Upload
3helix
View
404
Download
0
Tags:
Embed Size (px)
Citation preview
Papers, Patents and …
Jack Brittain, PhDPierre Lassonde Presidential Chair
University of Utah
http://www.techventures.utah.edu/
Products
Economic Significance“The economic significance of the research university goes far beyond its role of education and training. For several decades, university research has increasingly formed the foundation of significant technological advancements. These technologies enter the marketplace through research collaborations with industry, licenses, and to an increasing extent, university-driven efforts to turn new ideas into start-up companies.”
Jan Crispin, Senior Research Economist. The Economic Impact of Startup Companies and Invention Licensees Originating from Research at the University of Utah.Bureau of Economic and Business Research, 2011.
Technology Value Curve
MARKET EXPANSION
COMMERCIALLAUNCH
PROTOTYPEPROOF OF CONCEPT
IDEA
Commercialization Stage
Where Universities Traditionally Add Value
Spinoff ValueGeneration
• Prototype • Incorporation• Logo/website• Corporate Secretary• CFO Solutions• Umbrella Insurance• Market research• Grants programs
Venture Bench Services
Small-Light-Fast Money
• Small amounts with immediatemilestones (4 months or less) money chases success as milestones accumulate
• Light regulation and administration little administrative overhead in making awards universities recommend accountability is for university’s portfolio results
• Fast decisions sustain technology development momentum, facilitate continuity of effort
Spinoff Development
PROTOTYPE
Commercialization Stage
Phase 5Long Term
Growth
Phase 4MarketEntry
• Marketing/Sales
• StrategicPartnerships
• New Products &IP in development
Phase 3Operating• Customers
Testing Product
• Investors• Key
Managers• Board of
Directors• Bank Credit
Phase 2Business• Business
Plan• Product
Validation• Product
development grants
• Angel & Seed Investors
Phase 1Formation
• Legal Formation
• Technology License
• Product Development
• Logo, web• Product
development grants
COMMERCIALLAUNCH
MARKETEXPANSION
Spinoff Value Generation
$5,000Micro Grant
$35,000 FoundationTechnology CommercializationGrant (2 times)
$40,000 UtahTechnology Commercializationand Innovation Program (3 times)
Up to $1.2 MillionFederal SBIR/STTR
$50,000 FoundationVirtual Incubator Program Grant
Up to $500,000Seed Funds, e.g. Kick Start
Total PotentialStartup Funding
$1,945,000($1,445,000 isGrant Funding)
Start-ups
Accelerators, Incubators and Start-ups
1970-2005 (36 years): 79 Start-ups• Average 2.2 per year
2006-2012 (7 years): 144 Start-ups• Average 20.8 Start-ups
1. 2005 Micro Grants2. 2006 Venture Bench3. 2009 Medical Device Accelerator4. 2010 Software Development
Center5. 2011 StaC Student Technology
Assistance Center6. 2011 DOE Energy
Commercialization Center7. 2012 Hospital Innovation Center
Tech Ventures TeamGlenn Prestwich
Presidential ProfessorPresidential Special Assistant
Entrepreneurial Faculty Scholars
Doug Lloyd/David DolanSerial Entrepreneurs
Entrepreneur in Residence
Commercialization
Troy D’AmbrosioSeasoned Entrepreneur
Raised CapitalDirector of Education Programs
Bryan Ritchie, Director and Associate VP25 fulltime professionals + 30 student interns
Technology Commercialization/Commercial ResearchResearch
Company
Seed Funds• KickStart• UpStart• Lineagen• Vendice• Navigen• Founder Fund• UVF
Ron Weiss, MDretired ARUP CEOFaculty Outreach
$300 millionfederal research
300 “Inventions” 120 Potential Licenses30 Potential Companies
≈420 faculty15% total faculty 5-8 faculty case load
> 2600 students > 100 business people
>$100 million
Software Dev CenterMedical Accelerator
Energy Comm. CenterVenture Bench
>$1.2 million
Leading Indicator: Investment
Grants as a Foundation for Investment
2005 2006 2007 2008 2009 2010 2011 2012$0
$200,000,000
$400,000,000
$600,000,000
$800,000,000
$1,000,000,000
$1,200,000,000
$1,400,000,000
$1,600,000,000
Cumulative Grants Funding Cumulative Investment Funding Value Private Companies
Net Results• Spanning Valley of Death
• The Gully of Inconvenience
• Leverages investor dollars• Community engagement
• Student Opportunities: Pole Vault Media
• Entrepreneurs In Residence• Commercialization Advisory
Board/Company Collaborations
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
0
5
10
15
20
25
Start-ups
University Inventors, Startups, & Revenue
Revenues
FY 2004
FY 2005
FY 2006
FY 2007
FY 2008
FY 2009
FY 2010
FY 2011
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
$80,000,000
$90,000,000
Commercial Research Commercial Clinical Research
Licensing
FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 20110
20
40
60
80
100
120
140
160
180
Repeat Inventors New Inventors
Faculty Inventors
Total Mission Integration
• Educational programs > 2600 students Defining educational experience Huge positive for faculty
• Donor gifts over $35 million Lassonde Center Sorenson Discovery Center Annual sponsorships over $1 million
• University Venture Fund manages $18.5 million in Fund I Fund II target is $30 million
Returns from Commercialization
• Dollars are in– Equity and royalties– Research back to the University– Donations and other support
• Industry-sponsored research yields more than license income
FY 2010Total External
Research Funds Spent in Utah
OperatingSpinoff
CompaniesTotal
Employment[1]
TotalAnnualPayroll
Total TaxContribution[2]
External ResearchFunding (total =$451 million)
$388 million 8,906 $378 million $33.4 million
TechnologyCommercialization(19 new in FY10)
150 19,818 $947 million $96.2 million
Total $388 million 150 28,724 $1.3 billion $129.6 million
[1] Bureau of Economic and Business Research, 2010 and 2011. Includes direct, indirect, and induced employment.[2] State and local taxes.
Utah Economic Impact fromUniversity of Utah Research
What Worked for Utah• Leverage/OPM
– Grants– Donors– Effort
• Fund Critical Paths– Monitor milestones– Do not fund “no results”– Post performance funding:
money chases success
• Outcomes depend on shots on goal– control strangles speed and momentum– place small bets with immediate milestones
• Capital formation is about outcomes
Reinvented University Commercialization
• Changed from cost recovery to investment model– Cost recovery is inevitably a failure– Changed the nature of our work to the positive
• Commercial sponsored research = sustainable business model
• Total mission integration = strategic engagement
• Evolved structure
Universities and the
Innovation Ecosystem
“Universities do not get enough credit for the fact that as players in our innovation ecosystem, they’re willing to gamble on cash-strapped startups. At the end of the day, who else is offering to pick up the tab? … Warts and all, universities remain willing to pay patent costs to support expensive and increasingly sophisticated IP strategies for startups who will likely never be able to pay them back.” - Melba Kurman, Triple Helix Blog, 25 Feb 2011