Innovation News

Minority Business Access Fund aims to spread $100M across metro Detroit

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November 20, 2014

The Michigan Minority Supplier Development Council is making $100 million in liquidity funding available to minority-owned businesses across Metro Detroit. The Minority Business Access Fund is a loan vehicle for small- and medium-sized businesses in need of capital to get them through a revenue hiccup and set the stage for more growth. The $100 million is expected to have legs beyond its first year. "If we're successful in getting $100 million out in the first year we will be able to get $100 million out there again in the second year," says Louis Green, president of the Michigan Minority Supplier Development Council. The Minority Business Access Fund expects to make 75 to 100 loans in its first year. The recipients are expected to be all kinds of minority-owned companies, such as multi-million dollar automotive suppliers and family-owned businesses. Liquidity financing often helps companies bridge the gap between filling and order and collecting the revenue if the customer can't pay on time. Liquidity financing often pays a critical role in enabling the borrower to pay its bills and make payroll. Minority-owned firms have long struggled with obtaining loans from traditional sources, such as banks. Source: Louis Green, president of the Michigan Minority Supplier Development Council Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

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SurClean scores $25,000 win at Accelerate Michigan

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Innovation News

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November 20, 2014

SurClean added another $25,000 to its ledger when it walked away from the Accelerate Michigan Innovation Competition earlier this month. The Wixom-based startup won the Product and Services category, which comes with a check for $25,000 in seed capital. SurClean plans to add that money to the Series A round of investment it is currently raising, and use it to help secure its intellectual property. "We're in the process of filing numerous patents," says Susan Sprentall, CEO of SurClean. The company is developing a laser-based technology that replaces the harmful chemicals, media blasting, and other abrasives typically used in the removal of paint and other coatings from aircraft, vessels, and bridges undergoing maintenance. Its system uses a laser beam to disintegrate and remove paint and other coatings like rust from substrate in a cost-effective, safe, energy-efficient and earth-friendly way. The company launched the first generation of the product this year. It's in the process of developing the second generation of the product and should be ready to bring it to market by next spring. "We should have established sales in the aviation sector (by then)," Sprentall says. "We should also be moving forward in the bridge and U.S. Dept. of Transportation sector by then." SurClean currently has a staff of five employees and two interns. It is also looking to hire another three people right now, and 10-15 additional by the end of next year. Source: Susan Sprentall, CEO of SurClean Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Southfield’s Ayar Law Group takes off with tax law work, adds 5 jobs

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Community Development

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November 20, 2014

When Venar Ayar launched his own tax law practice, Ayar Law Group, two years ago he quickly realized he had a growing problem. But it was a good problem. The Southfield-based firm's legal services were so in demand that Ayar had to move out of the 10-foot by 12-foot office within three months because he hired his first employee. Three months later he had to move to a bigger office after he hired two more people. Three months later, Ayar Law Group moved to its current offices to accommodate its growth. "This office is almost to the point where I am at capacity," Ayar says. "I have grown so fast." Ayar Law Group offers legal services in tax law, including audit defense, tax-debt relief, negotiating tax settlements, criminal tax fraud defense, and unfiled tax returns. It services individuals, families, and small businesses. Today Ayar Law Group has a staff of eight employees and three interns, including five hires over the last year. It is currently looking for another attorney to hire and a law student for an internship. "I am always looking for more law students and lawyers," Ayar says. "I don't plan to stop hiring anytime soon." Ayar has a Master of Laws in Taxation (the highest degree available in tax law practice) from the University of San Diego School of Law. He also worked as an IRS defense lawyer for five years. He started Ayar Law Group two years ago because he saw a huge uptick in tax troubles thanks to the Great Recession and the economy was finally improving to the point that people were becoming optimistic. "It was sort of the perfect time for this," Ayar says. Source: Venar Ayar, principal of Ayar Law Group Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

SE Michigan firms dominate Accelerate Michigan competition

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Economic Development

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November 13, 2014

Eleven startups took home cash prizes at last week's Accelerate Michigan Innovation Competition and each one of them is based in southeast Michigan. While Ann Arbor-based firms took home the lion's share of the winnings, companies based in Metro Detroit also won some of the category awards worth $25,000 apiece. Those winners included Wixom-based SurClean (Product and Service category), Plymouth-based Beet Analytics Technology (Manufacturing), and Detroit-based Inventev (Advanced Transportation). Ann Arbor-based firms SkySpecs (drone technology) and Cribspot (online platform for off-campus housing) took the top two spots worth $500,000 and $100,000, respectively. Ann Arbor startups also took six of the nine category wins. More info on those here. Accelerate Michigan is an annual business plan competition held in downtown Detroit. It aims to promote and grow the cream of the crop of startups based in Michigan or looking to move to the Great Lakes state. Its $1 million in prize money and services also serves as a motivational tool to push startups closer to investment and commercialization. "It's a very good learning process," says David Wang, CEO of Beet Analytics Technology. "I have never prepared so much for a 10-minute pitch process." Beet Analytics Technology provides diagnostic and analytical tools that accelerate problem solving in complex manufacturing and automation operations. Its software improves problem identification and reduces production downtime so the user can optimize productivity gains. SurClean is developing a laser-based technology that replaces the harmful chemicals, media blasting, and other abrasives typically used in the removal of paint and other coatings from aircraft, vessels, and bridges undergoing maintenance. Its technology uses a laser beam to disintegrate and remove paint and other coatings like rust from substrate in a cost-effective, safe, energy-efficient and earth-friendly way. Inventev is creating a hybrid-electric system for commercial trucks. The technology is a new transmission architecture that allows electric machines to operate other aspects of the trucks, such as the hydraulic lift. That way the truck's diesel engines don't need to idle while they dump their load. Source: David Wang, CEO of Beet Analytics Technology Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Soothsayer Analytics launches out of Livonia

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General

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November 13, 2014

A new analytics startup is launching out of Livonia, and it's looking to start making a name for itself as the company that can translate the effectiveness of cutting-edge algorithms into everyday English. Soothsayer Analytics likes to describe itself as a data science and machine-learning startup. It aims to use machine learning and statistical techniques to find hidden insights and patterns from complex and unstructured data. The 3-month-old company currently has a core team of six employees and nine advisors, along with some help from overseas universities. It is also in the process of hiring another employee. "We have some really respected people in a variety of different fields," says Christopher Dole, partner of Soothsayer Analytics. "We expect to do some really exciting work." Some of the projects in the pipeline include a technology that will be able to forecast which college football players will make the transition to the NFL, and which team each individual player would do best with. It’s also working on a mathematical model that will help predict things like stroke or heart attack. Soothsayer Analytics is hosting a conference at 9 a.m. Friday, Nov. 14. It will feature a two-hour presentation by Murthy Kolluru that aims to demystify data science. The idea is to provide business leaders with a deeper understanding of the subject by emphasizing intuition instead of the math behind some cutting-edge algorithms and concepts like machine learning. The event will be held at 21000 W. 10 Mile Road in Southfield in Room M336. For information click here. Source: Christopher Dole, partner of Soothsayer Analytics Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Beet Analytics Technology scores win at Accelerate Michigan

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Economic Development

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November 13, 2014

Beet Analytics Technology was already on a significant growth spurt. Now it has a win at last week's Accelerate Michigan Innovation Competition to add to that momentum. The Plymouth-based tech firm won the Manufacturing category of the Accelerate Michigan competition, putting $25,000 in seeding capital toward its growth plans. The 3-year-old manufacturing software startup plans to use the prize money toward further developing its platform and acquiring more hardware for it. "We are prepared for another leap forward," says David Wang, CEO of Beet Analytics Technology. "We have had a lot of interest." Beet Analytics Technology is developing diagnostic and analytical tools that accelerate problem solving in complex manufacturing and automation operations. Its software improves problem identification and reduces production downtime so the user can optimize productivity gains. The company has landed a couple of contracts with original equipment manufacturers (OEMs) from around the world and now claims to have landed contracts or is in talks to sign with half of the 10 largest OEMs in the world. It has hired seven people over the last year, expanding its staff to a dozen employees. This activity led it to give the Accelerate Michigan competition a try this year. The annual business plan competition is Michigan's pre-eminent contest for startups, awarding $1 million in seed capital and services each year. The top prize is for $500,000. Wang and his team left the competition impressed with what they saw. "I was amazed by how many quality entrepreneurs there are in Michigan," Wang says. "I was happy to meet all of them." Source: David Wang, CEO of Beet Analytics Technology Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Inteva continues to grow in Troy

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Economic Development

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November 13, 2014

Lots of companies like to call themselves global because they have an office in Europe or a sales employee in Asia. Inteva Products likes to call itself a global firm because it employs 11,500 people in 18 countries. The automotive supplier specializes in everything from interior systems to engineering. It employs 300 people at its Troy headquarters after making a handful of new hires over the last year. "There have been a number of hirings," says Karen Manardo, global director of marketing & communications for Inteva Products. Inteva Products spun out of Delphi in 2008. It acquired Arvin Meritor in 2011, a move that essentially doubled its size. "That was our biggest growth phase," Manardo says. The company went from $1.2 billion in sales to $2.4 billion. It has since grown quickly, with its revenue edging up to about $2.8 billion. "We have continued to grow, particularly in China," Manardo says. "That's our biggest growth area." Source: Karen Manardo, global director of marketing & communications for Inteva Products Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

IT security firm VioPoint adds to staff in Auburn Hills

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Entrepreneurship

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November 13, 2014

Every tech firm is looking to carve out its own niche in the digital landscape. VioPoint is using its new niche as a platform for its recent growth spurt. The Auburn Hills-based tech firm specializes in cyber security and offers strategic consulting services on top of that. It has recently targeted its focus on providing an active digital defense for small-to-midsize companies. "We realized there is a niche where there were all of these security breaches," says Kelsey Marsh, marketing coordinator for VioPoint. "Often they don't have the budget or don't realize they need security." VioPoint steps in and offers a comprehensive solution of managed IT security services. What makes it attractive to small businesses is that since it's all inclusive it can be more affordable. "It draws the costs down for our clients because we can create efficiencies and synergies," says Mike Pokas, vice president of consulting services for VioPoint. The rising demand for those services has allowed VioPoint to grow, hiring four people in IT security consulting over the last year. It now employs a staff of 25. VioPoint is projecting a spike in revenue of 30-35 percent this year, and it's optimistic it can hit that number again in 2015. "The bad guys aren't going away," Pokas says. Source: Kelsey Marsh, marketing coordinator for VioPoint and Mike Pokas, vice president of consulting services for VioPoint Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Oakland University students build diabetes app, TypeOneTwo

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Healthy Communities

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November 13, 2014

A trio of Oakland University computer science majors placed at the MHacks hackathon in Ann Arbor with its diabetes mobile app. Andrew Clissold, Steven Wiggins and Brandon Powell are the undergrads behind TypeOneTwo. The mobile app helps people who live with diabetes track and analyze their glucose and insulin levels. "I have been wanting to make an app to help me better track my stuff," says Powell, who also lives with Type 1 diabetes. The friends built out the app during the MHacks software programming competition at the University of Michigan earlier this fall. The 2-month-old startup placed in the top 10 after the 36-hour hackathon, and set the stage to further develop the app into a business. "This was something that was fun for all of us and could help other people," Powell says. "It was really a blast. We had so much fun. We just sat down and programmed for 36 hours." The trio behind TypeOneTwo plans to keep developing the app over this winter and launch it to the public in early 2015. Source: Brandon Powell, co-founder of TypeOneTwo Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Breast cancer survivor launches bio-tech startup, re-Contour

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Healthy Communities

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November 6, 2014

Julie Hyde-Edwards is a breast cancer survivor and an entrepreneur, and those two things are joined at the hip for her. The Royal Oak resident was working as a graphic designer for a financial services firm when she was diagnosed with breast cancer. She lost her job midway through fighting her illness, and ended up going through a double mastectomy, which required removing large amounts of tissue from each breast. But she survived. She innovated a new technology. And now she is working on commercializing it with her own startup, re-Contour. "I was learning that there were stages of this that were problematic, so I tried to fix it myself," Hyde-Edwards says. Re-Contour's technology is a type of surgical dressing that improves the aesthetic look of the breast and nipple, helping it avoid flattening and encourages healing after a mastectomy. The re-Contour dressing cover the breast mound, with no contact on the nipple area – providing a safe space around the newly created nipple and preventing clothes from applying pressure to it. Mastectomies routinely leave large scars on the survivor, and nipple loss after the procedure is not uncommon. Many women struggle with the physical changes that occur after a mastectomy. "It looks like someone took a machete and tried to cut you in half," Hyde-Edwards says. "It's pretty hard to look at." Hyde-Edwards is currently working with Dr. Kenneth Shaheen, section head of plastic surgery at Beaumont Hospital in Royal Oak, on commercializing the technology. Re-Contour received a patent for its dressing in April and it recently took first place in the Growth category (worth $13,900) at the Entrepreneur-YOU business and pitch plan competition at Walsh College in Troy. Re-Contour has been working with a variety of local economic accelerators, such as TechTown in Detroit and the Macomb-OU INCubator in Sterling Heights, but isn't directly enrolled in any specific incubator program. "We're hoping to produce this product within a year," Hyde-Edwards says. Source: Julie Hyde-Edwards, founder & CEO of re-Contour Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.