In the almost twenty years I have known Jim Zitek, I have always been impressed with his depth of knowledge. He is one of the rare individuals who combines a practical analytical mind with an understanding of the factors influencing the future. I have learned to admire his character, and appreciate his values, which are at the core of his beliefs Continue Reading...Todd Lefko
I have known David for nearly twenty years. I have followed his career since we worked together at 3M and I have always found him to be a superior source on insight into technology innovation and trends. He has an excellent analytical approach that is coupled with the ability to define where the cutting edge will be successfully commercialized. He Continue Reading...Steve DunbarSenior Consultant, Cognovis Group
Helping new, disruptive technology companies develop and grow their ideas, products and services in today’s volatile economy is what I love to do. My focus...
Commercialization specialist for emerging technologies. Blends business know-how with technical expertise in thin films, nanotechnology, MEMS , sensors, actuators, and optics to applications in new...
At Harbor Capital Group Inc. our passion is to help entrepreneurs and investors build successful companies and be rewarded for their vision and risk. Today, we believe there are significant investment opportunities in the disruptive industries of 3D Printing, Big Data and Robotics; and that this is the right time to invest in these technologies and these industries.
Investing In Disruptive Technologies
Requires Great Technology And Great Timing
We know that investing in new, disruptive technologies can be very rewarding; but funding requirements and availability can be difficult, having the freedom to pursue one’s vision can be difficult to obtain; and the timing of technology adaption and market penetration is critical.
Here is an example. In 1915 David Sarnoff submitted an idea for a “radio music box” but development was held up by the war. After the war, GE was formed with Sarnoff as VP. He knew radio needed content so in 1921 he broadcast the Jack Dempsey fight and radio took off. Within three years, sales were $83.3 million. In 1926, as General Manager of RCA, he formed National Broadcasting Company (NBC) made the first commercial television broadcast in 1941 but again development was held up by the war. In 1960 with the broadcast of the first Presidential debates, national broadcasting revenues took off and by the 1970’s TV commercials were expensive and hard to get.
The Internet, created in the late 1940’s didn’t become a global product overnight; it took the creation of the “World Wide Web” in the early 1990’s to get the explosive growth we’ve seen over the past 20 years. Today, it is challenging television for revenue growth and some predict that much of television programming will be delivered over the Internet in the next few years. Timing is important.
We think the technology and timing is right today for 3D Printing, Big Data and Robotics.
Many Of Today’s VC Firms Have Fallen Out of Favor
With Today’s Disruptive Technology Entrepreneurs
Funding new private companies was done by wealthy individuals until about 1957 when the private equity firm ARDC, raised money to invest $70,000 in Digital Equipment Corporation which was later valued at $355 million when it went public in 1967. By the 1960’s, Investment firms were using Limited Partnerships to raise a pool of money for investments in private companies. Today, these pools of money have become gigantic with some “pools” in the billions of dollars.
These large pools of money, with their 2% management fee and 20% of the net profits, have changed the scope of private investments. For example: Fees have become enormous driving up minimum investment amounts and adding bureaucratic costs that now require huge dollar payouts for investors. It requires huge investment dollars to get huge dollar profits because money is not scalable.
There are many other issues that current day Entrepreneurs have with venture capital firms as well including but not limited to: micro-managing their portfolio companies to the goals of the venture capital firms rather than the goals of the portfolio company; long extensive evaluation periods because of funding size and management layers; frequent changes in direction based on exit trends research done by the venture capital firm.
We’re A Better Funding Model That
Helps Ideas Become Successful Companies
At Harbor Capital Group, we start the funding process with the question: how can we help this technology, this team build a successful company rather than how much money do you need and how soon do you think it will be before your are able to exit?
Since we invest in disruptive technologies and are currently focused on 3D Printing, Big Data and Robotics, we have already placed ourselves in industries with explosive growth; so we can focus on innovative technologies and Entrepreneurs with vision and leadership skills.
That’s why our funding model has been designed to work with startup and early-growth companies. We understand that, among all the steps in the process, it is critically important that we invest only the amount of money the company needs to get to the next phase so money is not wasted and so that entrepreneurs can retain more equity for themselves. More incentive.
We also designed the model to allow the entrepreneur to realize his vision for the company. Since we made the investment based on the technology and the vision, why interfere and try to micromanage the implementation of that vision.
We believe a model designed around these basic concepts will produce more than the average number of successful companies and more revenues and profits per dollar invested than traditionally funded companies.
More successful companies per dollar invested means more successful Investors.
We also reduced costs, time and many of the hassles required throughout the funding process by using an Internet platform. We believe you will agree that by changing the focus from fees and term sheets to focusing on the success of the company, we can reduce risks and increase the rewards for everyone.