Wednesday, February 19, 2014

Source: Concentrate

What do you do when you want to launch a new economy startup? Find a new economy pain in the butt and begin working on a solution. It also helps if you can have a tech titan give you a shout out to get things started. That's what's going on with Tag Contacts. The startup is the brainchild of two University of Michigan undergrads who want to build a better contacts apps for smartphones. The startup also managed to get a bump in interest when Twitter CEO Dick Costolo took notice of Tag Contacts and told the world. "We're trying to go back to basics," says Chris O'Neil, co-founder of Tag Contacts. "Tag is for play tag on the playground. We’re trying to make it as simple as possible." O'Neil, who is also president of MPowered, and Billy Irwin are juniors at U-M studying computer science. They became frustrated with a million and one annoyances with traditional contact lists on their smartphones, so they started reinventing the technology. That meant launching Tag Contacts, which is now composed of a team of five people, last October. Tag Contacts technology, which is in private Beta, aims to make using the contacts list on a smartphone simpler and more intuitive. For instance, it allows users to sort contacts by which ones were recently entered. It also differentiates between contacts found on social media and in real life. "The people you call and text aren’t necessarily the people you interact with on social media," O'Neil says. "We want to get you through to the people you want to call." Tag Contacts caught Costolo's eye last week. The Twitter CEO, also a U-M alum, began following Tag Contacts and tweeted the startup, which brought about a world of attention. The startup is now pulling allnighters to get its technology into Apple's App Store by March. Source: Chris O'Neil, co-founder of Tag Contacts Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Entrepreneurship

U-M startup takes top prize at Michigan Collegiate Innovation Prize

Wednesday, February 19, 2014

Source: Concentrate

GENOMENON, a startup founded by University of Michigan students, walked away with the top prize at the Michigan Collegiate Innovation Prize last week. The win allows the healthcare software startup to pocket $40,000 in seed capital. GENOMENON's technology is the product of three U-M pathologists. The trio is developing software focused on improving cancer diagnosis and treatment. The company won the top prize at the event and the competition’s health category. This is the fifth year for the competition, which has changed names and pivoted its focus a couple of times. The Michigan Collegiate Innovation Prize is a three-month program that helps innovators find the market for their products. It is organized by U-M's Center for Entrepreneurship and offers $100,000 in seed capital for student-led startups. Startups from across Michigan’s colleges are eligible to compete. This year it fielded 81 student teams from 16 colleges. Twenty three of those teams made the semifinals and five of those teams walked away with seed capital prizes. "It's about talent retention through Michigan-based ventures," says Amy Klinke, associate director at University of Michigan’s Center for Entrepreneurship. "For us it's a win that these students stay in the state to lead these ventures." The Michigan Collegiate Innovation Prize got its start as a business plan competition at the University of Michigan. It then pivoted to become the Michigan Clean Energy Competition and expanded its reach to include participants from across the Great Lakes State. This year it opened up the competition even further to invite participants from a number of different new economy sectors, such as software. Source: Amy Klinke, associate director at University of Michigan’s Center for Entrepreneurship Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Economic Development

Thomson-Shore acquires PublishNext, Seattle Book Co

Wednesday, February 19, 2014

Source: Concentrate

Thomson-Shore has acquired PublishNext and its subsidiary Seattle Book Company in an effort for the Dexter-based firm to broaden its publishing platform. "It is something we have been wanting to do for sometime now," says Kevin Spall, president of Thomson-Shore. The 40-year-old company, which is 100-percent employee owned, operates as a full-service book publishing, production, and distribution company. It employs 200 people and a couple of summer interns. The firm has hired 10 people (mainly in production and manufacturing) over the last year. It is also looking to hire two more people in sales and customer service. PublishNext enables authors or small publishing houses to print their tomes or create an eBook. The Seattle Book Company has distribution channels in new markets that Thomson-Shore desires. Thomson-Shore’s acquired the two entities so it can create a broader publishing and distribution platform that allows it to fill the gaps it has with its customers. "It was a really good fit from a market-fit and customer-service standpoint," Spall says. He adds that Thomson-Shore has been looking to make an acquisition like this for the last 18 months and passed on a few other opportunities because they didn't fit Thomson-Shore's goals of supplying high-quality products and services. Source: Kevin Spall, president of Thomson-Shore Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Partner Content

Community Development

50 years, 50 stories: Ann Arbor Historical Street ExhibitAnn Arbor Area Community Foundation

Ann Arbor Area Community FoundationWednesday, February 12, 2014

At 16 landmark sites in downtown Ann Arbor, 3-dimensional glass panels and pedestal images portray the city’s history as it relates to the present streetscape. The first of its kind, the Ann Arbor Historical Street Exhibit offers an educational walking tour through our city’s history. A $10,000 grant from the Ann Arbor Area Community Foundation helped launch the Exhibit with funding for the very first installation at Courthouse Square.

Feature Story

Dilip Nigam of Arborwind with a model of his wind turbine

Entrepreneurship

Ann Arbor Startups That Don't Start in Ann Arbor (But We Wish They Did)

Patrick DunnWednesday, February 12, 2014

Ann Arbor may be Michigan's hotbed for innovative startups but sometimes those innovations have trouble gaining a toe-hold in the local market. From healthcare apps to wind energy technology, Concentrate takes a look at a trio of technologies we'd like to see more of here.

Arts and Culture

The Huffington Post likes Ann Arbor food and drink

Wednesday, February 12, 2014

Source: Huffington Post

For everything from tomme dolce cheese to Belgian Elvis waffles to cosmopolitan night spots, this writer from the Huffington Post suggests staying, eating, and drinking a while in Ann Arbor. Excerpt: "The midwestern city of Ann Arbor has a lot going for it. It's now the fifth largest city in Michigan. It is home to the University of Michigan. And this vibrant town might surprise you with its dining scene. Perhaps it's all the international residents that call it home thanks to the University. Perhaps it's the fact that Michigan is one of the country's most agriculturally diverse states. Regardless, in the last five years this city has come into its own culinarily. Some even say, after Chicago, it's the dining capitol of the midwest." Get a taste here.

Arts and Culture

Ann Arbor is America's 12th most romantic city

Wednesday, February 12, 2014

Source: Seattle Post-Intelligencer

No Valentine's date yet? No worries. If you're looking for V-Day dinner out in Ann Arbor, you're in good company. Excerpt: "OpenTable calculated a city's romance level by ranking the percentage of restaurants in the area rated as "romantic," according to OpenTable diner reviews, the percentage of tables seated for two, and the percentage of people who dined out on Valentine's Day last year. More here.

Entrepreneurship

Old House Gardens grows national reputation for flowers

Wednesday, February 12, 2014

Source: Dallas Morning News

It's early yet for flowers, but the nation's gardeners are setting aside space to plant bulbs from Ann Arbor's Old House Gardens. Excerpt: "Although I have never met owner Scott Kunst, I consider him an old friend. His newsletters and catalog entries are delightfully conversational. Charlie the company cat lived a good life, and now there is a rescued black-and-white terrier named Toby installed in Charlie’s place... I have planted numerous pint-size hardy gladioli from the Ann Arbor, Mich., company’s American-grown inventory, with great success, in big pots and in the ground. Their colors and markings are remarkable, and they come back year after year." More here.

Diversity

U-M ranks 8th nationally for international student population

Wednesday, February 12, 2014

Source: CNN Money Magazine

With over 6,800 international students, U-M continues to attract students from around the globe. Excerpt: "Michigan's first two international students -- one from Mexico, one from Wales -- enrolled in 1847. Now the prestigious Big Ten university hosts the 8th-largest population in the country, 78% of whom come from Asia." More here.

Arts and Culture

Menna's Joint to add unique cuisine, 30 jobs to E. William St.

Natalie BurgWednesday, February 12, 2014

Source: Hank Andries, Menna's Joint

College towns across Michigan have been familiar with the "the Dub" sandwich since Menna's Joint opened in East Lansing in 2003. Now with six locations, the home of the grilled sub/burrito hybrid will soon open a seventh on E. William in Ann Arbor.

"The dub is a unique product and we deliver it to our customer in a variety of ways," says Hank Andries, Menna's Joint owner and president. "We're looking to complement the market in Ann Arbor. There is a lot of competition here, but we're hoping we fill a portion of the market."

Andries had actually considered the space prior to former tenant Topper's Pizza's occupancy, but the timing wasn't quite right. When the property broker reached out to Andries last time, however, everything fell into place.

"It was really just about waiting for the right opportunity," Andries says. "There is a lot of demand for space in Ann Arbor, and not a ton of supply. It was just a matter of timing for us."

The 1,500-square-foot space will undergo primarily cosmetic renovations as Menna's Joint prepares to open. The restaurant will have seating for 14 diners, as well as offering delivery and carry-out options. Andries intends to open Menna's this spring with a staff of about 30 employees.

Source: Hank Andries, Menna's Joint Writer: Natalie Burg

Entrepreneurship

Forthcoming Style Trader store expands on local resale franchise

Natalie BurgWednesday, February 12, 2014

Source: Jennifer Fields, Style Trader

The Ann Arbor-based children's resale franchise Children's Orchard now has locations in states all across the U.S. In addition to growing out, the business is now growing up, with a new store concept that will soon debut in Ann Arbor on W. Eisenhower.

"Style Trader is a new concept that we're looking to franchise," says General Manager Jennifer Fields. "It's nice to be bringing it home to Ann Arbor, in a sense, but also to be building on the concept of walking from Children's Orchard to Style Trader in one trip."

The Ann Arbor Style Trader, which will open in a 2,500-square-foot space in Colonnade Shopping Center, will be the second of its kind. The first opened in Livonia in July of 2012. According to Fields, however, this will be the first time the concept is tested in close proximity to Children's Orchard, which she suspects will be a winning combination.

Style Trader will focus on upscale clothing lines and styles that are no more than two years old, giving shopper access to the newer fashions and lower prices. While Fields says she anticipates moms and teens will enjoy the store, she's already been surprised by the success of the Livonia location's men's apparel.

"It's a fun environment that's not just for women," says Fields. "Nowhere else is doing resale for men. We couldn't believe how many men have been coming out in Livonia."

Renovations are already underway at the E. Eisenhower store. Fields plans to open Style Trader in early March and celebrate with a grand opening later in the spring. The store will employ five to six workers.

Source: Jennifer Fields, Style Trader Writer: Natalie Burg

Economic Development

First Martin plans for hotel, mixed-use on Huron and Ashley

Natalie BurgWednesday, February 12, 2014

Source: Mike Martin, First Martin

The intersection of W. Huron and N. Ashley has long been a sleepy one, but plans for a new mixed-used hotel development aim to change all that. Local developer First Martin has proposed a 85,000-square-foot, six-story hotel for the site that would include 110 rooms and about 6,000 square feet of first-floor commercial space for a retail or restaurant tenant.

"There aren't a ton of vacant or nearly vacant parcels downtown," says Mike Martin, vice president of First Martin. "This site has just two single story buildings, and is certainly not improved to its full potential."

While the project has the potential to bring temporary and permanent jobs to the site, as well as a new option for Ann Arbor visitors, Martin says one of the most visible impacts of the hotel would be creating new pedestrian activity on the relatively quiet intersection.

"We think there is a strong benefit for this type of use to activate the corner," he says. "A lot of the positive feedback we've heard is that this will help energize and add a pedestrian experience to a corner that is anything but that now."

First Martin will partner with a national chain to manage the all-suite style hotel, though the developer is not yet ready to release the name of their partner. The total amount of investment the project will bring to downtown is also yet to be determined. Martin is hoping the project will receive final approval in July and the approximately one-year long construction will begin in the fall.

Source: Mike Martin, First Martin Writer: Natalie Burg

Economic Development

Study shows alternative transportation important to downtown Ann Arbor

Natalie BurgWednesday, February 12, 2014

Source: Nancy Shore, Get Downtown

A recent survey conducted by Ann Arbor's getDowntown program found that more than 80 percent of respondents rate the availability of alternative transportation options as important to attracting customers, clients and employees to downtown. The survey included responses from 194 employers or decision makers and more than 600 downtown commuters.

"Employers recognize that to attract and retain the talent they need, we need to have a strong alternative transportation system," says getDowntown Program Director Nancy Shore. "Over time, this means that employers are more likely to purchase go!passes and find ways to accommodate their employee’s interest in walking and biking to work."

That's exactly what is beginning to happen. The Ann Arbor Area Transportation Authority and Downtown Development Authority have recently reported a "sharp increase" in the number of getDowntown's go!passes used by commuters to downtown. Twenty percent of decision makers also reported having employees who would not be able to get to work without their pass.

According to Shore, the good news only encourages getDowntown to continue to develop the go!pass program. They are now looking at the possibility of making the go!pass into a "smart card."

"This would make it even easier to board the bus and we might be able to find ways to connect it to other transportation options like the Bike House or even parking," Shore says. "I’d also like to see us develop a way for go!pass users to track their go!pass use online."

Additionally, Shore says the AATAs 5-year transit plan would be a huge benefit for the downtown commuters and employers, giving riders access to bus options later in the evening and on weekends.

Source: Nancy Shore, Get Downtown Writer: Natalie Burg

Economic Development

ArborMetrix nails down an extra $1.3M in VC funding

Wednesday, February 12, 2014

Source: Concentrate

ArborMetrix has expanded its Series B funding, adding $1.3 million in seed money from a couple of local venture capital firms. The Renaissance Venture Capital Fund and Detroit Innovate contributed to the Series B round, which was closed last year and led by RPM Ventures. "They basically topped off that Series B," says Brett Furst, CEO of ArborMetrix. "It brought the Series B to $8.3 million." The healthcare software startup moved into a new 9,000-square-foot office in downtown Ann Arbor, across the street from Google’s office, in November. "We take up most of the second floor," Furst says. ArborMetrix's software platform provides real-time clinical performance analytics tools for hospitals. The technology helps healthcare providers improve the quality, safety and cost-effectiveness of surgical and other specialty care. ArborMetrix currently employs 31 people, up from 16 about a year ago, who are working to boost sales and flesh out the software platform. "Our business plan shows we will be at 46 to 47 people by the end of the year," Furst says. The $8.3 million Series B will help fund the development of the second generation of ArborMetrix's software platform, along with its sales and marketing efforts. Furst expects the platform to be released later this year. The increased size of the Series B might mean the startup doesn’t have to raise a Series C round anytime soon, if ever. It also means it can focus on the continued growth of its venture and the local investors who supported it. "We want to hire and grow here," Furst says. Source: Brett Furst, CEO of ArborMetrix Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Economic Development

Ann Arbor's stkr.it adds 2 jobs after locking down Series A financing

Wednesday, February 12, 2014

Source: Concentrate

Ann Arbor-based stkr.it may be about to turn three years old, but most of its growth took place over the last year. The software startup helps people create and connect new messages to items like greeting cards and scrapbooks. The company has landed a number of partnerships with larger companies that will utilize its technology. Some of those partnerships include deals with Epson (a printer company) and Walsworth Publishing (a yearbook firm). "It has been gratifying to see all of these partnerships come about," says Mike Newman, president of stkr.it. "As these products hit the market we expect to see a dramatic level of growth in the next six months." The startup, which has dual offices in Ann Arbor and New York City, also locked down a Series A round of seed capital worth $600,000. That has allowed it make two of its part-time employees full-timers, rounding out its staff to five people. It is also looking at adding interns this year. Newman hopes to leverage a growing staff and revenues to flesh out its product in 2014. "Now that we have built up a user base we want to give them the best product we can," Newman says. Source: Mike Newman, president of stkr.it Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Economic Development

Michigan eLab's portfolio company looks to open Ann Arbor office

Wednesday, February 12, 2014

Source: Concentrate

Venture capital firm Michigan eLab made its first investment in a startup last year, and it’s now helping that company establish a presence in Ann Arbor. Fonemine is headquartered in Silicon Valley. The software startup scored an investment from Michigan eLab last fall and is working to open a sales office in Ann Arbor. "They have already hired one sales rep in Ann Arbor," says Doug Neal, co-founder of Michigan eLab. “They are partnering with (Detroit-based) VisionIT.” Michigan eLab launched about a year ago with the idea of funding startups in Michigan and bridging the gap between tech super hubs like Silicon Valley and the Great Lakes State. The firm has five partners, one administrative staffer and an intern. That team has raised almost half of its first fund, which has a goal of $40 million, and hopes to finish fundraising before the end of the year. Michigan eLab specializes in investing in early-stage tech startups. Its average investment is $1 million. Neal hopes to close on two more investments in the near term, including one with an Ann Arbor-based startup. "The pipeline is great," Neal says. "It's amazing how many opportunities we are seeing." Source: Doug Neal, co-founder of Michigan eLab Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Economic Development

Renaissance Venture Capital Fund begins investing in startups

Wednesday, February 12, 2014

Source: Concentrate

The Renaissance Venture Capital Fund made its name as a fund of funds in the venture capital world, making sizable investments in smaller venture capital firms either based in Michigan or establishing a presence in the Great Lakes State. Now the fund is starting to make headlines for investing directly into startups. The Renaissance Venture Capital Fund, which has its offices in both Detroit and Ann Arbor's downtowns, has made three direct investments in maturing startups that are backed by its own fund of funds. Those investments, all made in 2013, have a Michigan focus and more are in the pipeline. "Those funds (that the Renaissance Venture Capital Fund backs) tend to invest in early-stage companies," says Chris Rizik, CEO of the Renaissance Venture Capital Fund. "We have been monitoring them as they grow. Three of them reached a level of maturity that we could invest in them in 2013." That level was the $8.3 million Series B round invested in ArborMetrix late last year. It also includes venture capital rounds for Fidelis SeniorCare and Swift Biosciences. Those investments range between $500,000 and $750,000 per startup. "You will probably continue to see 1-2 direct investments per year for the foreseeable future," Rizik says. The Renaissance Venture Capital Fund has made 14 investments since its launch a few years ago, and is preparing to announce its 15th investment in a couple of weeks. It has committed $60 million of its initial $100 million fund. The fund is primarily capitalized by Fortune 1000 firms based in Michigan. 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.

Technology and Innovation

Kalyspo aims to commercialize technology by year-end

Wednesday, February 12, 2014

Source: Concentrate

Kalyspo, the bio-tech startup and University of Michigan spin out, is well on its way to commercializing its surgical instrument tracking technology. The Ann Arbor-based company’s technology helps prevent medical professionals from leaving foreign objects (think surgical tools like sponges) in patients during an operation. It accomplishes this by inserting a micro-machined tag that shows up clearly on x-rays and computer software. The technology is so advanced that it scores highly on both the sensitivity and specificity scales for finding these sorts of items. "This is one of the best (detection rates) I have ever seen," says Dr. Theodore Marentis, co-founder of Kalyspo. The 1-year-old startup employs a team of four employees, two interns and two independent contractors. It also won the Best of Boot Camp award at the Ann Arbor SPARK Entrepreneur Boot Camp. Dr. Marentis expects to commercialize this technology before the end of the year. He says the company is in discussion with a couple of hospitals which could become potential customers, and it is looking to create other types of revenue streams. "We're talking to a number of manufacturers about adding them to their product line," he says. Source: Dr. Theodore Marentis, co-founder of Kalyspo Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Arts and Culture

TLS Productions moves to new Ann Arbor location

Wednesday, February 12, 2014

Source: Concentrate

TLS Productions has moved from Brighton to Ann Arbor, bringing 14 more jobs closer to the Washtenaw County seat. The 60-year-old firm specializes in providing sales, rental, and production for the stage part of special events. For instance, it provides the lighting for everything from theater productions to automotive and trade shows. It employs 20 people in total, and is also looking to hire two more people. "Ann Arbor is a fantastic hiring base," says Carl Kedzierski, director of marketing and new business development for TLS Productions. "We're hoping to get somebody local." TLS Productions' new space in Ann Arbor is twice as big as its previous one in Brighton. It began the move in November and finished just before the end of last year. "It took quite a while," Kedzierski says. "It was quite a production for us." Source: Carl Kedzierski, director of marketing and new business development for TLS Productions Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Partner Content

Community Development

50 years, 50 stories: Ann Arbor Art CenterAnn Arbor Area Community Foundation

Ann Arbor Area Community FoundationWednesday, February 5, 2014

For over a century, the Ann Arbor Art Center has been sparking creativity for people of all ages and abilities. Studio classes and arts education, monthly exhibitions and a gallery shop that showcases the work of over 370 artists brought more than 40,000 visitors to the Center last year. Over the years, the Ann Arbor Area Community Foundation has provided more than $200,000 in grant support to help the Art Center grow.

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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.