News

Prosthetics have come a long way since the days of The Fugitive with Dr. Richard Kimble trying to track down a one-armed man. Ask Gordon Maniere and he will tell you there is still a long way to go, even with a man racing with prosthetic legs in the Olympics.

So the certified prosthetist is turning that journey into a start-up, Advanced Amputee Solutions.

"No one has really tackled the problem of where the bone meets the prosthetic," Maniere says. "That's the biggest problem because the amputee won't wear the prosthetic if it causes pain."

Advanced Amputee Solutions is developing its I.E.P. technology, specifically a polymer that cushions the cut bone of the amputee. It applies exoskeletal principles endoskeletally, killing the pain problem at the point of contact. I.E.P. is applied during the amputation surgery so it protects the amputated bone and seals the bone marrow.

This eliminates the problem of trying to make a rigid tool (the prosthetic) comfortably fit with a human body that is never the same two days in a row. "The tissue is constantly changing shape everyday," Maniere says. "Eating salt can cause a wide variety of size in the tissue."

Maniere and his co-founder, Jack Wheeler, are working to build their start-up team and raise a $500,000 angel round of seed capital. Maniere will present his company's technology at the Michigan Growth Capital Symposium next week to help further its fundraising.

"It's really kind of a coming out party," Maniere says.

Source: Gordon Maniere, CEO of Advanced Amputee Solutions
Writer: Jon Zemke

Esperion Therapeutics is adding staff, closing on a round of seed capital and prepping for an initial public offering of stock later this year.

The pharmaceutical firm's staff recently jumped to 13 people after making five hires over the last year. It also has a job opening for a senior director of clinical & PT staff. Helping make that expansion possible is the recent securing of $33 million in preferred stock financing. The seed capital round was led by Longitude Capital with Aisling Capital, Alta Partners, Domain Associates, Arboretum Ventures and Asset Management also participating.

Tim Mayleben, Esperion Therapeutics' CEO, declined to comment on the company's growth because it recently filed for an IPO. IPOs come with quiet periods where company representatives are not allowed to promote the upcoming IPO, often leading them to decline speaking about the company altogether to be safe.

Esperion Therapeutics has historically been an Ann Arbor-based company, scoring a $1.3 billion exit when Pfizer acquired it in 2004. Company founder Roger Newton reacquired the firm in 2008 and eventually moved to the Michigan Life Sciences Innovation Center in Plymouth, which is managed by Ann Arbor SPARK.

Esperion Therapeutic's most advanced product candidate, ETC-1002, is being developed for patients with hypercholesterolemia and other cardiometabolic risk factors. ETC-1002 is a small-molecule metabolic regulator of imbalances in lipid and carbohydrate metabolism and inflammation. It is being developed to address the underlying causes of metabolic diseases and reduce multiple risk factors associated with them.

Source: Tim Mayleben, CEO of Esperion Therapeutics
Writer: Jon Zemke

A little more than a year ago, FlockTAG was a dream of a couple of entrepreneurs looking to reinvent customer-loyalty programs. Today it's a start-up with technology that can be found in numerous small businesses across most of Michigan's major cities.

The downtown Ann Arbor-based start-up raised $250,000 in angel funding last year to create a technology platform that works as a universal loyalty card for a broad range of retailers and other businesses. That technology is now being used at 100 retail businesses in Detroit, Novi, Ann Arbor, East Lansing, Bloomington (Indiana), Champaign (Illinois) and Columbus. It also has 100,000 card holders who have used them 1.2 million times.

"We learned you can never be customer-centric enough," says David Lin, CEO & co-founder of FlockTAG. "How can we provide better user experience? How can we provide more value?"

FlockTAG is looking to expand further throughout the Midwest later this year. It is now focusing on creating more customer engagement on how best to deliver customer data to businesses without overwhelming them with information. "It's really a careful balancing act," Lin says.

FlockTAG has expanded its staff to a dozen employees and two interns. It recently made four key hires of sales and technology professionals. The 1-year-old business is also working to raise a Series A round of funding worth $1.5 million. It's presenting at the Michigan Growth Capital Symposium next week to help hit that goal. Lin hopes to wrap up its Series A financing this summer.

Source: David Lin, CEO & co-founder of FlockTAG
Writer: Jon Zemke

Superior Capital Partners is gearing up to begin fundraising for its second fund, a move that could spur a sizable growth in the downtown Detroit-based firm.

"We're hoping to at least double in size," says Mark Carroll, managing partner of Superior Capital Partners.

The private-equity firm got its start in 2007 with two people focused on turning around lower middle market companies. Superior Capital Partners raised $60 million and expanded its staff to five. Its first investment was in two companies in 2009 that became XanEdu, an Ann Arbor-based firm that made the transition from printing educational materials, like college course packs, to digitizing them for tablet computers. It is now the largest provider of custom, digital course packs for higher-education markets.

The move won awards, including Small Deal of the Year in 2009 from Crain's Detroit Business. Carroll will also be speaking about the deal and its impact at this week's Michigan Growth Capital Symposium in Ann Arbor, one of the top investment conferences in the Midwest.

"It was worthy of being saved," Carroll says.

Superior Capital Partners has invested in 13 companies across five platforms in its first fund. Those companies represent 2,000 employees and $230 million in revenue. Carroll and his team are planning to begin laying the groundwork for raising a second fund worth $120 next year, which should allow Superior Capital Partners to hire three more people.

Source: Mark Carroll, managing partner of Superior Capital Partners
Writer: Jon Zemke

Corridor Sausage Co has gone mobile, launching a food truck called The Grindhouse in Eastern Market last weekend.

The new side venture is one of a handful of milestones the slow-food startup is achieving this spring. Corridor Sausage Co has doubled its production of its artisan sausages in the last six months and received USDA approval to begin selling them in large quantities in more markets. It is also making plans to expand its offerings to include more foods.

Making all of this possible is the Corridor Sausage Co's new home in Eastern Market. The 4-year-old company moved into its first permanent home late last year, allowing it to buy bigger equipment so it can ramp up production. Since then it has doubled its revenue and hired four people to its staff of seven by expanding the firm's client list, landing some big accounts like The Henry Ford and Greenfield Village.

"It has opened up a lot of doors for us," says Will Branch, co-owner of Corridor Sausage Co. "We have gone from seven hours a week in a rented kitchen to 40-50 hours a week in our own space."

That new production capability also allowed the firm to outfit its own food truck. Branch and his co-founder, Zachary Klein, spun off the food truck with Gjon Camaj, who owns a tech firm called Image Space in Ann Arbor. The Grindhouse will sell Corridor Sausage Co's sausages along with its own home-made ingredients, such as mustard. Other ingredients, like kraut, will be sourced from The Brinery in Ann Arbor.

Branch and Klein are making plans to expand Corridor Sausage Co's product portfolio. The partners are experimenting with mustard recipes and making salumi and charcuterie and other aged meats.

"We have been thinking about that for a few years now," Branch says.

Corridor Sausage Co's product could also start to become ubiquitous in the U.S. The firm recently received USDA approval for its sausages, a long and arduous approval process. That approval will allow Corridor Sausage Co to wholesale its sausages and market them in other states, which Branch expects will set the stage for an even bigger growth spurt for the firm.

Source: Will Branch, co-owner of Corridor Sausage Co
Writer: Jon Zemke

Slow and steady isn't just wining the race for Harley Ellis Devereaux, it's leading to some prolonged growth for the architecture and engineering firm.

The company has hired 40 people over the last year, bringing its overall staff to 226 employees and a couple of summer interns. The business has offices in California and Chicago but the lion's share of its employees are in its Southfield headquarters, a number that has been expanding thanks to new work in areas like corporate business and K-12 education.

"It's ramping up," says Michael Cooper, managing principal of Harley Ellis Devereaux. "It's been slow growth but it has been steady growth." He adds that he expects that streak to continue over the next year in all of the firm's offices. "People are feeling a bit more confident in what is happening," Cooper says.

Harley Ellis Devereaux has been winning some awards from the Construction Association of Michigan over the last year. It recently shared "Green Project of the Year" with Turner Construction for its sustainable design and buildout of  the Community Health and Social Services Center, a LEED Silver certified building, in southwest Detroit. Harley Ellis Devereaux and DeMaria Building Co were also recognized for  one of the "Most Outstanding Projects of 2012" for its work on Wayne State University’s Chemistry Building renovations and expansion.

"It's always nice when the industry and your peers recognize your work," Cooper says, adding that the awards have helped with the firm's public relations and recruiting efforts.

Source: Michael Cooper, managing principal of Harley Ellis Devereaux
Writer: Jon Zemke

Arbor Brewing Co spent much of 2012 setting the stage for some significant growth both at home and abroad. This is the year the Ann Arbor/Ypsilanti-based craft brewery begins to reap some of those gains.

The Ann Arbor-based company completed a $1 million eco-friendly expansion to its sister brewery, Corner Brewery in Ypsilanti, last year. That gave the firm the room to double its capacity. Last year it sold 3,500 barrels of beer and is on pace to sell 5,000 barrels this year. Next year's target is 7,000 barrels.

Helping drive that growing demand is sales of its new award-winning IPA (Buzz Saw American IPA) and its takeoff of its strawberry blonde beer, Bollywood Blonde. Arbor Brewing Co is also doing a quarterly release of its Imperial Series, which includes a double IPA and an imperial pilsner. The brewery is also increasing production of its four-packs of barrel-aged sour beers.

"Some of our brands are really starting to take off," says Rene Greff, who co-founded Arbor Brewing Co with her husband, Matt Greff, in 1995.

Arbor Brewing Co's new India franchise is also gaining traction. The firm recently decided to open a franchise in Bangalore to fill the void in the practically non-existent craft brewing scene in India. After a year of trying to get the brewery off the ground, it is now up and running and gaining speed.

"It's doing fantastic," Matt Greff says. "We started serving beers in February and it's blowing away our expectations of sales and beers sold. It's absolutely nuts."

Arbor Brewing Co currently employs about 50 people in India and expects to begin searching for an American master brewer to work there full-time later this year. It is also exploring the idea of expanding to a few more locations in India in the next few years.

The company has a staff of 70 full-time employees and two interns between its downtown Ann Arbor brewpub and the Corner Brewery. It has hired five people between those two breweries over the last year, both for its kitchens and the breweries.

Source: Matt & Rene Greff, co-owners of Arbor Brewing Co and Corner Brewery
Writer: Jon Zemke

TubeMgual is opening an office in the M@dison Building, bringing three more jobs to downtown Detroit.

The Silicon Valley-based business specializes in programmatic branding. It runs video advertising campaigns for all of Michigan’s top automotive brands. The company's first Metro Detroit hires met in coffee shops and worked virtually before taking the advice of representatives of Twitter, which also has an office in the M@dison Building, and considering Detroit's Central Business District.

"We wanted to find a place where we could work with more people in the tech community," says Jennifer Dawson, director of sales Midwest for TubeMogul. She adds that "the minute we walked in and looked around we decided this is where we wanted to be."

The M@dison Building opened two years ago as a center for tech startups and early stage investors. Detroit Venture Partners, the most aggressive venture capital firm in the state, is one of the building's anchor tenants. It invests in young tech startups, many of which are based in the M@dison Building. That sort of atmosphere is what attracted TubeMogul.

"We didn't think being in one of those confined spaces would help us interact with people," Dawson says.

TubeMogal will have a staff of three people in the M@dison Building. It currently has two open positions.

Source: Jennifer Dawson, director of sales Midwest for TubeMogul
Writer: Jon Zemke

Vectorform is recovering nicely from the worst of the economic downturn, expanding its staff and experimenting with new technologies.

The Royal Oak-based tech firm has hired 20 people over the last year, expanding its employee count to 100. Those hires were made possible by 20-percent revenue growth in the last year and similar gains since 2009. It now services 20 Fortune 500 companies, among its growing clientele.

"We have doubled our staff since 2009," says Trevor Anulewicz, director of creative & content strategy for Vectorform.

Vectorform also has a half dozen interns. The company has made a habit of turning its interns into employees. An average of 80 percent of its interns are promoted to full-time employees. "That's a great opportunity," Anulewicz says. "We try to have these folks come in and make an impact and stay."

The 14-year-old company's leaders attribute the company's current growth trend to staying ahead of the tech curve. It has carved out a nice niche creating mobile apps and mastering new software platforms, such as Windows 8. It is also one of the early tech firms to get its hands on Google Glass.

"We will be procuring the device in the coming weeks and we have six great ideas we will be employing with it," says Kevin Foreman, director of product vision for Vectorform.

Source: Trevor Anulewicz, director of creative & content strategy for Vectorform and Kevin Foreman, director of product vision for Vectorform
Writer: Jon Zemke

Growth and change are two words that have become commonplace at Atwater Brewery. Change from its freshly redone brand logo and plans to expand into distilling. Growth from its expanding production facility, beer sales, workforce and a new brew pub.

It has been growing aggressively the last two years. It has upped its brewing capacity from 7,000 barrels to 30,000 barrels. Last year it brewed 12,000 barrels of beer and is on track to brew another 22,000 barrels. The brewery's beers are currently in 15 states and its overall goal is to hit 100,000 barrels by 2015.

"The demand for our brand is hot," says Mark Rieth, owner of Atwater Brewery. "Plus local sales. About 60 percent of our sales are from Michigan."

That growth has allowed the company to hire six people over the last year, including workers in production, management and sales. It is currently accepting applications and expects to hire 15-20 people over the next two years. "We're always looking for good people," Rieth says.

The riverfront-based craft brewery (its located at the corner of Atwater and Jos Campau streets) got its start in 1997 as Atwater Block Brewery. Reith took control of it 2005 and started laying the groundwork for a large expansion. The brewery redid its logo last year to emphasize its Detroit roots.

"We have the Detroit skyline on our packaging," Rieth says. "Brewed in Detroit is on all of our logos."

Atwater Brewery is also working toward expanding its reach. The company is renovating a church in Grosse Pointe Park into a brewpub. Reith expects the biergarten portion to open by July and the overall facility to be done by the end of the year. The brewery is also looking at expanding its current production facility to a new building on the riverfront and opening a tap room in the downtown area, however, both projects are still in the preliminary planning stages.

What is for sure is Atwater Brewery's expansion into liquor production. The brewing is aiming to begin distilling its Dirty Blonde Vodka in the fourth quarter this year and a whiskey not long after it.

"We will be doing a full-range of spirits, including a white whiskey," Rieth says. "It's a whiskey that doesn't have the color. It's clear in color."

Source: Mark Rieth, owner of Atwater Brewery
Writer: Jon Zemke

A couple of Wayne State University students are inventing a better light bulb and turning that idea into a new startup, Signal Techtronics.

Tom Kim and Christopher Attar are developing a next-generation LED light bulb that last longer. The 6-month-old startup's design simplifies the bulb's circuity so it runs cooler and last longer. It also utilizes a vegetable glycerine that replaces an aluminum, making the manufacture of the bulb cheaper.

"It's more effective in cooling and is much cheaper to manufacture," Kim says.

Signal Techtronics launched out of the Blackstone LaunchPad incubator in Wayne State University last fall. The startup and its team of five people have received $2,000 in seed capital earlier this year. It it currently participating in TechTown's Venture Accelerator program where it is developing its first production-ready prototype.

"We should have the prototype done by the end of the summer," Kim says.

Source: Tom Kim, co-founder & inventor of Signal Techtronics
Writer: Jon Zemke

Axis CrossMedia knows that once it grows comfortable in its space, it will soon become uncomfortable whether it likes it or not.

The Troy-based creative agency has continued to grow in recent years by working to stay ahead of the technology curve.

"Constant reinvention. Constant keeping up with market demand and being able to assimilate with new technologies," says Lee Kirchner, principal & creative director of Axis CrossMedia. "There isn't a lot we don't do in house."

The 14-year-old company started out by providing creative services for print media. That evolved into web development and then mobile. It also keeps its creative chops sharp. Today the only thing the company doesn't do is print production.

Axis CrossMedia recently hired an art director/designer, a move that expanded its staff to 10 people.

Source: Lee Kirchner, principal & creative director of Axis CrossMedia
Writer: Jon Zemke

Hudson Editorial is making a splash with its move to downtown Detroit, taking space in one of the Central Business District's iconic structures, the Wright Kay Building.

The creative agency, which specializes in everything from graphics to audio finishing for films, is bringing seven people from its temporary office in Troy this spring. It plans to expand its staff to 16 shortly after the move. The firm will take up 6,400 square feet of post-production studio space on the 5th and 6th floors of the Wright Kay Building.

"We feel that once we're downtown then that is the time to grow," says Kristin Redman, executive producer at Hudson Editorial. "We have had to turn down work because we are in such a small space. We feel being downtown will attract more work."

Hudson Editorial was launched in January and is a sister company of Royal Oak-based Avalon Films, which will also open an office in the Wright Kay Building. Hudson Editorial handles post-production work for a number of advertising agencies, including Campbell-Ewald, Team Detroit, and Leo Burnett. The young company jumped at the chance to take up space in one of downtown Detroit's most striking historic buildings.

The Wright Kay Building is one of the oldest buildings in downtown Detroit, opening in 1891. The 6-story office building is made of brick and brownstone trim with a large turret overlooking the corner of Woodward Avenue and John R Street. It originally served as the home of Schwankovsky Temple of Music and then became the home of Wright Kay Jewelry (for which it is named) for most of the 20th Century.

Rock Ventures, the real-estate umbrella company for Quicken Loans, acquired the building last year and began renovations to turn it into a home for creatively inclined firms. The building's grand architecture was a big selling point in Hudson Editorial's decision to set up shop there.

"That building is so beautiful," Redman says. "Every time I describe that building everybody knows exactly what we're talking about."

Source: Kristin Redman, executive producer at Hudson Editorial
Writer: Jon Zemke

Apparently slow and steady does win the race, even for tech firms that make race car simulation software.

Image Space has made its mark as a video game development firm since 1992. Its principal product is the rFactor and rFactor2 systems, which allow users to build their own four-wheel vehicle and use it in a racing simulator. Slowly and steadily improving those platforms has allowed the downtown Ann Arbor-based company to continue its relentless growth in recent years.

"Our growth will be slow and steady," says Gjon Camaj, vice president of Image Space. "We only bring people in as we need them. Our growth has always been slow and steady."

Image Space now employs a staff of 20 people, a dozen of which work in downtown Ann Arbor. The rest work remotely. The firm hired one engineer six months ago and is in the process of hiring another engineer right now.

That expanding team will help to continue to grow the rFactor platforms, including its new rFactor Pro. Its new products are being used both by professional racing teams and by companies looking to provide a realistic game-playing experience.

"We have sold that to a number of racing organizations, including a number of Formula 1 teams,"  Camaj says. "We have also used that software in other ways and sold it to marketing companies."

Source: Gjon Camaj, vice president of Image Space
Writer: Jon Zemke

D:hive is celebrating its first year anniversary this month and is making plans to continue helping connect more people with jobs, entrepreneurial resources, housing and the City of Detroit itself.

D:hive was created in early 2012 as a hub for people who want to learn more about Detroit and stake a claim in the Motor City. It merged with Inside Detroit, the downtown-based tourism nonprofit, in May of last year. Since the merger D:hive has opened a welcome center, launched a jobs portal, opened its entrepreneur education BUILD program, and continued Inside Detroit's tours of the city. In that time it has taken 7,500 people on tours, graduated more than 100 people from BUILD and helped connect 1,000 job seekers with 500 companies in its network.

"We have been doing a pretty good job of connecting supply and demand in the city," says Jeff Aronoff, executive director of D:hive.

He adds that D:hive plans to drill down more in the employment connections to go beyond just connecting people with jobs. The idea is to make quality connections that serve both parties for years. D:hive is also working on a pilot program that will help educate aspiring retailers so they get access to as many resources as technology entrepreneurs.

D:hive currently employs 13 people. Aronoff expects that number to remain stable even as the nonprofit continues to expand its service offerings.

"Our staff will fluctuate a little bit but it will always be 10-15 people," Aronoff says.

Source: Jeff Aronoff, executive director of D:hive
Writer: Jon Zemke