Venture Capital

TerraYebo scores $150K Automation Alley investment

By Newsroom

●

May 2, 2013

The Automation Alley Seed Fund has struck again, investing $150,000 into TerraYebo. This is the Troy-based business accelerator's second six-figure investment in the micro-funding website start-up. It invested $100,000 in the Madison Heights-based firm earlier this year. "Our investment committee liked their entrepreneurial team," says Thomas Anderson, senior director for Automation Alley. "We thought they were smart and focused." TerraYebo is the company behind MyInchofTheEarth.com, a micro-funding platform for nonprofits. The website enables users to claim any virtual inch of the earth or ocean, share why that place is important, and choose a nonprofit that either supports the preservation of that place or a nonprofit that does good in the world. The idea is to let people's life experiences at different institutions (such as their alma mater) or places (a national park) prompt them to give small amounts to non-profits that fund them. The 3-year-old company has signed up a number of name-brand institutions for MyInchofTheEarth.com, including The National Park Foundation, CURE International, VH1 Save the Music, Veterans of Foreign War Foundation and The Pink Fund. TerraYebo's team of four people, it has hired two people so far this year, plans to use the new seed capital to continue the build out of its website and developing its market. "We want to continue to focus on the user experience of our website," says Dan Glisky, president of TerraYebo. "That is first and foremost." The Automation Alley Seed Fund invests in early-stage start-ups with high growth ceilings. Investments range from $50,000 to $300,000. The fund is similar to the Michigan Pre-Seed Capital Fund, which is managed by Ann Arbor SPARK. The Automation Alley Seed Fund got its start in 2004 and has received $6 million in funding, primarily from the state of Michigan. It has invested $8 million over that time, including a couple of start-ups that have either repaid the loans, cashed out the equity in the investment or have been acquired. One start-up, University of Michigan spin-out CieloMed Solutions, was acquired last year and provided a healthy return to the Automation Alley Seed Fund. Source: Thomas Anderson, senior director for Automation Alley; Dan Glisky, president of TerraYebo and Michele Favoretto, CEO of TerraYebo Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Latest in Venture Capital

Buz.fm scores $100K investment from Automation Alley

By Newsroom

●

Economic Development

●

March 7, 2013

Buz.fm has landed a $100,000 investment from the Automation Alley Pre-Seed Fund, the first investment in a Series A round the company hopes will total between $1 million and $5 million. The Orion Township-based tech start-up specializes in developing social media, digital marketing and advertising technologies. The 1-year-old firm provides Internet-based services and products in the advertising and promotion sectors. Its cloud-based applications deliver thousands of digital marketing and advertising campaigns to customers in a variety of industries including restaurants, resorts, hotels, auto dealerships and the entertainment industry, among others. Buz.fm employs 14 people and is interviewing interns for this summer. It currently has five positions open for software developers (two) and marketing technologists (three). "We have grown a lot," says Stephen Sadler, CEO & president of Buz.fm. "It happened faster than we thought. I have never seen something grow this quickly." Buz.fm spun out of Scate Technologies, a software development company, two years ago in September. Sadler hopes to continue the company's current growth streak and lock down its Series A funding round within the next 6-8 weeks. "The sky is the limit, really," Sadler says. Source: Stephen Sadler, CEO & president of Buz.fm Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Beringea to co-lead $180M Michigan Growth Capital Partners fund

By Newsroom

●

Community Development

●

February 14, 2013

Farmington Hills-based Beringea and Credit Suisse will co-manage the newly launched Michigan Growth Capital Partners II, a venture capital fund focused on investing in promising new economy firms based in Michigan. The $180 million fund will be deployed over the next 4-5 years, investing in companies in the following sectors: advanced materials and manufacturing, health care and life sciences, media and communications, specialized consumer goods, homeland security, IT and clean technology. "We have always been a bit ahead on clean tech," says Charlie Rothstein, founder & senior managing director of Farmington Hills-based Beringea. The Michigan Growth Capital Partners II fund, which was capitalized by the Michigan Strategic Fund, follows the original Michigan Growth Capital Partners fund launched in 2008. That fund made 28 investments, including some sizeable investments in a number of locally based companies, such as Livio Radio and ReCellullar. Its biggest exit has been from Accuri Cytometers, an Ann Arbor-based start-up that was recently acquired for nearly $300 million. Source: Charlie Rothstein, founder & senior managing director of Farmington Hills-based Beringea Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Accel Partners invests $30M in Plex Systems

By Newsroom

●

Economic Development

●

December 20, 2012

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

Algal Scientific scores Accelerate Michigan win, $1M in VC

By Newsroom

●

Economic Development

●

December 13, 2012

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

Beringea expands staff, investment portfolio

By Newsroom

●

Economic Development

●

November 15, 2012

Beringea is adding to both its company portfolio and staff, taking advantage of the Michigan Venture Fellowship Program to grow its office of 25 people. "We needed more hands on the oars," says Charlie Rothstein, founder & senior managing director of Beringea. "(Our Michigan Venture Fellows Program fellow) brings experience and great analytical ability to the team. It's a reflection that we are a growing business and we wanted to add to our team here in Michigan." Beringea is Michigan's largest venture capital firm. It's based in Farmington Hills but also has an office in London. It make late-stage investments and has a portfolio of about 60 companies. There are a number of Michigan-based firms in that mix, including Ann Arbor-based Molecular Imaging Research and Mophie, a smartphone accessory maker that is hitting its stride. "It will do $115 million in sales volume this year," Rothstein says. "It's doing fantastically well." The Michigan Venture Fellowship Program is a new talent-placement initiative headed up by the Michigan Venture Capital Association. This is its first year, placing four individuals looking to break into the venture capital investment sector with prominent local VCs, like Beringea and Detroit Venture Partners. "It's a great model that others can follow," Rothstein says. "We are using it to tap into the talent we have here in Michigan." Source: Charlie Rothstein, founder & senior managing director of Beingea Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Travelocity founder to headline Accelerate Michigan competition

By Newsroom

●

Economic Development

●

November 8, 2012

A trio of significant changes are coming to this year's Accelerate Michigan Innovation Competition. First, the $1 million business plan competition will be held in downtown Detroit this fall. The third installment of the new economy competition will take place in the Book-Cadillac Hotel, the Guardian Building and Orchestra Hall, using the Motor City's vibrant downtown and emerging tech economy as a back drop. Accelerate Michigan will also welcome Terry Jones as its keynote speaker. The founder & former CEO of Travelocity will speak about start-up culture and building tech businesses in broader terms than previous speakers, which have all been Michigan-based. "He's a very unknown quantity," says Lauren Bigelow, executive director of Accelerate Michigan. "He has enjoyed an awful lot of success. He has done 10 start-ups." Accelerate Michigan will also beef up its top prizes. The competition has traditionally had a $500,000 top prize and smaller five-figure prizes. This year the first place winner will still receive $500,000 while second place will take $100,000 in seed capital home and third place will received $50,000. Bigelow explains that in previous years the top-prize competitors came down to three very-worthy start-ups and only one would walk away with a big check. The new prize break down helps solve that. "Every year it has come down to three like clockwork," Bigelow says. Accelerate Michigan will be held between Nov. 13-15. For information, click here. Source: Lauren Bigelow, executive director of Accelerate Michigan Writer: Jon Zemke

Investors, DDA plan several changes to downtown Farmington

By Newsroom

●

Arts & Culture

●

October 11, 2012

The Farmington Downtown Development Authority is working with an investment firm that specializes in repositioning old or unused yet promising commercial spaces. At the same time that the firm, Manifold Ventures, takes over a shopping center that is anchored by TJ Maxx. Other improvements to downtown are unfolding. Annette Knowles, executive director of the Farmington DDA, says Manifold Ventures, was attracted by the DDA's offers to contribute funds toward facade improvements to a closed store and by the financial assistance they offered toward the interior renovation. "Manifold Ventures seeks to acquire buildings that exist in excellent locations but are in need of repositioning or recapitalization," says a statement distributed by Knowles. "The owners believe Farmington matches their vision of creating a walkable community with great potential." She says as the space occupied by TJ Maxx is renovated Manifold will look for high-quality tenants that contribute to a new vision of downtown Farmington, one that's more walkable and accessible to different transportation options. Work should begin in early spring 2013 and will coincide with improvements to Grove Street and a project that will add parking spaces to the center of downtown. “Our vision is to help transform Farmington into a walkable neighborhood community, with integrated shopping, dining, and recreation,” Ricky Singh, Manifold Ventures principal, says. Writer: Kim North Shine Source: Annette Knowles, executive director, Farmington DDA

Lincoln Park serving SOUP to raise money for budding businesses

By Newsroom

●

Community Development

●

September 13, 2012

The concept of combining soup and entrepreneurial pitches as a way to raise money for business start-ups is coming to Lincoln Park. The Lincoln Park Preservation Alliance is hosting Lincoln Park SOUP, its own version of successful SOUP projects in Detroit, including the Corktown SOUP at Spaulding Court. For $5 per person guests dine on soup, salad and bread while getting the low-down on budding entrepreneurial endeavors. During mealtime the business plans, which have been approved previously, are detailed in three- to five-minute presentations. At the end of the night guests vote for the most promising proposal. The winner goes home with a portion of the proceeds to be used as project seed money. "Lincoln Park SOUP is designed to help fund local projects and organizations through microfunding…Detroit SOUP has been lauded for its ability to raise monies and microgrants to support creative projects in Detroit. Lincoln Park Preservation Alliance hopes to do the same," says the alliance's Leslie Lynch-Wilson, who also sits on the city Downtown Development Authority. The first Lincoln Park SOUP, which is likely to become a monthly event, will take place at 6 p.m. Sept. 24 at Ikaros Hall, 1677 Fort St. in Lincoln Park. SOUP business proposals must be submitted no later than Sept. 16 to lincolnparkpreservation@hotmail.com. Source: Leslie Lynch-Wilson, Lincoln Park Preservation Alliance Writer: Kim North Shine

Accelerate Michigan attracts more than 300 start-ups in its 3rd year

By Newsroom

●

Economic Development

●

August 23, 2012

The Accelerate Michigan Innovation Competition is back again this fall and it's bring hundreds of innovative start-ups to downtown Detroit. The business plan competition has attracted a little more than 300 applicants to vie for the contest's $500,000 top prize. Accelerate Michigan, in its third year, routinely attracts the cream of the crop of start-ups from the Great Lakes region along with a smattering of companies from across the U.S. who are looking at relocating to Michigan. Accelerate Michigan also serves as a stage for these start-ups to showcase their technology to investors. Last year it attracted 60 investment professionals, ranging from angel investors to venture capitalists to private-equity firms. This year organizers have been able to up that number to more than 100. "The focus this year is going to be putting Michigan on the map for the investment community," says Lauren Bigelow, executive director of Accelerate Michigan. "We were able to get more venture capital and private equity firms here to mingle with out local investors." Accelerate Michigan will be held at the Book Cadillac Hotel in downtown Detroit from Nov. 13-15. For information, click here. Source: Lauren Bigelow, executive director of Accelerate Michigan Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.