Siemens TTB
Need flexibility? "There's no fixed pattern that we have to follow in order to turn that technology into the exciting new product for Siemens," says Sarah Peach.
"So our focus is on, what we say, outside in," says Stefan Heuser of Siemens TTB (Technology To Business) based in Berkeley, CA. Siemens is big, "like a German GE", but he acts as an investor in, "really early-stage startups," with investments of $250K to $1M.
Where angels often want to see an experienced entrepreneur, Sarah and Stefan are more comfortable working with great technology.
Right now it's easy to find a great CEO, but executive search is expensive. How does he deal with the search firms to control this cost?
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Comments
It would have been nice if you asked them how they compare to Stanford University's own efforts to bring technology to market. Stanford makes about $208million from the licenses of 58 technologies
You talked about Siemens getting the scraps that others didn't want. Google is an example of the scraps that Stanford's Office of Technology Licensing usually tries to avoid. Just as Angels typically look for an opportunity that is further along in its ability to generate and sustain revenue, Stanford's OTL looks to patent technologies that others can quickly take to market because that means they would be more likely to license it.
So it paid for the patents that would later become the technology behind Google thinking that it could license it to the many internet search engines of the time. They were unsuccessful in licensing it which normally means paying for the patents was a mistake. But the students who developed the technology took it and started the company Google.
That is what Angels who invest in the revenue stage have in common with others who invest in the patent stage. They are both looking for things that go to market quickly. If something is ready for a patent that means the research is done and it is time to market the patent.
I know most Angels want to avoid funding research projects and that's exactly what the Stanford University OTL avoids. But by doing the homework that most Angels shun, they get to know the markets for the patents they invest in and consequently have a better track record than most Angels. It would be interesting to know how Siemens TTB compares.
Angels say that the patent stage is too early for market whereas Stanford University says that patents are a lucrative market.
When Stefan Heuser the CEO of TTB talked about his favorite investment that is currently generating revenue in 30 states and internationally, it would have been nice if you asked him how much they had to invest and how long it took for them to get a return. Just to see how that compares to the notions of Angels who say to avoid the early stage.
To most Angels the word early has become synonymous with years of no return. Clearly it doesn't have to mean that if one does their homework.
Posted by: Matthew Artero | August 25, 2009 10:39 PM
John Huston and others have told us they don't care what the technology/product is becausethat'ss going to change. Clearly Siemens TTB and Stanford University OTLdon'tt agree with that investment approach.
The OTL patents technologies that it believes it can quickly sell licenses for. The TTB limits itself to technologies that compliment the efforts of Siemens. Neither of these approaches is flexible in changing the product.
We know that the OTL has a better track record than the TCA. It would be nice if Angels who insist that early investments are a bad idea would admit that they just aren't willing to do the necessary homework to make early investing successful and stop categorizing all early opportunities as bad or more risky or taking longer to realize returns.
Posted by: Matthew Artero | August 25, 2009 11:50 PM