How This Med School Dropout Raised $19 Million To Disrupt The Mining Industry

Key Concepts

• Maverick: A company developing and producing chemicals for resource extraction.
• In-situ Recovery (ISR): A method of extracting resources by pumping chemicals underground rather than traditional mining.
• LithEx: Maverick's proprietary biologically produced chemical for resource extraction.
• Proteins/Enzymes: The biological basis of LithEx, derived from bacteria.
• Fermentation Vessel: Re-engineered sewage pits used for large-scale production of LithEx.
• API (Application Programming Interface): A technical term discussed in the context of Y Combinator.
• Synthetic Biology: The field of engineering biological systems.
• Carbon-Negative Metals: Metals produced in a way that removes more CO2 from the atmosphere than it emits.
• Results-Oriented Approach: Maverick's philosophy of proving product efficacy through data and demonstrations.

Maverick's Innovative Approach to Resource Extraction

Maverick is revolutionizing the extraction of critical resources like oil, gas, lithium, gold, and uranium by developing and producing novel, biologically-derived chemicals. This approach contrasts sharply with traditional, environmentally damaging, and inefficient legacy methods.

Traditional vs. Maverick's Methods

Traditional Methods:

• Gold Extraction: Involves the use of mercury, a neurotoxin, and often manual mixing with ore. This process is described as "disastrous" and inefficient.
• Oil and Gas Extraction: Relies on pumping toxic chemicals like sulfuric acid and hydrochloric acid to fracture ore bodies.

Maverick's Approach:

• In-situ Recovery (ISR): Maverick utilizes ISR, requiring only small holes to be drilled. Their proprietary chemicals are pumped down to dissolve and extract valuable elements.
• LithEx Chemical: This biologically produced chemical is the core of Maverick's technology. It is described as "much cleaner, much faster, much safer, and ultimately much, much cheaper."
• Mechanism: LithEx breaks down the ore body into a solution, allowing for efficient extraction of dissolved elements. This is likened to "mining gold as if it were water coming out of a well."
• Separation Process: After extraction, the dissolved elements are processed to remove impurities like sulfur, sulfides, and silicates. Valuable metals are then separated using resins.

The Science Behind LithEx

The chemicals used by Maverick are biologically derived, specifically proteins. The discovery of these chemicals stemmed from an expedition to northern Greenland.

• Discovery in the Arctic: The founder observed bacteria in Greenland that, in the absence of iron, produced chemicals to break down rock and extract iron for their respiration.
• Nature-Inspired Innovation: Maverick did not invent these chemicals but rather found them in nature and engineered them for industrial application.
• Overproduction and Enhancement: The goal was to "overproduce this chemical" and make it "even stronger" for industrial use.

Large-Scale Production of LithEx

Producing the vast quantities of LithEx required for industrial applications presented a significant scaling challenge.

• Re-engineering Infrastructure: Maverick re-engineered existing infrastructure to achieve large-scale bioproduction, moving beyond laboratory-scale liters to millions of liters for certain mines.
• Fermentation Vessels: A key innovation was re-engineering sewage pits, which already rely on bacteria for treatment, into fermentation vessels. This allows for the production of "as much as we want."
• "LithEx" Naming: The chemical is named LithEx, derived from the Greek "lithios" (rock) for mining and "petros" (oil) for the oil industry.

Safety and Cost Benefits of LithEx

LithEx offers significant safety and cost advantages over traditional chemicals.

• Safer Than Acids: While powerful enough to dissolve rock, LithEx is described as "much safer than acid." It does not cause harm unless in a specific oxidation state.
• Reduced Transportation Costs: Traditional hazardous materials incur significant transportation costs. LithEx, being a non-hazmat version, eliminates these costs, potentially halving production expenses.

Founder's Background and Transition to Maverick

The founder's journey from medicine and military research to leading a biotech startup is a compelling narrative of innovation and impact.

• Medical and Synthetic Biology Background: The founder's expertise lies in medicine, synthetic biology, and toxicology.
• Military Research: Previously, the founder worked for the military developing antidotes for chemical weapons (sarin, VX). This involved creating viruses to break down these weapons in situ.
• Adaptation of Technology: The realization that the principles of breaking down chemical weapons could be applied to other materials, such as plastics or silicates, sparked the idea for Maverick.
• Expeditions and DNA Sampling: The founder's passion for exploration includes annual expeditions to collect DNA samples globally, seeking to expand the company's technological portfolio. This includes past expeditions recreating Darwin's voyage and future plans for the South Pole.
• Dropping Out of Medical School: A significant decision was dropping out of medical school, despite a full scholarship for Navy surgery, to pursue a startup in San Francisco with Y Combinator.
• Motivation for Impact: The driving force behind this transition was the desire to see inventions make a tangible impact quickly. Industrial biotech offers a much faster timeline for development and implementation compared to medicine (weeks/days vs. 14 years).

Y Combinator Experience

Participating in Y Combinator provided valuable exposure and learning opportunities.

• Biotech in a Tech-Heavy Environment: Maverick was a biotech outlier among predominantly software and AI startups.
• Learning from Peers: The experience fostered collaboration, with Maverick leveraging AI and computational models from other startups to enhance their own processes, such as increasing bacteria production and report efficiency.
• Interdisciplinary Collaboration: The environment encouraged cross-pollination of ideas, with calls to explore changes in protein structure and production methods.

Business Model and Revenue Streams

Maverick operates as a chemical company, selling its proprietary LithEx to various industries.

• Target Industries: Mining and metal energy, and the broader energy sector.
• Oil and Gas Revenue:
  • Selling LithEx to old oil wells to break down rock and extract remaining oil, water, and metals.
  • Taking a cut of the extracted metals and oil.
• Mining Revenue: Primarily selling the LithEx chemical to large-scale mining operations.
• Collaborative Extraction: Maverick works closely with oil and mining companies, sometimes producing specific extracted materials like lithium carbonate, gold, platinum group metals, uranium, and thorium. This involves specialized engineering roles for each element.
• Value Creation: The technology unlocks previously inaccessible value from depleted or inefficiently exploited resources.

Company Growth and Fundraising

Maverick is experiencing rapid growth and has secured significant funding.

• Employee Count: Approximately 25 employees, with a focus on biology, chemistry, engineering, design, sales, and customer interaction.
• Funding Raised: $19 million to date, with a new fundraising round planned for the next quarter.
• Advice for Fundraising: Be direct, clearly articulate what the company does, its path forward, and ensure this clarity is communicated to customers, investors, and the team.

Biggest Surprise and Mindset for Change

The transition from the medical field to the startup and resource extraction industries brought notable surprises and required a specific mindset.

• Pace of Business: The most significant surprise was the rapid pace of customer demands in oil and gas, contrasting with the years-long timelines in medicine. This necessitates a "move fast" approach, which can be stressful for scientists but beneficial for business.
• Mindset for Change: The advice for those considering a career change is to:
  • Return to Fundamentals: Understand that basic principles (like atoms) are universal across different fields.
  • Assess Skillset: Determine if the existing skills are transferable.
  • Embrace the Jump: Don't be afraid to make the leap, as there's always the option to return to the previous field.

Role of AI in Maverick's Operations

Artificial Intelligence is an integral part of Maverick's development and operations.

• Mandatory for Scientists: AI is required for all scientists to reduce workload and enhance efficiency.
• DNA and Virus Design: AI is used to design DNA and viruses for producing bacteria that generate LithEx.
• Concerns about AI: The ease with which AI can design and produce viruses, even potentially emulating harmful ones by altering genetic codes, raises significant safety and ethical concerns.
• Regulatory Landscape: The US has a permissive regulatory environment for biotech, allowing for rapid innovation but also posing potential risks. This contrasts with stricter regulations in Europe.

Sustainability Mission

Sustainability is a core tenet of Maverick's business.

• Supporting the Green Revolution: While acknowledging the continued need for oil and gas, Maverick focuses on making their extraction more efficient and greener. Crucially, they aim to produce the critical metals needed for renewable energy technologies (lithium, thorium, uranium) in an equally efficient and non-invasive manner.
• Eliminating Traditional Mining Impacts: Maverick envisions a future where metal production is as efficient as oil extraction, leaving minimal environmental impact. This includes the concept of refilling excavated cavities with CO2-based cement, potentially leading to "carbon-negative metals."

Business Philosophy: Efficiency and Precision

Maverick's business philosophy is centered on efficiency and the imperative to get things right the first time, especially in high-stakes industries.

• Contrast with Silicon Valley: Unlike the "move fast and break things" ethos of some tech startups, Maverick operates in industries where mistakes can have severe consequences, including loss of life or environmental damage.
• High-Stakes Industries: Oil wells operate at 8,000 PSI, and mines involve hazardous materials and hundreds of workers. Therefore, precision and reliability are paramount.
• "Getting it Right the First Time": This philosophy ensures safety, efficiency, and customer trust.

Gaining Credibility in Traditional Industries

As a young founder in traditionally conservative industries, Maverick has focused on demonstrating tangible results.

• Focus on Science and Results: In the Navy, rank often conferred authority. In these industries, credibility is earned by proving the product works.
• Demonstrating Efficacy: Maverick's approach is "results forward." They show customers how their product extracts more lithium or oil, and that it is safe.
• The Hand-Dunking Demonstration: A memorable example of proving safety and efficacy involved the founder dunking their hand into LithEx, demonstrating its non-corrosive nature to humans while showing its ability to dissolve rock samples. This bold act, coupled with real data, builds trust and comfort with potential clients.

Conclusion

Maverick is at the forefront of a paradigm shift in resource extraction, leveraging cutting-edge biotechnology to offer safer, more efficient, and environmentally conscious solutions. Their innovative LithEx chemical, derived from nature and produced at scale through re-engineered infrastructure, addresses the critical need for essential resources while minimizing environmental impact. The company's success is driven by a results-oriented philosophy, a deep understanding of scientific fundamentals, and a bold vision for a sustainable future.