Transcript Slide 1
Investor Perspective Federal Laboratory Consortium Agenda • • • • Why me- background Trial balloon Innovation economics Relevance to fed labs US Economy 101 Small Businesses • Small businesses economic engine – Employ half of all private sector and more than half GDP – Net job growth 4x small businesses to large businesses US Economy 101 R&D – Since 2000- $1.17 trillion – AUTM data indicates 1 startup per $___M in R&D funding – ITIF $20B R&D construction, 402 one year jobs $49K per 40-62k job – Translational research $1M = 36 one year jobs (external research labs, engineering and scientific services, etc. but a few of the jobs may be placed significantly down the line i.e., local service economy jobs such as food service). US Economy 101 Venture Capital • 9% private sector employees and 18.9% GDP • Employment growth- 3.6% annual growth rate v. 1.7% private sector • Sales growth CAGR 11.8% v. 6.5% • 1 job for every $12.3K • Average base salary $70-90k v. national salary average $32k • 2000-2003 national employment shrank -2.3% but 6.5% jobs growth for VC companies- recession proof • Sustainability • VentureOne report1999 companies 78% still in business • 31% of all startups in business after 7 years State of US Venture Capital • State of venture capital July 22, 2009 Senator Mark Warner asked Chairman Christopher Dodd if Congress could “take a hearing or some examination of what we as the congress could do to look at the state of lending in small business and startup business, not just existing small businesses but how we get that next step of innovation because that financing market has disappeared. A lot of folks in that spectrum say they don’t see any signs of it returning. That is totally broken.” • Is anyone filling this void? • CVC up 33% in last 5 years • What is % licensing- big, small, VC? • What does that mean to you? Federal R&D $$ resulting in startups $150,000,000,000 1,948 NEWCOS 19 Venture Backable NEWCOS How to Make More Venture Backable? • Easier to identify • Visibility • Marketing • Business case- SWOT • Easier to license • IP • Cost • Paperwork • Incentivize licensing? How to Make More Venture Backable? • Next gen or skip gen- 10x improvement in performance and/or pricing • What is market and is G2M achievable • Receptive to new CEO • Capital needs to get to market • Pilot possible? Challenges of startup selling to US Govt CAGE code DUNS # NIAP CCR FAR FOCI CCR SDV GWAC IDIQ Clearance FIPS GSA Schedule Thank You Roger London Chairman American Security Challenge www.AmericanSecurityChallenge.com Innovation Director Chesapeake Crescent Initiative www.thechesapeakecrescent.com 6031 University Blvd. Suite 180 Ellicott City, Maryland 21043 [email protected] 410-340-5335