Hutton barely seems to have heard. So Deal tries one last tack. He explains that a U.K. launch would just be a beachhead for the company, that the real market is in smaller and less-developed countries that are desperate for cheap, local power and could never afford a large, conventional nuclear plant. Eastern European countries, he says, have long depended on Russian-built facilities, but now they want to distance themselves from Russia and need something cheaper than the big Western units. Deal notes that most of Hyperion's customers are from these markets. "Nigeria alone is a potential big buyer," he adds. "It's ready for nuclear, but they need to start small."
"I was reading newspapers at 5 this morning. I've got to be up on culture, politics, finance, technology. I need to know what's going on around the world. If someone asks me how I'd be affected by the proposal someone made at some meeting in Copenhagen yesterday, I can't say, 'What proposal? What meeting?'"
Bingo. The Third World angle seems to have ignited Hutton's interest. "This would be a sweet product for developing countries," he says, staring off for a moment as if calculating the possibilities. "Everyone is clamoring to protect the environment from fossil fuels. The timing is right. The budgets are there." How long is Deal in town? Hutton asks. When is he coming back? Would Deal mind if he set up a get-together with some key people he would like him to meet?
Hutton is a tough customer. But Deal often sees tougher. Take those six wary executives on that dreary day north of London. Deal is proposing that the company partner with Hyperion -- and invest $4 million. (Hyperion has raised about $20 million so far, a third of it from Denver-based venture fund Altira Group.) He describes his plant design to the executives and proposes that their company help build it. "We don't make widgets," one of the executives snaps.
"Never worry about how you're doing in a meeting. Focus on the other guy. Otherwise, it's like watching your feet while you're running. And be emotionally prepared to be slaughtered -- it makes you bulletproof."
An executive asks why the company even needs Hyperion. It already has some pretty good power products and is perfectly capable of coming up with its own innovative new designs. "We ought to be collaborating, not competing," Deal suggests calmly. "We're fast moving, and we're going to be figuring out very quickly who our partners will be."
The executives practically snicker. They point out that Hyperion may be agile, but the regulatory process isn't. He will be mired in it for a decade. "We've been told we start evaluation February of 2011," Deal replies in a matter-of-fact way.
This leads to a moment of silence and some exchanged glances. Then the executives issue a barrage of pointed technical questions about the plant design. Deal gives the nod to Mark Campagna, Hyperion's COO, whom he has brought along in anticipation of the meeting taking this turn. Campagna was a captain in the U.S. Naval Reserve and came up through the Navy's highly regarded nuclear power program. (The Navy operates the world's most sophisticated small nuclear reactors, which are locked away in its subs and large ships.) He has also worked for several large commercial nuclear power companies and knows design specs inside and out. Campagna immediately proceeds to bury the executives in details. Deal sits back and enjoys the show, which goes on for about 20 minutes.
"You won't sell anyone with your technology. If they don't want to do business with you, they'll always be able to find a reason the technology falls short. You have to get them to want the technology to work."
Sensing that the executives are feeling a bit less cocky, Deal leans forward and begins to speak. "We have great connections with the U.S. military, and they're not bound by regulatory agencies," he says. "We have political connections who see us as having a chance to be the ones who lead a U.S. nuclear renaissance. We're overcommitted on orders. We keep hearing, 'When will you be able to ship us one?' And we hear it in a lot of different accents. And we're not worried about the approval process. The reception from the agencies has been great, and we expect the process to take less than two and a half years. This thing was designed to be approved. We've got $200 million of U.S. National Lab research behind us. The Japanese have already spent $1 billion on their design. How much are you ready to spend on yours?"
No one speaks for several seconds. Then one of the executives clears his throat. "Um...I think we get where you're coming from," he says. "What are the opportunities for us?"
"The key is, you have to make people believe you believe. Like a sermon, you have to let it flow out. And then let it come back to you from the audience."
David H. Freedman is a Boston-based freelance writer. His latest book, Wrong: Why Experts Keep Failing Us -- And How to Know When Not to Trust Them, will be published in June.
