Sunday, September 05, 2010
The future of the automobile got a little boost earlier this week when Detroit Electric received financing from the Michigan Microloan Fund Program.The
Brighton-based start-up joined Ypsilanti's Ergun Technology and Ann
Arbor-based Local Orbit in splitting $140,000 in microloans. The
microloans help new economy-based start-ups push forward product
development and commercialization.Detroit Electric
is the oldest electric car brand in the U.S., getting its start in the
early 20th Century. It went dormant until a few years ago, when it was
revived by a Chinese firm to make electric cars. This microloan will
help Detroit Electric's efforts to establish and grow its current
two-man office into a world headquarters and technical center that
employs hundreds of people.
"We're trying to get started here in the U.S.," says Don Graunstadt, CEO
of Detroit Electric's North American operations. "Cash is really
important, but more important is the endorsement. The government did
three months worth of due diligence on us."
Own is the principal product for Ergun Technology.
Own connects cash registers to the Internet, providing store owners
real-time remote access to their transactions. The 4-person firm plans
to use its loans to complete Beta testing of its product and begin
marketing it to coffee shops across the state.Local Orbit
is creating a web platform that simplifies the process of buying food
directly from local farmers for restaurants, institutions, and
consumers.The state-created Michigan Microloan Fund Program
provides seed capital to growing new economy start-ups. The $1.4 million
program, which is run by Ann Arbor SPARK, became instantly popular because of the lack of financing available in the wake of the financial crisis.Source: Ann Arbor SPARK and Don Graunstadt, CEO of Detroit Electric's North American OperationsWriter: Jon Zemkeread on…