October 5, 2012 - Foley & Lardner...A New Innovation Pathway Venture Investment University Research Successful Company • Enable Innovation • Bridging-the-Gap Funding • Mentor
All of us nowadays have to think globally as well as locally. I have described the somewhat unique ecosystem we have been able to build up around QB3. Is it scalable? Could we include other research clusters or countries in our ecosystem?
Today’s environment
Presenter
Presentation Notes
All of us nowadays have to think globally as well as locally. I have described the somewhat unique ecosystem we have been able to build up around QB3. Is it scalable? Could we include other research clusters or countries in our ecosystem?
Today’s environment
Presenter
Presentation Notes
All of us nowadays have to think globally as well as locally. I have described the somewhat unique ecosystem we have been able to build up around QB3. Is it scalable? Could we include other research clusters or countries in our ecosystem?
Today’s environment
Presenter
Presentation Notes
All of us nowadays have to think globally as well as locally. I have described the somewhat unique ecosystem we have been able to build up around QB3. Is it scalable? Could we include other research clusters or countries in our ecosystem?
Winning strategies –investment?
Venture Investment
University Research
Start-up Company
Successful Company
Presenter
Presentation Notes
This seed funding however eventually led to a great and profitable company.
Winning strategies –investment?
University Research
Venture Investment
Start-up Company
Successful Company
Presenter
Presentation Notes
This seed funding however eventually led to a great and profitable company.
Half of the VC funds in the Kauffman Foundation portfolio fail to return investor capital Net Return Number of Multiple Funds <1x 50 1x-<2x 33 2x-<3x 10 3x+ 6 Source: Kauffman Foundation VC portfolio analysis of ninety-nine VC funds, 1989–2011.
Winning strategies –investment?
Presenter
Presentation Notes
All of us nowadays have to think globally as well as locally. I have described the somewhat unique ecosystem we have been able to build up around QB3. Is it scalable? Could we include other research clusters or countries in our ecosystem?
A New Innovation Pathway
Venture Investment
University Research
Successful Company
• Enable Innovation • Bridging-the-Gap Funding • Mentor • Find incubator space • Provide start-up services
Presenter
Presentation Notes
We have been able to create such an incubator under the auspices of the organization I head QB3. I want to tell you a very little about QB3 but then go through each of these five characteristics in turn.
• Mentor
• Find incubator space
• Enable Innovation
• Bridging-the-Gap funding
• Provide start-up services
QB3’s Five Steps
Presenter
Presentation Notes
All of us nowadays have to think globally as well as locally. I have described the somewhat unique ecosystem we have been able to build up around QB3. Is it scalable? Could we include other research clusters or countries in our ecosystem?
All of us nowadays have to think globally as well as locally. I have described the somewhat unique ecosystem we have been able to build up around QB3. Is it scalable? Could we include other research clusters or countries in our ecosystem?
To rejuvenate it the city gave land to UCSF to build a new campus, including the QB3 building
Evolution of an Ecosystem
QB3 Incubator Network
Presenter
Presentation Notes
To rejuvenate it the city gave land to UCSF to build a new campus, including the QB3 building
Evolution of an Ecosystem
QB3 Incubator Network
Industry
Presenter
Presentation Notes
To rejuvenate it the city gave land to UCSF to build a new campus, including the QB3 building
Evolution of an Ecosystem
QB3 Incubator Network
Industry
Venture
Presenter
Presentation Notes
To rejuvenate it the city gave land to UCSF to build a new campus, including the QB3 building
Evolution of an Ecosystem
QB3 Incubator Network
Industry
Venture
Services
Presenter
Presentation Notes
To rejuvenate it the city gave land to UCSF to build a new campus, including the QB3 building
Evolution of an Ecosystem
QB3 Incubator Network
Industry
Venture
Services
Govt. Agencies
Presenter
Presentation Notes
To rejuvenate it the city gave land to UCSF to build a new campus, including the QB3 building
Evolution of an Ecosystem
QB3 Incubator Network
Industry
Venture
Services
Govt. Agencies
International Partners
Presenter
Presentation Notes
To rejuvenate it the city gave land to UCSF to build a new campus, including the QB3 building
A New Innovation Pathway
University Research
Successful Company
• Enable Innovation • Bridging-the-Gap Funding • Mentor • Find incubator space • Provide start-up services
Presenter
Presentation Notes
We have been able to create such an incubator under the auspices of the organization I head QB3. I want to tell you a very little about QB3 but then go through each of these five characteristics in turn.
Ecosystem Partners
University Research
Successful Company
• Enable Innovation • Bridging-the-Gap Funding • Mentor • Find incubator space • Provide start-up services
Innovators outside the Universities
A Newer Innovation Pathway
Presenter
Presentation Notes
We have been able to create such an incubator under the auspices of the organization I head QB3. I want to tell you a very little about QB3 but then go through each of these five characteristics in turn.
Invest selectively
University Research
Successful Company
Business Model
Innovators outside the Universities
$$$$
Presenter
Presentation Notes
We have been able to create such an incubator under the auspices of the organization I head QB3. I want to tell you a very little about QB3 but then go through each of these five characteristics in turn.
Closed at $11.3M
Invest in the Best
Limited Partners 80% profit return
Invest ($1M each)
20% profit return Replenish
Fund
• Select from incubator pool
Luke Evnin, PhD Managing Director MPM Capital
Ralph (Chris) Christoffersen, PhD Partner Morgenthaler Ventures
John Wadsworth, Jr. Managing Director Manitou Ventures
Fred Cohen, M.D., Ph.D. General Partner TPG Ventures and Professor, UCSF
Bill Ericson Partner MDV
Advisory Board
Presenter
Presentation Notes
We look closely at our pool of new companies to identify the ones we think are most likely to succeed. We then can fund them through our own venture fund, Mission Bay Capital. This is a small experimental fund, mainly to prove the concept. We raised it from Limited Partners who were expected to invest $1M each. They get the standard 80% of the profits. The remaining 20% comes back to QB3 to cover our expenses. We are guided in our investment portfolio by a highly prestigious group of advisors from most of the major San Francisco venture funds.
