3. It is not the strongest of the
species that survives, nor the
most intelligent that survives. It
is the one that is the most
adaptable to change.
Charles Darwin 1809-1882
4. Jun 8, 2009 - GM files for Bankruptcy
Jul 10, 2009 – GM emerges from Bankruptcy
Apr 30, 2009 – Chrysler files for Bankruptcy
Jun 10, 2009 – Chrysler emerges from Bankruptcy
Bankruptcy
Jul 18, 2013 – Detroit files for Bankruptcy
Dec 17, 2007 – Rich Rodriguez hired
Jan 4, 2011 – Rich Rodriguez fired
15. Entrepreneurs
James Baker, NanoBio
Tom Kinnear, ZLI
Paul Saginaw, Zingerman’s
Dick Sarns, NuStep
Rich Sheridan, Menlo
Jeff Williams, Accuri
Thomas Zurbuchen, CFE
22. What is Ann Arbor’s Role
in Michigan’s Future?
1893
23. What is Ann Arbor’s Role
in Michigan’s Future?
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24. What is Ann Arbor’s Role
in Michigan’s Future?
18931940
25. What is Ann Arbor’s Role
in Michigan’s Future?
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26. What is Ann Arbor’s Role
in Michigan’s Future?
189319402013
27. What is Ann Arbor’s Role
in Michigan’s Future?
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28. What is Ann Arbor’s Role
in Michigan’s Future?
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Editor's Notes
Program Series which started August 2008
September 2008 marks the 5 year anniversary of the start of the Great Recession Our program series launch in August 2008, during a period of deep economic distress
The need to change to survive was imperative
An economic downturn like none other And dark days for Michigan Football
At the turn of the last century SE Michigan was the world center of entrepreneurship Main St. looking North from Liberty (1893)
Main St. Ann Arbor 2013 While Michigan evolved into the world center for large corporations, AA emerged as a world leading college town and Michigan’s center of entrepreneurship What is AA role’s today, in Michigan changing economy
Initial Presentation: August 12, 2009 Our presentation series as focused on four pillars for innovation ecosystem success: Research Capital Private & Public Business Growth support services Entrepreneurs and entrepreneurship AND the connective tissue needed for continued success, an entrepreneurial culture
Our program has included 20 speakers over the past four years. Research area speakers have included the name on the slide. Mostly from the nation’s leading public university in research, the University of Michigan. AA is also one of the global centers of automotive research and we heard the founder of the Center of Automotive Research 2009: Spending on U-M research hits $1 billion for 1st time 2009-2010: University of Michigan ranks 1st in U.S. for research spending
Speakers in the area of Capital included the names on the slide
Bank of Ann Arbor launched its Technology Industry Group practice in 2002. Providing not only banking services and loans to established technology and life sciences companies, but focusing on adding value to early stage innovation based companies, entrepreneurs, scientists, engineers, venture capital firms and angel investors. BOAA founded the Ann Arbor Angels group in 2004
Innovation Capital has seen strong support from the MEDC, Ann Arbor SPARK, MVCA, Bank of Ann Arbor, and the Ann Arbor Angels. SPARK: Entrepreneurial Education & Training Funding: Microloans, Michigan Pre-Seed Capital Fund, Business Accelerator Grants, Michigan Angel Fund ($2MM) Open-Source Economic Development MEDC Angel Network Growth Program Accelerator Fund (VC Funds) $12MM Pure Michigan Venture Development Fund $5MM 21 st Century Investment Fund $109MM Venture Michigan Fund $95MM InvestMichigan $300MM Michigan Business Growth Fund Accelerator Collaboration Program
Statistics provided by the MVCA National VC activity has remained flat or even declined, MI has continued to grow MI total VC capital under management increased 50% between 2008 and 2012 Michigan VC activity’s rank among all 50 states leaped from #25 to #15 in the last year MI angel ad pre-seed funding increased by 32% in the last year 40% Life Sciences, 36% Information Technology, 18% Advanced Materials & Manufacturing, Alternative Energy
Other speakers on the slide, including a talk about how important a strong innovation community is to area social service organizations
Attracting, retaining and growing next generation entrepreneurs remains one of our biggest challenges. Speakers on entrepreneurship included those on the slide Zingerman’s and its unique Family of Businesses spoke on building community entrepreneurs
Successful venture backed companies like Esperion often are bought-out and leave town. While this is often discouraging, it is a vital component of building new innovation business leadings. Examples of recently successful venture backed companies: HealthMedia, Accuri Cytometers, HandyLab, Cielo MedSolutions, NeuroNexus, Compendia BioSciences This slide diagrams the Esperion Therapeutics story which included: Pfizer Spin-out; IPO 2000; 2005 Pfizer $1.3Bn; 2008 Pfizer divested; 2013 $80MM IPO.
The focus on entrepreneurship at UofM has never been greater and is rapidly expanindg. 1994: CVP established by Dave Brophy 1999: ZLI established by Tom Kinnear 2008: CFE established 2009: MIC established 2011: $25MM MINTS announced 2013 – Master of Entrepreneurship program established 2013: Michigan i-Corp established 2013: MGCS 32 nd anniversary Other UM programs of note: Wolverine Venture Fund, TechARB, Frankel Fund, Social Venture Fund Entrepalooza: Friday, September 20, 2013 MPowered: 6,000 students/year, 413 startups and companies, 1,000 pitches iCorp: a statewide program designed to foster, grow and nurture a statewide innovation ecosystem. May 2013 first graduation class. $1.5MM NSF 3-Year.
UM is a top Tech CEO school. Howver, none of the companies call Michigan home. Data: 250 U.S. $1Bn Tech Co. CEOs Larry Page. Born in E. Lansing, parents MSU Computer Science professors, UM Computer Engineering. Eric Lefkofsky, who recently took over as CEO of Groupon, and Paul Rooke, who runs printer maker Lexmark, are Michigan alumni. Steve Singh, who runs the travel expenses company Concur Technologies, and Bobby Kotick, the animated CEO of Activision Blizzard, also went to Michigan but didn't stay until graduation. Building a regional Innovation Culture is imperative.
The AA entrepreneurial culture is alive and well including: The Tech Brewery Libery St. Technology Corridor New Enterprise Forum Café Zola And the other organizations listed on the slide
Innovation Economy ‘arms-race’ However, while AA is going and strong, there are may areas of the country that are growing faster and have surpassed AA. 1990: AA only spot in MI. AA: 2.6 in 1990 – 2010: 1.4 Growth areas in Michigan include: Det-Livonia-Dearborn: 1990: 0.4 – 2010: 0.7 Grand Rapids: 1990: 0.5 – 2010: 0.9 AA must think more regionally, be more open and collaborative to maintain its lead and help Michigan’s 21 st Century grow.
Organizations leading the push for regional cooperation and collaboration in Michigan includie those on the slide. URC: Michigan's three largest research universities top $2B in annual R&D spending University Research Corridor adds $15.5B to Michigan economy NEI: 7 county area. Southeast MI. $100MM (2007-2015) “ return Detroit to its position as a global economic leader.” 10 Foundations NEI Mission: Accelerate the Transition to an Innovation Based Economy Capitalize on Existing Assets and Resources Homeland Security Creative Economy Manufacturing Design and Capacity University and College Internship Program Blue, Clean and Green (one-fifth of the world’s fresh water) Logistics Hub Enhance Entrepreneurial Ecosystem TechTown, Bizdom U, Urban Entrepreneur Partnership Detroit Innovate (Seed-Stage Fund, First Step Fund) Focus on Innovation District: 3.5 mile corridor from Downtown to New Center GLEQ MICHBIO Business Leaders for Michigan (Founded in 1970s (Detroit Renaissance) - 2009 statewide) Michigan Turnaround Plan: dedicated to making Michigan a "Top Ten" state for job, economic and personal income growth. Serving as the state's business roundtable 2013 Michigan’s Logistics and Supply Chain Strategic Plan. Aerotropolis. VantagePort Willow Run Powertrain Plant redevelopment. Conneted Vehicle R&D center. Greater Regional Planning - Collaboration The organization is composed exclusively of the chairpersons, chief executive officers, or most senior executives of Michigan's largest companies and universities. Our members drive over 25% of the state’s economy, provide over 325,000 direct and 820,000 indirect jobs in Michigan, generate over $1 trillion in annual revenue and serve nearly one half of all Michigan public university students. Doug Routhwell, President & CEO Sabrina Keeley, COO Accelerate Michigan: (Nov. 12-14) Business Accelerator Network for Southeast Michigan, URC, NEI Business Accelerator Network: NEI: $3MM, 3-year SPARK, Automation Alley, MAComb-OU INCubator, TechTown
AA Main St. at the turn of the 20 th century.
1940: AA UM emerges as the “Harvard of the West”
1950 – 1970: AA evolves into a town & gown community “Where Commerce and Education Meet”
2013: AA is a world renowned center of research and health services
Progress and changes does come with a price, including the passing of favored hang-outs.
Embracing and leading change is what has made AA and UM great.
The transition of Michigan’s Large Corporate Culture forward (and in many ways back 100 years) to a land of entrepreneurship, innovation and high growth businesses is a challenge for which AA is uniquely suited to provide enormous leadership. We look forward to delving into this challenge and opportunity in our program series.
