The Art and Science of Commercialization

I like to say we bridge the gap between small-business agility and large-business capabilities. I’ve worked for very large companies, great companies, and many times R&D is very limited in its scope to think broadly or to quickly get through a product development pathway. We think we do both really well. 

We have a contract research division funded through government Small Business Innovation Research (SBIR), and that gives us a foundation to think broadly across different challenges our government clients have. Then we can see high-potential opportunities, where a product fit matches up with a market pull opportunity, and accelerate that growth pattern. So we’re excited for our path ahead. 

Atwal: Could you discuss Luna Labs’ work with materials research? What are the company’s priorities there? What has the company done that you can talk about that you’re most excited about?

Goolsby: We have three divisions — materials, biotech, and systems — but really, material science connects all three. For example, one product our biotech group is developing is a novel drug delivery platform for rare disease and vaccination. It’s a biomimicry capability using carbon nanotubes. Leveraging that into drug delivery is a novel thought, so it’s a great opportunity where we’ve been able to pull in material science and leverage it within biotech. 

We have a med simulation business that has created a cool product that simulates human blood and forms realistic clots. Used in combination with an applied tourniquet or chest seal, you can train first responders and the medical community on how to properly treat bullet wounds and other wounds of that nature. 

Another existing product we have under the systems group involves corrosion monitoring. It’s electrical engineering, but it features the challenge of putting samples out in corrosive environments and monitoring them over very long periods, sometimes two years, to see the performance of new coatings or new types of materials you’re trying to create. Our system accelerates that timeline to get those results in less than six months. Those are very different products, applicable to very different markets, but the core thread of material science that weaves throughout is how we make that connection. 

Atwal: Can you talk us through some strengths you see in your materials, R&D, and the commercialization side?

Goolsby: I want to emphasize how well our team collaborates across our division. Of the 100 employees at Luna Labs, about 75 are advanced-degree engineering scientists across various disciplines, and we encourage collaborative work across disciplines. That flexibility, that teamwork, allows us to think outside the box and collaborate on solving sometimes very niche challenges across a varied portfolio of projects we’re working on for that contract research. 

What we’re also good at is understanding how to be a value-add to commercial partners. When a topic comes up, a good model for us is to think about how we can create a value-added component to someone else’s system. Our model in that product development is not necessarily to be the market leader in coding or in any major global category, but how we can be really efficient at solving a problem and making that solution a value-add to someone else’s large coding capabilities, or corrosion management, software, or other capabilities. We’re constantly looking at how to leverage in-market partners that have market share and are open to bringing in external innovation. We’re flexible in our business model, and I think that’s a real strength for us.

Atwal: You see yourselves as the innovation inside the innovation. Does that sound right?

Goolsby: We think commercialization is about combining relentless determination with a whole lot of creativity. Being able to think broadly, gather the market intel, know our customer base, move fast, be efficient in product development, but understand our customers’ needs and the timing of those needs. In some cases, we need to incubate a project and a development cycle. In other cases, we need to accelerate. Being flexible and understanding where our product development potential is and matching that up with market need timing is the art of commercialization.

Atwal: Do many of your team members come from the University of Virginia (UVA)? Being in close proximity to the university, is that a benefit? How do you interact with or work with other Virginia universities?

Goolsby: The long history of Luna Labs is that it was created in 2001 to collaborate with the University of Virginia. We have another office with a large material science group down in Blacksburg near Virginia Tech. So our group in Blacksburg pulls from that talent while we pull from UVA. That’s two incredible schools with great engineering programs, as well as a biotech talent pool. It’s a large opportunity for us to always be recruiting and to keep close relationships with the students coming out of there.

Atwal: You mentioned that you have a close interface with the federal government, and you’re using some SBIR funds to stand up a part of the company. Can you tell me more about how Luna Labs interfaces with the federal government?

Goolsby: SBIR is a program that funds research and development by small businesses. It’s one of the largest public-private partnerships in the country. It’s a competitive process that gives grants to small businesses with fewer than 500 employees to support R&D needs for the U.S. government. We have a long history of being able to propose and match solutions with the needs coming out of SBIR. 

We use that as a foundation for delivering solutions to the government. In some cases, we’re creating products specifically for U.S. Department of Defense applications. We’re developing some coatings that are high potential for aerospace. The corrosion management acuity device I was describing earlier was developed for aerospace. We have another coating sealant that’s a transparent armor need for reducing delamination of windows for ground vehicles in harsh conditions. In some cases, if there’s an adjacent market for us to further develop that product to meet some other need, we will. We’ll go through that product development cycle, commercialize in that additional market, and find partners to scale it.

Atwal: What does innovation mean at a company like Luna Labs?

Goolsby: Really being able to think broadly, asking questions about why something hasn’t been solved yet, and never assuming that the answer five years ago is the answer today. That’s a trap we can fall into sometimes, where we think surely someone should have found the answer by now, and if they haven’t, it’s probably too hard. The constraints five years ago are never the constraints today. Never restricting yourself from being able to see the possibilities is what we want ingrained in our teams.

From a commercialization framework as well, you always start from where we are today and trace forward key next steps we want to take. You need to think ahead to what is a good end result for us and trace backwards. Where those two meet in the middle is the optimal action plan of what next needs to be solved. It’s a lot like solving a jigsaw puzzle. We never just pick a random piece and try to put it in the middle of the puzzle. We create the outer frame, then trace back to the middle. Innovation and commercialization are so much alike. 

Atwal: I’ve had an opportunity to spend a lot of time in Charlottesville in recent years, and there’s something special about the entrepreneurial community there, specifically around biotechnology and life sciences. I know you’re new to the Charlottesville area, but have you found it to be a supportive community?

Goolsby: Charlottesville has strong biotech, but it’s also a strong area for science and technology solutions. I think Luna Labs is positioned really well for growth and continued partnerships with Virginia-based companies. 

Atwal: How does Virginia stack up to the other states you’ve lived in?

Goolsby: My wife loves history, so being able to see historical sites like Williamsburg has been a lot of fun for us. I’ve got two girls who are 13 and 10 and enjoy outdoor activities. Big cities have some advantages, but they certainly don’t have the nature Charlottesville has to offer. History, nature, and really, just gorgeous mountain views, with wineries, are hard to beat.

Atwal: I have really enjoyed learning about what Luna Labs is up to, what problems you’re trying to solve, and what industries you’re targeting. We’re excited to have this company grow in the Central Virginia area. Drake, it’s been a pleasure.

Goolsby: Thank you so much for the opportunity.

 For the full interview, visit www.vedp.org/Podcasts