Automation Alley's Technology Business Accelerator investments have produced nearly 150 new jobs and additional private capital investments of $12.5 million.

That was the word from Thomas Anderson, Automation Alley director of entrepreneurism, in an appearance before the Commerce Committee of the Michigan House of Representatives.

Of those 18 investments, 17 are still making progress, Anderson said.

By company, the investments are:

• 3IS, a Novi firm that recently completed another round of funding totaling $335,000, and is partnered with Menlo Innovations, the Ann Arbor software development firm, to deliver their next version. They have secured subscriptions from Ford, GM, Chrysler and Yazaki, among others.
• SpaceForm, located at Wayne State University’s TechTown in Detroit.  SpaceForm has successfully negotiated to broaden the scope of their technology license, begun to acquire customers (Honda and Harley Davidson among them) and is presently negotiating a merger with another welding technology firm.
• SecureCom Technology, now known as MIST Innovations (for mobility, information, security and technology), is based in Detroit and has first round venture funding from Oracle Capital. Their employment has grown from two to 18, trending toward 30 by year end. They have five beta test sites in operation, including the IT center for City of Pontiac and Pennsylvania DOT. They have also signed a joint marketing agreement with Verizon.
• JADI, developing technology that originated at Oakland University, has expanded DOD funding to include additional sensors on their autonomous robotic platforms, with $2 million.
• Saphran now has annual income of $200,000 and has signed a partnership with Dassault Systems to jointly sell products and services. Saphran is also eveloping a military version of PartBase, and negotiating site license opportunities. Besides seed funding, they have achieved this level of success primarily with bootstrap funding.
• ElectroJet, a Whitmore Lake company with small engine fuel injection technology that went on the Automation Alley trade mission to China in fall 2006 -- and as a result of meetings with carburetor manufacturers supplying the local Chinese motorcycle/scooter industry, now has agreement to sell products in China.
• HybraDrive, a Deerfieldcompany that Automation Alley funded to compete for the Hybrid Truck Users Forum RFP, which they won against several large competitors such as Eaton Corp. HybraDrive also has $250k from the Michigan SmartZone Pre-Seed Fund and a development contract from the U.S. Army TARDEC for military vehicle demonstrations.
• Parking Carma of Flint, where Automation Alley’s funding joined $250k from the Michigan SmartZone Pre-Seed Fund and $250k from the Mott Foundation to bring this business and entrepreneur from San Diego to Michigan.
• DanoTek, which recently repaid its original Automation Alley loan, having successfully completed prototype development and testing for Clipper and moving forward with growth capital investment of $1 million bridge loan and capital up to $4 million to support product development, staffing and capital equipment. DanoTek’s five year sales target is $250 million.
• Critical Signal Technologies, a company founded by the former president of Guardian Alarm offering health and security monitoring. Critical Signal is currently operating in 11 states, targeting 50 by the end of 2008. Automation Alley seed funding enabled them to meet initial milestones required by the venture capital firm prior to investing $6 million, which has now occurred. CST anticipates a second $6 million round of VC in the next 12 months to finance expansion.
• RazorThreat, an Internet security firm that has combined Automation Alley’s initial investment with $250,000 in private financing and $250,000 from the Michigan SmartZone Pre-Seed Fund. They are currently in discussions regarding A-round venture investment.
• Cielo MedSolutions, an Ann Arbor based firm that has successfully commercialized University of Michigan-developed clinical management software for physicians and health systems, and currently has 9 employees.  At present, 200,000 patients are managed through CieloClinic, and the company also has an evaluation contract from the Centers for Medicaid and Medicare Services for quality reporting. CieloMed has also attracted Michigan SmartZone Pre-Seed Fund, and private investment from the Altarum Institute.

Anderson also offered for the Legislature’s consideration a few areas to improve further on Michigan’s economic development status quo, including:

• Adding a requirement for 21st Century Jobs Fund applicants to work in conjunction with a SmartZone in developing their application, and then using that relationship for more active engagement once a company is funded could both help improve the quality of submissions and the likelihood of success after funding.
• Providing matching funds to angel group investments, as Ohio does for the Ohio Tech Angel Fund, would likely stimulate angel capital investment and grow that critical resource. 
• Continue to provide support, both operational and for early stage investment, to proven technology accelerator programs, including the SmartZone network.

• More at www.automationalley.com.