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PACIFIC BUSINESS NEWS | pacificbusinessnews.com
JULY 26, 2013
COVER STORY
ROGERS: He’s now doing what needs to be done CONTINUED FROM PAGE 11 technology businesses. “I moved back to Hawaii thinking that finally there was a way to finance a company in Hawaii,” he said. He had been living and working in California for six years, running Blue Planet Software from San Francisco, a place where he was able to find the investment and support he needed. “Hawaii just wasn’t ready to do that kind of business,” he said. But Act 221 changed all that. “This time, I made up my mind I was going to grow this company, and the first opportunity I had to sell this company, I was going to sell it.” In 2005, Rogers sold Blue Lava Wireless to Jamdat for $137 million. A year later, he had netted another $50 million from the sale, thanks to stock Rogers had in the company. “Ca-ching,” he said with a smile. Despite the “ca-ching”-sized return, Rogers said Blue Lava Wireless was the business he operated in the most relaxed fashion. In fact, he didn’t even show up to work on Wednesdays, following the example set by former Nintendo Co. Ltd. President Hiroshi Yamauchi. “It’s funny, but it didn’t hurt the performance of the company at all,” Rogers said. Ironically, Rogers met with me in his office at Harbor Court in Downtown Honolulu on a Wednesday to be interviewed for this story.
A POLICY OF BUYING AND CREATING “My policy has always been if it exists, buy it, and if it doesn’t exist, create it,” Rogers said. Last year, that way of thinking led him to create the state’s first venture accelerator program to give startups the kind of opportunity he would have benefited from earlier in his career. He is investing in and providing hands-on mentorship to what he calls “capital efficient” and potentially fast-growing technology companies. “I don’t look at Blue Startups as a profit center for me. It is something that I’m doing because it needs to be done,” Rogers said. Companies accepted into the Blue Startups program receive $20,000 as an upfront investment and access to more than $100,000 in in-kind services, including workspace at the “Sky
Box,” located in the Blue Startups office space. Blue Startups received $200,000 to support operations and $500,000 for an affiliated investment fund from the state through the Hawaii Strategic Development Corp.’s Launch Akamai Venture Accelerator program. “We are very pleased that he stepped forward to sponsor Hawaii’s first accelerator,” said Karl Fooks, president of the HSDC. “Our belief is Hawaii needs sources of economic growth. Our main industries are relatively mature, and while vibrant, are not generating the economic growth — in particular, the high-wage job opportunities — that our educated children are looking for. We have an element of a brain drain we confront, and we think about trying to attract our talented kamaaina to come back.” The eight companies that participated in Blue Startups’ first round, which ran for 12 weeks this spring, already have attracted more than $3 million in investment capital. One of those is Volta Charging, which has raised $500,000 while participating in the program, through Blue Startups but also from outside investors. “We’re trying to launch Volta nationally. This has been a good launching point for that,” said co-founder and CEO Scott Mercer. While participating in the program, Volta Charging has grown from Mercer and business partner Michael Menendez working out of coffee shops to a team of eight people involved in the company, and a home base at Blue Startups’ Sky Box office. “Henk has been awesome,” Mercer said, adding that Rogers drives a couple of electric cars himself. “He’s been really supportive of getting Volta up and running. He’s got a vested stake in it. It pairs really well with Blue Planet Foundation, which is also housed out of the same office.” Blue Planet Foundation provides the funding mechanism for Rogers’ effort to end the use of carbon-based fuel. The nonprofit organization is committed to ending the use of fossil fuels throughout the world, starting in Hawaii. For anyone else, that may seem like a daunting task. But maybe not so much for someone who is trying to create a thriving culture for tech entrepreneurs in Hawaii, make a backup plan for life on Earth and discover how the universe ends. One could debate which one of those tasks will prove to be the most difficult.
Don’t let Henk Rogers’ relaxed demeanor fool you: His plate is still full while he tries to solve a number of weighty issues.
ABOUT HENK ROGERS PERSONAL MISSIONS
End the use of carbon-based fuel End war ■ Make a backup of life on earth ■ Find out how the universe ends — and do something about it ■ ■
KEY DATES
1972: Moved to Hawaii for the first time 1988: Discovered Tetris at a consumer electronics show in Las Vegas 1989: Secured the rights to license Tetris on hand-held video game devices 1996: Started Blue Planet Software 2002: Moved back to Hawaii (for good) and founded Blue Lava Wireless 2005: Sold Blue Lava Wireless for $137 million 2012: Founded Blue Startups AT A GLANCE ■ President and CEO of Blue Planet Software ■ President and CEO of Avatar Reality ■ Founder and chairman of Blue Planet Foundation ■ Managing director of The Tetris Co. ■ Vice chair of PISCES ■ Director of East-West Center Foundation ■ Chair of SEE-IT
Blue Startups address: 55 Merchant St., Suite 1700, Honolulu, HI 96813 Blue Startups email: aloha@bluestartups.com
TIN A YUEN