Monday, April 28, 2008

Manifold Products takes ideas, launches startups

By Christopher Calnan

Natick-based Manifold Products LLC calls it "venture engineering."

The unconventional 5-year-old company takes the plans of entrepreneurs, develops its own ideas and products, and launches tech companies with a business model that involves both investment and decidedly hands-on business development.

But CEO Kevin Johnson is quick to emphasize that Manifold isn't a business incubator intended to nurture inventors. "We're going to take over whatever you do," Johnson said, "even if it was your idea."

The firm's strategy is to take the lead in developing an entrepreneur's idea and attracting the financing needed to commercialize it. Manifold then takes over the operations of the company, because inventors rarely make good entrepreneurs, says Johnson.

Models such as Manifold's go against the grain of venture capital and angel investing models that have already proven successful, said George McQuilken, founder of Portsmouth, N.H.-based eCoast Angel Network.

"Typically, an entrepreneur wants to start a company," he said. "That's what entrepreneurship is."

Manifold itself is backed by angel investors. In February, the company reported closing on a $2.7 million Series B round of funding from seven investors. The firm's latest company, OutSmart Power Systems LLC, is developing electronics systems that monitor energy efficiency in buildings and is based in Manifold's offices, it reported closing a $1 million Series A round of investment.

Manifold, which employs six workers, specializes in electromechanical product design.

In 2005, the firm launched Emo Labs Inc. and Newton Peripherals LLC. Emo, now based in Waltham, is developing a clear video speaker that is integrated over a video monitor. The technology enables the sound to emit from the screen rather than from audio speakers on either side of a monitor.

Emo founder Lewis Anthanas, now its CTO, said Manifold's approach puts the many facets of starting a business -- such as marketing and fundraising -- under one roof. "It consolidates the process," he said, "and gets people committed to getting it done."

Newton Peripherals develops wireless products, such as Bluetooth headsets and a collapsible mouse for laptop computers. The mouse, of which the company has sold more than 250,000, is being licensed by the Hewlett-Packard Co. and is distributed by Dell Inc. and Gateway Inc., Newton CEO Matthew Westover said.

Johnson, a former director of engineering for West Newton-based Design Continuum Inc., said Manifold has 25 project ideas that are being vetted. He expects to launch a fourth company in June or July.