Translation of University Research to Startups & Industry Collaborations:

Lessons from the Silicon Valley Naresh Sunkara, Ph.D.

July 12, 2017Suzhou International Elite Week

Suzhou Industrial Park

• Lessons from Incubation/Acceleration 1.0• Incubation/acceleration 2.0• Funding, innovation and technology translation• Intellectual Property Commercializing Strategy• Science Fellows Program• Hybrid incubator models

Overview

• University  research:  vital  building  block  of  the  nation's  R&D  enterprise

• Federal  government  supports  60%  of  the  research  performed  at  universities

University Research: The Role Of Federal Funding

Valley of Death

University Based Startups

http://assets1c.milkeninstitute.org/assets/Publication/ResearchReport/PDF/Concept2Commercialization-­‐MR19-­‐WEB.pdf

Companies Founded by UC Berkeley Faculty and Alumni

Lessons  from  Incubation/Acceleration  1.0• Providing  space  &  seed  money  important,  but  not  enough

• Entrepreneurs/founders  lack  the  fundamentals  of  company  building,  especially  straight  out  of  school.

• IP  issues-­‐complicated  licensing  • No  equity

People  &  Team

• Apply  Investor  hands-­‐on  skills  of  company  building  skills• Obtain  exclusive  access  to  the  world  leaders  in  the  field  (founders,  advisors,  consultants)

• Star-­‐quality  management,  scientists,  and  BOD• Build  a  great  culture  where  great  people  do  great  things  to  make  a  difference

R&D  Strategy

• Identify  innovation:  disruptive  science,  technology,  and  medicine• Focus  on  areas  of  high  clinical  unmet  need• Lead  the  science  in  the  field  with  publications,  presentations• Develop/execute  on  an  R&D  plan  that  maximizes  ability  to  deliver  high  value  products

• Consolidate  IP/technology

Finance  &  Business  Strategy

• Understand  the  value  creation  model  – Science  and  Business• Innovative  financing/business  models  customized  to  the  opportunity• Provide  sufficient  capital  – right  mix  of  venture  capital  and  partnering  funds• Collaborate  early with  the  best  industry  partners

What  it  takes  to  build  extraordinary  companies  that  lead  a  field  

• Based  on  University  of  California  &  Harvard  University

• Tech  transfer  offices  &  faculty-­‐ Identify  commercializable technologies

• Include  industries  early  on• Invest  $50,000-­‐200,000-­‐ “Proof  of  concept  funding”  • Researchers-­‐ might  not  see  the  commercial  side• Might  not  understand  the  speed  of  translation• Bring  in  CROs  (Contract  research  organizations)• Timeline-­‐ 6months-­‐ 2  years• Create  connections  to  industries• Intellectual  property  &  equity

Incubation/Acceleration  2.0

The  Future  -­‐ Building  NEW  Companies:Success  through  Strategic  Partnerships  

Building  new  companies  with  industry  partners

SuccessfulEarly Stage Collaborations

People  Network  

People  Network  

Biotech

VCs

DiagPharma

Scientific  Advisors

Legal

Regulatory

Clinical  Advisors

EIRs

Science  Trust

Commercial

Reimbursement

Payers  

Business  Advisory  Board

July  12,  2017

Founders

Leverage Networks

AdvisorMedical  Practitioner• Chair,  Infection  control  committee,  Alta  Bates  medical  center

• Professor,  UC  Berkeley• Sutter  healthDr.  John  

Swartzberg,  MD,  FACP

AdvisorMedical  Practitioner• Chair,  Infection  control  committee  (Retired)

• Professor,  UC  Davis,    CNSU  College  of  medicine

• KaiserDr.  Kenneth  Lee,  MD

AdvisorVP,  Corporate  Strategic  Priorities  Aesynt Inc.• Over  25  yrs sales  experience• McKesson,  Smith  &  Nephew

StaceyKnettler

AdvisorVice  President,  National  AccountsPhilips  Healthcare• Over  25  yrs experience• GE,  

GregNesbitt

AdvisorEngineering  OperationsViaSat• Over  25  yrs experience• IT,  operations• Qualcomm,  CDPH

Krishnan  Vijayaraghavan

AdvisorPartner,  Caldwell,  Butler  &  Associates• Over  30  yrs experience• Business  development    &  operations

• Aramark,  PremierTimAlba,  FACHE

AdvisorCEO,  Pulse  Systems• Over  40  yrs experience• Manufacturing,  operations• Omnicell,  Laserscope

HerbBelluci

AdvisorGlobal  Director  of  Marketing,  Siemens  Healthineers• 8  years  experience  in  healthcare

• Stanford  University  strategy  and  marketing  graduate

• MBA  with  focus  in  go-­‐to-­‐market  strategy

Francisco  MiguelTrigueiros

Comprehensive  and  Experienced  Advisory  Board

13

BRIDGING THE SCIENCE-TO-PRODUCT GAP- ENERGY TECHNOLOGIES

• Hard  tech  innovation  takes  significant  risk,  capital,  and  time• Supported  by  the  DOE  EERE  Advanced  Manufacturing  Office• Two  year  fellowship  that  supports  scientists  developing  energy  technologies

COHORT  INNOVATORS  RECEIVE:A  two  year  fellowshipAccess  to  world-­‐class  research  facilities  and  expertiseTraining,  mentorship  and  networking.

Use Unconventional Development Structures

National Institutes of Health joins Medicines Patent Pool for HIV therapeutics (http://www.medicinespatentpool.org/about/)

Johns Hopkins MBA teams review NIH / FDA technologies in “Discovery To Market” Course

Leverage Existing Academic Programs

UC Berkeley: Cleantech 2 Market: Haas school of business Evaluates markets for energy technologies

Work With Unconventional Partners Such As NGOs

• MedAfriVac® – meningitis vaccine for African market

• >100M doses sold to date.• NIH license to PATH • Manufactured under sublicense to Serum Institute

(India)

The Science Fellows Program: On campus consulting opportunity for postdocs

Benefits  to  postdocs-­‐ Gain  experience working  with  startups.-­‐ Get  exposure  to  potential  employment  opportunities-­‐ Add  work  experience  to  your  resume-­‐ Receive  a  letter  of  recommendation  from  a  startup-­‐ Receive  satisfaction  of  helping  a  startup  succeed

Benefits  to  Startups-­ Free access  to  expertise

-­‐ Help  with  writing  grant  applications,  trouble  shooting,  technical  support

-­‐ Try  before  you  buy:  Future  employees

-­‐ Receive  a  letter  of  recommendation  from  a  startup

Hybrid  Accelerators

Acknowledgements

• Suzhou  International  Elite  Week/Suzhou  Industrial  Park

• University  of  California,  Berkeley