Can Leave You Feeling Ignored

Home , Angel investor, Thomas Hines, Veronis Suhler Stevenson, Wind Point Partners

CDBmagazine.qxp 4/10/2007 3:16 PM Page 1

can leave you :too big feeling ignored. FINDING THE RIGHT FIT IS EVERYTHING when it comes to maximizing the return on your investments. Select a firm that’s too big, and you could lose priority while paying too much for professional tax, audit, and transaction services. Too small, and you could be stuck with advisors who lack the expertise to properly protect your interests. At Virchow Krause, you get a regionally based, globally focused leader with the strengths and services of the largest firms and the personalized attention of the much smaller ones. The right fit. It’s what you should demand. And exactly what we deliver.

EXPECT US TO BECOME YOUR MOST VALUED ADVISOR.

CALL 248.372.7300

Certified Public Accountants & Consultants www.virchowkrause.com

GROWING A NEW ECONOMY HelpingHelpingpg BusinessesBusinesses GrowGGrow Women ToT Their Full Potential ■ From Page 16 To Their Full Potential search, women represented 13.8 percent of angel investors in 2006. Nearly 13 percent of entrepreneurs who sought angel capital last From idea to implementation. year were women, and 21.5 percent of them received angel investment, the center says. From start-up through financing. The Kauffman study contends that hav- From a dream to a successful exit. ing fewer women venture capitalists means fewer deals with women-led firms because The experienced attorneys at venture deals often depend on personal con- Fraser Trebilcock Davis & Dunlap, P.C. nections, and male venture capitalists tend to form connections with male-led firms. counsel businesses every step of the way. “To a large degree, it’s based on who you know,” said Linda Paullin-Hebden, a partner with Warner, Norcross & Judd L.L.P. in Southfield who helps advise woman-led firms on venture-capital deals. “Venture- capital firms are primarily run by men, and William Deneau, President of Aurora Oil & Gas Corporation and Attorney Iris Linder at AMEX. they have relationships with other men.” Campbell said much of the issue depends on whether women own companies that fit Working in the Venture Capital a VC firm’s investment criteria. “How many of those are venture-backable arena for over 20 years, the firm’s types of companies, with proprietary tech- Business Department helps clients www.fraserlawfirm.com nology and potential to become a $100 mil- grow to their full potential. lion company?” Campbell said. And Mina Lansing - (517) 482-5800 • Detroit - (313) 237-7300 Sooch, founder and general partner of Kala- mazoo-based Apjohn Ventures, pointed out that women have entered the ranks only in recent decades, while men have had a con- sistent presence in the industry. But, Sooch said, “in the last five years, I’ve seen more women in venture capital than I’ve seen before,” she said. As women rise through the ranks, there will be more opportunities, said Jan Garfin- kle, managing partner of Ann Arbor-based Arboretum Ventures L.L.C. and past president of the Michigan Venture Capital Association. But, she said, women may steer away from startups or VC firms because of con- cerns over work-family balance. Garfinkle said about a third of Arbore- tum’s 12 portfolio companies have women CEOs. “When they need to work hard, they work incredibly hard,” Garfinkle said. “If they need to get to a soccer game, they go and they work later on that night.” Campbell said she sees evidence of women staying clear of the industry in how many apply each year to participate in Uni- versity of Michigan’s Wolverine Venture Fund, of which she is an advisory board member. “We have a difficult time recruiting women, and men banging down the doors,” she said. A good start to changing that trend would be to educate women entrepreneurs about venture capital and how they can make connections to compete for funding, Paullin-Hebden said. “Getting in the door often takes knowing some people,” she said. Sheena Harrison: (313) 446-0325, [email protected]

Page 18 FALL 2006 SPRING 2007 CRAIN’S DETROIT BUSINESS CDBmagazine.qxp 4/16/2007 10:10 AM Page 1

In the past six years alone, 55 companies have spun out of University of Michigan research. Below are some of our funding partners that have launched great business opportunities from Michigan. With $800 million in annual research, you wouldn't want to miss out on our next great opportunity!

Contact us: UM Tech Trasfer tel: 734.763.0614 http://www.techtransfer.umich.edu DETROIT BUSINESS MAIN 04-23-07 B 20,21 CDB 4/17/2007 4:10 PM Page 1

GROWING A NEW ECONOMY: CRAIN’S GUIDE TO PRIVATE EQUITY, ANGEL INVESTING AND VENTURE CAPITAL Taking the long view view VC veteran and professor discuss how to get Michigan back to its place as a hotbed of entrepreneurism

n 1974 David Brophy wrote a book David, you’ve been preach- in venture capital companies. the East and West coasts. ing the need to diversify the titled Finance, Entrepreneurship and Kinnear: That’s a small fund Kinnear: Michigan used to I economy for more than 30 Economic Development, in which he in California … it’s a start. be the entrepreneurial state. years. You’ve been trying to Brophy: But it doesn’t feed Before autos there was the wrote about the need to diversify hook up local entrepreneurs the bulldog ... I logging industry. with investors since 1979. Is Michigan’s economy away from got a call from a Brophy: Even there finally a light at the end Lansing paper “Michigan back to fur trad- reliance on the auto industry and to of the tunnel? asking what ef- ing. The supre- develop small, technology-based Brophy: The realization is fect the Venture auto jobs me irony is what companies. here that we need new Michigan Fund made us what we sources of economic growth. has had. I said, didn’t go to were was entre- Then, Honda was The resources we have in “Call me back in preneurial fi- known for cute the state are fairly vibrant, seven years.” It’s China or nancing when long-term. We that didn’t exist motorbikes, Detroit including private-sector technology and university need critical Japan. They in other states. was the undisputed technology. But the number mass. We’ve got Now we have car capital of the of experienced entrepre- to turn the Queen went to just the opposite. neurs is still not at critical Mary, and we’re We’ve got a lot of world and venture mass. doing it with a ca- Tennessee and technology com- capital was a term Brophy noe paddle. panies in Ann Why has this diversification barely known We’ve got to Kentucky and Arbor who have taken so long? catch up with to go to the Sili- outside Boston or Kinnear: I’ve been asked what the rest of Ohio and con Valley Bank San Francisco. whose fault all of this is, and the bloody world to get financing. the answer is: The world is doing. In San Kinnear: When Crain’s reporter Mississippi. happened. Jose, you see a the Venture Tom Henderson Brophy: Traditionally, our headline “The Michigan Fund Chinese Are They went to went out to bor- talked to Brophy, biggest enemy was a good year in the auto industry. Coming,” that’s row $200 million, Kinnear right-to-work director of the We had a long history of good news. You they did it University of Michigan’s Center for having it too good in the see it here, it’s states.” through a Ger- auto industry, but it’s come bad news. We’ve man bank. No Venture Capital and Private Equity and got to get to the bank in Michigan home to roost. — David Brophy an associate professor of finance, and Kinnear: Success had its point where would dream of Tom Kinnear, professor of marketing own cost. The cost was we’re thinking it. If you want to malaise. like San Jose. find venture banking, you at UM and executive director of the Brophy: We’ve had pockets Kinnear: Michigan auto have to leave the state. business school’s Zell Lurie Institute, of entrepreneurial activity, in jobs didn’t go to China or Japan. They went to Ten- What was the genesis for the about the past, and future, of Ann Arbor, in Oakland Coun- book? ty, in Grand Rapids, in Kala- nessee and Kentucky and entrepreneurism in the state. mazoo. What we don’t have, Ohio and Mississippi. They Brophy: The question was, how could we start so many Kinnear is also managing director of yet, is a pan-Michigan mis- went to right-to-work states. sion. We have to have that. companies in Michigan, the Wolverine Venture Fund, the David’s book talks about the then plateau and never do critical role Michigan’s banks school’s student-run venture-capital We do have the two state anything? So I spent a year funds, the 21st Century Invest- played in taking a chance on on the East Coast and the fund, and chairman and president of ment Fund and the Venture the fledgling auto industry, and West Coast. Why couldn’t we the state’s Venture Michigan Fund. Michigan Fund, which have a about how risk-averse they be- do it here? What were they total of $204 million to invest came compared to banks on doing differently? Michigan

Page 20 FALL 2006 SPRING 2007 CRAIN’S DETROIT BUSINESS DETROIT BUSINESS MAIN 04-23-07 B 20,21 CDB 4/17/2007 4:11 PM Page 2 ww

had always been ahead of those places. People forget, MIDDLE OF THE PACK now, but those places had A LONG-RUNNING fallen on hard times. (Stan- According to the National Michigan’s rankings for the LOOK AT MICHIGAN VC ford University provost Venture Capital Association, past three years: Michigan improved its In 1979, without sponsorship or Fred) Terman used to com- 2004: No. 20 plain about the brain drain ranking among the 50 funding from his employer, the to the Midwest ... There’s a states and Puerto Rico for 2005: No. 26 University of Michigan, David Brophy put on the first lot of sweet irony in all this. the amount of venture- 2006: No. 22 Michigan Growth capital dollars it received in Capital Symposium, inviting the Kinnear: Or not so sweet. Iowa and South Dakota 2006, although it is still in venture capitalists he could identify around the country to come to So, what happened? the middle of the pack. ranked 50th and 51st in 2006, while Puerto Rico Michigan to meet with would-be Brophy: For one thing, Nos. 1, 2 and 3 from 2004- claimed the last spot the entrepreneurs and hear their pitches Stanford gave free rent to 2006 were California, for funding. About 150 attended. Massachusetts and Texas. two previous years. anyone who’d stay and start Brophy, today the director of UM’s a business. That’s how Center for Venture Capital and Private Hewlett-Packard got started Equity and an associate professor of (in the 1930s). That predates MONEY FROM OUTSIDE MICHIGAN finance, says now that he thought Shockley’s going to the West Out-of-state venture-capital Dunrath Capital Inc., he’d put on the symposium for three Coast. He’d taken his idea to investors that made deals Chicago, 1 deal, $2 million or four years “and by then everyone would have gotten the point.” Bell Labs in New Jersey and in Michigan in 2006: Concentric Equity Partners, On May 16-17, the 26th Growth they let him walk. He went to Hinsdale, Ill., 1 deal, $1.25 Perseus L.L.C., Washington, Capital Symposium will be held at the California and that was the million beginning of Silicon Valley. 1 deal, $10 million Marriott Resort at Eagle Crest in Prism Capital, Cleveland, 1 (In 1956, William Shock- Pharos Capital Group L.L.C., Ypsilanti. About 450 are expected to deal, $340,000 ley, who was convinced Dallas, 1 deal, $9 million attend, including representatives VantagePoint Venture from more than 65 North American there was a business in River Cities Capital Funds, Partners, San Bruno, Calif., investment firms, about three-fourths manufacturing semicon- Cincinnati, 2 deals, $7.3 1 deal, $340,000 of them from out of state. They will ductor devices, opened million hear 35 panelists on a variety of Shockley Semiconductor Nationwide Mutual Capital Hopewell Ventures, topics and pitches from 40 young Laboratory in Palo Alto.) L.L.C., Columbus, Ohio, 1 Chicago, 1 deal, $5.5 Midwest firms, 30 from Michigan, in In Massachusetts, all the deal, $290,000 the areas of life sciences, alternative million textile mills had closed. Be- Odin Capital Group, Omaha, energy and information technology cause of right-to-work laws, Pfizer Strategic Investments 1 deal, $290,000 who are seeking funding. all the labor went south and Group, New York City, 1 SBV Venture Partners, Palo Panels will include how institutional overnight there were empty deal $4 million Alto, Calif., 1 deal, investors can best select small and plants. In the late 1940s, Nth Power, San Francisco, $260,000 emerging VC funds; how Michigan there were a lot of cost-plus- 4 deals, $3.8 million Apax Partners Worldwide, and the biopharmaceutical industry 5 percent grants coming out can capitalize on the departure of , Ramat London, 1 deal, NA of Washington. If you were a Aviv Venture Capital Pfizer Inc. from Ann Arbor; emerging Veronis Suhler Stevenson, research professor and you Gan, Israel, 1 deal, $2.5 market trends for new tech-based New York City, 1 deal, NA wanted to build a new de- million startups; investing in alternative vice, you put a post-doc into energy; and the changing landscape story about Michigan being an empty factory building. did. We had the aircraft in- of venture capital. Kinnear: And that became happy to kiss the aviation industry here. We built all the For information, send an e-mail to Route 128. dustry goodbye. Liberator bombers in World Mary Nickson at mnickson@umich. War II. But we couldn’t wait edu, or call her at (734) 615-4424. Brophy: Every opportunity Rick Snyder (an Ann Arbor to get rid of them and get — Tom Henderson venture capitalist) tells the we took to reject things, we back to making cars.

CRAIN’S DETROIT BUSINESS SFPRINGALL 20062007 Page 21 DETROIT BUSINESS MAIN 04-23-07 B 22,23 CDB 4/17/2007 4:48 PM Page 1

GROWING A NEW ECONOMY: CRAIN’S GUI 66 VC VC succ succ

ichigan’s venture-capital industry has begun to gain momentum, M but success stories have been growing for years. Here are six examples of companies that turned a good idea into venture-capital success: Arbortext: The big payoff Arbortext Inc., a maker of business editing and publishing software, was founded in 1982 by Jim Sterken, Paul Grosso and David Rodgers, computer sci- entists who graduated from the University of Michigan. The company was launched to prominence in 1991, when the U.S. Depart- ment of Defense adopted one of its publishing systems. Five years later, Arbortext landed a $6.3 million round of equity financing through Palo Alto, Calif.-based Norwest Venture Capital. Two years later, it secured $10.25 million in second-round financing and in 2003 received $8.75 million from a variety of venture-capital investors, including $4.75 million from GIC Special In- BIOTECHNOLOGY vestments Pte. Ltd., an investment arm of the government of Singapore. MEDICAL DEVICES The company was bought for $190 million in 2005 by Needham, Mass.-based Para- LIFE SCIENCES metric Technology Corp. At the time of its PATENTS purchase, Arbortext had 1,700 customers, 250 employees and generated $40 million in LICENSING/FTOs annual revenue. — Bill Shea VENTURE CAPITAL M&A/JOINT VENTURES PIPES/REVERSE MERGERS Cerenis: Bringing home $83.5M Cerenis Therapeutics Inc. has raised $83.5 IT’S MORE THAN JUST THE LAW. million in Series A and B funding over the past two years. + The company develops drugs that boost LAW We closed nine Venture Capital financings in first quarter 2007. We actively connect levels of high-density lipoprotein or HDL, our clients to new sources of funding, IP, the good cholesterol that helps rid the hu- and exit opportunities. Now Miller Canfield man body of bad cholesterol, called low- is opening an office in Cambridge, density lipoprotein or LDL, that causes car- Massachusetts with Ray Arner (IP) diovascular disease. and Anne Marie Cook (Corporate), Two of the top executives at Cerenis are two of Massachusetts' most prominent former employees of Esperion Therapeutics. biotech lawyers. They left Esperion when it was acquired by Pfizer Inc. in 2004. Cerenis was launched in Raymond G. Arner Phillip D. Torrence [email protected] [email protected] 2005. Drugs known as statins have sales of Anne Marie Cook Harold J. Decker more than $15 billion annually. Such older [email protected] [email protected] cholesterol drugs have been aimed at re- One Broadway, 14th Floor, Cambridge, MA 02142 617/401-2358 WWW.MILLERCANFIELD.COM ducing low-density lipoprotein, the choles-

Page 22 FALL 2006 SPRING 2007 CRAIN’S DETROIT BUSINESS DETROIT BUSINESS MAIN 04-23-07 B 22,23 CDB 4/17/2007 4:46 PM Page 2

N’S GUIDE TO PRIVATE EQUITY, ANGEL INVESTING AND VENTURE CAPITAL ccessccess storiesstories Sensicore: Retools for revenue NanoBio: Products from a failed experiment

Seven years of zero revenue didn’t keep If at first you don’t succeed in landing oil and solvent and coated with a lubricant. Ann Arbor-based Sensicore venture capital, try, try again to develop a The product didn’t work. Inc. from pushing forward. product that will impress investors enough However, Baker and the researchers Founded in 2000, the to write a check. found another application for the product: premise behind Sensi- One company that knows that well is destroying bacteria. core’s main products was Ann Arbor-based NanoBio Corp. NanoBio has several products in various simple: develop handheld The company received $30 million last stages of Food and Drug Administration-re- devices that could quickly August from Washington private-equity quired testing. The first two products are and accurately analyze firm Perseus L.L.C. used to treat cold sores and nail fungus. blood. The technology was NanoBio was founded in 1999 as a result Another is a nasal swab that delivers vac- licensed from the Univer- of an experiment gone wrong at the Michi- cinations and could be used without refrig- sity of Michigan. gan Nanotechnology Institute for Medicine and eration in developing countries. Baker re- A good idea, said Biological Sciences. ceived a $6.3 million grant from the Gates Malcolm Kahn, NanoBio’s founder and the director of the Foundation to develop that product. president and CEO center, James Baker, was looking for a The promise of NanoBio’s products has of Sensicore, but medium to deliver genetic material into helped it win large grants in addition to too costly given the bacteria. venture capital, including one for $3.2 mil- Food and Drug Administra- Baker and his team of researchers came lion from the U.S. Department of Defense and tion Sensicore’s water approvals needed. up with an emulsion of tiny droplets about another of $11.8 million by the U.S. Defense analyzer But Sensicore didn’t 1/400th the width of the average human Advanced Research Projects Agency. give up. hair. The emulsion was made up of soybean — Andrew Dietderich In 2004, the company retooled the device to analyze water quality. Sensicore has raised $27.5 million in venture capital since 2000 and revenue is beginning to flow. The company had revenue QuatRx Pharmaceuticals: $70M in venture capital of about $2 million in 2006 and expects about $15 million this year. Since being founded in 2000, Ann Arbor- Healthcare Ventures, TL Ventures, MPM Ann Arbor-based Ardesta L.L.C. was the based QuatRx Pharmaceuticals Co. has raised Capital, InterWest Partners, Stockwell Capital first company to finance Sensicore. Others more than $70 million in venture capital — and Twilight Ventures. followed in subsequent rounds. one of its largest rounds, $31 million, was The company has six products in various — Andrew Dietderich raised in December 2004. stages of development. But its most devel- QuatRx was started by pharmaceutical oped is called fispemifene, which is de- industry veterans Robert Zerbe, Stuart signed to increase testosterone levels in Dombey, Randy Whitcomb and Christo- men. QuatRx recently completed a second pher Nicholas to develop prescription round of clinical tests for the drug. In phase drugs to treat endocrine, metabolic and car- II testing, 78 percent showed increased diovascular disorders. testosterone levels. The company expects terol responsible for hardening arteries. Investors in QuatRx have included phase II testing to finish by the end of 2007. Cerenis is using its venture-capital mon- Thomas Weisel Healthcare Ventures, Frazier — Andrew Dietderich ey to fund proof-of-concept and preclinical trials with hopes to have an HDL-related drug on the market in about five years. Officials with Cerenis have said that in- Esperion Therapeutics: A $1.2B exit corporation in the U.S. would help the company go public on the Nasdaq exchange Esperion Therapeutics Inc. was started in the blockbuster drug Lipitor. when and if it decides to go that route. 1998 by Roger Newton Esperion initially was backed by $15 mil- Investors in Cerenis are TVM Capital, and three colleagues, all lion in venture capital. The company raised which has offices in Munich, Germany, former researchers from another $200 million by going public in 2000 and Boston, Mass.; Paris-based Sofinnova Warner-Lambert/Parke- and used the money to continue developing Partners; Stockholm-based HealthCap; San Davis (now owned by Pfiz- cholesterol drugs. Francisco-based Alta Partners, Ann Arbor- er), after being recruited In February 2004, Pfizer bought Esperion based EDF Ventures, Tokyo-based NIF SMBC by David Scheer, a ven- for about $1.2 billion. Pfizer said it was buy- Ventures Co. Ltd., and New York-based Or- ture capitalist with a ing Esperion to get control of the compa- biMed Advisors L.L.C. self-named firm. Newton Newton ny’s promise of cholesterol drugs. — Andrew Dietderich and his team of researchers had developed —Andrew Dietderich

CRAIN’S DETROIT BUSINESS SFPRINGALL 20062007 Page 23 DETROIT BUSINESS MAIN 04-23-07 B 24 CDB 4/17/2007 4:39 PM Page 1

GROWING A NEW ECONOMY: CRAIN’S GUIDE TO PRIVATE EQUITY, ANGEL INVESTING AND VENTURE CAPITAL Looking overseas The pros and cons of going public on foreign stock exchanges

BY TOM HENDERSON made U.S. IPOs a less-favored patent protection, according CRAIN’S DETROIT BUSINESS exit strategy, though things to Richard Kotlow, a partner may be heating up a bit. In in the New York office of UHY hen CEOs of South- the first quarter of this year, L.L.P., a national accounting IMAGES.COM east Michigan start- 53 U.S. companies had public firm that did auditing work W up companies look offerings, up 20 percent over for five U.S. companies that MONEY FROM ABROAD for capital at the monthly the same period last year, and went public on AIM in 2005- meetings of the Great Lakes Local companies or venture-capital 44 of the companies had their 2006. firms that have looked to foreign Angels or meet stock issue at prices Fewer rules for going markets include: with venture- above estimates made public, which means lower Novi-based Incat, an engineering capital firms, by their investment costs and a shorter time to services firm, went public on the they will invari- bankers. market. Alternative Investment Market as ably be asked As IPOs here de- Companies can go public Incat plc in 2004 before being about their exit clined, U.S. companies with much smaller deals than bought and taken private by strategy — how Singapore-based Tata Technologies started exploring pub- investment bankers in the U.S. and when in- in 2005. lic offerings on foreign are willing to look at. vestors can get Asterand plc sells human-tissue markets, such as the Lower annual reporting their money back samples to researchers worldwide. “There was Toronto Ventures Ex- costs. Companies generally and realize a In 2005, it became the first tenant change, the Nasdaq don’t have to file quarterly re- profit. of TechTown, the Wayne State probably a equivalent of the ports on foreign markets. “There was University-affiliated incubator and Toronto Stock Exchange; Foreign investors are tech park, and later that year went probably a preju- prejudice in the Alternative Invest- more interested in long-term public on the London Stock dice in the 1990s ment Market that is growth and less fixated on Exchange (LSE: ATD.L). to thinking ini- the 1990s to part of the London near-term share price, which Ian Bund, chairman of Plymouth tial public offer- Stock Exchange; or reduces pressure on manage- Management Co., an Ann Arbor- ings were the based venture-capital firm, is also Asian markets. ment, according to Warren best way to go,” thinking co-founder of a joint Australian-U.S. According to local Harris, the CEO of Novi- said Justin venture capitalists VC firm, Innovation Capital. Last initial public based Incat. Klimko, a share- and CEOs who have April, that company took one of its portfolio companies in Australia, holder of Detroit- taken companies pub- offerings The cons: Cap-XX Ltd. a maker of based Butzel Long lic overseas, like supercapacitors to replace P.C., and a spe- were the Charlie Rothstein of Immunity from Sar- conventional batteries in a wide cialist in merg- Farmington Hills- banes-Oxley is often short- range of products, public on the AIM ers and acquisi- best way to based Beringea L.L.C., lived. Once U.S. companies market. tions and and Randal Charlton have $10 million in assets and Farmington Hills-based Beringea securities law. of Asterand plc in De- 500 shareholders, they have L.L.C. has used the AIM market to “Now, there’s so go.” troit, there are pros to abide by SOX . take some of its portfolio much private-eq- — Justin Klimko, and cons to going pub- Less liquidity. It can be companies public, including , a British-based uity money out Butzel Long lic on foreign markets. harder to buy and sell large Cardpoint plc provider of electronic cash blocks of stock on smaller there, it’s easier transactions for retailers. to find a strategic The pros: markets. Southfield-based FMF Capital Analysts may ignore buyer, and that’s become Spin-offs in the U.S. gen- Group Ltd., a subprime mortgage more popular.” erally need to have product you. If you’re listed in Lon- lender, went public on the Toronto The bursting of the tech on the market and generate don but the newsworthy part Stock Exchange in March 2005, but bubble and the collapse of the revenue to have a successful of your business is your lab hit by rising interest rates, it stopped Nasdaq market in 2000, fol- IPO, while foreign markets space in downtown Detroit, paying dividends that November and lowed by the Sarbanes-Oxley give more weight to an expe- foreign-based analysts aren’t is involved in class-action lawsuits in Act of 2002 and its costs and rienced management team, going to take the time or both the U.S. and Canada. regulatory burdens have also good technology and strong See Overseas, Page 26 — Tom Henderson

Page 24 FALL 2006 SPRING 2007 CRAIN’S DETROIT BUSINESS CDBmagazine.qxp 4/16/2007 2:46 PM Page 1 DETROIT BUSINESS MAIN 04-23-07 B 26,27 CDB 4/18/2007 4:54 PM Page 1

GROWING A NEW ECONOMY: CRAIN’S GUID Directory

Looking for venture capital or angel investors? Crain’s has you covered. We’ve listed venture-capital and private-equity firms, angel investing groups and support- ing organizations. Venture-capital firms Apjohn Ventures 259 E. Michigan Ave., Suite 409 Kalamazoo (269) 349-8999 www.apjohnventures.com Managing directors/partners: Mina Patel Sooch, founder and general partner Donald Parfet, founder and general partner Year founded: 2003. Funds under management: $15 million. Regional/market-segment focus: Midwest; health care, research and development. New funds: Yes, goal is $50 million, started fundraising in January. Business Law EXPECT Business Restructuring MORE Litigation Estate Planning

McDonald Hopkins provides fully integrated, strategic solutions to capital Overseas finance business matters. ■ From Page 24 • Structuring and financing business transactions spend the money on a visit, Charlton said. • Workouts, restructuring and sales The result? Less media coverage and a lan- • Securities and regulatory compliance guishing share price. • Fund formation, administration and structuring If a company remains dependent on • Public and private issuances of debt and North American revenue, that can lead to equity securities problems with shareholders overseas not • Corporate governance and tax matters understanding the market, according to Harris. Complex currency fluctuations. You no longer have to worry about just the dol- Comprehensive and lar, Rothstein said, you have to worry Sophisticated Legal Solutions about the euro or the Brazilian real or the Chinese yuan and how they are interacting with each other. 39533 North Woodward Ave. Markets in places such as Hong Kong, Suite 318 Moscow, Shanghai and Sao Paolo present Bloomfield Hills, MI 48304 more political-based risk than do domestic 248.464.5070 markets. Tom Henderson: (313) 446-0337, thenderson Chicago | Cleveland | Columbus | Detroit | West Palm Beach mcdonaldhopkins.com @crain.com

Page 26 FALL 2006 SPRING 2007 CRAIN’S DETROIT BUSINESS DETROIT BUSINESS MAIN 04-23-07 B 26,27 CDB 4/18/2007 4:54 PM Page 2

N’S GUIDE TO PRIVATE EQUITY, ANGEL INVESTING AND VENTURE CAPITAL ryry

Arbor Partners Managing directors/partners: co-founder Jan Garfinkle, managing director Year founded: 2001. 130 S. First St. Timothy Petersen, managing director Funds under management: $100 million. Ann Arbor Year founded: 2002. Regional/market-segment focus: Midwest; re- (734) 668-9000 Funds under management: $24 million. search and development, small technology. www.arborpartners.com Regional/market-segment focus: Upper Mid- Managing directors/partners: west; medical devices, diagnostic and Beringea L.L.C. Donald Walker, managing director health care services. Richard Crandall, founding partner 32330 W. 12 Mile Road Farmington Hills Richard Eidswick, founding partner Ardesta L.L.C. (248) 489-9000 Year founded: 1996. www.beringea.com Funds under management: $38 million. 201 S. Main St., 10th floor Ann Arbor Managing directors/partners: Regional/market-segment focus: Midwest re- (734) 994-7000 Charles Rothstein, senior gion; information-technology. managing director and founder www.ardesta.com David Eberly, senior Arboretum Ventures Managing directors/partners: managing director and founder Steve Johns, co-founder and head of Malcolm Moss, senior managing director 334 E. Washington St. corporate and business development and founder Ann Arbor Chris Rizik, co-founder and board Alexander Spiro Jr., senior (734) 998-3688 member managing director and founder www.arboretumvc.com Rick Snyder, chairman, CEO and See Directory, Page 28

CRAIN’S DETROIT BUSINESS SFPRINGALL 20062007 Page 27 DETROIT BUSINESS MAIN 04-23-07 B 28,29 CDB 4/18/2007 4:00 PM Page 1

GROWING A NEW ECONOMY: CRAIN’S GUIDE TO PRIVATE EQUITY, ANGEL INVESTING AND VENTURE CAPITAL

Regional/market-segment focus: technology. retail, food, distribution. Directory Midwest, national; energy. New funds: One in the $50 mil- New funds: Peninsula Fund IV, ■ From Page 27 lion-$75 million range. $335 million. EDF Ventures Year founded: 1988 Plymouth Venture Partners Funds under management: 425 N. Main St. North Coast Technology 3840 Packard Road, Suite 110 $270 million. Ann Arbor Investors L.P. Ann Arbor Regional/market-segment focus: (734) 663-3213 206 S. Fifth Ave., Suite 550 (734) 747-9401 U.S./U.K.; health care, media. www.edfvc.com www.plymouthvc.com New funds: Beringea Media Managing directors/partners: Ann Arbor (734) 662-7667 Managing partners/directors: Partners, goal is $150 million. Mary Campbell, partner www.northcoastvc.com Ian Bund, president and founder Managing directors/partners: Year founded: 2003. Blue Chip Venture Co. Mike DeVries, partner Lindsay Aspegren, co-founder Beau Laskey, partner Funds under management: Based in Cincinnati Hugo Braun, co-founder Year founded: 1987. $17 million. Office in Ann Arbor Year founded: 1999. Funds under management: Regional/market-segment focus: 130 S. First St. Funds under management: $105 million. Michigan, Great Lakes. (734) 668-2282 $130 million. Regional/market-segment focus: www.bcvc.com Regional/market-segment focus: Midwest, southern California; Managing directors/partners: Michigan and the Midwest; Seneca Partners health care, information tech- John McIlwraith, managing high tech. nology. 300 Park St., Suite 400 director New funds: A third round of Birmingham John Wyant, managing director $56 million. Oracle Capital Partners L.L.C. (248) 723-6650 Year founded: 1991. www.senecapartners.com Funds under management: More 500 Griswold St., Suite 2450 Managing directors/partners: than $600 million. Endurance Ventures Detroit Rajesh Kothari, managing Regional/market-segment focus: (313) 965-9950 122 S. Main St., Suite 200 director Midwest, Mid-Atlantic; soft- www.oracle-capital.com Ann Arbor Michael Skaff, managing ware, technology infrastruc- Managing partners/directors: (734) 996-4434 director ture, media, health care. David Morris, managing www.enduranceventures.com Anthony Zambelli, managing director Managing directors/partners: director Henry Brandon, managing Bridge Street Capital Ron Reed, managing partner Thomas Cox, managing director director Horace Martin, partner Partners L.L.C. Year founded: 2006. Ron Reed, managing director David Thomas, partner Funds under management: David Thomas, managing 40 Pearl St. NW, Suite 1040 Thomas Pennell, partner $20 million. director Grand Rapids Year founded: 2004. Regional/market-segment focus: Year founded: 2002. (616) 732-1050 Funds under management: Would Michigan; industrial and man- Funds under management: www.bridgestreetcapital.com not disclose. ufacturing, retail and con- $20 million Managing directors/partners: Regional/market-segment focus: sumer products, commercial Regional/market segment focus: Bill Kaczynski, managing Investments have included soft- services, health care services Midwest; health care products, director ware, technology and manufac- and technology. services, devices and technolo- John Meilner, managing turing companies in Michigan, gy. director California and Connecticut. Year founded: 2005. Peninsula Capital Funds under management: Sloan Ventures L.L.C. $40.7 million. MacBeedon Partners L.L.C. Partners L.L.C. 430 N. Old Woodward Ave. Regional/market-segment focus: 2445 S. Industrial 535 Griswold St., Suite 2050 Midwest; industrial manufac- Birmingham; (248) 540-9660 Ann Arbor Detroit turing, distribution and logis- www.sloanventures.com (734) 222-4655 (313) 237-5100 tics, consumer products, health Managing directors/partners: www.macbeedon.com www.peninsulafunds.com care and business services. Managing directors/partners: Managing directors/partners: Jeffrey Sloan, CEO and Richard Beedon, founder William Campbell, chairman managing director DTE Energy Ventures Inc. and CEO and founder Richard Sloan, partner Christopher Cameron, partner 2000 Second Ave., 852 WCB Kevin Wittrup, partner Scott Reilly, president and John Silvering, partner Detroit Year founded: 2007. chief investment officer (313) 235-7881 Funds under management: William McKinley, executive Year founded: 1990. www.dteenergyventures.com $2 million. vice president and founder Funds under management: Would Managing directors/partners: Regional/market-segment focus: Year founded: 1995. not disclose. Ganesh Ananth, manager Michigan; advanced automo- Funds under management: Regional/market-segment focus: Year founded: 1995. tive, transportation, alterna- $800 million. Michigan and California; no Funds under management: tive energy, health care, soft- Regional/market-segment focus: specific market-segment/indus- $100 million. ware and information Industrial, consumer products, try focus.

Page 28 FALL 2006 SPRING 2007 CRAIN’S DETROIT BUSINESS DETROIT BUSINESS MAIN 04-23-07 B 28,29 CDB 4/18/2007 5:18 PM Page 2

GROWING A NEW ECONOMY: CRAIN’S GUIDE TO PRIVATE EQUITY, ANGEL INVESTING AND VENTURE CAPITAL

Southwest Michigan Life Regional/market-segment focus: Ross School of Business Richard Goff, managing Midwest; medical, specialty University of Michigan director Science Fund manufacturing, telecommuni- 701 Tappan St. Gary Stark, managing director 241 E. Michigan Ave. cations, health care. Ann Arbor Funds under management: Would Kalamazoo (734) 615-4419 not disclose. (269) 377-0597 Waypoint Ventures/ www.zli.bus.umich.edu/wvf Regional/market-segment focus: www.southwestmichigan Managing directors/partners: Midwest; manufacturing and first.com RPM Ventures Thomas Kinnear, managing distribution, communications, Managing directors/partners: 320 N. Main St., Suite 400 director information technology, health Patrick Morand, managing Ann Arbor Year founded: 1997. care, and consumer and finan- director cial services. (734) 332-1700 Funds under management: Year founded: 2004. www.wpvc.com $3.5 million. Funds under management: Managing directors/partners: $50 million. Regional/market-segment focus: Forest Hill Partners Marc Weiser, managing director Regional/market-segment focus: 300 E. Long Lake Road, Suite 200 Tony Grover, managing Michigan and California. Southwest Michigan, life Bloomfield Hills director sciences. (248) 798-6915 Year founded: 2000. www.foresthillpartners.com Funds under management: Private-equity firms Managing directors/partners: TGap Ventures L.L.C. $15 million. Michael Sullivan, partner 259 E. Michigan Ave., Suite 208 Regional/market-segment focus: John Carretta, partner Kalamazoo U.S.; automotive, manufactur- Alpha Capital Partners Ltd. Earl Kansier, partner (269) 217-1999 ing, software, information tech- Ann Arbor Office Year founded: 2002. www.tgapventures.com nology, high tech. 2593 Walnut Road Managing directors/partners: Funds under management: Would Ann Arbor Jack Ahrens II, partner not disclose. Peter Farner, partner Wolverine Venture Fund (734) 994-1003 Regional/market-segment focus: Year founded: 2002. Samuel Zell & Robert H. Lurie www.alphacapital.com Midwest; industrial and manu- Funds under management: Institute for Entrepreneurial Managing directors/partners facturing firms. $25 million. Studies Andrew Kalnow, president See Directory, Page 30

CRAIN’S DETROIT BUSINESS SFPRINGALL 20062007 Page 29 DETROIT BUSINESS MAIN 04-23-07 B 30,31 CDB 4/18/2007 4:01 PM Page 1

GROWING A NEW ECONOMY: CRAIN’S GUIDE TO PRIVATE EQUITY, ANGEL INVESTING AND VENTURE CAPITAL manufacturing, distribution, fi- Angel investor groups TALK THE TALK Directory nancial and industrial service ■ Whether you want to become a From Page 29 companies. venture capitalist, attract Ann Arbor Angels investments, or just sound like Huron Capital Partners L.L.C. www.annarborangels.com a finance wonk, you’ll need to Questor Management Co. 500 Griswold, Suite 2700 Michael Cole, managing know the lingo. Here are some 2000 Town Center, Suite 2450 definitions to get you going. Detroit director, [email protected] Southfield Angel investor: An individual (313) 962-5800 Meetings: The group meets as (248) 213-2200 who provides capital to one or www.huroncapital.com members discover potential more startup companies. The www.questorfund.com Managing directors/partners: deals for companies based in or individual is usually affluent or Managing directors/partners: Brian Demkowicz, managing around Ann Arbor. Michael has a personal stake in the Robert Denious, managing partner and co-founder Cole, managing director, is also success of the venture. Such director investments are characterized Michael Beauregard, partner vice president of the Bank of Ann Albert Koch, managing by high levels of risk and a Peter Mogk, partner Arbor’s technology industry potentially large return on director John Higgins, partner group, which provides banking investment. Wallace Rueckel, managing Funds under management: services to early-stage compa- Deal flow: The rate at which director $257 million nies. investment offers are Funds under management: presented to funding Regional/market-segment focus: institutions. Makes investments in U.S. and $1.2 billion. First-stage capital: Money Canada with preference for Aurora Angels provided to an entrepreneur chemical, education and health Telemus Capital Partners Smart Zone who has a proven product, to care. 101 W. Lakeshore Drive start commercial production Two Towne Square, Suite 800 and marketing, not covering Southfield Houghton market expansion, de-risking [email protected], Long Point Capital (248) 827-1800 or acquisition costs. www.auroraangels.com 26700 Woodward Ave. www.telemuscapital.com Second-stage capital: Capital Jon Leinonen, provided to expand marketing Royal Oak Managing directors/partners managing member, and meet growing working (248) 591-6000 Gregory Buck, managing [email protected] capital need of an enterprise www.longpointcapital.com director that has started production but Meetings: Aurora Angels is a Managing directors/partners: Paul Schapira, director does not have cash flow new group, and has not yet es- sufficient to take care of its Gerry Boylan, managing Funds under management: growing needs. director $80 million. tablished a regular meeting Third-stage capital: Capital John Morgan, managing Regional/market-segment focus: schedule. provided to a company with an director Midwest, mainly Michigan. enterprise that has established Ira Starr, managing director commercial production and First Angels Bill Ughetta, managing direc- basic marketing setup, typically Wind Point Partners 241 E. Michigan Ave. for market expansion, tor Kalamazoo acquisitions or product Funds under management: One Towne Square, Suite 780 (269) 553-9588 development. $315 million. Southfield www.swmfirst.com Private equity: Equity Regional/market-segment focus: (248) 945-7200 securities of companies that www.wppartners.com Paul Neeb, vice president, are not listed on a public National with a focus on the Managing directors/partners: Southwest Michigan First exchange. Transfer of private Midwest and South; services, [email protected] equity is strictly regulated; distribution and manufacturing. Nathan Brown, managing therefore, any investor looking director Meetings: Group meets month- to sell his or her stake in a Bob Cummings, managing ly, with one or two companies private company has to find a Strength Capital Partners director giving pitches of 20-30 minutes buyer in the absence of a marketplace. Returns on 350 N. Old Woodward Ave., Jim Forrest, managing director each. The group was founded in private equity generally occur Suite 100 Jeff Gonyo, managing director the fourth quarter of last year, in three ways: a merger or Birmingham Rich Kracum, managing and Neeb expects a first invest- sale, an initial public offering, (248) 593-5800 director ment in the next 30-60 days. or a recapitalization. Michael Solot, managing Venture capital: Investments www.strengthcapital.com made in startup firms and Managing directors/partners: director Grand Angels small businesses with Mark McCammon, managing Jim TenBroek, managing exceptional growth potential, partner director 10720 Adams St. typically in exchange for a Funds under management: Holland stake in the company. Michael Bergeron, managing (616) 546-4559 Managerial and technical partner $2 billion. expertise are often also Funds under management: Regional/market-segment focus: www.grandangels.org provided. Venture capital is $170 million. Business services, consumer John Jackoboice, board also called risk capital. Regional/market-segment focus: products, health care, industri- chairman Source: Fundingpost.com Midwest; consumer products, al products. Contact: While not limited ex-

Page 30 FALL 2006 SPRING 2007 CRAIN’S DETROIT BUSINESS DETROIT BUSINESS MAIN 04-23-07 B 30,31 CDB 4/18/2007 4:01 PM Page 2

GROWING A NEW ECONOMY: CRAIN’S GUIDE TO PRIVATE EQUITY, ANGEL INVESTING AND VENTURE CAPITAL

clusively by geography, the Brighton What it does: The state’s eco- Detroit group focuses on investing in (810) 224-4310 nomic-development agency (313) 833-0100 companies in Kent, Ottawa or www.cleantech.com helps companies that are inter- www.nextenergy.org Muskegon counties. Companies Nicholas Parker, chairman and ested in doing business in James Croce, CEO can submit applications for founder Michigan find financing and What it does: NextEnergy is a funding consideration by using What it does: CleanTech Ven- other resources to expand, relo- nonprofit that helps businesses the online form on the group’s ture Network provides Web- cate or improve relationships commercialize clean energy technologies. Web site. based information to about with state agencies. 1,300 members about such things as companies looking for Michigan Homeland The Right Place Program Great Lakes Angels Inc. investment and recently com- 568 Woodway Court, Suite No. 1 pleted deals. It also puts on Security Consortium 161 Ottawa Ave. NW Grand Rapids Bloomfield Hills three trade shows a year — one (616) 443-9092 (248) 540-3758 in San Francisco, one on the www.mihsc.org (616) 771-0325 www.glangels.org East Coast and one in Europe Thomas Hines, president and [email protected] David Weaver, president — and publishes online and vice chairman www.rightplace.org [email protected] print publications. [email protected] Birgit Klohs, president Meetings: Group has monthly What it does: The MIHSC is a What it does: The Right Place is dinner meetings that include Great Lakes nonprofit that aims to expand an economic-development orga- networking and presentations the homeland security industry nization for greater Grand by companies seeking funding. Entrepreneur’s Quest in the state by providing net- Rapids, and helps businesses 330 E. Liberty St. working, education and assis- interested in locating or start- Ann Arbor Support organizations tance finding venture capital. ing a business in the region (734) 647-8951 link to potential partners, ven- [email protected] ture capital and other re- Ann Arbor Spark www.gleq.org MISTA – Michigan sources. 330 E. Liberty St. Art DeMonte, executive Small Tech Association Ann Arbor director 655 Phoenix Drive (734) 761-9317 What it does: Great Lakes Entre- Southwest Michigan First Ann Arbor www.annarborspark.org preneurs is a nonprofit that 241 E. Michigan Ave. Michael Finney, president helps startups with business (734) 528-6258 johnbedz@michigansmalltech. Kalamazoo and CEO plans, honing their pitches and (269) 553-9588 What it does: Ann Arbor Spark connecting with investors com www.southwestmichiganfirst. works with businesses, acade- through an annual business www.michigansmalltech.com com mia, government and commu- plan competition. Information John Bedz, director Ronald Kitchens, president nity investors to help startups on how to participate in the What it does: MISTA is a trade and CEO find space, equipment and edu- competition can be found by organization of micro and nan- What it does: Helps companies cational resources. visiting the group’s Web site. otech companies that aims to expand the small-tech sector in that are interested in doing the state. business in and around Kala- Automation Alley MichBio mazoo find financing and other 2675 Bellingham 330 E. Liberty St. New Enterprise Forum resources to expand or relocate Troy Ann Arbor to the area. (248) 457-3200 (734) 615-9670 of Ann Arbor www.automationalley.com www.michbio.org 425 S. Main St., Suite No. 103 TechTown What it does: With the mission Stephen Rapundalo, executive Ann Arbor of attracting businesses and 440 Burroughs St. director (734) 665-4433 skilled workers to Southeast Detroit What it does: MichBio is a non- newenterpriseforum Michigan, Automation Alley (313) 879-5250 profit trade association aimed @yahoo.com markets the region to compa- at driving life-science industry www.nef.bizserve.com [email protected] nies around the world and growth in the state. What it does: NEF is a nonprofit www.techtownwsu.org helps provide networking, in- that links entrepreneurs with Randal Charlton, interim formation and import-export Michigan Economic potential partners, mentors, executive director opportunities for businesses. Development Corp. capital and other resources What it does: TechTown is a through monthly meetings. nonprofit “entrepreneurial vil- CleanTech Venture 300 N. Washington Square lage” in Detroit’s Midtown that Lansing provides support and access to Network L.L.C. (888) 522-0103 NextEnergy capital to build high-tech com- 322 W. Grand River Ave. www.michigan.org/medc 461 Burroughs St. panies.

CRAIN’S DETROIT BUSINESS SFPRINGALL 20062007 Page 31 DETROIT BUSINESS MAIN 04-23-07 B 32 CDB 4/18/2007 3:56 PM Page 1

GROWING A NEW ECONOMY: CRAIN’S GUIDE TO PRIVATE EQUITY, ANGEL INVESTING AND VENTURE CAPITAL Inside pitches What to do – and what not to do – when you get face time with a potential investor

ou’ve got a product and a Have a plan to get into the mar- tition. There is always competi- great management team. ket. Having a better mousetrap tion. Know who it is and tell why WITHOUT A NET Y But what you don’t have isn’t the point; getting it distrib- you can outsell it or displace it. Now that you know how to yet is money. uted and on store shelves is. And “Convince your audience you’re pitch, here are a couple of If you’re seeking it from a pri- what is your marketing strategy better than the competition,” venues to give it a shot: vate investor, what you’ll need for growing sales? Weaver said. ■ most is an excellent pitch. Be specific about the money Say you’re going to use this The Great Lakes David Weaver, president of the you need now, and what you’re going round of funding to pay down debt. Angels, a collection of 30- 40 high net worth Great Lakes Angels, and Rajesh to use it for. Don’t just say you’re “New money doesn’t want to individuals seeking Kothari, managing director of going to grow the business. hear that. That’s looking back- ward. Investors want to move attractive investment Birmingham-based venture-capi- That’s obvious. But will the mon- forward. You pay debt out of pro- opportunities, meets one tal firm Seneca Partners Inc., have ey be used to expand your office ceeds,” Weaver said. evening a month on a heard their fair share, and gave space? Hire a marketing direc- Crain’s the lowdown on what to Try to cover everything. The members-only basis. For tor? Move a prototype into pro- information on joining or do — and what not to do — when model is the elevator pitch where duction? presenting, contact David you finally get the ear of a poten- you’ve got a potential investor Have detailed projections on fu- Weaver, Great Lakes tial investor. cornered for a few floors and you ture revenue, expenditures and prof- need to hit the high points. “Your Angels’ president, at it for the next 4-5 years. Do not be only job is get someone excited [email protected]. overly optimistic. Angels smell enough to say ‘I want to learn ■ Troy-based Automation Do padded financial figures the way more,’ ” Kothari said. Alley hosts a meeting of Talk about the big issue — how security dogs at the airport smell Try to sneak in a few more min- its Entrepreneurial are you going to make money? marijuana — immediately and utes. “Investors all have ADD,” Initiative of Southeast What is the market need and why with extreme accuracy. Kothari said. “Twenty minutes Michigan every other can you solve it? “If you start Listen to criticism and use it. into a meeting, we’re looking at month. Companies get 10 with the why at the beginning, Angels often ask tough questions our watches thinking of our next minutes to tell who they we’re on the same page,” said during Q&A sessions, and reserve meeting. We’re ruthless with our are and why they deserve Weaver. the really tough ones for individ- time.” money, followed by a Mention patents if you have ual meetings afterwards. They Expect to walk out with checks. grilling from potential them. Investors love barriers to will see holes in your business Investors believe in two things: investors. entry for the competition. plan, problems with your market- making money and due diligence. The meetings are open to They will take their time looking Stress an exit strategy. Angels ing and mistakes in your pricing. the public. Interested at you and your company. don’t want to hear that you’re in- Above all, be passionate. If you entrepreneurs should send Use slides with too much infor- terested in building a business to aren’t a true believer, who will an executive summary of mation crammed in. No one past pass on to the kids. They are not be? the company or product to the first few rows or tables is go- loan officers. They invest in com- Aysia Green at ing to be able to read anything panies who plan to sell out or go greena@automation but big print or figure out any- alley.com. There is a Web public. That’s when investors get Don’t thing but large diagrams. And site, www.eisem.org, that paid back. Who would buy your don’t use more than 20 slides. has information on past business, when and why? Talk too long about the technol- Have too many market applica- and future presentations. Talk up any experienced execu- ogy. “Some people get so enam- tions. Investors would rather tives already on board. What have ored with the technology they To register for an event, hear about one or two good ones. call Automation Alley at been their successes? A team in have little time for the big is- Technology entrepreneurs are (800) 427-5100 or go to place or partially in place gives sues,” Weaver said. You can dis- often carried away by what they the calendar section of you a leg up. “You bet on the cuss the technology in depth in see as a wide range of market www.automationalley.com. jockey, not the horse,” said follow-up conversations. possibilities. Investors call that — Tom Henderson Weaver. Avoid talking about the compe- “chasing butterflies.”

Page 32 FALL 2006 SPRING 2007 CRAIN’S DETROIT BUSINESS CDBmagazine.qxp 4/10/2007 4:58 PM Page 1 successCELEBRATING YEARS OF Turnaround Management Consulting • Bankruptcy/Fiduciary Services Operations Consulting & Interim Executive Management • Performance Improvement Low Cost Country Sourcing • Due Diligence Services • Litigation Support & Expert Testimony Forensic Accounting & Fraud Investigations • Business Valuations • Economic Damage Claim Quantiﬁcation Bankruptcy & Insolvency Matters • Investment Banking Services • Debt Restructuring Mergers & Acquisitions • Capital Raising Services

2006 Transaction of the Year Award $250 Million Multi-Billion Dollar Turnaround Management Association – Detroit Chapter Automotive Company Automotive Supplier CM&D Capital Advisors LLC served as investment banker to Hastings Manufacturing Company in Fully established a Business plan, ﬁnancial and has been acquired by this transaction sourcing operation in China operational due diligence on behalf CM&D provided turnaround of interested parties and equity management and ﬁnancial advisory sponsors contemplating investment services to Hastings Manufacturing in the company Company

$100 Million $100 Million Truck Automotive Aluminum

Distribution and Casting and Machining CM&D provided ﬁnancial and has been acquired by Supply Company Company operational advisory and restructuring services to the Company Full business risk and Developed a fully functional operational viability analysis CM&D Capital Advisors LLC Successful emergence from supply base and supply chain leading to a rapid consolidation served as ﬁnancial advisor to Chapter 11 bankruptcy protection KL Industries, Inc. in this transaction initiative in under 150 days

Named CM&D is proud to “Outstanding announce that Turnaround Firm” Van E. Conway, for several years by President, has been one of the nation’s named a Fellow of the leading turnaround American College of management Bankruptcy. publications

c-m-d.com CM&D is a national leader in Certiﬁed Turnaround Professionals

Detroit: Chicago: Dayton: Grand Rapids: Shanghai: 248-433-3100 312-220-0100 937-222-7317 616-742-0840 8621-6101-0312 CDBmagazine.qxp 4/11/2007 9:58 AM Page 1

In Michigan, Green is the New Gold.

If you invested in an alternative energy company ﬁve years ago, you would’ve been considered odd. Today, people would call you a smart entrepreneur. There’s no doubt that alternative energy is the future. It is, indeed, where the money is. Alternative energy companies are certainly pushing the Green needle towards great success; and it’s happening right now in the land of the automobile. Yes, Michigan is fast becoming the hub for the powers of wind, solar, battery and alternative fuels. Companies like United Solar, the world’s largest manufacturer of thin-ﬁlm solar panels and Cobasys, whose battery systems enable hybrid electric vehicles around the world, are typical of the businesses that now call Michigan home.

If you’re looking to build or expand your alternative energy company, it’s a good time to talk to Michigan. To get information on our far-reaching Venture Michigan Fund, contact the Michigan Economic Development Corporation. Call 800 878 7722 or click on michigan.org.

Wherever in the world you compete, Michigan can give you the upper hand.