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After tech and tacos, real-life rocket scientist sets sights on your phone After tech and tacos, real-life rocket scientist sets sights on your phone
(about 11 hours later)
A headline on a story on my Twitter feed a few days ago said that if you’re not rich by 45, it probably isn’t going to happen.A headline on a story on my Twitter feed a few days ago said that if you’re not rich by 45, it probably isn’t going to happen.
At 59, it looks like I missed that train.At 59, it looks like I missed that train.
Rocket scientist Marc Wallace made it with years to spare.Rocket scientist Marc Wallace made it with years to spare.
At 44, the Cornell-educated aerospace engineer and has been a deca-millionaire since he was 38, thanks to the 2008 sale of a cloud storage company he helped invent called SwapDrive. At 44, the Cornell-educated aerospace engineer has been a deca-millionaire since he was 38, thanks to the 2008 sale of a cloud storage company he helped invent called SwapDrive.
About a year after he sold SwapDrive, the serial entrepreneur funded a neighbor’s dream to own a restaurant, applying start-up technology to the taco business. They launched District Taco, which has five profitable Washington-area locations, a food truck and ambitious expansion plans.About a year after he sold SwapDrive, the serial entrepreneur funded a neighbor’s dream to own a restaurant, applying start-up technology to the taco business. They launched District Taco, which has five profitable Washington-area locations, a food truck and ambitious expansion plans.
Wallace’s latest enterprise enables sports teams such as the Washington Wizards and the Washington Capitals to ping fans at the Verizon Center via their cellphones, offering deals on refreshments, seat upgrades or just a chance to vote star guard John Wall onto the NBA Eastern Conference All-Star team.Wallace’s latest enterprise enables sports teams such as the Washington Wizards and the Washington Capitals to ping fans at the Verizon Center via their cellphones, offering deals on refreshments, seat upgrades or just a chance to vote star guard John Wall onto the NBA Eastern Conference All-Star team.
The company behind this is Radius Networks, a Georgetown start-up that began four years ago with an introduction between Wallace and a pair of hungry businessmen with a disruptive idea.The company behind this is Radius Networks, a Georgetown start-up that began four years ago with an introduction between Wallace and a pair of hungry businessmen with a disruptive idea.
“The story of my success is I have had good partners, and a supportive family, around me,” Wallace said.“The story of my success is I have had good partners, and a supportive family, around me,” Wallace said.
Radius is small, with about 21 employees. It recently raised $6.5 million, including $100,000 from Raul Fernandez, part owner of the Wizards, the Capitals and Verizon Center.Radius is small, with about 21 employees. It recently raised $6.5 million, including $100,000 from Raul Fernandez, part owner of the Wizards, the Capitals and Verizon Center.
Through contractors, it manufactures wireless instruments called beacons, which range in size from a quarter to a deck of cards.Through contractors, it manufactures wireless instruments called beacons, which range in size from a quarter to a deck of cards.
Think of the beacons as E-ZPass transponders that wake an app on nearby cellphones. The beacons can ping your cellphone from about 150 feet away.Think of the beacons as E-ZPass transponders that wake an app on nearby cellphones. The beacons can ping your cellphone from about 150 feet away.
They are relatively inexpensive, costing between $10 and $100, depending on the complexity of the location. About 100 were installed around the Verizon Center in less than a day.They are relatively inexpensive, costing between $10 and $100, depending on the complexity of the location. About 100 were installed around the Verizon Center in less than a day.
“A beacon can be used to trigger an event on your phone,” said Wallace, who is notified by e-mail when his kids get home, thanks to beacons tracking their cellphones.“A beacon can be used to trigger an event on your phone,” said Wallace, who is notified by e-mail when his kids get home, thanks to beacons tracking their cellphones.
The big breakthrough on beacons arrived about 18 months ago, when Apple embedded beacon detection technology in its devices.The big breakthrough on beacons arrived about 18 months ago, when Apple embedded beacon detection technology in its devices.
An iPhone 6 can see the beacon, which wakes the app, as at Verizon Center. In addition to having an appropriate app on your phone, you must say yes to the beacon’s request to begin sending you messages when you are nearby.An iPhone 6 can see the beacon, which wakes the app, as at Verizon Center. In addition to having an appropriate app on your phone, you must say yes to the beacon’s request to begin sending you messages when you are nearby.
Radius is working with a car manufacturer and an oil company to put beacons in pumps at gas stations, allowing payment by mobile phone. The beacons are installed in seven sports venues and at the National Geographic Museum. At the Cleveland Museum of Art, they guide patrons through exhibits and explain each piece of art.Radius is working with a car manufacturer and an oil company to put beacons in pumps at gas stations, allowing payment by mobile phone. The beacons are installed in seven sports venues and at the National Geographic Museum. At the Cleveland Museum of Art, they guide patrons through exhibits and explain each piece of art.
Radius put 1,000 of the beacons at the sprawling Consumer Electronics Show in Las Vegas last month. The technology is spreading to include restaurants, pharmacies and hotels.Radius put 1,000 of the beacons at the sprawling Consumer Electronics Show in Las Vegas last month. The technology is spreading to include restaurants, pharmacies and hotels.
Wallace even has beacons in his District Taco restaurants, where you are reminded that you can pay with the District Taco app by waving your cellphone like a wand over the cash register.Wallace even has beacons in his District Taco restaurants, where you are reminded that you can pay with the District Taco app by waving your cellphone like a wand over the cash register.
“If you have a pharmacy app, it can help you find things around the store. It can also notify you if you have medications or photos to pick up,” Wallace said.“If you have a pharmacy app, it can help you find things around the store. It can also notify you if you have medications or photos to pick up,” Wallace said.
The beauty of the business is its recurring-fee model. Radius doesn’t create apps. But once it installs beacons and software, it sits back and collects a fee from the businesses relying on the technology.The beauty of the business is its recurring-fee model. Radius doesn’t create apps. But once it installs beacons and software, it sits back and collects a fee from the businesses relying on the technology.
“We probably have over 1 million people and a Fortune 100 company using Radius Networks software in some fashion,” Wallace said.“We probably have over 1 million people and a Fortune 100 company using Radius Networks software in some fashion,” Wallace said.
He has been starting businesses since he was a kid growing up outside Boston.He has been starting businesses since he was a kid growing up outside Boston.
A rugby injury ended his ambition to pilot supersonic spy aircraft, so the Air Force ROTC student took a job helping build rockets for Virginia-based Orbital Sciences instead.A rugby injury ended his ambition to pilot supersonic spy aircraft, so the Air Force ROTC student took a job helping build rockets for Virginia-based Orbital Sciences instead.
He worked six years at Orbital, which builds and launches commercial spacecraft. He met another ambitious entrepreneur, Roland Schumann, while they were studying for a master’s in information systems at George Washington University.He worked six years at Orbital, which builds and launches commercial spacecraft. He met another ambitious entrepreneur, Roland Schumann, while they were studying for a master’s in information systems at George Washington University.
A GW professor (his last name was “Money”) in 2000 staked them $50,000 to start SwapDrive, which was their idea for a cloud-based backup to store and secure computer files. Wallace, married and with a newborn son at the time, quit his job at Orbital and went for two years without income.A GW professor (his last name was “Money”) in 2000 staked them $50,000 to start SwapDrive, which was their idea for a cloud-based backup to store and secure computer files. Wallace, married and with a newborn son at the time, quit his job at Orbital and went for two years without income.
“From 2000 to 2004, it was survival mode because of the Internet bubble burst,” he said. When the market recovered, SwapDrive had enough customers and revenue to survive while others went under.“From 2000 to 2004, it was survival mode because of the Internet bubble burst,” he said. When the market recovered, SwapDrive had enough customers and revenue to survive while others went under.
“I was fortunate to have good partners and great investors,” he said. One of those investors was David Steinberg, a Washington technology businessman who introduced Wallace to his Radius co-founders, Stillman Bradish and Scott Smith. Steinberg and former Sprint Nextel executive chairman Timothy Donahue are also directors.“I was fortunate to have good partners and great investors,” he said. One of those investors was David Steinberg, a Washington technology businessman who introduced Wallace to his Radius co-founders, Stillman Bradish and Scott Smith. Steinberg and former Sprint Nextel executive chairman Timothy Donahue are also directors.
SwapDrive’s revenue really took off once the technology was embedded in existing products by Dell computer, Symantec, Intuit and others. Remember the Norton Antivirus? “We were the backup,” Wallace said.SwapDrive’s revenue really took off once the technology was embedded in existing products by Dell computer, Symantec, Intuit and others. Remember the Norton Antivirus? “We were the backup,” Wallace said.
The high-margin company was closing in on $20 million in revenue when it was sold to Symantec, where Wallace stayed for two years.The high-margin company was closing in on $20 million in revenue when it was sold to Symantec, where Wallace stayed for two years.
He remembers swooping into Austin for meetings at Dell headquarters, starting a love affair with breakfast tacos. That led to his launching District Taco with his next-door neighbor in Arlington, an underemployed construction worker at the time.He remembers swooping into Austin for meetings at Dell headquarters, starting a love affair with breakfast tacos. That led to his launching District Taco with his next-door neighbor in Arlington, an underemployed construction worker at the time.
“We were drinking beers on the porch, and I said, ‘What do you want to do?’ He said he wanted to open a restaurant. My only requirement is they serve breakfast tacos.”“We were drinking beers on the porch, and I said, ‘What do you want to do?’ He said he wanted to open a restaurant. My only requirement is they serve breakfast tacos.”
Wallace put up the money for a food truck, which they bought for $50,000 in New Jersey. His neighbor and co-founder, Osiris Hoil, supplied the food expertise. Wallace runs the business side.Wallace put up the money for a food truck, which they bought for $50,000 in New Jersey. His neighbor and co-founder, Osiris Hoil, supplied the food expertise. Wallace runs the business side.
In August 2008, District Taco parked its truck in front of the WJLA TV building in Rosslyn, Va.In August 2008, District Taco parked its truck in front of the WJLA TV building in Rosslyn, Va.
“It was a hit,” Wallace said. A year later, they opened their first restaurant in a strip mall near their homes in Arlington, spending $500,000.“It was a hit,” Wallace said. A year later, they opened their first restaurant in a strip mall near their homes in Arlington, spending $500,000.
In addition to North Arlington and Old Town Alexandria in Virginia, District Taco is in Washington’s Dupont Circle, Capitol Hill and Metro Center. Two more Virginia locations are under construction, in Dunn Loring and Rosslyn.In addition to North Arlington and Old Town Alexandria in Virginia, District Taco is in Washington’s Dupont Circle, Capitol Hill and Metro Center. Two more Virginia locations are under construction, in Dunn Loring and Rosslyn.
The restaurants solicit feedback on social media, allowing them to change menus to suit demand.The restaurants solicit feedback on social media, allowing them to change menus to suit demand.
They added queso dip (“not authentic Mexican”) after repeated requests from customers. Same with fish tacos, which are hugely popular. The profits are reinvested in more stores. Franchising is not out of the question.They added queso dip (“not authentic Mexican”) after repeated requests from customers. Same with fish tacos, which are hugely popular. The profits are reinvested in more stores. Franchising is not out of the question.
I have never eaten at District Taco, but after hearing about the incentive plan, I may apply for a job: Employees who reach general manager or above receive shares of stock in the company.I have never eaten at District Taco, but after hearing about the incentive plan, I may apply for a job: Employees who reach general manager or above receive shares of stock in the company.
If the company goes national and franchises, an ownership stake could be highly lucrative.If the company goes national and franchises, an ownership stake could be highly lucrative.
Now that’s the ticket to getting rich, even for a late-bloomer like me.Now that’s the ticket to getting rich, even for a late-bloomer like me.