Startup News

Paxahau's suburban odyssey has come to an end now that electronic music company has moved to downtown Detroit, bringing 12 employees and a handful of interns with it.

"We all came up in Capitol Park," says Jason Huvaere, president & founder of Paxahau. "That's where we all met. We have been working together for 18 years and every one of those years has been spent looking to come back downtown."

Paxahau has been in an office in Ferndale for a number of years before executing a move to Greektown this winter. The company has moved above Floods Bar & Grille into the third floor office space of the Cornice & Slate Building. The firm has also hired three of its former interns over the last year, bringing its staff to eight full-time employees and another four part-timers.

Interns are a constant for Paxahau's staff. It normally has a handful of interns at any one time, and that number swells during the warmer months when it is organizing concerts and events, such as the annual Movement Electronic Music Festival in Hart Plaza. Those internship numbers could potentially reach triple digits if the Paxahau can broker a deal with Wayne State University.

"We may have as many as 100 interns this year," Huvaere says. "It depends on how the university and the public responds. It would essentially replace our loose volunteer department."

Those interns will use Paxahau's new downtown office as a hub of activity. Huvaere explains the move is more about accentuating the company's culture and direction, which are all Detroit-oriented. It's why the firm used Detroit-based companies to execute the move and design the office.

"Downtown is where our heads and hearts are," Huvaere says. "There isn't a part of our start-up that doesn't revolve around downtown."

Source: Jason Huvaere, president & founder of Paxahau
Writer: Jon Zemke

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

Aria Ventures, an investment coordinating firm for start-ups, has opened up an office in the M@dison Building in downtown Detroit. Aria Ventures helps early-stage startups develop their business and find funding solutions, and it sees the M@dison Building as a prime farm system for start-ups.

"We get that company funded through our angel network anywhere to the tune of $500,000 to $1.5 million in the first round," says Jeff Sloan, founder & managing partner of Aria Ventures and co-founder of StartupNation.

The Birmingham-based firm has a portfolio of eight active companies in the online, health-care and veterinary pharmaceutical industries. Sloan sees a number of these companies as prime candidates for investment from the Detroit Venture Partners venture capital firm, which is based in the M@dison Building overlooking Grand Circus Park.

"Our goal is to launch 5-10 new companies over the next couple of years," Sloan says. "We would love to have several of them end up in partnerships with Detroit Venture Partners."

Dan Gilbert, chairman of Quicken Loans, created the M@dison Building to serve as the tech and entrepreneurial hub for his family of companies, a vision his team is branding as Webward. The M@dison Building is filled with a broad range of venture capital firms, angel investors, start-ups and established creative-based firms. Sloan sees this as the groundwork for a significant entrepreneurial ecosystem to emerge in the near future.

"I feel a real sense of momentum with real action underlying the fantasy of it all," Sloan says. "I think we really have a shot like we haven't had before to move southeast Michigan forward."

Source: Jeff Sloan, founder & managing partner of Aria Ventures
Writer: Jon Zemke

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

Beal Inc is launching another company called LaborNOW from its offices in downtown Detroit.

The new construction staffing company has been in the works for the last few years, but gained traction this winter when it hired its first three employees. The company will focus on providing top-shelf workers in the construction industry, starting with a handful of workers that routinely provide services to Beal.

"You're getting a higher percentage of highly skilled construction professionals," says Stewart Beal, president of LaborNOW.

LaborNOW will have three offices in the Metro Detroit area, including one in downtown Detroit, another in Ann Arbor and a third in Toledo. Beal says the company is necessary because whenever he has had to use staffing companies, more times than not the workers don't work out. He sees a bright future for LaborNOW that will lead to dozens of new hires in the region.

"If the model is successful it can be replicated in other markets," Beal says.

Source: Stewart Beal, president of LaborNOW
Writer: Jon Zemke

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

AKT Peerless Environmental Services has been hiring and it has it sights set on expanding its Detroit office.

The environmental development firm has offices in Saginaw, Lansing, Grand Rapids and Detroit, recently moving its Detroit office from downtown to New Center. The company overall has hired  12 new people in the last year, while maintaining its Detroit office of five employees and a couple of interns.

"We have found that there has been a good deal of stability in economic development," says Tony Kashat, principal at AKT Peerless Environmental Services. "We have been able to maintain a consistent workload and have that go up 3-4 percent since then."

AKT Peerless Environmental Services specializes in brownfield redevelopment, helping companies and developers harness things like tax credit programs. The added redevelopment of the greater downtown Detroit area is expected to help AKT Peerles Environmental Systems up its workload and make some new hires.

"We're optimistic that we could add 2-3 people," Kashat says.

Source: Tony Kashat, principal at AKT Peerless Environmental Services
Writer: Jon Zemke

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

Fred Monroe came back to Detroit primarily for reasons: family and opportunity.

The Metro Detroit native graduated from the University of Michigan in the early 1990s and went west. The computer programmer ended up in Chicago day trading and working with startups. When his son became old enough to go to school, Monroe and his wife (also a Michigander and U-M grad) moved their young family back to Metro Detroit for the good schools and low cost of living.

"I'm here because I have family here and was born and raised here," Monroe says. "The honest truth is this is where home is. The other part is there is a lot of potential here."

Monroe began making angel investments last year and set up 313 Ventures in the M@dison Building. He is focused on investing in digital startups and now has five companies in 313 Ventures. Of those startups, two are in Michigan, one is in Detroit and one is a Detroit Venture Partners portfolio firm.

"This is a place where the lean startup model makes sense in so many ways," Monroe says. "The reasons are because the costs are so low."

Monroe plans to make a handful of other angel investments in Metro Detroit-base startups. He believes the M@dison Building is a great place to find those investment opportunities because of the growing cluster of startups and variety of angel investors and venture capitalists working together to build a viable entrepreneurial ecosystem in downtown Detroit.

"I care about the bigger purpose," Monroe says.

Source: Fred Monroe, manager & founder of 313 Ventures
Writer: Jon Zemke

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

Four years ago Tim Edwards and Gary Bredow began working together, a partnership that has since spawned three startups in Corktown.

The pair now run Edwards Marketing Solutions, Big Bang Films and Popcorn App, which employ four people between the three ventures. Big Bang Films has a full film production studio and office on Brooklyn Street. Popcorn App has focused on creating mobile apps for the Edwards Marketing Solutions and other customers.

"My passion is the app/website/marketing end of it," says Tim Edwards, marketing director of Edwards Marking Solutions. "I want to increase our client base and keep working with the small businesses we have been working with."

Popcorn App has created a number of apps for local companies. Among those are the app for Bucharest Grill, which allows users to place their food orders through the mobile app. Edwards expects to continue creating similar apps for other local companies and expand its film work with Big Bang Films.

"I would love to increase my sales staff," Edwards says. "The difficulty is finding someone with the same fire as me to go out and do it."

Source: Tim Edwards, marketing director of Edwards Marking Solutions
Writer: Jon Zemke

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

Clark Covert and Jason Beale are launching a startup out of TechTown, RegainGo, that provides references to quality construction professionals and discounts to their work to boot. They describe RegainGo as a combination of Angie's List and Groupon.

The two were working in real estate (Covert flipping houses and Beale as a commercial real-estate lender) when the two were inspired. Covert always lamented how tough it was to find a quality contractor. Why not combine that sort of access with an introduction that includes a discount on the contractor's services?

"There has to be a way I can save them money and offer a good list of great contractors," says Covert, CEO of RegainGo.

The two entrepreneurs have been working on RegainGo for the last year and they are preparing to launch the service in March. When RegainGo goes live it will offer 15-25 coupons. The discounts will not be daily deals but offers that last 5-10 days for a specific quantity. They plan to launch it with the help of radio advertising and email lists. The plan is to conquer the Michigan market this year.

"We want to see it in all of Michigan and expanding into neighboring states," Covert says.

Source: Clark Covert, CEO of RegainGo
Writer: Jon Zemke

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

Clean Emission Fluids has secured a $420,000 seed capital round with half of that money coming from the Michigan Pre-Seed Capital Fund. That money is helping the TechTown-based startup ramp up production so it can go on a hiring spree this year.

The 5-year-old startup is developing the FAST (Fluids Affordably STored) biofuel and clean diesel system. The new technology helps blend a variety of biofuels to make the right combination of bio-diesel for the right truck when it pulls up. Most other fuel pumps don't have this blending ability.

Clean Emission Fluids has established a production center for the FAST system at the Focus: HOPE facility on Detroit's West Side. The company expects to use its seed capital to ramp up sales with marketing and increase its production capability. It's a platform that Clean Emission Fluids believes positions it for significant growth in 2012.

"Exponential," says Oliver Baer, resident of Clean Emission Fluids. "It's an emerging market. We're hitting it at just the right time."

So much so that Baer expects the startup's team (10 employees and seven interns) to rapidly expand his team this year. That includes 10-15 new hires in the next six months and doing it again by the end of the year.

Source: Oliver Baer, resident of Clean Emission Fluids
Writer: Jon Zemke

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

Detroit Harmonie has an ambitious agenda for both bringing people in the city together and providing a platform for social entrepreneurs to fundraise seed capital. The Midtown-based nonprofit believes it can take its first step toward those goals with a seed-capital competition on March 3.

The Get Funded Challenge will allow about a dozen social entrepreneurs to compete for $50,000 in cash prizes to get their businesses started. The competition will offer a $30,000 grand prize and allow local residents to vote for the winner. The idea is that competitions like this will serve as a model for funding entrepreneurial dreams and allow entrepreneurs, investors and customers to make connections outside of their normal social circles.

"We want to become a funding mechanism to get them to the next level," says Jordan Wolfe, co-founder and chair of Detroit Harmonie.

Detroit Harmonie also is working on developing a scorecard for the winners of the Get Funded Challenge to track their progress. The nonprofit, launched in July, is aiming to fund projects and businesses that create economic impact in Detroit's communities through improving the physical environment or enhancing cultural diversity.

"They have to be doing something that is making Detroit a better place," Wolfe says.

For information on the competition, click here.

Source: Jordan Wolfe, co-founder and chair of Detroit Harmonie
Writer: Jon Zemke

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

The Collaborative Group, a group of Metro Detroiters focused on improving the city of Detroit, plans to give out 30 grants to young, innovative people with entrepreneurial aspirations this summer as part of its Challenge Detroit program.

Challenge Detroit will offer 30 grants to young people that will cover living expenses (a $500 per month stipend), employment (a job with a local company), social experience (coordinated activities within the group and the communities the grant recipients live in) and giving back through monthly team challenges. The idea is to bring in dynamic young people that will live, work, play and give in the city's greater downtown area.

"If we don't attract more professionals to live in our cities we wont have enough brain power for our next generation," says Deirdre Greene Groves, director of The Collaborative Group.

The three-phase application process starts with a March 16 deadline for applications that include a written and video component. The videos of the top 100 semi-finalist will be posted on Challenge Detroit's website so the public can vote for the best one. The top 50 finalists will interview for the 30 grants, which will be awarded this summer. Applicants need a bachelor's degree but don't necessarily have to be fresh college graduates. Any young people with innovative, entrepreneurial ambitions for Detroit that want to sink roots in the city should apply.

"What we're really looking for is innovative and entrepreneurial thinkers," Greene Groves says.

For information on applying, click here.

Source: Deirdre Greene Groves, director of The Collaborative Group
Writer: Jon Zemke

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

In a world where technology trends at times evolve faster than fashion trends, Terri McQueen has found success with a business that relies on antiquated technology. Ya Digg Records focuses on vinyl record sales in local music, ranging from electronic to hip-hop.

"I would like to revive record sales in Detroit," says McQueen, record selector, and founder of Ya Digg Records. "Even though vinyl sales have gone up there are a lot of people who don't know about vinyl."

McQueen got her start in music by DJing in 2005. She became involved in Detroit's local music scene and started Ya Digg Records three years ago. She now sells records in the hip-hop, electronic, jazz and punk genres on the web and at Stormy Records in Dearborn.

"Detroit has a consistent talent base," McQueen says.

She plans to open a retail shop (she previously had one at the Russell Industrial Center before a recent health issue that has now been resolved) in the greater downtown area later this year. She is looking at spaces in Corktown, Eastern Market and Woodbridge.

Source: Terri McQueen, record selector and groove appraiser for Ya Digg Records
Writer: Jon Zemke

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

Internships are starting to gain some significant traction in downtown Detroit, a phenomenon that promises to bring hundreds if not thousands of young people to the city this year.

Driving this growth are some major corporate stakeholders in downtown planning to offer hundreds of internships. Quicken Loans Chairman Dan Gilbert recenty announced that his company would offer 500 internships downtown this summer alone.

However, large corporations aren't the only thing driving this growth. Intern in Michigan, which was relaunched this fall, has been facilitating a number of internships with small businesses and non-profits throughout the city and across the state. Since October, more than 6,000 students, employers and student advisors have registered with the non-profit's website to find internships. There are currently more than 400 active opportunities.

"Well over 1,000 internship opportunities have been posted throughout the system," says Wendy Pittman, executive director of Intern in Michigan. "Right now employers are gearing up for summer internships."

Intern in Michigan's staff of three people partnered with downtown-based software firm Digerati to create the online system to connect more Michigan employers with in-state students for internships. The idea is that college graduates are more likely to land a job where they had an internship so internships could help Michigan reverse its brain drain.

"We would like to see thousands of internships in the system," Pittman says.

Source: Wendy Pittman, executive director of Intern in Michigan
Writer: Jon Zemke

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

Eighteen months ago, Detroit Dirt consisted of the ambition of a couple of young people who wanted to make better use of what Detroiters throw away. Today, it's a small group of entrepreneurs growing a sustainable business by composting more and more of Motor City's bio-degradable waste.

The Corktown-based start-up specializes in composting bio-degradable waste (think food scraps) from restaurants, cafeterias and other commercial facilities in the city. Some of Detroit Dirt's customers include the General Motors cafeteria in the Renaissance Center and the Chevrolet Volt plant in Hamtramck.

"Our customer base also grew 100 percent," says Pashon Murray, co-owner of Detroit Dirt. "We have grown quite a bit over the last year."

Detroit Dirt has grown to five people and plans to bring on a handful of interns this summer. The start-up is leasing a small strip of land from the Canadian Rail Group in Corktown. That parcel is used to compost the bio-degradable waste, which is then used as a natural fertilizer and top soil. The company was composting a couple hundred yards of product when it started and is now processing 3,000 yards today.

"We're going to use some of it with some gardens we're designing for this spring," Murray says.

Detroit Dirt plans to open a few more locations this year to process more bio-degradable waste. It also plans to partner with some local schools and universities to boost its customer base and total amount of product processing.

Source: Pashon Murray, co-owner of Detroit Dirt
Writer: Jon Zemke

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

The Batata Shop got its start in Tawnya Clark's home while she was helping take care of her 99-year-old grandmother as a full-time caregiver. To help accommodate her grandmother's diet needs, Clark started making foods from sweet potatoes, such as waffles and pancakes.

"My grandmother really liked them," says Tawnya Clark, founder of The Batata Shop. "I started making more of them for family and then friends. Then I started doing brunches and built it from there."

Batata is Spanish for sweet potato, and the word made Clark smile every time she heard it. After building the Batata Shop for the last 18 months, Clark plans to begin bringing her sweet potato comfort food for breakfast to the rest of Detroit. She has participated in Bizdom U and is close to finishing the FoodLab Detroit bootcamp.

The Batata Shop is currently looking for a commercial kitchen in Midtown so she can meet her growing demand. She is also looking to raise some seed capital through microloans or business plan competitions like Hatch Detroit.

"We have a lot of resources available for entrepreneurs in Detroit," Clark says. "It's a great time to start a business here."

Source: Tawnya Clark, founder of The Batata Shop
Writer: Jon Zemke

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

A year ago, Detroit Labs wasn't even an idea in minds of its co-founders. Today the downtown Detroit-based start-up is making mobile apps for Chevrolet's Super Bowl advertising campaign.

Detroit Labs developed Chevrolet's "Chevy Game Time" app that will be used to give away thousands of prizes during this weekend's Super Bowl. The app uses trivia, polls and drawings for 20 cars from Chevy to engage consumers during the game and commercials. Users will have the chance to win thousands of prizes from Chevrolet and other game sponsors.

"The goal is to get as many social media impressions as possible for Chevy," says Dan Ward, co-founder of Detroit Labs.

Ward started the app start-up eight months ago by teaming up with Paul Glomski, Henry Balanon and Nathan Hughes. Detroit Venture Partners, a downtown Detroit-based venture capital firm, brought the four together to create custom apps for some big-name clients, such as Stryker and Quicken Loans.

Detroit Labs now employs 16 people and is looking to keep growing. The team has created about a dozen apps, including a fast turnaround of the Chevrolet app. The co-founders credited their new diggs in the M@dison Building for making that app project possible.

"We're thrilled to be a par of the technology boom in Detroit," Glomski says.

Source: Paul Glomski and Dan Ward, co-founders of Detroit Labs
Writer: Jon Zemke

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