Kionix was founded in 1993 to commercialize MEMS technology and intellectual property from Cornell University. We recently spoke with Dr. Greg Galvin, founder and CEO of the company, about his experiences with MEMS tech transfer, acquisitions, as well as Kionix' current status and future plans.
MEMS Investor Journal: How did the technology transfer from Cornell affect Kionix' business today?
Dr. Galvin: The Cornell IP related mostly to a novel silicon micromachining process. That process, although substantially modified over the years, still remains the core of Kionix's fabrication technology. It has proven to be an excellent platform on which to build a wide variety of MEMS products.
MEMS Investor Journal: As the company founder you went through the tech transfer process with Cornell. What was your experience with that and what advice do you have for other companies involved with university tech transfer?
Dr. Galvin: The academic and business worlds are very different--different objectives, motivations, timeframes and the like. As such, the interface between these worlds is usually challenging. Our negotiations with Cornell during the founding of Kionix were challenging and more protracted than we would have liked but, in the end, a good deal was reached that has benefited both parties. I had a bit of an advantage in having worked for Cornell for the previous nine years, so I knew all the players and how to navigate a complex organization. As for advice to others, recognize that the university probably does not understand your business. You will need to educate them and be very patient.
MEMS Investor Journal: Are you still closely working with Cornell?
Dr. Galvin: We continue to work closely with Cornell, not so much on our core business but in explorations of some new technologies and future business opportunities.
MEMS Investor Journal: After Kionix was acquired by Calient Networks in 2000, it was relaunched with a new business focus on inertial MEMS and microfluidics just a year later. What happened?
Dr. Galvin: Kionix was founded to develop inertial sensors and microfluidics. In 1999 and 2000, we became involved in micromirror arrays with Calient Networks, a California-based provider of photonic switching systems and software. At the time Calient acquired Kionix and as part of that transaction, we spun out to Kionix shareholders a new company that reclaimed the Kionix name post-acquisition. The Kionix that was acquired became a subsidiary of Calient Networks developing optical devices, and the "new" Kionix continued the historical business of the original Kionix, namely inertial sensors and microfluidics.
MEMS Investor Journal: In 2004 you announced a $28.5 million venture financing round. What was the purpose of that money and what is the current status?
Dr. Galvin: The financing was used to fund the growth of the company, staffing, product development, production equipment and the like.
MEMS Investor Journal: Kionix' current focus is inertial MEMS sensors such as gyroscopes and accelerometers. How does your company fit into this increasingly competitive market segment? How do you compete with other industry players such as Analog Devices, Freescale and VTI?
Dr. Galvin: Kionix is doing very well even though the market continues to be ever more competitive. The emergence of a viable consumer electronics market for inertial sensors, in addition to the historical automotive market, has created a lot of opportunities for a number of suppliers. Kionix was fortunate to get an early lead in the consumer sector with its small form factor tri-axis accelerometers. We continue to build on that position.
MEMS Investor Journal: Are you currently profitable?
Dr. Galvin: We do not disclose financial information.
MEMS Investor Journal: How do you plan to grow your business and which new products are in the pipeline?
Dr. Galvin: I cannot discuss specific products, but we see strong growth in inertial sensors for the consumer electronics sector over the next few years as well as opportunities in the more traditional automotive markets. We will continue to innovate products to meet the needs of these two markets. In addition Kionix will likely start to release some new products in the microfluidics area.
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Dr. Galvin founded Kionix in 1993 to commercialize a novel micromechanical technology pioneered by researchers at Cornell University. From 1993 to 2000, Kionix grew from its two founders to over 40 employees and developed products in inertial sensors, microfluidics, data storage, micro-relays and micro-optics. Late in 2000 Kionix was acquired by Calient Networks of San Jose, CA and renamed Calient Optical Components. Just prior to the acquisition, a new company was spun out to then Kionix shareholders to pursue inertial sensor, microfluidics and data storage markets. This company took back the name Kionix post acquisition. From the acquisition until June 2002, Dr. Galvin served as president and CEO of Calient Optical Components and on the boards of both Calient Networks and the new Kionix. In July 2002, he returned full time to Kionix as President and CEO.
Dr. Galvin has a B.S. from the California Institute of Technology in Electrical Engineering and a Ph.D. in Materials Science from Cornell University (1984). Dr. Galvin served for over five years as the Deputy Director of the Cornell Nanofabrication Facility (CNF) in which the Cornell micromechanical research was conducted. In addition to his doctorate, Dr. Galvin has an M.B.A. degree from Cornell (1993). Prior to founding Kionix in 1993 he was employed by Cornell University in the position of Director of Corporate Research Relations, focusing on transferring technology from the university to industry. Dr. Galvin's graduate research was in the areas of thermodynamics of silicon under ultrafast melting, ion beam analysis, and thin film technologies. He has published over 20 technical papers and holds 15 patents. He is a member of several scientific societies and the American Management Association. Dr. Galvin is a founding member, and former chairman, of the Finger Lakes Entrepreneurs Forum. He is a member of the Cornell University Council, the Advisory Council of the Cornell Veterinary College, a Director of the Boyce Thompson Institute for Plant Research, a Director of the Tompkins County Area Development Board, and Director of the El Portal de Belén Foundation.
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