Ka Wai Ola - Office of Hawaiian Affairs, Volume 28, Number 11, 1 Nowemapa 2011 — Kealoha benefited from venture capital [ARTICLE]

Kealoha benefited from venture capital

Donavan Kealoha's eompany Adama Materials Ine. launched before the influx of $13.2 million to the state. But he speaks from experience about the power of venture capital to "grow your company pretty quickly." (See related story at left.) After attracting $4.75 million in venture capital, Adama Materials grew from "zero employees to close to a dozen right away," in the lightningquick fashion associated with businesses funded by venture capital, whieh invests in riskier ventures that banks traditionally shy away from. "If you're selling pasteles, then this is probably not a source of capital you'd be able to access," says Kealoha, referring to the state's fund for venture capital. Businesses are generally techoriented, ranging from renewable energies to medical technology to software, he says. Kealoha, who has a law degree and an MBA, said the $13.2 million is "a significant resource" for those who qualify. "If you have got a pretty novel idea, you've demonstrated some traction and you want to grow the business to go after big markets, that's a pot of money potentially available to help you accelerate your plans." Kealoha co-founded Adama Materials alongside scientists from the University of Hawai'i at Mānoa's College of Engineering after winning first plaee and the top tech prize - totaling $40,000 - at the 2008 Business Plan Competition at the school's Shidler College of Business. The scientists developed patented technologiesto impro ve the meehanieal performance of composite materials. The technologies could potentially be used in a broad range of applications - from car parts, windmill blades, airplanes and sporting equipment. Karl Fooks helped him during the early stages of getting Adama launched, he said, by helping him strengthen his pitch to attract investors. Today, Adama Materials is focusing on research and development of its technologies. — Lisa Asato