Kurek points out that the recent reauthorization of the federal Small Business Innovation Research grants brought stability back to the bio-tech space. Add to that the state of Michigan recently reauthorizing spending up to $500,000 annually over three years for bio-tech business consulting, and the woman behind the Ann Arbor-based consultancy is feeling optimistic.

"All of my clients breathed a sigh of relief," Kurek says. "It allows us to really ramp up what we were doing. This is a really good time after a lot of upheaval."

Biotechnology Business Consultants specializes in helping bio-tech start-ups develop their technologies and grow their business, a process that often takes several years of work and millions of dollars in investment. The company recently added an independent contractor to its staff of five employees. Kurek plans to create two more full-time jobs in the next year as her 22-year-old firm works to build up its new clients.

"My goal is not to be a high-growth business but to be a high-impact business," Kurek says. "I want to focus on our new clients we just landed."

Source: Lisa Kurek, managing partner of Biotechnology Business Consultants
Writer: Jon Zemke

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

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.

“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.

Paul Krutko speaking at the VC breakfast.

Our team is up bright and early this Tuesday morning to spread the word of cool technologies, high returns, and the growing venture capital scene in Michigan to a group of around 30 Silicon Valley VC’s and high net worth individuals. The group was very interested in hearing more about our upcoming CEO Podcast between Paul Krutko, President and CEO of Ann Arbor SPARK,  and Jan Garfinkle, Founder and Managing Director of Arboretum Ventures. Also, I now have a better understanding of why CA needs a carpool lane and treasure my 20 minute commute. Next stop, the Hacker Dojo in Mountain View to see what unstructured collaborative learning is all about. After checking-in and reading their “Warning” sign all we could find was a sea of Wolverines and Spartans! Britany Affolter-Caine, Talent Enhancement Director, and I learned a great deal from over a dozen “geeks” (remember “geek” isn’t what you remember from high school, today it is a huge compliment) all having roots back to Pure Michigan. One team worked with Ann Arbor SPARK years ago, sold their first company and are onto their next. They were thrilled to hear the great things that are brewing for start-ups in Ann Arbor. Most also knew of our “Dojo” environments, Tech Brewery and Menlo Innovations.

The "warning" sign at Hacker Dojo

After being educated at the dojo, it was back to San Jose for our MichAGAIN event! After passing a Google self-driving car I now know my next new car purchase, how efficient! The Michigan Economic Development Corporation’s Talent Enhancement team and Ann Arbor SPARK hosted around 50 Michiganders for a night of networking, career hunting and reminiscing of “back home”. Energy was high and attendees were thrilled to network with recruiters and CEO’s from Intrinsic Medical Imaging, Systems In Motion, Terumo Cardiovascular System and Terumo Heart. With over a handful of individuals highly interested in making the move back to MichAGAIN, our plates will be full over the coming months and not just with turkey and dressing! Our team is dedicated to help those looking to make the transition back to Pure Michigan seamless. For more information visit www.MichAGAIN.org.

The downtown-based incubator recently moved to a bigger space (50 percent larger) on West Liberty Street in the basement of the Liberty Square Building next to the Michigan Theatre. About a dozen early-stage start-ups use the space for a six-month periods, starting in November and May.

This year the organizers behind TechArb, the Zell-Lurie Institute for Entrepreneurial Studies, went for a broad mix of students, focuses and types of start-ups. Those include everything from undergraduates to graduate students with a variety of backgrounds pursuing everything from mobile apps to creating a database for facility managers.

"We want them to learn from each other, not just use the space," says Paul Kirsch, associate director at the Zell-Lurie Institute for Entrepreneurial Studies. "The more diversity in the space, the more cross pollination."

This year's batch includes two holdovers from the last six-month session. The others will be new students with new ideas.

Source: Paul Kirsch, associate director at the Zell-Lurie Institute for Entrepreneurial Studies
Writer: Jon Zemke

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

The Ann Arbor-based firm finished testing its pilot electric scooters earlier this year and is now in the final stages of developing its Beta bike. The three-year-old start-up hopes to begin mass producing the scooters later this year and with an eye for a market break-out in 2012. The company also plans to announce some key partnerships that will boost sales and production in the coming weeks.

"We have made major strides this year," says Lauren Flanagan, executive chair of Current Motor Co.

Current Motor Co., started by local environmentalists and tinkerers John Harding and Erik Kauppi, received a fresh round of funding earlier this year from BELLE Capital. It expects to finish raising that round of seed capital later this year and use it to enable mass production. Flanagan expects her company to flirt with profitability within the 12 months.

"We expect rapid growth next year," Flanagan says.

Source: Lauren Flanagan, executive chair of Current Motor Co.
Writer: Jon Zemke

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

The Ann Arbor-based firm finished testing its pilot electric scooters earlier this year and is now in the final stages of developing its Beta bike. The three-year-old start-up hopes to begin mass producing the scooters later this year and with an eye for a market break-out in 2012. The company also plans to announce some key partnerships that will boost sales and production in the coming weeks.

"We have made major strides this year," says Lauren Flanagan, executive chair of Current Motor Co.

Current Motor Co., started by local environmentalists and tinkerers John Harding and Erik Kauppi, received a fresh round of funding earlier this year from BELLE Capital. It expects to finish raising that round of seed capital later this year and use it to enable mass production. Flanagan expects her company to flirt with profitability within the 12 months.

"We expect rapid growth next year," Flanagan says.

Source: Lauren Flanagan, executive chair of Current Motor Co.
Writer: Jon Zemke

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

The Dare to Dream program, organized by U-M's Zell-Lurie Institute for Entrepreneurial Studies, distributes up to $100,000 each academic year to U-M students. The grants range in size from $500 to $10,000 and help students fund things like feasibility studies, business plan development and elevator pitch practice.

"We think that the student start-up ideas are great vehicles to those entrepreneurial skills," says Paul Kirsch, associate director of the Zell-Lurie Institute and leader of the Dare to Dream program.

This fall, 22 U-M student-led start-ups split $34,500 in seed capital. One of the big winners includes $10,000 to SecureHealing, which specializes in privacy monitoring and reporting across healthcare software systems. Another grant winner is Smart Peru, an all-inclusive Peruvian website, that won a $500 Venture Shaping Grant. Some winners also received invitations to Ann Arbor SPARK's Entrepreneur Boot Camp and $5,000 worth of business consulting.

The Zell-Lurie Institute has offered the Dare to Dream grants since 2002. Many of the start-ups never took off, but some have turned into the darlings of Michigan's entrepreneurial class lately, such as Are You a Human and Own Point of Sale, both of which recently closed more than $1 million in venture backing each.

Source: Paul Kirsch, associate director of the University of Michigan's Zell-Lurie Institute for Entrepreneurial Studies
Writer: Jon Zemke

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

The Dare to Dream program, organized by U-M's Zell-Lurie Institute for Entrepreneurial Studies, distributes up to $100,000 each academic year to U-M students. The grants range in size from $500 to $10,000 and help students fund things like feasibility studies, business plan development and elevator pitch practice.

"We think that the student start-up ideas are great vehicles to those entrepreneurial skills," says Paul Kirsch, associate director of the Zell-Lurie Institute and leader of the Dare to Dream program.

This fall, 22 U-M student-led start-ups split $34,500 in seed capital. One of the big winners includes $10,000 to SecureHealing, which specializes in privacy monitoring and reporting across healthcare software systems. Another grant winner is Smart Peru, an all-inclusive Peruvian website, that won a $500 Venture Shaping Grant. Some winners also received invitations to Ann Arbor SPARK's Entrepreneur Boot Camp and $5,000 worth of business consulting.

The Zell-Lurie Institute has offered the Dare to Dream grants since 2002. Many of the start-ups never took off, but some have turned into the darlings of Michigan's entrepreneurial class lately, such as Are You a Human and Own Point of Sale, both of which recently closed more than $1 million in venture backing each.

Source: Paul Kirsch, associate director of the University of Michigan's Zell-Lurie Institute for Entrepreneurial Studies
Writer: Jon Zemke

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

The university recorded 101 license and options for its technology in the fiscal year ending on June 30. That's more than any other previous year. U-M researchers also recorded 322 inventions and filed for 122 patents. U-M also helped launch 11 start-ups that utilize technology originating in university labs.

"Doing more is good," says Ken Nisbet, executive director of University of Michigan Office of Tech Transfer. "But doing more high-quality agreements is better. We strive for that."

U-M Tech Transfer is also focusing on helping guide these start-ups from initiation to acquisition. A key part of that transition is its new Venture Accelerator at the North Campus Research Complex. The Venture Accelerator provides lab and office space, along with other business development resources for U-M start-ups. So far 10 start-ups are occupying the space, including some venture-backed firms.

"We're doing things to complete the opportunity, to package it and make it attractive for people to invest their time and money," Nisbet says.

U-M recorded $16 million in tech transfer revenues, which include royalties and equity returns. These revenues are reinvested in research and education. U-M's total research spending hit $1.24 billion last year.

"Our pipeline is very strong," Nisbet says. "We have great people and great research."

Source: Ken Nisbet, executive director, University of Michigan Office of Tech Transfer
Writer: Jon Zemke

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