Archive for June, 2009
Tuesday, June 30th, 2009
By Allan Maurer
ATLANTA—Realizing the commercial potential of an idea developed in a university laboratory is a process fraught with obstacles. Atlanta’s VentureLab, a program of the Georgia Research Alliance, works with Georgia’s six research universities, provides support throughout what it calls “the continuum of innovation,” to spin companies out of those ideas.
Lee Herron, vice president of commercialization for VentureLab, tells TechJournal South the program, founded in 2002 at Georgia Tech, follows a process that helps realize the commercial potential of ideas generated in the state’s research universities, Georgia Tech, Georgia State, Emory, The Medical College of Georgia, the University of Georgia and Clark Atlanta.
Each university funds its own VentureLab program at varying levels. VentureLab in turn, provides funding for specific projects from those programs. “It’s a real partnership between the individual institutions and the Georgia Research Alliance,” says Herron.
Since 2003, VentureLab has provided 203 funding awards to 150 projects based on various milestone achievements. In Phase I, a project receives $50,000 to basically determine the project’s commercial feasibility. Phase II, awards up to $100,000, require outside matching funds. “We’re looking for outside validation of the opportunity,” says Herron.
Phase III consists of an unsecured loan of up to $250,000. “You couldn’t go to the bank and get that type of loan,” notes Herron.
Next in the series would be money from the GRA fund—which just closed on $18.75 million and plans to raise $30 million.
“What we try to do with VentureLab,” says Herron, “is cover the innovation continuum from inception to getting a company on its feet.”
VentureLab directors meet four or five times a year to review proposals and decide on which to support. Due diligence is not as extensive as for a venture or angel funding. “Many of the proposals are just ideas with an early indication of opportunity,” says Herron. “It’s usually associated with a faculty member who submitted it through the VentureLab program at their university.”
So far, the program has launched 80 startups, some of which have been acquired, some are inactive, and a few have moved out of the state.
VentureLab grads that have done well include medical device companies CardioMems and Medshape, and solar energy innovator Suniva, with, Herron adds, “More on the way.”
Many projects represent strengths of their representative schools, Herron notes, such as security and wireless ideas from Georgia Tech. “I’ve been told that 10 percent of the engineers in wireless are Georgia Tech grads,” says Herron. “So we see a fair amount of that.”
Projects from the University of Georgia include those focused on agricultural biotech, biotech, and healthcare. Those from Emory are across the board in the life sciences, drug development, and medical devices. The Medical College of Georgia is also strong in life sciences. “It really all starts with strong research programs,” says Herron.
Once a company is launched, a number of incubators are available to provide early stage space to the emerging companies, including Georgia Tech’s ATDC, the Bio Business Center at the University of Georgia, EmTechBio at Emory, CollabTech at Georgia State, and one at the Medical College of Georgia.
“We provide resources, and then when a company is mature enough and needs space, it’s available,” says Herron.
While Herron says there are always bottlenecks to nurturing new companies along that continuum of innovation, such as funding, one of the biggest problems is finding appropriate management for the young firms, says Herron.
“There are always issues with funding, a little worse now, but it’s always a challenge.”
But early-on, he says, VentureLab tries to pair up the young companies with appropriate management talent. “We don’t necessarily want faculty founders to quit their day jobs,” Herron points out. They are not necessarily cut out for management roles either.
So, VentureLab runs a fellows program that brings in executives and gives them carte blanche to look at opportunities. It finds people through alumni of the various universities, entrepreneurs in Atlanta looking for their next opportunity, or out of state people who want to return to the area.
Often, says Herron, they’re people who have done well in industry, cashed out and are not ready to retire.
“It’s really key, finding those folks,” says Herron. “It’s probably the single biggest differentiator we have.”
For an examply of Georgia Tech’s current VentureLab projects see: http://www.gtventurelab.com/tracking.html
Previously on TechJournal South: Georgia Research Alliance venture fund raises $18.75M
http://techjournalsouth.com/news/article.html?item_id=7703
Online: www.gra.org
Posted in Biotech, Economic Development, Georgia, Healthcare, Internet/New Media, IT, Security | Comments Off
Tuesday, June 30th, 2009
WASHINGTON, DC – The Internet Society (ISOC) is funding community-based Internet projects around the world to promote Internet access and education for underserved communities.
Funded projects will tackle issues ranging from deploying wireless networks to connect schools in Bolivia, to establishing a regional Internet training center in Armenia, to educating senior citizens in France, to promoting Internet access for underserved communities.
As part of the ISOC Community Grants Programme, each project will receive up to US$10,000 for efforts that promote the open development, evolution and use of the Internet for the benefit of all people throughout the world.
The Internet Society Community Grants are awarded twice each year.
he next application round for funding will open 1 September 2009. For more information about these projects and details of the Community Grants Programme, see:
www.isoc.org/isoc/chapters/projects/
Posted in Internet/New Media, Money, Washington, DC | Comments Off
Tuesday, June 30th, 2009
ARLINGTON, VA – ridPoint Inc., a smart grid company, has acquired Lixar’s energy business, an Ottawa company providing energy management solutions that offer sophisticated user interfaces and support multiple communications protocols and devices.
Financial details were not disclosed.
The acquisition enables GridPoint to enhance its enterprise-class software and establish a Canadian presence.
GridPoint implements intelligent software solutions that are transforming the electric power grid that allows utilities to incrementally adopt and customize solutions to better measure and control energy efficiency, load management, renewable integration, storage management, and electric vehicle management.
Online: www.gridpoint.com
Posted in Acquisitions, Energy, IT, Virginia | Comments Off
Tuesday, June 30th, 2009
FALLS CHURCH, VA – USIS, the largest provider of security investigations to the federal government and a global provided of national security services, is adding more field investigators to its ranks over the next three months.
The company is also looking for qualified independent contractors interested in opportunities to work on national security contracts that assist post-conflict nations through the training of indigenous law enforcement personnel.
In the field investigator area, USIS is planning a “blitz” strategy to hire approximately 200 new investigators in high need areas across the U.S.
Those interested in either employee or contract investigator positions in the U.S. can visit www.usis.com, click the Careers link on the navigation bar, and then go to the USIS Job Search link in the Careers section.
Online: www.usis.com
Posted in Business Briefs, TechJobs, Virginia, Washington, DC | Comments Off
Tuesday, June 30th, 2009
WASHINGTON, DC – Sakhr Software, a global company selling advanced Arabic speech and language solutions, has acquired Dial Directions, a provider of voice-entry technology for mobile devices and services.
Financial details were not disclosed.
With Dial Directions’ network-based speech recognition technology and mobile applications expertise, Sakhr Software is set to deliver a new wave of technologies to enable real-time speech to speech translation for Arabic.
Sakhr has more than 100 customers, including many government agencies.
In 2008, Sakhr Software USA and Dial Directions partnered together to develop language application technology for mobile, cloud-computing environments.
The companies collaborated to develop a first of its kind open speech-to-speech mobile translation application for the U.S. government and business customers. The solution enables English and Arabic speakers to speak their native language, hear the audio translation, and read the text translation – all with an iPhone or Blackberry.
All 200 employees of Dial joined Sakhr.
Online: www.sakhr.com
Posted in Acquisitions, Government/Defense, IT, Telecommunications, Washington, DC | Comments Off
Tuesday, June 30th, 2009
ARLINGTON, VA – Watson Wyatt Worldwide, a company focused on human resources, is merging with Connecticut-based Towers, Perrin, Forster, & Crosby.
The merger of equals, which is expected to receive stockholder approval from both firms, will create a $3.5 billion company named Towers Watson & Co.
TPF&C CEO Mark Mactas will be president, and Watson Wyatt CEO John Haley will serve as CEO.
Online: www.towersperrin.com; www.watsonwyatt.com
Posted in Acquisitions, Business Briefs, IT, Virginia | Comments Off
Tuesday, June 30th, 2009
by Chris Witt
These days, if you’re a leader of any type, you can’t simply order people around and expect them to do what you want. They may follow your directions, if you are watching, but once they’re left on their own they’ll go back to doing what they think is important.
Leaders today, more than ever before, have to win people’s cooperation. And there are two main ways of doing so: motivation and inspiration. Although the two words are often used interchangeably, they actually mean quite different things – depending on what you want to achieve.
Motivation is about moving people to act in a way that achieves a specific and immediate goal. When you’re motivating people to do something they may not necessarily want to do, you have to offer them something they want in return.
When coaches give their teams a pep talk during halftime, they are using motivation. They want their players to charge back onto the field or the court with renewed energy and focus, even though they may be too tired or disheartened to try. Their reward? Victory.
To motivate your people:
Tell people exactly what you want them to do. Motivation is all about getting people to take action, so don’t be vague. Avoid generalities like, “I want everyone to do their best.” Say, instead, “I need you to come in over the weekend so we can get this project done on time.”
Limit the amount of time or effort that you’re asking for. It’s easier to ask people to work late work one night or even every night for a week than to expect them to work late indefinitely. Set an end date.
Share in the sacrifice. Leaders don’t ask people to do what they themselves aren’t willing to do. Don’t tell your people to work over the weekend if you’ve got plans for a spa day. Roll up your sleeves and share the load.
Appeal to their emotions. Fear focuses people’s attention and can be an effective motivator. (“If we don’t get this done right now, we’ll all lose our jobs.”) But if you keep resorting to fear, you’ll end up de-motivating people. People are also motivated by—and prefer to be motivated by—positive emotions like excitement, pride, a sense of belonging, and the thrill of achievement.
Give people multiple reasons for doing what you want them to do. You can give your own reason or the organization’s reason for requesting the action. “If we don’t get this project completed on schedule, we’ll lose the contract.” But the best reason of all is always personal. It would be nice if you could give your people extra days off or even a bonus. Or you may talk about something as intangible as the camaraderie that comes from having achieved something important together. But things being what they are these days, the best you may be able to offer is the hope that no one will lose a job.
Inspiration, on the other hand, involves changing the way people think and feel about themselves so that they want to take positive actions. It taps into people’s values and desires.
Commencement speakers—the best ones, at least—inspire their audiences. They talk about the challenges the graduates will face, either personally or collectively, and the possibilities of making a difference. Inspiration appeals to the best aspirations of people, and its underlying, often unspoken message is “You can become what you want to be.” No reward is promised, other than the reward that comes from within: the sense of personal satisfaction.
As a leader anytime you talk about values, about identity (either the corporate identity or each person’s identity), and about long-term goals, your intent—whether you know it or not—is to inspire.
To inspire your people:
Be the change you want to inspire. Your reputation, your character, your behavior will inspire people more than anything else. The only way to call the best out of others is to expect the best from yourself.
Tell a story. Stories don’t tell people what to do. They engage people’s imaginations and emotions. They show people what they’re capable of becoming or of doing.
Appeal to people’s value system. Ask them to act in a way that is consistent with the values they themselves profess.
Trust people. When you’re inspiring people, you’re not telling them exactly what to do or giving them precise directions. You’re empowering them to be their best, trusting that they will then do the right thing. And the right thing they do may not be what you were expecting; it may be something beyond your wildest expectations.
Challenge them. People aren’t inspired by doing the ordinary or by meeting expectations. They’re inspired by the exertion, creativity, and sacrifice needed to exceed what they themselves thought possible.
Motivation and inspiration aren’t the sole province of professional speakers and preachers. They’re tools leaders use all the time—in one-on-one conversations, in meetings, and in formal presentations—to bring out the best in their people. It’s just a matter of knowing the right time and the right situation.
When there’s an immediate, short-term, and specific goal that you want your people to achieve, you need to motivate them. When you want to shape people’s identity and their long-term aspirations and commitments, you need to inspire them.
Antoine de Saint-Exupéry, the French aviator and author of The Little Prince, wrote, “If you want to build a ship, don’t drum up the men to gather wood, divide the work and give orders. Instead, teach them to yearn for the vast and endless sea.” Sometimes you need to do both. You need to enlist and organize people to do a specific task—to build a ship according to specs, on time and on budget—and sometimes you need to activate people’s desires and stand aside. Who knows, you may be surprised by what they do.
As an executive speech coach with more than 25 years of professional experience, Chris Witt is author of the newly released book, “Real Leaders Don’t Do PowerPoint,” and founder of Witt Communications. He helps CEOs gain board approval and company-wide support for initiatives. Chris also empowers newly promoted managers and entrepreneurs to grow their businesses through the power of effective speaking and presenting. In addition, he works with technical experts to simplify their presentations to win multi-million dollar contracts.For more information about his services, see: www.wittcom.com.
Posted in Columns, Viewpoint | Comments Off
Monday, June 29th, 2009
RESEARCH TRIANGLE PARK, NC – Two biotechnology companies spun out from research at RTP universities have each received $50,000 low-interest Company Inception Loans from the North Carolina Biotechnology Center.
Agile Sciences, founded in 2007 by Ph.D. professors Christian Melander and John Cavanagh of North Carolina State University, is using the funding to help develop its proprietary, non-toxic organic compounds that can disperse colonies of microorganisms called biofilms.
The company says biofilms that form in the human body are up to 10,000 times more resistant to antibiotics and immune systems than free-floating bacteria, making infections very difficult to treat.
Also, billions of dollars’ worth of agricultural crops are lost each year due to disease or spoilage caused by the formation of biofilms. Industrial needs for effective biofilm dispersion include surface coatings and cleansing products.
Pharmaceutical industry veteran Gabriel Cipau, Ph.D., is using the other loan to commercialize a line of brain-disorder therapies spun out of Duke University research labs.
Cipau, president and CEO of the new clinical-stage firm, NeuroScience Pharmaceuticals, said NeuroScience focuses on developing neurosteroid drugs. Neurosteroids are hormones that affect nerve cells in the brain and body. As a group, these compounds show promise as treatments for a range of conditions, including anxiety, depression, epilepsy and traumatic brain injury.
The firm is about to start testing its lead product, Pregnenolone, for the treatment of schizophrenia in two fully funded Phase II clinical trials.
“These loans help young companies through critical early business-development activities so they can be better positioned to secure outside funding or partnering,” said Yonnie Butler, business development director at the Biotechnology Center. “We’re delighted companies like Agile and NeuroScience can move forward despite these tough economic times.”
Online: www.ncbiotech.org
Posted in Biotech, Economic Development, Money, North Carolina, Pharma | Comments Off
Monday, June 29th, 2009
By Allan Maurer
ATLANTA – Despite challenging economic conditions, the GRA Venture Fund has raised $18,750,000 in its first closing. The Fund is a private investment fund that leverages $7.5 million from the State of Georgia through a 3-to-1 match from private investors. The state has also approved a 25 percent tax credit for investors in the fund, and a 10 percent tax credit for investors who put money into the fund’s portfolio companies.
Kathleen Robichaud, GRA director of communications, tells TechJournal South the tax incentives are one reason “We believe the potential availability of financing [through the fund] is much greater than the target [of the fund].”
That target is $30 million.
Robichaud says that the GRA venture fund board decides on which startups will receive investments. It puts money in biotech and technology firms emerging from state university research.
Robichaud notes the that the state also reinvests any return on their investment back into the fund.
The Fund allows the state to partner with the private sector in providing early-stage financing to startup companies based on innovative university research and development.
The response of the private sector to the availability of this important fund is encouraging, especially in light of the tough economic times in our state and our country,” said Georgia Governor Sonny Perdue. “This is a great start for a fund that will strengthen Georgia’s position as a center for innovation and entrepreneurship by helping our homegrown technology and research companies thrive and stay in Georgia.”
First announced in 2008 by Governor Perdue, the Fund is dedicated to advancing seed or early-stage companies that have emerged through the Georgia Research Alliance (GRA) VentureLab commercialization program. VentureLab companies seek to commercialize technologies developed at the state’s six research universities affiliated with GRA.
“This new Venture Fund will expand the all-important availability of early-stage capital for companies emerging from the creativity of the GRA research universities. Such investments by the Fund will not only help foster the success of these companies, but also help stimulate the economy of Georgia,” said Fred Cooper, a GRA trustee leading the project for the GRA Board.
“The fund, coupled with significant State commitments, including attractive income tax credits for investors, has the potential to provide in excess of $100,000,000 in venture financing.”
VentureLab is the GRA strategy for enhancing and accelerating the process of spinning new technology-based enterprises out of university research.
The program currently operates at GRA’s partner universities, seeking out university-based research innovations, assessing their commercial potential and providing resources to form new ventures.
A nationally-recognized program, GRA VentureLab awards seed grants and loans to universities and early-stage companies. Georgia’s six research universities participating are the Georgia Institute of Technology, Emory University, University of Georgia, Medical College of Georgia, Georgia State University and Clark Atlanta University.
The GRA Venture Fund is a critical extension of the GRA VentureLab program, which has assisted some 85 new companies since its inception in 2002,” said C. Michael Cassidy, president and CEO of the Georgia Research Alliance.
“The early-stage financing the Fund will provide is some of the hardest to find and is absolutely essential for these companies to grow and thrive.”
Online: www.gra.org
Posted in Biotech, Economic Development, Georgia, Internet/New Media, IT, Money, University Tech | Comments Off
Monday, June 29th, 2009
ATLANTA – Dow Jones Private Equity Analyst has ranked Morris, Manning & Martin as a Top 50 law firm for its number of Venture Capital and Private Equity deals.
MMM was the only Atlanta-based law firm on this prestigious list, which includes other national and global firms.
The Dow Jones publication highlighted Morris, Manning & Martin’s representation of clients in 47 VC and Private Equity deals, including a transportation-focused business services company in a $27 million expansion round with multiple investors.
“The firm’s robust venture capital activity, as evidenced by our high national ranking in Dow Jones Private Equity Analyst, demonstrates that, despite adverse market conditions, we continue to be a market leader in representing companies in venture and private equity transactions,” said Managing Partner Robert E. Saudek.
Dow Jones Private Equity Analyst is a publication of Dow Jones Financial Information Services. The law firm deal rankings were published in the May issue.
This is the firm’s second national honor in recent weeks. Partner John C. Yates was recently ranked at both the national and state levels in 2009 Chambers USA: America’s Leading Lawyers for Business for his work in the Investment Funds/Venture Capital category.
Yates leads the firm’s Technology practice, which includes the Corporate/M&A and Venture Capital groups. Those groups received praise for their strength, while Mr. Yates was recognized by the publication as “a household name in the technology and venture capital world.”
The firm has offices in Atlanta, Savannah, Raleigh-Durham, Taipei, Beijing and Washington, D.C.
Posted in Business Briefs, Events, Georgia, Legal | Comments Off
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