracy? Humans Of New York: https://www.facebook.com/humansofnewyork Lizard People Of New York: https://www.facebook.com/lizardpeopleofny Humans of Ann Arbor: https://www.facebook.com/HumansOfAnnArbor Lizard People of Ann Arbor: https://www.facebook.com/pages/Lizard-People-of-Ann-Arbor

Auto industry showdown: driverless cars vs wireless cars

With Detroit's auto industry developing cars that can talk to one another in order to avoid traffic jams and keep drivers safe, and Google's plan to develop driver-less cars, there's a battle a brew in' for which technology will set the course of our auto future. Excerpt: "Among the advancements automakers announced at last week’s conference in Detroit was GM’s “Super Cruise” system for 2017 Cadillacs, which will let drivers take their hands off the steering wheel and feet from the pedals for periods of highway driving. Like technology being developed by Toyota, Honda Motor Co. and other companies, GM’s system hands control back and forth between driver and vehicle. The approach that Mountain View, California-based Google is taking is, literally, much more hands-off. In May it unveiled plans to deploy at least 100 fully autonomous, two-seat, egg-shaped test cars with a top speed of 25 miles (40 kilometers) per hour and no steering wheel. Google has since said it will include one, as well as brake and gas pedals, as California requires." Read the rest here.

Aut Bar voted Ann Arbor's best neighborhood bar

The outdoor courtyard seating alone made this a slum dunk. But there's so much more! Excerpt: "For the outdoor courtyard seating alone this one"Since we are talking about neighborhood bars, it certainly is not uncommon that neighborhoods have a particular political affiliation," said Orr. "You go to a Chicago neighborhood bar and there will be a certain political affiliation to it. Not that the LGBT community is completely monolithic in its beliefs, but we do believe in supporting the folks who are willing to step out and fight for our rights. So certainly in terms of political work for individual politicians, we have worked a lot in that way and we believe, for the most part, our clientele – our neighborhood, as it were – stands by us on it and understands why we do what we do." was a slum dunk." Read the rest here.

Taste Kitchen to bring locally sourced yet global cuisine to Liberty

Though the owners of the new restaurant coming into the W. Liberty location vacated by sushi place Tamaki will be the same, that's about the only thing Taste Kitchen will have in common with its predecessor. The new, multi-faceted eatery will offer light breakfast, light lunch, afternoon tea service and fine dining in the evenings, all under the theme of thinking globally and acting locally.  "We aren't pigeonholing ourselves into a certain kind of food," says Michelle Hinze, pastry chef and general manager for Taste Kitchen. "Our menu is going to be fresh and vegetarian and vegan friendly. If we feel like cooking Thai one day, we'll do that. If we want to cook  African the next week, we'll do that."  The ever-changing menu will be sourced as locally as possible. According to Hinze, their priority is to use ingredients first from Michigan, and then within a 200 mile radius when possible. The ambiance of the restaurant will move from casual dining early in the day and during afternoon tea service, and then move into a more formal experience at night.  "We want to hit as many target markets as we can," Hinz says. "Our location provides us great access to the college students, and we want to step things up for dinner service to draw in other clientele from the Ann Arbor area."  The goal is to open Taste Kitchen in about two weeks. Hinze expects to hire 10-15 staff members to operate the restaurant. Future plans include getting involved with the community and partnering with local artists and musicians.  Source: Michelle Hinze, Taste Kitchen Writer: Natalie Burg

New Braun Ct. cafe to be whatever patrons make of it

The owners of the Bar at 327 Braun Court are about to launch a new offering at the same address. The Ground Floor Cafe, which will open this week in the location indicated by its name, will offer espresso drinks, wine and beer and light foods such as panini sandwiches and house-made pastries.  "This will be much more like a cafe than the Espresso Bar," says owner Eric Farrell, referring to the pop-up business that recently relocated from the space. "We'll have people eating, having some drinks and hanging out - a place to linger and meet people. Hopefully people kind of make it their own and figure out what they want the space to be."  In the two weeks since the Espresso Bar left, Farrell has been working on light cosmetic upgrades to the space to prepare it for its new purpose.  "The room before was pretty spartan," he says. "It was always intended to be a pop up. We're just upping the aesthetics a little bit. I think it's going to be a welcoming space. I've added some color and texture to the room." Farrell expects the Ground Floor Cafe to open this week. He's hired a staff of three, including the talents of former Zingerman's Next Door and Mighty Good barista Dana Blaisdell. He also anticipates the offerings of the cafe to evolve and grow with the business, just as the Bar at 327 Braun Court has evolved over the years.  Source: Eric Farrell, Ground Floor Cafe Writer: Natalie Burg

Mentor2Youth grows into Ypsilanti office space, looks to add staff

While in graduate school at Michigan State University, Emmanuel Jones conducted a study to determine the impact of mentorship on the grades and behavior of middle school aged children. His findings led him to a new career. The positive results inspired him to create Mentor2Youth, a non-profit organization serving kids primarily in the Ypsilanti area. Three years later, the growing organization has found a new home in the newly renovated Ypsilanti Town Center on Ecorse. Rd.  "I felt this location would be prefect because there's not really a lot of support services on that side of town," says Jones. "Being on a bus line allows families who might not have transportation to come learn more about our programs."  And Mentor2Youth needs the space. What began as one program serving 15 student has grown into multiple programs during the school year and summer offered in multiple locations, having 350 kids so far. Programs include everything from life skills and career planning to fun field trips the students wouldn't otherwise have the opportunity to experience.  "We want them to get thinking long term about what they wan to do with their lives," Jones says. "We try to expose students to their potential and what they're capable of doing." The new office will help support six to 10 part-time staff Jones hopes to soon hire to help manage the growing program. Through the help of grants, he plans to eventually expand his staff to include permanent employees. As the organization is always in need of volunteers, in-kind and financial contributions and other means of support, those interested in helping out can find more information on Mentor2Youth.com  Source: Emmanuel Jones, Mentor2Youth Writer: Natalie Burg

Coval Fitness expands into 4,500 sq ft Phoenix Dr. space

Coval Fitness and Sports Performance has been on a growth path for some time. After growing its staff last year, the semi-private fitness and sports performance facility has relocated to a new, 4,500 square foot location on Phoenix Dr.  "We expanded due to a growing client base and because we wanted to have a space that fit with our vision," say owner Mike Coval. "In a nutshell, our vision is to have a high-end facility that clients can come to for their fitness and performance needs, massage therapy, physical therapy, and nutrition coaching." Prior to opening in May, Coval renovated the new space to include a bathroom with a shower and two changing rooms, in addition to cosmetic renovations. His next step will to be to get rid of the drop ceiling. The new location he says, will allow Coval Fitness and Sports Performance to mode their vision.  "Its also ideal because once this building is full, there will be so many other companies that we share the space with," he says. "This allows for more exposure and opportunities to connect with people." Though his staff remains at four employees, the continued growth of the business has expanded their hours. Coval's three-year vision includes becoming go-to fitness and sports performance center in the Ann Arbor area.  Source: Mike Coval, Coval Fitness & Sports Performance Writer: Natalie Burg

Covaron Advanced Materials raises seven-figure Series A

Big changes have taken place at Covaron Advanced Materials over the last year. The Ann Arbor-based startup has brought in a new CEO, raised a seven-figure Series A, and consolidated its investor circle to one person. Covaron Advanced Materials, formerly Kymeira Advanced Materials, is developing a new chemistry for ceramics. The new technology was developed by company founder Vince Alessi and co-founders Cam Smith and Reed Shick. The advanced ceramics formula makes ceramics a more affordable and streamlined option for a number of molds and durable goods, such as those used in the automotive sector. "We are a game-changing technology for a lot of industries," says Michael Kraft, CEO of Covaron Advanced Materials. Which explains why it won the student portion of the Accelerate Michigan Innovation Competition in 2012. And then the main competition at Accelerate Michigan in 2013. It also raised a $300,000 seed round from a number of local venture capital organizations, like Ann Arbor-based Huron River Ventures and Invest Detroit's First Step Fund. "We had a lot of help from the Ann Arbor SPARK Business Accelerator Fund," Kraft says. Those investors are gone now. Kraft says a single investor he declined to name but described as a person who owns "a Michigan-based consortium of companies" bought out everyone else and provided the money for a Series A. Kraft declined to name the individual or the exact amount of the Series A besides saying it was in the "seven figures" and provide enough funding to grow the company for 24 months. Kraft, a Michigan State University graduate, was recruited from California to serve as Covaron Advanced Materials' new CEO. He explains the plan is to focus on growing the company through targeted application development of its ceramics technology. The idea is to aim for a long-term growth cycle (similar to what life sciences startups go through) so it can maximize the use of its technology in several markets. Covaron Advanced Materials and its team of 10 people (all recently moved from independent contractors to full-time employees) plans to leverage the sole investor’s portfolio of firms to grow. "We're in a consortium of companies that employs more than 1,000 people and has more than $150 million in capacity," Kraft says. "That gives you an idea of the support we have." Kraft acknowledges this is a unique situation for a startup. There are no exit requirements or need to pump up artificial value or need to exit because a subset of the startup's investors needs to cash out. There is only the goal of growing a big business that could one day have its fingers in a lot of pies. "We have choices," Kraft says. "We don't need to paint ourselves into a corner." Source: Michael Kraft, CEO of Covaron Advanced Materials Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Coyote Logistics' Ann Arbor office spikes to 45 people

Last year Coyote Logistics made headlines with its plans to open up an office in Ann Arbor and create dozens of new jobs. This year the Chicago-based company is well on its way to meeting that goal. Coyote Logistics has hired 45 people at its new office after opening it late last year. That puts it roughly a third of the way toward it goal of hiring 125 people in Ann Arbor over its first three years. The company is still moving toward that goal aggressively. "We're going to hire 35 more people there over the rest of the year," says Jodi Navta, vice president of marketing & communications for Coyote Logistics. "It's a variety of positions." Coyote Logistics provides third-party logistics and transportation services for North American shippers. While it's based out of state, many of the firm's employees have roots in Michigan. Navta and Coyote Logistics’ CEO, Jeff Silver, are University of Michigan graduates. Those connections, along with a $1 million Michigan Business Development Program incentive from the state of Michigan, sealed the deal to open the office. The company's leadership team hasn’t been disappointed so far. "We're happy with the talent and we're happy with the number of people we have there," Navta says. Source: Jodi Navta, vice president of marketing & communications for Coyote Logistics Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Software firm Deque doubles staff in Ann Arbor

Deque's presence in Ann Arbor has been growing both organically and rapidly in the last year. The software firm has doubled its local staff, hiring 13 people. It now has 25 of its 80 employees based in Ann Arbor, which is up from six two years ago. "People love Michigan," says Preety Kumar, CEO of Deque. "They keep wanting to relocate there." Deque's software makes websites more accessible to people with disabilities. The idea is to tap into larger markets by making a digital process accessible to everyone. For instance, Deque's products and services make it easier for blind people to access popular websites. Check out more of Deque's accessibility success stories here. The 15-year-old company has experienced a significant spike in the demand for its services over the last year. It was able to attract a dozen new customers in 2013. As of July, it has landed 21 new customers for this year. Among those new customers, many of them are in the financial services, e-commerce, education technology, and aviation sectors. "Airlines are definitely warming up to it," Kumar says. Which has led to a spike in growth in the Ann Arbor office. The Virginia-based company has had a presence in Ann Arbor for years. It’s CTO lives in Ann Arbor. Today it has 25 people in the office and Kumar expects that number to keep growing at an aggressive pace. "We continue to add good people to the team," Kumar says. "Right now our biggest bottleneck is us. The pipeline is healthier than ever." Source: Preety Kumar, CEO of Deque Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

The Whole Brain Group moves to bigger office in Ann Arbor

The Whole Brain Group found a new home in Ann Arbor this summer. The digital marketing firm moved from Tree Town's downtown to a new office near Briarwood Mall in May. The new space measures out to just under 5,000 square feet, which is double the size of its previous office. "We were sitting on top of each other," says Marisa Smith, head brainiac at the The Whole Brain Group. "People were doing desk sharing or working from home. Our creative director was moving here from California so we needed a place to put everyone." The 12-year-old company started off building websites and evolved into a full-service digital marketing firm. Among its offerings are consulting on inbound marketing and sales lead generation. Many of its new customers are gazelle firms that are growing fast. Smith has noticed they are looking for a more comprehensive help when they contract with The Whole Brain Group. "I saw that these business owners not only needed marketing advice but business advice," Smith says. "We wanted to offer both things so we could be a one-stop shop." And it's worked out for The Whole Brain Group so far. It's revenue is up 40 percent, allowing it to cross the $1 million threshold over the last year. It has also hired four people, expanding its staff to 13 employees. Source: Marisa Smith, head brainiac at the The Whole Brain Group Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Mountain Labs streamlines medical research with software

Alex VanDerKolk is a graduate of the University of Michigan's Ross School of Business but also a fan of medical research. The recent recipient of a BBA is leveraging both passions to launch his own startup, Mountain Labs. "I have always been interested in the medical field," VanDerKolk says. The Ann Arbor-based company is developing data collection software, called Symport, for medical research. The idea is to create a platform that is simple to use, HIPAA complaint, and smart enough to streamline what can often be the archaic world of the healthcare research. VanDerKolk has firsthand experience of how archaic that healthcare research can become. The 20-something worked as a data analyst for the University of Michigan Health System for a few years before he graduated late last year. He was appalled at the 20 Century-style tools university researchers were using to conduct 21st Century research on multi-million-dollar projects for a multi-billion dollar research institution. "It was just a very inefficient process," VanDerKolk says. "We saw a lot of very smart people spending a lot of their time doing very mundane managerial tasks." That inspired him to launch Mountain Labs last April. He raised $200,000 in seed capital and put together a seven-person team to build the software platform (with the help of Atomic Object’s Ann Arbor office) this summer. The technology is now in private Beta being tested with a few different research teams at U-M. "Now we're starting to add software developers and bring our developers back in house," VanDerKolk says. Mountain Labs is aiming to conduct a true pilot phase with a University of Michigan research department this fall. It is also looking to raise a $750,000 Series A by January so it can start looking at doing pilots outside of U-M. Source: Alex VanDerKolk, president of Mountain Labs Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Ilium Software grows with work on eWallet platform

Ilium Software's eWallet platform is driving growth for the Ann Arbor-based firm. The technology stores and categorizes all of the various passwords for its user, enabling them to access their private information, financial instruments, and other important online functions. The software can be used from a desktop computer to a mobile device. Sales of the eWallet platform have risen smartly over the last year with the Windows 8 version (a full-screen app) leading the way. Ilium Software has in turn spend most of its time improving eWallet, releasing a new iOS version and upgrading its security features. It's also looking at accessing Apple’s fingerprint technology for mobile device and Apple Pay. "It's our product that has gone back to the beginning of the company in 1997," says Ken Morse, managing partner of Ilium Software. Ilium Software has been making mobile apps before most people had even heard of the word, designing apps for PDAs and other forms of technology in the late 1990s. The firm's team of half a dozen employees (it hired someone about a year ago) and a handful of independent contractors are focused on making its software platforms like eWallet ready for the next big thing in software. "We're in the process of seeing what we can do with this latest iOS version," Morse says. Source: Ken Morse, managing partner of Ilium Software

Feature Story Jeff Irwin

OpEd: Empowering People to Power Michigan

Despite the rising demand for renewable energy generation in Michigan, individual property owners desiring to install renewable energy systems face numerous barriers and caps. Hence, the Energy Freedom bill package, a market-based approach that facilitates renewable energy generation at the individual level. State Rep. Jeff Irwin, a sponsor of the 4-bill package, opines on how to lift these barriers, thereby turning small-scale generation into a large-scale pursuit. 

Feature Story Kirk Westphal at the current Ann Arbor Amtrak station

Choo-choo-choosing a new home for Ann Arbor's Amtrak Station

Designated as the busiest Amtrak station in Michigan, Ann Arbor's long outdated depot is up for reconsideration - in terms of infrastructure, location and economic impact. Whether we're talking commuter needs or community development, it's a complicated equation with no easy answer. 

Feature Story Molly Leonard at SPARK East

Changing careers in the startup lane

In today's economy, finding a job is challenge enough. Now try finding one at age 45. Or 55. And in a different field. Where do you start? How do you present decades of work experience to an industry unfamiliar with your skill set? Shifting Gears is a career-transition program for mid-to-late-career professionals looking for a second act.

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.