Pre-Seed Capitol Fund Investments Near $1.5 Million

Great Lakes IT Report – June 14, 2007

With a $250,000 investment in Kalamazoo-based MedElute Inc., Ann Arbor Spark, in conjunction with Michigan's 12 SmartZones, has now awarded nearly $1.5 million in funding from the Michigan Pre-Seed Capital Fund.

"Emerging companies see the Michigan Pre-Seed Capital Fund as a resource to support their expansion and success," said Michael A. Finney, Ann Arbor Spark CEO. "This type of funding is critical to supporting entrepreneurial growth and creating a pro-business culture in Michigan."

MedElute is developing a drug-eluting product to treat post-surgical adhesions -- scars that form abnormal connections between tissue surfaces -- using a highly novel anti-platelet approach. Post-surgical adhesion formation is a natural consequence of surgery, resulting when tissue repairs itself following incision, cauterization, or suturing.

To earn its Pre-Seed Fund awards, MedElute had to get matching funds from other investors. It received angel funding totaling $250,000.

To date, seven companies, including MedElute have received funding through the Michigan Pre-Seed Capital Fund. Fund recipients, and their SmartZone sponsors, are

* ParkingCarma, Ann Arbor-Ypsilanti and Automation Alley

* OTO Medicine, Ann Arbor-Ypsilanti

* Pixel Velocity Inc., Ann Arbor-Ypsilanti

* SensiGen LLC, Ann Arbor-Ypsilanti

* EADevices Inc., Kalamazoo

* Danotek Motion Technologies LLC, Detroit/Woodward Technology Corridor

The Michigan Pre-Seed Capital Fund is an equity fund that invests in technology-based companies to support business formation and acceleration. Ann Arbor Spark was awarded $8 million by the Michigan 21st Century Jobs Fund to create the new fund, which is investing in technology-based businesses to support business formation and acceleration.

The Michigan Pre-Seed Capital Fund is a collaborative effort of Michigan's 12 SmartZones. Each SmartZone is responsible for recommending an investor to the Michigan Pre-Seed Capital Fund review board. Ann Arbor Spark serves as the fund's administrator.

More at www.annarborspark.org.