MVCA 2011 Annual Report - Grand Angels

MVCA 2011 VENTURE CAPITAL REPORT
28
COMPANY
SPOTLIGHT
MIChIgAN INVESTMENT SPOTLIghTS
For years, web users have struggled to decipher the
twisted, distorted online text known as CAPTCHA
in order to access a webpage or make a purchase.
But for five classmates at the University of Michigan’s
Ross School of Business, that frustrating time waster
translated into a business opportunity. Seizing on a
chance to improve an experience most users found
maddening and capture an audience for advertisers
in the process led the students to create Are You a
Human, a software services company. Through its
game-based PlayThrus, Are You a Human employs
a proprietary algorithm to track the user interaction,
along with other factors, to distinguish humans
from bots on the Internet. Are You a Human helps
brands create their own custom PlayThrus for use on
their own sites. PlayThrus are also used as effective
branding tools through Are You a Human’s network
of publisher partners.
The original co-founders, all MBA students,
took advantage of the resources offered to student
entrepreneurs at U-M to solidify their business
plan. The team spent two sessions at TechArb, a
collaborative business incubator supported by Center
for Entrepreneurship, the Zell Lurie Institute, and
the Office of Vice President for Research.
In June 2011, Are You a Human closed a $750,000
Series A investment round, led by Detroit Venture
Partners with U-M’s Frankel Fund and Invest Detroit:
First Step Fund. The funding allowed the company
to hire a development team, build and launch its
beta product and expand marketing efforts. A second
round of fundraising is planned for later this year. n