The Baekeland Story Marc Lambrechts New Materials Venturing Day - 2007-12

New Materials Venturing Event Gent - 19 December 2007

Many thanks for Johan to ask me as “Chinese volunteer” to give this introduction . I
discovered a real serial entrepreneur/industrialist and h
di d l i l /i d i li d have read with passion the variety
d ih i h i
of Baekeland stories and material you can find in electronic archives on the internet and
the several books about or written by Leo Baekeland. The Baekeland story confirms
actual VC investment strategies and provides food for thought on the best business
models for material ventures.

Thanks to Kristien De Wolf for the assistance in preparing the slides and the background
research performed.
h f d

Universiteit Gent &
Please feel free to use but respect the following creativecommons licence Marc Lambrechts, Capricorn
http://creativecommons.org/licenses/by-nc-sa/2.0/be/deed.en Venture Partners


I discoved a common background with Leo!

Boyhood interest in photography
Inspired by all the chemicals my grandfather has used to make its own photographic
formulation
Above a restored picture made by my grandfather Marc Jansen, Tienen
I am currently digitizing and restoring an extensive collections of glass plates from my
grandfather
df th
=> converting fading atoms into electrons back in hopefully stable atoms on my hard
disk

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The timeline with the main events in the live of Leo.

Picture is the Time cover of 22 September 1924.

“Nothing succeeds like success” = a quote used by Leo at several occasions

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Second half of the 19th century :
- Photography was only available at fairs and known by only a few amateurs
- These pictures are from Arnold Vander Haeghen, an amateur photographer in
Gent www. www.beeldbankgent.be
- Industrial revolution
- Automation in metal and textile industry
- Logistics improve dramatically
- Trade and financial world bloomingg
- Chemicals companies grow (Solvay)
But also:
- Bad social circumstances
- Socialism and strikes

Global Entrepreneurship Monitor (GEM) – was Leo’s move to the US the catalyst for
high gro th?
growth?

Inventarisnummer: 2004-247-099
Objecttype: glasnegatief
Titel: Betogende jonge mannen tijdens de werkstaking van 1893
Beschrijving: Jonge leden van de Gentse metaalbewerkersbond op het Koophandelsplein tijdens de
werkstaking van april 1893. Duizenden mensen deden mee aan de algemene staking en kwamen op straat
om te betogen voor algemeen stemrecht. Deze jonge arbeiders passeren net het justitiepaleis. Ze zijn
vermoedelijk op weg naar een meeting op het Sint-Pietersplein Het bordje dat meegedragen wordt heeft als
Sint Pietersplein.
opschrift: "Gent metaalbewerkers bond".
Straat: Koophandelsplein Plaats: Gent
Vervaardiger: Vander Haeghen, A.
Beginjaar datering: 1893 Eindjaar datering: 1893

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Leo was born out of a poor family – for all clarity in Gent and not in Sint Martens-Latem.
Both his father and mother were illiterate
illiterate.
His father was a shoemaker and had a pub “Au Jardin du Glacis”
His visionary mother, a domestic servant, stimulates Baekeland to study

He studied chemical technology at the Ghent Municipal Technical School

1880 – entered the first year at the Ghent University and became a lecture assistant and tutor to earn some
extra money to support his studies
“ a boy in humble circumstances could make his way by his own effort”

1884 - at the age of 21: Dr. in Science with a magna cum laude grade
Continued to work at university and as lecturer at a school in Brugge

1887 – won a prestigious prize “laureate in chemistry” a gold medal and a travelling fellowship to visit
universities in London, Oxford and Edinburg:
“ votre nom est inscrit dans notre livre d’or. N’oubliez toutefois jamais que noblesse oblige”

Key enablers
Leo’s mother
Scolarship of the City of Gent
Laboratory started by Kelule – the facilities to perform research
Prof. Theodore Swarts – his mentor and professor
Dr. Désiré Van Monckhoven – the first producer of photographic plates in Gent and instrumental in the
photo industry

Leo remained passionated by photography as an amateur and by photographic processes

1887 – first invention “a dry glass plate with chemicals added on the back”

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1887– first company ‘Baekeland & Cie Scheikundige producten’

Business partner and investor Jules Guecquier whose father earned his wealth in real
estate

Jules was a wealthy colleague at the university, a friend (and a fool?) and owner of
the building the company started in

Best man at Leo’s wedding

Palinghuizen 120

First customers were friends

Baekeland’s first venture does not s r i e the “Chasm”
ent re survive “Chasm”.

Combines 2 jobs & company, Leo left after his marriage to the US and left as key man
his venture in Gent in the cold

the company failed => financial catastrophy for the Jules Guecquier family – he spent
his complete fortune in this venture according to his daughter.

Note – patent is one page long

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Prof Chandler = consultant to Anthony and Co – manufacturer of photographic dry plates
and b
d bromide photosensitive paper.
id h ii

1892 Leo filed a US patent on an antiseptic compound for preserving meat and fish!

Leo gathers industry experience – in this regard Leo said later in his live (1918?) :

“I feel very grateful for the excellent opportunities of education
I had at the University of Ghent. I should state, however,
that my real intense education only began after I had left the
university, as soon as I became confronted with the big problems
and responsibilities of practical life; this education I received
mainly in the United States, where for twenty-seven years I
was thrown in contact with so many varied subjects. I hope
to remain until I die a post graduate student at that greater
school of practical life, which has no fixed curriculum and where
no academic degrees are conferred, but where wrong petty
theories are best cured by hard knocks.”

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Leo wants to be free to work on a range of ‘interesting things’.

Becomes an independent chemical consultant

But …no means to create a real industry

Becomes ill and overworked

A cash crunch and “depression” lead to sober reflection.

The outcome : focus on a passion => photography

Text on slide is statement from Leo. Source : Biographical Memoir Of Leo Hendrik
g p
Baekeland 1863-1944 by Charles F. Kettering – page 284

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Starts to focus again and starts his second venture: Nepera Chemical company to
commercialise Velox photo paper
paper.

First substantial sales in 1897 – Leo crossed the chasm!

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Production problems related to controlling humidity in the process (static electricity). To
solve this problem Leo also built air conditioning systems
air-conditioning systems.

In a paper presented in 1903 he said: "In photographic paper factories hygrometers and
electroscopes should be consulted as often as the thermometer.“

Text on slide is statement from Leo. Source : Biographical Memoir Of Leo Hendrik
Baekeland 1863-1944 by Charles F. Kettering – page 285
y g p g

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1899 - sold the company to Kodak for 750.000 $ + 100.000 $ for additional
knowledge <> 25 000 $
25.000

It is unclear if this story is true – 750,000 versus 1 M – a letter from Leo to his
friend in Belgium exists describing more than 4 visits of Leo to Eastman

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Boat – the ION

A Family Tour through Europe – described in a book by Leo Baekeland and published
by the Horsless age

Snug Rock in Yonckers NY overlooking the Hudson river

“Thus at thirty-five I found myself in comfortable financial
circumstances, a free man, ready to devote myself again to my
favorite studies. Then truly began the very happiest period of
my life. I improvised one of the buildings at my residence in
Yonkers into a modest but conveniently equipped laboratory.
Henceforth I was able to work at various problems of my own
free choice. In this way I enjoyed for several years that great
blessing, the luxury of not being interrupted in one's favorite
work.”

Source : Biographical Memoir Of Leo Hendrik Baekeland 1863-1944 by Charles F.
Kettering – page 285

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Learned during his sabbatical about the potential of electrochemistry

Leo was a consultant instrumental in the start of Hooker Chemical Company (later
known as OxiChem)

His contribution = not the invention of the electrolytic cell but the stepwise improvement
to a system that works in an industrial environment – common theme in his contribution
to the Velox, Hooker and Bakelite success?
Velox

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The shellac issue was one of the hot topics of chemical research at the turn of the
century. Th sole source of shellac was the excretions of the f
The l f h ll h i f h female L
l Laccifer l
if lacca
beetle, found only in India and Southeast Asia, i.e. a biobased material!

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The famous patent that is 100 years old (source www.google.com/patents); 3 pages!

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Picture source : Brochure UGent , gazeTTe 2007-06

Applications as electrical insulators, radios, photographic equipment, toys, tableware
and even prestigious jewelry

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For further discussion – how Leo positioned his resin invention into the value chain of
raw material manufacturers, moulders and end-users. Different strategy for Europe and
US?

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Source : Biographical Memoir Of Leo Hendrik Baekeland 1863-1944 by Charles F.
Kettering – page 288
K i

For discussion : is a licence-only based business model feasible for material venturing
start-ups today? Any succesful examples?

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1939: Merger with Union Carbide

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Leo was also an active networker and involved in improving the US patent system

Source of the quotes : Biographical Memoir Of Leo Hendrik Baekeland 1863-1944 by
Charles F. Kettering – page 290

Picture :
Report of the Patent Committee of the National Research Council*
Presented for the Committee
by L.H. Baekeland
Acting Chairman

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Read carefully and take into account in your venture or when deciding on investment!

The Chandler lecture is a pleasant read – available as free electronic download on
www.archive.org

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Universiteit Gent &


Too late for making money from the tragic story of murder and suicide in the Baekeland
family h film Savage G
f il – the fil S Grace will b released i 2008 F those i
ill be l d in 2008. For h interested i
d in
chemistry, the story in Save Grace is about the personal chemistry between a son, a
mother, lovers, .... and yes personal chemistry of an explosive nature.

Industrial chemistry started by the need to replace biobased materials (e.g. fertilizers,
resins, ..) by synthetic material. Today we see a great interest in replacing again
synthetic (fossil fuel based) materials by renewable biobased materials.

Solar PV, wind turbines, fuel cells, batteries or other technologies for energy storage all
depend on breakthroughs in material research

Technology fusion is a key enabler in several giant opportunities. But ... multidisciplinary
teams required.

Universiteit Gent &

The Baekeland Story Marc Lambrechts New Materials Venturing Day - 2007-12

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