Entrepreneurship

Coverage of those starting up businesses and community resources to help them thrive.

Venture Michigan Fund II has $120M potential for Metro Detroit VC firms

By Newsroom

●

January 20, 2011

A second Venture Michigan Fund, Venture Michigan Fund II, is being deployed this year, and the $120 million that comes with it has big implications for Metro Detroit.The first Venture Michigan Fund, formed in 2006, made $96 million worth of commitments to 11 venture capital firms. All but one of those is either based in or has an office in southeast Michigan. Nine of those firms have Ann Arbor ties. About one third of that money has been invested in 15 Michigan-based start-ups, the vast majority of which are located in Ann Arbor.The Venture Michigan Fund was created to help grow Michigan's fledgling venture capital industry. A Thomson Reuters study shows that there were 26 VC investments in Michigan in 2006, representing $117.3 million. Those numbers went up to 44 deals worth $231.1 million in 2010, the year the U.S. officially emerged from a recession. Bob Payne, who manages the Venture Michigan Funds on behalf of Credit Suisse, credits Michigan's emerging entrepreneurial ecosystem for that growth."One thing that Michigan has is a wealth of ideas and a number of companies being formed around those ideas," Payne says.State vouchers are providing the capital for the Venture Michigan Funds. That money supported the creation of 200 new jobs and has leveraged $186 million from other investors.Source: Bob Payne, manager of Venture Michigan FundWriter: Jon ZemkeRead more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Latest in Entrepreneurship

Double Lives: Jim Miller

By Tanya Muzumdar

●

Arts & Culture

●

January 20, 2011

Jim Miller is restless... In that fingers-in-many-pies sorta way. Not only is he Metro Detroit's go-to guy for marketing and PR as a member of Franco's Leadership Team, he's also a children's book author. As Nikka Costa sings, "everybody got their something".

AutoHarvest to connect local IP with auto industry

By Newsroom

●

Community Development

●

January 20, 2011

Metro Detroit is sometimes referred to as its own worst enemy when it comes to building businesses and creating jobs. A new non-profit called AutoHarvest is ready to make the region its own best asset by capitalizing on its plethora of intellectual property."We think of the auto industry as low-tech and behind," says David Cole, chairman and co-founder of AutoHarvest. "It's not that at all. This is the most complicated industry in the world."AutoHarvest plans to help connect the automotive industry and Metro Detroit's entrepreneurial ecosystem with the immense amount of intellectual property in the region. The idea is that making these connections will accelerate the deal flow and job creation in both the local auto industry and other emerging sectors. Cole points out that there are six major automakers with operations in the region and another 350 auto suppliers. Pair those with its two research universities, the University of Michigan and Wayne State University, and its handful of business accelerators and there are not only enough sources of intellectual property but players who can use it. It's only a matter of connecting one to the other."This is a marketplace to facilitating collaboration around intellectual property," Cole says. "We think it's going to work."AutoHarvest is working with each of the Big 3, the Michigan Economic Development Corp, local foundations and business accelerators, and creating a peer group of 50 organizations to draw support from. The non-profit is headquartered in Ann Arbor SPARK's central offices but is also keeping offices in Detroit's TechTown and the University of Michigan's North Campus Research Complex.Source: David Cole, chairman and co-founder of AutoHarvestWriter: Jon ZemkeRead more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Oakland Chamber Network unites county’s biggest business boosters

By Newsroom

●

Arts & Culture

●

January 20, 2011

The launch of a new, options-friendly website for the Oakland Chamber Network last week furthers the intention of the organization to have its 29 chamber members work together rather than compete. In the spirit of regional cooperation, the members of the Oakland Chamber Network commissioned the new site, which has information about each chamber, its events, its programs, its Facebook and Twitter page links and more. The network also hosts an annual meeting that's open to its members as well as chambers or interested parties from anywhere. "We think this plants the seeds that will encourage more and more cooperation in Oakland County and beyond its boundaries," says Michele Hodges, president of the Troy Chamber of Commerce and past president of the network. The network is the affirmation of its mission to work together to attract businesses, events, conventions and more to Oakland County, even if that means directing someone to a community other than your own. "In the past chambers have been relatively territorial, but we know our main job is to serve the customer. So if that means the customer is better-served elsewhere, absolutely we want to make sure that customer gets the best service." The partnership also gives members access to shared resources and information to help them do their jobs and ideally bring economic prosperity both inside and outside of Oakland County. Source: Michele Hodges, president, Troy Chamber of Commerce and immediate past president, Oakland Chamber NetworkWriter: Kim North Shine

Gongos adds 37 jobs; plans 14% growth in 2011

By Newsroom

●

Arts & Culture

●

January 20, 2011

For Gongos Research, strategic, steady growth means dozens of new hires in 2010. The consumer research firm has expanded its staff to 111 people, about 90 percent of whom work from its Auburn Hills headquarters. "We have experienced quite a bit of growth over the last year," says Camille Nicita, COO of Gongos Research. "Between 2010 and now we have hired 37 people. Of those, 30-35 are new hires."Gongos Research regularly plans for 10 percent growth and has consistently beat those projections. It plans to hit 14 percent growth in 2011 and to continue hiring at the same level. The firm is regularly interviewing people for new positions, and if it comes across a good candidate but doesn't have a position at the time, it puts that candidate on its virtual bench. The idea is that person knows a job is waiting when one opens up."We don't have a goal to be big, but to be great," Nicita says. "We have a philosophy of only hiring great people."Nicita says Gongos Research is able to do that because it takes a long-range, strategic planning approach to its business model. That consists of nurturing and growing its existing clients, a policy that allowed the company to keep many of its customers through the recent downturn.Source: Camille Nicita, COO of Gongos ResearchWriter: Jon ZemkeRead more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Walkway over downtown Northville takes another step forward

By Newsroom

●

Arts & Culture

●

January 20, 2011

A two-story walkway that will provide a convenient -- and eye-pleasing -- way in to the heart of downtown Northville is picking up pace. The project limped along under City Council municipal budget discussions rededicated the funding away from walkway over East Main Street. But Northville's Downtown Development Authority says the money will be allocated and the walkway built. The Walkway project is expected to cost about $700,000, much of it paid for by federal grants and other sources. About $100,000 is still needed. Catherine Woods, special events coordinator for the Northville DDA, says the walkway will make travel into downtown easier. "This would keep pedestrians from walking around the block," she says. "It would be a cut-through that takes your right near Town Square," where concerts are held, Wi-fi users hang out, and people have lunch. "It's about making it more accessible for everyone, and it will be especially convenient for the elderly, people with disabilities, women with strollers, everyone." Woods says. Besides the opening of the walkway, the DDA's 2011-12 initiatives include a street-scape enhancement project, new downtown signage, and electric car parking and charging stations, among other projects. Source: Catherine Woods, special events coordinator for the Northville Downtown Development AuthorityWriter: Kim North Shinehttp://www.downtownnorthville.org/1/163/index.asp

Breadcrumb tackles GPS technology for Alzheimer patients

By Newsroom

●

Arts & Culture

●

January 20, 2011

Managing Alzheimer patients and keeping tabs on their whereabouts has become an issue of growing importance as the population ages and extends its life cycle. It's an issue a local start-up, Breadcrumb, is capitalizing on.The Royal Oak-based firm has created GPS technology to help families and caretakers keep track of Alzheimer patients. People suffering from the disease are known to wander away without telling anyone where they are going.Breadcrumb has been developing the software for the last two years and has just launched its pilot program with the Alzheimer Foundation of America. Its technology uses GPS trackers strapped to Alzheimer patients' ankles or in their cars to find them if they wander away. The company also sees market possibilities beyond people who are suffering from the disease."This is a very large market," says Mark Ratliff, president of Breadcrumb. "Location-based services are a very substantial market for both people and pets."The nearly 2-year-old start-up now has a team of 10 people (mostly independent contractors) working on the technology now. It hopes to reach $5 million in sales by the end of the year and have a staff of a dozen employees.Source: Mark Ratliff, president of BreadcrumbWriter: Jon ZemkeRead more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Downtown Royal Oak parking meters go solar

By Newsroom

●

Arts & Culture

●

January 20, 2011

An experiment with a new kind of parking meter is in progress in downtown Royal Oak, where 30 solar-powered meters are up and running. The meters not only come with technological bells and whistles that provide the city with up-to-the minute information about broken meters, how they are being used, etc, but also give visitors to downtown another way to pay. In addition to accepting coins, the meters take credit cards, ideally making downtown parking more inviting and convenient. Greg Rassel, Royal Oak's director of recreation and public service, says the meters are "getting positive response so far." The meters are located on Washington Street between Sixth and Seventh streets and at the parking lot on Center Street between Fifth and Sixth. They were installed in mid-December, and in late February or early March the data generated will be evaluated by city officials who will determine if the meters stay, go, or grow to more places in the city.Ann Arbor started installing solar parking meters about a year and half ago. More than half it's downtown has been converted to the new system. Even in the thick of winter, the solar powered machines are working, pulling energy from batteries that store several days' worth of power. "So far we have about 10 percent of people using cards," says Rassel. "During the evening hours that number goes up to 15 percent." Source: Greg Rassle, director of recreation and public service, City of Royal OakWriter: Kim North Shine

Mom turns super hero capes biz into flyaway success

By Newsroom

●

Arts & Culture

●

January 20, 2011

Boil down the description of the SuperCapes.com business to one word, and what comes to mind is "serendipitous". The Livonia-based business got its start four years ago at a birthday party for Holly Bartman's son's fourth birthday. The special education teacher made her son and all of his guests superhero capes. The gift turned into such a hit at the party that one of the mothers suggested that Bartman sell them.Bartman took the bait and began selling the superhero capes on eBay and Etsy, an e-commerce site for handmade or vintage items, art and supplies. Demand soon dictated that Bartman move from her home operation to a small studio at the old Winery building in Farmington Hills, where she deployed a few commercial sewing machines and hired her first employee.Justin Draplin, owner of a social media and signage firm called CityDrip, happened to be next door. Soon he was designing a website for Bartman's superhero capes and wholesaling them. Now he is a managing partner of SuperCapes.com, a company that employs eight people (mostly mothers on a part-time basis) and has a goal of reaching $1 million in revenue this year."The next thing I know I am in the superhero cape business," Draplin says. "I never thought I would be in this business or that it would take off. We have been growing exponentially month over month."SuperCapes.com plans to buy its own building this year to accommodate its growth. Draplin expects its staff to hit 12-15 people by the end of the year as it continues to sell simple, non-branded capes made for budding superheroes. It's also looking to expand its product offering to tutus.Source: Justin Draplin, managing partner of SuperCapes.comWriter: Jon ZemkeRead more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Macprofessionals to create 119 jobs over 5 years

By Newsroom

●

Arts & Culture

●

January 20, 2011

Macprofessionals is continuing its fast march of job creation in Michigan, this week signing a tax break deal with the Michigan Economic Development Corp to create another 119 jobs in Michigan over the next five years.That would practically double the Novi-based firm's existing workforce of 122 employees. Macprofessionals plans to invest $2.2 million toward expanding its Novi base with the help of a $568,578 tax credit over five years. The 10-year-old company plans to hire 20-25 people each year to fulfill its hiring goal."We plan to grow our mobility division, which is our software team," says Kris Westman, a spokeswoman for Macprofessionals.The company specializes in everything Apple, ranging from iMacs to iPads and all of the cool gadgets that can be taken to a Genius Bar near you. It resells Apple products at its northern Michigan location, far away from the nearest Apple store, and teaches people about the line and how to integrate it. It also teaches hospitality businesses the ins and outs of Apple products.Macprofessionals recently opened up a retail location in Bay Harbor (near Petoskey) and a service office in Windsor. It's also in the process of moving from its 17,000-square-foot space to one that measures in at 40,000 square feet.Source: Kris Westman, spokeswoman for MacprofessionalsWriter: Jon ZemkeRead more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.