Help Wanted: A VC-Backed Start-Up in Water
Technology Needs a CEO
Company: Start-Up
Water Technology out of MIT
Position: CEO
with capital raise and technology experience
Search Start: August
2009
Search End: October
2009
The Challenge: A new membrane technology developed in an
MIT lab by two distinguished PhD’s had surfaced as a potential solution for
commercial, municipal and industrial applications. The unique properties of this membrane
offered an easy-to-clean, reusable filter capable of capturing microscopic
particles needed to clean industrial waste water, and did not require frequent
and costly replacement With only IP and a small amount of starting
capital in hand, the founders had no network to support the build out of an Executive
Team, and they had few resources in order to attract the right people. But the formation of a company was there, and
the first order of business; hire a CEO.
The Search: Meeting with the Co-founder in August of
2009, it was clear the team needed someone who could meet three basic needs; 1)
A background in water technology and preferably a focus on membranes
development. 2) Leadership of a small,
growing company with few resources and limited budget. 3) Experience in raising capital and
influencing the investment community.
Targeting the local water industry experts would not be too
difficult. There are a limited number of
companies focused on membrane development, however, simply because membrane’s
are considered a commodity and are more popular overseas than in the US for
industrial application. Finding an
expert CEO-level person may mean a national or international search.
Using my own network as a strategic first strike and seeking
referrals would only get me so far. I
knew I needed to approach this search with more than a few phone calls. I had to get out into the expat community and
find a water expert who could introduce me to more water experts. Coupled with a target list of local water
technology companies with advanced product lines for commercial and industrial
applications, I was fairly confident I would find this person here in the
Northeast. The uphill battle would be
identifying a credible and effective CEO who would also be willing and able to
take on the high risk of a start up.
The Solution: Several candidates were surfaced within the
first few weeks of the search. Two were
Senior Level group leaders from companies such as GE Water and Koch Membrane. I knew I was on the right track, and both
were capable of leading a technical team as well as running the
operations. Both had experience working
on start up technologies. But neither
had capital raise experience.
Regardless, my client was thrilled with the progress and met these two
experts while I continued my pursuit for the “grail” of a water industry CEO.
A call came from a friend suggesting I attend a networking
event for expats in the Boston area.
This was a tight knit group of C-Level foreign nationals working and
living the Boston area and they met once a month to network and collaborate on
a variety of professional and personal projects. I was seated next to a French CEO who was not
only affable but very forthcoming about his job search. He had recently left Millipore and had two
spinouts of the parent company under his belt where he served as COO and
CEO. He was looking for a start up.
The conversation lasted through dinner and dessert. In the process of getting to know him, I had
interviewed and vetted him for the role.
In the morning I drafted my presentation to the client. They met later that week. As I closed the double doors to the
conference room that morning, watching them lean forward simultaneously over
coffee cups, their body language said all I needed to know about the search
process. It was over.
Interestingly, one of the other two candidates was so
technically advanced and enthusiastic about the technology, the Founder decided
to retain her as well to round out the team and apply her advanced knowledge to
develop the product.
Today: Within months of the CEO taking over the
reins of the organization, he had achieved a $3M round of capital with the
option of another $5M upon meeting milestones.
It was a joyful yet very challenging period in the development of the
company as it was during the height of the recession and green technology in
every corner of the industry was struggling to survive. The CEO is still advancing the technology and
company’s position. With two successful
projects (one completed with the US Navy, and one near completion), they are
seeking additional capital and potential acquisition. The Senior technologist also remains on the
company’s payroll and is enjoying her role as both technical strategist and
entrepreneur.
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