e2e cleans up at area competitions

CNY Business Journal (1996+), May 25, 2007 by Tampone, Kevin

ITHACA - Ithace-based e2e Materials, LLC. continued its winning record in local business competitions in late April.

The company, which won the inaugural $100,000 Emerging Business Competition of the Central Upstate Regional Alliance in early April, also took home first prize in the seventh annual BR Ventures Business Idea Competition at Cornell University at the end of the month.

The firm received $10,000 for winning the Cornell contest as well as 20 hours of free legal help from BR Legal, an entrepreneurship legal-services program at the university. e2e produces biodegradable composite materials that can replace current materials like particleboard.

Other winners of the Cornell contest included DNANO Systems, LLC, which received $2,500 for second place. DNANO is working to commercialize a technology developed at Cornell to rapidly produce proteins without involving living cells, thereby eliminating costs associated with cell-based manufacturing processes.

Veratag, Inc. placed third in the competition and won $1,000. Veratag, also based on Cornell technology, is aiming to develop small devices that can produce unique signals for use in identification, authentication, and counterfeit prevention.

Winning the competitions helps e2e in several ways, says Patrick Govang, president.

"From the money side of the equation, it's certainly very helpful," he says. "Every dollar we can get helps us build and grow the company. Any money we can get is incredibly helpful right now."

More important than the cash, however, is the prestige e2e gains from the victories, Govang says.

"It sends a message to the investment community that we're for real and we have a solid business plan behind us," he says.

Govang is currently in negotiations with several investors on financing for e2e. He declined to comment on how much he expects to generate in venture dollars.

The firm is preparing to launch its first product skateboards that use its composite material as a base. This year, e2e and San Francisco-based Comet Skateboards will produce about 200 boards.

The partnership could eventually lead to production of 100,000 skateboards a month.

The company is also continuing development of a line of office-furniture products with furniture manufacturer. That work is being partially funded by a $120,000 grant from the New York State Energy Research and Development Authority.

Govang says he cannot disclose the furniture manufacuter's name because of confidentiality agreements. The Business Journal has previously reported that the company is Michigan-based Herman Miller.

e2e is a spin-off of Cornell University. Govang and Anil Netravali, a Cornell professor, founded the company. Netravali is, e2e's chief scientific officer, but not a fulltime employee. He works for the firm on a contract basis and will continue as a Cornell professor.

Govang was formerly director of the Cornell Center for Materials Research, but now works full time at e2e. He expects to have 12 people hired by the end of the year and says e2e should generate about $25,000 in revenue in 2007.

The firm is preparing for a third business competition. It will participate May 31 in the Golden Horseshoe Business Challenge, an event run by High Tech Rochester and offering a $100,000 first prize.

The material e2e produces uses soy flour and bamboo, which makes it cheaper, easier to make, and more environmentally friendly than particleboard, according to the company. It is also lighter than particleboard, but just as strong.

The company has moved into a new facility at 230 W. Cherry St. It is leasing 1,500 square feet of space there, but has room to grow to 10,000 square feet

The building houses e2e's research, office, and manufacturing space.