Align Technology

In late August 1997, Kleiner Perkins became a seed investor in Align Technology, creator of the Invisalign system, a transparent orthodontic device to straighten teeth. It was a brilliant concept. Instead of using ugly, uncomfortable metal braces to realign teeth, people could use a series of custom-manufactured removable, clear plastic aligners based on a 3D virtual treatment plan called ClinCheck software. Invisalign clear aligners aren’t noticeable to the casual observer and by changing to the next set of aligners every two weeks, teeth are gradually moved into the desired position. Brilliance aside, it was an unlikely investment for us. The Align team consisted of two founders, both students at Stanford’s Graduate School of Business, who had no experience in medicine or dentistry and no ability to make or sell the product. They weren’t even sure the concept would work and research with orthodontists suggested it wouldn’t.

Nonetheless, Joe Lacob believed in the idea. The orthodontic marketplace was large and growing, as people became aware of the health consequences of dental problems. Consumers were increasingly willing to spend money on cosmetic procedures. He reasoned that more consumers would sign up for corrective dentistry if the treatment was painless and unobtrusive. Joe was convincing and we agreed to invest. Joe took a board seat and remains actively involved with Align today.

It was a long road to success and profitability. Six months after the initial launch, the company required a total reboot. We stepped in, installing a new leadership team and helping Align develop a new growth strategy, incubating the company until it was ready to operate independently.