Q&A: Top Green Tech Entrepreneur Diran Apelian
Dec. 2, 2024 - For engineers who want to be entrepreneurs, the gold standard is Distinguished Professor Diran Apelian, who co-founded Ascend Elements, a company that invented ways to recycle EV batteries and is valued at over $1 billion. TIME magazine named it one of America’s Top Ten Green Tech Companies of 2024.
Did you always imagine you’d be an entrepreneur?
No. I always imagined I’d be in charge of my destiny and would work on problems that are important. In academia, I saw the opportunity to work on problems I cared about and that mattered.
What was the key factor to the success of Ascend Elements?
The stars were aligned. EVs were just coming in and people were making fun of Tesla, but we knew there was going to be a future in lithium-ion batteries. Lithium is not abundant and you need to recover and reuse the elements that go into making the cathode. Three of us – Yan Wang, Eric Gratz and I - decided to form a company with no money.
How were you able to raise money?
As chairman of the board, I recruited my cool friends and formed an advisory board. It became evident that we needed a professional team to take us to the next level so I recruited a CEO, CFO and COO who we couldn’t pay so we gave them equity. With the right team, it just took off. The key is putting the right team together and creating the right culture where people are helping each other with no ego trips. We were all aligned with one goal.
Were you surprised at its success?
I’m surprised at how fast it happened. I knew it was going to happen but not in six to seven years.
Tell us about your other company Solvus Global.
We take ideas, derisk them, and create a product and market for it and spin it out. We have the best talent to start companies – two of my former Ph.D. students – Sean Kelly and Aaron Birt who are COO and CEO. Solvus Global provides the infrastructure – everything you need to start a company. It functions like a studio model you find at venture firms.
What advice do you have to engineers who are aspiring entrepreneurs?
What we often find is that an aspiring entrepreneur has an idea - a cool idea - one they are passionate about. But that’s not enough. The question that needs to be answered is: Whose problem is being solved and are they willing to pay for it?
What’s the key to successful innovation?
Anticipate needs that people don’t even know they need, envision the future, also verify and validate and be willing to drop ideas and move on to the next one. Ultimately, one needs to create value for others, and not for themselves. If one succeeds in creating value for others, they will end up creating value for themselves. The focus should be on others.
How do you know if something has market potential?
Some of it is a gut feeling, some of it is your right brain, some of it’s intuition and some of it is timing, and we can’t forget good luck.
How do you develop the marketplace?
Developing a market is a long process; it requires an acumen for listening, forming relationships, earning trust and delivering on the promise.
Where should people get money for investment?
Whoever gives it to you. The key is to make the case for why anyone should invest in your start up. The value proposition needs to be made clearly and credibly. I have found that people listen to you if they like you, but they need to trust you if they want to do business with you. So much of it is not about the money, but rather earning the trust and developing the relationship. Sincerity, authenticity and humanity plays a big role.
Why did you start the Essential Skills class?
In French, the root of engineer is genius. Where I grew up in Europe, engineers are leaders. When I joined the materials science and engineering faculty at UCI, I had the privilege to examine the curriculum and suggest courses. To be successful, engineering students should understand the human dimension.
The answer was to develop a course that awakens in our students the essential skills they need to develop for success in professional life. This course is all about the things I wish someone had told me when I was 20 years old. This is my way of giving back, and the success of the course has been most gratifying.
What type of personality is suited to be an entrepreneur?
Not everyone can be one, probably only about 10% are suited. However everyone, with no exception, can develop an entrepreneurial mindset. By this I mean having an understanding of why one is doing what they are doing. Who is the customer? Who benefits from this? Whose problem are we solving?
Being an entrepreneur is not easy. You’re living in a world of uncertainty. You have to be comfortable being uncomfortable. You are afraid to fail, but you also have that resilience that if you fail, you have to get back up on your feet quickly and keep going. It’s chaotic. You have to be willing to do many chores from accounting to janitorial work to making a pitch to investors. It’s not for everyone.
What’s your motto?
“Create value for other people and you end up creating value for yourself.”
Nothing is easy. Doing things for the wrong reasons – just to make money – is not a good reason to start a company. If your reasons are genuine or right – you’re serving a need and creating value – you will succeed and it’s sustainable.
- Natalie Tso
