Business Technology Incubation/Acceleration

1. Business Technology Incubation/Acceleration By Neil vanHooydonk

2. The Law of The WildBy 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

3. Definitions • Incubate vb. to keep (as an embryo) under conditions favorable for development • Accelerate vb. To bring about earlier : to speed up

4. The Goals of Incubation The goal of business/technology incubation is to provide: • 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

5. Types of Incubatorsbased on their primary sponsors • Not-For-Profits: • University & college-sponsored • Provincial/local government-sponsored (or publicly-sponsored) • For-Profits: • Private corporate • Hybrids • Local government & private subsidy

6. Types of Incubatorsdiffer by the priorities set forth by their funding agency • To develop firms & to stimulate entrepreneurship • Pursue job creation • Technology development • Product development • Profit

7. Types of Incubatorsdiffer by the priorities set forth by their funding agency (continued) • Economic diversification • University research commercialization • Business investment opportunities • Tax base expansion for local government • Development of a core of local high-technology companies • Venture capital development & neighborhood revitalization

8. 6 Dimensions of an Incubator • Facilities & location • Shared services • Tenant entry & exit criteria • Mentoring & networking • Funding & support • Incubator governance

9. Best Practicesrelated to the 6 dimensions • Incubator min. 30kft2 of rental space • Room to expand in order to be able to generate enough income to be self-sustainable • Flexible space to manage tenants’ variable needs • Min. 10 in-residence

10. Best Practicesrelated to the 6 dimensions • 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

11. Best Practicesrelated to the 6 dimensions Selection Committee to prescreen potential clients: Selection criteria includes: • Homology between incubator & client’s needs • Business Plan with Pro Forma • Technology sophistication • Potential growth & job creation

12. Best Practicesrelated to the 6 dimensions Selection Committee to prescreen potential clients: Selection criteria includes: • R&D intensity • Occupational mix of the management team • Practical experience • Personal commitment

13. Best Practicesrelated to the 6 dimensions • 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

14. Best Practicesrelated to the 6 dimensions • 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

15. Factors Related to Incubator Failure • 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

16. Do Technology Incubators Work?

17. Do Technology Incubators Work? • 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

18. Incubator Characteristics • 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

19. How Incubators Are Funded • Gov./private/university subsidy • Sponsors (law firms, accounting firms,etc.) • Portfolio Companys’ Fees/Rent • Portfolio Companys’ Equity • Trigger event • Longterm ROI • High Risk

20. What is Incubation all about! • 1) Training/education center; environment of entrepreneurship; develop managerial, business, & leadership skills;

21. What is Incubation all about! • 2) Rapidly plug-in to an entire community, surrounding them with services & expertise; make connections to strategic partners & capital providers;

22. What is Incubation all about! • 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.

23. 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

24. 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

25. Roadmap:Intentional Systematic Evolution Process Launch

26. Services Specific to Medical Technology Incubation • Regulatory • Medical Advisory Network • Strategic Alliances

27. Strategic Alliance Network Coaching R&D Alliance Space & Shared Services Program Company Quality/ Regulatory Affairs Medical Advisor Network Commercialization Program Service Providers Network Capital Providers Network Training & Forums Stakeholders Business Technology Incubation Support/Services/Networks

28. DFW Metroplex+Incubators

29. StarTech Early Ventures • 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/

30. NTEC • 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

31. BMC • Biotech Manufacturing Center of Texas 1704 Enterprise Street Athens, Texas 75751Phone: (903) 677-0835 Fax: (903) 677-0674 • Gary San Miguel • GMiguel@bmc-texas.org • www.bmc-texas.org

32. BMC... The Biotech Manufacturing Center of Texas 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. Welcome to the Biotech Manufacturing Center of Texas... 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…

33. BMC... The Biotech Manufacturing Center of Texas 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.

34. Roadmap

35. TechFortWorth • 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://www.info@techfortworth.org

36. Research Valley Innovation Center • 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 james@rvic.org • http://www.rvic.org

37. Go North Young Entrepreneur…Go North!

38. Un. of Oklahoma Office of Technology Development (OTD) • Spinoff Companies: since 1998, has created 30 companies, generated >$65M in capital, >$10M in cash & $20M in est. equity value for the University

39. i2E, Inc. • 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

40. 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

41. Intellectual Asset Management, Shane Lashley, Co-Founder • IP Worthiness System • Neil vanHooydonk, Dir. Medical Innovations • Roadmap For Transformation Solutions • For-Profit, Private Incubator • 17300 Preston Rd. (on McCallaum), Suite 300 Dallas, 75252 http://www.iplaunch.com/ 214-438-1100

42. Neil’s Top 10 Reasons To Enter An Incubator • $ 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

43. Neil’s Top 10 Reasons To Enter An Incubator • $ 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

44. Q & A

45. Neil vanHooydonkMobile: 214-642-9905 • 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