Episode 123 -- "Patient capital: how long tech takes at times" with James Walker from BluGlass, Geoff Bell from MicroBioGen, Phil Hodgson from Calix, and Ryan Pollett from BDO
Description
This episode of @AuManufacturing Conversations is the "Patient capital: how long tech takes at times" session recorded at our June 25 Spotlight on Scaling Up seminar. SoSU was hosted by @AuManufacturing in partnership with BDO, the Advanced Manufacturing Growth Centre, and the Australian Business Growth Fund.
The panel featured three high-tech businesses, each of which took many years to develop and prove their technology through to eventual adoption, and each of which remains strongly focussed on R&D. It was moderated by Ryan Pollett, Partner, Audit & Assurance, National Leader, Manufacturing & Wholesale, BDO.
The panel guests are:
* James Walker, Chair, BluGlass;
* Geoff Bell, CEO, MicroBioGen; and
* Phil Hodgson, CEO and Managing Director, Calix.
Episode guide
0:12 – Introduction to the panel.
3:22 – A very brief history of MicroBioGen from CEO Geoff Bell.
4:43 – A very brief history of Calix from CEO and Managing Director Dr Phil Hodgson.
6:46 – A very brief history of BluGlass from Chairman James Walker
10:02 – Baker’s yeast and why MicroBiogen focussed on it.
10:55 – How MicroBioGen made investor money last and kept everyone happy during the long period between Series A and their first customer.
12:10 – Having a platform technology and being tempted by the “bright, shiny ball.”
13:06 – What makes a bad patent, and why the worthwhile IP resides with staff.
13:55 – The gallium nitride semiconductor niche.
15:12 – Maximising R&D investment and keeping management costs down.
17:02 – Government assistance for R&D.
18:02 – Spending two years unravelling a $30 million convertible note.
19:02 – On capital raises: “When the ducks are quacking, feed the ducks”.
20:08 – You can be a listed company that also requires patient capital, but it requires transparency with investors.
22:32 – Why MicroBioGen’s strategy was to work with the world’s biggest and best, and why that took a lot of time and effort.
25:16 – Why Calix looked overseas for partnerships with cement companies.
27:02 – The turning point for BluGlass seven years ago with laser diodes.
29:12 – A few words on convertible notes.
30:50 – Lessons from the heady valuations at the peak of the decarbonisation wave.
33:20 – The dream of creating a GaN chip manufacturing industry in Australia,
34:20 – Be willing to accept a pay cut if you want to be involved in a startup technology company.
Further reading
BluGlass raises $5.3 million in SPP
Winners announced at 2024’s Australian Export Awards
Calix raises $25 million to speed low carbon commercialisation
United States
