July 29, 2003 - Commercializing
Killer Technology
by
Bill Snow
Killer Technology, Tractor
Beams, and the Library of Congress in a Sugar Cube. Must be Star Trek, right?
Nope, it’s Arryx, and it’s here in Chicago
Early stage entrepreneurs are
constantly asking me, “What does it take to raise venture capital?”
The answer is simple. In fact,
raising money from venture capital funds is ridiculously easy…provided you have
killer technology. Be an
Arryx, I often say.
Arryx, for those of you just
emerging from the proverbial technology rock, is one cool company. I know these
columns are supposed to have a modicum of professionalism, but the basic fact is
that Arryx is a cool company. Any company that has the technology to move
objects with beams of light is cool. Yeah, you read that right, real Star Trek
stuff.
Two years ago I made the
acquaintance of CEO Lewis Gruber. I had just read a couple of articles about
Arryx, one of which literally made my jaw drop to the floor. The ability to
move objects with “tractor beams” of light has that kind of affect of me.
When I first spoke to Gruber,
Arryx was still in the process of figuring out what the heck to do with the
technology. No, Arryx is not about to release an affordable sugar cube sized
computer that holds the Library of Congress. But the problem of what to do with
interesting technology is a problem that many tech companies face. The
technology may be jaw-dropping in nature, but so what? As I’ve often said, the
“better mouse trap” theory is flawed. The world will not beat a path to
your door if you’re tying to sell the world’s greatest mousetrap to a target
market that lacks a pestilence problem.
A company with technology as
revolutionary and “out there” as Arryx is bound to face these kinds of problems,
and I was eager to see what Arryx has been working on.
The Technology
Before we dig into some
products, let’s examine the technology. Arryx’s website says:
“Our technology uses focused
light to form optical traps that function like microscopic ‘tractor beams’ to
grab small objects. Using only laser beams, we can independently and in parallel
hold, move, rotate, join, separate, stretch, and otherwise manipulate hundreds
of microscopic and nanoscopic objects ranging from the size from a human cell
down to less than 1/1000th the diameter of a human hair. Because our technology
uses multiple beams to hold an object, it is ideal for handling cells and other
objects.”
In layman’s terms, Arryx uses
light to move stuff. Dr. David Grier, a professor of physics at the University
of Chicago, developed the basic technology, which was transferred to Arryx.
Investors include blue chip funds such as Chicago’s own ARCH Development Fund,
Draper Fisher Jurvetson, and Fahnestock Venture Capital Fund. Lewis Gruber was
brought on board to lead the commercialization charge.
Products
What I enjoy about talking with
Gruber is the fact, despite his obvious intelligence; he speaks in such simple
terms. He doesn’t try to impress by throwing arcane concepts at you. He
impresses by making the complex tangible to everyday life. Witness the
direction of Arryx’s product development.
Last July, Arryx released its
first product, the BioRyx 200. This is a workbench geared towards research
institutions and universities. Essentially, the workbench is a tool for other
nano-related products. It’s a tool for making tools. Utilizing tractor beams
(I suddenly feel like Austin Powers when I say that), the workbench can grab
microscopic particles, enabling the user to “hold, move, rotate, join, separate,
stretch, or otherwise manipulate hundreds of microscopic objects using only
laser beams.”
Despite the workbench’s $275,000
price tag, this is a small potential revenue source because this is a niche
market at best. Why start with this product? A win is a win, sales are sales,
and the workbench furthers Arryx’s brand by keeping the technology in front of
people. Gruber knows this is not a multi-billion market. While I understand
what the workbench can do, it is not something I will ever need in my life, nor
is it something I will give as a Christmas or birthday gift. There is a certain
unique market that needs the BioRyx 200, but this market is small. I wish more
entrepreneurs were as realistic about target markets as Gruber.
The next product in the Arryx
arsenal, currently under developing, is far more tangible to everyday life than
the BioRyx 200. What I love about this next product is that it was something I
never thought about, but the second Gruber explained it to me, I had an “ah ha!”
moment.
Using the same basic
technology, Arryx is working on a product that will enable the cattle and dairy
industries to sort sperm. Left to nature, the birth mix between male and female
cows is roughly 50-50. For dairy farms, female cows are desirable -- you can’t
milk a male cow – and in the beef industry, male cows are desirable – steers
make far better steak. In both industries, 50% of the cows born are not used,
and therefore represent a waste of money for dairies and cattle ranchers. The
unused cows are fed and housed, but as they are not viable revenue producers.
They are even more useless than my dog.
Using Arryx technology, X
chromosome and Y chromosome sperms can be easily and affordably sorted,
therefore reducing (if not completely eliminating) the creation of useless
cows. Yes, they will use the aforementioned tractor beams to grab and move X
chromosome to one side, Y chromosome to the other side. And, using one of
Gruber’s catchwords, the product will be simple: one button. All it will be
designed to do is sort sperm.
But there’s got to be an
easy-to-use and affordable solution that handles that issue, right? The answer,
according to Gruber, is “no.” In fact, Gruber was surprised to learn that a
good solution doesn’t exist. Enter opportunity for Arryx. Again, this is not a
product that I will be giving to people as gifts (“Look Timmy, Mr. Snow gave you
an Arryx Sperm Sorter for your birthday! What do you say?”), but I think we all
can see the implications of such a technology for the beef and dairy
industries. Given my diet, this product will have an enormous impact on my
life.
The next product in the Arryx
hopper is a sensor that will be able to detect ecoli, anthrax, and any other
kind of biological or radiological contaminants. The sensors can be fitted on,
say, military vehicles, eliminating the need for the “Kuwaiti
Fried Chicken” approach, most recently used in this spring’s invasion of
Iraq.
The sensors can also be
employed in brushes, allowing the user to simply brush an area to determine if
the surface has been contaminated. Beyond military and security applications,
the brushes could be utilized by the food service industry to ensure
restaurants’ food prep areas are clean and sterile. Do you think every
restaurant in America should use one of these brushes on its food prep area? I
do too. This could be the sizable homerun that Arryx, and its financial
backers, are looking for. This might even be a product that I’d buy for
friends (or myself).
The future
Here we have three tangible
products in the offing from the oft-confusing world of nanotechnology. And
somewhere down the line, perhaps the ten to fifth power product, Gruber is
convinced we will get the sugar cube sized computer that can store the entire
Library of Congress.
Now that is a gift I will
definitely be giving. All brought to you because of the magic of nanotechnology.
Has your company been profiled by Bill Snow? Send
an email to introduce your company:
bill@billsnow.com
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