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Over the next couple of years, we built and tested a series of prototypes, started dialogues with leading manufacturers, and added business development and technical staff to our team, including mechanical and aerospace engineers. Our plan was that PAX scientific would be an intellectual-property-creating R & D company. When we identified appropriate market sectors, we would license our patents to outside entrepreneurs or to our own, purpose-built, subsidiaries. Given my previous experience on the receiving end of hostile takeovers, we were determined to maintain control of PAX Scientific and its subsidiaries in their development stages. Creating subsidiaries that were market specific would help, since new investors could buy stock in a more narrowly focused business, without direct dilution of the parent company.
We were introduced to fellow Bay Area resident Paul Hawken. A successful entrepreneur, author, and articulate advocate for sustainability and natural capitalism, Paul understood our vision of a parent company that concentrated on research and intellectual property, while separate teams focused on product commercialization. With his own angel investment backing, Paul established a series of companies to market computer, industrial, and automotive fans. PAX assigned worldwide licenses to these companies in exchange for up-front fees and a share of revenue; Paul hired managers and set off to sell fan designs to manufacturers.
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Jay Harman (The Shark's Paintbrush: Biomimicry and How Nature is Inspiring Innovation)