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April 30, 2007

Nanochallenge 2007: an Answer to the Challenge of Retaining Innovation in Italy?

NanoChallenge 2007

From time to time at BAIA we hear about interesting initiatives to retain and promote innovation in Italy. It is undisputed that Italy has a lot of talent in research and engineering. Based on my personal experience of working with companies with U.S. corporate heads and R&D subsidiaries in Italy, I don’t think that Italian engineers have anything to envy to their counterparts in San Jose or Bangalore from a formative and technical skills point of view. The key remains how to unlock this great human capital and turn it into innovation that stays in Italy.

I have learned from the Italian Trade Commission about an interesting initiative called Nanochallenge 2007 that purports to stimulate nanotechnology innovation in Italy. Veneto Nanotech, the Italian Cluster for Nanotechnologies, and IMAST, the Italian technological district on engineering of polymeric and composite materials and structures, are jointly launching the third edition of Nanochallenge, the first international business plan competition on nanotechnologies with two Grand Prizes of €300,000 each.
Details are below:

Matteo Daste

Nanochallenge 2007 doubles its stakes with Polymerchallenge!

Veneto Nanotech, the Italian Cluster for Nanotechnologies, and IMAST, the Italian technological district on Engineering of polymeric and composite materials and structures, are jointly launching the third edition of Nanochallenge, the first international business plan competition on nanotechnologies with a Grand Prize of €300,000. This year, for the first time, the competition doubles its stakes with Polymerchallenge, an additional Grand Prize of €300,000 which will be offered by IMAST to the best project on advanced polymer-based materials.
The business plan competition aims to pinpoint and finance tomorrow’s leading firms in nanotechnologies and polymeric and composite materials and to fund new high-tech ventures in Italy. The winner of the nanotechnologies Grand Prize will receive €300,000 from Veneto Nanotech in order to start its operations within the national nanotechnologies cluster in the Veneto Region (north-east Italy). At the same time the winner of the polymer-based materials Grand Prize will receive from IMAST €300,000 in order to fund a start-up in the technological district on polymeric and composite materials of the Campania Region (south-west Italy).
The main objectives of the two organizers, Veneto Nanotech and IMAST, are to foster research in nanotechnologies and polymer-based materials in Italy and support the creation of new high-tech start-ups by attracting the best talents in the research, industrial and financial areas.
All innovative and feasible ideas regarding nanotechnologies or polymer-based materials are welcome and can participate in the competition. Entry teams will have the opportunity to present their project to international financers, venture capitalists, entrepreneurs, business angels and top scientists.
A highly-qualified international jury will select the best project during the Final Event on November 29-30.

Partners of Nanochallenge past editions included: Fondazione Cassa di Risparmio di Padova e Rovigo, Benet Group, CEI – Central European Initiative, Intel Capital, Lux Capital, 3i Investments, Innogest, NanoDimension AG, Quantica Sgr, PriceWaterhouse Coopers.

Entry Teams can now register on-line.

For further information contact:
Elisabetta Talarico
info@nanochallenge.com
www.nanochallenge.com

April 26, 2007

An Interview with Diego Ventura, Founder and CEO of noHold

Diego Ventura (noHold)

Diego Ventura is the CEO of noHold, a company that provides services based on Artificial Intelligence. Diego is a well-known and highly respected member of the Italian community in Silicon Valley. I thought that it would be of interest to our readers to have Diego share his experiences as an Italian entrepreneur in the US. Here is the interview:

Diego, can you tell us a bit about yourself and your company, noHold?
I was born in Trento, Italy, but I consider my hometown to be Pordenone where my parents a brother and a sister still live.  Pordenone is about one hour away from Venice. I attended high school there at the Liceo Scientifico and then got a degree in Computer Science with the University of Maryland. I met my wife, Tammy who is from California, in Aviano where she was stationed with the U.S. Air Force. We have a son, Francesco (20) and a daughter, Stephany (18).  I founded noHold in 2000, raised about $15M and created an expert system, we call InstantSupport™ that helps big companies reduce support cost, by providing technical support automatically without human intervention. The solution manages millions of sessions per year for customers like Microsoft, Cisco, Acer, etc.

Artificial Intelligence has been promising exceptional results for many years. Only now, when it’s not anymore the coolest area of Computer science, AI is starting to deliver interesting results. Why now and not before?
I agree with your comment, but just to be specific, I will limit my answer to the area of AI we work with, Expert Systems. A solution like ours needs several ingredients to work well:  Smart algorithms, easy connectivity and fast execution.  The smart algorithms may have also been available in the 80s, although things improve all the time, but ease of connectivity and fast execution were definitely lacking back then.  There was no Internet, so creating a scenario where millions of people could easily connect to a single computer system was unthinkable.  Processor speeds were order of magnitude slower than what we have today, so even if the main algorithms to mimic inference did exist, they could not be executed fast enough from the machine of that time. In my opinion AI is still cool, but with the added bonus of being practical.

In competitive environments, it is becoming more important that companies communicate effectively with their customers by not only providing the right answers to their inquiries but also by recognizing and empathizing with their emotions. How well can software applications handle the emotional level of communication?
We found that it is absolutely key to be straightforward with end users to create a constructive experience.  We refrain from using avatars or smiley faces for our user interface, because it is important to set the proper expectations for the customer.  We tell them that we are an automatic tool and that we will try to get them as fast as possible to the right solution for them. If we are not successful, we will promptly escalate them to an agent via live chat, email or phone.  One way to think about it is to consider what happened with Banking.  Banks have trained us in using ATMs and now for certain operations, like just getting cash, people prefer ATMs, they don’t want to walk into a branch and spend some time in line. I think the same can be achieved with solutions like ours. However, the key is to choose the right battles, situations were the emotional component is predominant should be handled by humans.

The interaction between a service and its users is quickly spreading over several media: phone, IM, webpage, etc. How is your company addressing this proliferation of channels?
The name of the game here is “Interconnectivity”. noHold is and wants to continue to be a point solution that is best of breed in its space, but we recognize the importance of other communication channels. Therefore, our strategy is to connect and integrate with applications that take advantage of other communication channels. We can currently connect with the most popular Customer Relationship Management (CRM) system. We can escalate our virtual agent sessions to live chat systems or email and we are considering partnerships with companies that provide voice recognition functionality, so that the whole solution can be used over the phone.

The dot-com collapse ended up destroying not only poorly conceived startups but also several companies based on solid business models. How did your company manage not only to survive but also to grow during those times?
We got our first round of financing in the summer of 2000, right after the burst of the “Bubble”. A really bad time because investors expectations were still pretty high, but the market had crashed.  We were lucky enough to recognize the change and adjust for it; we knew we were in for a marathon, not a sprint.  I think a lot of companies ignored the signs and kept spending like there was no tomorrow. I actually believe that the Italian background here helped quite a bit.  Let’s not forget that my generation was raised by wonderful people who saw the Second World War and knew the meaning of saving and being resourceful, so thank you mamma e babbo! The other element that helped us was the character of the people my team is made of. I am talking about resilient, battle-tested professionals who never gave up even in the toughest situations.

Would it be possible for a business like noHold to be based in Italy?
Yes! We are a software company, so all you need are smart dedicated people to make things happen. I have to say that however, there is nothing like the fertile grounds of the Silicon Valley for a young startup. Ultimately the ideal scenario is a company with a presence both in Italy and the U.S.

The Silicon Valley and the Bay Area continue to attract young entrepreneurs from Italy. Based on your experience do you have any recommendations for them?
Here is what worked for me:

  • Work hard and smart
  • Try to get to know as many people as possible and be nice to all of them.  It really is a small world
  • Stay true to your roots.  At first I was concerned about my accent when making a presentation for example. Now I see it has an advantage, all the ladies say it is cute and the guys remember it!

I would like to thank Diego Ventura for taking the time to speak with me today. If you have any questions for Diego or for BAIA, please leave a comment below and we will be glad to answer.

Franco Folini

April 22, 2007

USA Ambassador in Rome Ronald Spogli Worries About USA Investments in Italy

Ronald Spogli (US Ambassador in Italy)

On April 19th Italy's main newspaper Corriere della Sera published a letter from the US Ambassador Ronald Spogli. In his epistle, the Ambassador makes a few critical comments about the difficulties US companies could possibly face when investing in Italy.

BAIA is a partner in the Partnership for Growth program started and promoted by the US Embassy in Rome. Also, as business association, we are actively and continuously promoting the dialogue between Italian and Californian entrepreneurs and companies. Ambassador Spogli’s letter provides an authoritative opinion and is an important contribution to the dialogue on this crucial topic.

For our readers convenience, we include a copy of the letter. The original version is available on the Corriere della Sera website.

Federico Brocero

19 aprile, 2007

Caro direttore,
la decisione di At&t, una delle più grandi aziende statunitensi e leader mondiale nel settore delle telecomunicazioni, di ritirare la sua proposta d'investimento in Italia, ha suscitato tanti commenti e molte discussioni. L'Italia ha perso l'interesse da parte di un'impresa di altissimo livello, capace di migliorare i servizi di telecomunicazione, ridurre i costi per gli utenti italiani e aumentare il valore di un'azienda nazionale.

Allo stesso tempo, ciò che è accaduto è stato utile ad attirare l'attenzione sul possibile ruolo degli investitori esteri per la crescita economica dell' Italia. L'episodio Telecom Italia-At&t permette infatti un'analisi più ampia. Da oltre un anno sto promuovendo un'iniziativa dell'ambasciata degli Stati Uniti in Italia chiamata Partnership for Growth. L'obiettivo è quello di stimolare le grandi potenzialità dell'economia italiana, che spesso non vengono pienamente sfruttate.

L'iniziativa si è concentrata soprattutto sull'imprenditoria e sull'innovazione come forze trainanti della crescita. Tra le varie attività, abbiamo analizzato con diversi interlocutori italiani la necessità di ampliare il mercato dei capitali e di promuovere strumenti finanziari che possano aiutare gli imprenditori a creare nuove imprese e a far crescere e rendere più competitive quelle già esistenti. Senza accesso ai capitali, ovvero agli investimenti, l'imprenditoria rimane solo un'idea. Come noto, gli investimenti in aziende nuove o già esistenti in Italia sono scarsi.

Si preferisce investire nelle proprietà immobiliari, o nella casa per il figlio, piuttosto che scommettere su una nuova azienda promettente. Spesso, inoltre, vengono innalzate barriere nei confronti delle imprese straniere che intendono investire in Italia. Sia che si tratti di investimenti in infrastrutture (autostrade o aziende di telecomunicazione), in servizi finanziari (una grande banca) o nei trasporti (una compagnia aerea), una delle prime reazioni all'interessamento da parte di un'azienda straniera è la sottolineatura che deve prevalere l'interesse nazionale.

Qual è il risultato di questo approccio poco aperto nei confronti dei capitali stranieri? Un rapido confronto con gli altri Paesi europei può essere molto illuminante. Secondo i dati dell'Unctad, la Conferenza delle Nazioni Unite per il Commercio e lo Sviluppo, nel 2005 l'Italia ha attirato circa 20 miliardi di dollari di nuovi investimenti stranieri. La Francia oltre 60 miliardi. La Gran Bretagna, leader tra i Paesi più industrializzati, 165 miliardi.

In qualità di ambasciatore degli Stati Uniti, mi interesso maggiormente degli investimenti del mio Paese, e anche in questo caso la situazione non è confortante. Fino al 2005 il totale degli investimenti americani in Italia ammontava a poco meno di 26 miliardi di dollari, ben al di sotto dei 324 miliardi in Gran Bretagna, degli 86 miliardi in Germania, dei 61 miliardi in Francia e perfino dei 43 miliardi in Spagna. Questi dati dovrebbero far riflettere. Gli investimenti non arrivano dove non sono ben accolti, dove le regole del mercato vengono cambiate continuamente.

Modificare le regole aumenta il livello di rischio e rende molto difficile programmare le azioni future di un'impresa o di un singolo cittadino. Non conosco i dettagli della trattativa per Telecom, ma la lettera di rinuncia di At&t esprime chiaramente il timore di investire in un mercato dove le regole sono imprevedibili. Credo che sia un timore comprensibile, che la maggioranza degli italiani condividerebbe.

Bisognerebbe concentrarsi meno su chi vuole investire e maggiormente sul fatto che l'Italia è agli ultimi posti tra i Paesi europei in termini di crescita del Pil e aumento dei salari e della produttività. Esiste un chiaro legame tra questi dati e lo scarso livello degli investimenti. Per assicurare la giusta priorità alla crescita e alla produttività, occorre valutare attentamente e senza pregiudizi le proposte di investimento.

Le aziende otterranno maggiori fondi e diverranno più competitive? Il cambiamento aggiungerà valore? I servizi miglioreranno? I consumatori, a Roma, Milano o Lecce, avranno benefici? Queste sono le domande da porsi, ricordando sempre che tutto ciò che stimola gli investimenti esteri ha un impatto positivo anche sugli investimenti interni. Per questo motivo, c'è bisogno di una visione più positiva.

L'Italia deve crescere e competere con successo nel mercato globale per sostenere il suo modello sociale e per offrire nuove opportunità ai giovani. Un atteggiamento più aperto nei confronti degli investimenti può senza dubbio aiutare a raggiungere questi importanti obiettivi.

Ronald P. Spogli,
Ambasciatore degli Stati Uniti in Italia

April 12, 2007

A Message from Torino: Come to Study Engineering in Italy!

Francesco Profumo (Politecnico di Torino)

Francesco Profumo, Dean of the Politecnico di Torino, recently sent a message inviting the best aspiring engineering students outside Italy to join his renowned University. At BAIA we are glad to help Francesco spread and promote his message through our blog. If you are a student and you would like to study engineering then you should seriously consider this option. Not only will you have the opportunity to attend classes at the Politecnico di Torino, one of the best Italian universities, you will have also a chance to live in Torino, a very charming European city.

Franco Folini

Come to study engineering in Italy!
Let me talk about future. You probably don't know that the Torino 's Politecnico have today 1,600 foreign students (about 6% of the total), but our dream is to reach the 10% (al least!).
Since Monday March 19, 2007 we opened the new section of our website for the on line applications of new foreign students for the academic year 2007/08.
Please check it and send the information to your friends in USA to promote the Politecnico di Torino. I really hope to have more and more "excellent foreign students" studying in our School, reaching from here the top of high tech companies like Cisco and GE.
The call is for Bachelor, Master of Science, Ph.D and Executive Masters students and we offer a good school, student residences, financial support, courses in English, a good environment, a "warm and beautiful city" and many friends coming from 89 different countries! We have to work for this Project.
Please, let me know if you need any further information.

Looking forward to hearing from you soon, all the best.

Francesco Profumo
Dean
Politecnico di Torino

April 09, 2007

An Interview with Ian Wright, Founder and CEO of Wrightspeed

Ian Wright (Wrightspeed)

Ian Wright is CEO of Wrightspeed, the Californian company working to bring high performance electric cars to the market. Before founding Wrightspeed in January 2005, Ian was vice-president of vehicle development at Tesla Motors. Last week at an electric sportscars event in San Francisco organized by BAIA, Ian presented the X1 prototype to a group of car enthusiasts and business people. I invited him to participate in the following interview to delve deeper into some of the interesting topics that were brought up during his presentation.

Ian, can you tell us a bit about yourself and your company?
Sure. I have an engineering background, mostly in data communications equipment. But I used to build and race cars as a hobby, when I lived in Australia. I’ve always been interested in performance cars, and also in electric cars. I guess the engineer in me likes the unbeatable efficiency, and the nice match of the torque curve to the demand. But in the past, I didn’t think it was worth building electric cars, because the batteries just weren’t good enough to make an interesting car.
Now they are… if you wanted to, you could build an electric car with 500 mile range. Or more than a thousand horsepower. Or one in which the batteries would last 15 years, and 250,000 miles. But you can’t do all of that in the same car, and you can’t make a cheap electric car. So trade-offs are necessary.
But one trade-off suffered by internal combustion (IC) cars does not apply to electric cars. In an IC car, if you design for performance, the car will be thirsty even if driven carefully. If you design for efficiency, the car will be slow. This is not true for electric cars. You can design for very high performance, without any loss of efficiency (compared with low performance electric car). Possibly even at some efficiency gain.
In 2005 I founded Wrightspeed to build extreme performance electric cars, which would make use of this very interesting property of electric drive-systems. The first thing I did was build a high performance prototype, to test the concept, and to gauge customer reaction.

The X1 prototype seems to be showcase to attract investorsʼ attention and to display your skills in building high-performance electric cars. What did you learn from that prototype and from people's reactions to it?
It’s been very educational. I expected that the X1 prototype would appeal only to a very narrow slice of humanity: some subset of racing drivers. And part of the objective was to get a sense of the size of that slice – would it support a startup company?
Also, I didn’t really expect any media attention, and I did expect that the prototype would be something that anyone could drive.
I was wrong on all counts. (I did predict the actual performance numbers, and the car actually meets the predictions. So the engineering was OK…)
Firstly, the styling, concept, performance, and the fact that it’s electric, appeal to an amazing wide spectrum of people. Not just racing drivers. From little kids (I’ve done show-and-tell at a couple of schools) to strong silent types driving pickup trucks, to grandmothers, homeless people up in SF, professional racing drivers, and even most of the law enforcement people I’ve met…
I’m collecting some great stories. Perhaps my favorite so far is about the very elderly lady I met outside Bucks in Woodside one day. (There was the usual crowd around the car.) She was walking very slowly by, using a cane, and stopped to ask all the usual questions. She asked very good questions, and was obviously fascinated. Her last question was “And how much will the production version cost?” I said “Oh, about $120k.” She thought about this for a moment – clearly weighing the cost/value – then said “Well! That’s less than the Rolls!” And off she went.
And the car has had some awesome media exposure: Business 2.0, Autoweek, Discovery Channel, PBS, KRON4, IEEE Spectrum, Wired, Die Zeit, Radio NZ, Robb Report (March feature article)… without any requests from us. Before that first test, the drag race against the Carrera GT, November 2005, I did call a few journalists, to suggest that there might be a story about to happen. Not one called me back, and I thought “I guess they are not interested in electric cars. They’ve been there…”
The next TV piece is Discovery Channel, end of May.
And the hardest lesson was foreshadowed by the friend I took for the first demo ride. He said, as we parked after the ride, “You know Ian, this is too much car for most people.” A couple of weeks later, I met a mutual friend, and let him drive. He normally drives a Porsche Turbo, and I coached him on the fact that there is so much torque, that if you are not going exactly straight, using full “throttle” will cause the car to spin. Immediately. It’s catchable, but everything happens fast, so you have to be in a heightened state of adrenalin… It was Highway 9, out of Saratoga. There were very slightly damp patches… he did the first corner fine, right at the point that I thought was the upper end of safe. The next corner, he wasn’t going too fast, at all. But before he straightened the wheel, he nailed the accelerator. The rear tires can only do so much, so… around we go. He lifted his foot immediately, but forgot the opposite lock. Sadly there was a power pole there… No injuries, just the feeling of being a helpless passenger. I hate that.
It took a while to absorb that lesson. We plan for the production car to have stability control, preventing this kind of accident. There’s quite a bit of development involved.

In order to build your prototype you had many options. Why did you choose the Ariel among the several "rolling chassis" available (e.g., Ultima, Noble)?
Well, I’d driven one, with 190hp Rover engine, a few years before. And fallen in love. It’s the lightest thing out there that you can drive on the street. And Simon Saunders, the designer and founder of Ariel, is a really interesting guy. I’ve learned a lot from him. I’ve met Lee Noble, the designer of the Ultima and the Noble (but haven’t driven his cars). He’s a really interesting guy too (England seems to be the place for this sort of thing.) But in the end, I was looking for the lightest weight. 1500 lbs for the complete car was the target. I missed by 36 lbs.

The electric car is a hot topic with new companies and products (Tesla, Zap, etc.) popping up every other day. How do you plan to compete with them?
I don’t. I plan to compete with Ferrari, Lamborghini, Porsche, and to some extent Mercedes. The electric car companies intend to compete ultimately with Toyota. They are selling efficiency; I’m selling performance. Extreme performance. I do think it’s great to have several startup companies in California attacking different parts of the market.

According to your CBO (Chief Business Officer) Marv Bush (source), your plan is to build a car with electric motors on each wheel. Some expert believes that this is not a viable solution for high-performance cars. What is your opinion on that?
Hmmm, sounds like a cocktail party misapprehension. It’s certainly true that motors in the wheels increase the unsprung mass to a very large degree. And in performance cars, ultimately, it’s all about getting the most grip from the tires at all times. And that requires keeping them in contact with the road, which is much easier if the weight that moves up and down with the tire is very low compared with the weight of the rest of the car. There are also subtleties to do with feedback to the driver through the steering wheel (self aligning torque, confused by driving the front wheels), and the fact that the way electric motors scale, it’s lighter to make one big one than 4 smaller ones, for the same peak power.
It’s also true that we have no intention of using motors in the wheels. We are building extreme performance cars, not buses.

Switching from gasoline to electricity could have a strong impact on many aspects of a car, from the shape to the weight distribution. What differences can we expect to see in the next electric car?
Good observation. There is certainly more freedom about mass distribution, and possibly less cooling air required. Stay tuned, the next version will be quite different from the prototype. Sorry I can’t say more right now.

You're showing your ideas and skills in order to raise the first round of funding. Based on this experience, do you have any recommendations to share with other new entrepreneurs?
This is the first time I’ve actually built a working prototype before looking for funding. I recommend it, if it’s at all possible. It keeps you talking to customers, anchored in the real world, and it proves a lot to potential investors.

We can say that the recent BAIA (Business Association Italy America) event held at the ClubSportiva in San Francisco has been very successful. What has your experience been like with BAIA?
Great! I didn’t know what to expect, but I had a great time. Good people, great questions, good food! I’ve met some interesting people.

I would like to thank Ian Wright for taking the time to speak with me today, and Cristiano Sacchi for his invaluable guidance in helping me understand technical aspects of high performance cars. If you have any questions for Ian or for BAIA, please leave a comment below, and we will be glad to answer.

Franco Folini