Avacore

AVAcore Moves from Palo Alto to Ann Arbor to Grow
Dr. Allen Dumont saw a product demonstration at a conference in 2000 that changed his life.

The product was a novel, non-invasive patented technology called Rapid Thermal eXchange (RTX) developed by AVAcore Technologies, Inc. Excited by the potential for the product, Dr. Dumont returned to his position as head of pediatrics at St. Joseph Mercy Hospital in Ann Arbor and began aggressively securing financing to help bring the product to market.

The co-founders of AVAcore, Dr. Dennis Grahn and Dr. Craig Heller of the Department of Biological Sciences at Stanford University were demonstrating the product at that conference, and their lives changed as well.

"With a majority of funding originating in Ann Arbor, combined with the availability of resources available locally, AVAcore moved from California to Michigan in 2001," explained Mark Smith, AVAcore vice president of research and technology. "Locating AVAcore in Ann Arbor has significantly contributed to the success of the company."

The Ann Arbor IT Zone's Boot Camp helped AVAcore refine its business plan, enabling the company to effectively seek additional rounds of business funding. Additionally, the Michigan Economic Development Corp. initiated a dialogue with AVAcore to explore ways the state might help this emerging business.

RTX is known commercially as CoreControlä, and it rapidly cool or heat the body's core temperature, ultimately enhancing performance and reducing heat-induced fatigue. CoreControl has applications in athletics as well as industrial settings workers are exposed to extreme conditions.

Citing the research and expertise available in the Ann Arbor region, Smith continued, "The knowledge base and other resources available in southeast Michigan is uniquely conducive to manufacturing. Many see manufacturing as a drain on Michigan's economy, but for AVAcore, it's incredibly attractive: AVAcore has been able to develop beneficial relationships with injection molding facilities and other manufacturers who are seeking to diversify their businesses."

The cost of doing business in Michigan has also contributed to AVAcore's success. "One month of rent in Palo Alto, Calif. is equivalent to one year's rent in Ann Arbor, so relocating has helped AVAcore effectively retain capital and revenue," Smith added.

AVAcore clients include professional and collegiate athletic teams in the United States and abroad, fire fighters and the renowned Carmichael Training Systems, where cycling legend Lance Armstrong trains. In 2006, AVAcore expects to add staff and continue to introduce CoreControl in new markets.

AVAcore has been adept at leveraging the knowledge base, resources and entrepreneurial spirit of Ann Arbor to the benefit of its investors and business partners. The combination of the technical expertise of its staff, its patented technologies and its location in Ann Arbor, AVAcore has experienced tremendous success. The company is projecting fairly substantial growth in 2006, to $1 million in revenue. Over the next two to three years, AVAcore expects revenues to grow to $5 million.

"The knowledge base available in southeast Michigan is uniquely conducive to manufacturing."

Mark Smith
Vice President
Research and Technology
AVAcore