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.

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.

Lakeside Software plans to invest $6.1 million to expand existing operations in Bloomfield Hills, as well as locate operations in Ann Arbor. The company expects the projects to create up to a total of 198 direct new jobs, 73 in Ann Arbor.

“The Ann Arbor region is rich in software development talent,” said Skip Simms, interim director and CEO of Ann Arbor SPARK.  “For a fast growing company like Lakeside Software, that immediate access to talent is an important consideration when choosing a location for expansion.  Being able to hire the right talent, quickly, will boost Lakeside Software’s expansion efforts.”

The MEGA award helped convince Lakeside Software to invest in Michigan over a competing site in California.

“Companies that received support from the Michigan Pre-Seed Capital Fund are currently employing 285 people throughout the state and have attracted outside investment.  Matching support from other funding sources totaled $16.4 million for these Michigan companies.

A combined $2.5 million in Michigan Pre-Seed Capital Fund investments in 2010 were awarded to:

• Advanced Battery Concepts
• Armune BioScience, Inc.
• Current Motor Company
• Downstream, LLC
• Intervention Insights
• Innovative Surgical Solutions
• InfoReady Corporation
• InPore Technologies
• Inventure Enterprises
• NextCAT, Inc.
• Tangent Medical Technologies

FamilyMint, based in Ann Arbor, is an online budgeting tool that helps parents guide spending and helps kids develop vital money management skills.  FamilyMint builds on the natural way children learn, through observing and doing; children take the reins, allocate savings, set goals, and make transactions.  Microloan funding awarded to FamilyMint was via the Ann Arbor/Ypsilanti SmartZone Local Development Financing Authority.

Fusion Coolant Systems, located in Ypsilanti, Mich., makes manufacturing processes faster, cheaper and cleaner through the use of advanced coolant and lubrication systems.  The company’s patented CHiP Lube system reduces costs while simultaneously improving worker health and safety and eliminating a toxic waste stream.  Fusion Coolant Systems received funding through the Eastern Washtenaw Microloan Fund.

Shepherd Intelligent Systems, LLC, based in Ann Arbor, provides fleet management services utilizing proprietary software tools.  Real-time vehicle information, including location and time of arrival prediction, is delivered directly to passengers and fleet managers via a computer or mobile phone.  These tools are used to improve fleet operational efficiency and empower transit riders to use their time more effectively. Microloan funding awarded to Shepherd Intelligent Systems was via the Ann Arbor/Ypsilanti SmartZone Local Development Financing Authority.

Since the Michigan Microloan Fund Program was established in July 2009, 45
companies have received over $1.8 million in subordinated loans.

Photo courtesy of San Fransisco Business Times

Noted venture capitalist Tom Baruch offers insight on where we’re  getting it right and what other states can learn from Michigan.

Since the Michigan Microloan Fund Program was established in July 2009, 42 companies have received over $1.6 million in subordinated loans.

Read more about the news here.

JAC Products is a leading tier 1 manufacturer of functional exterior automotive trim.  It is in the process of designing and developing 11 new roof rack/ trim systems for Toyota, Ford, Chrysler, Nissan, Subaru, Honda and Hyundai.  These products will launch from JAC Products’ Saline facility and be supported by its Shelby Township facility.

Read all about the news here.

Terra-Telesis is based in Okemos and received Microloan funding for the commercialization of emerging technology based on its unique low profile, vertical axis wind turbine.  This core technology is being used to create a new innovation for use in airport facilities that will significantly decrease and in some cases eliminate their dependence on power from fossil fuels.  Based in Ann Arbor, KnowledgeWatch will use the microloan funding to support commercialization of its automated online knowledge product.  KnowledgeWatch tracks and harvests multiple information sources to deliver one page, convenient, custom, intuitive, real-time news digests for knowledge workers and decision makers.  Also based in Ann Arbor, uwemp is an educational software company.  Microloan funding will support commercialization of uwemp’s Confidence-Based Learning, its co-developed and licensed patented web-based learning engine.  Confidence-Based Learning offers students engaging and relevant curricula and programs to equip them with the necessary skills to succeed in today’s competitive economy.