ICON66
Radiating Confidence
Name: Peter
Doughty, CEO
Company: Radiation
Watch
Sector: Radiological
Protection,
Metrology and
Measurement
URL: www.radiationwatch.co.uk
ICON catches up with Peter Doughty after completing the fundraising for Radiation Watch
In April 2004, ICON advised Radiation Watch on the completion of a £450k seed investment round from Seven Spires Investments. This funding enabled the company to complete the development of its revolutionary radiation detection technology "D3"(TM), which provides real time spectroscopic detection of radiation sources and the identification of isotopes. The technology has applications in a wide range of markets, including health physics, defence, environmental monitoring and instrumentation, but in particular, it has created real excitement for those involved in homeland security initiatives around the world.
In March 2005, with the company still essentially at a pre-revenue stage, the team closed a further £2m from a number of seasoned semiconductor private investors, with Seven Spires Investments once again supporting the round.
ICON caught up with Peter Doughty, the company's CEO, to ask him what the big issues were for the company during the fundraising process.
What keeps you awake at night?
Any reasonably competent management team should be able to ensure that they have the right people, plans and processes to drive the business forward. What gets my attention is being forever vigilant about keeping the cash burn rate down and one of the key challenges; keeping everyone focused on hitting the critical milestones for revenue.
What did you set out to achieve when you started Radiation Watch and have your goals changed since?
Our goals have stayed pretty much consistent throughout. The founders wanted a situation where they controlled the direction of the business and where they could build significant shareholder value. Obviously we were stepping outside our comfort zone when we made the leap, but you have to make a significant commitment if you are to convince others that you are serious about what you are trying to achieve.
You came out of HP having worked there for over 17 years - what do you see as the main pros & cons of a start-up lifestyle versus corporate culture?
HP is a great company but I would struggle to work again in a Blue Chip environment! It's not so much that the rewards are no longer there, nor is it that the employment risk is now at least as great in large companies as anywhere else. Rather, in a start-up, you get the biggest buzz being able, as an individual, to take decisions and respond to events in real time and to mould and direct the business as your own judgement indicates. There is no time for politics or committees in a start-up!
Why did investors ultimately invest in Radiation Watch? Was it the strength of the IP, the management team or the market opportunity?
I think the management team - its strength, experience, resolve, passion and commitment was the key to unlocking the flow of investment.
What is your most valuable experience (pre-Radiation Watch) to have helped you with the new venture?
It has to be people skills. Internally, one has to recruit and develop the right team. Externally, one has to develop strong networks and excel at communication.
What is the best advice that you could give an aspiring management team?
Apart from appointing ICON you mean? Seriously though, the old military maxim that 'no plan survives first contact with the enemy' springs to mind! No matter how good your business plan, no matter how convincing your forecasts are for the company, the reality of events will be different. To my mind, the management team that wins every time is the one which responds most quickly to changing circumstances, and which is prepared and committed to adapt and strengthen its game plan at every opportunity.
VC Comment
Ian Page, Seven Spires
"This deal really stood out from the pack. I was impressed by the founding team and its focus on routes to market and execution."
