Chemical StartUps Series #16: AdaptiveSurface Technologies
Please introduce the value proposition of your company. How will your company disrupt or dramatically change how things are currently done?
AdaptiveSurface Technology (AST) solves high-value, complex, difficult to solve, and long-standing repellency problems across a variety of industries. By creating slippery surfaces that repel complex viscous fluids and biofouling,
AST products provide economic benefits to our customers by reducing energy use and reducing waste plus bringing emissions reductions and addressing global sustainability issues.
While the core technology set is a platform, AST is focused on bringing three main product groups to market before exploring the rest of the technology’s potential. To do so AST uses its Harvard-licensed SLIPS? technology, company proprietary Surface Active Polymers (SAPs) and licensed-in IP as needed to deliver solutions. For lower volume solutions AST delivers finished product coatings and raw materials additive packages, and for higher volumes markets it delivers value via a licensing-type route.
AST’s current focus areas:
- SLIPS Repel?: Industrial tank coatings for viscous liquid manufacturing
- SLIPS Foul Protect?: Anti-fouling marine coatings with no biocide
- SLIPS ZeroTM: Packaging coatings to improve emptying and enhance recyclability & reusability
AST’s products are very different to current offerings, such as structured super-hydrophobic coatings or copper-biocidal marine paint. SLIPS? functionality provides an immobilized fully-liquid surface layer, that prevents foulants from interacting with the protected surface.
As an example, AST is commercially selling its SLIPS? Foul Protect marine coatings, which provide reduced drag leading to up to 8% fuel savings and multi-season service life, all while being environmentally beneficial as the anti-fouling effect is created without using any biocides.
Who are your customers and how large is the addressable market for your products/services?
AST’s customers cover a wide range of entities, from consumers who are recreational boaters, through SME manufacturers and on to large global corporates. Each of its three main market sectors are $1Bn+ market opportunities. For instance, large commercial shipping vessels, which could benefit from using SLIPS Foul Protect? coatings, consume $90Bn of fuel every year and account for nearly 2% of the world’s energy use and CO2 emissions. Any %point saving on fuel burn is a major economic advantage.
How scalable do you believe your company is?
AST will not become a manufacturer of products and hence has a scalable capex-light model. For direct products sales the company outsources production to toll manufacturers. For the next phase of growth the company will increase its commercial and business development resources.
Can you summarize the journey of your company up to this point?
AST was founded and spun-out of Harvard University in 2014. Currently it has its three main products either already on sale (Repel & Foul Protect) or ready-for sale (Zero). The next focus is to expand from initial sales made in 2019 and conclude a number of pending potential deals with large corporate customers.
AST has been well supported by institutional investors such as Anzu Partners, BASF VC and Tokyo Electron VC, as well as HNWIs and family offices. In addition it won a $5m grant from the US Government’s Department of Energy’s ARPA-E program, to support the development of its marine coatings range.
What is pivotal for your success going forward?
Increasing commercial traction and sales are key for the next 12-18 months for AST, as the company pushes towards cash-flow break even.
Can you provide some KPIs that helps understand the size and growth of your company?
Currently the business employs c.15 people with a head office in Cambridge, MA, USA and a marine test site in Florida. Given the nature of the markets that AST is operating in, it has always been international in its outlook and customer base.
How can strategic partners from the chemical industry or financial investors contribute to your success?
AST is intending to raise $3m-$5m in early 2020, to increase its commercial resources and bridge the gap to cash flow break-even operations. Strategic investors in related industries are always valued by the company as potential commercial partners as well as investors.
Who is the primary point of contact for investors and strategic partners?
- Name: David Ward
- Role: CEO
- Email: [email protected]
- Web: www.adaptivesurface.tech
- LinkedIn: https://www.dhirubhai.net/in/warddavidr
Disclaimer: The sole responsibility for this content is with the company profiled.
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