Finance : Innovation & Job News

Schechter Wealth Strategies opened an office in New York City late last year as the Birmingham-based firm looked to capitalize on a growing economy.

The new office in Midtown Manhattan is the second satellite office for the 74 year-old wealth management firm, which also has an office in the Flint area. Schechter Wealth Strategies has notched close to 30-percent growth in the last two years. It has a goal of 15-percent growth this year and 65-percent growth by 2015.

"We felt that now is the right time with the economy on the upswing," says Stephen Blocki, COO of Schechter Wealth Strategies.

The New York City office is staffed by one person, who is one of the company's five new hires over the last year. Blocki was recently brought on as the company's new COO and Jimmy King (of the University of Michigan's Fab Five fame) as the new vice president of business development. The firm now employs 30 people.

Robert Langer is the managing director of Schechter Wealth Strategies' New York Office. Blocki says the firm decided to make the investment in a New York office as a way to replicate the firm's business model in new territory.

"Our goal is to grow into any market that has access to a network of high-net-worth individuals," Blocki says.

Source: Stephen Blocki, COO of Schechter Wealth Strategies
Writer: Jon Zemke

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

Genisys Credit Union is riding high on some sizable growth numbers. The Auburn Hills-based financial institution has watched its membership, loan growth and employee base jump in the last year.

Membership for the credit union is up 7 percent, reaching a total of 138,000 members in Metro Detroit. That has allowed the credit union to hire about a dozen people, rounding out its staff to nearly 350 people. Its loan growth is also up several percentage points and is on track to be up between 10 and 11 percent in 2013.

"That's one of our best years ever," says Jackie Buchanan, president & CEO of Genisys Credit Union.

Genisys Credit Union got its start in 1936 as the credit union for workers of General Motors Truck & Coach and Burroughs Corp. It merged with three other credit unions five years ago to create Genisys Credit Union.

Since then the company has focused on growing its membership (credit unions are member-owned) by focusing on customer service. It doesn't try to push certain products on its members, instead focusing on finding ways to save them money in financial transactions. It has also been building out its technology to make banking easier for its membership.

"We have some really good technology," Buchanan says. "We have a really robust online platform and our mobile banking platform. We're adding to that all the time."

Source: Jackie Buchanan, president & CEO of Genisys Credit Union
Writer: Jon Zemke

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

The Automation Alley Seed Fund has struck again, investing $150,000 into TerraYebo.

This is the Troy-based business accelerator's second six-figure investment in the micro-funding website start-up. It invested $100,000 in the Madison Heights-based firm earlier this year.

"Our investment committee liked their entrepreneurial team," says Thomas Anderson, senior director for Automation Alley. "We thought they were smart and focused."

TerraYebo is the company behind MyInchofTheEarth.com, a micro-funding platform for nonprofits. The website enables users to claim any virtual inch of the earth or ocean, share why that place is important, and choose a nonprofit that either supports the preservation of that place or a nonprofit that does good in the world. The idea is to let people's life experiences at different institutions (such as their alma mater) or places (a national park) prompt them to give small amounts to non-profits that fund them.

The 3-year-old company has signed up a number of name-brand institutions for MyInchofTheEarth.com, including The National Park Foundation, CURE International, VH1 Save the Music, Veterans of Foreign War Foundation and The Pink Fund. TerraYebo's team of four people, it has hired two people so far this year, plans to use the new seed capital to continue the build out of its website and developing its market.

"We want to continue to focus on the user experience of our website," says Dan Glisky, president of TerraYebo. "That is first and foremost."

The Automation Alley Seed Fund invests in early-stage start-ups with high growth ceilings. Investments range from $50,000 to $300,000. The fund is similar to the Michigan Pre-Seed Capital Fund, which is managed by Ann Arbor SPARK.

The Automation Alley Seed Fund got its start in 2004 and has received $6 million in funding, primarily from the state of Michigan. It has invested $8 million over that time, including a couple of start-ups that have either repaid the loans, cashed out the equity in the investment or have been acquired. One start-up, University of Michigan spin-out CieloMed Solutions, was acquired last year and provided a healthy return to the Automation Alley Seed Fund.

Source: Thomas Anderson, senior director for Automation Alley; Dan Glisky, president of TerraYebo and Michele Favoretto, CEO of TerraYebo
Writer: Jon Zemke

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

Michigan First Credit Union is looking for a few good employees, 14 right now to be exact.

The Lathrup Village-based financial institution is looking for everything from tellers to human resources professionals to add to its staff of 225 people. However, technology pros are in especially high demand for the credit union. About a third of its new positions have some sort of tech angle, such as software developer or IT professional.

The 87-year-old credit union tries quite hard not to act its nearly century-old age, employing the latest and greatest technology into its systems. A large part of its business plan is to stay ahead of tech trends to attract younger clientele who value the ease and access to their finances that such technology can provide.

"We're in the process of testing mobile debit cards," says Linda Douglas, vice president of marketing for Michigan First Credit Union. "We are always looking to stay ahead of the curve in our mobile and online banking options."

Michigan First Credit Union has 90,000 members and $640 million in assets. It adds more than 1,000 new members each month. It has also hired 70 people so far this year.

Source: Linda Douglas, vice president of marketing for Michigan First Credit Union
Writer: Jon Zemke

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

When Swaminathan Ramesh sees people throwing away plastic he sees waste of a different kind. Wasted energy and resources. It's a big reason he started EcoFuel Technologies last year.

"I wanted to do something with waste plastics because I see them everywhere," Ramesh says. "And I have a background in the polymer chemistry."

The Troy-based start-up is working on technology that turns garbage plastic into diesel fuel. It currently has a prototype that can handle 100 pounds of plastic, turning every 10 pounds of plastic into one gallon of diesel fuel. Ramesh claims that his company's technology produces three times more energy than its competitors.

"We are unique because we can actually make money," Ramesh says.

EcoFuel Technologies and its team of five people recently landed five figures' worth of financing from the Michigan Microloan Fund Program to help push forward the development of its prototype. The company hopes to land $500,000 in seed capital this year to build a machine that can handle 2,000 pounds of plastic a day and then $1.5 million in a second round of seed capital to build a machine that handles 10,000 pounds of plastic each day.

"They (investors) want to see us perform the same way at a larger scale," Ramesh says.

Source: Swaminathan Ramesh, founder & president of EcoFuel Technologies
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.

Ren Carlton has a goal for Dynamic Advisory Solutions. He wants the Troy-based firm to become the No. 1 provider of CFO services in the U.S.

"Our goal is to go national, instead of relying on work predominantly in Metro Detroit," says Carlton, president & CEO of Dynamic Advisory Solutions.

The 13-year-old company has been signing up more mass distribution partners for its services. It currently has two out-of-state affiliates in Florida and North Carolina. That sort of expansion has allowed the company to hire 10 people over the last year, growing its staff to 25 employees and the occasional intern.

Dynamic Advisory Solutions has watched its revenue grow by 40 percent over the last year as it lays the ground work to go national. It is now aiming for triple-digit growth in 2013 as it aims to sign up more distribution partners.

"I'd like to have more affiliate partners and more distribution partners," Carlton says. "We're looking to have 15 inside and outside of Michigan."

Source: Ren Carlton, president & CEO of Dynamic Advisory Solutions
Writer: Jon Zemke

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

Lotus Bank will open its second branch in Farmington Hills later this month, a move that will help the Novi-based bank expand its staff by seven people in 2013.

"We needed more retail locations and space from a personnel standpoint," says Neal Searle, president & CEO of Lotus Bank.

The 6-year-old bank has hired three people in the last 30 days and now employs 18. Another four employees will be added to the payroll when the Farmington Hills branch opens within two weeks.

Lotus Bank is a full-service bank with $82 million in assets and $71 million in deposits. It grew by 17 percent in 2012 and expects to continue expanding its reach in Metro Detroit this year. The bank, which is 80-percent owned by Indian-Americans, has a five-year strategic plan of opening one new branch annually and its sights are set on suburbs like Troy, which has a large Indian-American population, in the near term.

"This is an opportunity to take it to the next level," Searle says.

Source: Neal Searle, president & CEO of Lotus Bank
Writer: Jon Zemke

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

Billhighway's expansion continued through 2012 as the Troy-based tech firm hired more than a dozen people and continued to add more employees in the first month of this year.

The 13-year-old company hired 15 people in 2012 for a broad range of jobs, including software development, sales and accounting. It recently hired a new sales engineer and a company team player that handles things like event coordination. Sources declined to name a specific number of employees but said the total number is between 50-100 people.

"We continue to hire people," says John Schelske, COO of Billhighway. "We have brought people in from a couple of different areas. It's a pretty diverse range."

Billhighway got its start when its founder, Vince Thomas, was trying to divide bills between himself and friends while attending Eastern Michigan University. He created software that now helps organizations allocate expenses for everything from dues to dinner costs.

"We have grown through both organic growth through existing clients and some new clients as well," Schelske says.

One of the drivers of that growth is a product that includes payment processing, online banking and financial accounting. It has proven to be popular with non-profits and membership organizations, Schelske adds.

Source: John Schelske, COO of Billhighway
Writer: Jon Zemke

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

RetailCapital, a relatively new finance firm, is reinventing the financing options for small businesses in Metro Detroit.

Lending options for small businesses largely dried up in the wake of the Great Recession, leaving mom-and-pop companies with few, if any, options to replace broken equipment or fund expansions. RetailCapital is filling that gap by offering financing options (with an average advance of about $20,000) where the principal is paid back through a portion of that business' credit card receipts.

"We are essentially factoring future receivables for mom-and-pop businesses," says Erik Stamell, managing director of RetailCapital.

The 2-year-old business has grown to 60 employees and an intern after hiring 40 new people over the last year. The firm closed 140 deals in the last month from not only Metro Detroit but also across the U.S. It expects to continue hiring as its business revenues climb.

"Our business has grown tremendously," Stamell says. "The industry has grown exponentially as well."

Source: Erik Stamell, managing director of RetailCapital
Writer: Jon Zemke

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

More tech and employment opportunities are coming to Michigan First Credit Union this year. The Lathrup Village-based financial institution has hired 10 people and is adding more mobile banking options for its growing member base.

The 86-year-old credit union has expanded its staff by 10 people over the last year, rounding out to 229 people and a few interns. Its newest hires include a digital marketing manager and social media professional.

Michigan First Credit Union has also expanded its mobile banking options. The credit union began offering banking options for smartphones in 2010 and has recently added a new feature that allows mobile deposit for iPhone, iPad and Android mobile devices. Users can take a photo of a check with their device and deposit it directly into their checking or savings account.

"A lot of people have been doing their banking through smart phones and other mobile devices so we thought it was very important to be in that space," says Linda Douglas, vice president of marketing for Michigan First Credit Union. She adds that these sort of options are popular with young, tech-savvy members the credit union is trying to attract.

Michigan First Credit Union adds about 1,000 to 1,500 new members each month in recent years. It now has a membership of 87,000 individuals and businesses in Metro Detroit's tri-county area, along with $630 million in assets.

Source: Linda Douglas, vice president of marketing for Michigan First Credit Union
Writer: Jon Zemke

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

North American Bancard enjoyed quadruple-digit growth in the last year and the Troy-based electronic payment processing firm attributes much of the expansion to PayAnywhere, its mobile payment arm.

"It's a huge initiative for our company," sys Marc Gardner, president & CEO of North American Bancard. "It's growing in a very accelerated fashion."

Fast enough that North American Bancard has hired 130 people over the last year, many of them in the PayAnywhere division. Gardner says his firm is hiring mobile software engineers and professionals as fast as they can find them, adding if 20 of those sorts of techies were laid-off tomorrow from another employer his company would hire all of them.

"We are constantly looking for mobile platform engineers," Gardner says.

PayAnywhere offers mobile point of sale solutions. It recently launch its nationwide retail channel for some of the country's biggest corporations such as Wal-Mart, OfficeMax, Sam’s Club and The Home Depot. Gardner sees a tremendous room for growth in mobile payments as smaller businesses look to harness the technology, even service-based businesses like landscaping and car-repair firms, make the switch from checks to mobile payments to accelerate their cash flow.

"They don't want to wait for the check in the mail," Gardner says. "They want to be paid now."

Source: Marc Gardner, president & CEO of North American Bancard
Writer: Jon Zemke

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

Ron Jasgur and two of his partners started Woodward Asset Capital in 2007 when the real-estate market began to implode. Their idea was to help big banks handle bulk foreclosures. It worked. The Southfield-based company has since leveraged its success to evolve to a software firm in recent years.

Woodward Asset Capital found solid success with its original business model in its first years. However, it's owners saw more opportunities to create efficiencies for banks handling those foreclosures. The company created software that streamlined the foreclosure process, such as as complying with local ordinances and preventing fraud.

"We have gone from a bricks-and-mortar acquisition company to an online technology company in less than five years," says Jasgur, president of Woodward Asset Capital. "Our vendor relations and clients are the same  but we serve them differently."

That transition has allowed Woodward Asset Capital to grow its revenue by 30 percent and hire three people in customer service. It now employs a staff of eight and is looking to hire two more software coders.

Source: Ron Jasquar, president of Woodward Asset Capital
Writer: Jon Zemke

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

Level One Bank is becoming one of the largest banks in Oakland County now that it has acquired Oxford Bank, putting it just behind the likes of Flagstar Bank, Talmer Bank & Trust and Sterling Bank & Trust.

Level One Bank now has combined assets of approximately $750 million and 15 bank branches. It opened a new branch in Bloomfield Township earlier this year and has hired 30 people before the acquisition. The newer, bigger Level One Bank now employs 195 people. The Farmington Hills-based bank now has branches in both southern and northern Oakland County after the acquisition.

"Oakland County is the eighth wealthiest county with more than 1 million people," says Dave Walker, executive vice president & CFO of Level One Bank. "Most of the rest of those counties are on the coasts."

Level One Bank is also moving into a new office in Farmington Hills overlooking I-696. The new space clocks in at 65,000 square feet of space, which nearly triple the size of it current offices. Walker expects to occupy about half of that space right away and use the rest of it to accommodate growth in the next few years.

Source: Dave Walker, executive vice president & CFO of Level One Bank
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.