FROM ENTREPRENEURS

07 STORY 908
Devices
UTEC

Anytime, anywhere, by anyone ...
A serial entrepreneur aiming to introduce onsite mass spectrometry

908 Devices, Inc.
CEO&Co-founder
UTEC Partner

PROLOGUE

If a highly toxic gas is released at an accident site and is inhaled by emergency workers or other personnel... In the past, even in situations like this which urgently require chemical analysis, such chemical analysis could only be performed in centralized analysis laboratories with specialized personnel, and required large amounts of time. However, there is currently a venture company taking on the challenge of creating a world where chemical analysis can be conducted “anytime, anywhere, by anyone.” 908 Devices is a company based in Boston, Massachusetts in the USA. The mass spectrometers developed, manufactured and sold by this company have been made compact and portable by applying its independently-developed High Pressure Mass Spectrometry (HPMS TM) technology. The application of this technology is being adopted by a wide range of industries such as biopharmaceutical manufacturing sites, fire stations, police stations, mines, and oil fields all over the world. UTEC partner Naonori Kurokawa, who has supported the company's growth, spoke with its CEO Dr. Kevin J. Knopp.

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SECTION01 : Bringing innovation to the world of chemical analysis

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Bringing innovation to the world of chemical analysis

Dr. Kevin J. Knopp has experience in the establishment and exit of venture companies. In order to bring about innovation once again, he has set his sights on the world of chemical analysis.

Kurokawa:
Tell us about your background and the circumstances that led to you co-founding 908 Devices.
Kevin:
I have a PhD in Electrical Engineering where I specialized in optics and lasers. My first job out of graduate school was with a company at the height of the Dot.com bubble, and I saw its rise and fall. I learned a lot by putting myself into such a changing environment.

My experiences in the world of venture companies got me hooked. I then co-founded a company called Ahura Scientific, which we built over about an 8-year period and sold to Thermo Fisher Scientific. Once that business was transitioned, I got the urge to start a new company with the talented colleagues I enjoyed working with in the past.

That company was 908 Devices, established in 2012. We are using our broad technology platform to break the gold-standard technique of Mass Spectrometry out of the confines of a centralized laboratory, and are bringing it to the point-of-need. With “creating innovations in chemical and biochemical analysis” as our shared vision, we have kicked off our journey to build an impactful and disruptive company!

SECTION02 : An ideal investor resonates with the vision

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An ideal investor resonates with the vision

908 Devices is a Boston-based venture company. What were the situations that led to its encounter with UTEC?

Kurokawa:
How did you find out about UTEC, and why did you choose a Japanese VC?
Kevin:
We wanted to build a syndicate with capable investors that resonated with our vision, and got to know UTEC through our lead VC ARCH Ventures.

From the first interactions with Nori and the UTEC team, they understood the fundamentals behind what we planned for our technology pursuits and what it would take to get our products to market. That impressed us. Understanding the fundamentals is critical for seed-stage and early-stage companies with technology under development.
While managing a business, things can take longer or hit challenges and it is important to have investors that can properly size up and gauge the magnitude of the problem at hand. I felt that UTEC was an investor with the ability and experience to make those kinds of decisions.

Despite UTEC being in Japan and 908 Devices being in the USA, there were no problems with communication. UTEC was able to do thoughtful and complete diligence and reach a $1M investment decision in just 60 days.
While managing a business, things can take longer or hit challenges and it is important to have investors that can properly size up and gauge the magnitude of the problem at hand. I felt that UTEC was an investor with the ability and experience to make those kinds of decisions.

Despite UTEC being in Japan and 908 Devices being in the USA, there were no problems with communication. UTEC was able to do thoughtful and complete diligence and reach a $1M investment decision in just 60 days.

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PROBLEM

908 Devices is aiming to create a worldwide environment where mass spectrometry can be performed anytime, anywhere, and by anyone. Although its target market is global, there were limits to the resources of the company on its own.

SECTION03 : UTEC was a key partner in entering the Japanese market

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UTEC was a key partner in entering the Japanese market

The expectations 908 Devices had for UTEC were not only in the capacity of an investor. Since it was intending to expand globally, UTEC also helped to guide it in the Japanese market.

Kurokawa:
How did the collaboration with UTEC contribute to 908 Devices?
Kevin:
UTEC served as a partner to 908 Devices since their first Series A investment that helped launch the Company. UTEC remained committed and participated in our Series B and Series C fundraises. That is exactly what we wanted when selecting a syndicate investor - that they would follow through and stay the course with the Company over time - so in that sense UTEC was an ideal partner.

The support we also received in the Japanese market was immeasurable. Japan has many leading academic institutions and a vibrant industrial base. UTEC helped through the years to build strategic interest and connections between parties and on top of it all, even sold a product or two!! We are deeply grateful to Nori and the UTEC team.

Japan is an attractive market because the cellular engineering industry is booming. Research on Nobel Prize-winning induced pluripotent stem cells (iPS) and regenerative medicine applications are booming not only in the US but also in Japan. Cell and gene therapeutics and their related modalities are all important markets driving our growth. We will continue to focus on the Japanese market from here on, while cherishing the connections UTEC has built for us.

FINAL SECTION : Going public on the NASDAQ.
The journey of 908 Devices goes on.

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FINAL SECTION

FINAL SECTION

Going public on the NASDAQ.
The journey of 908 Devices goes on.

908 Devices was newly listed on the US Nasdaq stock market in December 2020. We asked Kevin to look back on its exit and discuss the future plans for the company.

Kurokawa:
Your exit strategy was a listing on the Nasdaq market. Why did you choose an IPO versus an M&A?
Kevin:
For us, we felt that given the breadth of our technology platform and the large opportunity in total addressable market we have, that an IPO was a better path than selling the company as there is so much more we can pursue to realize its full value and potential. Going the M&A route would have largely left that value on the table.

In December 2020, 908 Devices was listed on Nasdaq, something that not only myself, but all of us in the company are very proud of. We believe that being listed on Nasdaq serves as a validation to our customers that they have partnered with a company that is professional committed and has the resources to continue launchingexciting new products. Also that we are a company that can continue to support their missions, and to just be there with them, on their journey, for the long haul.
Kurokawa:
What are your plans for the future?
Kevin:
We have come far in 9 years since we expanded beyond a lab bench at the University of North Carolina Chapel Hill. However, our endeavors have really only just begun. We are just scratching the surface of what our proprietary platform can do and its market potential. We believe we can continue to drive down the size, increase our analyte panels and capabilities, and generally just make things easier for our customers from A-Z, from sample to answer.
Kurokawa:
In conclusion, please give a message to scientists and entrepreneurs in Japan.
Kevin:
There are many exciting technologies being developed that really have disruptive potential in the life science tools market. I think it is important though to focus on the problems of a prospective customer and how your own technologies could solve them seamlessly and efficiently. Don’t get too caught up in just the technology. Sales and commercial activities are just as important and equally challenging.

Teams are also an essential element. At 908 Devices I have been very fortunate to be surrounded since Day 1 with great co-founders and to have met partners to help guide and construct this business over time. One of those partners was UTEC. I would like all scientists and entrepreneurs in Japan to value their teams and work diligently to realize their visions.