Rochester : Innovation & Job News

Cool is not one of the words that comes to mind when people think about the mini-scooters that seniors and people with disabilities use to get around. A Rochester Hills-based start-up thinks it has come up with the cool version of that scooter.

Berylline and its team of about a half-dozen people have created a new vehicle that looks like a scooter but with three wheels. Think of a modern scooter but with two wheels in the front with a wide wheel base and tires that don't lack for tread.

"The concept is proven," says Steve Sandstedt, a business advisor for Berylline. "It's really a cool product that provides more mobility for seniors."

The 1-year-old company has created a concept vehicle and is looking to start production by the end of this year. It is also looking to raise a seed capital round worth between $500,000 and $1 million this year to move the company forward. It recently received five figures' worth of financing from the Michigan Microloan Fund to help push its development forward and get it ready for an urban environment.

"This product provides an opportunity to have an alternative urban form of transportation," Sandstedt says.

Source: Steve Sandstedt, a business advisor for Berylline
Writer: Jon Zemke

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

Three Metro Detroit firms have landed a couple of pieces in the latest round of financing disbursed by the Michigan Microloan Fund Program.

Ann Arbor SPARK manages the Michigan Microloan Fund Program, which makes loans in the low five figures (organizers often decline to specify the size of each loan) to young start-ups looking for seed capital that are based in Michigan. That money is often used for things like prototype development or marketing. Eligible firms are often so new they are unlikely candidates for bank loans or angel investment or even steady revenues.

"These funds are reserved for pre-seed organizations," says Joe Licavoli, manager of capital programs for Ann Arbor SPARK.

The Michigan Microloan Fund Program recently made nine microloans worth $397,000. Most of those loans went to Ann Arbor-based firms because the program also has sub categories that are funded by the city of Ann Arbor and Washtenaw County to invest in local firms in their municipalities. The three Metro Detroit start-ups to receive microloans include:

- Berylline, a Rochester Hills-based company, that is commercializing a specialized, three-wheeled hybrid scooter

- ENT Biotech Solutions, based in Grosse Pointe, is developing a handheld device used to simultaneously clean cut, cauterize and remove larger adenoid tissue portions

- EcoFuel Technologies, of Troy, which is working on technology that turns garbage plastic into diesel fuel

"We'll need a lot more money but (the microloan) did give us some help," says Swaminathan Ramesh, founder & president of EcoFuel Technologies.

Source: Joe Licavoli, manager of capital programs for Ann Arbor SPARK and Swaminathan Ramesh, founder & president of EcoFuel Technologies
Writer: Jon Zemke

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

Allison & Taylor is one of those intriguing companies to watch if you want some clues about what direction the economy is heading.

The Rochester-based firm checks the references for corporations and individuals. For instance, Allison & Taylor will check the past work references of people looking to land a new job. Since the recession hit a few years ago, it has been handling work for the newly unemployed.

Today it's a combination of that workset and people who are employed and looking to climb the next rung of the career ladder. Those people are often the types who have been employed at the same job during the recession and looking to make the next step up, or to pay their bills took a job for which they were overqualified.

"Many of these people are looking for jobs that are more in their skill set," says Jeff Shane, executive vice president of Allison & Taylor.

Another growing part of the company is its cease-and-desist letter service. If Allison & Taylor finds that a former employer is giving a subpar reference, its attorney will send a letter asking that person to stop making the recommendation or face legal action.

"The cease-and-desist letter service demand has been strong in the last two to three years," Shane says.

Source: Jeff Shane, executive vice president of Allison & Taylor
Writer: Jon Zemke

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

Cirrus Group has found its niche providing back-end software for school districts and after-school programs and is growing across North America.

The Rochester Hills-based business' software is now being used in a majority of states in the U.S. and parts of Canada. The company has watched its revenue grow 70 percent over the last year, which has allowed it to hire two software programmers, expanding its staff to 10 people.

"We have plans to hire a couple more," says Michael Garrett, COO of Cirrus Group. "We're also doubling our space and moving into a suite."

Cirrus Group's principal product is software that handles operational, financial and customer management functions for child-care facilities, community centers and school districts. The platform manages enrollment, participant payments and communications, scheduling and government compliancy requirements including state and local subsidy payments and food care programs.

"We're one of the only software companies in our area that handles the subsidy payment of before- and after-school care," Garrett says.

Most of the 10-year-old company's growth has come from school districts and after-school programs outside of Michigan. Garrett expects that to continue as more and more school programs look to leverage the firm's flexible platform.

"The last three years have been our highest-growth years," Garrett says.

Source: Michael Garrett, COO of Cirrus Group
Writer: Jon Zemke

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

The Coil Group, a combination marketing and mobile app firm, is sinking roots in downtown Rochester.

The 10-month-old company was working from coffee shops and home offices of its founders, Jim Brown and Jon Pielak, in Rochester until it scored a small office in the city's central business district. Brown and Pielak have been looking at office space in downtown Royal Oak and Detroit but choose Rochester because of the dynamic downtown and easy access to free parking.

"The downtown is vibrant," says Brown, president of Coil Group. "There are lots of great restaurants and coffee shops. We thought the small urban setting would be great for people who would want to work for us."

The Coil Group specializes in providing both mobile apps and traditional marketing services to mid-size businesses. The company's bread and butter is having expertise in both niches. A small mobile app start-up might not have marketing expertise, or a marketing firm might be lacking in mobile app knowledge.

That business plan has allowed the Coil Group to grow to 10 people and it is looking at adding interns this summer. It has experienced most of its early growth from word-of-mouth referrals from some of its first projects.

"We have built a network of relationships across the state of Michigan," Brown says. "That has opened a lot of doors. A lot of people have embraced us."

Source: Jim Brown, president of Coil Group
Writer: Jon Zemke

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

High Bit Security's bread and butter is IT security, but the Rochester-based firm is making its product offerings heat up by focusing more of its attention on sales and marketing.

The 3-year-old firm specializes in IT Security Testing (Penetration Testing), Social Engineering, and obtaining and maintaining PCI-DSS or PA-DSS compliance. It has recently focused on its sales and marketing efforts, adding a full-time staffer to handle that part of the company.

"A good part of the last year was spent getting that part of the business online and working," says Adam Goslin, COO of High Bit Security.

The idea is to bolster the sales and create some internal efficiencies. That has led to a freshly relaunched website and a constant drum beat of press releases going out each month. That work has set the stage for the company to hit some significant growth goals this year.

"This coming year looks to be quite positive for High Bit Security," Goslin says. "That's because of the investment we have put into our sales presence."

Source: Adam Goslin, COO of High Bit Security
Writer: Jon Zemke

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

Hennessey Capital is helping a number of local business grow by helping fill the void for small business financing.

The Rochester-based company has provided a growing number of local companies with lines of credit as big as $1 million. The credit lines have provided those firms with working capital and allowed them to take advantage of a rebounding economy.

"It (Hennessey Capital's recent business) has been primarily with existing clients and helping them take advantage of opportunities," says Mike Semanco, president of Hennessey Capital.

Hennessey Capital specializes in accounts receivable and inventory financing. The 10-year-old company prides itself on offering "flexible lending options, including accounts receivable financing along with traditional asset-based lines of credit." Hennessey Capital's clients are often growing and in need of increased cash flow, but do not meet the requirements of many banks.

Among its clients are Control-Tec, an Allen Park-based provider of cloud-based telematic data acquisition, management, and analysis services to the automotive, heavy truck, and rail industries. It took advantage of a $1 million commercial finance line of credit from Hennessey Capital last year, which allowed it to grow.

"Our financing made it possible for them to take advantage of those opportunities," Semanco says.

Source: Mike Semanco, president of Hennessey Capital
Writer: Jon Zemke

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

The people at the Coil Group see a unique opportunity in the market when it comes to mobile app development.

The six-month-old firm sees its niche in providing both mobile apps and traditional marketing services to mid-size businesses, which are often flush enough to pay for both services but not familiar enough with the mobile app market. The Coil Group thinks it sets itself apart from the competition because many small mobile app firms are run by people who have more expertise in technology than marketing.

"It's kids who don't understand strategy but they know how to build an app," says Jonathan Pielak, co-founder and vice president of strategy for the Coil Group.

The Rochester-based firm is offering both. So far it has three people and a few dozen independent contractors to draw upon. The company, which is looking to move to either Royal Oak or Detroit, is looking to hire people in software development, design and marketing strategy.

The goal is to be in a permanent home with a staff of 20-25 people within the next two years.

"We want to keep it small," Pielak says "We want to keep it nimble."

Source: Jonathan Pielak, co-founder & vice president of strategy for the Coil Group
Writer: Jon Zemke

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

Aquatic Productions & Consulting is working to combine aquaculture (the farming of aquatic organisms) with hydroponics (growing plants in water with mineral solutions) into a new business sector called Aquaponics.

The start-up's technology helps naturally turn wastewater into both clean H20 and fertilizer through an aquaculture process. The products can then be used in hydroponics cultivation.

"Aquaponics uses wastewater as water for hydroponics," says Derek Byrd, co-founder of Aquatic Productions & Consulting. "You're turning wastewater into liquid fertilizer."

The Rochester Hills-based firm is in the home stretch of developing its technology, which would process and clean large quantities of wastewater. The four-person company expects to debut the technology platform by either the end of this year or early 2013.

"We're very close to commercial use," Byrd says. "We will be ready to commercialize it in a few months."

Source: Derek Byrd, co-founder of Aquatic Productions & Consulting
Writer: Jon Zemke

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

The entrepreneurial duo that brought you flipfrog has launched its own custom application business, Ambr Detroit.

"We're a web start-up that uses web standards to create awesome things," says Anthony Montalbano, co-founder of Ambr Detroit.

Montalbano and Brian Ritter started the company three months ago, creating custom mobile and Internet applications for businesses. The pair left their day jobs (software developers for Domino's) a year ago to launch flipfrog, a mobile app that allows users to share their calendars. The friends are still working on growing flipfrog but are also looking to stretch their entrepreneurial legs a bit more with Ambr Detroit.

"We want to have the flexibility to do what we want," Montalbano says. "We want to be in control of what we're doing. We have very high web standards."

The pair are currently working virtually from their homes in Rochester and Ann Arbor for now. Montalbano says they are currently looking to set up their first office in Detroit. Ambr Detroit has been so busy from the get-go that they are seeking a software developer now and want to grow to a staff of as many as half a dozen within its first year of operation. The partners are also open to striking up partnerships with clients who have a promising idea for a mobile or web app.

"If a good idea comes along we will offer a reduced rate for equity," Montalbano says. "That has already happened once."

Source: Anthony Montalbano, co-founder of Ambr Detroit
Writer: Jon Zemke

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

Adam Goslin used to work for an e-commerce company, managing IT and infrastructure development. Today he and his partners have leveraged that experience to start their own online security firm, High Bit Security.

The 2-year-old firm specializes in IT Security Testing (Penetration Testing), Social Engineering, obtaining and maintaining PCI-DSS or PA-DSS compliance. The trio that started as a side gig now employ eight people in Rochester. It plans to add a few more people before the end of the year.

"It got to the point I couldn't do it on my own so we decided to make a go of it," Goslin says.

He expects High Bit Security's growth to continue because more businesses are becoming aware of the need for IT security. Then there are the growing number of regulations in industries like healthcare and finance that are also driving the demand for IT security services. And then there are the companies that are just figuring out the importance of IT security.

"Quite frankly, many businesses don't know where the stand from a security perspective," Goslin says.

Source: Adam Goslin, vice president of operations for High Bit Security
Writer: Jon Zemke

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

Schools are playing a big part in Cirrus Group's recent growth spurt, allowing the Rochester Hills-based company to hire one person and open up two more job openings for computer programmers.

"We have seen phenomenal growth, especially in the last five years," Michael Garrett, COO of Cirrus Group. "We have grown organically with little marketing."

Cirrus Group, which turns 10-years-old in October, provides operational, financial and customer management software for child care facilities, community centers and school districts. The software allows these facilities to manage their enrollment, participant payments and communications, scheduling and government compliancy requirements including state and local subsidy payments and food care programs. The bottom line is a more streamlined system that allows for back-end business savings.

Cirrus Group has seen a lot of its growth from school districts, including landing some of the largest school districts in the country as customers. Garrett sees a lot of opportunity from schools as government budgets begin to loosen a little in the coming years.

"The big opportunity for us is in the before- and after-school programs," Garrett says.

Source: Michael Garrett, COO of Cirrus Group
Writer: Jon Zemke

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

Brand Labs has a new look with a new website, a rebranding and larger staff in Rochester.

The 6-year-old ecommerce company now employs 35 people and the occasional intern after hiring five new people over the last year. The new hires include a couple of software developers and a director of project management.

"We are growing but we have reached a point where we have the right people in place," says Dane Downer, vice president & director of professional services for Brand Labs.

Brand Labs was founded by Downer and Kevin Harman as an Internet start-up spinning out of the Harman family's plastics business, Harman Corp. Today it helps firms create and maintain an ecommerce platform. It is rebranding and upgrading this year so it better reflects the company and its core values.

"It represents everybody in our company, from the overall look and feel of the site to the illustrations," Downer says.

Brand Labs is also gearing up to launch its Ecommerce Economic Defense Initiative later this month. The program will give away two service grants, which are each worth $25,000 in Brand Labs services. Participants will be able to submit essays and videos for a chance to win.

Source: Dane Downer, vice president & director of professional services for Brand Labs
Writer: Jon Zemke

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

Gongos Research sees it future as being both more global and more mobile as the Auburn Hills-based consumer research firm continues its 20-year growth streak.

Gongos Research conducts consumer research for businesses, using polls, surveys and dialogs within consumer online research communities. That information helps its clients tailor ad campaigns and new products to the desires of their customers. Recently, the company began moving more of its business into research utilizing mobile devices, like smart phones.

Gongos Research has even done a study on the effectiveness of mobile research, which has gained it international attention. It's all part of the company's philosophy to leverage new technology to stay ahead of its competition and keep on its double-digit growth curve.

"There is going to be a slow migration of research moving to smart phones," says John Gongos, the founder & CEO of Gongos Research. "It's not there yet but its going to be there soon."

That sort of strategy has allowed Gongos Research to score 18 percent revenue growth in 2011, on top of the 30 percent growth it had the year before. The company has hired 10 people over the last year and now has a staff of 110 people and a handful of interns.

Gongos and his team have also taken notice and applauded Dan Gilbert's initiative to recruit some of the 2,000 tech workers recently laid off by Yahoo to Metro Detroit. Gongos Research has often fought to recruit out-of-town talent to its firm and appreciates Gilbert's effort.

"It's not just marketing but creating a greater awareness," says Susan Scarlet, a spokeswoman for Gongos Research.

Source: John Gongos, founder & CEO of Gongos Research and Susan Scarlet, spokeswoman for Gongos Research
Writer: Jon Zemke

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

The number of seed capital options for early entrepreneurs in Metro Detroit have risen significantly in recent years, prompting the Michigan Economic Development Corp to increase efforts to connect these entrepreneurs with cash funds.

The MEDC will host a series of events showcasing the seed-funding and business-building options available to Michigan's growing class of entrepreneurs. These free events, which kickoff next week, are designed to help entrepreneurs and start-ups find growth opportunities through the business services and financial support made available through MEDC-supported business incubators and accelerators across the Great Lakes State.

"Michigan is different than any other state because we truly fund an ecosystem," says Paula Sorrell, managing director of entrepreneurship for the Michigan Economic Development Corp.

The Metro Detroit meetings will take advantage of programs at Detroit-based Next Energy, along with Ann Arbor-based programs and seed capital funds like Accelerate Michigan Innovation Competition, Biotechnology Business Consultants, Michigan Angel Fund, Michigan Pre-Seed Capital Fund, Michigan Venture Capital Association.

"It's not unusual for a company to take advantage of 4-8 programs from the state to further their businesses," Sorrell says.

The 70-minute presentations based in Metro Detroit will be held on Monday and Tuesday at places like the University of Michigan, Eastern Michigan University, Wayne State University, Next Energy, the Macomb-OU INCubator and Automation Alley. For information, click here.

Source: Paula Sorrell, managing director of entrepreneurship for the Michigan Economic Development Corp
Writer: Jon Zemke

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