The University of Michigan spin-out is developing an ocular diagnostic technology for metabolomic diseases. In layman's terms, that technology allows doctors to diagnose patients with diseases like diabetes by scanning their eyes. The process has the potential to be more accurate and catch a diabetes diagnosis much earlier than traditional methods.

The three-year-old start-up's eight-person team has been in clinical trials since 2008 and expects to continue testing and developing the third generation of its product next year. That will probably mean a few more hires for the fledgling firm.

"With our product team in place we will do more of our development in Michigan," says Kurt Riegger, COO of OcuSciences.

OcuSciences recently won the Life Sciences Award at the Accelerate Michigan Innovation Competition in Ypsilanti. The company took home a $25,000 check and some credibility with both local and out-of-state investors. "It's a good validation," Riegger says.

Source: Kurt Riegger, COO of OcuSciences
Writer: Jon Zemke

Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.
News from Concentrate

Andrew Chu, addressing the U-M Alumni Luncheon

For the past three days Boston has turned maize and blue.  We blanketed the area with Michigan positive message messages and it sure paid off.  Recent articles in Xconomy and positive pieces by a renown technology blogger have taken our message viral.

At our site selection consultant luncheon, one native Bostonian who had never been to Michigan before said, “What the deal with all this positive publicity about Michigan?  I actually think I might want to make a trip to the state just to see what all the buzz is about.”   This is a pretty bold statement from a Bostonian which is home to a business incubator that house more than 300 companies and actually turns a profit!   We have much to learn from the Cambridge Innovation Center and their seven floors of life sciences incubation.

Our MichAGAIN alumni reception was the swan song of our Boston trip and it couldn’t have been more successful.  We welcomed nearly 100 Boston residents who were very excited about learning about the new successful developments in the state.  I even had a chance to chat with two Harvard and U-M grads, in the process of locating back to our region and looking for employment.

So it is time to leave the majestic waterfront behind just in time for the Red Sox home opener.   Perhaps they make that Sox B hat in maize and blue too…

MLSIC’s goal is to assist early-stage life science based companies while they expand their business within Southeast Michigan. At the life science incubator, companies like Milad have business development resources and office space available. MLSIC offers flexible leases for offices that include accommodations like equipment, internet connection, conference rooms, and cleaning services, as well as access to laboratories with the most modern of technological advances. Entrepreneurial support includes education programs, networking opportunities, financial advice, and referrals to service providers. By combining these features, companies like Milad have tremendous business growth opportunities.

For more information:

Contact Frederick Earl at MLSIC: 734.233.3099 or Fred@AnnArborUSA.org

Contact Milad Pharmaceutical Consulting, LLC online or call 734.664.0394

There was not a slow down in deal flow for the Michigan Pre-Seed Capital Fund during the summer and it continues through the fall.

Since our last post we have made investments in these companies…

Phrixus Pharmaceuticals – Ann Arbor
Avidimer Therapeutics – Ann Arbor
Compendia Bioscience – Ann Arbor
Accord Biomaterial – Ann Arbor
Hybra-Drive Systems – Deerfield
RazorThreat – Royal Oak
Functional Brands – Detroit
Saleztrack – Troy
VENOMIX – Kalamazoo
XG Sciences – East Lansing

The total amount invested in these companies by the fund was more than $2 million.  Their cash matches exceeded $3.8 million.

We are very pleased with the industry and geographic diversity of these investments.

Several more applications are being reviewed and others are in the near term pipeline.  We anticipate having made at least 20 investments before the first anniversary of the fund.

Skip Simms, Fund Administrator

In case you missed it, below is a link to the mlive.com story dated Feb. 1 about the BioEnterprise report that said 8 deals in Ann Arbor/Detroit were done last year with a total investment exceeding $98mm, ranking 3rd among 17 Midwestern markets. From there you should be able to link back to the BioEnterprise site and read several articles about how strong the Midwest is in medical devices particularly, and how we have the respect of VCs all around the country for having great technology and potential returns on investment.

I opined in a Crain’s Detroit interview that is up today on their website, that deals are being done in Michigan because we do have opportunities worth investing in.  I’ve added that link below too.

There’s plenty to be hopeful about around here.

VC Health Care Investing in Midwest
BioEnterprise report on VC invesment in the Midwest in ’06

Simms interview on Private Equity (no longer available)
Crain’s Detroit interview with SPARK executive Skip Simms regarding Private Equity in Michigan