harman building technology-based companies

8/2/2019 Harman Building Technology-Based Companies

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C O R N E L L S B I R W O R K S H O P

G A R Y H A R M A NJ A N U A R Y 19 , 2 0 10

Building Technology-BasedCompanies


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Entrepreneurial Activities

BioWorks Founder, former Acting CEO and ChiefScientific Officer.

Advanced Biological Marketing. 2000-present,Principal tech. developer, equity holder.

Terrenew, LLC. Founder and Chief Scientific Officer.

2005-presentICUS. 2008-present. Harman will conduct most of

the R&D program

Private lab for product development opening now.

Harman companies dont die, but they may morphinto something else.


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Revenues and the Valleys of DeathBuilding theBridges

G. Moo r eCr oss in g th e Ch a sm . Am a zon .


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How to Cross the Chasms

First, requires entrepreneurial scientist(s).

Need to recruit a compatible, DEDICATED team.

No money at first, must find people who are dedicatedand who find a way w/o salary. Need to be hungry andcompatible.

Technology evangelism. An full-time academic scientist cannot be CEO or

President.

Everyone needs skin in the game. Dedication of personal time, talent and money.

Direct cash, founder-backed loans

Early investors may be friends and familybanking onYOU.


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IP

Patent protection required for funding, protection ofinvestors.

Cornell inventors required to disclose patents toCCTEC.

Company grants pre-disclosure may give rights offirst refusal to sponsoring company thru OSPagreements.

CCTEC usually requires licensing company beforefiling that pays the expenses.

Royalties can be a significant source of income toinventors.


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Early marketing, part II

Must demonstrate value to customers, they must beexcited.

Early adopters likely to move on to the next newthing.

Must fix any flawsand they will be there. But, youdont get many chances.

Bellwether customers very important.

Dont forget Emediaviral visibility can be powerful.


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Production

Efficient, reliable production system AT ACOMPETITIVE PRICE must occur.

May be useful to start process, build a few customers,and improve manufacturing, even at an initial loss,

to obtain customer base. Production can be improved, and losses cant

continuegood accounting essential!

Likely to need partners that have equipment,technologies, knowledge lacking in start-up.

Dont forget costs of shipping.


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GRANTS

Small Business Innovation Researchall federalgranting agencies have these.

State fundinge.g., New York State Energy ResearchDevelopment Authority.

CAT (NYSTAR) grants to Cornell faculty, match fromNYS companies. Good source of matches is grants tothe companies that furthers product developmentwhile advancing knowledge and providing useful

products/NYS employment. Other direct funding to university faculty, companies

may be subcontractors if allowed.


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Current grant funding

Close to $1 million secured to date.

Grants to Cornell with Terrenew matching funds, Cornell

funding around $80K. USDA SBIR grant to Terrenew phase I $80K and $250K

phase II.

NY State Energy Research Development grant for removalof hydrogen sulfide to Terrenew--$190K.

NSF SBIR Phase IA to Terrenew for AgriMaster $150Kstarts 1/1/10. Phase IB, $50K. Phase II = $500K+.

USDA SBIR grants to Advanced Biological Marketingphase I $50K, Phase II $147 K.

Likely grant funding next two years = $1-2 million.


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Show me the money

NSF/EPA (similar for NIH, DoD, DARPA?) Phase I $150,000 for six months. Phase IB up to $50,000 Phase II $500,000 for two years. Phase IIB $250,000

Up to $950K total USDA $80,000 for eight months

$350,000 for two years For Cornell faculty: subcontracts 30% Phase I,

more for phase II. Must submit to OSP at the timethe company submits the SBIR proposal.


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National SBIR Meeting

Hartford, CN


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My company status

BioWorks

ABM

Terrenew

ICUS


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Why start a company?

For many, it is the joy of creating a new thingforacademics, publications may not be enough. Can be very

satisfying if your motivation/personality appropriate.

Can help fund academic research programsbridging thefirst valley of death.

You might make significant amounts of money (but noguarantee even if company is moderately successfulvisionaries may not be the ones who benefit).

Dedication and perseverance essentialif the door isclosed, find a window.

harman building technology-based companies

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