MSBi Capital Invests $1 Million in McGill University Spin-off
QuantuModeling to deliver new design solutions for electronic design automation and nanotechnology industries
Montreal, Canada, October 18, 2005 — MSBi Capital, a provider of seed and early stage venture capital for the commercialization of innovations in information technology, the physical sciences and life sciences, announced today a $1 million investment in QuantuModeling Inc. (“QMI”) – developer of software tools for atomistic modeling with applications in electronic design automation (“EDA”), materials design, defense, chemistry and nanotechnology. QuantuModeling is a spin-off from McGill University based primarily on 20 years of research of Dr. Hong Guo, one of the world’s leading scientists in the field of material physics and a recent recipient of the prestigious Killam Fellowship.
“The need of the semiconductor industry to understand conductive effects at the nano-scale is becoming ever more apparent, providing QMI the opportunity to enter immediately a very large market,” said Chris Arsenault, Partner at MSBi Capital. “If we add to that the fact that nanotechnology research has recently seen annual investments of $10 billion or more worldwide, we feel we are at the dawn of a new era in nano-material design that should be highly profitable. We are particularly excited to have the company associated with a leading laboratory such as Dr. Guo’s, whose team will collaborate with the company through research and development agreements with McGill University.”
In partnership with McGill University whose technology is being licensed, the company is developing two product suites: “QM-NanoDCAL Suite” which addresses the electronic device simulation market, and “QM-Materials Suite” which addresses the nanotechnology tools and materials market. The company’s solutions are based on widely accepted physical principles, but use proprietary, patent-pending algorithms that have drastically enhanced the size and time-scale of simulations, while remaining accurate. The first products are expected to hit the market in the second half of 2006. QMI has developed partnerships and received financing from NanoQuebec and Defense Research Development Canada. The company will be seeking to supplement its seed round financing within the next few months.
“I am very gratified to be involved with this groundbreaking opportunity,” said Roger Duchesne, President and CEO of QuantuModeling. “The opportunity to rapidly deliver first products to large markets such as the semiconductor or defense sectors requires focus and good execution on our side, and I look forward to ensuring the team achieves this goal. We have already seen a great deal of interest from various potential partners and our goal is to develop multiple partnerships as we progress.”
The company was co-founded by Dr. Anguang Hu who brings over 15 years of experience in chemistry, physics and material science, and has worked at world-leading institutions in Europe and North America. He is joined by co-founder – Dr. Brian Larade who was most recently member of the Quantum Science Research Group at Hewlett Packard in Palo Alto, from where he left his position to start QuantuModeling. The position of President and CEO is held by Roger Duchesne, a serial entrepreneur with over 30 years of experience in operational management of start-up technology companies. The company expects to add to its team additional software developers and business development expertise in the coming months.
QuantuModeling’s technology is based on twenty years of research in physics, chemistry, materials science and high performance computing, principally conducted at McGill University. The modeling software centers on the calculation of interactions between atoms using first-principles quantum mechanical methods, such as the density functional theory. Innovative developments by QuantuModeling have drastically enhanced the size and time-scales of simulations compared with other simulations currently available, while maintaining the accuracy of the calculations. For example, unique methods have been developed for modeling the operation of nano-electronic and semiconductor devices composed of 1 million atoms or more, compared to currently available solutions that can only model a few hundred atoms.
About MSBi Capital
MSBi Capital is a seed and early stage venture capital fund dedicated to commercializing innovations in information technology, the physical sciences and life sciences. MSBi Capital has a particular focus on establishing and building companies based on technology advancements and inventions originating from the universities of McGill, Sherbrooke and Bishop’s, as well as their affiliated hospitals and research institutes. More information about MSBi is available at www.msbi.ca.
Zara Myles, MSBi Capital