Q: Why has Colorado emerged as a center for radio-frequency identification, or RFID?
A: The original reason for that, and it’s anecdotal, was because Colorado has been a hot- bed for aerospace. I’ve been here for 30 years, and that’s one of the reasons I moved here. We’ve also always had a lot of military, so we’ve had a lot of radio-frequency engineers. Combine that with our high-technology economy, and you have the right ingredients for RFID. The fact that Sun Microsystems announced (last week) it will move a testing facility here is big news. It becomes a positive- reinforcing cycle.
Q: RFID is best-known for its use in supply-chain management. Why does SkyeTek focus on the uses of RFID outside of that?
A: That’s a mature market. And because Wal-Mart mandates the use of RFID, Wal- Mart calls all the shots. The margins are almost nonexistent. Supply chain has a finite amount of opportunities. Skye Tek provides hardware modules and RFID reader software that can be integrated into a company’s products. We started in 2000, and we are going from a concept stage to a commercial stage. I think the technology is emerging from a few recognized uses to a broader range of applications. My customers are not in the mandated RFID business. For example, we are working with hospitals to track pieces of medical equipment and patient safety, as well contactless payment for credit cards.
Q: Do you worry about RFID becoming too invasive in people’s lives?
A: There’s been a lot written about that. What people need to keep in mind is that, like with any technology, there’s a need for social responsibility and socialization. I also think people are giving the technology more credit than it deserves. It’s hard to get this technology to work. No one is setting up RFID to be read by satellites, or by some Orwellian Big Brother system. But it’s the classic double-edged sword: It can do wonderful things, and it could also help with a lot of scary stuff.
Q: You come from a sales background. Why do you keep heading technology companies?
A: I just saw an interesting study that said the favored background for CEOs for venture- backed companies is someone with a sales background. When I started as a CEO, I used to be a little self-conscious because a lot of chiefs were out of technology or finance. I think it goes with the pragmatism of venture capitalists. Where you start your day and end your day is with your customers. You have to be careful because you can’t let the customers determine everything; you need to have vision for the market.
Q: How has the dynamic changed between venture firms and the companies they fund?
A: It’s kind of a buyer-seller relationship. For many years, the venture capitalists controlled the circumstances. During the boom, the entrepreneurs had the leverage. I think the bust separated the wheat from the chaff. The VCs learned their lessons, and the riffraff in the entrepreneurial community have gone away. It’s much more balanced than it was five or six years ago. It’s a much easier, more rational environment to work in.
Q: What keeps you up at night?
A: The things that you can’t control give you the worst nightmares: people’s appetite for this technology; the economy; what your competitors are doing. Internally, it’s an art to measure the momentum in a business. It keeps me up at night: ‘Am I gauging the growth of the market and spending the money in the right places?’ Sometimes you have to pull back. I’ve had to cut companies in half several times. That’s what you worry about.
Q: What are your passions outside of business?
A: I have two teenagers, so the challenge of being a parent. That’s one of my passions. I like to bike race, so I’ve been involved in the competitive cycling scene for about 15 years. That’s a nice, cathartic sort of alter ego to the days here with high stress. You go out on weekends and ride until you puke.
Edited for space and clarity from an interview by staff writer Will Shanley.
