Originally published April 23, 2007 at 12:00 AM | Page modified April 23, 2007 at 2:00 AM
Brier Dudley
Getting down to nuts & bolts
Fresh from reading Mark Anderson's latest newsletter, questioning the value of ad-driven Web 2. 0 businesses, I found myself listening to...
![]() |
Seattle Times staff columnist
Fresh from reading Mark Anderson's latest newsletter, questioning the value of ad-driven Web 2.0 businesses, I found myself listening to entrepreneurs building real stuff you can put your hands on.
Anderson pointed out that ads, not customers, are paying for things like social networking. People actually buy products such as software applications, operating systems and security services. "What does that say for today's entrepreneurs? They are either good at monetizing eyeballs, or they're good at selling out to those who can. What a low-end game!" the Friday Harbor technology pundit wrote last week. "No wonder all the Valley VCs have moved into alternative energy sources: these are real things that people will spend real money (their own) to have."
Anderson might have felt better if he had attended the Early Stage Investor Forum that the Northwest Entrepreneurial Network held last week in Seattle.
A parade of startups pitched themselves to about 100 investors, including venture capitalists and "angels." Some were ad-supported Web ventures, but they were outnumbered by companies building applications, business services, consumer goods and hardware.
Take Metron Systems, a Snoqualmie company that builds laser scanners that map the shape of pistons, airplane components and other fabricated parts.
Chief Executive Ron Ho, a University of Washington graduate previously with Siemens Medical, came to raise $1.5 million. He'll spend the money on demonstration systems and engineers that are loaned out to potential customers.
The 10-year-old company expects to have $7 million in sales and reach profitability this year.
If you own a Ford or a Toyota, you've indirectly put a little money into Metron. One major customer is Mahle Pistons, which makes pistons for the automakers.
The systems, which cost $150,000 to $300,000, measure and inspect a part in about five minutes, compared with the hour it takes using a traditional coordinate measuring machine.
The technology was initially developed on contract for Boeing, but Metron now has exclusive rights to sell it and holds six patents.
Investors didn't seem to question the underlying business; they mostly wanted to know whether it was efficient to loan demo systems.
Cameron Fisher pitched Mobile Semiconductor, his Bainbridge Island startup developing a new memory architecture for advanced mobile phones. He said demand for higher performance memory will grow as more phones connect to the Internet and play games, movies and TV content.
![]()
Fisher came from Virage Logic, a Seattle design group, where he developed the embedded memory used in the Motorola Razr.
He's trying to raise $2.5 million to hire an engineering team of 10 and start marketing products.
It's a hypercompetitive business, several investors noted. They asked about the secret sauce that could give tiny Mobile Semi an edge over giants like Samsung and Toshiba.
Fisher said Mobile Semi already has a patent pending on its unique memory architecture.
The company also has engineering talent. Joining Fisher as Mobile Semi's chief technology officer is Stephen Hellriegel, a senior principal engineer at Cray.
But Fisher's biggest selling point is that he's building a product people will want so much, they might actually pay for it.
Brier Dudley's column appears Mondays. Reach him at 206-515-5687 or bdudley@seattletimes.com.
Copyright © 2007 The Seattle Times Company
bdudley@seattletimes.com | 206-515-5687
Chase shrugs off loss of CD investors
Sunday Buzz: Expedia, Intelius, Classmates slapped by Senate report
Denny Triangle gains skyline, but tenants slow to come
UPDATE - 04:28 PM
Senate Democrats at odds over health care bill
Your Funds: Money for nothing: Some investors pay for advice they never get

LA Galaxy's David Beckham
Los Angeles Galaxy's David Beckham talks about the upcoming MLS Cup final during after a team practice.
nwjobs

Post a comment

Michelle Goodman blogs about work/life balance.
How to tell your office you're gravely ill
Post a comment
nwautos

Choosing a new sedan? Weigh the impact of your choice on your wallet and on the planet.
Post a comment
- Craigslist adoption ad: A plea by young mother-to-be? A scam?
- 'The Road' takes Viggo Mortensen to Mount St. Helen's and Astoria, Ore.
- Italian lead prosecutor argues Knox motive was hatred
- Italian prosecutors request life sentence for UW student
- Man shot in chest on E. Union Street in Capitol Hill
- Child-support error costs nearly $21,000
- Washington state wines make annual best-of list
- Tugboat sinks in Seattle's waterfront
- Mariners Blog | A Mariners-Tigers swap makes a whole lot of sense for both teams
- Lynnwood is reinventing itself — again
- Senate vote clears hurdle
234 - Mariners add six to 40-man roster
149 - Tight Senate vote launches health care over hurdle
119 - Child-support error costs nearly $21,000
113 - Palin excitement builds in Tri-Cities
107 - Vikings easily beat the Seahawks
102 - Prosecutor requests life in prison for Amanda Knox
86 - Cutting through breast-cancer confusion
82 - Game thread
68 - New York terror trials will restore faith in rule of law
48
- Washington state wines make annual best-of list
- Nonprofits get creative using Twitter and Facebook to make donation easier
- It's possible to recover a life lost to hoarding
- Lynnwood is reinventing itself — again
- Great places to cross-country ski for free (or almost) in the Methow
- Child-support error costs nearly $21,000
- 'The Road' takes Viggo Mortensen to Mount St. Helen's and Astoria, Ore.
- Recipes: Sesame Pork Roast, Sour Cream Mashed Potatoes, Gingerbread with Lemon Sauce and more
- Banff: powder, peaks & purity
- 175 foster kids in Washington get 'forever families'






