Building and Supporting a University Spinout … › files › Fleming_Developing...Accelerators vs. Incubators Accelerator Incubator Duration 3-6 months 1-5 years Cohorts (Groups)

#aiInnovationBuilding and Supporting a University Spinout Ecosystem

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San Antonio, 30-31 July 2018

#aiInnovationDeveloping Resources for Spinouts: Accelerators, Incubators, and I-Corps

Stephen Fleming Vice President, University of Arizona

Tuesday, July 31, 2018 • 8:30-9:30 a.m.

Agenda

AcceleratorsIncubatorsNSF I-CorpsLean Startup MethodQuestions & Answers

Accelerators vs. Incubators

Accelerator IncubatorDuration 3-6 months 1-5 years

Cohorts (Groups) Yes No

Business Model Profit or not-for-profit / Investment

Not-for-profit / Rent

Selection CompetitiveCompetitive or Non-

competitive

Venture Stage Early Early or late

Education SeminarsClasses and coaching: legal,

finance, HR, etc.

Mentorship External mentors and other cohort members

As needed / Strategic and tactical

Venture Location On-site Typically on-site

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Accelerators: Examples

AcceleratorDuration 3-6 months

Cohorts (Groups) Yes

Business Model Profit or not-for-profit / Investment

Selection Competitive

Venture Stage Early

Education Seminars

Mentorship External mentors and other cohort members

Venture Location On-site

US Accelerators: Dramatic Growth

Began with Y-Combinator in 2005.

Structure quickly imitated by others nationwide.

Most major metropolitan areas have one or more.

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AcceleratorsThe objective is to turn the art of starting a company into a structured development program that can be repeated like an assembly line.

Startup gets: •Mentorship • Funding •Office space • Exposure / Credibility

Accelerator gets: •Equity ownership… Potential capital gains

Competitive Selection

It’s difficult to get into the top programs.

Typical Accelerator Process (1)

Applicants may be local, or nationwide, or international

Temporary relocation: Startup Chile

Decisions based on quality of team, product/market fit, and alignment with accelerator focus Cohorts (groups) are typically anywhere from 10 to 30 teams

Exception: Y Combinator is now ~100 teams

Everyone starts on the same date

Relocation: Temporary or Permanent?

“We think of Y Combinator as Rome or Athens in antiquity. Come out to Mountain View for three months, you don’t have to move here permanently. Absorb whatever really works out here and take that back home.”

—Garry Tan, partner at Y Combinator

Accelerator Environment

Open, flexible, collaborative spaces.

Typical Accelerator Process (2)

Small investment to support founding team

Typically $25,000 for 6% of the company Varies by industry sector, location, etc.

Can be equity or convertible debt

Expectation The founders work full-time on this idea for the duration of the cohort (typically 12 weeks)

Seminars and Discussion Groups

Top visionaries and thought leaders.

Demo Day!

Unrelenting focus of accelerators.

Demo Day!

“There are 77 days until Demo Day. After that, anything you do will make you better — but it won’t make you better on Demo Day.”

—Paul Graham

Typical Accelerator Process (3)“Demo Day” for investors and strategic partners

Cohort members show what they’ve accomplished, what they plan to do next.

High rates of venture funding or early “acqui-hire” M&A

Companies have typically progressed faster than without the accelerator program Greater visibility (for members of top accelerators)

Buying into a network of cohort members

Alumni networking continues indefinitely

Agenda


Incubators: Examples

IncubatorDuration 1-5 years

Cohorts (Groups) No

Business Model Not-for-profit / Rent

Selection Competitive or non-competitive

Venture Stage Early or late

Education Classes and coaching: legal, finance, HR, etc.

Mentorship As needed / Strategic and tactical

Venture Location Typically on-site

Case Study: ATDC

ATDC is about much more than the real estate!

Commons Community Connections

Coaching

Curriculum

Services: The Five C’s

Community

Dozens of companies, hundreds of individuals, all sharing the intent to build great tech startups.


Coaching

Curriculum

Community

Community

Community

Curriculum

Classroom and streamed-video courses, on a variety of topics, taught by professionals.


Coaching

Curriculum

Curriculum

Curriculum

Multiple classes, workshops, and labs… all accessible to the public for $25/quarter!

Coaching

Each “Signature” company is assigned an experienced Entrepreneur-in-Residence.


Coaching

Curriculum

Coaching

Climbing Startup Mountain

You Need To Get a Sherpa!

Entrepreneurs in Residence

ATDC EIRs have started, funded, built, and sold technology startup companies. They provide ATDC Signature companies with individualized credible advice on business models, product features, funding rounds, and management issues.

Tim SheehanPete SantoraRichard NaillingJustin Barnes

Current EIRs

Healthcare innovation exec and strategist. Co-founder of RelayHealth, Greenway. Leadership roles in HIMSS, EHR Assoc, Healtheway, and more.

Tim SheehanPete SantoraRichard NaillingJustin Barnes

Television and media exec (MCA /Universal) turned Internet and interactive media pioneer (iXL, Studiocom WPP).

Built and sold multiple SAAS companies. Graduate of Flashpoint accelerator at Georgia Tech. Lean Startup author, speaker, and mentor.

Experienced Internet commerce leader. Built Yahoo Finance. Senior exec at ESPN.com, Yodlee, E-Trade, and more. Leads EIR team at ATDC.

Former EIRs

Decades of experience, contacts, and battle scars.

Jamie Bardin Tom Bates Bret Bergman Dan Ciprari Tim Dorr

Shane Matthews Hezi Moore Frank Moyer Blake Patton

Brooks Robinson Sylvain Waller

Commons

Office, laboratory, meeting, and shared working spaces in Tech Square and beyond.


Coaching

Curriculum

Commons

Commons

Summer 2015 Renovations



Connections

Startups are a team sport. We help build those teams by connecting founders to resources.


Coaching

Curriculum

Connections

Financial Resources

We make formal and informal introductions to angels, venture capitalists, & Federal funding.


Coaching

Curriculum Investor Connect

Financial Resources

Industry Partners

Industry Connect makes targeted intros between startups and Fortune 500 partners.


Coaching

Curriculum Industry Connect

Industry Partners

Industry Partners

Industry Partners

“Industry Connect is a great program that allows our company to meet many of the leading, new, cutting-edge technology companies. The quality of the ATDC member companies are among the best of all of the startup incubators in the high tech industry.”

—Kenji Takeuchi, Vice President, Products and Technology, Flextronics

Campus

Campus Connect helps startups find relevant research, thought leaders, and students.


Coaching

Curriculum Campus Connect

Campus

Campus

Campus

Credibility

Our track record speaks for itself…

Credibility


Coaching

Curriculum

Credibility

One of the world’s top technology incubators. Named a “Top 12 Incubator Changing the World” by Forbes in 2010 and 2013.

Nationally, 90% of technology startups fail. More than 90% of the ATDC’s Signature graduates are successful five years after their graduation.

ATDC’s 150 graduates have collectively raised more than $2 billion in capital in Georgia. Just in 2013, ATDC Signature companies raised over $75 million in capital.

Membership Tiers

GRADUATE

ATDC Service Offerings

Educate

Signature

Accelerate

GraduateA

nnua

l Sho

wca

se •

Mon

thly

Ent

repr

eneu

rs N

ight

Star

tup

Wee

kend

s

ATDC Choice Program

CEO Roundtable

CTO Roundtable

Signature-Only Events

Spea

ker

Seri

es

Customer Discovery Lab

Core Courses

SBIR Workshops

Sector Verticals

Advanced Courses

Teaching Mentors

Catalyst Office Hours

Advisor Mentor(s)

Assigned Catalyst

SME Mentors

Assigned Entrepreneur in Residence (EIR)

Com

mun

ity

Part

ners

Director Connect

Campus Connect

Investor Connect

Industry Connect

Sponsor Connect

Community Curriculum Coaching

Community Co-Working Partnerships

Seed Space

Access to Design Studio

Dedicated Suite Space

Commons Connections

Circ

les

Founder Circles

=

Educate

Signature

Accelerate

GraduateA

nnua

l Sho

wca

se •

Mon

thly

Ent

repr

eneu

rs N

ight

Spea

ker

Seri

es

Customer Discovery Lab

SBIR Workshops

Teaching Mentors

Catalyst Office Hours

Com

mun

ity

Part

ners

Community Curriculum Coaching Commons Connections

Star

tup

Wee

kend

s

Circ

les

Core Courses Community Co-Working Partnerships


Educate

Signature

Accelerate

GraduateA

nnua

l Sho

wca

se •

Mon

thly

Ent

repr

eneu

rs N

ight

Spea

ker

Seri

es

SBIR Workshops

Sector Verticals

Advanced Courses

Advisor Mentor(s)

Assigned Catalyst

Com

mun

ity

Part

ners

Sponsor Connect


Seed Space


Commons Connections

Star

tup

Wee

kend

s

Circ

les

Founder Circles


Educate

Signature

Accelerate

GraduateA

nnua

l Sho

wca

se •

Mon

thly

Ent

repr

eneu

rs N

ight CEO

Roundtable

CTO Roundtable

Signature-Only Events

Spea

ker

Seri

es

Advanced Courses

SME Mentors

Assigned Entrepreneur in Residence (EIR)

Com

mun

ity

Part

ners

Campus Connect

Investor Connect

Industry Connect

Sponsor Connect



Dedicated Suite Space

Commons Connections


Educate

Signature

Accelerate

GraduateA

nnua

l Sho

wca

se •

Mon

thly

Ent

repr

eneu

rs N

ight

ATDC Choice Program

Spea

ker

Seri

es

Com

mun

ity

Part

ners

Director Connect

Campus Connect

Community Curriculum Coaching Commons Connections

Agenda


NSF I-Corps

What is I-Corps?

NSF I-Corps Nodes and Sites

NodeSiteState

UCSF Stanford UC Berkeley

UCLA USC Caltech

UT Austin Texas A&M Rice Texas Tech

Georgia Tech UA-Tuscaloosa UA-Birmingham UT-Knoxville

U Maryland GWU Va Tech Johns Hopkins

Cornell U Rochester RIT

U Michigan U Illinois Purdue

CUNY NYU Columbia

I-Corps Course Objective

What does it take to go from an idea to a business?

–Business Model + Customer Development

–Hypothesis testing

–Get out of the building!


Create the pressures, uncertainty, and challenges of a real startup.

–Our expectations are unreasonable, they require extraordinary effort.

–All three team members must participate fully

• Principal Investigator.

• Entrepreneurial Lead.

• Mentor.


We expect failures, iterations, and pivots.

Class is a lab.

Books/lectures are tools, not answers.

Fail fast; learn quick; push you outside your comfort zone.

Teaching Philosophy

We’re tough, direct, fair — you need to be the same.

We’re your biggest supporters – we want you to succeed.

We don’t pretend to be domain experts; we know you are smarter than we are.

Get Out of the Building!

There are no facts here.

The class is about the work that your entire team does outside the building.

It’s the difference between a hallucination and a vision.

Our Expectations of You

This is a full-contact, immersive class.

–You will spend most of your time outside of your office, your lab, and your University.

–You all will do all the work assigned (and it is a lot more than you probably realize).

If you think you are not learning, or you cannot commit the time, see your NSF program manager.

Team Deliverables

Each Week – 10 minute webex

–Lessons learned presentation - 5 minutes

• Instructor critique - 5 minutes

–Launchpad Central continuously updated

–Tens of hours of outside the building learning

Final week — in person

–10 minute “lessons learned” presentation

–2 minute science video

Each Week

Get out of the building

Test your hypotheses

Watch the Steve Blank lectures

Update your canvas

Present what you learned

Discuss the lectures

Repeat for 6 weeks

Agenda


What We Have Learned

Turning guesses into answers:

The scientific method applies to business!

Testing Hypotheses

??

Make a hypothesis about one element of your business model canvas.

Testing Hypotheses

??

Develop a controlled experiment to test that hypothesis.

Now…

Face

-to-Fa

ce

Videoco

nferen

ce

Phon

e Call

Email

Email

Surve

y

Effectiveness

Testing Hypotheses

Don’t sell!

??

Conduct that experiment against real-world customers of your product or service.

The Value of Experiments“If it disagrees with experiment, it’s wrong.

It doesn’t make any difference how beautiful your guess is, it doesn’t matter how smart you are, or who made the guess… If it disagrees with experiment, it’s wrong.”

—Richard Feynman

#aiInnovationTesting Hypotheses

???Fact

Congratulations!

You have learned something.

Now, do it again.

The Big Secret...

Do this over 100 times.

(Really.)

There Is No Substitute!

“A man who carries a cat by the tail learns something he can learn in no other way.”

—Mark Twain

We Knew This Before...

“I find out what the world needs. Then I go ahead and try to invent it.”

—Thomas Edison

Lean Startup Operations

• Minimum Viable Products (MVP)

• Build-Measure-Learn

• A/B testing

• Key Performance Indicators (KPI)

• Continuous deployment • Rapid iteration / pivoting

Minimum Viable Products

Minimum Viable Products

Build-Measure-Learn

Startups don’t fail because they fail to build something.

Startups fail because they fail to make something that someone wants to buy.

Search vs. Execution

? ? ?Discover Validate Create Build

Search Execution

“A startup is a temporary organization designed to search for a repeatable and scalable business model.” —Steve Blank

Rapid Iteration / Pivoting

“A startup is a temporary organization designed to search for a repeatable and scalable business model.” —Steve Blank


Search Execution

Investment Timing


Search Execution

Seed Series A Series B

Startup Thesis

It all starts with an idea…

? ?

Startup = Search Company = Execution

Discover Validate Create

Thesis: Consistent Format

Customer Segment

will buy

Product

because of

Value Proposition.

Thesis

Questions #aiInnovation

Thank You!

Stephen Fleming Vice President Strategic Business Initiatives

University of Arizona

[email protected]

Phone (520) 621-3150

Twitter @stephenfleming

#aiInnovation

Documents

Building and Supporting a University Spinout … › files › Fleming_Developing...Accelerators vs. Incubators Accelerator Incubator Duration 3-6 months 1-5 years Cohorts (Groups)