How Can a Tech Company Get Funding? Meet Edward Greer
What does a tech company need to have to get funding? How can a tech company stand out in the crowd? Edward Greer is always on the lookout for innovative new technologies. As a Corporate Technology Scout, Ventures and Business Development at The Dow Chemical Company, a lot of companies have pitched their technology to him, but only a fraction receive investment money from Dow each year.
What are you looking for when you are evaluating new technologies or opportunities?
It is not just one thing I am looking for, but a number of things. First, it has to be in an area of interest to me. Every investor has a different investment thesis, so for them to be interested in a new technology, it needs to be in their wheelhouse. Another key component is that the new technology needs to be a significant advancement over the current state of the art [technology]. Specifically, because I work in physical sciences, I would like to know that the technology has patent ability and a protectable competitive advantage. Physical science innovations take a significant amount of time to commercialize so I like to know that you have the security to pay back your research and development expenses. Lastly, I prefer to work with great teams.
How do you define a great team?
First, I am looking for the majority of team members to have appropriate experience in the field of study. I hope the team has all of the skills it needs, or understands what skills they are lacking and are actively looking for new members to fill those gaps. I am also looking at how the members of the team were selected, was it based on skill or accessibility? Most importantly, I am looking for a team that works well together.
What are the top-two common mistakes entrepreneurs make?
The most common mistake is not understanding the market. This includes the structure of the market and the demand for the product. Who would be willing to pay for this technology or innovation and why? In the physical sciences, a mistake a lot of entrepreneurs make is that they have not paid attention to the ability to scale- up economically. They haven’t fully modeled the process for producing their product at a cost that will be profitable.
The most common mistake is not understanding the market. This includes the structure of the market and the demand for the product. Who would be willing to pay for this technology or innovation and why? In the physical sciences, a mistake a lot of entrepreneurs make is that they have not paid attention to the ability to scale- up economically. They haven’t fully modeled the process for producing their product at a cost that will be profitable.
What is it like being employed by a big company and selecting and representing small companies?
When I bring small companies to Dow, I am representing that company and pitching them internally to my colleagues. I come into the situation with a hypothesis of mutual value and sell that idea to Dow. To be successful at this, I need to understand the group of people to whom the idea will be presented and what they are looking for. Managing impedance mismatch is another part of the job. The way and rate at which large and small companies work is very different. This means managing speed of decision-making and distractions.
What do you expect when you license tech from universities?
I am not looking to license technology. I’m looking for business opportunities. At Dow, we expect the individual researcher to understand what the licensing opportunities are in their field. I am interested in business opportunities, so for a startup that comes out of Cornell, I want them to have a license for the patent for their idea.
What is Dow currently looking for in terms of new technologies or innovations?
Every business has a wish list and a businesses’ strategy can change based on multiple factors. As one example, at Dow we are very interested in closing the circle on the sustainability of plastic in the world. For example, we currently start with petroleum, turn it into plastic, it gets turned into food packaging, and then it is disposed of. We are looking into how we can create a circular economy for plastics. There are many opportunities. Can we start the cycle using a renewable substance instead of petroleum? Can we make polymers that are made of recycled material or can we make polymers that biodegrade or decompose? We are also looking into packaging that is easier to recycle to keep plastics out of landfills, beaches and waterways. One area of interest includes companies that are experimenting with robotics plastic sorting and once the material is sorted, figuring out how it can be turned into feedstock so that it can be made into other valuable products.
Any last tips for startups and entrepreneurs?
Generally speaking, corporate investors like to start talking with startups early, and will give clear feedback about whether they’re a good fit or what needs to be achieved before we will be interested. Take this advice to heart as you would feedback from your discussions with potential customers. It can be very helpful in developing your strategy.
About Edward Greer:
Edward is member of the Scouting & Exploration Network in Dow’s Ventures and Business Development group.
In this role, Edward is responsible for finding and evaluating technologies and opportunities that complement Dow’s robust Research & Development pipeline and have the potential to contribute to the Company’s long-term success. Dow seeks innovations that extract value from the intersection of chemical, physical, and biological sciences to help address many of the world’s most challenging problems such as the need for clean water, clean energy generation and conservation, and increasing agricultural productivity.
Edward joined Rohm & Haas in 1982 as a senior scientist in Analytical Research where he was promoted to manager prior to moving into Computer Applications research. He then transitioned to Corporate Exploratory research followed by Corporate Development. Edward has extensive experience in research management, market development, and business development for the Electronic Materials and Advanced Materials markets. He has contributed to advancements in ceramics, displays, organic electronics, optical disks, photovoltaics, and microwave devices.
Edward earned a B.S. in Chemistry with Honors from the University of North Carolina at Chapel Hill and his Ph. D. in Analytical Chemistry from the University of Wisconsin-Madison. He holds a Certificate of Professional Development from the University of Pennsylvania’s Wharton Executive Education program. Edward is a judge for numerous business plan competitions, and serves on the advisory boards of the Cornell Center for Materials Research and the New York State Energy Research and Development Authority’s Proof of Concept Centers.