Energy Advancement Energy Advancement Leadership ConferenceLeadership Conference

November 18, 2004November 18, 2004

Richard AmatoRichard AmatoDirector, CEIDirector, CEI

CEI is a program of the CEI is a program of the AustinAustin Technology Incubator and IC Technology Incubator and IC22 Institute at The University of Texas at Austin Institute at The University of Texas at Austin

ATI MissionATI Mission

To launch great market leading companies that create wealth for our communities by proactively helping

entrepreneurs in the technology sector achieve their business goals

                                  

ICIC22 = Innovation, Creativity, and = Innovation, Creativity, and CapitalCapital

A “think and do” research lab whose A “think and do” research lab whose mission is to generate wealth, jobs, and mission is to generate wealth, jobs, and shared prosperityshared prosperity

Suite of activities that represents an “eco-system” for wealth creation:

Technology business incubator (ATI) in 1989 Master’s degree in technology commercialization in 1996 High-tech entrepreneurship and management education High-tech support networks “Knowledge workers” developed through e-learning Development program for emerging regions

                                  

Austin Technology IncubatorAustin Technology Incubator

• Founded in 1989 by Dr. George Kozmetsky as a non-profit

• UT-Austin, Chamber of Commerce and City were initial capital sponsors

• Operated by the IC2 Institute at The University of Texas at Austin

• Located on the J.J. Pickle Research Campus at UT Austin with 30,000 square feet of space

• 20 Companies

• Full-time staff employed by UT Austin

                                  

ATI’s Aggregate Results to DateATI’s Aggregate Results to Date• >$1.5B in revenues generated by ATI companies since 1989

• >$720M in outside capital raised by ATI companies

• >3,000 direct jobs created by ATI companies

• Five companies have gone public– Metrowerks– Encore Orthopedics– Concero– DTM Corp.– US Medical

• 17 graduates have been acquired including – Metrowerks by Motorola for $95M– Evity by BMC for $100M– Exterprise by CommerceOne for $78M– DTM Corp. by 3D Systems Corp. for $45M

CEI is a program of the CEI is a program of the AustinAustin Technology Incubator and IC Technology Incubator and IC22 Institute at The University of Texas at Austin Institute at The University of Texas at Austin

Clean Energy IncubatorClean Energy Incubator

NREL and SECO Realized:

1. Market need for business knowledge to commercialize viable clean energy technologies

2. Business incubators are able to focus on clean energy technologies• Partner with ATI (first incubator)

3. National Alliance of Clean Energy Business Incubators• 11 incubators in 9 states

4. Support from SECO and DOE• SECO grant to help fund foundation of CEI

• DOE grant to continue development of Alliance

CEI is a program of the CEI is a program of the AustinAustin Technology Incubator and IC Technology Incubator and IC22 Institute at The University of Texas at Austin Institute at The University of Texas at Austin

CEI is a program of the CEI is a program of the AustinAustin Technology Incubator and IC Technology Incubator and IC22 Institute at The University of Texas at Austin Institute at The University of Texas at Austin

CEI CompaniesCEI Companies

Power Tube Inc.

WindKraft Inc.

RSET Inc. Allied Energy Systems

Austin Biofuels

e60 Vision

                                  

Business Development Value ChainBusiness Development Value Chain

InnovateInnovate

ProductizeProductize

DeployDeploy

GrowGrow

CapitalizeCapitalize

ResearchResearchEntrepreneurs

Corporate Research GroupsThe University of Texas

• Develop relationship network• Build business plan• Acquire seed funding• Develop team• Acquire early customers• Provide turn-key infrastructure

                                  “Cash Flow Valley of

Death”

Ca

sh

Flo

w

Time

Stockowners

Venturecapitalists

Entrepreneurand seed/

angel investors

DOE/NRELand states

Privatesector

Publicsector

Typical,primary

investors

Buyout / IPO / orother exit

TechnologyCreation

Market FocusedBiz and Product

DevelopmentEarly

Commercialization

Great Technology

Market Success

The Challenge: Delivering a Strong The Challenge: Delivering a Strong Return on Taxpayer’s R&D InvestmentReturn on Taxpayer’s R&D Investment

CEI is a program of the CEI is a program of the AustinAustin Technology Incubator and IC Technology Incubator and IC22 Institute at The University of Texas at Austin Institute at The University of Texas at Austin

Additional programsAdditional programs

• NREL Industry Growth Forums– 17th Orlando, FL – October 18-20, 2004– 16th Austin, TX – November 17-19, 2003– 15th Albany, NY – October 29-30, 2002

• CEI Opportunity in Clean Energy Series– Investments in New Energy Technologies – May 13, 2003– Business Opportunities in Austin & Beyond – July 23, 2002– Commercialization of Clean Energy Technologies – April 18, 2002

• ACE Initiative– “Enriching Economy and Environment: Making Central Texas the

Center for Clean Energy” Report– 2004 Clean Energy Economic Development Summit – April 27, 2004– Spring Networking Event – April 10 ,2003– Clean Energy Report Press Release & Event – November 12, 2002– Austin Clean Energy Bash – May 14, 2002

                                  

Technology Incubator

In 2001 when CEI began, the very successful ATI model was used as the framework for operation. However over the next three years, we learned that though the ATI model works very well for high-tech companies, the clean energy industry and the clean energy entrepreneurs require a different framework.

What have we learned?What have we learned?

• Profile of a clean energy start-up– Technically-focused entrepreneurs– Lack of business experience– Capital intensive– Long life cycle

• Pipeline of companies– Broad spectrum of company stages– Variety of technologies – solar, wind, green products, energy efficiency– Varying levels of commitment– Emerging industry

CEI is a program of the CEI is a program of the AustinAustin Technology Incubator and IC Technology Incubator and IC22 Institute at The University of Texas at Austin Institute at The University of Texas at Austin

Giving clean energy companies the Giving clean energy companies the powerpower to succeed! to succeed!

                                  

                 

                                  

www.cleanenergyincubator.comwww.ic2-ati.org