June, 2020
www.us-
tech.com
Arch Systems Connects IIoT Technology with Human Potential
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today would tolerate even a fraction of the 80 percent downtime that many African wells experienced. Just as some of the world’s leading compa- nies were advancing the conversa- tion and demanding new technology for predictive maintenance of factory machines, Burke was working with WellDone on similar technology for rural wells in villages that could not begin to afford it. He worked toward an ultra-low- cost monitoring system in his base-
al technology, building next-genera- tion semiconductor machines that made use of hundreds or thousands of internal sensors to drive improve- ments. He had plenty of organiza- tional experience as well. StartX had transformed from a
student group to one of the top five startup accelerators worldwide, ulti- mately accelerating over 400 compa- nies and investing more than $150 million. He had experience and in- sight into emerging IoT technologies and had already built a hardware portfolio. While at Stanford, he ran hackathons where he purchased modular IoT prototyping kits and
challenged the student teams to build real end-to-end IoT products with them. Scheuermann felt certain that cost-effective IoT, with its abili- ty to get the right data from physical systems, was poised to change the way companies operated in the very near future. With Burke’s modular electron-
ics vision for IIoT and Scheuer- mann’s foresight for how data could change industrial companies, they saw an open lane to simultaneously drive a for-profit, for-impact mission. As the new business model
evolved beyond just wells, the compa- ny became more unique. After sever-
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al pivots, WellDone Technology set- tled on a new name, Arch Systems, the name based on the premise that its technology was “the arch between device and cloud — the foundation on which to build your solution.” Seed round money was raised
and Arch hired its first employee, David Karchmer, a software and semiconductor veteran. The first ver- sion of Arch’s cloud was built in less than three weeks for an end-to-end product demo to investors. Not long after, the company made a sale to a global semiconductor equipment manufacturer.
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A repaired well fitted with monitoring hardware.
ment, while wrestling with the reali- ty of prohibitive costs for villagers and cash-strapped NGOs. He needed something that was high-quality, wireless, robust in the harshest con- ditions, and, to have any hope of im- plementation, would somehow cost pennies on the dollar. Burke knew it would take seri-
ous R&D and typical nonprofit fun- ders offered only small grants for drilling wells, rather than the devel- opment of new technology. WellDone was forced to jump from one grant to the next, trying to install working systems, and do fundamental R&D bit by bit between deployments. It was clear that this was not
enough. A different approach was needed, not just in terms of technolo- gy, but also the business model. This led Burke and Austin McGee, anoth- er WellDone leader, to start Well- Done Technology as a separate com- pany to fund the technology. That summer, Burke invited
Scheuermann to join him for a drink at one of their favorite haunts, the Nut House in Palo Alto. He’d just gotten engaged and asked if Scheuermann would be a groomsman at his wedding. Over the course of the evening, the conversation between friends took an unexpected turn. To Scheuermann’s surprise, Burke was weighing step- ping back from WellDone Technology. He could see what needed to be built, but saw no practical way to fund it. What began as a pep talk to a friend turned into a sprawling business brainstorm and a proposal to restruc- ture as cofounders, focused on the In- dustrial Internet of Things (IIoT).
Shifting to IIoT The shift made sense. Scheuer-
mann had deep roots in new industri-
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