I spend most of the year laser-focused on games. But next week, I’m going to expand my horizons beyond games to the entire tech industry. I’ll be attending CES 2017, the big tech trade show next week in Las Vegas. I’ve lost count how many times I’ve made it to this show, but I still […]
During a political season in which fact checking became a central part of the cultural conversation, somehow facts seemed to matter less than ever to the outcome. This was one of the more puzzling contradictions of this tumultuous election season for me, and honestly, a bit dispiriting as a journalist. So much effort was mustered by […]
Screenwriters do this. So do producers. Now it’s your turn.
(By Jonathan Stempel, Reuters) – A founder of Run-DMC on Thursday filed a lawsuit accusing Amazon and Wal-Mart of selling a wide variety of clothing and accessories bearing the pioneering rap group’s name without permission. Darryl McDaniels, the owner of Run-DMC Brand LLC, the plaintiff in the lawsuit, is seeking at least $50 million of damages […]
When it came to public offerings by tech companies, 2016 emerged like a corpse and only exhibited the faintest of heartbeats by the end. Still, it’s worth re-writing the line that we have all written for the last two years: Next year could be much better! And this time, that could actually turn out to […]
(Reuters) — Downtown Havana resident Margarita Marquez says she received a special Christmas gift this year: web access at home, a rarity in a country with one of the lowest internet penetration rates in the world. Marquez, a 67-year-old retired university professor, was among those selected by the government two weeks ago to participate in a […]
Microsoft kicked off the first ever Global Startup Roadshow last June. Fifteen participating companies were chosen from a list of over 500 startups that achieved global success and aim to introduce their products to the U.S. market. CEOs of the selected startups spent a…
When someone wants to look for a specific user on Twitter, it’s likely that the first thought is to use the network’s search tool. There, one can search by name, username, or by content. But sometimes, this just isn’t enough, making searches too time consuming…
A Baltimore start-up tackles blindness with new innovative treatments.
Warby Parker isn’t the only start-up disrupting the vision space. GrayBug, a company that recently won the Invest Maryland Challenge in Baltimore, Maryland, is revolutionizing drug delivery and treatments for the eye.
GrayBug started after three professors at the Wilmer Eye Institute at Johns Hopkins University–Justin Hanes, Peter Compochiaro, and Peter McDonnell–developed two treatments to help patients who suffer from age-related macular degeneration. The three founders determined that the fastest way to get their innovations to the public was to start a company.
Age-related macular degeneration is a leading cause of blindness in adults 65 and over, with over 20 million cases in the U.S. and Europe. GrayBug estimates that market is worth around $4 billion worldwide. The typical treatment includes receiving injections in the eye every one to two months. GrayBug claims its sustained-release drugs may reduce the number of injections needed to just twice per year–a potential boon for the tens of million patients who describe the experience as disturbing and painful. Other treatments for blinding ocular diseases, such as glaucoma, are in the works.
So far, the company has three full-time employees and more than a dozen advisors. A GrayBug spokesperson declined to offer specifics about the company’s valuation or annual revenue, but says that Baltimore’s thriving start-up scene helped drive the company’s early success. Not only does GrayBug enjoy easy access to a number of prestigious universities and federal institutions, but the Maryland Biotechnology Center and BioMaryland have also extended support.
In recent years, Baltimore has become a thriving hub of health innovation. The state of Maryland ranked No. 2 for science and technology assets (behind Massachusetts), according to the Milken Institute. One of the foremost biotech companies, MedImmune, which is based in Baltimore, developed the FluMist nasal spray influenza vaccine. Other innovators include Zyngenia, a biotech company, and MedImmune’s venture capital arm, which invests in health start-ups.
It started with a simple idea: a portable loo for dogs. But building it into a $10 million company nearly sunk founder Tobi Skovron.
Tobi Skovron has lived what many would see as the entrepreneurial dream. He came up with an idea, started it with a $20,000 loan, and over 10 years built a multi-million dollar business that he sold. But it was a slog: He survived a distributor who undermined him, not to mention a sudden 40 percent drop in his expansion capital (he financed his family’s life on credit cards and one home equity check after another).
Skovron comes from a family of entrepreneurs in Australia. He remembers his father, a “ragingly successful guy,” teaching him two things: 1) “If you want something done right, do it yourself” and 2) “Don’t wonder why or how, go in there and make it happen.”
It Starts With an Idea
In 2003, he and his then-girlfriend (now his wife) Simone lived in a two-bedroom apartment in Melbourne. He bought her a dog and they immediately faced the problem of having to walk the dog regularly, as potty-training seemed unrealistic. “There needed to be a better way to live with a dog although we could only afford an apartment,” Skovron thought. Simone said, “If we could only get a patch of grass on the balcony.”
Bingo! Skovron invented the Pet Loo. Two years of R&D as well as patent and trademark filings and it was time. He had taken nothing out of the business and took odd jobs to help keep things together. Simone, a social worker, covered their expenses. “We went, ‘Wow, we’d better do something here or die wondering.'”
He went onto an Australian show called The New Inventors. Similar to Shark Tank, a panel voted on the best idea and then the public got to weigh in. A week later, and the Pet Loo was the cat’s meow, so to speak. In a 24-hour period, he sold 500 units. That turned into a AUS$1.2 million a year business. Skovron had a real salary. But what he really wanted was to build a global brand.
“In Australia we have 7 million cats and dogs combined,” he says. “In the U.S., you have 200 million. I wanted to be in the biggest market and the best market.”
Getting Some Big Attention
Things continued to look up. In 2008, at a European pet show, he met the CEO of PetSafe, a major manufacturer of pet-related products. Skovron flew to the company’s headquarters in Tennessee. The CEO told him, “We believe you, but go prove it. Grow big enough and we’ll buy you.” Big enough, as in $10 million a year in sales.
He and his now-wife moved with their two dogs to Los Angeles to expand the company. The day he did, the global financial crisis caused the Aussie dollar, and the $300,000 in start-up capital he had saved, to drop by 42 percent in value. “We’re entering the biggest consumer market in the world and I have $160,000 odd dollars to throw at it,” he says. “It’s not good enough.”
Then the other shoe dropped. He already had an American distributor that was sending back roughly $300,000 a year in sales to the Australian company and was supposed to be working with retailers. Only, the man hadn’t. All the sales were done direct from that company’s website. Skovron’s business plan had been to work with the largest pet stores in the country.
Back to Struggling
The two parted ways, so Skovron was on his own. He used credit cards, a home equity line on his house in Australia that soared to $500,000 by the end of a year, and the occasional night of eating cereal for dinner, to fund the company. Sales grew, but the business was tough.
“I was 31 years old,” he says. “This could not go on. It would consume me, so I needed to find another route.” The choices were taking on debt, something he was brought up to avoid, bringing in private equity investment and all that can entail, or getting acquired. His company’s revenue had hit the $10 million mark. He called PetSafe’s CEO.
They met and it sounded as though he’d get an offer. But, at the last minute, he got a call: “For reasons I cannot disclose today, we’re not going to make an offer.” It hit him hard, but he didn’t give up. More time, a new line of “fresh air cat litter,” and he went back yet again.
Ship Comes In
It turned out that the previous time, Skovron had shot himself in the foot by insisting that all of his staff, 12 at that point, would be brought into the company as part of the acquisition. But two of the employees were not a fit. By chance, they had left for their own reasons since and the deal, a big one, went through in 60 days.
Now Skovron works for PetSafe. “I put my family in a position where we don’t have to worry like we used to worry, whether it’s food on the table, keeping the lights on, or a two-day vacation,” he says. Plus, he gets to keep growing the product lines he was responsible for.