By Brian Brus
The Journal Record


OKALHOMA CITY- University of Oklahoma professor Patrick McCann grew weary of watching his students leave the state for jobs in the high-tech industries, so he decided to stat a company of his own.

He had one big problem, though: McCann had never run a business before, much less created one from nothing.  As soon as he made the decision, he stepped in to the uncertain and difficult world of venture capital funding.

That was seven years ago.  Ekips Technologies, with McCann as chief executive, recently finished a $2.4 million round of raising capital, “and once you get over a couple million dollars, that’s really the mark to let you start doing things, especially her in Oklahoma,” he said.

The company’s Breathmeter has already proven successful in clinical trials for the detection and measurement of gases in exhaled human breath for the purpose of diagnosing asthma and evaluating the disease’s severity and control level.  It has more potential applications, McCann said.

Jim Mason at The State Chamber said Ekips is an exceptional example of venture capital done right.

“Most people start off by asking, ‘Where can I get a grant?’ They assume there’s money out there that they can get without any work,” said Mason, executive director of the Oklahoma Nanotechnology Initiative.  “About a third of them, once they find out there’s no free money, kind of just drop out.

“Then there are people who want to follow up until they learn how big the personal commitment is involved to go into business,” he said.  “A bunch of those get discouraged…but I guess that’s really a good thing.  Because you don’t want to bet the house on an idea that doesn’t make sense, or an urge, or just a feeling of, ‘I want to work for myself.”

It’s not uncommon for a wannabe entrepreneur with high-tech dream to come knocking on The State Chamber’s door looking for money, Mason said. “They all start out, I’ve got this idea I’ve been kicking around, but I need to know where to go next,” He said.

Mason said several different funding sources are available depending on the type of venture proposed.  He deals with technology companies, so he sends entrepreneurs to i2e, or Innovation to Enterprise, which manages the Oklahoma Technology Commercialization center for the Oklahoma Center for the Advancement of Science and Technology.   OCAST is a state funded agency focused on growing research and technology like Ekips.

I2e helps develop business plans, prepares for meeting venture capitalists and even arranges meetings.  The company also has a small seed capital fund that can help companies get started, he said.

I2e President Greg Main said his company has worked with about 600 clients over the last seven years, 125 of whom successfully raised capital totaling about $220 million.  Of the total, $33 million came from venture capitalists in the state and nearly $130 million came from out of state.  The balance was contributed by early-stage investors, or “angel” investors, who are more willing to risk funding in a favorite industry for a larger potential payoff for success.

“Markets have been changing over the 4 last few years; it’s much harder now than before the turn of the century,” Main said.  “Venture capital is moving farther downstream so they can avoid business-model risks.  They would rather help grow the company to profitability instead of early development stages.”

Mason said the most difficult money stage is the first step-finding seed or even pre-seed money.  “In order to get venture capital, you have something to show than just an idea,” he said.