Possibilities for Change has received funding and support from Ann Arbor SPARK. After being introduced to SPARK through the U of M Office of Tech Transfer, they have received several Phase III business engagements from SPARK. This type of engagement typically offers consulting, connections to executive and technical talent, marketing and business development services, as well as entrepreneurial educational programs, to name a few. 

Last year, Possibilities for Change participated in one such education program, SPARK’s Entrepreneur Boot Camp. During this program they made a key connection with Ted Dacko, an Ann Arbor entrepreneur best known for rescuing a small, near-death company called Health Media and growing it into an enterprise so successful it was bought by Johnson & Johnson. Ted continues to work with them today.

The company is led by Dr. Jennifer Salerno, a nurse practitioner who directs the University of Michigan Regional Alliance for Healthy Schools’ School-Based Health Center Program. Her work with adolescents spans 15+ years and led to the creation of the survey, called Rapid Assessment for Adolescent Preventive Services (RAAPS). For more information about the assessment and Possibilities for Change, please see the announcement on their webpage.

The Michigan Pre-Seed Capital Fund companies have attracted more than $18 million in matching grant and equity funds.  In 2011, the Michigan Pre-Seed Capital Fund made 12 investments totaling $2.4 million, matched with more than $2 million in investments and grants.  Combined, the Michigan Pre-Seed Fund investments have helped to create more than 100 jobs in Michigan.

“We continue to receive applications from entrepreneurs around the state who are raising their first round of equity funding for their innovative, technology-based businesses,” said Skip Simms, Ann Arbor SPARK’s senior vice president and administrator of the Michigan Pre-Seed Capital Fund.  “This interest in funding is a clear sign that Michigan’s entrepreneurial spirit is strong.”

The Michigan Pre-Seed Capital Fund supports a start-up’s commercialization efforts.  Specific innovations include:

Detroit-based Clean Emission Fluids, Inc. (CEF) manufactures patent pending clean energy technologies (FAST™ stations) that provide onsite fuels and fluids for commercial truck fleets. CEF currently has six stations deployed with six additional stations planned for delivery by the end of 2011.

“The Michigan Pre-Seed Capital Fund’s support and investment in Clean Emission Fluids is an invaluable resource to help advance our leading-edge and patent-pending FAST Truck Stops in a Box that offer on-demand and on-site blending of any fuel in any proportion,” said Oliver F. Baer, CEF president and co-founder.  “FAST stations track the performance of every gallon, proportion and fuel type dispensed – including biofuels and emission fluids – to optimize vehicle operations and lower prices at the pump. Ann Arbor SPARK and the Michigan Pre-Seed Capital Fund has been vital to our developing success and establishing a solid framework on which to build – while helping boost Michigan’s economy in high return, job creating industries.”

Estrakon employees manufacturing their LED product

Estrakon, based in Ann Arbor, is a technology company that designs, develops and manufactures custom innovative, patented LED Edge-Lit signs and displays that provide a new medium for many broad applications such as premium brand advertising and attractive consumer displays that offer significant return on investment.

“The Michigan Pre-Seed Capital Fund was instrumental in allowing our organization to stay on top of the influx of new business that we were experiencing in mid 2011,” said Matt Shumate, Eskatron founder.  “We have added new equipment, more staff and increased our production space to accommodate the rapid growth.

Ix Innovations, based in Ann Arbor, enhances the usability of electrical test and measurement instrumentation through continual product innovation. Ix’s products are used throughout science and engineering, in diverse fields including low power electronics, energy harvesting, and in teaching labs worldwide.

“The Michigan Pre-Seed Capital Fund financing allows Ix Innovations to fill key management positions,” said Ian Dailey, president of Ix Innovations.  “This funding is critical to fueling research activities and enabling us to bring our next-generation low power measurement instruments to market.”

The Michigan Pre-Seed Capital Fund is an equity fund that invests in technology-based companies to support business formation and acceleration.  Ann Arbor SPARK serves as the Fund’s administrator.

To qualify for the Michigan Pre-Seed Capital Fund, start-up companies must be based on a technology in one of the state’s identified competitive technologies and have the sponsorship of a local SmartZone.  In addition to SmartZone sponsorship, companies must have received grant, angel or venture capital funding as a match with the Michigan Pre-Seed Capital Fund investment.

The Michigan Pre-Seed Capital Fund is an equity investment fund that receives the same returns as the third party investor.  The returns that the Michigan Pre-Seed Capital Fund receives from its investments will be redeployed by the Fund as first round capital to Michigan-based start-ups.

Funds for this initiative were provided by the 21st Century Jobs Fund, a Michigan Strategic Fund program designed to accelerate the growth and diversification of Michigan’s economy.  The Michigan Economic Development Corporation (“MEDC”), a public-private partnership between the state and local communities, provides administrative support for the 21st Century Jobs Fund.  The MEDC markets Michigan and provides the tools and environment to drive job creation and investment. For more information on the 21st Century Jobs Fund initiative, visit www.michiganadvantage.org.

“Since joining Ann Arbor SPARK, I’ve met with more than 80 business owners who are advancing our region’s economy; there’s an incredible depth of expertise in our region,” said Krutko.  “The podcast series is designed to not only highlight that expertise, but also make it available to others who could benefit from the wisdom those business leaders can share.”

The podcasts will feature successful local businesses, business owners and business leaders.  Throughout these conversations, the CEOs will share best practices, lessons learned and an “in the trenches” view of the region’s economy.

The first podcast, available now on Ann Arbor SPARK’s website, is an insightful conversation with Mary Sue Coleman, president of University of Michigan.  Coleman discusses the role of a research university in economic development and the impact of University of Michigan’s partnership with Ann Arbor SPARK on the region.

Subsequent Ann Arbor SPARK CEO Podcasts: Conversations on Economic Opportunity, will feature regional leaders, including Ken Fischer, president of the University Musical Society, Mike Miller, head of Google Ann Arbor, Jan Garfinkle, managing director of venture capital firm Arboretum Ventures, and many more.

Ann Arbor SPARK will release new podcasts on its website every two weeks through 2012.  A full schedule of podcasts is available on SPARK’s webpage.

Paul Krutko with Dr. Won Suk Cho, President, Hyundai America Technical Center, Inc. in front of the 2012 Car of the Year.

Hyundai is investing over $15 million in the expansion project, which it anticipates will create 50 new high tech automotive research and development jobs over the next three years.

“Ann Arbor SPARK’s business development team proactively works with businesses in the region to meet their needs as they grow and evolve,” said Paul Krutko, Ann Arbor SPARK president and CEO.  “Working with Hyundai, Ann Arbor SPARK was able to identify ways that the region and state could support the growth of the company’s North American technical center.

“Superior Township was a critical partner; the Township’s willingness to provide incentives for Hyundai’s expansion is crucial support for the new project,” Krutko added. “It’s this type of collaborative economic development between Ann Arbor SPARK, the state and regional communities that makes business choose to locate and grow here.

The Hyundai American Technical Center Inc. is a key design, technology, and engineering facility for Korean-based Hyundai-Kia Motors Group. This investment continues to demonstrate that the Ann Arbor region and southeast Michigan is a global hub for automotive research and development.

One of these firms who will be adding new talent is Arbor Networks, a Massachusetts based information technology security firm who operates its research and development office here in the City of Ann Arbor. The 78-person office will be undergoing a major investment after the company received a five-year tax abatement from the City of Ann Arbor in October. Our team walked the firm through the tax abatement process and helped them complete their application. This was crucial considering that that staff members responsible for the abatement were located in Massachusetts. The firm committed to making $883,527 in real property improvements and $7.8 million in new personal property and equipment investment. As part of the agreement, Arbor Networks committed to adding no less than 20 jobs by December 31, 2013.

DAPCO Industries is a family owned and operated company that has been in business in Dexter, Michigan since 1943. Today, DAPCO has become a leader in the small engine component industry. Our team completed the tax abatement application alongside DAPCO staff and prepared their team for the public hearing process. Our support throughout the process allowed DAPCO staff to continue to focus on their day-to-day responsibilities while we put their data into a formal application. The company was unanimously approved a 12-year tax abatement by the Dexter Village Council on November 28^th. The abatement was for $1.286 million of investment in personal property and about $879,000 in real property improvements in the village. The company plans to add 8,500 square feet in factory space and ten jobs.

QED Environmental Systems, a supplier of environmental remediation products, moved into a larger building in the Village of Dexter’s industrial park earlier this year. Our team guided them through the tax abatement process and helped them complete their application. Our team’s support and recommendations were extremely useful so that QED staff could focus on maintaining business throughout their move. The company was granted a ten-year tax abatement in November by the Dexter Village Council. The firm also has offices in Pennsylvania and California but chose to make their investment of $104,498 in new personal property and $758,043 in machinery and equipment here in Michigan. The company, which employs 49 employees, is expected to add five new jobs over the next two years, according to the tax abatement application.

“MEDC support for Ann Arbor SPARK’s East incubator extends and enhances opportunities for start-ups throughout the region,” said Paul Krutko, president and CEO, Ann Arbor SPARK. “Business incubators play an important role in our economy: The start-ups that receive assistance through SPARK East attract investment, retain talent and create jobs here in the region. Ann Arbor SPARK business incubators provide the critical support that start-ups need to become drivers of economic success.”

Ann Arbor SPARK was awarded $500,000 for the SPARK East business incubator, located in Ypsilanti, Mich. The funding will enable Ann Arbor SPARK to offer additional business incubator scholarships and business acceleration programming. The funding will also support new services developed specifically for students, including entrepreneur education.

To date, 42 start-ups have been assisted through programs and support offered at the SPARK East business incubator.

Below is a story submitted to us from Jimmy Hurley, a recent graduate who endured the job search and emerged with a cool new position at a local Ann Arbor company: CreateMyTee.com. Jimmy used SPARK’s job portal to find his new job, so if you are looking for an exciting new opportunity be sure to check it out!

Jimmy’s job search success story:

I graduated from Western Michigan University in December ’10 with a bachelor’s in Business Marketing. I had worked part-time at a home care nursing agency upon moving back home to Ann Arbor for about the first 7 months. Throughout this entire span of time, I was aggressively applying to jobs and creating an online presence in every online job portal under the sun- trying to gain an entry level position in anything related to Marketing.

A couple months after settling back into my parents house, my father encouraged me to create a profile on Ann Arbor SPARK’s website and join the ‘jobs posting’ mailing list, as he had been on the list himself for about a year at the time. Long story short, I quickly realized that after I had received my first few ”weekly talent search’ emails from SPARK that I need look no further to find a job- and I did.

The thing I love about SPARK’s ‘talent search’ job postings is that all of the posts are for REAL jobs, posted by REAL people… I can’t tell you how frustrated I became with the generic, automated, scammish, and illegitimate SPAM that so many of the online job portals refute as ‘job postings’- most of them are a waste of everybody’s time.

Some time around mid July, I had responded to a new posting that I saw on the SPARK ‘weekly talent search’ email for an opening position with a new startup company called CreateMyTee.com. The position was titled ‘Shirt Specialist’, and I thought it sounded like an exciting and fun opportunity to begin my professional career. I emailed Josh Fales (president, founder, and CEO of CreateMyTee.com) in regard to the posting, and didn’t hear back for a few weeks. To be honest, I almost forgot I even applied to that position after a few weeks had passed- but sure enough, I got a call from Josh in late July. After many hours of questions, answers, restless nights, and uncertainty, I finally got a call in early August from Josh and Steve saying that I had been selected to fulfill the role of Shirt Specialist at CreateMyTee.com!

I can’t thank Ann Arbor SPARK enough for helping me get to where I am today, and starting me off on this new and exciting path at a rapidly expanding startup company. The positive energy and optimism for the future is impossible to ignore from inside our tiny little office across the street from the Ann Arbor Airport, and I believe it’s not too much of a stretch to say that just a couple years from now, it’ll be hard to find somebody who hasn’t heard of us. 

Thank you Ann Arbor SPARK!

– Jimmy Hurley
 Shirt Specialist CreateMyTee.com

Got your own SPARK Job Portal success story? Please share it with us! Contact  Andria@AnnArborUSA.org

DeNovo Sciences accepts their award at the Michigan Life Sciences Innovation Center.

“DeNovo Sciences and Fusion Coolant Systems highlight how having a strong entrepreneurial support system can help businesses successfully launch and advance towards attracting capital and commercializing products,” said Paul Krutko, president and CEO, Ann Arbor SPARK.  “Both companies are currently being incubated at Ann Arbor SPARK.  DeNovo Sciences is a tenant at the Michigan Life Science and Innovation Center and Fusion Coolant Systems is a tenant at Ann Arbor SPARK’s SPARK East incubator.  Both companies have also benefitted from Ann Arbor SPARK’s entrepreneurial services, including business planning.”

Denovo Sciences and Fusion Coolant Systems plan to use the Accelerate Michigan Innovation Competition prize monies to further their business development goals, including attracting additional capital investments and ramping up commercialization efforts.

“The $500,000 Accelerate Michigan Innovation Competition prize definitely helps us stay on track with our goals,” said Kalyan Handique, CEO, DeNovo Sciences.  “We will use the funding to test our prototype so that we are ready for big fundraising in the coming year; our goal is to raise $6 million in venture capital.”

DeNovo Sciences is developing an instrument system and reagent kit that allows for the separation, detection and retrieval of circulating tumor cells from peripheral whole blood creating an alternative to traditionally painful and invasive biopsies. Fusion Coolant Systems provides an advanced coolant and lubrication system for use in manufacturing.

See how Fusion Coolant Systems plans on spending their award money:

Lakeside Software, a leader in business intelligence solutions for IT professionals, today announced the acquisition and opening of a new R&D facility in Ann Arbor, Michigan. This facility will be primarily utilized for product design and development, and will accelerate company growth by making it easier to hire top technical talent from the Ann Arbor metropolitan area. The new facility is fully operational and is located at 112 South Main Street in Ann Arbor; Lakeside’s corporate headquarters will remain in Bloomfield Hills, Michigan.

The company had announced in March 2011 plans to expand in the Ann Arbor area, and had received a Michigan Economic Growth Authority (MEGA) tax credit to help encourage the expansion.

Founded in 1997, Lakeside Software has grown organically without outside investment. The company’s products employ differentiated technology in the form of a patent-protected distributed database architecture for data collection and aggregation that delivers unprecedented depth of information and insight into user experience. Lakeside has also successfully established key partnerships with global systems integrators and technology firms that use the company’s technology to implement desktop transformation and virtualization services. The company was recently designated Technology Company of the Year by Automation Alley, Michigan’s largest technology business association.

“We’re excited to be expanding in Michigan and in the Ann Arbor area. Michigan is technology-friendly and offers a wealth of technology talent that we will employ to drive our continued growth.” Michael Schumacher, founder & CEO, Lakeside Software.

“Ann Arbor SPARK worked with Lakeside Software early on to support the company’s expansion efforts to our region, including working with MEDC and other officials to secure the incentives that emerging companies need to grow. The tech talent here will ensure that Lakeside Software will hit the ground running, quickly ramping up its operations and getting down to business. Long term, the depth of tech talent in Ann Arbor will be a strategic asset for Lakeside Software.” Paul Krutko, President and CEO, Ann Arbor SPARK.