Greg Merril’s varied background includes amateur road cycling, professional sports car driving, a stint as a tennis pro and 20 years as an entrepreneur, but all of his endeavors share two common themes:  vision and success.  After founding HT Medical Systems in 1987, he led his firm to four consecutive years as one of Maryland’s fastest growing technology companies.  For his work in medical simulation, the Smithsonian Institution named Merril a “Hero of the Information Age” in 1996.  His success story was selected to be part of the National Museum of American History's permanent research collection on Innovation in Information Technology. 

In July 2000, Merril led HT Medical Systems through a $42M merger with Immersion (NASDAQ: IMMR).  Two years later, he started another company that's been attracting more attention and awards.  Amplifier recently asked Merril about InterAction Laboratories, Inc.

Amplifier:   What does your company do?

Merril:   InterAction Laboratories is making the digital world a physically active place. The focus is on developing hardware devices that simulate the resistance and mass of objects in video games, military simulations and other digital content.

Amplifier:   What problem does it solve?

Merril:   There are two problems we address.  First, we solve a technical limitation of interactive media – our human-to-computer interface technology provides the only safe and commercially viable means to feel the weight and resistance of virtual objects. The result is interactive content that is more realistic and games that are more immersive and fun.

Second, by making video games physically active, we hope to have a positive impact on a major contributing factor in the obesity epidemic.

Amplifier: What’s unique about your company?

Merril:   InterAction Labs technology is unique in that it engages players with resistance-based (vs. motion-based) control.  The experience is far more immersive, precise, and fun than traditional control methods, all while burning calories and promoting good health.

The company has a growing patent portfolio including 18 patents either issued or pending.  We have been honored with awards including the 2005 and 2006 CES Electronic Gaming Innovation of the Year and a Readers Digest Top 100 of 2006.  The readers of Fast Company magazine ranked Interaction Labs as one of the 2007 Fast50 companies for best new business ideas.

Amplifier:   When did you start your company?

Merril:   March 2002.

Amplifier:   How have you funded the company to date?

Merril:   InterAction Labs is my second start-up.  I had a successful exit from my first technology company (Immersion Medical – NASDQ: IMMR) and I was able to fund early R&D.  My friends, family, and several investors from my first venture have also participated.  Recently we have had some institutional placements from Sachs Capital and the Maryland Venture Fund.

Amplifier:   At what stage of development is your company?

Merril:   We have engaged multiple markets with both licensing and direct product sales.   We are cash flow neutral right now with about $1M in revenue.  I consider us to be early stage.

Amplifier:   What is your biggest current challenge?

Merril:   The ongoing challenge is determining how far to advance our concepts ourselves vs. bringing in go-to-market partners.  Our ideal go-to-market scenario involves establishing a relationship with a market-leading partner.  The challenge is determining when to establish this relationship -- if we hook up too early in the value curve revenues are generally limited to lower percentage royalties, but If we carry the ball too far we bear the risk of inventory and market development costs.  Each concept for each market has its own sweet spot.

Amplifier:   What would you be doing if you weren't an entrepreneur?

Greg Merril is a guest lecturer on business and product development for the MBA programs at George Washington University, The University of Maryland, and Johns Hopkins University.  He is an award-winning video and interactive media producer/director, and a three-time Greater Washington Entrepreneur of the Year Finalist (2000, 2001, and 2007).