BusinessTN

James "Vig" Sherrill hates waiting on traffic lights when there's no traffic. Instead of complaining, the so-called serial entrepreneur and his seasoned management team started up Oak Ridge-based Aldis in 2006 to develop a new vision-based traffic monitoring and control system called the Guardian Eye.

Now in beta testing, the Guardian Eye is designed to perch above an intersection, using 360-degree imaging to learn real-time traffic patterns and set signal changes accordingly. The eye tracks movement using artificial intelligence, not by more conventional road sensors or traffic counters. The smarter it becomes, the more efficient the traffic will flow. It may seem like a dream come true for big city commuters, but Aldis' strategy is to start small.

Among the firm's first customers are rural Tennessee towns that are already taking advantage of Aldis' interim traffic solutions of upgrading existing signals from bulbs to LED (light-emitting diodes) modules. Cities like Newport and Winchester, Guardian Eye testing sites, have reported a significant cost and energy savings marking a huge impact on tight budgets.

"Coming to them with a solution to help them reduce their costs immediately provides us an early interface with the customer. We can come back later with the Guardian Eye," says Glenn Kline, a partner with venture firm Innovation Valley Partners, which recently granted Aldis part of its $3.7 million in Series A funding. Once the Guardian Eye gets the green light, Aldis expects the concept to become the signal manager of choice across the country. But, it takes more than an in-demand product and a few satisfied customers to make a startup like Aldis into a bona fide corporate cash cow.

Sherrill and his cohorts Martin Bauer, Bill Malkes and Tom Jostes have a proven, stellar track record, starting up and selling three tech-related companies for millions of dollars—transactions that have involved Kline from IVP. Kline had prior experience working with this foursome, which, in part, led to IVP's first-ever placements of capital in East Tennessee. (Another $1 million in pre-seed cash was granted to Ampulse, a Knoxville-based virtual company for which Kline is acting CEO.)

Rural venture firm Meritus Ventures also contributed to Aldis' Series A round, but not without some trepidation. Meritus partner Grady Vanderhooven says they initially passed on Aldis because it was "too early."

"Successful serial entrepreneurs are attractive to professional investors. They've made mistakes previously that they've learned from and that they won't repeat," he says.

If history truly repeats itself, Aldis' Guardian Eye will ensure drivers a smooth ride—and investors many happy returns.