successes in each sector. For example: Peter Kim, CEO and vice chairman of LG Chem, one of the world’s largest producers of advanced chemicals and materials, recently stated, “Michigan is becoming a world capital for advanced batteries.” Eighty-five percent of all vehicle-related research happens in Michigan, approximately $1 billion in life sciences research is conducted in Michigan each year, and the U.S. Department of Defense has relocated all robotics research to Michigan.
2. Establish a local venture and/or angel fund community: While not yet the size of the equity investment communities on the East and West Coasts, the number of VC firms headquartered in Michigan (currently 16) has more than doubled over the past decade.
The funds are increasing in size, with a total of $1.1 billion under management. Since 2000, there have been 20 exits of Michigan-VC-backed companies, including such notable ones as Esperion Therapeutics, Arbortext, Aastrom Biosciences, and HandyLab.
The angel community is also growing, with six active angel groups in the state, and with the pending passage of the angel tax credit bill, their activity level should increase significantly. Nothing breeds success like success.
As more Michigan firms have successful exits, and as Michigan VCs provide meaningful returns to their LPs, we can expect accelerated growth in this community. (The data in the previous few paragraphs come from the Annual Report of the Michigan Venture Capital Association, which is leading the charge to strengthen the equity investment community in the state.)
3. Promote the University of Michigan (U-M) and Michigan State University (MSU): Let me start by saying that this statement is incomplete. While it is true that U-M, MSU, and Wayne State University (WSU) account for 95 percent of the research dollars brought to Michigan by public universities ($1.4 billion in 2008), most all of Michigan’s universities have programs focused on readying today’s students for tomorrow’s economic realities.
But focusing just on the aforementioned three universities (which have created the University Research Corridor), consider the impact they have on the state: a $14.5 billion impact on
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Author: Gerry Roston
Gerald Roston, Ph.D., P.E., has served as a senior executive for several technology-focused startups. Currently, he is serving as the CEO for InPore Technologies, Inc., a Michigan State University spinout bringing to market Silapore particles, a novel polymer additive that simultaneously improves strength, stiffness, durability, and fire retardancy of plastics. He also works as a consultant/coach, through Pair of Docs Consulting, with his activities focused on helping start-up companies succeed by assisting them with the development of technology and business plans, raising funding (both non-dilutive and equity), and managing business operations. Recent engagements have resulted in the raising of more than $10 million, primarily from state and federal programs. He also actively participates in business development activities, such as finding potential customers, partners, and investors.
During his career, Dr. Roston has worked with numerous companies, both large and small, managing R&D/product development activities, transitioning research concepts into products, identifying and pursuing investment opportunities, and marketing to early adopters. His experiences span a broad range of industries and technologies, including serving as the technical program manager for an emissions control program ($25M/yr budget) that successfully redesigned a line of locomotive products to meet EPA regulations; managing a startup which is developing a fully fiber-integrated, mid-infrared light source for military and telecommunications applications; managing the development of advanced signal processing software for use in mass-marketed digital audio products; and inventing and patenting a variety of robotic and automation products and technologies.
While working towards his doctoral degree at Carnegie Mellon University, Dr. Roston led a team of researchers that conceptualized and prototyped an integrated lunar lander/rover under grants from NASA, LLNL, and MDSSC. Previously, Dr. Roston had worked at NASA’s Jet Propulsion Laboratory, where he made major contributions to one the first robots used to assist surgical procedures and was a founding member of the NASA Mars Rover team.
Dr. Roston is currently the Vice President of Programs for the New Enterprise Forum (an Ann Arbor organization that assists technology-focused start-ups), sits on the NIH Clinical Neurophysiology, Devices and Neuroprosthetics SBIR/STTR Study Section, has more than two dozen publications, and four issued patents (with several pending).
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