Gary Morgenthaler
Morgenthaler Ventures
2730 Sandhill Road, Suite. 2200
Menlo Park, CA 94250

Voice: (415) 233-7600
Fax: (415) 233-3362

Gary Morgenthaler pioneered Relational Technology, Inc., later called Ingres Corporation, from a very small company with a high risk idea to being, by 1989, the world leader in distributed relational database software. Funding from an SBIR research project in 1981, when the firm had six employee, was a significant factor in this achievement. These few SBIR dollars may have had the largest potential economic impact of any SBIR project to date. Economic results show cumulative sales, directly and indirectly related to the early research, exceed an estimated $2.5 billion with an estimated 2500 new jobs having been created.

The NSF funded project was a technological breakthrough. However, it was MorgenthalerÕs leadership as president of the firm through most of its growth period, that capitalized on that potential. By 1989 Ingres had become the world leader in this new and rapidly growing software field. Although Ingres was acquired in 1990, the benefits continue directly through Computer Associates International Inc which now owns the technology and, indirectly, through three spin-off firms. In 1989, three of IngresÕ top scientists each spun off as the key personnel in three different, and now successful, cutting edge companies also in the relational database software field. One, Illustra, was acquired by Informix, and two others, Forte Software and Documentum are growing rapidly, having a combined marker value of more than $2 billion.

Morgenthaler quickly capitalized on the results of this early SBIR research. The project enabled him to recruit high quality staff and to obtain substantial venture capital and public investment to support the rapid growth which is critical to success in this very competitive field. SBIR Phase I results were quickly used in 1982 to attract $1 million in venture capital, another $2.5 million was forthcoming in 1984 after promising Phase II results, and $8 million more in 1986 after market introduction. The strong market acceptance then led to a $30 million initial public offering. It is an excellent example of the potential leverage of SBIR funded innovative, high-risk ideas and excellent business management. The NSF SBIR project began less than a year after the companyÕs founding in late 1980. By 1989 IngresÕ customers included more than 100 of the Fortune 500 firms and the company had 1400 employees. Ingres also played a major role in BoeingÕs AWACS system.

Morgenthaler said that ÒSBIR was critical seed funding of ideas with long term strategic importance. The NSF program was willing to provide early high risk funding for a very innovative, high-risk idea at the concept stage. Ingres was the first company to reach the market with distributed relational database software and it was clear that it had major growth potential in many different fields. This technical success and funding led to future fast growth.Ó Morgenthaler left Ingres after its acquisition by ASK in 1990 and now is president of Morgenthaler Ventures in San Mateo, CA.