DC-DC Converters and Accessories for Military, Avionics, and Space Applications. Presentation to SPAC January 26, 2007 Dan Sable President, VPT Inc.

Transcription

1 Power Your Critical Mission Today DC-DC Converters and Accessories for Military, Avionics, and Space Applications Presentation to SPAC January 26, 2007 Dan Sable President, VPT Inc.

2 The Founding of VPT Inc. How VPT Inc. went from a tiny Va Tech spinoff company with minimal capitalization to a multi-national organization employing >130 people world-wide A Primer on How to Start Your Own High-Tech Spin-off Business From Virginia Tech

3 The Answers Timing (another definition of luck) Recognize luck and then capitalize The SBIR Program Partner with the right people FOCUS ON WHAT YOU DO BEST! Think GLOBAL ECONOMY!

4 Low Capitalization Startup 3 original partners started with a total of $15K Had a 2 room office at the VA Tech CRC Original Name Virginia Power Technologies Inc. Spin-off of Virginia Power Electronics Center (VPEC) Now called CPES From the start we had 2 problems: Virginia Power (Power company) threatened a lawsuit unless we changed our name VPT Does NOT stand for Virginia Power Technologies Our telephone number was very similar to American Representative to Paris Lingerie Show We had a lot of calls about our line of Wunder-Bras

5 Original Partners

6 1994 Small Office at the VTCRC

7 First Income Sources Small consulting work and engineering services Proof of concept product development Analysis of customer power systems Electric Vehicle Battery Charger for GE Power converter for automobile active suspension system for General Motors Modeling of a space power system for Martin Marietta Adapter Power converter for Samsung Power Converter for Smart Materials for Martin Marietta

8 VPT Major Turning Points 1. First Successful Phase II SBIR Award: Good Intellectual Properties: 1996 Single Stage Power Factor Correction Circuit High Efficiency Adapter Power Converter 3. Strategic Partnering with Delta Electronics (largest power supply company in the world): 1997 License of intellectual properties Minority Equity Investment Joint Venture in Military/Aerospace DC-DC Converters 4. Purchase of Building in Blacksburg Industrial Park: Establishment of dedicated Marketing/Sales Office in Seattle: Qualification to Mil PRF 38534: Award of contract for GPS Satellite hardware: 2003

9 The SBIR Program Mandate by Congress that all federal departments must allocate a significant % of their research dollars to small businesses For ~20 years, DOD, NASA, DOE, NSF, etc, have released annual solicitations for projects to be performed by small business Typically, $100K Phase I, $750K Phase II DOD: NASA: DOE: NSF: ALMOST ALL VA TECH SPIN-OFF COMPANIES HAVE USED THE SBIR PROGRAM TO START

10 The SBIR Program Without the SBIR program, VPT would never have succeeded, however.. A lot of companies that do SBIR contracts, (including quite a few Va Tech spinoffs) NEVER commercialize their work, but rather live entirely off of SBIR contracts and other government and commercial research contracts.

11 WHY? There is a HUGE step between an idea with a prototype and an actual product that can be marketed and manufactured profitably with the quality demands of your customers VPT invested heavily in product development, manufacturing, marketing, financial systems, IT systems, and quality systems This required a strategic partnering with Delta Electronics Anyone can build a prototype. Very few people can build a successful product

12 However, we still did not focus Continued custom power converter development for space applications Bought out GE Electric Vehicle Division Started a spin-off company for commercial power converters in China

13 Power Supply for Space Station 650W Power Converter Interior View Impossible to make money on custom power converters for space applications with small volume, but difficult requirements.

14 VPT Electric Vehicle Drive and Motor The road to electric vehicles is paved with companies that have lost their shirt.

15 Then we started to focus Living off of SBIRs was never a VPT option VPT started to focus from: Commercial power converters Military DC-DC converters standard products Electric Vehicle power converters Smart Material power converters Consulting and custom power converter development TO: Military/Aerospace DC-DC Converters standard products Sold off electric vehicle business to PEI Electronics Sold off China company to BelFuse Took only SBIRs that related to our core business

16 VPT Focus Producer of DC/DC power converters, EMI filters and assemblies for high-reliability markets Military Aerospace Satellites Hi-end Industrial 28V EMI Filter DC-DC Converter 5V/30W or 15V/5W, or 3.3V/15W or 12V/100W, Etc., etc,)

17 VPT Business Thick Film Hybrid Standard Product DC-DC Converters and EMI Filters Military COTS Standard Product DC- DC Converters and EMI Filters Custom Designs and Assemblies using either or both technology