OEN Member NewsA Story of Resilience: How Phosio Has Weathered the Ups and Downs of Entrepreneurship
When Omid Sadeghi came to the United States in 2013 to pursue a PhD in materials chemistry at Oregon State University, he didn’t necessarily set out to become an entrepreneur. However, after a job at a tech startup that unfortunately folded and challenges finding a role in a tough job market, Sadeghi decided to create his own path.
“My previous job got me interested in the startup life,” he said. “Startups are always working to solve challenges, and that is what makes them exciting.”
Phosio began with an idea around creating a new class of materials for semiconductor industry. Sadeghi applied for a Small Business Innovation Research (SBIR) grant through the National Science Foundation (NSF) and was awarded an initial investment of $50k for business training and customer discovery.
“They told us our idea was great, but we needed a better understanding of the market to get started,” Sadeghi explained.
Sadeghi jumped into NSF’s I-Corps program and interviewed 100 potential customers for Phosio’s products. Through these interviews, Sadeghi discovered that augmented reality (AR) devices had an urgent need for premium optical coatings. This would allow device manufacturers to make devices that more closely resemble regular glasses and aren’t so large and bulky. NSF soon awarded Phosio phase one funding—and then Sadeghi’s entrepreneurial roller coaster began.
“I do wish someone had told me starting a business isn’t a “sexy” job,” Sadeghi laughed. “You need a high pain threshold to be a founder.”
After a successful first year, new leadership at NSF didn’t have as much interest in AR, and Phosio did not receive phase two funding. Undeterred, Sadeghi tapped the company’s and his personal savings, keeping Phosio afloat for another five months. ONAMI, TiE Oregon and the State of Oregon (via Innovation Gap Fund managed by Elevate Capital) stepped in and gave Phosio new funding.
Unfortunately, Silicon Valley Bank collapsed soon after and Phosio’s funding was on hold. Sadeghi’s co-founder made the decision to step away. Sadeghi again tapped his determination and got a reprieve a few weeks later when funding came through. Phosio continued to push through a tough investment year and was recently rewarded with a major milestone.
“We now have an official customer,” Sadeghi said. “We’ve got a well-defined plan for growth and commercialization, people are investing, and exciting things are coming.”
Sadeghi said he is proud of his resilience and that of his team. “There’s a recipe for making a good company,” he explained. “Define goals, build the right team, stay focused, don’t give up and you’re going to get there.”
As Phosio continues to roll full steam ahead, Sadeghi is planning ways to nurture the Oregon tech community that helped him when he needed it the most. Previously a chemistry instructor at OSU and LBCC, Sadeghi wants to step back into mentoring and guiding students in business and technology. He sees an opportunity to create pathways for others, as he did for himself with Phosio, and said the startup environment in Oregon is the perfect way to do so.
“It took me 500 failed experiments to get where we are now, and that persistence was the secret sauce for creating a product that none of the big companies had been able to develop.” Sadeghi said. “There are so many brilliant ideas among students at places like OSU and LBCC, and I want to help them work through their own ups and downs to success and create more jobs in Oregon”
Produced by A.wordsmith for OEN
