He Raised $75 Million To Build An AI And informatics Platform For Creating Cost-Efficient And Performance-Oriented Materials

Few stories in the world of technology and entrepreneurship demonstrate resilience, constantly reinventing technology, and lessons learned from hard-fought battles better than that of Greg Mulholland.

Founder and CEO of Citrine Informatics, Greg has navigated the complexities of scaling a company in an industry not known for digital adoption while remaining deeply committed to a sustainable vision for the future.

In this interview, Greg discusses a range of topics, from his upbringing and technical background to the realities of raising capital, scaling a business, and the importance of trust in relationships with investors. He also talks about navigating funding different cycles and productizing.

His story is a valuable resource for entrepreneurs facing similar challenges in building a lasting company in an old-line industry like chemicals and materials.

Listen to the full podcast to review the transcript here.

A Technological Foundation Rooted in Family

Greg grew up in Kentucky in a family deeply embedded in technical fields. His father managed chemical plants, while his mother transitioned from industrial engineering to teaching technology.

This environment sparked Greg’s early interest in heavy industry and digital technology, setting him on the path of the chemical sector and the stage for his future career.

While studying undergrad computer engineering at North Carolina State University, Greg initially pursued computer architecture and processor design but soon realized his passion lay elsewhere. He was more into the fundamental science.

Thus, Greg transitioned into transistor theory, transistor design, and materials science, ultimately combining his love for chemistry, physics, and computer science. This interdisciplinary focus became the cornerstone of his career, blending the digital and physical worlds in unique ways.

As Greg was about to graduate, he applied for the Gates Cambridge scholarship. Although he didn’t win the scholarship, he had an opportunity to meet a professor at Cambridge and was really excited about working with her.

The Turning Point: Cambridge and Materials Informatics

At Cambridge University, Greg immersed himself in materials science and data analytics and became part of an “unbelievable academic community,” as he calls it. Here, the idea of materials informatics—using data to drive innovation in materials—began to take shape.

This was a forward-thinking technological concept at the time, but one Greg believed would become an integral part of the future. Returning to the U.S., Greg entered the semiconductor industry, working on power electronics that drive energy efficiency.

Greg strongly believed that the sustainable future of the planet and the ability to support a growing population of the middle class required efficiently delivered electricity. He had done his master’s in solar cell physics and was soon working on power electronics that wasted less power.

Greg’s work contributed to shrinking the size and increasing the efficiency of everyday electronics, like the power bricks for laptops. This commitment to creating impactful, real-world solutions would fuel his path as an entrepreneur.

From Engineer to Entrepreneur: Stanford MBA and the Birth of Citrine

As Greg’s career progressed, he realized that his deep understanding of technology needed to be complemented by business acumen. His decision to pursue an MBA at Stanford introduced him to a new way of thinking, expanding his understanding of bringing technology to market.

As Greg recalls, he learned business culture and language, along with how to manage and grow teams. At Stanford, he met Dr. Bryce Meredig, a PhD in machine learning for material science, who was also getting his MBA.

Together, they saw the potential to marry Greg’s industrial knowledge with Bryce’s academic expertise, ultimately leading to the founding of Citrine Informatics.

Greg and Bryce first tasted success during the summer between their two years at Stanford, where they built a machine learning system that successfully created a new class of thermoelectrics in collaboration with a group at Santa Barbara, University of California.

At that moment, the duo knew they had a disruptive and revolutionary concept that could bring a lot of new thinking to the industry.

The experimental success validated their approach, and Citrine Informatics was born. Greg and Bryce quickly raised an initial $1M to continue developing the company. By the end of 2014, they had graduated and went into it full-time, hiring their first team members.

The Consulting Phase: Building a Foundation for the Future

Despite their early vision of building a software company, Greg and his team had to adapt to the realities of their market. The chemicals and materials industry was slow to adopt digital technologies, so Citrine initially operated more like a consulting firm than a SaaS platform.

As Greg explains, Citrine had people who could deliver their software. They would use the software on their behalf to help them invent new sustainable high-performance materials and chemicals. Clients owned the IP, and Citrine owned the software, though they had to do a lot of digital work.

They helped clients invent new materials for five years, delivering software and digital expertise. While this was not their long-term goal, it was necessary to deliver what the market needed and build trust and credibility in an industry that was hesitant to change.

This consulting approach allowed Citrine to grow and build a foundation, even if it wasn’t scalable. The turning point came when their largest customers, “mega-companies,” in Greg’s words, told them they could no longer work together unless Citrine developed a scalable software platform.

These companies saw the potential of Citrine’s technology but needed a more robust solution to continue their partnership. The market had changed, and this feedback pushed Greg and his team to productize their offerings fully.

Productizing Citrine: A SaaS Model for Materials Innovation

Productizing Citrine’s offering was no small feat. The company transitioned from a consulting-based model to a SaaS platform, allowing clients to use their data science and AI tools to develop and refine materials more efficiently.

Citrine operates like the Salesforce in materials development today, with customers using their platform to invent billion-dollar materials. Unlike many other companies in the space, Citrine avoids a royalty model, opting instead for software fees.

This pricing model has helped them build strong, long-term relationships with clients. When they need help, Citrine offers a professional services team.

Fundraising: The Highs and Lows

Over the years, Citrine has raised nearly $75M in capital. However, Greg’s fundraising journey has not always been smooth. The venture capital community has gone through multiple phases since 2014, with periods of rapid growth and times of more conservative investment.

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Greg believes Citrine was fortunate to have raised more modest amounts during the high-flying periods of venture capital, allowing the company to grow sustainably without overextending itself. He reveals how they have continued to maintain their valuation and have evolved with the market.

Despite his generally positive experiences with investors, Greg candidly shares a difficult situation where bad actors nearly derailed the company. Initially, they negotiated and agreed to the terms.

However, after signing a term sheet with an investor, Greg discovered that key terms and definitions had been altered in the final documentation in ways that would have significantly devalued Citrine and ceded control to the investor.

Fortunately, Greg’s existing investors rallied around him, providing the necessary support to walk away from the deal and avoid what could have been a catastrophic situation. This experience taught him the importance of trust and due diligence in investor relationships.

Vetting Investors and Employees

Greg now emphasizes the need to build relationships with investors who share the company’s values and are in it for the long haul.

Reference checks have become crucial in Greg’s process when selecting investors, ensuring they stand by the company during tough times. He understands that investors may push the company to get bigger and better but ultimately have their own goals and expectations.

When screening investors, Greg asks if they have a perspective about the industry and if it is consistent with his for Citrine. He also asks if they want to build the same kind of company he wants to create.

Sustaining the Company Through COVID

As Greg looks back, the company transitioned to a software company from 2018 to 2019. At the time, Citrine was getting a lot of positive signals from the market and was poised to grow quickly. It was hiring new teams and was at its apex by the end of 2019-early 2020.

By March 2020, it seemed like an economic disaster, with the chemicals industry suffering the worst hit. Many companies virtually shut down, and while they were still operating, they were not investing. Citrine had to cut its team by approximately 40% in response.

A crucial lesson learned from the experience was only to hire people when they were absolutely needed. Having luxuries during profitable times is great, but when bad days come, the tank quickly runs out of fuel.

Vision for the World Tomorrow

Greg envisions a world where materials leverage the design features of every product. For instance, when Apple releases a new iPhone, they release a new material with it almost every single time.

Increasingly, we see that materials like metals, plastics, and glass need to be custom-tailored. Every product first needs each part and its materials to be designed digitally.

More sustainable, cheaper, and performance-driven materials result in lighter and better mileage cars, better phones, and better textiles and clothing, for example. Everything is better because it’s tailored to its use case, and we take less of a toll on the planet.

Greg looks back at times when he ceded control and placed the decision-making in other people’s hands. However, he has now found a better balance and has debates with his technical team, pushing each other to be more productive.

Greg reveals how he has gone through periods of faster, more intense, and slower learning. There also have been phases of learning new technology, the market, leadership, and strategy. He works closely with advisors, mentors, and coaches, particularly people with experience.

Greg appreciates how they don’t give him answers but help him develop an understanding of how to think through these problems in the future. He is excited about taking Citrine to the next level and getting through the next growth phase.

Greg likes to think about how Citrine can go from being the best in the industry to being a profitable company that can really step on the gas from a growth standpoint. He is prepared for new challenges and is confident he will learn from them.

Conclusion: A Vision for the Future

As Citrine Informatics continues to grow, Greg remains committed to using technology to drive sustainable innovation in the materials and chemicals industries.

His journey from Kentucky to Stanford and from engineer to entrepreneur is a testament to the power of combining technical expertise with business acumen.

With nearly $75M raised, a growing SaaS platform, and strong relationships with supportive investors, Citrine is well-positioned to continue pushing the boundaries of what’s possible in materials innovation.

Listen to the full podcast episode to know more, including:

• Greg Mulholland’s journey reflects the power of blending technical expertise with business acumen to drive sustainable innovation in materials science.
• Citrine Informatics evolved from a consulting-based firm to a SaaS platform, enabling clients to use AI and data science for materials development.
• The chemicals and materials industry’s slow digital adoption posed challenges, but Citrine built trust through early consulting, leading to scalable solutions.
• Greg emphasizes the importance of trust in investor relationships after narrowly avoiding a catastrophic deal due to altered terms post-agreement.
• Greg’s vision for Citrine focuses on leveraging custom-tailored materials to enhance sustainability and performance across industries.
• COVID-19 forced Citrine to downsize by 40%-50%, teaching Greg the importance of lean hiring and maintaining efficiency.
• Greg’s focus on continuous learning, guided by mentors and advisors, positions Citrine for future growth and industry leadership.

 

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