Taking a venture global usually isn’t an entrepreneur’s first move. For most startups, competing internationally is out of the question in the early stages of development because of a lack of resources, skilled and experienced management, access to local personnel and resistance by investors. But, when you’ve spent most of your career in Japan/Asia like Louis Ross has, you tend to approach things differently. Armed with an extensive global patent portfolio and a unique perspective, Ross, an Aliquippa native, went global with next-generation sensor outfit, Virtus Advanced Sensors, from the beginning.

Aiming to globally commercialize the inertial sensor technology it had developed using micro electro mechanical systems (MEMS) and micro-machining methods, Virtus commenced operations by establishing offices in Tokyo, Pittsburgh and Hong Kong in the span of two months in 2007, receiving institutional investor backing in its first round of funding. A little over one year later, the company has grown its staff to 20 people and announced its first products, recently selling its first samples to customers in Asia and Europe.

“Your home market is one of several you must be able to develop and sell products into. Its essential to have your outlook shaped by being directly engaged with all of your key market,” Ross, the President, CEO and Chairman of Virtus Advanced Sensors, said. “We refer to this as ‘technology arbitrage’ where we identify technologies and market opportunities in different regions and develop a comprehensive strategy. For example, we may develop a novel medical application in the U.S. that we believe will have a greater market opportunity in Japan.

“The establishment of our offices was well-planned and accompanied by strong local support. I have spent most of my career doing business overseas, especially in Japan and China, and recently in Europe, up until now. Exposure to overseas markets and management methods has greatly affected my thinking and aided me when developing these plans.”

“The majority of our staff currently is bi- or tri-lingual and in each office we speak the local language. We have managed to recruit top talent, including from large companies. We fit in as a local company in each location and perform R&D, product development and sales and marketing functions in all of our offices. We look to create a corporate culture conducive to achieving an environment where the aforementioned technology arbitrage situation can materialize, which leads to more market opportunities for us.”

The market potential for Virtus is growing rapidly as more and more industry sectors begin integrating motion-sensing capabilities into their products. This shift is occurring in a variety of markets right now, including consumer electronics, automotive, robotics, life sciences, aerospace and defense. Currently, Virtus is selling samples of its analog 3-axis accelerometer, its first sensor product, within the consumer electronics vertical. The 3-axis accelerometer was popularized as a key component in the motion sensing controller enabling Nintendo’s Wii gaming system.

The company has also introduced its own unique applications utilizing its sensors, including a wireless sensing mote kit which can be utilized for a variety of applications and a data logging device that features the ability to record motion, temperature and humidity data to be used for shipping valuable and insured packages such as large industrial equipment, among other uses.

Virtus is also hard at work on “5-axis motion sensor” technology that detects linear accelerations and rotations using a single sensor chip. This ultra-compact sensor module is the first of its kind, and could replace the multi-chip solutions that are currently in use.

“Conventionally, multiple sensor devices are combined together into a palm-top-size or even much larger module to detect motion in desired directions,” Ross explained. “However, such a multi-chip solution is complex, bulky and costly, restricting the adoption of motion sensing to a limited number of applications.

“In contrast, Virtus’ ‘true-single-chip’ solution is a breakthrough to such limitations and will allow the widespread adoption of motion sensing in many applications while enabling the creation of entirely new products and features based on motion sensing.”

Ross is looking to take advantage of sizable opportunities in a number of sectors for this device in the automotive, medical, robotics and defense industries. For example, in the automotive sector, every automobile in the U.S. will be required by law to have an Electronic Stability Control system by 2011 and subsystem suppliers are very interested in incorporating Virtus technology into their designs. Customer interest is very strong, and the company is currently in talks with potential licensees, joint venture partners and customers. In terms of its Pittsburgh location, Ross expects to increase its hiring activities very soon and, in fact, already made a significant acquisition this past February when he hired Dr. Mark Boysel to be the Chief Scientist of Virtus. Boysel, who will lead technology and product development initiatives from the company’s downtown offices, is a MEMS pioneer with tons of industry-based research and commercialization experience ranging from leadership roles in startups to experience at large companies such as Texas Instruments and Corning, Inc. He is ecstatic about the huge potential of Virtus as well as the opportunities Pittsburgh brings to the table.

“What is really attractive to me about Pittsburgh is the presence of all the potential customers, users and application developers for our products,” Boysel said. “Some of our best potential applications will be in the areas of robotics, health and quality of life, and industrial automation.

“I hope to develop two or three collaborative research and development projects around MEMS motion sensor testing and applications with some of the local high tech companies and university research groups in the area,” he continued. “With centers of innovation nearby like Carnegie Mellon University and the University of Pittsburgh Medical Center, the possibilities for new applications are endless.” ■