Michigan Entrepreneurs A Showcase of Entrepreneurship: Start-ups by U of M Students October 21, 2002 7PM Michigan Union

1. Michigan Entrepreneurs A Showcase of Entrepreneurship: Start-ups by U of M StudentsOctober 21, 2002 7PMMichigan Union Anderson Room D 3430 E. Jefferson Ave. #140Detroit, MI 48207313.205.3489www.mobius-microsystems.commanagement@mobius-microsystems.com Michael S. McCorquodaleDoctoral Fellow, University of Michigan EECSCEO and Co-Founder, Mobius Microsystems

2. Overview • About Mobius Microsystems • Technology • How University Research is Commercialized • University Resources • Michigan Entrepreneurial Activity • Philosophy of Emerging Business • Advice

3. Mobius is an industrial partner with The Wireless Integrated Microsystems Engineering Research Center at The University of Michigan About Mobius Microsystems Mobius is a microsystems company that is commercializing microsystems technologies from The University of Michigan The company was founded by University of Michigan Doctoral Fellow, Michael S. McCorquodale and his Research Advisor, Dr. Richard B. Brown, with the help of Michigan MBA students Jeff Wilkins and Wade Rushing and veteran entrepreneur Jim Vincke

4. How? Si-BiCMOS Analog Mechanical Quartz Si-CMOS Digital InP-HBT RF Sensor Integrated Implementation Mobius’ Technology • Variety of Substrates • Isolation Concerns Between Digital, Analog, RF • Macroscopic Mechanical Devices Board Level Implementation

5. Integrated Implementation Mobius’ Technology • CMOS and SOI CMOS Substrates • Novel Analog, RF, and Digital Design • MEMS Technology Board Level Implementation

6. Mobius’ Initial Technology Mobius’ Digital Monolithic Clock (DMC) Technology • Completely on-chip implementation of the clock generator requiring no external components • High-performance enabled by MEMS technology to overcome the mediocre performance of other on-chip implementations • MEMS circuitry that is completely compatible with standard CMOS manufacturing • Tunable operating frequency, which reduces power consumption and increases flexibility, unlike current fixed-frequency technology • Considerably lower power consumption as compared to existing high performance clock generation technology • Lower cost as compared to alternative clock generation technologies

7. MobiusDMC IP SoC Design Manufactured and Packaged SoC Mobius Business Model Semiconductor Intellectual Property (SIP) IP used in research system-on-chip (SoC) design

8. IP Clean ResearchGrant FundamentalResearch DisclosuretoUniversity ProvisionalPatentApplication Publish NonProvisionalPatent Application BusinessPlanningandDevelopment LicenseOption? License Rollout: Sell orContinueDevelopment Commercializing University Research FundraisingorOtherFinancing

9. University Resources Essential Courses • ES 515/517New Venture Creation IResearching & Writing the Business Plan • EECS 498Patent Law for Engineers Other Courses to Consider • FIN 623/624 Venture Capital and Private Equity • IOE 422Entrepreneurship

10. University Resources Zell Lurie Entrepreneurial Institute • Preparation for business plan competitions • MBA Internship Program • Business development support • Dare to Dream Grant Program • Prior Hale, Michigan Innovators • Technology Management Office • Business development support • Grants: GAP, OVPR, MUCI, ETCF • Licensing

11. Michigan Entrepreneurial Activity Where is it? • BioTech and Engineering predominantly How active? • Not very, but getting much better Why? • Good question Who will start the next great enterprise? • Plenty of resources now available!

12. Philosophy onEmerging Business Why start a technology company anyway? • Money? Prestige? • Independence? • Fun? Creation? Why I believe you should start a company • To create with others • To build something greater than you can be as an individual • To change people’s lives for the better with technology • To contribute to the spirit of American enterprise • To contribute to the local and national economy • To create jobs for people • Basically, to change the world: The only real reason

13. Advice: Humorous Observations • Intellectual Property • Circumstance: You have 50 patents covering your technology • Reality: You don’t know how to write a patent • Experience • Circumstance: You are a serial entrepreneur • Reality: You can’t finish what you start • Effort • Circumstance: You think things will be easy • Reality: Nothing worth doing is easy • Motivation • Circumstance: You expect to get rich • Reality: The best companies (and people) have altruistic goals

14. Advice: Dispelling Myths Financing • Myth: VC is the only way to fund a company • Truth: SBIR, STTR, Debt, Angel, Revenue, Grants, Competitions, etc. are all available Venture Capital • Myth: You need VC to start a company • Truth: You need customers to start a company People • Myth: You need a professional management team • Truth: You need a team of “bankable” people Raising Money • Myth: You can raise money by shopping your plan • Truth: All VC and PE is raised by relationships Market Opportunity • Myth: You understand your opportunity from analyst reports • Truth: Unless you have spoken to potential customers, you don’t understand anything

15. Advice: Takeaways Most Important • People, people, people! Most Important Characteristic of the People • Vision! Most Frustrating Hurdles • The Bozos: Most people are risk adverse and will tell you that you can’t do it. These people are idiots. Ignore them. Listen and Observe • Listen to other entrepreneurs, talk to investors, watch other start-ups, read about new technologies, follow market trends. Build Relationships • Get to know everyone in your field and in the start-up community here, across the country, and around the world.

16. QuestionsWelcome 3430 E. Jefferson Ave. #140Detroit, MI 48207313.205.3489www.mobius-microsystems.commanagement@mobius-microsystems.com Michael S. McCorquodaleDoctoral Fellow, University of Michigan EECSCEO and Co-Founder, Mobius Microsystems