News

Internet start-up Seelio has landed an investment from the Michigan Pre-Seed Capital Fund, which is part of a larger angel round worth slightly more than $600,000.

The investment has allowed the downtown Ann Arbor-based company to expand its staff to 10 employees and two interns. It is now looking for strategic investors and has moved into the offices of Menlo Innovations, which is helping mentor the 1-year-old firm.

"We're very proud to be based out of Ann Arbor," says Moses Lee, co-founder & CEO of Seelio. "We have a very good team that is committed to the state of Michigan."

Seelio is developing a software platform that allows college students to showcase their portfolio of work. "We're able to document the entire story of a project and who you worked with," Lee says.

The platform is currently being used in 800 college campus across the U.S., including the University of Texas, UCLA, MIT, Albion College, Eastern Michigan University, Wayne State University and the University of Michigan, among many others. Seelio plans to expand its geographic reach around the world with universities in Europe the next in line.

"Some major universities are interested in this platform," Lee says.

Source: Moses Lee, co-founder & CEO of Seelio
Writer: Jon Zemke

Birdhouse is wrapping up its first year of providing a mobile/web solution for parents and caregivers of autistic children.

The West Bloomfield-based start-up is creating software that tracks the behavior of autistic children and helps the loved ones of autistic children manage the disorder. It is also looking to find news ways to leverage the data it's collecting to help further the fight against autism.

"We'd like to be working with organizations from around the country to use the data Birdhouse is collecting to better understand autism, and to give us more answers and better understanding of the disorder," says Ben Chutz, founder of Birdhouse.

Chutz was inspired to start the company las year because his girlfriend has a daughter with autism, exposing him to the trials and tribulations that come with it. Chutz is now hoping the data gathered from his technology, still in private Beta until this summer, will be able to help shed some light on whether nature (barometric pressure or tides) factors into the impact of autism.

"We're looking to crowd source the idea of collecting info on kids with autism," Chutz says.

Birdhouse currently has a team of three people and is looking to add two software developers to help bring its technology to market.

Source: Ben Chutz, founder of Birdhouse
Writer: Jon Zemke

Esperion Therapeutics is bringing on some familiar faces to its staff, including a new CEO that has an extensive history with the pharmaceutical firm.

Tim Mayleben replaces Esperion Therapeutics' founder, Roger Newton, as president and CEO while Newton becomes the firm's executive chairman and chief scientific officer. Mayleben previously served as president and CEO of Ann Arbor-based Aastrom Biosciences before stepping down last summer.

Mayleben also once served as Esperion Therapeutics' COO and CFO a decade ago, helping it raise more than $200 million in seed capital and negotiating its sale to Pfizer in 2004 for $1.3 billion. Newton bought back the company four years ago and relaunched it.

"I am a business person by training. Roger is a scientist and a company builder," Mayleben says. "We complement each other really well."

Esperion Therapeutic's most advanced product candidate, ETC-1002, is in Phase 2 clinical trials for patients with hypercholesterolemia and other cardiometabolic risk factors. ETC-1002 is a small-molecule metabolic regulator of imbalances in lipid and carbohydrate metabolism and inflammation. It is being developed to address the underlying causes of metabolic diseases and reduce multiple risk factors associated with them. In preclinical and clinical studies to date, treatment with ETC-1002 has been shown to be safe and well-tolerated while producing statin-like reductions in LDL-C and inflammatory markers.

Esperion Therapeutics plans to wrap up it's Phase 2 clinical trials later this year and begin Phase 2 D clinical trials in 2014. Phase 2 D clinical trials are one of the final steps before FDA approval and often take two years or more to complete. The company has historically called Ann Arbor home before moving to the Michigal Life Sciences Innovation Center, managed by Ann Arbor SPARK, in Plymouth. The company now employs 11 people after hiring three recently.

Source: Tim Mayleben, president & CEO of Esperion Therapeutics and Roger Newton, founder of Esperion Therapeutics
Writer: Jon Zemke

Nutriinfo, a healthy-living technology start-up, has moved from Novi to Ann Arbor to help further the company's growth.

"We thought it was the best place to be to have access to more resources," says Mia Jang, CEO of Nutriinfo. "We thought it was a great place to find people when you need to hire."

Jang, who has a PhD in nutrition, started Nutriinfo in 2007 to provide a better way for people to become more healthy. She leverages online resources and other IT technology to create simple paths for the employees of companies and customers of health insurers to lose weight and lead healthier lives.

Nutriinfo now employs five people and expects to to hire a few more people before the end of winter. The move to Ann Arbor in July was made to help make this sort of staff expansion easier because of the close proximity to the University of Michigan.

The firm plans to launching a weight-loss challenge for corporations and communities in Michigan in March. The idea is to raise awareness about obesity and align with the current health and wellness initiatives underway with the state of Michigan. For information, click here.

Source: Mia Jang, CEO of Nutriinfo
Writer: Jon Zemke

Start-ups from Ann Arbor and those with close ties to the college town did quite well at this year's Accelerate Michigan Innovation Competition.

The top three finishers in this year's business plan competition all hailed from cities outside of Washtenaw County but they all have roots in the Ann Arbor area. Algal Scientific and nanoMAG (the first and second place finishers) both got their start in Ann Arbor before moving to Plymouth and Livonia, respectively. They both still work extensively with Ann Arbor SPARK. East Lansing-based InPore Technologies (the third place finisher) is headed up by Gerry Roston, a serial entrepreneur that calls Saline home.

Steve LeBeau, president of nanoMAG, praised the folks at Ann Arbor SPARK and at Accelerate Michigan with preparing his start bio-tech firm to do so well at the competition and be ready to raise a significant amount of revenue. He expects his start-up will be able to leverage its $100,000 cash prize from Accelerate Michigan into a seven-figure angel round.

"In the middle of this (competition) you're a venture capital fund saying, 'Send me a packet about what's going on,'" LeBeau says. "And you have a 12-page packet (prepared and peer-reviewed as part of the competition) to send them."

Other top placers at the Accelerate Michigan calling Washtenaw County home include:

- Eco-Fueling, the Saline-based business won the advanced transportation prize worth $25,000 for its fuel-efficiency technology built for diesel engines.
- Ornicept, the Ann Arbor-based start-up won the alternative energy prize worth $25,000 for its technology that monitors bird activity so wind turbine developers can make informed decisions.
- Protean Payment, the Tech Brewery-based company won the products and services award worth $25,000 for its software that can combine every creditcard in a consumer's wallet into one card.

Source: Accelerate Michigan Innovation Competition and Steve LeBeau, president of nanoMAG
Writer: Jon Zemke

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

Ultra Electronics and the University of Michigan are two important aspects of Bill King's life, which is why the veteran executive decided to take the helm at the Ultra Electronics AMI, formerly Adaptive Materials.

King has spent 31 years working for Ultra Electronics and graduated from the University of Michigan in 1979. He is now the president of Ultra Electronics AMI, which is now a division of United Kingdom-based Ultra Electronics after it acquired Adaptive Materials.

"I am from Michigan," King says. "I want to retire in Michigan. I am 55 so I have another 10-12 years that I want to work. If I can give back to Ultra Electronics, which has been very good to me, and the University of Michigan, which also means a lot to me, that's what gets me excited."

Ultra Electronics AMI designs, tests and manufactures the future of portable power: solid oxide fuel cell technology. It's products are used by everything from military personnel to outdoor enthusiasts. The technology was spun out of Adaptive Materials, which was acquired by Ultra Electronics in early 2011. Ultra Electronics AMI currently employs 63 people and the occasional summer intern after hiring 10 people over the last year.

Source: Bill King, president of Ultra Electronics AMI
Writer: Jon Zemke

123.net is adding to both its staff and its business capacity.

The Southfield-based Internet firm has hired three people in 2012, expanding its office to 25 employees. It has also added 11,500 square feet of data storage space to its infrastructure with plans to expand much more rapidly in 2013.

"We have experienced quite a bit of growth," says Dave Curran, channel sales manager of 123.net. "Over the last two years we have experienced 66 percent growth. We will probably add 5-10 new employees over the next year."

123.net added 8,000 square feet of data storage space to its Southfield operations and another 3,500 square feet to its Grand Rapids-based facility. It plans to add yet another 100,000 square feet of data storage space in Southfield in 2013 for a total investment of $15 million. The addition would take place at 20,000 square feet at a time.

"That would more than double our current capacity," Curran says.

Source: Dave Curran, channel sales manager of 123.net
Writer: Jon Zemke

More tech and employment opportunities are coming to Michigan First Credit Union this year. The Lathrup Village-based financial institution has hired 10 people and is adding more mobile banking options for its growing member base.

The 86-year-old credit union has expanded its staff by 10 people over the last year, rounding out to 229 people and a few interns. Its newest hires include a digital marketing manager and social media professional.

Michigan First Credit Union has also expanded its mobile banking options. The credit union began offering banking options for smartphones in 2010 and has recently added a new feature that allows mobile deposit for iPhone, iPad and Android mobile devices. Users can take a photo of a check with their device and deposit it directly into their checking or savings account.

"A lot of people have been doing their banking through smart phones and other mobile devices so we thought it was very important to be in that space," says Linda Douglas, vice president of marketing for Michigan First Credit Union. She adds that these sort of options are popular with young, tech-savvy members the credit union is trying to attract.

Michigan First Credit Union adds about 1,000 to 1,500 new members each month in recent years. It now has a membership of 87,000 individuals and businesses in Metro Detroit's tri-county area, along with $630 million in assets.

Source: Linda Douglas, vice president of marketing for Michigan First Credit Union
Writer: Jon Zemke

ForeSee Results has experienced double-digit revenue growth (25 percent over the last year), which has allowed the Ann Arbor-based company to hire dozens of new employees in 2012.

The 11-year-old company has added 40 people over the last year, expanding its staff to 275 employees. It currently has 25 job openings right now and expects to keep adding to its staff at that pace in 2013.

"We should be to 300 in the next 30-45 days," says Larry Freed, CEO of ForeSee Results. "There is a lot of hiring going on right now."

ForeSee Results provides user-satisfaction surveys, primarily through websites. It leverages the American Customer Satisfaction Index, developed at the University of Michigan, to measure the results. This year it has expanded the reach of its surveys, making headway into social media, mobile, call centers, and in brick-and-mortar stores. Online surveys still account for 80 percent of the company's business, but the other avenues are gaining ground.

"It's been pretty diversified," Freed says.

All of the company's growth has been organic and Freed expects that trend to continue in 2013. More double-digit revenue gains are also projected for next year.

Source: Larry Freed, CEO of ForeSee Results
Writer: Jon Zemke

Tangent Medical Technologies has landed millions of dollars more in seed capital thanks to a $8.6 million Series B round. The seed-capital round was also lead by Ann Arbor Arboretum Ventures.

"We're getting ready to commercialize the product," says Jeff Williams, CEO of Tangent Medical Technologies.

The Series B round of venture capital comes on the heels of Tangent Medical Technologies receiving FDA 510(k) clearance for the NovaCath Secure IV Catheter System. Tangent Medical Technologies' product integrates a series of next-generation technologies designed to address IV therapy challenges including catheter stabilization, healthcare worker safety, tubing management and patient comfort. NovaCath's passive needle shielding technology and closed system design is meant to minimize risk of needlestick injuries and occupational exposure to blood to the lowest feasible extent.

Williams declined to comment on how many people work at Tangent Medical Technologies but did say the company "has hired a few people" over the last year.

Source: Jeff Williams, CEO of Tangent Medical Technologies
Writer: Jon Zemke

Accel Partners, a Silicon Valley-based venture capital firm, is investing $30 million into manufacturing software maker Plex Systems.

The Troy-based firm was acquired by Francisco Partners, also of Silicon Valley, last summer. Plex Systems plans to use the new investment capital to create more product features for its software, improve customer service and expand its sales capabilities.

"You name it, we have initiatives," says Mark Symonds, CEO of Plex Systems. "Growing at this rate things break and you rethink things from time to time."

The 17-year-old company creates Cloud ERP software Plex Online, which helps industrial companies improve and streamline the manufacturing process from product quality management to supply chain management. Plex Systems employs 280 people after hiring 90 in 2012. Symonds expects to keep growing at that rate for the next year.

"Manufacturing is one of the largest markets in the U.S.," Symonds says.

Source: Mark Symonds, CEO of Plex Systems
Writer: Jon Zemke

Algal Scientific recently walked away with not only the top prize at this year's Accelerate Michigan Innovation Competition but also $1 million in seed capital to commercialize the start-up's green-tech innovations.

The Plymouth-based company spent its first three years developing a wastewater treatment system that uses algae to remove nutrients from contaminated water. What's left over is the raw materials for biofuel production. That technology won the $500,000 grand prize at Accelerate Michigan but also helped the company lock down a $1 million Series A round, which include contributions from the Michigan Economic Development Corp, angel investors and Envy Capital in Farmington Hills.

"There are a lot of different things on our to-do list and that commitment will help," says Paul Horst, CEO of Algal Scientific.

Among those things are paying for animal testing the technology and hiring more staff. Algal Scientific has hired five people over the last year and now employs 10 staff. Horst expects that number to grow as the firm begins commercial sales in 2013.

"We hope to scale up our production to 100 tons per year capacity," Horst says. "We are currently in a pilot project."

Algal Scientific currently calls the Michigan Life Science & Innovation Center home, but plans to look for a new building to accommodate its projected growth next year. "Most likely very close to where we are right now," Horst says.

Source: Paul Horst, CEO of Algal Scientific
Writer: Jon Zemke

Data Driven Detroit now calls TechTown home, completing its move from the Barden building in downtown Detroit from earlier this year.

The 4-year-old organization dedicated toward collecting statistics and harnessing them for the greater good of Metro Detroit called the Barden building near Comerica Park home until earlier this year when Grand Valley University purchased it. The university planned to use the building for its own charter school operations, which sent Data Driven Detroit looking for a new home. That's when Leslie Smith, president & CEO of TechTown, began to roll out the red carpet for Data Driven Detroit.

"They bent over backwards to find us some space and help us along," says Kurt Metzger, director of Data Driven Detroit.

Data Driven Detroit now employs 20 people after making three hires over the last year. It was attracted to TechTown's New Center campus because of its high-speed Internet connections and collaborative atmosphere for startups.

"It's facilitating interaction with a lot of TechTown clients," Metzger says. "We are working with a lot of people who can use our services and whom we can go to if we have questions."

Source: Kurt Metzger, director of Data Driven Detroit
Writer: Jon Zemke

Atomic Object not only made the plunge into Detroit, opening a satellite office downtown last summer, but now the software firm is looking for a startup to join it.

"We believe very strongly in Michigan," says Bruce Watson, managing partner of Atomic Object. "We are a Michigan company investing in Michigan."

The Grand Rapids-based company specializes in custom software for both web and mobile applications. It opened its Detroit office in Harmonie Park in June on the third floor of 1407 Randolph. The company now employ 41 people after hiring 11 over the last year, including a contingent of five in Detroit. It expects to grow its Detroit staff to 20 within the next two years.

"It's a no-brainer choice to come here and invest," Watson says.

Atomic Object occupies 2,600 square feet at 1407 Randolph. It is looking to share that space with an early stage tech start-up. The free office space doesn't come with much in the way of strings attached. The chosen startup won't have to give up a piece of its ownership for the space. Atomic Object is looking to help a start-up grow that it can collaborate with.

"We believe that investing in Detroit is more than providing good wages and paying taxes," Watson says. "We believe giving back to the community is also part of it."

For information on the free office space send an email here or call 313-444-6010. Applications are due by Jan. 10 and the winner will be chosen within a week of the deadline.

Source: Bruce Watson, managing partner of Atomic Object
Writer: Jon Zemke

Organizers behind the Accelerate Michigan Innovation Competition planned to use downtown Detroit as backdrop for the Great Lakes State's emerging new economy. It worked.

Downtown Detroit's architectural gems (the Guardian Building lobby, the Westin Book-Cadillac Hotel and Orchestra Hall) provided a great contrast of the region's traditional economic might and character with the cream of the crop of Michigan's 21st Century startups.

"There is no time like now and no place like Michigan for innovation," says Dave Egner, executive director of the New Economy Initiative for Southeast Michigan, which has sponsored the competition in its first three years.

This year's top winners include Plymouth-based Algal Scientific (1st place, $500,000), Ann Arbor-based nanoMAG (2nd place, $150,000) and InPore Technologies (3rd place, $100,000).

Quicken Loans Chairman Dan Gilbert was also honored with the Spirit of Michigan Award. Josh Linkner, CEO of Detroit Venture Partners, accepted the award on Gilbert's behalf and spoke highly of downtown Detroit's new tech hub that is bubbling out of the M@dison Building.

"We will be studying this stretch of five years for years to come," Linkner says "It's because of the work and dedication of Dan Gilbert."

Source: Dave Egner, executive director of the New Economy Initiative for Southeast Michigan and Josh Linkner, CEO of Detroit Venture Partners
Writer: Jon Zemke