Profile - Francis Charig

Becoming an entrepreneur means doing it right

by Nitin Kumar

Francis Charig, Chairman & CEO of Tao Group talks to The Chilli about the reasons for becoming a technology entrepreneur, and about the values in getting things right from the start, especially if you're creating valuable intellectual property.

Francis Charig

Tao, founded in 1992 by Charig and co-founder Chris Hinsley, was created to develop a software platform that would enable multimedia services to be created and run over the emerging range of digital networks and digital devices. The platform was uniquely designed to be independent of microprocessor (such as an ARM or an x86), independent of operating system (including Microsoft PocketPC or Linux) and independent of language (support for Java and C for example). It was fundamental to both Charig and Hinsley that these services had to be ones of real utility that the consumer would actually pay for. The platform is named 'intent' and is today being used by major manufacturers across the world to bring differentiated products to market more quickly. The first carriers are allegedly requiring intent to be built into any listed phones on their networks and a global standards body, the Open Contents Platform Association, has ratified intent's core as its own central standard.

Since it's inception, the company has focused on common sense. This means getting processes right from the start in terms of company structure, product development, administration, funding, partners, and so on to establish its presence. Now, it's been listed as one of the companies to watch as a future contender in The Sunday Times Tech Track 100.

Charig says, "If you're building a technology company, you have to get it right from the very beginning, and most especially this means protecting your intellectual property [IP] from day one. That's where your greatest value is. If you don't protect your value, you might as well forget it. That was the first thing we did." He also says that you need to balance this with having the right people. "If you get these two right early on, then everything else should follow."

The drive to do it right stems from the values instilled in him by his parents, and his experiences in his jobs prior to starting Tao. Although he started his career as a software engineer at the Martin Marietta-owned Hoskyns Group (now part of Cap Gemini), he then went to work on the London Stock Exchange, heading up the Trading Systems Business Unit. While there, unimpressed with the poor quality of management, he gained belief that he could do it better. As Tao evolved, Francis' role has spanned all areas of the company, including the recruitment of a strong management team, raising finance, developing sales and marketing, and close involvement in driving Tao's technical direction.

He also wanted to achieve something of value. "My late father was a successful author and broadcaster. One website describes him as the 'Carl Sagan' of the BBC but in reality he was one of the world's leading authorities on dinosaurs, working as curator of fossil reptiles and birds at the Natural History Museum in London. I was brought up in an environment where personal achievement was most important, not money. Therefore, I was driven by the desire to achieve something of value."

Experience with investors

In developing the company, he comments on the need to make sacrifices for the sake of getting the business in proper shape to address the 'real world'. "You need to get the administrative and legal side right - especially if you're going to have investors. If you don't get this right, things will fall apart." He adds, "We also used professional auditors and lawyers - always use the top advisors. If you can't make the sacrifices, then you're not an entrepreneur. In the first two years, I didn't even earn a bean."

In developing its products, Tao has raised $28m so far, with investors including top names in the industry - Motorola, Sony, NEC, Sharp and Mitsubishi. Charig says that each round of financing was a good experience. "We have been especially lucky with the companies involved. We have tended to work closely with the trade investors as they bring the most added value to Tao. As a company that had to spend a lengthy time developing a sophisticated product and bringing it to market, we also needed investors who had the patience to allow us to get it right and win long term. It's easier for the trade investors to support that route."

What is the worst experience? "A blue chip, UK financial investor several years ago going on a fishing expedition into our company but pretending it was real due diligence. That was unethical. That happened when we were smaller and probably wouldn't happen to a company as developed as Tao is today. We also had an investor in discussions in 2000 that was close to investing a substantial sum when a number of its other investments crashed so it withdrew. Therefore, never assume anything is complete until the deal is signed and the money is in the bank!"

The company is preparing all of the actions required for an IPO, but that is not the be all and end all for Charig. "I am proud that I have always tried to do what is in the best interests of the company. The biggest thrill in running an enterprise for me is in building up a close-knit team of able, creative, dynamic and pleasant people. Today we have first class digital cameras, handsets and home consumer products with top brand names all being delivered with our software, we have a global standards body promoting specifications created by our organisation, and we are establishing a great reputation for providing quality product and support. It's a good start but onwards and upwards."

© Chilli Publishing Ltd 2003

08NOV2002