1 / 24

Southeastern United States: Economic Opportunity and Innovation Hub

Learn about the thriving economy, research prowess, and entrepreneurial environment in the Southeastern U.S., making it a hotspot for medical device and healthcare trends. Explore the region's growth potential for job seekers and potential business owners.

eulat
Download Presentation

Southeastern United States: Economic Opportunity and Innovation Hub

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Vanderbilt University Biomedical Engineering 10.15.02 Why the Southeast? Medical Device and H/C Trends Day job or Your Own Company? Timothy E. Taylor Cofounder- Endius, Inc. Venture Capitalist-HMC 8.30.02

  2. Table of Contents Fact Book: Venture Capital Investment Climate in the Southeastern United States • I. Economic Overview • Entrepreneurial Environment • Overview of Venture Capital Market

  3. Economic Overview

  4. Economic Overview • Strong regional economy • Substantial research support focused on IT and Life Sciences • Blue chip IT and Life Sciences corporate presence • Region dedicated to entrepreneurial growth • Leader in innovation Harbert Venture Partners Locations Other Harbert Southeastern Locations Note: Southeast includes Alabama, Florida, Georgia, Mississippi, North Carolina, South Carolina, Tennessee and Virginia/Washington, D.C.

  5. Economic Overview Strong Regional Economy • 5th largest economy in the world 2000 Comparative Gross Domestic Product (GDP) ($ in trillions) Source: Based upon most recently available data from the Bureau of Economic Analysis.

  6. Economic Overview Strong Regional Economy Gross State Product (GSP) • The Southeastern U.S. economy is expected to continue its historical growth at a pace higher than the rest of the U.S. Southeast U.S. Excluding Southeast Projected Annual Real Gross State Product (GSP) Growth 2000 – 2010 (Highest growth states with 2000 GSP > $100 billion) • Five of the ten fastest growing, large ($100 billion+ GSP) states are located in the Southeast U.S. GDP Growth = 1.8% Source: Bureau of Economic Analysis.

  7. Entrepreneurial Environment

  8. Entrepreneurial Environment Substantial Research Support Focused on IT and Life Sciences Virginia / Washington, D.C. University of Virginia ($247M) Virginia Tech ($123M) Medical College of Virginia/Virginia Commonwealth University ($122M) Department of Defense ($48.5B) National Institute of Health ($23.5B) Environmental Protection Agency ($7.3B) National Science Foundation ($4.8B) NASA Langley/Goddard Research Center ($1.2B) Virginia Biotechnology Research Park Tennessee Vanderbilt University ($218M) Dept. of Energy – Oak Ridge Lab ($2.1B) North Carolina / Research Triangle Park University of North Carolina ($510M) Duke University ($478M) North Carolina State University ($413M) Wake Forest University ($187M) North Carolina Biotechnology Center ($9M) North Carolina Tech. Dev. Authority Alabama University of Alabama (Birmingham) ($296M) Redstone Arsenal ($12.0B) Cummings Research Park ($4.2B) NASA Marshall Space Center ($2.2B) Missile Defense Agency ($2.1B) Southern Research Institute Florida University of Florida ($380M) NASA Kennedy Space Center ($1.0B) Bell Labs Georgia Emory University ($248M) Georgia Tech ($101M) Centers for Disease Control ($4.3B) Georgia Adv. Tech. Dev. Ctr. Southeastern Technology Center Note: Dollar amounts represent annual R&D budgets/actual expenditures, based upon most recently available data. Sources: Company annual reports, web sites and individual sources.

  9. c - Entrepreneurial Environment Life Sciences and Blue Chip IT Corporate Presence in the Southeast* * The depiction of the trademarks, service marks and logos on this page are for informational purposes only and are not intended to imply any affiliation with, or endorsement of, Harbert Venture Partners by their owners. The trademarks, service marks and logos listed are in alphabetical order and their placement on the page is not intended to imply a specific geographic location or headquarters of any entity.

  10. Entrepreneurial Environment Region Dedicated to Entrepreneurial Growth • Virginia / Washington, D.C. • 5th largest high-technology center in the nation • Telecom employment – 3rd in nation • D.C. area has 4,700 high-tech firms and > 246,000 high-tech employees • 50% of the nation’s Internet traffic flows through Fairfax County • Tennessee • Home to 30 publicly traded healthcare companies with > $36 billion in revenue • Nashville high-tech job growth – 2nd in nation • Home to Vanderbilt Medical Center and 16 other area universities • North Carolina / Research Triangle Park • Academic R&D funding – 1st in nation • > 100 R&D facilities • Concentration of science degrees – 1st in nation • Home of Duke University, University of North Carolina and North Carolina State University • Alabama • One of the leading centers for AIDS, cancer and heart research • 8% of all anti-cancer therapeutic drugs developed at Southern Research Institute • Cummings Research Park – 2nd largest research facility in U.S.; 4th largest in world • Florida • 7.5 million labor force – 4th in nation • 3,149 patents in 2001 – 1st in Southeast • $7B and $4B contracts for NASA and Department of Defense, respectively • 2nd in nation in healthcare employment (300,000) and number of healthcare firms (2,200) • Georgia • Atlanta software job growth – 2nd in nation • Atlanta high-tech employment – 7th in nation • Home of Center for Disease Control, Emory University and Georgia Tech Sources: AeANET/Cyberstates, Bureau of Labor Statistics, Capital IQ, META Group, Metropolitan New Economy Index, local Chamber of Commerce web sites and company web sites.

  11. U.S.: Boston, Minneapolis, San Francisco and Warsaw, Indiana. Southeast: Memphis, Atlanta, RTP, NC. Jacksonville, Nashville and Birmingham. Best Medical Device Cities

  12. Entrepreneurial Environment Leader in Innovation Patents Issued 1981-2001 (in thousands) 1 % of Worldwide Market Share 49.7% 19.1% 7.1% 5.9% 2.8% 2.7% 2.1% 1.6% 1.2% Relative Growth of Patents Issued Annually, Indexed to 1981 1 By state or country of origin, patent is determined by the residence of the first-named inventor. Source: United States Patent and Trademark Office.

  13. Overview of Venture Capital Market

  14. Overview of Venture Capital Market Venture Funding by Region • Southeast trails only California and the Northeast in demand for venture dollars Venture Dollars Invested by Region 1995-2001 ($ in billions) 41.8% 18.9% 10.7% 8.0% 7.5% 6.8% 6.3% % of U.S. Share • Southeastern companies accounted for approximately 12% of total venture deals done between 1995 and 2001 Number of Venture Deals by Region 1995-2001 Note: Northeast - CT, ME, MA, NH, NY, VT, RI; Southeast – AL, DC, FL, GA, MS, NC, SC, TN, VA; West Excluding California – AK, CO, ID, HI, MT, NV, OR, UT, WA, WY; Mid-Atlantic – DE, MD, NJ, PA; Southwest – AR, AZ, LA, NM, OK, TX; Midwest – IL, IN, IA, KS, KY, MI, MN, MO, NE, ND, OH, SD, WV, WI. Source: VentureXpert/SDC. % of U.S. Share 38.2% 19.6% 11.8% 8.3% 7.9% 7.3% 6.9%

  15. Overview of Venture Capital Market Limited In-Region Funding Available • Between 1995 and 2001, of the $20.8 billion1 venture capital invested in Southeastern companies only 18% has come from Southeastern venture firms • Between 1995 and 2001, $16.9 billion has been invested in Southeastern companies by firms OUTSIDE of the Southeast Share of Venture Dollars Invested in Southeast1 1995-2001 • Between 1995 and 2001, only $3.8 billion has been invested in Southeastern companies by LOCALSoutheastern firms 82% 18% In Region Out of Region 1 Excludes $6.4 billion of venture capital invested in Southeastern companies by unknown sources. Source: VentureXpert/SDC.

  16. Medical Device and H/C Trends • U.S. spends $1.4 trillion, or 14% of its gross domestic product on medical care. • Could be spending close to $3 trillion, or 17% of the total national output within ten years. • Areas of highest growth: Cardiology; drug eluting stents, Atrial Fibrillation, wearable devices, Spine, Neurological and Osteobiologics. • Areas of Low growth/upside: Dental, hearing, diagnostics, Orthopedic Hip and Knee Implants, Imaging and Laser Vision. • Devices are viewed as “Defensive Play” on Wall Street which should continue to drive growth. • Returning back in favor for Venture Capitalist but not as hot as early 80’s. • Fifth largest funded sector by VC’s.

  17. INVESTMENTS BY INDUSTRY $ Invest %/Tot Deals Software $1016M 17.8% 199 Biotechnology $958M 16.8% 81 Telecommunications $657M 11.5% 75 Networking and Equipment $633M 11.1% 57 Medical Devices and Equipment $556M 9.8% 73 Retailing/Distribution $394M 6.9% 90 IT Services $360M 6.3% 50 Semiconductors $284M 5.0% 31 Computers and Peripherals $185M 3.2% 27 Media and Entertainment $161M 2.8% 28 Healthcare Services $144M 2.5% 19 Industrial/Energy $138M 2.4% 33 Financial Services $72M 1.3% 14 Consumer Products and Services $55M 1.0% 14 Electronics/Instrumentation $35M 0.6% 10 Other $28M 0.5% 8 Business Products and Services $27M 0.5% 10

  18. INVESTMENTS BY REGION $ Invest %/Tot Deals Silicon Valley $127M 22.8% 22 Northwest $81M 14.6% 6 San Diego $73M 13.2% 7 New England $73M 13.2% 11 Southeast $49M 8.9% 6 LA/Orange County $47M 8.4% 5 South Central $32M 5.8% 2 Colorado $29M 5.2% 3 Midwest $28M 5.0% 3 North Central $9M 1.7% 1 SouthWest $5M 0.9% 2 NY Metro $2M 0.3% 2 Texas $1M 0.2% 2 Philadelphia Metro $0M 0.0% 1

  19. Day Job or Start Up(Which should you do?)Advantages of having a Day Job:1. Good experience for your resume’.2. Opportunity to learn backoffice operations and proven procedures.3. Low stress after quitting time. 4. You can have a life outside of work.5. Fairly stable income.6. Mentoring usually available.7. H/C benefits and forced 401(k) savings8. Work 25 years, retire and start a new life at 50.9. Helps you learn to be a team player.

  20. Day JobDisadvantages1. You are not the boss and corporate America is not a democracy. At best, the company will be a meritocracy, if you find the right company.2. Advancement and pay increases are generally time based not performance based and can be slower than you like.3. Usually requires less creativity and more rule following.4. Your manager may not be as bright as you but he or she will determine your future.5. Flex time/Family Friendly is still mostly lip service so be prepared to punch a clock and drive the desk.6. Over time you might get lulled into the low stress routine and give up on your dreams.7. You are at the mercy of the company. They own you.8. Being Politically Correct is the important.9. Leaders and self starters are often held back.

  21. Starting a CompanyAdvantages1. Freedom and flexibility.2. Will help you define who you are earlier in life.3. Life will be more exciting and depressing. (more highs and lows)4. Better opportunity to build real wealth. You normally don’t get rich working for someone else.5. Builds self esteem.6. Allows you to live a balanced life once you’ve made it.7. Serial Entrepreneurs are highly respected in the business world.8. Better opportunity to help others and be a mentor.

  22. Starting a CompanyDisadvantages1. You sell your soul to investors and shareholders unless you bank roll it yourself.2. You won’t have a life for several years.3. You will think about your business 100% of the time, even when you sleep.4. You will drive everyone around you who are not in the business-crazy.5. You will not be a good spouse or boy/girlfriend.6. You will develop the curse of not being able to work for anyone.7. You will think you are smarter than you really are if your business succeeds.8. You will think the world is here just for you and your business.9. You lose sleep and fall out of shape.10. Your attitude is determined by the price of your stock that day.

  23. During college, work for a VC or investment firm even if you have to work as a free intern. Post graduation, work for one or two large biomedical firms for no more than five years. Get MBA at night and ask them to pay for it. As you move up, try not to be forced into a technical position unless you want to. Join a small company at the executive level. Get married but let the spouse know you are quitting your day job. Start your own company with a partner. (it may take three deals to hit one.) Start your own company without a partner. Start family. (35-41 years of age) Semi retire when children are born thru K school. Go back to work when kids get in elementary school. Slow down at 55 working at the 60% level. Write book at 65 and consult at the 30% level as long as you can. My SuggestionCareer Path

More Related