Ann Arbor SPARK Awards Three Companies Funding From Michigan Pre-Seed Capital Fund

Combined, ParkingCarma, Pixel Velocities and OTO Medicine Receive $600,000
March 20, 2007

Ann Arbor SPARK, the driving force in establishing the Ann Arbor region as a destination for business expansion, retention, and location, in conjunction with Michigan’s 12 SmartZones, recently awarded more than $600,000 in funding from the Michigan Pre-Seed Capital Fund to three emerging companies.

The Michigan Pre-Seed Capital Fund recipients are:

ParkingCarma of Flint, which moved its operation from Emeryville, Calif., in January. ParkingCarma has the world’s first dynamic parking guidance service that allows its subscribers to access currently available parking spots in a city through its satellite system that exhibits available spots.

Pixel Velocity of Ann Arbor, whose principals have 25 years of experience in solving defense applications for challenging imaging applications. Pixel Velocity is focused on providing synchronized smart cameras that enhance and improve on available video images within its two initial markets – security and surveillance and medical imaging.

OTO Medicine of Ann Arbor, a new biopharmaceutical business that is developing medicines to reduce noise-induced hearing loss. Its principals have more than 30 years of combined experience and formed this new business after leaving Pfizer.

To earn its Pre-Seed Fund awards, each company must get matching funds from other investors. ParkingCarma received funding from the Mott Foundation for $500,000; Pixel Velocity’s funding from angels totaled $250,000; and for OTO Medicine’s funding was an SBIR grant for $107,000.

The Michigan Pre-Seed Capital Fund is an equity fund that invests in technology-based companies to support business formation and acceleration. “The Fund is a signal to investors that Michigan is committed to supporting entrepreneurs,” said Michael A. Finney, Ann Arbor SPARK CEO. “By providing funding to companies that have a market-ready product, the Fund enables activities necessary to actually bring that product to market and drive revenue: Marketing, sales, initial customer acquisition, and the addition of staff to support growth.”

“The Michigan Pre-Seed Capital Fund supports jobs creation and business growth across the state,” said James Epolito, president and CEO of The Michigan Economic Development Corp. “By supporting businesses at the critical start-up stage, Michigan is demonstrating a commitment to developing a robust, diverse, entrepreneurial-driven economy.”

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.

About Ann Arbor SPARK
Representing all communities in Washtenaw County, Ann Arbor SPARK, a non-profit organization, is the driving force in establishing the Ann Arbor region as a destination for business expansion, retention, and location by identifying and meeting the needs of business at every stage, from startups to large organizations. Ann Arbor SPARK collaborates with business, academic, government, and community investor partners including the University of Michigan, Eastern Michigan University, the Herbert and Grace Dow Foundation, Pfizer, Washtenaw County, the City of Ann Arbor, the Bank of Ann Arbor, the Michigan Economic Development Corporation and the LDFA. For more information, please call (734) 761-9317 or visit www.AnnArborSPARK.org.