Transcript Presentation to City Council

Business Technology
Incubation/Acceleration
By Neil vanHooydonk
The Law of The Wild
By Rudyard Kipling
AND THIS IS THE LAW OF THE WILD
AS TRUE AND AS BLUE AS THE SKY
AND THE WOLF THAT KEEPS IT WILL PROSPER
BUT THE WOLF THAT BREAKS IT WILL DIE
LIKE THE VINE THAT CIRCLES THE TREE TRUNK
THIS LAW RUNNETH FORWARD AND BACK
THE STRENGTH OF THE PACK IS THE WOLF
AND THE STRENGTH OF THE WOLF IS THE PACK
Definitions
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Incubate
vb. to keep (as an embryo) under
conditions favorable for
development
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Accelerate
vb. To bring about earlier : to speed
up
The Goals of Incubation
The goal of business/technology incubation is to provide:
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A supportive environment where new
entrepreneurs receive training in
business management skills &
marketing
Buffered from stiff market forces with
below-market rent, reduced fees for
services & a greater access to seed
capital
Have an impact on both the client
firms & the local economy
Types of Incubators
based on their primary sponsors
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Not-For-Profits:
– University & college-sponsored
– Provincial/local governmentsponsored (or publicly-sponsored)
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For-Profits:
– Private corporate
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Hybrids
– Local government & private subsidy
Types of Incubators
differ by the priorities set forth
by their funding agency
To develop firms & to
stimulate entrepreneurship
 Pursue job creation
 Technology development
 Product development
 Profit
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Types of Incubators
differ by the priorities set forth
by their funding agency (continued)
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Economic diversification
University research commercialization
Business investment opportunities
Tax base expansion for local
government
Development of a core of local hightechnology companies
Venture capital development &
neighborhood revitalization
6 Dimensions of an Incubator
1.
2.
3.
4.
5.
6.
Facilities & location
Shared services
Tenant entry & exit criteria
Mentoring & networking
Funding & support
Incubator governance
Best Practices
related to the 6 dimensions
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Incubator min. 30kft2 of rental space
Room to expand in order to be able to
generate enough income to be selfsustainable
Flexible space to manage tenants’
variable needs
Min. 10 in-residence
Best Practices
related to the 6 dimensions
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Proximity to university(ies), or
research labs
Located in a high-tech facility w
telecommunications infrastructure
Actual & Virtual Incubation: Habit of
enrolling non-resident clients as well
as resident clients
Best Practices
related to the 6 dimensions
Selection Committee to prescreen potential
clients: Selection criteria includes:
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Homology between incubator & client’s
needs
Business Plan with Pro Forma
Technology sophistication
Potential growth & job creation
Best Practices
related to the 6 dimensions
Selection Committee to prescreen potential
clients: Selection criteria includes:
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R&D intensity
Occupational mix of the management
team
Practical experience
Personal commitment
Best Practices
related to the 6 dimensions
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An Advisory Committee for each tenant
company
Opportunities for tenants to network
among themselves, industry, & with
contacts of the advisory/mentor group
members
The funding from private, public or
government organizations to support the
heavy costs of the real estate component
Best Practices
related to the 6 dimensions
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The Executive Director (manager) is a
highly motivated visionary individual whose
goal is to see his/she tenant firms succeed,
who has been-there-&-done-that
successfully
Boards of Directors are responsible for
policy & not day-to-day operations
(manager) & bureaucracy is kept to a
minimum
The incubator is focused more on support
programs than on space or physical
infrastructure
Factors Related
to Incubator Failure
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Costs of the facility (build-out, rent,
utilities, maintenance, building
construction)
Low occupancy in the building
Tight cash flow
Lack of focus on the programs
A feasibility study & a careful situation
analysis is a must before a new incubator
facility is created
Data from the National Business Incubator Association (NBIA) study of 40
incubators that ceased to operate in the US
Do Technology Incubators Work?
Characteristic
Square Footage
# of Tenants
# employees/tenant
Average
38,988
13.9
5.1
# of graduate firms/yr
# of graduates per
incubator employee
1.7
30.4
% of firms remaining in
the community
86
Sources: Culp (1996), Wolf et al. (1999 and 2000)
Do Technology Incubators Work?
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Incubating technology contributes to
the strengthening of our national
system of innovation
Public sector cost per direct job
created ranges from $3k to $12 per
job
~20% Differential
Incubator Characteristics
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63.2 % large urban areas
82.5% age 4 –10 yr.s
83% assistance in obtaining funding
94% services to non-resident clients
67% of client companies remain 1-3 yr.s
54% of graduates are still in existence
19% merged or sold since leaving
26.5% discontinued after leaving
How Incubators Are
Funded
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Gov./private/university subsidy
Sponsors (law firms, accounting
firms,etc.)
Portfolio Companys’ Fees/Rent
Portfolio Companys’ Equity
– Trigger event
– Longterm ROI
– High Risk
What is Incubation all about!
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1) Training/education center;
environment of entrepreneurship;
develop managerial, business, &
leadership skills;
What is Incubation all about!
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2) Rapidly plug-in to an entire
community, surrounding them
with services & expertise; make
connections to strategic partners
& capital providers;
What is Incubation all about!
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3) Roadmap: A rigorous, systematic,
proven program of mentoring & oversight
by in-house experts & advisory teams which
increases their probability of success; &
• 4) in the process creating economic
growth & benefit for humanity.
The Commercialization
Process Model (Roadmap)
The Concept Phase
– Stage 1: Investigation
• The Development Phase
–Stage 2: Feasibility
–Stage 3: Development
–Stage 4: Introduction
• The Commercial Phase
– Stage 5: Growth
– Stage 6: Maturity
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The Commercialization
Process Model (Roadmap)
The Concept Phase
– Stage 1: Investigation
• The Development Phase
–Stage 2: Feasibility
–Stage 3: Development
–Stage 4: Introduction
• The Commercial Phase
– Stage 5: Growth
– Stage 6: Maturity
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Roadmap: Intentional
Systematic Evolution Process
Phase
Bus.
(Stages)
Concept
Phase
Dev. Phase
Commercial Launch
Phase
Tech.
Fin.
Quality
/Reg.
Services Specific to
Medical Technology Incubation
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Regulatory
Medical Advisory Network
Strategic Alliances
Business Technology Incubation
Support/Services/Networks
Space
& Shared
Services
Strategic
Alliance
Network
Program Coaching
Company
Training
& Forums
Capital
Stakeholders Providers
Network
Service
Providers Commercialization
Program
Network
Medical
Quality/ Advisor
Regulatory Network
Affairs
R&D
Alliance
DFW Metroplex+
Incubators
StarTech Early Ventures
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Located In Richardson, TX
VC Funded
STARTech has invested $29.5 million in
over 40 companies.
These companies have gone on to raise
$832 million in venture capital and private
equity
StarTech Early Ventures
http://startechev.com/
NTEC
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North Texas Enterprise Center for Medical
Technology
Private-public
MedTech Focus
Larry Calton, Ex. Dir.
Hall Office Park
2611 Internet BLVD, Suite 109
Frisco, TX 75034
214-618-6832
http://www.ntec-inc.org
NTEC
BMC
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Biotech Manufacturing Center of Texas
1704 Enterprise Street
Athens, Texas 75751
Phone: (903) 677-0835
Fax: (903) 677-0674
Gary San Miguel
[email protected]
www.bmc-texas.org
BMC... The Biotech Manufacturing Center of Texas
Welcome to the Biotech
Manufacturing Center of
Texas...
Home Page
About The BMC
BMC Services
Extrusion Facility
Molding Facility
Device Design & Machining
Clean Room / Pad Printing
Contact The BMC
Growing companies and building careers...
The Biotech Manufacturing Center of Texas is a unique,
innovative manufacturing medical facility and incubator, FDA
registered, that will exceed your expectations for quality
extrusions, injection molding, contract clean room
manufacturing, project management, product development,
research & development, and clear-cut savings. Our on site staff
of experienced medical device specialists, business counselors,
and marketing
consultants, providing total resources for your success, thus
taking your device concept to market.
Contact us today at 903-677-0835…
BMC's Multi-Lumen Profile Extrusions... Please click on the picture for an enlarged
view.
BMC... The Biotech Manufacturing Center of Texas
Home Page
About The BMC
BMC Services
Extrusion Facility
Molding Facility
Device Design & Machining
Clean Room / Pad Printing
Contact The BMC
BMC's Multi-Lumen Profile Extrusions... Please click on the picture for an enlarged
view.
Roadmap
TechFortWorth
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Public-private partnership of the
University of North Texas Health
Science Center at Fort Worth, The City
of Fort Worth, and the Fort Worth
business community
Darlene Ryan, Ex. Dir.
1120 South Freeway
Fort Worth, Texas 76104
P: 817.339.8968, F: 817.810.0167
http://[email protected]
Research Valley Innovation Center
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RVIC is a science & technology incubator
Bryan College Station, TX
The Research Valley Partnership, The
Texas A&M University System’s Office of
Technology Commercialization, Texas
A&M University, and The Texas A&M
University System Health Science Center
James Lancaster, General Manager
979.260.1755 ext. 101 [email protected]
http://www.rvic.org
Go North Young
Entrepreneur
…Go North!
Un. of Oklahoma Office of
Technology Development (OTD)
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Spinoff Companies: since 1998, has
created 30 companies, generated
>$65M in capital, >$10M in cash &
$20M in est. equity value for the
University
i2E, Inc.
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Private not-for-profit
Located in Okla (@ Presbyterian Health
Foundation Research Park) & Tulsa
Access to Capital:
– OCAST Technology Business Finance Program
(TBFP)
– Enterprise Oklahoma Venture Fund (EOVF)
– Statewide business plan competition for college
students: $100,000 in cash prizes
i2E, Inc.
Presbyterian Health Foundation
Research Park Incubator
840 Research Parkway, Suite 250
Oklahoma City, OK 73104
405/235-2305
Contact: Greg Main
http://www.i2e.org
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Intellectual Asset Management, Shane Lashley, CoFounder
– IP Worthiness System
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Neil vanHooydonk, Dir. Medical Innovations
– Roadmap For Transformation Solutions
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For-Profit, Private Incubator
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17300 Preston Rd. (on McCallaum), Suite 300
Dallas, 75252
http://www.iplaunch.com/
214-438-1100
Neil’s Top 10 Reasons
To Enter An Incubator
1.
2.
3.
4.
5.
6.
7.
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9.
10.
$ UNDER THEIR CONTROL
Successful Track Record
Been-There-Done-That Staff
Roadmap: Internal Entrepreneurship Training
$ Within Their Sphere Of Influence
Homology: Focus-Fit-March
External Mentoring
Rapid Plug In To Service Providers
Executive Suite
Location
Neil’s Top 10 Reasons
To Enter An Incubator
1.
2.
3.
4.
5.
6.
7.
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10.
$ UNDER THEIR CONTROL
Successful Track Record
Been-There-Done-That Staff
Roadmap: Internal Entrepreneurship Training
$ Within Their Sphere Of Influence
Holology: Focus-Fit-March
External Mentoring
Rapid Plug In To Service Providers
Executive Suite
Location
Q&A
Neil vanHooydonk
Mobile: 214-642-9905
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has three decades of experience in managing & mentoring product
development from concept to R&D, through clinical studies and regulatory
approval to commercialization in national and international startups and
multinational medical device companies.
was a medical physicist in two major university medical centers
was Marketing Planning Manager for Phillips Medical Systems
has consulted to GE Medical, Toshiba, Siemens, and Philips Medical Systems
was the Founding Executive Director of the North Texas Enterprise Center for
Medical Technologies (NTEC) in Frisco, TX
is an internationally recognized expert in government regulatory affairs and
sat on the Board of Directors of the National Electrical Manufacturers
Association (NEMA).
was a member of the founding team of the Medical Device Action Alliance
(MDAA) now part of the Greater Dallas/Fort Worth Chamber of Commerce
was President of Medevco, Inc., Dallas, TX, a start-up focusing in obstetrical
technology.
was CEO of Cryodynamics, a start-up with which developed a minimilly
invastive cryoablation technology, which sold the IP to Medtronixs and
Sanarus