Transcript Slide 1

New Paradigms in
Business Incubation
May 2010
New Paradigms in Business
Incubation
Evolution 1980 - Present
‣ Beginning
‣ 1989
‣ 1995
‣ 2000
‣ 2002
‣ Today
Future
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Laura J. Kilcrease
New Paradigms in Business
Incubation
In The Beginning
‣ Incubation
- Building
‣ Entrepreneurs
- Small business
- “Mom and Pop”
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Laura J. Kilcrease
New Paradigms in Business
Incubation
@ 1989
‣ Incubation
- Building + Service
‣ Entrepreneurs
- Any type of business
‣ Value-add
- Incubator Director
- Know-how network (service providers)
‣ Metrics
- Jobs created
- Space occupied
[email protected]
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Laura J. Kilcrease
New Paradigms in Business
Incubation
@1995
‣ Incubators
- Specialized by industry, e.g., biotechnology, etc.
‣ Entrepreneurs
- Aligned with target industry
‣ Value-add
- Incubator Director
- Know-how
- Limited industry specific expert(s)
‣ Metric
- Jobs created
- Investment $ raised
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Laura J. Kilcrease
New Paradigms in Business
Incubation
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@ 2000
‣ Incubators
- Virtual
- For profit
‣ Entrepreneurs
- Internet targeted firms
‣ Value-add
- Know-how
- Clustering of similar firms
‣ Metrics
- Time to exit/liquidity
NOTE: Mass failure of publicly traded incubators as well as for-profit within two years
Confidential property of
Laura J. Kilcrease
New Paradigms in Business
Incubation
@2002
‣
Incubators
- Specialized by industry/market verticals
‣
Entrepreneurs
- Industry experienced
‣
Value-add
- Industry specific incubator Director
- Incubator advisory boards
- Know-how
- Social network/orgs.
- Early consulting to firms
‣
Metrics
- Impact of region
- Wealth creation
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Laura J. Kilcrease
New Paradigms in Business
Incubation
Now
‣ Incubators
- Incubators within incubators
- Greater consulting world
- Physical building
- Virtual
- Industry specific
‣ Entrepreneurs
- Highly experienced
- Little experienced in business
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Laura J. Kilcrease
New Paradigms in Business
Incubation
Now cont’d
‣ Value-add
- Providing specialized services by skill and industry
- Forming industry vertical advisory boards
- Assisting clients with forming advisory boards
- Networking
- PR and using media (social and traditional) to get the companies known
- Access to capital
‣ Metric
- Jobs
- New industry clusters, e.g., Cleantech
- Wealth creation
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Confidential property of
Laura J. Kilcrease
New Paradigms in Business
Incubation
ETF – Total $ granted to Affiliates of IC² Institute since inception of ETF
YEAR
2006
Company
$ granted
Molecular Imprints
$
3,000,000.00
Monebo Technologies
$
500,000.00
2007
Xtreme Power
$
2,000,000.00
2008
RFMicron,
$
925,000.00
Terapio Corp
$
1,700,000.00
Xitronix
$
500,000.00
Agile Planet
$
1,000,000.00
AnaLogix Development Corp
$
1,000,000.00
Note: two other companies awarded
this year but not pubic
$
2,000,000.00
$
1,000,000.00
$
13,625,000.00
2009
Merkatum
Total awarded by ETF
to IC²/ATI/GCG
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TechBA Program
Market Acceleration through Physical Presence
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GCG, in conjunction with the United States-Mexico Foundation for
Science (FUMEC), operates a technology business accelerator at
UT at Austin. TechBA-Austin is sponsored by the Mexican Ministry
of Economy.
2006 - Present
TechBA-Austin brings representatives of established Mexican
technology businesses to Austin and provides them with office
space and support for accelerating their businesses in the US and
international markets.
TechBA-Austin has operated since 2005 and has worked with over
50 Mexican companies. New companies are assessed and
admitted as space becomes available.
In the past three years, TechBA-Austin has generated over $40M
in revenue for participating companies.
Recently, a company was funded from Texas' Emerging
Technology Fund.
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2
IC Programs
Around the Globe
Poland
Hungary
Portugal
Middle
Egypt
East
India
USA
Mexico
S. Korea
Malaysia
Brazil
Chile
We measure ourselves by business results generated
 Currently active programs in 6 countries
 Over 100 foreign technology commercialization agreements in 3 years

Four Pillars of Success
1. Global Competitiveness
2. Access to Capital
Develop human capital
Identify most competitive
technology
Pursue most effective, global
commercialization strategies
Develop the Business capital
to support entrepreneurs:
Incubators, TTO, Accelerators,
Centers of Excellence
Develop angel and venture
capital investment funds
Attract economic development
resources (IDB etc.)
Create conditions conducive to
investments in all stages of
venture development
Goals Achieved
1
2
Successful Eco-System
3
4
3. Access to Markets
Position your companies in
external markets
Develop global business
development resources
Lower barriers to service &
product delivery
Strengthen local markets
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4. Sustainability & Momentum
Develop effective know-how to
support the ecosystem – train the
trainers
Train the entrepreneurs – develop a
commercialization culture
Develop global business
partnerships & global access networks
Develop global advisory networks
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Program Results
• Technology transfer, integration and
adaptation in the country
• Know-how transfer and high-skilled
job creation in country
• Long-term sustainability leading to
improved economic value-add
• Business results leading to
enhanced cooperation between local
and international companies
• Access to global markets resulting
in foreign investment
• Specialized training contributing to
the development of a more efficient
and productive labor force
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New Paradigms in Business
Incubation
Future Firms
‣ Firm will require greater degree of “soft-landing” help in both directions (U.S. to
Portugal and Portugal to U.S.)
- Foreign filing
✓ Company formation
✓ Controlling cost
✓ Product standards and compliance
✓ IP standards
✓ Labor laws
✓ Tax
✓ Attracting capital
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New Paradigms in Business
Incubation
Future Firms cont’d
‣ Greater emphasis on creating new firms by incubators rather than wait for
firms to apply
‣ Industry based value add networks will become of greater importance for
faster success to firms
‣ Access to capital will be localized even for “soft-landing” companies
‣ Early stage capital sourcing needs to be addressed
‣ Every geographic location will need to “brand” its dominant feature and get
the message out e.g., “Ireland is the gateway to European markets”
‣ There will be greater amount of near sourcing services
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Confidential property of Laura J. Kilcrease
New Paradigms in Business
Incubation
Future Incubators
‣ Incubators will align with international partners by either market or industry
requirements
‣ Incubators will host foreign incubators as well as firms within their premises
‣ Networks of incubators will form international alliances
‣ Incubators will proactively need to work on new business creation with TTOs and
students (new programs, training, and services will be required)
‣ Incubators will proactively partner on bringing global entrepreneurial economic
development program to their regions
‣ Exchange incubator team members to experience/understand international locations
Confidential property of Laura J. Kilcrease
[email protected]
India Innovation Growth Program
Ray Johnson
Corporate Social Responsibility Program
Sr. VP & CTO, Lockheed Martin
for Lockheed Martin in India
“The success of this program is
2006 - Present
directly attributable to the strong
partnership formed between industry,
government and academia. It
provides world-class teaching on
innovation strategy with global
business opportunities. This
partnership has enabled new ideas to
cross international borders.”
Dr. Abdul Kalam
Former President of India
“At a time when the world is
struggling with economic recession,
what we need is innovation. And
knowledge is powered by technology
and innovation.”
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Confidential property of Laura J. Kilcrease
Korea - Gyeonggi Province
Program
Global Competitiveness Program
Gyeonggi Province Government
2008 - Present
• Action – Learning program for talented
scientists & engineers to successfully
commercialize new technologies into
global marketplace
• Enhance and promote Korean
entrepreneurship
• Identify promising technology start-up
companies
• Match innovation to complimentary US
companies
Governor Kim & UT Vice Chancellor McDowell
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[email protected]
Innovation Program
Collaboration between:
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Chilean Economic Development
Agency (CORFO)
Innovation Committee (INNOVA)
Lockheed Martin Aerospace
IC2 Institute
• Identify, assess and commercialize highcaliber research and development projects in
11 universities.
• Elevate importance of entrepreneurial
endeavors to long-term growth of the
Chilean economy and train entrepreneurs.
• Match Chilean enterprises with technology
and global issues outside Chile.
Confidential property of
Laura J. Kilcrease
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2009 - 2010
20
New Paradigms in Business
Incubation
Questions?
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