Micro Nano Conference Amsterdam, Dec 13, 2016

Micro Nano Conference Amsterdam, Dec 13, 2016 Tension between Academic & Business culture Pitfalls of doing business in the technology market - Lessons Learned Organic growth v Investment (VC) Rob Santilli – Founder & CEO of AML, rob@aml.co.uk Visiting Professor at Imperial College London Until recently board member of Solmates BV for 5 years. www.aml.co.uk 1

AML History AML Formed in 1992 Organic – no external investment (founders in MEMS since 1985!) started R&D designing & making MEMS chips. Lesson Learned- you can be too early! Chips-High tech risk & no route to scaling up – difficult to make - changed direction 1999 to become a leading global semiconductor equipment manufacturer of wafer bonding tools – chips to machines Lesson Learned- be prepared to change direction! Lesson Learned- should have listened to the market & changed sooner! www.aml.co.uk 2

AML Now In-situ AML aligned-bonding platform is now recognised to be the best!.but took a long time. Lesson Learned - Stick to your guns Wafer Bonding now has bigger applications outside MEMS e.g. IC WLP/3D, LED, Temporary Bonding. .Investors would have given up years ago www.aml.co.uk 3

Organic – AML route External Investment Slow growth - long term view Faster growth – short term view 5years Can do what you want – time to find niche! Change direction Direction dictated by investors Stay in control No control Admin light Admin heavy, frequent; sales forecasts, business plans, why this? why that? Can move fast, quick decisions Slower – need approval & proof Have to find your own Exit route Exit route planned for you Keep your job! Even if successful u will probably lose your job! Not having people tell you what to do is worth a lot of money! Good if you don’t mind being told what to do! Know when to break from Organic www.aml.co.uk 4

Tension between Academic & Business culture Academia Industry Friendly Collaborative approach: freely share information – common good War with competitors! Military strategies used. Information secret, commercial objectives Improve knowledge Improve the product/bottom line Publish papers to improve career Technical & commercial success to keep your job! Slow moving – but research is slow Fast moving – more important it works than understanding fully why! Technology led Market led Love problems Hate problems No wonder its difficult for the two to understand each other! www.aml.co.uk 5

Industry v Academia – How to get the best from each other? Firstly understand & accept the differences Don’t put each other in the critical path Get to now each other & build up a relationship with someone with same interests – will take time Find a non critical, non time dependent project of interest to both parties – build from there Probably the best way for industry to get the most from academia is to extract the people via e.g. PhD project. Don’t start a company based on expecting deliverables from a University – IP tough dealing with commercial arm! If you can overcome the differences there is a lot to gain www.aml.co.uk 6

Pitfalls of doing business in the technology market No different to any business – Key is you need a product that matches a market need CIM def “The anticipation, stimulation & satisfaction of a customers needs profitably” However some differences: Technology markets moves very fast! Tough to keep up Market is global not local – USA, Russia & Far East. harder to find & communicate with them. Need specialised highly skilled staff - short supply! Normally high capital start up costs cf. web business www.aml.co.uk 7

Some tips for starting & growing a high tech business Get the best people you can afford! Cheap people are actually more expensive! Don’t rely on consultants! Do it yourself. Only consultant of use in 25 years was ISO9000 to help draw up procedures Think Global! Not just EU – easier than you think – AML built up good network of agents – indispensable – takes time. US & Far East, key markets Lesson learned, export or die No money in MEMS R&D services - Lesson Learned - Products better than services Systems better than components – can add value www.aml.co.uk 8

Summary of lessons learned You can be too early in a market In a new developing technology, change will happen, be prepared to change with it Stick to your guns, may take time but u will get there Think Global – even if you are small Talking to customers is better than a market report Promotion is important – customers need to know you exist! Staff are your most important asset – but not all be able to ride the whole journey with you Beware getting sucked into admin heavy funding that will distract you from main task Don’t grow organically for too long. www.aml.co.uk 9

Finally Be careful what you wish for! Good luck www.aml.co.uk 10

Micro Nano Conference Amsterdam, Dec 13, 2016 . Rob Santilli -Founder & CEO of AML, rob@aml.co.uk Visiting Professor at Imperial College London Until recently board member of Solmates BV for 5 years. www.aml.co.uk 1. AML History AML Formed in 1992 Organic -no external investment