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Report: Ann Arbor leads Michigan in entrepreneurial resources

A new statewide guide to entrepreneurial resources shows that Ann Arbor easily tops other Michigan cities when it comes to funding opportunities and other support for startups.

The 2016 Michigan Entrepreneurial and Investment Landscape Guide was released recently by the Ann Arbor-based Michigan Venture Capital Association. The document features more than 140 profiles on venture capital firms, angel groups, support organizations, and service providers active in the state's entrepreneurial and investment scene.

Ann Arbor is particularly rich in resources, with more than half of the state's 44 venture capital firms based here, as well as two angel groups and 17 entrepreneurial support organizations.

"Washtenaw County by far leads the charge in resources that are available for entrepreneurs," says Maureen Miller Brosnan, executive director of the MVCA.

The area is one of the fastest-growing entrepreneurial communities in the state, Brosnan says, thanks in part to work coming out of the University of Michigan in high-tech and life science industries.

Launched last year, the annual guide and companion interactive map helps connect young companies to funding and leadership with a focused approach that Brosnan says wasn't available before.

"The guide was designed to fill that hole we were seeing," she says. "This is the quickest way for startups to find partners."

Another key market for the guide is out-of-state investors, to whom Brosnan says Michigan presents a "vitality" of entrepreneurial activity not seen in other parts of the country.

"For every $1 invested in Michigan startups, $4.31 comes in from out-of-state investors," she says. "We are really good at leading the charge with deals and able to acquire partners from outside the state of Michigan."

The full guide can be downloaded as a PDF from the MVCA website. Printed versions of the guide will be available at MVCA events, including the organization's upcoming 2016 awards dinner in November.
 

Delphinus Medical Technologies lands in larger HQ in Novi

Newer, bigger and better offices often come to startups that lock down a multi-million-dollar venture capital raises. Add Delphinus Medical Technologies to that list now that it has moved on up to a newer, bigger and better headquarters in Novi.

The biotech startup has called Plymouth its home for most of its five years. Then it landed one of the largest rounds of venture capital in Michigan history last fall. The $40 million Series C round (led by Farmington Hills-based Beringea) will go toward developing and selling its whole breast ultrasound system, growing its team and finding a bigger place to house that team. At 21,000 square feet, the company's new home in Novi is three times larger than its previous office in Plymouth.

"It's just a fabulous facility," says Mark Forchette, president and CEO of Delphinus Medical Technologies. "It has a great, inspiring cultural vibe to it."

Delphinus Medical Technologies is creating a new way to detect breast cancer utilizing technology spun out of Wayne State University and the Karmanos Cancer Institute. SoftVue is a whole breast ultrasound system that allows physicians to image the entire breast, including the chest wall. The technology platform incorporates a circular ultrasound transducer, producing cross-sectional ultrasound cross-sections through the entire volume of breast tissue. 

The new headquarters will provide more space for research and development of SoftVue. Delphinus Medical Technologies has hired eight people so far this year, growing its team to just shy of 50 people.

Delphinus Medical Technologies signed a lease on its new office with the idea of providing enough room for R&D and also to act as a showcase for that technology. Forchette expects to host frequent visits from healthcare leaders, customers and vendors, so the company has added a dedicated demonstration room.

"We have room to grow," Forchette says. "We have a facility here that is multifunctional. We have lab space and office space and demonstration space."

Personal tragedy inspires launch of U-M spin-out, Neurable

Making the world a better place is the kind of warm and fuzzy rhetoric tech entrepreneurs use when launching their new startup.

Ramses Alcaide wants to make the world a better place, too, but his inspiration comes from personal experience.

The University of Michigan PhD candidate is dedicated to developing technologies to assist people with physical disabilities because he witnessed first-hand the challenges of living with such disabilities. In particular, the hardships that faced his favorite uncle. That uncle, also a scientist, suffered an accident that immobilized his legs when Alcaide was a young man. His struggles stuck with the U-M grad student.

"I remember seeing him struggle to relearn how to walk with the archaic technology of the time," Alcaide says. "I thought there has to be a better way. But I had no idea what that was."

Those memories served as the inspiration for Alcaide's post doctorate studies and a new startup called Neurable. The University of Michigan spin-out is developing a non-invasive brain-computer interface that allows for real-time control of software and physical objects, allowing people to control wheelchairs, robots and even a car with no training.

Neurable currently has a working prototype of its technology and is working toward commercializing it next year. The startup aims to raise $500,000 in seed capital to make that happen and more.

"We have much bigger dreams," Alcaide says. "We want to make it into a full-fledged company."

It's off to a good start. Neurable, with the help of U-M's Zell-Lurie Institute, took second place in the Rice Business Plan Competition. That gave it $50,000 in seed capital, as well as up to $280,000 for the competition's OWL Investment Prize.

"I really wanted to bring this technology to the next level so I can help as many people as possible," Alcaide says.

Source: Ramses Alcaide, founder & CEO of Neurable
Writer: Jon Zemke

Clarity Quest Marketing capitalizes on patience, focus

For more than a decade, Christine Slocumb has been spreading the good word about her clients at Clarity Quest Marketing. And she has learned a thing or two about running a PR firm over that time.

"Don't worry about the first two years," Slocumb says. "The first two years are the most difficult. Also, over 15 years you will have a few years that are lean and mean."

Ann Arbor-based Clarity Quest is celebrating its 15th anniversary this month. The company has 20 employees and an intern between its home base in Ann Arbor and offices in Connecticut and Seattle. Its revenue is up 25 percent last year, and that's on top of a 23 percent increase the year before that. Slocumb wants to hit 30 percent revenue growth this year as her firm's work grows across the U.S.

"We have some of our first clients in Silicon Valley now," Slocumb says. "That's a region I always wanted to tap into."

Slocumb suggest other small companies focus on a handful of things to really grow and establish themselves: patience, perseverance, hard work and finding a niche. Clarity Quest Marketing has sharpened its focus in its later years to concentrate on work in healthcare IT firms. That specialization has really allowed the company to grow in recent years.

"That really paid off for us," Slocumb says.

Source: Christine Slocumb, president of Clarity Quest Marketing
Writer: Jon Zemke

Armune BioScience lands $4M investment, chases another $25M

Armune BioScience closed on a newly expanded Series A worth $4 million last week, and the life sciences firms has its eyes on even bigger things this year.

"We're on hunt for a $25 million Series B round," says David Esposito, president & CEO of Armune BioScience. "We have brought on Mavericks Capital out of Palo Alto to help us land it."

The Kalamazoo-based company, it also has a laboratory in Ann Arbor, is developing an innovative, non-PSA blood test to aid in the early detection of prostate cancer. Apifiny went to market last year with Armune BioScience hope to sell 1,500 tests.

"We have done a little more than 5,000 billable tests," Esposito says. "That exceeded our expectations for the test for our first year on the market."

That growth allowed Armune BioScience to expand its Series A by $1.5 million. It also prompted the company to hire another three people, all of them medical techs, for the Ann Arbor lab. The company now employs 10 salaried employees and another 10 consultants. The new infusion of seed capital is expected to add more staff this year.

"We'll probably go another five people in the laboratory by the end of the year," Esposito says. "Those will probably be medical techs and PhDs."

Source: David Esposito, president & CEO of Armune BioScience
Writer: Jon Zemke

PreDxion Bio's tech helps tailor treatments to patient's immune system

The team at PreDxion Bio isn't just trying to come up with new technology to help sick people. It's trying to help really really sick people. The University of Michigan spinoff is in the early stages of developing a diagnostic device to help create custom diagnosis. The technology is coming from U-M's Pediatric Critical Care Precision Laboratory.

"One of the main thrusts of our lab is to develop new diagnostic tools to treat these really sick patients," says Walker McHugh, co-founder of PreDxion Bio and a biomedical engineering graduate student at the University of Michigan. He is launching the startup with Dr. Timothy Cornell, a physician at U-M, and Caroline Landau, an MBA student at U-M's Ross School of Business.

PreDxion Bio's technology is a patent-pending diagnostic device that gives doctors the information they need to precisely tailor treatments to a specific patient's immune response. The idea is to make precision care more available to people in intensive care.

The team has created a prototype and is currently entering it into a variety of high-profile business plan competitions. It is one of two U-M startups to make it to the Rice Business Plan Competition next week where it will compete for $1 million in prizes.

The company plans to use any winnings from business plan competitions and any seed capital it can raise to develop a next generation version of its technology that will be manufacturing grade. It hopes to then submit it for clinical trials that will eventually lead to FDA approval in 3-5 years. In the meantime PreDxion Bio's team is looking for interested parties to help it get to the next step.

"We're talking with strategic partners," McHugh says.

Source: Walker McHugh and Caroline Landau, co-founders of PreDxion Bio
Writer: Jon Zemke

Plymouth-based Celsee finds customers for its cancer-detection technology worldwide

Plymouth-based Celsee Diagnostics firm is currently building out its team and growing revenue streams that support its cancer-detection technology.

The life sciences startup formerly known as DeNovo Sciences employs 11 full-time employees and 10 part-time employees after hiring two more over the last year. Those new hires include a new chief science officer and vice president of commercial operations.

"We're building out a leadership team to get our commercialization up and moving quickly," says Kalyan Handique, CEO of Celsee Diagnostics.

Celsee Diagnostics is developing a platform for early detection of cancer from blood samples. Its fully automated system can detect cancer, primarily breast and colon cancers. The idea is to create a less-invasive method than the traditionally painful route of biopsies. Celsee is in the midst of starting clinical trials on this platform. The trials for European approval are expected to be done within six months. U.S. trials are expected to run into next year.

Celsee Diagnostics also raised a small amount of money from investors last year, but it is focusing on generating more revenues to cover its expenses, selling its platform to researchers in the U.S. and overseas.

"We expect to cross $1 million this year," Handique says. "It will make investing in our product easier."

Celsee Diagnostics is also selling its platform in Israel and some developing countries, including Brazil and China.

"We're starting to get more traction in those countries," Handique says.

Source: Kalyan Handique, CEO of Celsee Diagnostics
Writer: Jon Zemke

Inmatech expects breakout year for its battery tech

Inmatech has some grand ambitions for its battery technology in 2016. The Ann Arbor-based firm is looking to close on a couple of partnerships, bring its platform to market, and hire a lot of people along the way.

The University of Michigan spinout is developing advanced battery technology that greatly improves the performance of super capacitors for electronics. These super capacitors enable the batteries to improve the delivery of energy and increase energy density.

"We would be able to charge and recharge faster," says Les Alexander, CEO of Inmatech. "Our energy density is two-to-three times that of the other super capacitors on the market today."

The Inmatech team of eight people has been working on the technology for five years, mainly out of the University of Michigan's Venture Accelerator in the university's North Campus Research Complex. It made significant strides forward in 2015, hiring six people. The new hires range from technicians to executive leadership, including promoting Alexander from COO to CEO.

Inmatech expects to hire even more this year, a move that it will force it to find its own office space. First it needs to land some investment in order to make the commercialization of its battery technology possible.

However, Inmatech isn't going the traditional venture capital route. It is working to broker joint development agreements with two corporate partners. One would put Inmatech's technology in automotive applications.

"It’s a huge step forward for us," Alexander says. "It puts us on the path toward commercialization."

Inmatech is currently proving its battery technology through prototypes. It is currently at the later end of that process, which has helped the company land on Michigan’s 50 Companies to Watch list.

Source: Les Alexander, CEO of Inmatech
Writer: Jon Zemke

Millendo Therapeutics scores big VC round, Duo Security clocks record growth

A couple of tech startups in Ann Arbor are making a splash with some big headlines. Millendo Therapeutics reports that it has raised a $62 million Series B investment round, setting a new record for venture capital investment in Michigan. Duo Security also is reporting 200 percent revenue growth for 2015 over the previous year. Both are banner headlines for a couple of Ann Arbor’s most promising growth firms.

Millendo Therapeutics, formerly Atterocor, is a biopharmaceutical firm working on treatments for endocrine diseases. The University of Michigan spinout is focused on developing novel, disease-modifying treatments for specialty and orphan endocrine diseases caused by hormone dysregulation. It recently signed an exclusive license agreement with AstraZeneca for the worldwide development and commercialization rights to test a new compound for the treatment of polycystic ovary syndrome.

Millendo Therapeutics Series B investment round will fund clinical trials for that new compund and expand its testing of the drug ATR-101, a treatment for adrenal cancer patients. Among the investors in the Series B is the University of Michigan MINTS (Michigan Investment in New Technology Startups) program.

Duo Security also announced some big growth news in its recent revenue gains. The downtown Ann Arbor-based company specializes in providing cloud-based access security through two-factor authentication. Last sprung Duo Security launched its Platform Edition, which builds on two-factor authentication to offer cloud security and endpoint visibility.

Over the last year, Duo Security has doubled its customer base, serving a broad spectrum of companies and institutions including American Public Media, Duke University, DraftKings, and King.com, the makers of Candy Crush. Duo Security analyzed nearly 2 million devices with 1 million users, and handled nearly 2 million authentication events per day by the end of last year.

"It's all about ease of use and keeping our customers happy," Dug Song, CEO and co-founder of Duo Security, said in a press release. "We're passionate about continuing to be the most loved company in security. People are feeling the pain of the cumbersome security products and we're here to make it painless for them."

Source: Millendo Therapeutics and Duo Security
Writer: Jon Zemke

Akadeum Life Sciences scores $1M in investment

Akadeum Life Sciences has landed seven figures worth of seed capital thanks to recently announced $1 million seed round for the Ann Arbor-based life sciences startup.

"It will help us build out our team," says Brandon McNaughton, CEO of Akadeum Life Sciences.

The 1-year-old startup spun out of the University of Michigan by developing a platform that helps researchers prepare research and diagnostic samples faster and more efficiently. The buoyancy-activated cell sorting technology uses tiny floating spheres, which Akadeum is describing as "microbubbles," to acquire target cells from biological samples. Check out a video describing it here.

"Our product goes into biological samples, like blood, and pulls out specific cells to improve research diagnostics," McNaughton says. "We do that using microbubbles."

Akadeum Life Sciences raised $150,000 from Michigan eLab, an Ann Arbor-based venture capital firm, last year to kick start development. Michigan eLab led this latest $1 million seed round. Detroit Innovate, Invest Michigan, and University of Michigan MINTS also participated in the round. Akadeum Life Sciences plans to raise a Series A next year.

Michigan eLab has pushed Akadeum Life Sciences to adapt lean startup methods, which is not normal practices for life sciences startups. That means Akadeum Life Sciences iteratively built its products to meet the needs of its users, working directly with them to develop products that address their specific problems. The startup is currently selling its technology to pharmaceutical and biotech firms, along with teams from research universities.

Akadeum Life Sciences currently employs four people, but McNaughton expects that number to grow over the next year. The startup plans to build out its sales and business development team as it grows.

Source: Brandon McNaughton, CEO of Akadeum Life Sciences
Writer: Jon Zemke

HistoSonics raises $3.5M as it pushes clinical trails forward

HistoSonics has closed on seven figures worth of seed capital over the last year as the Ann Arbor-based startup pushes forward the clinical trails of its biotechnology that treats prostate disease.

The 5-year-old company raised an $11 million Series A in 2009 and is in the process of raising a Series B. It raised $3.5 million in a couple of interim fundraising rounds over the last year as it preps to land an even bigger Series B.

"We're looking to do a much larger round next year," says Christine Gibbons, president & CEO of HistoSonics. "We're thinking the first quarter of 2016."

The University of Michigan spinout got its name by combining histo (meaning tissue) and sonics (meaning sound waves). The firm’s primary platform is a medical device that uses tightly focused ultrasound pulses to treat prostate disease in a non-invasive manner with robotic precision.

HistoSonics and its team of 15 people (four more than last year) is currently in the midst of its clinical trails, which it has completed enrollment in. It plans to expand that clinical trail in the next year and wrap it up by 2016. HistoSonics is also looking to add more applications for its platform over the next year, which it is looking for partners in the medical device world.

"This next round of financing we are looking for strategic partners and investors," Gibbons says.

Source: Christine Gibbons, president & CEO of HistoSonics
Writer: Jon Zemke

Virta Labs tests prototypes to protect medical devices from malware

As the healthcare services start to increasingly rely on technology, they need to start thinking about protecting themselves the same way computers do. Or at least that is how the team at Virta Labs sees it.

The Ann Arbor-based startup, which calls the Tech Brewery building home, is developing a technology platform that will defend medical devices from malware attacks. Pace makers and other high-tech pieces of medical technology are vulnerable to cyber attacks because security is largely undeveloped.

One-year-old Virta Labs, which won the Best of Boot Camp award at Ann Arbor SPARK's Entrepreneur Boot Camp last year, focuses on protecting those medical devices. The company has recently built prototypes and is looking to beta test its security technology later this summer.

"The hardware is pretty much complete," says Denis Foo Kune, co-founder of Virta Labs. "We are in the scaling phase of development of our cloud infrastructure."

Virta Labs recently grew its team of 10 people. That staff includes seven PhDs, a fact Foo Kune is quick to point out.

"We pride ourselves on our strong technical team and being engineering driven," Foo Kune says.

That team also recently landed a Phase 1 SBIR grant worth $150,000 to develop its technology. It is also in the midst of raising a six-figure seed capital round.

"We will be closing our seed round very soon," Foo Kune says.

Source: Denis Foo Kune, co-founder of Virta Labs
Writer: Jon Zemke

TSRL pivots business model to become technology accelerator, grows staff

To say Therapeutic Systems Research Laboratories has been through a lot over the last year might be an understatement. The Ann Arbor-based life sciences firm lost its president and general manager, John Hilfiger, in April of last year. That led to the promotion of Elke Lipka as president of the company just at the time when it started to pivot its business model from drug development to technology accelerator.

"We are partnering intensely with academic institutions," Lipka says. "We are providing the wet lab space and drug development services."

...And more importantly showing its clients the way to non-dilutive seed capital. Therapeutic Systems Research Laboratories, commonly known as TSRL, uses an ongoing collaborative process that lets entrepreneurs leverage its expertise to obtain the data and non-dilutive funding necessary to develop and commercialize their technologies. In exchange, TSRL takes a fee and small equity stake in the company.

"Much smaller than a venture capital firm would take," Lipka says.

TSRL is focusing on companies that optimize treatment for infectious diseases, such as influenza, HSV, VZV, CMV, EBV, poxvirus, HPV, Adenovirus, and RNA viruses. It is currently working with a handful of partners, including one from the University of Michigan.

"Three are pretty active right now," Lipka says.

TSRL has hired two people over the last year, including a business development manager and a chemist. It is currently looking to hire a research scientist to add to its staff of 10 employees and one intern.

Source: Elke Lipka, president of Therapeutic Systems Research Laboratories
Writer: Jon Zemke

Blaze Medical Devices earns first revenues, new investment and hires up next

Blaze Medical Device accomplished a big milestone many other bio-tech startups never even get close to.

"For the first time we are generating revenues," says David Weaver, CEO of Blaze Medical Devices.

The Ann Arbor-based startup made its first sale of its blood analysis services earlier this year. Blaze Medical Devices' platform enables medical researchers and product developers to better understand blood damage from all causes.

"They didn't want to wait," Weaver says. "It has a huge upside for us. It shows that the market is real."

Blaze Medical Devices is now working on adding more clients by the end of the year. The 9-year-old firm is also in the midst of raising a $2 million angel found. Late last year it landed a $200,000 SBIR grant and has since landed more angel investor capital. So far the company has raised $1.3 million toward its $2 million goal, which it expects to close on by the end of the year.

Blaze Medical Devices employs a staff of six employees and is looking to add some summer interns. It has hired one lab technician earlier this year. Weaver expects his staff to continue to grow as it generates more revenues and closes out on its angel round.

Source: David Weaver, CEO of Blaze Medical Devices
Writer: Jon Zemke

Arbor Assays scores with 40 percent revenue growth, adds staff

Russ Hart has been so success at growing a business making assay kits he decided to do it again.

Hart and his partners grew Assay Designs in Ann Arbor to the point it got so big it wasn’t fun for them to run it anymore. They exited it in 2007 and launched another, similar firm later that year, Arbor Assays.

"We just like doing what we do," says Hart, partner with Arbor Assays. "It's an opportunity do the things we enjoy and make money while doing it."

The 8-year-old firm is doing well researching and developing high quality assay kits. It has gone from three co-founders to a staff of 11 people, including two hires (sales & marketing, and manufacturing positions) over the last year. Those staff additions are justified by 35-40 percent revenue growth each year since Arbor Assays' founding.

"We sell to a whole bunch of different industries," Hart says. "We sell to pharmaceutical companies and bio-tech companies and academic institutions."

Arbor Assays has grown 40 percent in the last month alone, and expects to do it again each month for the foreseeable future.

"The month before we did slightly better than that," Hart says. "Each month is better than the last one."

Source: Russ Hart, partner with Arbor Assays
Writer: Jon Zemke
229 Life Sciences Articles | Page: | Show All
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