Technological change is not a tide that lifts all boats in our economy. The truth is that it’s more like a tsunami. It threatens to overturn all the boats and drown their occupants, sparing only the lucky few who have already reached safety in the hills. That’s the kind of admission you won’t often see … Continue reading “The Missing Middle Class: Jobs in the Second Machine Age”
Category: Detroit
Lessons From Pat McGovern for Entrepreneurs
Very sad about the passing of Pat McGovern, the Chairman of International Data Group (IDG). He was my mentor and friend for over 30 years, and a giant in the technology, media, market research, and venture capital fields. Today, I took some time to reflect on what Pat taught me as an entrepreneur and investor. … Continue reading “Lessons From Pat McGovern for Entrepreneurs”
Advanced Engine Maker EcoMotors Aquires Katech
When we caught up with Allen Park, MI-based EcoMotors earlier this month, Amit Soman, the company’s president and chief operating officer, told us to expect an acquisition soon. That came to fruition this week when EcoMotors announced it has acquired Katech, a Clinton Township, MI-based manufacturing company known for developing advanced engines and powertrains. The … Continue reading “Advanced Engine Maker EcoMotors Aquires Katech”
Sakti3 Named Affiliate of Joint Center for Energy Research Storage
Sakti3, an Ann Arbor advanced battery startup named as one of the world’s 50 most innovative companies in 2012 by the MIT Technology Review, has become affiliated with the U.S. Department of Energy’s Joint Center for Energy Storage Research (JCESR). JCESR, which is run by Argonne National Lab, is an important research organization that unites … Continue reading “Sakti3 Named Affiliate of Joint Center for Energy Research Storage”
Mendelson Urges Detroit Startup Community to Reach Out, Collaborate
When Jason Mendelson came to Ann Arbor in 2005, he was armed with a list of qualities he thought a city needed in order to foster an entrepreneurial culture: A creative class of people (especially on the technical side); strong universities spinning off people and ideas; capital; management talent; an engaged community with a desire … Continue reading “Mendelson Urges Detroit Startup Community to Reach Out, Collaborate”
Get the Heck Out of the Building in Founder’s School: Part 2
With a ~$2 billion endowment the Kauffman Foundation is the largest non-profit focused on entrepreneurship in the world. Giving away $80 million to every year (~$25 million to entrepreneurial causes) makes Kauffman the dominant player in the entrepreneurship space. Kauffman launched Founders School – a new education series to help entrepreneurs develop their businesses during … Continue reading “Get the Heck Out of the Building in Founder’s School: Part 2”
Amplifinity Garners $2,661,998 New Financing Round
Feed Type Link http://www.venturedeal.com/Search/SearchResultTransactionDetail.aspx?TransactionId=9869615b-5b44-4838-b2b3-6d6994b273a6 Date 3/18/2014 Company Name Amplifinity Mailing Address 912 North Main Street Ann Arbor, MI 48104 USA Company Description Building a consumer-to-consumer marketing channel takes two things: Knowing what motivates advocates to talk about your brand, and the technology to make the channel effective and measureable; Amplifinity offers both. Website http://www.amplifinity.com Transaction … Continue reading “Amplifinity Garners $2,661,998 New Financing Round”
See You Later at Xconomy Xchange: Nurturing a Startup Ecosystem
Start off your St. Paddy’s Day celebration right with our Xconomy Xchange event today, featuring Jason Mendelson on sustaining and nurturing a startup ecosystem. Mendelson is the managing director and co-founder of the Foundry Group, a Boulder, CO-based venture fund that invests in early-stage information technology, Internet, and software startups. He’s also a metro Detroit … Continue reading “See You Later at Xconomy Xchange: Nurturing a Startup Ecosystem”
Xconomy Xchange: Meet Panelists Carla Walker-Miller and Moses Lee
On Monday, Xconomy is hosting an event featuring Jason Mendelson, a metro Detroit native and a University of Michigan alum who went on to co-found the Foundry Group, a highly successful venture fund based in Boulder, CO. Mendelson will discuss how to sustain and nurture a startup ecosystem. After his chat, a panel of local … Continue reading “Xconomy Xchange: Meet Panelists Carla Walker-Miller and Moses Lee”
For Products, Technology Still Matters
Popular media has seriously overshot on the relative importance of marketing and design versus technology for product companies. Just spend some time perusing the usual outlets and you’ll quickly forget that startups employ technologists. What’s scary is it’s not just media—the rest of the world is starting to follow. The number of companies, raising very … Continue reading “For Products, Technology Still Matters”
From Cosimo to Cosmos: The Medici Effect in Culture and Technology
Deep inside the Palazzo Vecchio, the tall stone fortress that has served as the seat of government power in Florence since the 14th century, there’s a room called the Sala delle Carte Geografiche, the Hall of Maps. The cabinets lining the walls, which once held scientific instruments and other precious items, are decorated with 53 … Continue reading “From Cosimo to Cosmos: The Medici Effect in Culture and Technology”
U-M Students’ Books to Teach Kids About Steve Jobs, Entrepreneurship
Sara Abraham and Reda Jaber created a bucket list of things they wanted to do as a couple, and near the top of that list was writing a children’s book. They both attend the University of Michigan; she’s finishing up a bachelor’s degree in Global Health on her way to becoming a teacher, and he’s … Continue reading “U-M Students’ Books to Teach Kids About Steve Jobs, Entrepreneurship”
Sen Sigma Out to Battle Bad Welds, Save Manufacturers Millions
Defect formation, Jyoti Mazumder says, is a huge problem in manufacturing. According to Mazumder, a professor of mechanical engineering and materials science at the University of Michigan and founder of Sen Sigma, hundreds of millions of dollars are wasted every year on defective products in the United States, with a big chunk of those defects occurring … Continue reading “Sen Sigma Out to Battle Bad Welds, Save Manufacturers Millions”
Why Companies Are Not Startups
In the last few years we’ve recognized that a startup is not a smaller version of a large company. We’re now learning that companies are not larger versions of startups. There’s been lots written about how companies need to be more innovative, but very little on what stops them from doing so. Companies looking to … Continue reading “Why Companies Are Not Startups”
Detroit’s Backstitch Offers Users a Way to Sift Through the Web’s Noise
If you’re like me, you spend your days toggling back and forth between a dozen or so tabs crowding the top of your computer screen: One for e-mail, a few for social media, a few for news, one to monitor college basketball in anticipation of the NCAA tournament, and one for celebrity gossip for when … Continue reading “Detroit’s Backstitch Offers Users a Way to Sift Through the Web’s Noise”
MSU Innovation Celebration
The Michigan State University Innovation Center hosts this fourth annual celebration. The event includes the announcement of MSU’s Innovator of the Year, Innovation of the Year, and the MSU Technology Transfer Achievement Award. The event also showcases the inventions and technologies developed in campus labs. For details and registration, click here.
CoFoundersLab Matchup Detroit
University of Michigan’s Zell Lurie Institute in partnership with CoFoundersLab launched the Michigan Founder Finder portal last August. Now organizers will be in Detroit to host a live matchmaking event, bringing together like-minded startup founders, advisers, and interns interested in launching a company. For more information, click here.
Five Ways To Avoid Losing Money as An Angel Investor
I have an angel investor friend—let’s call this friend “Alex.” Alex has great deal flow and works hard to pick the best opportunities for investment. Alex has been frustrated over the past several years, however, because she doesn’t seem to be making any money. This is despite solid operational performance by several of the companies … Continue reading “Five Ways To Avoid Losing Money as An Angel Investor”
MI Social Entrepreneurship Challenge Offers Prizes, Pitch Opportunities
Michigan Corps, a non-profit organization supporting social innovation, and the Michigan Economic Development Corporation yesterday kicked off the 2014 Michigan Social Entrepreneurship Challenge, a statewide business competition with $60,000 in prizes—and more—on the line. It’s the competition’s second year, and Michigan Corps’ executive director Elizabeth Garlow says this time around, there are “tons” of new … Continue reading “MI Social Entrepreneurship Challenge Offers Prizes, Pitch Opportunities”
Engine Maker EcoMotors Scores Second $200M Chinese Partnership
Allen Park, MI-based EcoMotors said this week that it has formed a joint venture with First Auto Works Jingye Engine Company (FAWJY) to develop, manufacture, service, and sell its advanced engine technology in China. Amit Soman, EcoMotors’ president and chief operating officer, says the deal is worth more than $200 million, and construction will start … Continue reading “Engine Maker EcoMotors Scores Second $200M Chinese Partnership”
Advanced Battery Concepts Lands $374,475 New Round
Feed Type Link http://www.venturedeal.com/Search/SearchResultTransactionDetail.aspx?TransactionId=d33ad362-ddb5-454b-9b0f-1949fe503ccf Date 3/6/2014 Company Name Advanced Battery Concepts Mailing Address 4520 E. Ashman Road Midland, MI 48642 Company Description Advanced Battery Concepts, LLC, has developed battery electrode technology, branded GreenSeal, which enables dramatic improvements in battery performance while lowering costs. Website http://www.advancedbatteryconcepts.com Transaction Type Venture Equity Transaction Amount $374,475 Transaction Round Undisclosed … Continue reading “Advanced Battery Concepts Lands $374,475 New Round”
Farewell, Xconomy Readers. I’m Going to Climb a New Mountain
This is my last week on the job at Xconomy. After almost six years, I’m moving on. I’m going to finish writing a biography of Leroy Hood, the pioneer of high-speed DNA sequencing and genomic-based personalized medicine. And then I’ll see what’s next. When I first joined Xconomy, it had been founded 10 months earlier … Continue reading “Farewell, Xconomy Readers. I’m Going to Climb a New Mountain”
4 Ways to Stop Social Media from Blowing Up In Your Startup’s Face
Social media offers startups a powerful platform to cost-effectively market their products and services, get their brand recognized, and engage with a wide audience of customers. Yet social media also throws up multiple risks. Many of these risks—be they security and privacy risks, compliance risks, or reputational risks—are not new. However, companies have become more … Continue reading “4 Ways to Stop Social Media from Blowing Up In Your Startup’s Face”
Will Snyder’s Proposed Immigration Reforms Boost Entrepreneurship?
During his State of the State address in January, Michigan governor Rick Snyder, who likes to refer to himself as “the most pro-immigration governor in America,” unveiled a bold plan to revitalize beleaguered Detroit—and to boost economic growth in the whole state. He called on the federal government to grant Michigan 50,000 visas over five … Continue reading “Will Snyder’s Proposed Immigration Reforms Boost Entrepreneurship?”
Supreme Court Should Scale Back Securities Class Actions
Class-action lawsuits against publicly traded companies, which ironically are meant to protect investors like me, have officially jumped the shark. That was the only conclusion I could come to after learning last week that one firm alone, Levi & Korsinsky, is suing not one, but three companies I invest in—Aegerion Pharmaceuticals (NASDAQ: [[ticker:AEGR]]), Sarepta Therapeutics … Continue reading “Supreme Court Should Scale Back Securities Class Actions”
Why It’s Time to Retire the Term “Life Sciences”
I originally thought about titling this piece “Life Sciences, Biosciences, BioPharma, Biotech, and Healthcare: What’s the Difference?” but that was simply too unwieldy. Many people use these terms interchangeably without thinking about what they specifically refer to, and which types of jobs and activities they encompass. Are they all the same thing? I don’t think … Continue reading “Why It’s Time to Retire the Term “Life Sciences””
Xconomy Xchange: Meet Panelist Brentt Baltimore
On March 17, Xconomy is hosting an event featuring Jason Mendelson, a metro Detroit native and a University of Michigan alum who went on to co-found the Foundry Group, a highly successful venture fund based in Boulder, CO. Mendelson also is a talented musician. He was the lead vocalist in the music video spoof that … Continue reading “Xconomy Xchange: Meet Panelist Brentt Baltimore”
PacBio, the Post-Hype Sleeper of Genomics
Hype and biotech go hand in hand, but genomics takes exaggeration up a few extra notches. When genomics companies fail, they tend to crash especially hard. Yet every now and then, a company that’s monumentally hyped falls flat and then figures out a way to become a solid, if not spectacular, player. That’s the storyline … Continue reading “PacBio, the Post-Hype Sleeper of Genomics”
Roundup: Google Demo Day, Merit Network, U-M, Plymouth Ventures
Here’s a look at some of the news from around Michigan’s innovation ecosystem that you might have missed: —Google Demo Day, where seven Detroit startups pitched to win a chance to present their business ideas to a group of Google executives during an April trip to Mountain View, CA, was held last week at Grand … Continue reading “Roundup: Google Demo Day, Merit Network, U-M, Plymouth Ventures”
Bob Doyle and the Magic of Merlin, the First Mobile Game
If you sat down to make a list of the key turning points in the history of mobile computing, you’d definitely have to include 2007, the year Apple released the iPhone. Its glowing touchscreen became a personalized portal to our friends, to the Web, and to hundreds of thousands of games and other specialized apps. … Continue reading “Bob Doyle and the Magic of Merlin, the First Mobile Game”
How to Tell When a Startup Is Ready for Investment
Since 2005 startup accelerators have provided cohorts of startups with mentoring, pitch practice, and product focus. However, accelerator Demo Days are a combination of graduation ceremony and pitch contest, with the uncomfortable feel of a swimsuit competition. Other than “I’ll know it when I see it”, there’s no formal way for an investor attending Demo … Continue reading “How to Tell When a Startup Is Ready for Investment”
A New Era for Microsoft: Overcoming the Innovator’s Dilemma
I don’t know if Microsoft will be a $300 billion company 50 years from now, but I do know one thing: selecting Satya Nadella as CEO gives it a better chance than some of the names that were discussed in the news since Steve Ballmer announced he would be stepping down. The reason is simple: … Continue reading “A New Era for Microsoft: Overcoming the Innovator’s Dilemma”
Ann Arbor’s Merit: Using e-Commerce to Send Kids to College
David Merritt’s e-mail sign-off reads “stay remarkable,” and it’s clear he takes that motto seriously. The son of parents dedicated to helping others—his father is the pastor of a Detroit church—Merritt, a former captain of the University of Michigan men’s basketball team, says he’s always been conscious of young people’s needs. “Especially kids in the … Continue reading “Ann Arbor’s Merit: Using e-Commerce to Send Kids to College”
Encore Entrepreneurs: They’re Older and They Have More Insurance
OK, I want you to take a quick test and answer the question with the first thing that comes to mind: What does a “start-up entrepreneur” look like? OK, do you have a picture in your mind? If you are like most people, I bet your first thought was someone who looks suspiciously like a … Continue reading “Encore Entrepreneurs: They’re Older and They Have More Insurance”
U-M, Ohio State Partner in $148M Lightweight Materials Effort
In a speech today, President Obama will detail plans for the $148 million American Lightweight Materials Manufacturing Innovation Institute (ALMMII), a new high-tech manufacturing research facility that will be located outside of Detroit in Canton, MI. The institute is set to open this spring; officials say it’s expected to bring 10,000 jobs to the Midwest … Continue reading “U-M, Ohio State Partner in $148M Lightweight Materials Effort”
An Executive’s Guide to Not Screwing Up Partnerships
Everyone loves partnerships. These fancy sounding deals are also often called “strategic alliances,” “co-marketing agreements,” “channel sales,” or in Continental Europe, “a coöperation” (sounds quite nice and German, doesn’t it?). Partnerships are prestigious, and they whisper to you the sweet possibilities of easy revenue. In Silicon Valley, they are generally run with lots of fanfare … Continue reading “An Executive’s Guide to Not Screwing Up Partnerships”
Larky Obtains $1,014,709 New Financing Round
Feed Type Link http://www.venturedeal.com/Search/SearchResultTransactionDetail.aspx?TransactionId=e6f88e57-55ca-4743-b0c1-c906fbf0e07f Date 2/25/2014 Company Name Larky Mailing Address 1310 Grainger Ann Arbor, MI 48104 Company Description Larky’s application helps consumers manage discounts from retailers, membership organizations increase loyalty, and merchants generate business. Website http://www.larky.com Transaction Type Venture Equity Transaction Amount $1,014,709 Transaction Round Undisclosed Proceeds Purposes Proceeds purposes were not disclosed. SEC … Continue reading “Larky Obtains $1,014,709 New Financing Round”
The Inside Story: What CISOs Know About Cybersecurity
In the wake of aggressive press coverage of recent major breaches at companies from Target to Neiman Marcus, cybersecurity has finally moved out of the shadows to become a top-of-mind issue at major enterprises. The new focus is dramatically changing the landscape for security leaders and business executives, who no longer struggle to convince their … Continue reading “The Inside Story: What CISOs Know About Cybersecurity”
Ingress, Google, and Linda Besh: How a Mobile Game Augments Reality
When I first met Portalyst, she was at the Detroit Public Library, surrounded by her fellow agents in Resistance Detroit. There were BelaWren and Commander Lobo, a bookish married couple from Royal Oak, MI, and B33rhun73r (Beerhunter), a software developer so named for his appreciation of craft brewing. They were all glued to their phones, … Continue reading “Ingress, Google, and Linda Besh: How a Mobile Game Augments Reality”
Hiring in Biotech is Tricky. But Algorithms Won’t Save the Day
People who appreciate baseball stats agree: Jonny Gomes of the Boston Red Sox is a below-average player. Yet, if you pay attention to his intangibles, he looks better. Even with lousy performance data, he was credited with playing a key role last fall in helping his team win the World Series. The Gomes example reminds … Continue reading “Hiring in Biotech is Tricky. But Algorithms Won’t Save the Day”
“All Hat, Ton of Cattle…”
Had a remarkable day Friday in Houston crawling around the Texas Medical Center. I was in town to speak at the Xconomy Healthcare Summit—an incredible roster of speakers and attendees, I must say. As Ron DePinho, president of MD Anderson Cancer Center, characterized, this part of Houston is as if someone put the Kendall Square … Continue reading ““All Hat, Ton of Cattle…””
WhatsApp, $19 Billion, and the Unreal Economy of Silicon Valley
Facebook announced Wednesday that it will acquire mobile messaging provider WhatsApp, a five-year-old startup in Santa Clara, CA, for $4 billion in cash, $12 billion in stock, and another $3 billion in restricted stock units. So, $19 billion when all’s said and done. The deal is eyebrow-raising on any number of levels. What made WhatsApp … Continue reading “WhatsApp, $19 Billion, and the Unreal Economy of Silicon Valley”
New Economy Initiative Scores $33M in New Funding
Nine of the New Economy Initiative’s (NEI) ten original funders have committed another $33 million to the initiative, which allows the NEI to continue its work supporting innovation and entrepreneurship in Southeast Michigan. The William Davidson Foundation has come on as a new funder. “We have a heavy focus on entrepreneurial and innovation outputs with … Continue reading “New Economy Initiative Scores $33M in New Funding”
Seattle’s OpenCar Wants to Bring ‘Long Tail’ of Apps Into Vehicles
As we all know, there’s an app for that, whatever it is. But chances are, it’s not available for your car. So perhaps you stick with the one on your smartphone, furtively glancing down—dangerously, illegally—when you should be focused on driving. OpenCar, a Seattle startup, has an audacious goal that could help solve that problem, … Continue reading “Seattle’s OpenCar Wants to Bring ‘Long Tail’ of Apps Into Vehicles”
What Does $19B Buy? Market Validation for Text Messaging
When Facebook acquired WhatsApp last night, most of the initial headlines focused on the value of the deal and overall shock at how big the number actually was. Examples ranged from “Facebook to buy WhatsApp for $19 billion in deal shocker” (Reuters) to “Stunner: Facebook to buy WhatsApp for $19 billion in cash, stock” (Forbes). … Continue reading “What Does $19B Buy? Market Validation for Text Messaging”
Are Universities Creating Too Many Biotech Startups?
Bruce Booth, the biotech venture capitalist known for his social media savvy, sent a Tweet last month that caught my eye. He tweeted in reference to the number of academic spinoffs reported in the 2012 AUTM Licensing Survey Report, “What % biotech? My bet, ~ half.” Extrapolating from Top U.S. universities, institutes for life sciences in … Continue reading “Are Universities Creating Too Many Biotech Startups?”
This Ain’t Like Dusting Crops, Boy. Oh, Wait…Actually, It Is.
Awhile back I blogged about Ashwin, one of my ex-students wanted to raise a seed round to build Unmanned Aerial Vehicles (drones) with a hyper-spectral camera and fly it over farm fields collecting hyper-spectral images. These images, when processed with his company’s proprietary algorithms, would be able to tell farmers how healthy their plants were, … Continue reading “This Ain’t Like Dusting Crops, Boy. Oh, Wait…Actually, It Is.”
Intel Survey: Americans Skeptical, Yet Hopeful, About Smart Cities
Intel thinks it’s only a matter of time before cars, streets, highways, buildings—in short, most parts of the urban infrastructure—get a brain upgrade. And naturally, it expects that Intel chips will be powering much of the new smarts. But the Santa Clara, CA-based semiconductor giant knows that public fears about sensor networks and large-scale data … Continue reading “Intel Survey: Americans Skeptical, Yet Hopeful, About Smart Cities”
A2B Bikeshare Aims to Build a Better Bike-Sharing System
Millennials are famous for being not terribly keen on owning cars. Instead, they’re interested in alternative forms of transportation, such as public transit, on-demand hourly car rentals, and bike sharing. This is causing a major shift in the way car companies woo customers; January’s North American International Auto Show in Detroit, for instance, marked the … Continue reading “A2B Bikeshare Aims to Build a Better Bike-Sharing System”
Balancing Power Between Biotech and Big Pharma Benefits Both
Xconomy’s Luke Timmerman recently suggested that biotechs’ IPO option has shifted the balance of power between Big Pharma and biotech closer to parity, and the big guys have lost (or at least loosened) their iron grip on venture-backed biotech. As he put it, The power dynamic between the two parties is the closest it’s been … Continue reading “Balancing Power Between Biotech and Big Pharma Benefits Both”