Pair of Indiana CU VC-backed eyes GR, Kzoo startups inch markets for closer to market expansion PAGE 3 PAGE 16 JUNE 22, 2020 • VOL. 32/NO. 18 • $3.00 SERVING WESTERN MICHIGAN BUSINESS SINCE 1988 www.mibiz.com VNN Inc. co-founder steps down from VC-backed startup after ‘passions changed’ By JAYSON BUSSA and JOE BOOMGAARD | MiBiz “I’m blown away when I think about that number,” [email protected] Vaughn told MiBiz. But even as VNN continued to add clients across the yan Vaughn can count many accomplishments country, Vaughn’s 10-year run with the company ended in over the last decade after co-founding and scal- April, about two years after he says he started to lose the ing VNN Inc., originally known as Varsity News passion for the work, which would eventually become dis- R Network. ruptive to his executive leadership role. That includes raising around $21 million in investor “It’s kind of like you finally get enough gold stars and VNN Inc. co-founder Ryan Vaughn departed the company in April, although capital for the company, a Grand Rapids-based informa- then you realize you don’t care about gold stars anymore,” he remains a shareholder. In his decade at the company, Vaughn raised about tion technology startup that offers schools a platform to Vaughn said. “Most of my VNN career — and frankly my $21 million in investor capital from local and national sources. COURTESY PHOTO post content about sports programs. See VARSITY NEWS NETWORK on page 8 Groups say their assistance After 2020 with Kent County relief cancellation, fund merits compensation future of ArtPrize By MARK SANCHEZ | MiBiz a history of [email protected] equity or equi- table causes remains unclear GRAND RAPIDS — In partnering in their work. on a $25 million small business When funding By ANDY BALASKOVITZ | MiBiz relief fund, Kent County and the opportunities [email protected] The City of Grand Haven was an early adopter in creating social zones that Grand Rapids Area Chamber of come, all of a allowed restaurants and retailers to expand onto sidewalks and city streets. Commerce want to tap a number sudden they fter canceling this year’s MIBIZ PHOTO: MARK SANCHEZ of community and entrepreneur- Ross form these alli- ArtPrize because of ial support organizations to get the ances and part- concerns over COVID- word out to companies and provide nerships where basically the A 19, organizers of Grand volunteers to vet grant applicants. smaller organizations and the Rapids’ flagship arts event and the RESTAURANTS, BARS EXPAND However, Start Garden minorities do the work for free,” largest art competition in the world and Grand Rapids Area Black Ross said. “There definitely could have avoided questions about Businesses — two of the orga- have been more intentionality whether it will return. nizations that the Grand Rapids and sensitivity around making Staff declined to give interviews, OUTSIDE WITH SOCIAL ZONES Chamber lists as potential part- sure that the partners with a his- while chairman and founder Rick ners in the Kent County Small tory of the work and who actually DeVos did not respond to requests By KATE CARLSON | MiBiz Business Recovery Program — care about equity work, making for comment. [email protected] question the volunteer part. sure they are at the table in a way Board member Marc Schwartz They’d like to see the $750,000 the that is monetized.” issued a statement to MiBiz saying W’s Food & Spirits had never offered outdoor seating in the more than county will pay the Chamber to The Grand Rapids Chamber’s the board “will continue to evalu- two decades the restaurant and bar has been in operation at the corner of administer the grant program get proposal to the county for manag- ate things, and at the right time, North 7th Street and Washington Avenue east of downtown Grand Haven. funneled down and compensate ing the grant funds lists municipal- make decisions regarding the pos- J That all changed this year when 50-percent capacity restrictions the groups who are called upon ities and chambers of commerce sibility of future events.” brought on by the COVID-19 pandemic forced owner Chris Weavers to get cre- to assist in the effort, rather than across Kent County as partners “Our decision to cancel ArtPrize ative in finding a pathway to remaining profitable. provide free labor. for outreach and providing repre- was a result of uncertainties related The Grand Haven establishment took advantage of the city’s “This should be a robust com- sentatives for selection commit- to the COVID-19 pandemic,” said new social zone program that allows businesses to use outdoor munity effort, and it’s pitched as it’s tees, plus several community and Schwartz, whom lifestyle publi- space such as sidewalks, parking lots and parts of city streets for going to be a robust community entrepreneurial organizations. cation SEEN Magazine described their operations. JW’s now has nine outside tables in an area the effort, so it just seems, arguably, That includes organizations such in 2017 as a “full-time Detroit arts city assisted in blocking off with concrete barriers. that the community should get as the West Michigan Hispanic ambassador and advocate.” “This is going to more than make up for the 50-percent paid for those services,” said Darel Chamber of Commerce, West “Given the prospect of contin- capacity (restriction) and it’s just a fun, exciting atmosphere,” Ross, a director at Start Garden. Michigan Hispanic Center, Grand ued uncertainties related to the Weavers said. “My dining room is quite small. Without this out- “There’s a pattern and his- Rapids Black Chamber, Grand See ARTPRIZE on page 3 door seating, it would have been impossible to turn a profit.” tory in Grand Rapids of larger Rapids Area Black Businesses, the Weavers See SOCIAL ZONES on page 15 organizations that do not have See RECOVERY FUND on page 17 PERIODICALS Philanthropy gets creative INSIDE: to address nonprofi ts’ Automotive acute needs Industry PAGE 21 Forecast SEE PAGE 4 OUR REACH MAY BE GLOBAL, BUT OUR HEARTS COULDN’T BE MORE LOCAL. Being a part of West Michigan for over 50 years has not only shaped who we are as a company, it’s profoundly impacted us as individuals. Its work ethic and passion for innovation are infused in our DNA. We are known throughout the world for our excellence in developing automotive décor components, and we attribute much of our success to the place we call home. lacksenterprises.com 20-LE-0002-MIBiz-Ad-June-Insertion-Final.indd 1 6/9/20 5:47 PM 2 JUNE 22, 2020 / MiBiz Visit www.mibiz.com Capital raises bring pair of Genesis Innovation-backed startups closer to market By MARK SANCHEZ | MiBiz of artificial bone applications. HAPPE Spine is to do to help correct” a condition. [email protected] developing a device for spinal fusion and expects “This is more about precise device decision mak- Published since 1988 to file an application to the U.S. Food and Drug ing: Which exactly is the best device for the patient MiBiz® is a registered trademark of GRAND RAPIDS — New capital investments Administration by the end of the year to move into and where is it best placed to provide the best out- MiBiz, Inc. involving existing investors will bring two health the marketplace, Ball said. comes for the patient?” Ball said. care startups backed by Genesis Innovation “This capital gets us to that moment,” he said. Genesis Software co-developed and tested the Publisher Group LLC closer to the market. HAPPE Spine previously platform with a “significant group Brian Edwards / [email protected] Investors recently committed $650,000 to raised about $2 million. As the of surgeons,” Ball said. The com- Associate Publisher HAPPE Spine LLC, a Grand Rapids-based startup company moves toward commer- pany’s initial focus is orthopedic Denise Montambo / [email protected] developing and commercializing a porous, bioac- cialization, it will need to secure procedures, although it’s also look- tive material for orthopedic implants. The invest- additional capital, and to decide ing at the software’s use in cardiac Editor ment capital came from existing financial backers whether to go to market alone, procedures and other applications, Joe Boomgaard / [email protected] of HAPPE Spine that include the Holland-based pursue a strategic partnership, he said. Managing Editor Genesis Innovation Group and its venture capital or sell the intellectual property, “We are in full development Andy Balaskovitz / [email protected] fund, Cultivate(MD), plus indi- Ball said. mode and we are, similar to (energy, policy) vidual private investors, said “All options are on the table, but we’ve had sig- HAPPE, filing (with the FDA) on the technology Senior Editor Genesis CEO Rob Ball. nificant, inbound strategic interests in the tech- later this year,” Ball said. Jayson Bussa / [email protected] Another company formed nology,” he said. “We’re open to a strategic part- The Genesis Software platform stems from Senior Writer by Genesis Innovation Group, nership as well.” Genesis Innovation’s prior involvement in Mark Sanchez / [email protected] Genesis Software Innovations At Genesis Software, the new capital raised from IMASCAP SAS, a French developer of pre-opera- (fi nance, health care, life sciences) LLC, raised $427,230, accord- 15 investors will take the company up to the FDA tive software that was acquired in December 2017 Staff Writers ing to a recent filing to federal application process. The company developed a soft- by The Netherlands-based Wright Medical N.V. Kate Carlson / [email protected] securities regulators.