Organic Development of a Student Run Accelerator at the University of Michigan

Aileen Huang‐Saad, Ph.D., Center for Entrepreneurship

Jason Bornhorst, U‐M Alumni, Computer Science Department

Thomas H. Zurbuchen, Ph.D. College of Engineering

Tony Grover, RPM Ventures/Zell Lurie Institute

Marc Weiser, RPM Ventures/Center for Entrepreneurship

Agenda

• U‐M Center for Entrepreneurship Evolution

• RPM10 Program – First round

• Post ‐ RPM10dklk

• RPM10 Round 2 & Evolution of TechArb

• Where do we go from here?

October 2007

http://cfe.engin.umich.edu/

“…innovation and entrepreneurship can help U-M students differentiate themselves in the global economy…

CEEPS Recommendations

1. Entrepreneurship Certificate Program

2. Distinguished Innovator Seminar

3. COE Student Entrepreneurship Center

4. Entrepreneurial Opportunities Fair

5. Support COE Student Entrepreneurship Group

6. Simplification and Clarification of Student Intellectual Transfer Processes

7. Entrepreneurship Grants Program and Entrepreneurial Fellowship Competition

8. Anchoring in the College of Engineering

9. Entrepreneurial Environment

http://cfe.engin.umich.edu/

Center for Entrepreneurship

The Center for Entrepreneurship exists to empower students, faculty

and staff at the University of Michigan to pursue entrepreneurial achievements that improve people’s

lives and drive the economies of Michigan, the Nation and the world.

Established Winter 2008

http://cfe.engin.umich.edu/

Summer 2008 ‐ RPM10

• Seeking brilliant, entrepreneurially minded students.  

• From idea to prototype in 10 weeks.– Co‐location

– Mentoring

– Capital

• No business plan required.

RPM10 is an innovative summer intern program for University of Michigan students with a great idea for a technology-based start up company. During the 10 summer weeks, student teams will develop their idea into a working

prototype and lay the groundwork to launch their start-up.

The program is focused on starting a company and building your product.

2008 RPM10 Teams

TROUBADOUR MOBILE, Inc.

And Then What?  …

• Academic year

• Loss of co‐location

• Result…

• 22 members representing 13 companies

2009 RPM Teams

2009 RPM10 Lecture Series Topics

• Overview of entrepreneurial experiences

• Accounting overview

• Software development methodologies

• Project management

• Innovation

• Intellectual property

• Entrepreneurial lessons learned

• Search engine marketing

• State funding and resources for early stage tech startups

Summer 2009:  TechArb

TROUBADOUR MOBILE, Inc. duazie Code

TechArb Video

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TechArb 2009

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EngineeringSchool of InformationLSAMusic and TheatreBusiness

Funding Distribution

TechArb Student Ventures Funding ($K)Mobil33t  0Carrier Mobile 5Roomations 14Phonagle 20Shepherd Intelligent Systems 28CrowdClarity 27Backyard Brains 47The Wojo Group 0MyBandStock 20QuazieCode 0Troubadour Mobile 25

Total Student Generated Funding = $186,000K

Funding Sources

TechArb FundingMORE Program ($11,000)

Dare to Dream: An idea competition by the ZLI and CFE ($22,000)Marcel Gani Internship: A ZLI entrepreneurial internship competition 

($13,000)Michigan Business Challenge:  A ZLI business plan competition ($2,200)

RPM10 Program: The CFE entrepreneurship competition ($70,000)Kauffman Post‐Doctorial Fellowship ($45,000)

SPARK: An Ann Arbor based business accelerator ($16,800)Center for Entrepreneurship: small specific support of various tasks 

($6,000)

Impact

• 10 week summer experience

• 37 students

• 27 press mentions

• 1 live iphone application – DoGood– Within 1 month, 43,000 iPhone Users

– Featured in Forbes and New York Times

• 1 music video

• 4 mobile applications in development

Value

• Alternative Work Environment– Free of Distraction

– Attitude

– 24/7 Access

– Comfort

– Conference Rooms/Offices

• Entrepreneurial Community– Group Meetings/Feedback Fridays

– Guest Speakers

AY2009‐2010

• University of Michigan pilots 2 year continuation of TechArb

• Co‐sponsored by:– Center for Entrepreneurship

– Zell Lurie Institute

– Office of Vice‐President of Research

• Rent and Internet

Going Forward

• TechArb Graduation

• Formalization of Program

• Post TechArb

TechArb Onboarding

• 6 month intensive session for 12 companies• Each company will go through an orientation around:

– How to engage with each other and the community (IP)– Legal orientation (how to form an LLC)– Finance – (introduction to quick books) – 12 workshops on topics from business development to how to network to marketing

– Every other week the companies will participate in feedback sessions to learn about the growth of their companies

Where do they go from here?

All TechArb graduates will have the opportunity to move to a local entrepreneurial space with support services

• TechBrewery – High Tech shared work space ($50/mo for desk)

• Workantile – Shared work space ($100/mo for desk)

• SPARK Incubator ($95 for virtual workspace) 

• All graduates will receive the business development services through SPARK– Access to Expert Resource Board

– Invitation to monthly tenant lunches around key topics.

– Free admittance to Entrepreneur Education 1.0 and 2.0 dinner series

– Free drop‐in usage of SPARK East during business hours.

Summer 2010 TechArb Companies

• CWIC Technologies• Fibril Scan• Food Waste Energy• GivingGrows• Heart Graffiti• Joe• June Energy • Resonant Capital, LLC• Sentient Wings • SiCAR• Team Seton• Theoryville

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Where are they now?

TROUBADOUR MOBILE, Inc. duazie Code

DoGood

2:42

Thank You