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Yessian Music scores film incentive for work on 'Northern Light'

Yessian Music has been around a while, 40 years to be exact. During that time it has ebbed and flowed with Metro Detroit's creative-based economy, making music for commercials and working with local musicians. Now it's moving into Michigan's 21st Century creative economy, taking on music work for films and television.

"TV commercials mostly," says Brian Yessian, chief creative officer of Yessian Music. "We have been getting more and more into film and TV."

That has allowed the Farmington Hills-based firm to expand its staff to 22 people, hiring two in the last year. It recently opened an office in Germany and expects to add another 1-2 jobs over the next year.

Yessian Music is also benefiting from a recent film tax credit awarded for Northern Light. The film showcases the history of Edmonton, Alberta from 12,000 years ago through 1928. The firm will handle the music composition and voice-over work on the film.

Northern Light recently received a $40,000 tax credit for the $100,000 it plans to spend on working in Michigan. So far this year, Michigan has approved 16 projects worth $55.7 million of film spending in-state. Those projects have received $23.2 million in incentives.

Source: Brian Yessian, chief creative officer of Yessian Music
Writer: Jon Zemke

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

Livio Radio expands Internet radio into auto, federal government markets

Livio Radio is growing its business by taking Internet radio to new places, namely your car.

The Ferndale-based company got its start when Jake Sigal turned his electronic tinkering into a hot-selling Internet radio in 2008. That attracted a venture capital investment and an expansion into the automotive realm.

"We've been focusing on car/Internet radio," says Nicole Yelland, brand manager for Livio Radio. "We'll be launching the Kit later this month, which allows you to manipulate the Livio car radio applications."

Livio Radio has leveraged the revenues and outside investment into a significant growth spurt. The business has recently hired two new engineers, bringing its staff to 15 em[;oyees and four interns. It plans to continue hiring as it expands.

Livio Radio has also been reaching out into activities indirectly tied to Internet radio. It recently host Social Media Day Detroit at Motor City Casino. It also has been able to place its products into the FCC's Open Technology Center for Employees in Washington, D.C.

"It allows them (federal FCC employees) to really interface with these products," Yelland says. "It's a museum for employees so they can tinker."

Source: Nicole Yelland, brand manager for Livio Radio
Writer: Jon Zemke

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

Green Light Go Publicity goes national with nice girl business approach

Janelle Rogers worked in the marketing and artist development end of the music industry for years and watched a number of the negative stereotypes come to life, such as labels taking advantage of musicians. That prompted her to start her own company in 2002, Green Light Go Publicity, based around a nice-girl approach.

"I really wanted to be that company that was based on honesty, integrity and compassion," says Rogers, owner of Green Light Go Publicity. "I wanted to set up a safe haven for bands. Sort of a beacon of hope that shows you can trust people in this industry."

Green Light Go Publicity's integrity-based business model has borne fruit since then. The Ferndale-based firm (it calls Paper Street Motors home) has grown to five people, including four hires over the last year. Business has grown 25-50 percent each year, and Rogers expects that to continue. She plans to hire two more publicists by the end of the year.

The firm represents a number of national acts, including The Handsome Family and Detroit-based Almost Free. Rogers says she has purposely kept her client roster small so her business doesn't over extend itself and makes sure the staff loves the music of the bands it represents. The company has also
recently launched an Internet-based marketing campaign based around a fresh website, social media, blogs, and integrating the client bands with all of these facets.

Source: Janelle Rogers, owner of Green Light Go Publicity
Writer: Jon Zemke

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

Ferndale's Paper Street Motors fills with 14 tenants, looks to open more spaces

Metro Detroit's new economy can often be found in aged shells of the old economy. Case in point: Paper Street Motors.

Paper Street Motors began when Andy Didorosi stumbled upon an old, empty warehouse a year ago in Ferndale, just southeast of its downtown. The 20-something didn't see the tattered relic of an old automotive industry, but a place for small businesses to take root and grow,
where they'd have the flexibility to get their feet under them financially without breaking the bank.

The Russell Industrial Center-style small business incubator at 1151 Jarvis filled up with a number of emerging businesses almost immediately. The 14 tenants in the 22,000-square-foot space include Green Light Go Music Publicity, a national band promoter. A year later, Didorosi is sprucing the place up both through its aesthetics and service offerings.

"Basically this place was a depressing battleship grey," Didorosi says. "Now we're completely redoing it."

Part of the Paper Street Motors (Paper Street is a reference to Fight Club) redesign is the installation of cubicles and a dynamic office environment. He is also looking at setting up additional locations in downtown Ferndale, Royal Oak, and Detroit, where members could utilize all of the spaces like a gym membership.

"So if you're a member of one then you're a member of all of them," he says.

Source: Andy Didorosi, president of Paper Street Motors
Writer: Jon Zemke

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

Stage 3 Productions diversifies workload to spur growth

Before the Great Recession hit, Stage 3 Productions relied almost exclusively on the automotive industry. Now that the downturn is starting to let up, the Warren-based studio has survived and grown, thanks to a newly diversified client base.

Stage 3 Productions relied on automotive photography and other media for at least 80 percent of its work just a few years ago. Today automotive accounts for 50 percent of its business. The rest is a mishmash of computer generated imagery, photography touchups, studio rentals for events, the defense industry, and even music videos.

"The automotive work has turned around in the last 2-3 months," says Art Bonus, business manager for Stage 3 Productions. "We're shooting some projects right now that we hope will turn into long-term things."

The 25-year-old company employs nine people, an intern, and draws upon a stable of about 20 independent contractors for some of its projects. Those include a recent video for a duet song between local rapper Sean Forbes and Academy Award winner and Dancing With The Stars contestant Marlee Matlin. Both entertainers are deaf and are behind the song "
Lets Mambo." It is also doing some defense work through TACOM.

Bonus expects this new variety of work, along with the rebound of the auto industry, to boost his business significantly this year. The studio hopes to add to its staff in 2011 and is even considering the possibility of expanding its space in Warren.

Source: Art Bonus, business manager for Stage 3 Productions
Writer: Jon Zemke

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

Restored Crofoot Ballroom doubles staffing to 50 people

It's been three years since the Crofoot Ballroom project began in earnest, creating one of the more stunning turnarounds and successes in Metro Detroit today.

Blair McGowan took a condemned historic building (the oldest commercial structure in Oakland County) in downtown Pontiac, a Cool Cities grant, and some ambition and turned them into one of the hottest new music venues in the region, on par with Detroit's St. Andrews Hall and the Blind Pig in Ann Arbor. The Crofoot Ballroom now has 50 employees (up from 25 when the project started) and three interns. He expects to hire even more people this year as he continues to expand his business.

"The word is out that the Crofoot is here and it's a beautiful venue," says McGowan, who also helped start St. Andrews Hall and Clutch Cargoes in Pontiac. "It has great sound and lights. People appreciate it."

The musical venue features rock bands, hip hop groups, electronic DJs, and a host of other music genres popular with today's youth. It is branching out and bringing more shows to places like the Compuware Arena in Plymouth, MOCAD and CAID in Detroit, and The Factory in Rochester. The Crofoot is also experiencing a good bit of growth from helping some smaller bands grow by letting them play on the building's smaller stage (the Pike Room), the main stage, and then onto bigger venues like the Royal Oak Music Theatre.

"We treated them right the first time so they keep coming back," McGowan says. He adds that the venue is also hosting other events, such as wedding receptions, bar mitzvahs, political gatherings, and business meetings. "We're just responding and it's working," McGowan says.

This isn't the first reincarnation for the building at the corner of Pike and Saginaw streets. In the 1830s the Crofoot survived a fire that decimated much of downtown. In the 1840s it was renovated by Michael E Crofoot, a prominent business man who helped build the 1880s-era Soldiers and Sailors Monument in downtown Detroit. That resulted in a Mansard roof and Victorian-style tower, which were eventually removed by World War II. The building nearly fell victim to 1970s urban renewal projects, but survived.

It was abandoned and on the city's demolition list as late as 2005 before McGowan saved it. He restored it much to its 1850s state, preserving a number of interior details such as old wood beams and brick walls. Today it serves as a place with an incredible amount of character in a downtown filled with architectural highlights.

Source: Blair McGowan, owner of the Crofoot Ballroom.
Writer: Jon Zemke

VC firm Beringea invests in Ferndale's Livio Radio

It looks like the signal between Beringea and Livio Radio is coming through crystal clear now that the Farmington Hills-based venture capital firm is investing in the high-tech radio maker from Ferndale.

The terms of the deal have not been disclosed, but the investment from Michigan's largest VC firm will allow Livio Radio to launch new products for its Internet radio line, while expanding sales and marketing efforts.

"What really attracted us to the company was its founder, Jake Sigal," says David Ruby, an associate with Beringea who helped broker the deal. "He had a lot of success with other companies before forming his own. It's really a bet on his talent and his ability to develop products for his company."

Sigal, 28, helped create the first USB turntable. He founded Livio Radio in 2008 when he created a simple radio that let users listen to popular Internet radio station Pandora. It now allows users to listen to NPR and 16,000 additional stations from around the world. That has allowed the firm to expand to 10 employees and five independent contractors. It recently added four positions and expects to add three more before the year is out.

"We're doing well," Sigal says. "We have retail distribution in the U.S. and Canada. Plus, we have a lot of stuff coming down the road."

Livio Radio recently launched an iPhone application, the Livio Car Internet Radio, that lets users access Internet radio stations during their ride. It's also working on apps for other smart phones and the iPad. More products are also cooking further down the road thanks to the recent infusion of venture capital.

That money comes at a time when venture capital, seed capital, and financing of just about any kind is hard to come by in the wake of the recent financial crisis. Sigal says he has been working for months to land Beringea's "smart money" (a combination of cash and business expertise) in his start-up, which has already raised a couple of rounds of seed capital from angel investors.

"I was successful because I was boot strapping all the way," Sigal says. "That's why I was successful -- by pitching a product and not a story."

Source: Jake Sigal, CEO of Livio Radio and
David Ruby, an associate with Beringea
Writer: Jon Zemke

Paxahau grows up, hires staff in time for Movement

Paxahau is showing its age a little bit these days, and that's a good thing for the electronic music promotion company.

The roots of Paxahau trace back to when its three founders began taking part in the electronic music raves of the 1990s. The company took over Movement (formerly the Detroit Electronic Music Festival) in 2006 and is now starting to really feel its oats. It's doing that by filling out a year's worth of electronic concert schedules and offering other products, such as music podcasts.

"The company has become a little more adult in that it has become more organized," says Jason Huvaere, president and co-founder of Paxahau. "We're growing up without growing old."

Its staff is growing, too. Paxahau employs six people on a full-time basis and two part-timers, which is up from a 4-4 split when we last checked in in late 2008. It also has 34 interns today. The company's payroll will grow to 150-200 strong for Movement this weekend, and there is plenty of room for growth after that.

"We have a strong desire to hire at least one more person," Huvaere says. "We have several people here who wear several hats. I'd love to have 1-2 more people by the end of the year."

The Ferndale-based firm is also looking to sink some roots into Detroit. The company plans to maintain its office on the north side of 8 Mile Road and to set up another for its founders in the greater downtown Detroit area in order to facilitate the Movement weekend and all of the summer festivals taking place in the city.

"This is just a wild time for us right now," Huvaere says. "We're really put to the test during these next few weeks."

Source: Jason Huvaere, president and co-founder of Paxahau
Writer: Jon Zemke

Music start-up Panache Group expands in the Midwest

Two types of musicians stood out to Jonas Pascua when he started the Panache Group five years ago. There were the really talented ones who had horrible business models and even worse customer service skills. And then there were the ones who weren't quite as talented but had great business acumen.

Pascua decided to bridge those two stereotypes with a new live music start-up. It provides software that makes it easy for customers to book acts and for the artists to give the best performance possible.

"No one has ever taken a strategic approach to creating a brand for live music," Pascua says.

Most artists who utilize Panache's services (Pascua is a violinist) are classically trained. Think string quartets and the like that can play everything from traditional classical music to Guns-N-Roses.

The Troy-based firm has been able to take over the Michigan market and move into Chicago and Cleveland over the last year. It is looking at expanding into Indiana this year. That has allowed Panache to expand to three employees and 180 musicians. It hopes to add one or two more employees and 80 musicians to its roster in 2010.

Source: Jonas Pascua, CEO and president of Panache Group
Writer: Jon Zemke

Beringea invests $1.25M in Eagle Rock, plans more deals

Beringea continues to make investments in growing businesses at a time when seed capital commands a high premium.

The Farmington Hills-based firm has made a $1.25 million investment in Eagle Rock Entertainment, which has offices in both North America and Europe. Beringea also is planning to spread more seed capital this year and soon.

"We have several deals with signed term sheets and we are expecting to close in the next few months," says Andrea Wilmes, director of marketing and communications for Beringea.

The venture capital firm has offices in London and Los Angeles. It commands tens of millions of dollars of investment cash in the U.S., Asia, and Europe.

Beringea employs 21 people. Its Farmington Hills office has eight staffers and a few summer interns.

Source: Andrea Wilmes, director of marketing and communications for Beringea
Writer: Jon Zemke

The Few Records capitalizes on Detroit music scene, creates jobs

Dominic Arellano's record label The Few Records isn't constrained by genres or labels or stereotypes. It's all about good music, hence its motto: "No genre, just good music. We are the few."

The label, based out of Detroit's Woodbridge neighborhood, has artists that specialize in hip-hop, electronic, jazz, indie rock, post-classical, and funk. The six artists run the gamut of music in Detroit's smorgasbord of talent.

"I think people listen to a lot more music these days in a lot of different genres," Arellano says.

The 2-year-old company has three employees and six artists. Arellano hopes to hire another two this year and sign a few more artists. He also plans to release a lot more music this year from artists like Silver Ghost and Will Sessions.

"We will be releasing quite a bit of music," Arellano says.

Source: Dominic Arellano, owner and founder of The Few Records
Writer: Jon Zemke

Ann Arbor's Ghostly International turns interns into employees

Too many companies bring on interns and let them go. Ann Arbor's Ghostly International turns them into employees.

Excerpt:

Interns could have a big future at Ghostly International. The electronic and ambient music label has recently brought on three interns and plans to hire another 1-2 this fall.

The Ann Arbor-based firm intends to use the three-month internships as a tryout of sorts for new employees. The interns who do well and make a spot for themselves on the Ghostly team will be brought on as full-time employees.

Read the rest of the story here.

Crofoot, 323East team up to create Rocketmonster contest

Rocket Monster. It sounds like the name of a Jim Henson Muppet or character from Where the Wild Things Are. Go beyond the surface and realize it's the newest place for musicians and video producers to show off their work.

Royal Oak-based 323East and Pontiac-based Crofoot have teamed up to create RocketMonster.com. The online film festival website lets local bands and filmmakers broadcast their music videos and compete for a grand prize of $500 cash, $500 in merchandise from Konquest, and a year of text message marketing service from Fyremobile.com.

The video creators can win by entering their work and promoting it virally using social media tools. Viewers vote for the 10 best films and website staff choose another 10 to make it to the final round on Oct. 4. The one with the most votes by Nov. 5 wins.

The idea is to spur more creativity and collaboration in the music and film scenes while promoting artists' work. The low cost of creating Internet entertainment is expected to open the contest up to a lot of up-and-coming bands and filmmakers.

323East and its companion company Ohm Creative Group have put these sorts of principals together in downtown Royal Oak for years. The Crofoot, an old blighted building in downtown Pontiac turned into Metro Detroit's up-and-coming concert venue, also works closely with these companies and employs many of the same principals.

Source: Jesse Cory, partner of 323East and owner of Ohm Creative Group
Writer: Jon Zemke

Ferndale's Livio plans to cash in on Internet radio

Internet surfers are increasingly jamming out to online radio stations like Pandora these days. Ferndale-based Livio wants this to continue, but also wants to free listeners from their computers.

The start-up just released an independent Internet radio for Pandora fans. The small box, about the size of a toaster, uses Wi-Fi or an Ethernet connection to tune into Pandora. That way users can enjoy commercial-free music without the ball-and-chain of a laptop or desktop computer.

"There is no AM or FM dial," says Greg Kim, sales and marketing manager for Livio. "It works completely off of wireless Internet."

The radios sells for $150 a pop. The guys at Livio think this market, with 69 million listeners and counting, has a lot of room to grow.

"We see ourselves taking off and doing well, especially with the ups and downs of satellite radio," Kim says.

When that happens it will mean growth for Livio's payroll. Right now the start-up employs 10 people and hopes to add more later this year. Staff will be on display June 12 at the official Livio Launch Party at D’Amatos, 222 S. Sherman St. in Royal Oak.

Source: Greg Kim, sales and marketing manager for Livio
Writer: Jon Zemke

Bongotones.com rings up new jobs in Royal Oak

A trio of recent college graduates is going all Silicon Valley on Metro Detroit with their new website, BongoTones.com.

Grads from the University of Michigan (David Pakhchanian and Nareg Sagherian) and the University of Toronto (Soheil Banifatemi) launched BongoTones last fall as an easier way for cell phone users to get more custom multimedia applications. They operate the company virtually, but are in the process of setting up a base in Royal Oak or even TechTown.

"We are inquiring about relocating closer to the city of Detroit, since most of the opportunities and our immediate connections are based there," Sagherian says.

The trio began the start-up as an easier way to get content to cell phones and to allow artists to build awareness of their work. Today its Beta platform delivers 15,000 user-generated ringtones with an easy search function. It also allows bands and musicians to convert their original music into ringtones.

All of this is available for free. The BongoTones trio is working with users, advertisers, and carriers to create revenue streams.

Source: Nareg Sagherian, co-founder of BongoTones
Writer: Jon Zemke
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