Living with Vertigo: An Entrepreneurial Story in the ... · Success” with Cheryl Martin, ......

11/11/2014

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Upcoming ACS Webinars™ Register for a great lineup of ACS Webinars™ in July & August!

www.acswebinars.org/events

July 29 - “Department of Commerce Sustainable Manufacturing

Initiative – Government Resources that Support Sustainable Manufacturing” with Morgan Barr, International Economist, Department of Commerce.

August 5 - “Delivering a Dynamic Presentation” with Nicholas Washienko, Ph.D. & J.D., Owner, Washienko Communications and Director of the Professional Development Program, Boston University.

August 12 - “How Chemical Policy Reform Can Spur Green

Chemistry” with Richard Denison, Senior Scientist at Environmental Defense Fund.

August 19 - “Propel Your Career – Networking Tips and Strategies for Success” with Cheryl Martin, Executive in Residence with Kleiner, Perkins, Caufield and Byers.

Got Questions? Join the post-webinar discussion on LinkedIn!

Search Group: ACS Webinars

http://www.acswebinars.org/events

11/11/2014

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ACS WEBINARS™ Living with Vertigo: An Entrepreneurial Story in the

Chemical Industry

Speaker: Brian Morin

Innegrity LLC

Moderator: Craig Galbraith

UNCW

Contact ACS Webinars™ at [email protected]

INNegRITYTM Innovation with Integrity

INNegRITY™

Living with Vertigo

An Entrepreneurial Story

July 22, 2010

mailto:[email protected]

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Four Easy Steps to Losing Your Lunch

• Dropping Seeds: Business Plan and Launch

• Free Fall: What Went Wrong

• Rocket Ship: What Went Right

• Soaring: Where We Are Now

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Dropping Seeds: Business Plan & Launch

• Sell Fiber

– New technology based on

• 3M film

• Milliken additive

– Outsource manufacturing

• Market

– “Glass Plus”

• Reduce weight of glass

composites

• 6 billion pound market

• Price ~2x glass, 20%

premium in-use (use less)

– Segments

• Marine, transportation,

sporting goods

• Sales

– Pull through selling to

weavers

– Primary activities of company

• application development

• business development

• Finances

– Founders, angels

– Breakeven very low

– Almost no CAP-EX.

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2003: 18 months to revenue

$0

$5,000

$10,000

$15,000

$20,000

$25,000

2004 2005 2006 2007 2008 2009 2010 2011

2003 Sales Predictions: $

2003 $


Price: ~$2.00/lb

0

2000

4000

6000

8000

10000

12000

2004 2005 2006 2007 2008 2009 2010 2011

2003 Sales Predictions: Manufacturing

2003 lbs

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Initial Funding: BGM $50,000,

May, 2004

Ownership - 2004 A

BGM


Friends/Family/Fools #1,

November 2004

Ownership - 2004 B

BGM

FFF #1

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Free Fall: What Went Wrong 2005-2006

• Requires Dedicated

Equipment

– Learned 2Q05

– Can’t outsource mfg

– 10-40x investment

required…

• …to get started

• Growth requires continual

CAPEX

– 1-3 years scale-up

development

• Can it even be done?

– UNCERTAINTY

• Previous employer law suit

– July 2005

– “Kitchen Sink” suit

• Employment agreement

• Duty of Loyalty

• SC Trade Secrets Act

• Claimed IP ownership

– $500,000 legal expenses

• Plaintiff 3-5x

– 2 years to resolve

• 4 years through appeal

process

– UNCERTAINTY


An Unfortunately Common Story

$0

$5,000

$10,000

$15,000

$20,000

$25,000

2004 2005 2006 2007 2008 2009 2010 2011

2003 $

2010 $

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An U.C.S: Lbs Sold

0

2000

4000

6000

8000

10000

12000

2004 2005 2006 2007 2008 2009 2010 2011

2003 lbs

2010 lbs


An U.C.S: Cash Flow

-$3,000

-$2,000

-$1,000

$0

$1,000

$2,000

$3,000

$4,000

$5,000

2004 2005 2006 2007 2008 2009 2010 2011

2003 CF

2010 CF

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March 2006

Ownership - 2006 A

BGM

FFF #1

FFF #2



November 2006

Ownership - 2006 B

BGM

FFF #1

FFF #2

FFF#3

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Rocket Ship: What Went Right: 2007-2009

• Trey Tucker

– “Didn’t know it couldn’t be

done”

• Scale up progression

– Lab machine ~1 lbs/hr

• Failed outsource mfg ~30 lbs/hr

• 2005

– Pilot Machine Developed

• Started at 12 lbs/hr

• Finished at 40 lbs/hr

• 2007

– Production machine

• Designed 2007

• Built 2008

• “Won” Law Suit

– March 2007

– “Voluntarily” dropped suit

against Innegrity

– Lost 4/5 claims vs. BGM

– $25,342 settlement

• Won appeal

– August 2009

• Dropped further appeal

– December 2009


Angel Round,

June 2007

Ownership - 2007

BGM

FFF #1

FFF #2

FFF#3

Angel

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Lightweight, Tough

High Performance Fiber

Rope

Composite


Innegra S Hard Ballistics

Level III A

•First 4 from left pass at 1.55 lbs/ft2

•Now have a 0.95 lbs/ft2 solution

•30% Innegra

•>1600 ft/sec

•Cost ~55% full aramid solution

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Super Angel,

May 2008

Ownership - 2008

BGM

FFF #1

FFF #2

FFF#3

Angel

Super Angel


Fastest Fiber in Formula 1 • Melbourne #1 & #2

• Singapore #1 & #5

• Bahrain #1 & #5

• Barcelona #1 & #2

• Monoco #1 & #2

• Turkey #1 & #3

• Europe #1 & #7

• Italy #1 & #2

• 2008

– 4 finishes, 14 points, 18 races

– 9th of 12 teams

• 2009

– 32 finishes, 172 points, 17 races

– 1st for both team and driver

•Brawn GP is first and only team to use

Innegra extensively in their car

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Carbon Innegra

Carbon Aramid

Figure 3: Despite suffering the same fate as the specimen in Figure 2, the

Innegra/Carbon front wing endplate remained intact and relatively unscathed.


Riot Kayaks

•Astro 58

•13 lbs river kayak

Tested on a Nile waterfall!

Carbon – Innegra intimate blend

for maximum toughness/impact

(dart and izod).

Black diamond weave pattern

shows tough Innegra

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Ropes


3rd Annual Tahoe Nalu Classic

15th August

•Women took 1st

•Men took 2nd

Tahoe Stand Up Paddleboards Foam core – Innegra – glass

HMPP, with intermediate properties, makes

great tie-layer between stiff skin and “soft”

core materials. •Increase skin toughness

•Decrease delamination

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# Customers Increasing

0

10

20

30

40

50

60

2007 2008 2009

# Channel Partners Offering Innegra

0

5

10

15

20

25

30

35

40

45

2007 2008 2009 2010

# End Users Using Innegra

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New Game: Catch the Hockey Stick

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

2004 2005 2006 2007 2008 2009 2010 2011

2003 $

2010 $


Can anyone see the underlying

good news?

0

2000

4000

6000

8000

10000

12000

2004 2005 2006 2007 2008 2009 2010 2011

2003 lbs

2010 lbs

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What’s happening to the integral of

the negative cash flow predictions?

-$4,000

-$2,000

$0

$2,000

$4,000

$6,000

$8,000

2004 2005 2006 2007 2008 2009 2010 2011

2003 CF

2010 CF


INNegRITY™

Where are we now?

Lessons Learned

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Lessons

• First three rules of entrepreneurship:

– Never quit! Never quit! Never quit!

• Learn from the market

– It’s a dialogue, not a monologue

• Don’t go it alone—get all the help you can

• Cash flow drives everything

– Most important CEO skill is ability to raise $$

– Corollary: $$ can buy other skills…


Elizabeth Cates, Ph.D

Brian Morin, Ph.D.

Innegrity LLC

1312 Old Stage Rd

Simpsonville, SC 29681

(864) 373-7070

[email protected]

[email protected]

www.Innegrity.com

INNegRITY™

INNegRITY Innovation with Integrity




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Q&A SESSION

Living with Vertigo: An Entrepreneurial Story in the

Chemical Industry

Speaker: Brian Morin

Innegrity LLC

Moderator: Craig Galbraith

University of North Carolina Wilmington

Please submit your questions for the speaker via the

Questions Panel in GoToWebinar

Slides download at: http://acswebinars.org/morin

Contact ACS Webinars™ at [email protected]

Still Got Questions? Join the post-webinar discussion on LinkedIn!

Search Group: ACS Webinars

http://acswebinars.org/harrison


11/11/2014

22

Upcoming ACS Webinars™ Register for a great lineup of ACS Webinars™ in July & August!

www.acswebinars.org/events

July 29 - “Department of Commerce Sustainable Manufacturing

Initiative – Government Resources that Support Sustainable Manufacturing” with Morgan Barr, International Economist, Department of Commerce.

August 5 - “Delivering a Dynamic Presentation” with Nicholas Washienko, Ph.D. & J.D., Owner, Washienko Communications and Director of the Professional Development Program, Boston University.

August 12 - “How Chemical Policy Reform Can Spur Green

Chemistry” with Richard Denison, Senior Scientist at Environmental Defense Fund.

August 19 - “Propel Your Career – Networking Tips and Strategies for Success” with Cheryl Martin, Executive in Residence with Kleiner, Perkins, Caufield and Byers.

http://www.acswebinars.org/events

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Living with Vertigo: An Entrepreneurial Story in the ... · Success” with Cheryl Martin, ......

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