Michigan Pre-Seed Capital Fund Investments Up to $1.47 Million

Investment in Kalamazoo’s MedElute Pushes Total Past $1M
June 6, 2007

With its $250,000 investment in Kalamazoo-based MedElute, Inc., Ann Arbor SPARK, in conjunction with Michigan’s 12 SmartZones, has 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
•    MedElute, Inc., Kalamazoo

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.

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.