Profile

Name:                          Matthew Baker
Age:                              47
Education:                   BSc. Biotechnology, MBA
Occupation:                Technical Director
Organisation:              Invitrogen

Number of people employed:         4,000
Number of chemists employed:     133
Annual turnover:                                 $2bn

Interview

Have you always envisaged being an entrepreneur and owning your own business? If so what made you decide to be an entrepreneur?  
I have always planned to own and run my own business as it allows greater flexibility and control over research projects. 

How did you become an entrepreneur?
I worked in Sales and Marketing for several years to understand how businesses work. Then, when the right opportunity arose, I was able to set up my own company.  Earlier businesses ideas were not so successful, but you learn a lot from failure and I was always able to secure other employment.

Tell us about your business and product.
We developed a range of kits based on a new technology using pH dependant anionic solid phases. At a pH of about 6, the matrix is positively charged and binds DNA. The DNA is then recovered by switching the pH to 8 where the matrix is neutral or negative and releases the DNA ready for immediate downstream processing or analysis. 

What drove you to leave industry and start up your own business?
Interest in specific research areas that required fast tracking by a very focussed team to allow early entry of products into the market.  Although more risky, the financial rewards are greater with running your own company.

Where did the idea for your business come from?
Customer feedback on the poor performance of existing products

Where did you get the funding from to start the business?
DTI SMART award, Business Angels and own funding.

What help did you have in starting up the business?
The DTI SMART award gave the project impetus and helped generate angel funding.
I was able to get Lab space rent free for a year on the Kent Science Park.
Business Angels were experienced enough to help with business plans and financial control.

Were there any areas where you required help but were unable to find any? 
All high street banks refused to provide loans unless secured against property.

How much time and money did it cost to get the business up and running?
The company set up R&D labs for around £10k with running costs of about £50K pa. As the R&D group expanded VC funding was required.

What jobs did you do before you started your own business?
Employed as Business Development manager or Sales rep for large Pharma and Medical Device companys. At the same time, had own company in distributing related products and eventually became self employed working as a consultant to several smaller companies.

Did they help you?
All experiences in industry help with understanding business principles, but all employers are reluctant to help you set up a potentially competing company.l

What have been the main problems that you've had to overcome?  How did you manage this?
A management team, patent agent and lawyer were essential to have in place at an early stage.  Most were paid in shares or paid later when, or if, the VC funding was secured.
Obtaining VC funding was extremely difficult and took about 18months to find the right deal.
Managing a group of 25 scientists is not easy and requires considerable effort to maintain a focussed, motivated team.

Do you think working in industry gave you an advantage when starting up the business? 
Yes, this was essential to understand the need for good management, marketing and financial control, even in an R&D company.

How has the company grown?
The company grew very rapidly from staff of 3 to a total of 30 within 4 years, all funded by VC.

Looking Back

What would you have done differently?
If we could have hired more senior industrial scientists to manage the teams, it would have been easier. Most people of this calibre are reluctant to move to a high risk start up regardless of salary and share options.

What has been your biggest disappointment?
None.

In the time since you started up, what do you think you have learned about running a business and about yourself?
Managing staff is extremely important and was one of the main reasons why we were so successful.

What's the single most important thing that helped your business succeed?
Teamwork!

The Future

What do you think makes an entrepreneur?  
You must like taking risks, be single minded, optimistic, ambitious and slightly crazy!

What's your next step?  
Another start up company, assuming the right opportunity arises e.g.  Acquire or develop new technology that has huge market potential, with good patent protection, probably in an area of my own expertise. The market must be growing rapidly and potential products must be ready in an acceptable time frame with few barriers to entry.  The right management and R&D team will have to be formed quickly to capitalise on the opportunity.

What else would help chemical science SMEs in the UK?
Better communication and collaboration with academic groups and larger industrial partners.
Good networking organisations help with investment and vetting opportunities.
Mentoring could help start ups get through the early stages.

What are your top 5 tips that you would give to someone who's thinking about starting their own chemical science company?
1. Test your idea or concept out on a potential customer
2. Write a detailed business plan and get it reviewed
3. Make sure you own the IP
4. Put a good management team in place
5. Ensure you have enough funding

Would you start another business?
Yes!