The Road Ahead for MDB

"Helping promising technologies become meaningful companies."

MDB will soon be entering its 20th year in business, and Anthony and I have presided over several iterations of our business strategy over the years. We are in the process of making some important changes that we want to share with you.

For the past decade we have been resolved to create a business strategy that rewards all the stakeholders connected to MDB. We feel our strategy must be holistic in that the entrepreneur/inventor we are backing feels we provide true value relative to other options, the investment provides superior returns for the investors that trust us, and it creates a financially sustainable and rewarding work environment for all of us at MDB.

The market environment over the past 18 months has definitely had us questioning the sustainability of these holistic goals. With that said, we are more confident than ever that we can take what we have learned and improve outcomes for each of the stakeholders.

Over the past decade we spent a significant amount of time validating the important role that IP plays in ensuring the sustainability of the companies we are backing. While IP is a crucial foundation for any technology, we have all learned it is only one of several crucial components.

Therefore, we feel our mission must be more encompassing and therefore we will no longer call ourselves “The IP Investment Bank”.

In fact, we don’t even think that we should be labeled as an “investment bank” as we are not in the feeforservice business of raising money for companies like most investment banking firms are and don’t want to confuse people by implying that we have interest in simply raising capital for companies.

So our new mission statement is simple but broadly encompasses what we do for new platform technologies, which is… To help promising technologies become meaningful companies.

This mission statement requires we perform the following broad duties to deliver on this goal:

  1. Focus our efforts on platform technologies that have the promise to meaningfully benefit society.
  2. Deeply understand the business and IP landscape for the new technology so we can help guide the overall commercialization strategy.
  3. Bring in the best and most appropriate mentors for these new companies in the roles of executive management, board members and scientific advisors. We have found that instilling a culture of innovation and execution over short term financial goals is essential to creating meaningful companies and the right people make this happen.
  4. Execute a superior IP development strategy to lay a proper foundation for ensuring viability and sustainability for the new enterprise.
  5. Bring in the most supportive investors we can find to assist in helping these companies get through the critical early stages of commercialization.

From a tactical perspective we have learned that we need to also do the following to maximize the probability of success going forward:

  1. Only finance companies where the timeline to commercialization is quite clear based upon on the stage of development of the technology. We have learned that being “too early” makes it difficult for the executives and board to navigate the public markets effectively and hurts returns to investors.
  2. Only bring on management and board members that have deep domain and operating experience that is precisely targeted to the technology we are enabling.
  3. Only bring on board and management members that have taken companies from very early stages through to commercialization.
  4. Take the time to develop a meaningful relationship with the team we bring on to make sure we all agree on the commercialization strategy and have a great working relationship.
  5. Help the management team and board to communicate well with the public and not set unrealistic expectations while properly articulating the potential rewards of the platform technology.
  6. Provide a stable source of funding post public offering and precommercialization via rights offerings to our investors instead of subjecting our companies to the manipulative practices of traditional investment banks and investor trading schemes. More detail on this plan will be found in our next public offering.

From an operational perspective at MDB we will be implementing some changes, which we will communicate to you very shortly.

But the punchline, if you will, is… Creating meaningful companies is not a scalable business. In order to ensure the quality we demand from ourselves, we expect to deliver no more than one to two opportunities per year.

On a personal note, I want to thank all of our clients and friends that have called with words of support and encouragement during this challenging market for small technology companies.

Your advice has been essential to helping keep us focused on what we need to do to reach our collective goals.

Thanks again!

Chris


Christopher Marlett | CEO
O: 310.526.5005 | M: 310.403.9191 | m@mdb.com
MDB Capital Group, LLC | 2425 Cedar Springs Road, Dallas, TX 75201