Features

Ann Arbor SPARK scores $500K for Michigan Angel Fund

The Michigan Angel Fund has enjoyed so much success in its first year that organizers are coming out with a sequel in 2014. The Michigan Economic Development Corp is giving Ann Arbor SPARK, which manages the Michigan Angel Fund, $500,000 for the continuation of the Michigan Angel Fund’s first investment vehicle and then some. "This is allowing us to raise a second fund," says Skip Simms, manager of the Michigan Angel Fund and senior vice president of Ann Arbor SPARK. "The first fund is nearly all invested. It will allow us to continue investing in early stage technology companies across the state." The Michigan Angel Fund is an angel-investment equity fund that specializes in early stage investments. It only invests in Michigan-based tech start-ups in the hopes of growing the Great Lakes State’s new economy. It has 72 members and has made six investments in its first year. Those investments range from $100,000 to $250,000 and are part of seed rounds for startups looking to raise between $250,000 and $2 million. Its latest investment is in Larky, an Ann Arbor-based mobile app startup that just closed a $1.76 million Series A round. "We will probably have a portfolio of 9-10 companies (by the end of the year)," Simms says. Source: Skip Simms, manager of the Michigan Angel Fund and senior vice president of Ann Arbor SPARK Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

MuniRent gains tractions, wins spot in Code for America

MuniRent, the startup that enables municipalities to share heavy equipment, has been gaining traction with some local governments in its first year, but it's finding a lot of easy target clients in Oregon. MuniRent has landed the cities of Chelsea and Milan as clients and is in the process of signing up Washtenaw County, Ypsilanti, and a handful of municipalities in Macomb and Oakland counties. However, it's starting to appear that the startup's easiest opportunities are in the northwestern section of the U.S. "There is a lot of action in Michigan but the biggest concentration (of municipalities open to MuniRent's idea of sharing heavy equipment) is in Oregon," says Alan Mond, co-founder of MuniRent. "Oregon has been doing this since 1995 but they were using Excel spreadsheets." MuniRent launched out of 1000 Tools last year, which is based in the sharing economy where people who own expensive or niche tools can put them up as rentable online. MuniRent is now 1000 Tools primary product, enabling local municipalities to put their heavy or niche equipment up for rent to other nearby municipalities. The three-person startup has spent its first year getting the company established in Metro Detroit, and it also got tipped off to Oregon's affinity for the idea recently. MuniRent also won a place in Code for America’s 2014 accelerator class. About 120 companies applied to take part in the four-month-long program, which takes place in San Francisco, and MuniRent was one of five (and the only one from the Midwest) to make the cut. "We were pretty flattered to be selected," Mond says. "It's a pretty big deal. They are a growing force in the government tech space." Source: Alan Mond, co-founder of MuniRent Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Feature Story OpEd-AB

OpEd: Local Governments Need More Millennial Leaders

Local government bodies aren't reflecting the faces of their residents. Millennials are 23% of the region's population, yet hold only 6% of local board and commission seats. Emily Thompson, program manager for the Michigan Suburbs Alliance, opines on the need for change, and how the On Board database can help.

Feature Story Mash and Blue Tractor BBQ and Brewery

The Story So Far...

For nearly five years Concentrate has made it its mission to capture and comment on what's next in entrepreneurship, urban design, sustainability and placemaking for our region. As we enter the mid-point of 2014, we look back on some of the stories and people that are defining the direction of the Ann Arbor area.

A cautionary tale about downtown public parks

As Ann Arbor feuds and fusses over whether to build yet another park in our downtown, there are examples we might want to avoid repeating. Excerpt: "The greatest land-use mistakes in Minneapolis park history came from creating parks for purposes other than the relaxation, recreation, entertainment or edification of its citizens. Creating grounds for a pleasant stroll to a stadium eight days a year isn’t reason enough to make “The Yard” work as a park. Planning for those two blocks has to go well beyond landscaping only for the benefit of surrounding property owners, too." Read the rest here.

Grillcheezerie brings fancy cheese, artisan bread and new jobs to Packard

It's hard to imagine anything better than a grilled cheese sandwich made with gourmet cheese and artisan bread, but Nick Costos has one idea: having that toasty, gooey sandwich delivered right to your door. Grilled cheese delivery, as well as dine-in eating, is coming to Packard St. in August with Grillcheezerie Sandwich Shoppe "We're so used to American cheese and Wonder Bread," says Costos, who previously owned Mr. Greek's Coney Island. "We're going to use artisan bread and different types of cheddars, munsters, goudas, provolones and other specialty cheeses, and then coming up with different signature sandwiches."  Those could include pizza-style grilled cheeses with pepperoni or wild mushroom with pesto, parsley and goat cheese. Costos came up with the idea after living in Montreal for the past eight years and being inspired by the small cheese shops and bakeries there. "I've always wanted to get back into the business," he says. "And I love this town. I don't think you can get this vibe in too many places."  The 1,500 square foot Packard St. space is now under renovation, which Costos hopes to complete by the end of the month. He plans to open Grillcheezerie the first or second week of August. The restaurant will initially employ a staff of about four, and will offer dine-in seating for 12 to 15 diners, as well as delivery. Source: Nick Costos, Grillcheezerie Sandwich Shoppe Writer: Natalie Burg

New Real Estate One office offers Ypsi pride and expertise

When it comes to the area real estate market, Ann Arbor gets most of the time and attention. Thanks to a new office in Ypsilanti, staffed with local agents, homebuyers looking to purchase there can get the attention they're looking for.  "There was a need," says Dennis O'Hare, associate broker and manager of the new Ypsi office. "We just had an awful lot of people ask when are we going to open an office in Ypsilanti. Now we have agents who know Ypsilanti, believe in Ypsilanti and support Ypsilanti." The 1,675 square foot office opened on June 4 on S. Huron. O'Hare says the central location was chosen for its easy access to the highway, as well as high visibility. The office currently employs seven agents and one administrative staff, but that's just the beginning.  "Our goal here is to have get up to 20 agents," says O'Hare. "As we continue to grow, we'll keep adding staff as well. I'm recruiting constantly for new agents, as well as experienced agents." The new Real Estate One office will celebrate a grand opening on July 17.  Source: Dennis O'Hare, Real Estate One Writer: Natalie Burg

Ann Arbor-based AdAdapted raises $725,000 in seed round

AdAdapted has locked down $725,000 in seed capital to help it scale up its mobile advertising platform. Among the investors were the University of Michigan’s Zell Lurie Commercialization FundBelle Michigan, and Start Garden. The Ann Arbor-based startup plans to initially use part of the money to accelerate its hiring. The 2-year-old company currently employs six people after hiring three over the last year. It's currently looking to hire a software developer and sales professional. After that much of the money will be used to help get the word out about AdAdapted. "We'll mostly be using it on sales and marketing after that," says Molly McFarland, co-founder & chief marketing officer of AdAdapted. The startup's advertising platform connects advertisers with developers to create customized native ads in mobile apps. It strives to provide a simple interface so advertisers can find their best  audience. The idea is to do away with intrusive banner ads by replacing them with slicker native ads. "We have clients right now," McFarland says. "The technology is up and running." AdAdapted's technology is being used by some advertisers. The startup's staff is currently working to flesh out the platform and expand its client base. Source: Molly McFarland, co-founder & chief marketing officer of AdAdapted Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Ornicept shifts into sales mode, plans to close on Series A

Ornicept has a new brand for its product, a few new customers, and is making way to raise even more money later this year. The downtown Ann Arbor-based startup has rebranded its field data collection software (formerly called GeoTraverse) to Specteo. It has gone beyond its Beta launch and started lining up customers as it fleshes out its mobile platform. "We have been hitting sales mode pretty quickly and heavily," says Justin Otani, co-founder of Ornicept. "We also have been adding features and improving functionality." Otani co-founded Ornicept with Russell Conard two years ago, originally developing bird monitoring technology for airports and wind farms. Last year it pivoted to creating a mobile software platform that helps researchers and inspectors collect data in the field. It started on Andriod tablets and is expanding beyond that.   "We have an iOS version coming out later this year," Conard says. Ornicept raised a $600,000 angel round last year that helped get its product to market. It is aiming to raise a Series A round of investment later this year. The company has hired four people over the last year (two marketing professionals and another two sales professionals), expanding its staff to 14 people. Source: Justin Otani and Russell Conard, co-founders of Ornicept Writer: Jon Zemke

Movellus Circuits launches fresh microprocessor technology

A lot of startups struggle to raise money to build prototypes of their technology. Movellus Circuits is flipping the script: it already has its prototypes in hand before any money has been raised. "We have four working prototypes that prove the technology works," says Muhammad Faisal, CEO of Movellus Circuits. Faisal graduated from the University of Michigan in April with a PhD in electrical engineering. He is commercializing his research at the university. That technology is a patent-pending clock generator for the microprocessor market. The 1-year-old startup is working to make sure its generators are quicker to design, smaller than competitors, offer higher performance, use lower power, provide more flexible, and while only being for sale at a fraction of the cost of existing solutions. Movellus Circuits is currently working to line up its first customer to license the technology to. It is also looking at establishing a strategic partnership while gearing up to raise a seed capital round of $1 million later this fall. "That will give us 18 months of runway," Faisal says. Source: Muhammad Faisal, CEO of Movellus Circuits Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

North Coast Banners eliminates debt to grow business

Many growing companies actively work to increase their debt load in order to expand their business. North Coast Banners works to eliminate its debt load to grow. The Ann Arbor-based company has spent the last few years focused on eliminating its debt, while enjoying steady growth. It routinely aims for 10 percent revenue growth while making sure it owes as little to other people as possible. "We have paid down every single nickel of corporate debt," says David A. Abramson, managing partner of North Coast Banners. "This is why we're here and a lot of people aren't." He adds his company was inspired by Dave Ramsey, a financial author and radio host, and his emphasis on being debt free. That has allowed North Coast Banners to grow its staff to six employees and the occasional intern. It hired its last intern as a graphic designer, and it plans to hire another 1-2 people over the next year. North Coast Banners has also added new work by making banners for concerts, festivals and events. Abramson says if you watch a local band in concert these days there is a good chance the banner hanging over it was made by North Coast Banners. That has allowed the company to add $250,000 in gross revenue and spike its revenue beyond the $1 million mark. Abramson credits that growth to the new business and his firm’s continued focus on remaining debt free. "I'm really convinced it's the missing link in a lot of our businesses," Abramson says. Source: David A. Abramson, managing partner of North Coast Banners Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

St. Joseph's is tops for heart surgery

Usually it's ":U-M this. And U-M that." I'm sure St. Joe's in Ypsilanti is glad to get a piece of the limelight for a change. Excerpt: "St. Joseph Mercy Ann Arbor was named one of the top 15 hospitals in the country in Consumer Reports first-ever rating of hospitals in heart surgery. More than 400 hospitals were rated in 45 states plus Washington, D.C. and Puerto Rico based on data for two heart surgeries: surgical aortic valve replacement and coronary artery bypass graft surgery, an operation done to treat blocked coronary arteries." Read the rest here.

How to make mass transit financially sustainable

Though Concentrate would argue that the notion that mass transit need to "pay for itself" is a faulty one (after all, roads are hardly profit centers), this article makes soime really powerful observations. Excerpt: "Just as the public sector pays the electric utility for street lights, it should pay the transit utility for services that the government insists on but that the transit provider cannot charge users enough for. The Paris transit system, RATP, charges local and national governments a "compensatory indemnity" for keeping fares below the break-even price. Governments recover this from an employment tax. Once profitable, the perception and mindset of the transit organization would change from a drain on society to an economic catalyst." Read the rest here.

Feature Story Jennifer Salerno

Sex, Drugs and Eating Disorders: Data-Driven Solutions to Risky Teen Behavior

The bad news is that eating disorders, carrying a weapon and unsafe sex is on the rise in Michigan teens. The good news is that wellness reporting and healthcare counseling reduce those numbers. How do we know this? From the innovative risk assessment interviews that are employed by U-M spin-out RAPPS.

Feature Story Tim Schaden at the Fluency Media offices

Fluency Media's Vertical Climb

A text book definition of serial entrepreneur might very well include a picture of Tim Schaden. From Quiznos to Reservision to Fluency Media, this Ann Arborite has got business creation in his genes. With his Internet marketing firm Fluency, Shaden sees a growth in talent and healthcare clients as the inevitable path to even greater success.

Renovated Sushi.com to reopen as Miya with new foods and larger staff

Sushi.com closed its doors on June 4, but fans of the restaurant need not worry. It's soon to return as Miya, a Japanese and Korean food restaurant with a new look, new staff and new foods... as well as most of the old favorites.  "We did the renovation for the whole restaurant," says owner Don Kim. "Everything is changed to a modern, Japanese style. We're building a whole new restaurant." Kim says the menu will largely be the same but with the addition of some new appetizers and a wider selection of Korean foods than were offered previously. He decided on the name Miya, as that is how most Americans pronounce his wife's name, and it also translates in Japanese to "palace." One thing that will definitely stay the same, says Kim, is his commitment to quality, healthy food. "We are try to make everything fresh," he says. "It's clean and fresh and high quality food. Everyone knows Korean and Japanese food is healthy, and healthy is our main concern."  The total renovation of the space began a few months ago, and Kim expect work to be completed and the restaurant open within about a week. The 1,300 square foot space will seat about 55 diners. Kim is now hiring two to three additional employees to staff Miya. A new website for the restaurant is forthcoming.    Source: Don Kim, Miya Writer: Natalie Burg

Jersey Mike's brings East Coast taste and 20 jobs to Ann Arbor

When Peter Shipman and Mike Wagner opened their first Jersey Mike's Subs on Carpenter Rd. in 2012, it was also the first of its kind in Michigan. The franchise now has 11 locations in the state and the Ann Arbor natives have opened their third, in Westgate shopping center.  "We're just looking to expand as quickly as we can, but also taking our time to choose a good area," says Wagner, who is an operating partner with franchisee Shipman. "It was the right time in terms having space available in Westgate." The Huron and Pioneer High School graduates blend the authentically East Coast sub style of fresh baked New Jersey bread, hand-sliced meats and cheeses and a vinegar and oil blend with Ann Arbor sensibilities of getting fresh produce from local supplier Frog Holler. Getting friendly with local customers is also a part of their store culture. "We make our subs in front of the customers, and we like to get to know them," Wagner says. "We encourage banter back and forth. We like to think we give friendly service." The new Jersey Mike's in Westgate opened last weeks after six to eight weeks of renovation work to the former pet shop space. The restaurant seats about 30 diners and employs a staff of about 20. Wagner and Shipman also own a location in Canton and plan to continue to expand their business. Source: Mike Wagner, Jersey Mike's Writer: Natalie Burg

Huron Valley Financial hires 12 as it eyes expansion

Huron Valley Financial has spent much of its first 17 years establishing its mortgage services in Michigan. Today the Ann Arbor-based company has eight branches in Michigan, employing 75 people. That's after it opened two new branches in Clarkston and Kalamazoo over the last year, prompting it to hire a additional dozen people. Those new hires are mostly of loan officers and customer support professionals. Now Huron Valley Financial is eyeing a bigger expansion across the U.S. this year. Indiana, Texas and Florida have licensed Huron Valley Financial to originate mortgages, and a few more states are in the works. "We have Ohio and California in the works right now," says Casey Daniels, vice president of business development for Huron Valley Financial. "Our California application could be approved any day now." Huron Valley Financial is working to expand to southern statements to help smooth out its business model. Its revenue usually spikes in the warmer months in the Midwest to correspond with housing sales. Warmer climates in southern states means a steadier sales volume, which creates a smoother revenue stream for Huron Valley Financial. "We would like to be able to tap into the warmer states for when it gets cold up here," Daniels says. Huron Valley Financial has continued to grow as the mortgage industry has shrunken over the last year, primarily thanks to rising interest rates and falling refinancing sales. Despite this, Huron Valley Financial kept on growing while other lenders were laying people off. "We never grew too big too fast, even during the good times," Daniels says. He adds, "We haven't gone through any layoffs because we have a great business model." Source: Casey Daniels, vice president of business development for Huron Valley Financial Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Accent Reduction Institute spins out Accents International

Judy Ravin and Barb Niemann are in the middle of a big shake up at the Accent Reduction Institute. First off, it's not just the Accent Reduction Institute anymore. The Ann Arbor-based company is now working closely with Accents International, which spun out of Accent Reduction Institute three months ago. The 8-year-old company made a name for itself providing accent reduction training programs. Those programs gave non-native English speakers the tools to communicate seamlessly. Think of software that helps people with English pronunciation. "I felt that Accent Reduction Institute was up and running and doing great," Ravin says. "This year we converted all of our learning material to online and hosted in the cloud. It was a big milestone for us." Today Accent Reduction Institute focuses on licensing those programs out to corporations and large institutions looking to help their employees overcome language barriers. It's primarily a product company. Ravin, who is still a board member at Accent Reduction Institute, and Niemann launched Accents International to handle the service end of the business. The LLC focuses on providing educational training to people who speak English as a second language and want to do so with ease and clarity. "We really missed the teaching side of this," Ravin says. "There is nothing more gratifying than working with people and helping them clarify their professional expertise." Source: Judy Ravin, co-founder of Accents International Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Selocial bridges photos, music, and social media

Music, photos, and social media are three of the hottest trends in tech today. Lots of startups make their way specializing in one of those things. Selocial is making a name for itself by connecting all three. The Ann Arbor-based startup likens itself to when Instagram meets Spotify or Pandora. The 1-year-old company’s software allows users to make a "Selomix," which is a 15-minute visual playlist that combines the users preferred music with a photo. "When any song is played on Selocial instant news about that artist is activated," says David Baird, co-founder & CEO of Selocial. "It's a more social experience than Instagram or Pandora." Baird considers himself an artist with published work as a songwriter and author. His songs have appeared in the movie "White Chicks" and TV show "House of Lies" on Showtime. His career over the last 15 years led him to believe that there had to be a better way for independent artists to attract attention, which served as the inspiration for Selocial. "I thought artists weren’t being discovered the way they should be," Baird says. "How can I help artists like myself get discovered?" Selocial launched the public Beta version of its platform in May. The team of six behind the startup is working to grow its user base to 5,000 to 10,000 people by the end of the summer. In the mean time, the Selocial team is working to better link user accounts and introduce real-time chat. "We want to improve our sharing," Baird says. Source: David Baird, co-founder & CEO of Selocial Writer: Jon Zemke Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.

Hasini and Harshini Anand are members of Corner Health Center's Youth Leadership Council and mental health advocates.

 


   Voices of Youth
Concentrate's Voices of Youth series features content created by Washtenaw County youth in partnership with Concentrate mentors, as well as feature stories by adult writers that examine issues of importance to local youth. Click here for a full list of the latest content from this series.