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Internet start-up Hashgram grows out of Elevator Building

Shane Doyle wanted an easier way to access Instagram photos outside of his mobile device, so he created a startup to do just that, Hashgram.

The Elevator Building-based startup has created a platform that allows users to access photos on Instagram through non-mobile devices, such as laptop and desktop computers. At first photos on Instagram were only visible on mobile devices, such as smart phones and tablet computers.

Hashgram was started by Shane Doyle who was director of sales for 140 Proof, a Silicon Valley-based startup that was one of the first development partners with Twitter. Hashgram capitalizes on its technology by hosting instagram photos for businesses and brands and then selling keywords for them in searches.

"It's about evolving what we call sponsor tags," Doyle says. "It allows users and brands to go in and leverage the real-time activity."

The 1-year-old business and its team of two people (it's currently looking for an intern) shares space at 140 Proof's office in the Elevator Building. The company chose the recently renovated warehouse turned office building overlooking the Detroit Riverwalk and the Dequindre Cut because of its unique space and community atmosphere.

"We just really liked the space," Doyle says.

Source: Shane Doyle, founder of Hashgram
Writer: Jon Zemke

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

Detroit Bikes ramps up production in west side factory

Detroit Bikes is now offering its first bicycles for sale online this month, but the company's founder would prefer his customers bought them somewhere else.

The firm is allowing its first customers to buy the bike (at $550 a pop) as part of a pre-sale. Once production is ramped up the company is going to push to have its sales done through local bike shops.

"The preference for us is for customers to be able to ride them that day," says Zak Pashak, president of Detroit Bikes. "We want them to be assembled when they buy them."

Pashak is a Calgary native who moved to Detroit from Vancouver a few years ago, buying a home in Boston-Edison and looking to launch Detroit Bikes. The company aims to create a classic American bicycle manufactured in Detroit. It has one model right now, the "A-Type", that takes pride in its streamlined design.

The bicycle has tires that are thinner and smoother than a mountain bike and thicker than a road bike. It has only three speeds and larger wheels. The frame is made of chromoly steel. The underlying theme is to create a bicycle made for riding in urban America.

"This bike will make city cycling as easy as possible," Pashak says. He adds that bikes "have sort of morphed into these gnarly beasts. We wanted to bring it back to that simple purpose. It doesn't have all those sorts of bells and whistles that doesn't help."

Detroit Bikes has already 60 prototypes that it is letting a select group of locals test out. They were built at the company's 50,000-square-foot facility on Elmira Street near Schaefer Highway on the city's far west side. Pashak and his team of 15 people are building out the factory for full production this summer. The company has hired eight people over the last year and Pashak expect to add even more soon.

"We need to get to the point where we can build 100 a day," Pashak says. "It takes quite a lot to get a factory at that level of production."

Unlike other startups in Detroit, Pashak is not making the strength of the Detroit brand a major part of his business plan. He moved here with the idea that entry costs were low enough in a place with a skilled manufacturing workforce that will help produce a product that will go up in demand.

"I believe in the city," Pashak says. "The city can produce a superior product. It's not just branding. It's the truth."

Source: Zak Pashak, president of Detroit Bikes
Writer: Jon Zemke

LevelEleven scores extra $500K in seed capital

Tack on another half-million dollars to LevelEleven's bottom line. The downtown Detroit-based startup has now raised $1.5 million in its first seed capital round, garnering new investments from the likes of private-equity investor Rick Inatome, Chicago-based Hyde Park Venture Partners, and Invest Detroit's First Step Fund.

LevelEleven spun out of Pleasant Ridge-based ePrize last fall with its Contest Builder mobile app. The app allows a sales manager to create a contest and real-time leaderboard in minutes to reward making more calls, booking client meetings, finding new sales opportunities or closing more business. LevelEleven, which calls the M@dison Building home, landed $1 million in venture capital funding right away. That funding round was led by Detroit Venture Partners.

The 6-month old business now employs nine people. It will use its latest infusion of capital to help build up its team with new hires of engineers, sales and marketing professionals. It currently has two job openings for positions in sales and software design.

"This investment allows us to grow in an orderly fashion," says Bob Marsh, CEO of LevelEleven. "We're not going to need to go on a hiring binge."

Source: Bob Marsh, CEO of LevelEleven
Writer: Jon Zemke

Digerati works to add 8 to staff, mostly software developers

Digerati is looking for a few good coders. Which isn't unusual for a software firm. Developers are in high demand and don't work cheaply. What makes Digerati unique is it is looking for a lot of them.

The 20-employee firm has hired three people over the last year, and has openings for eight new positions, most of which are professionals in software and IT. "If you're creative and entrepreneurial, we want to get to know you," says Mark Ostach, COO of Digerati.

The 11-year-old company has created backend software for a number of different organizations but two of its higher-profile projects are the MORE Program and Intern in Michigan Initiative. The Intern in Michigan Initiative has helped more than 2,000 companies doing business in the Great Lakes State land interns. Digerati is currently launching Intern in Ohio this year.

The MORE Program launched the InsYght software program two years ago with the idea of creating a software portal that helps connect businesses with the resources needed to grow in a fast and efficient manner. It has facilitated 25,000 users in Michigan and is looking to create a national presence.

"Our effort is to continue to inventory a lot of federal resources available to the entrepreneur," Ostach says. "We think that will be valuable to not only our entrepreneurs but entrepreneurs across the country."

Source: Mark Ostach, COO of Digerati and Mike Gentile, director of communications for Digerati
Writer: Jon Zemke

Locavorious thrives on fresh frozen foods

Locavorious has enjoyed some solid growth in the last year and is preparing to staff up for the 2013 growing season with half a dozen new hires.

The Ann Arbor-based business preserves the produce created at local farms by freezing it in a community freezer. That food is then sold on a subscription basis so customers can capture local food at its peak freshness. More money stays in the local economy and less food is trucked in from the other side of the continent.

Locavorious' subscriptions were up 12 percent to 265 over the last year, and the 6-year-old firm's goal is to cross the 300 threshold by next spring. Last year it faciliated the sale of 14,000 pounds of food and it's looking to do even more this year by widening more channels to supply fresh local food to the Ann Arbor area.

"We are doing a lot more retail on top of our subscriptions," says Rena Basch, owner of Locavorious. The company became a Whole Foods-certified seller last year and the store near the Ann Arbor-Saline Road is carrying six of its products.

"I am talking to two other stores," Basch says. "We will hopefully put more products into our retail channel."

Basch also wants to expand Locavorious' coverage area beyond the Ann Arbor/Ypsilanti area. The Plymouth area appears to be a likely candidate for expansion.

Source: Rena Basch, owner of Locavorious
Writer: Jon Zemke

MedImmune acquires Ann Arbor start-up AlphaCore Pharma

MedImmune has acquired Ann Arbor-based AlphaCore Pharma, creating another exit for a local up-and-coming start-up.

MedImmune, the global biologics research and development arm of AstraZeneca, has not disclosed the acquisition price nor its intentions on whether to keep the start-up in Tree Town. Tracy Rossin, director of corporate public relations for MedImmune, did write in an email that the company does "not have plans to expand its operations/workforce in Ann Arbor." She does add that her firm is "planning to incorporate AlphaCore Pharma into the larger AstraZeneca organization."

The 5-year-old biotechnology company is developing a recombinant human lecithin-cholesterol acyltransferase enzyme. The enzyme in the bloodstream is a key component in the reverse cholesterol transport system, which is thought to play a major role in driving the removal of cholesterol from the body and may be critical in the management of high-density lipoprotein (HDL) cholesterol levels.

AlphaCore Pharma completed a clinical study last year with encouraging results, Brinkeroff says. That made the start-up and its eight-person team an attractive acquisition target, and Brinkeroff says MedImmune is a great partner to continue the development of the enzyme.

"They have a deep experience in developing biological products," Brinkeroff says. "They're an ideal partner to hand off to."

Source: Bill Brinkeroff, president of AlphaCore Pharma and Tracy Rossin, director of corporate public relations for MedImmune
Writer: Jon Zemke

VC Web Design nearly doubles staff, plans to add interns

VC Web Design has grown to the point it's having a hard time finding space for its new hires, leading the downtown Ypsilanti-based business to start looking for a bigger home.

"We can't fit any more people in here," says Vince Chmielewski, president of VC Web Design. "We would like to stay in downtown if possible."

The 3-year-old business was the first to spin out of Ann Arbor SPARK's downtown Ypsilanti incubator. It specializes in website construction and video work. Its revenue has doubled in the last year, allowing it to hire three people. Those new hires include a videographer and website developer.

The company now has a team of seven employees and is planning to add more interns this summer. That staff has been doing work with the Barwis Methods and Ann Arbor SPARK. Chmielewski expects the current rate of growth to continue for the rest of this year.

"So far we're on track to double again," Chmielewski says. "It's why we might not be able to be where we are for much longer."

Also helping accelerate VC Web Design is its recent switch to agile software development methodology. This new system emphasizes website developers showing updated versions of sites in the progress of development so changes can be made quickly and efficiently.

"You can change direction very easily without waiting until the end," Chmielewski says. "It changes our output because we have to do less rework."

Source: Vince Chmielewski, president of VC Web Design
Writer: Jon Zemke

Akervall Technologies hires 3, expands product portfolio

Change was an important word for Akervall Technologies over the last year. The Ann Arbor-based business has rebranded, expanded its product portfolio, added to its staff and begun work on a bigger and better product.

The 3-year-old company's first product is a thin-yet-tough mouthguard made of non-compressible, perforated material, and is 30 percent stronger than conventional mouth guards. The creation of Dr. Jan Akervall -- a local ear, nose and throat specialist -- was originally branded as Protech Dent. Akervall Technologies rebranded it as SISU Mouth Guards because the former brand was often confused with other non-related firms, such as a gun company, with similar names.

Akervall Technologies also expanded its product portfolio, adding a flavor spray to put on mouth guards called SISU Lyst. It is currently in mint flavor with plans to expand the taste options soon. "Eventually we're going to have to have some more flavors," says Sassa Akervall, COO & president of Akervall Technologies and wife of Dr. Jan Akervall.

Akervall Technologies has also hired three people over the last year, expanding its staff to seven employees. It is currently looking for a summer intern or two. One of its recent hires, made possible by a federal Small Business Innovation Resarch grant, was a scientist who is developing a new material for an improved mouthguard set to launch next year.

"Testing shows it can take impact 50 percent better than existing mouth guards," Akervall says. "The original can take impact 30 percent better."

Source: Sassa Akervall, COO & president of Akervall Technologies
Writer: Jon Zemke

Detroit Derby Girls flourishes with entrepreneurial action

Detroit Derby Girls isn't just a roller derby league that is becoming both bigger and more popular. It's also a business that is providing entrepreneurial opportunities for young women across Metro Detroit.

"Not only do we skate but we are all our own employees," says Rene "Renegade" Cizio, a player on the Grand Prix Madonnas. "Every skater is required to be on a committee to be part of the league."

Those committees are what make the league's bouts at the Masonic Temple happen. The participants put in the work to prepare the space, sell concessions, do promotion and balance the books. In return, each player gets a share of ownership in the league. Right now that's five teams that have between 14-20 players each.

"It's a pretty big endeavor to rent the space, train the skaters, hold the event, sell the merchandise, do crowd control," says Cizio, who is a member of the Detroit Derby Girls marketing committee and a digital communications coordinator for a law firm for her day job. "It takes a big staff to make that happen."

Cizio adds that an average of 1,200 people attend each derby bout, and each bout this year has been a sell out. Detroit Derby Girls is a for-profit business which netted $25,000 last year. Profits are reinvested back into building the league.

Women who aspire to become part of the league go through a 30-day probationary period before earning an ownership share. Players have an option of becoming alumni members if they can't skate, such as for a pregnancy, where they can maintain their ownership status by attending public events or continuing their committee work.

"We put a lot of time and energy into it besides our committee assignments," Cizio says. "We also have to attend public events, like parades and the auto show. Each skater is required to attend one public event per quarter."

Source: Rene "Renegade" Cizio, marketing committee member for the Detroit Derby Girls
Writer: Jon Zemke

GreenLancer scores $277,000 in seed capital, hires 6

GreenLancer recently landed six-figure's worth of seed capital and has added six people to its staff.

The downtown Detroit-based startup calls the M@dison Building home, helping business work green technology into their business models. The nearly 2-year-old business leveraged its growing client base into a Series A round worth $277,000. The Midland-based Blue Water Angels led the round.

That cash will go toward GreenLancer's technology development and online marketing efforts. It is also helping to expand its staff to nine employees and two interns thanks to six new hires and three more job openings in sales, web development and engineering.

"We went from a three-man band to nine people who are working on pretty much a full-time basis," says Michael Sharber, CEO of GreenLancer, formerly GreenLancer Energy.

The Bizdom-born startup guides everyday businesses through the process of integrating green technology into its operations. For instance, it helps supermarkets move things like solar panels or more energy-efficient lighting into its buildings.

"Most of the work we are doing is scattered throughout the Midwest," Sharber says. "They are the electrical and roofing contractors. People who built the local Wal-Mart. The cost of solar has gone down so much people are asking them how much it costs. We hold their hand through the process."

Source: Michael Sharber, CEO of GreenLancer
Writer: Jon Zemke

Covaron Advanced Materials lands $300K in seed capital

The winner of the student portion of the Accelerate Michigan Innovation Competition is now a venture-backed start-up, landing six figures in seed capital.

Covaron Advanced Materials (formerly Kymeira) scored $300,000 in a seed capital round, which was led by the Mercury Fund. The First Step Fund, Huron River Ventures and Two Seven Ventures are also participating in the round. The Ann Arbor-based firm is developing a new chemistry for ceramics, which brings the benefits of existing advanced ceramics to new parts and markets.

"It's going to help further the development of the technology and the intellectual property," says Dave Hatfield, CEO of Covaron Advanced Materials. "It will also generate the initial sales in the mold and pattern market."

The 1-year-old business employs four people and a few independent contractors. The team consists of founder Vince Alessi, co-founders Cam Smith and Reed Shick, along with Hatfield. That team took home first place in the student division of last fall's Accelerate Michigan Innovation Competition, a prize worth $25,000.

That prize usually goes to raw start-ups but Hatfield believes Covaron Advanced Materials' technology is far enough along that it can begin making sales in the molds and patterns market (think durable goods like those used by the automotive sector) this year. An expansion into the oil and gas industry and a Series A round of funding could also be in line next year.

"We're hoping to commercialize this as soon as possible," Hatfield says.

Source: Dave Hatfield, CEO of Covaron Advanced Materials
Writer: Jon Zemke

Savorfull expands staff as it preps for public launch

Savorfull, the healthy-eating start-up, recently wrapped up the Beta test of its software platform and is ramping up for its public launch later this year.

The New Center-based company is creating a platform where people can access information about making the best healthy choices for their diet. For instance, it will provide people sensitive to peanut allergies with information on recipes and a place to interact and trade ideas with other people. The same services are offered to people who are sensitive to gluten intolerance and other food-based problems.

Stacy Goldberg, a Bizdom graduate, launched Savorfull out of the M@dison Building last year before. She and her team of five employees and a handful of interns (found through Intern In Michigan) ran a Beta test on it in the latter half of 2012.

"We learned a lot about our customers," says Goldberg, founder & CEO of Savorfull. "We learned about how to serve them and our revenue model. We also learned about building the backend of our platform."

Savorfull is currently working with Quicken Loans to provide glutten-free and peanut-free eating options at events. That work is helping introduce more potential clients to Savorfull's platform. Goldberg is looking to line up a large strategic partner for the public launch of her business in the next six months.

"We have had some really great success in the business-to-business side," Goldberg says.

Source: Stacy Goldberg, founder & CEO of Savorfull
Writer: Jon Zemke

IROA Technologies scores $1M-plus in seed capital

IROA Technologies (formerly NextGen Metabolomics) has a new infusion of seed capital to go with its new name.

The Ann Arbor-based life sciences start-up recently landed a sizable Series A round of financing. Felice de Jong, the firm's CEO, declined to give a specific number of the amount beyond saying IROA Technologies closed a Series A worth "over $1 million." Bloomfield Hills-based O2 Investment Partners led the round with Ann Arbor SPARK and InvestDetroit also participating.

IROA Technologies is developing tools to identify key metabolites that can be used to diagnose diseases such as cancer in samples including blood and urine. The start-up's technology is unique because it can cut through the clutter of information from the analysis of blood or other bodily fluids and tissues to find the critical metabolites that relate to disease and  illness. That cuts the diagnosis time from hours to minutes.

"Our tools make it easier to measure all of the metabolites in a person or any organism," de Jong says.

IROA Technologies plans to use its new seed capital to continue development of its software, expand its sales and marketing and add to its team. The firm currently employs two people and is looking to hire two more now to push forward the commercialization of its technology.

"We're hoping that within the year we will be able to launch our products," de Jong says.

Source: Felice de Jong, CEO of IROA Technologies
Writer: Jon Zemke

StatClash creates 8 new jobs in downtown Mt. Clemens

Online fantasy sports (think fantasy baseball or football leagues) is a relatively new yet proven industry in the few years it has been around. A downtown Mt. Clemens-based start-up hopes to take that industry to the next level by focusing on improving the user experience.

StatClash is developing an online gaming system that provides new ways for millions of fantasy sports fans to play. For instance, they can elect to join on a daily basis mid-season instead of making a season-long commitment that includes tens of hours of work in drafts, trades, etc.

"The industry is huge but there are only a handful of players that are doing the fantasy games well," says Dan Wimpari, marketing director for StatClash. "We want to wed ourselves into them by distinguishing ourselves through user interface and a better user experience."

The daily fantasy sports site was launched a year ago by Anoop Patel and John Pelak. It now employs a team of eight people and offers fantasy league options from traditional favorites like Major League Baseball and the National Football League. It also offers some new options, such as U.S. Major League Soccer and the English Premier League.

"We see room to bring other in other sports, like NASCAR and tennis," Patel says. "We want to bring in more sports pretty soon."

Source: Anoop Patel and John Pelak, co-founders of StatClash, and Dan Wimpari, marketing director for StatClash
Writer: Jon Zemke

Epsilon Imaging aims to raise $5M amid new product launches

The last 12 months have been more than a little eventful for Epsilon Imaging.

The Ann Arbor-based start-up launched its principal product called Stress Echo, an ultrasound for cardiac imaging that quantitatively measures the strength and weakness of the heart's muscles. It now has 12 installations of this technology in hospitals across the country and is looking to ramp up that number even more.

Epsilon Imaging is also gearing up to launch its second product later this month, a cardio oncology application. The technology allows doctors to see if cancer medications are negatively impacting the heart early in the process.

"The people who undergo treatment, some will have their heart come under attack from the medication," says Eric Sieczka, president of Epsilon Imaging. "The problem is you won't notice that until 8-9 months later."

The firm has hired two people over the last year, expanding its staff to 12. Its two recent hires include a director of sales and a software developer. Sieczka also expects to begin fundraising for a Series B round of seed capital worth approximately $5 million, which would double its Series A funding from a few years ago.

"This has been a pretty exciting year for us," Sieczka says.

Source: Eric Sieczka, president of Epsilon Imaging
Writer: Jon Zemke
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