university of wisconsin- madison new business startup initiative allen j. dines assistant director...
TRANSCRIPT
University of Wisconsin-Madison
New Business Startup Initiative
Allen J. DinesAssistant Director
Office of Corporate Relations
May 2006
Slide 2 May, 2006 Prepared by Allen Dines, Asst. Dir. Corporate Relations
Madison: a “Hotbed of Biocapitalism”
• Some highlights about Madison from Forbes Magazine (May 2004):
– In the past 10 years, 120 new tech companies employing 8,000 people
– Average salary $60,000. 2% unemployment vs. 5.5% for country.
– University employs 17,000 but helped create 70,000 jobs, generating $4.7B in direct and indirect output. (NorthStar Economics)
– 2% of Madison’s population hold advanced degrees – the highest concentration of advanced degrees in the country
Slide 3 May, 2006 Prepared by Allen Dines, Asst. Dir. Corporate Relations
UW Research and Company Formation Metrics
• 235 companies spun out of UW-Madison*• Aggregate gross revenues exceed $1billion• 98% still in Wisconsin• About 50% have received professional investment• Examples of wealth created by local startups:
– Bone Care > Genzyme ($600 mil)
– Tetrionics > Sigma Aldrich ($85 mil)
– Pan Vera > Aurora/Invitrogen ($90 mil)
* Source: P. Z. Sobocinski, Creating High Tech Business Growth in Wisconsin, 1998, updated, 2005
Slide 4 May, 2006 Prepared by Allen Dines, Asst. Dir. Corporate Relations
Why License University Technology to Startups
• Many technologies are too early or risky to attract established companies
• Inventor interest
• Promote local economic growth
• Promote ties to local hi-tech business for sponsored research
• Possible financial rewards
Slide 5 May, 2006 Prepared by Allen Dines, Asst. Dir. Corporate Relations
Ingredients for Startup Business Creation
Technology Capital
Management
Implementation
Plan
Slide 6 May, 2006 Prepared by Allen Dines, Asst. Dir. Corporate Relations
Wisconsin Resources for Startup Creation
Technology Capital
Management
Implementation
Plan
Slide 7 May, 2006 Prepared by Allen Dines, Asst. Dir. Corporate Relations
Models for University Startup Development
Hands-in-pocket: Traditional policies and practices
Hands-Off: Policies / practices that encourage start-ups
Hands-On: University takes active role in forming the startup as a licensee
Up to your Elbows: University takes active formation and operational role (investment, incubation, management)
Slide 8 May, 2006 Prepared by Allen Dines, Asst. Dir. Corporate Relations
Startup Development at UW Madison: A Blend of “Hands-on” and “Hands-off”
Flexible Licensing Terms
Progressive
University Policies
Business Developmt Assistance
Assist in Recruiting Talent
Assist in Recruiting Funding
Participate in Business Operations
Direct Investment
“Hands-in-Pocket”
“Hands-Off”
X X x x x
“Hands-On”
X X X X X
“Up-to-your-Elbows”
X X X X X X X
Roles in Formation Roles in Operations
Slide 9 May, 2006 Prepared by Allen Dines, Asst. Dir. Corporate Relations
The players in UW-Madison Startup Business Development
• Office of Corporate Relations– Assists startups with business connections – Provides faculty/staff with single point of entry access to UW resources– Overall program focus, integration and communications
• WARF - Patents, licensing, guidance, leadership• University Research Park
– Encourages partnerships between business and UW researchers – Provides a place to grow for UW-related businesses
• School of Business– Weinert Center for Entrepreneurship – Business Technology Development Institute
• Campus-wide resources – UW Technology Entrepreneurship Cooperative– Wisconsin TechSearch– Entrepreneurship Association
Slide 10 May, 2006 Prepared by Allen Dines, Asst. Dir. Corporate Relations
Resources at UW-Madison to help Startup Businesses
Pre-startup initiative Post-startup initiative
Assistance Consultation/referrals (OCR)
Gap funding (I&EDR)
Short courses (TBDI)
Licensing assistance (WARF)
Planning/analysis (WAVE)
Business incubation (URP)
Mentoring program (pending)
Micro-grants program
UW Library access point at Univ. Research Park
Events Tech Transfer Seminar Series (Graduate School)
High Tech Happy Hour (OCR, et al)
Entrepreneurship Association
Ad Hoc events (various)
Early Stage CEO Breakfasts
First Look Investor Forums
WARF Gilson Series Seminars
WARF Gilson Researcher Roundtables (Nov05)
Publications Entrepreneurship resources website (OCR)
SBIR/STTR support website (DOC)
Guide to new business ventures UW-Madison
Inventing Wisconsin DVD
Slide 11 May, 2006 Prepared by Allen Dines, Asst. Dir. Corporate Relations
WARF Startup Development Support
• WARF/OCR Startup Initiative Partnership
• Disclosure reviews to identify startup opportunities early– Historical mechanism: Inventor/faculty driven
– Current focus: market-opportunity driven
• Licensing– Standstill pending license
– Equity in lieu of cash license deals
• Follow up monitoring/support• Gilson entrepreneurship seminar series and research
roundtables
Slide 12 May, 2006 Prepared by Allen Dines, Asst. Dir. Corporate Relations
The UW-Madison is Only Part of the Solution
State-wide Institutions
- Department of Commerce- Wisconsin Technology Council- Wis Entrepreneurs Network- Wisconsin Angel Network
University Resources- OCR- WARF - URP- UW-TEC- WAVE- TBDI- TechSearch
Industry InfrastructureService providers to Hi-tech companies -Legal -Accounting -Business planning -Search/recruiting -Insurance -Public relations - Facilities/equipment - Prototyping shops
Financial Resources- Friends and family- Grants (SBIR/STTR)- Angels- Venture Capital- Corporate Partnering- Banks
Networking OrganizationsWIN – WBMA –Accelerate Madison
Slide 13 May, 2006 Prepared by Allen Dines, Asst. Dir. Corporate Relations
Working Conclusions on How to Foster Startups
• Connect faculty inventors early with– Management-savvy risk-takers (entrepreneurs)– High-tech-savvy service providers
• Focus on the business opportunity, not the technology innovation
• Cultivate angels and VCs seeking seed stage investments
• Manage faculty/inventor expectations
Slide 14 May, 2006 Prepared by Allen Dines, Asst. Dir. Corporate Relations
In summary…We need to move from this
Technology Capital
Management
Implementation
Plan
Slide 15 May, 2006 Prepared by Allen Dines, Asst. Dir. Corporate Relations
……to This
Technology Capital
Management
Implementation
Plan
Slide 16 May, 2006 Prepared by Allen Dines, Asst. Dir. Corporate Relations
For more information:
• My Email: [email protected]
• Startup Guide: http://www.corprelations.wisc.edu/docs/startupguide.pdf
• OCR Entrepreneur’s Page: http://www.corprelations.wisc.edu/entrepreneurs.html
• WARF Startups Webpage http://www.warf.org/inventors/index.jsp?cid=16
• Graduate School Commercialization Grants http://info.gradsch.wisc.edu/research/techtrfgrants/grantopps.html
• SBIR/STTR Information http://www.wisconsinsbir.org/
• Regional Hi-Tech News, Commentary & Analysis http://wistechnology.com