Accounting firm Grant Thornton LLP is having a blast, or more accurately, a BLAST!, an acronym that stands for Business Launch and Acceleration Services for Technology companies. A new venture aimed at early-stage technology firms, it combines benefits such as compensation planning, tax consulting, raising capital and information technology consulting services into one customized and flexible value-priced package.
To kick off the new service, Grant Thornton LLP, in conjunction with TechAlliance@NewNevada, recently sponsored a competition for early-stage technology companies, with the prize being $25,000 in business consulting services. A panel of judges made up of Nevada venture capitalists, angel investors, business consultants and entrepreneurs selected Carson City-based MC-21 over the other finalists, HealthDirector, Traos, 2Phase Technologies and WordMaster. Each company presented a five-minute overview of its business plan before an audience of more than 250 people, and MC-21ās plan was voted the best.
Michael Thomas, executive director for TechAlliance, said his company is committed to giving local entrepreneurs a forum to present their business plans and receive feedback from seasoned professionals. “We are ecstatic with the response from participants and the people who attended. Itās clear that Nevada has quality technology companies here,” he said.
Mike Bosma, Grant Thorntonās Reno office e-tech practice leader said he was equally impressed. “The ability for companies to see what others are doing was an invaluable experience,” he said. “I particularly enjoyed the feedback the judges gave the contestants. This offered the companies in attendance insight as to what capital sources to seek.”
Bosma went on to explain, “We will be able to help the winner obtain its objectives. These types of companies traditionally need a wide array of services to get off of the ground. The services can range from refining business plans, structuring stock option plans and introducing them to sources of capital. Grant Thornton is looking forward to the prospect of working with MC-21.”
With three employees, five-year-old MC-21 operates a manufacturing plant in Carson City. Company founders David Schuster and Michael D. Skibo are both Ph.D. materials scientists with extensive experience in advanced, high-performance materials. They are the inventors of the only low-cost, large-scale commercial stir-casting process for manufacturing MMCs (metal matrix composites) in operation today. MC-21 has patents pending on this new process, which is available for licensing to large companies.
MC-21 actually stands for Metallic Composites for the 21st Century. It is focused on the manufacture and sale of a high-performance aluminum-based material in sheet form. This aluminum is used in the electronics and computer industries. Because of its unique technology, the product is starting to displace stamped aluminum and copper parts in large electronic circuit component markets. “Our material is composed of ceramic particles in aluminum produced in a sheet form,” Schuster said. “We melt aluminum, add particles, cast rolling slabs, roll the slabs into sheets and then ship them.” He said the firm sells the sheets to some of the largest producers of heat spreaders and heat sinks.
Although particle-reinforced aluminum MMCs produced by stir casting are considered to be the most commercial of the composites, finished parts are still not being manufactured in large enough quantities. Enormous markets for lightweight cast aluminum MMC automotive components exist if finished machine parts can be supplied in large quantities at competitive prices.
Schuster, MC-21ās president, said he and Skibo are looking for the funds needed to expand operations. Capital between $2 million and $3 million is being sought to scale-up production and recruit staff to grow the company to over $75 million in sales by 2004. Schuster said they expect to do this by selling both sheet products and process technology licenses. Although the company has progressed past the prototype stage and has developed relationships with very large corporate clients, it simply canāt keep up with demand. “We have big plans for our manufacturing technology,” he said. Schuster said he thought the BLAST! competition was excellent. “We think with the BLAST! Program, Grant Thornton can help polish our business plan and get it in front of people,” he added.
Based on the success of the event, TechAlliance@NewNevada plans to sponsor similar entrepreneurial forums in the future. Companies interested in supporting these events should contact TechAlliance executive director Thomas.