Transcript Lecture 010509

Technology
Commercialization Class
(BA468)
John Turner
January 5, 2009
“Far better it is to dare mighty things,
to win glorious triumphs, even
though checkered by failure, than to
rank with those poor spirits who
neither enjoy much nor suffer
much. Because they live in the grey
twilight that knows neither victory
nor defeat.”
But aren’t we in a recession?

“Be fearful when others are greedy and greedy
when others are fearful”
 “When the enemy attacks; retreat and when the
enemy retreats; attack.”
Startups based on University IP:
Many Good Reasons to Focus on These
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> 400 university startups created yearly from federally
funded R&D (Google, Netscape, Genentech, Lycos, Sun
Microsystems, Silicon Graphics, and Cisco Systems)
OSU has “extremely high” research activity (~$250M year in
grants). Corvallis has abundant talent and new funding sources
High survival rates: 68% of university startups are still in
business in 2001, regular startups experienced a 10% survival
rate during that same time period
They are profitable: Early& SEED VCs returns 20.8%, Late
stage VCs returns 13.8%, S&P returns 8.2%
They “go public” more often: 8% for university startups vs
0.07% for other US enterprises
What are we doing?
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A “hands-on” opportunity to develop a
commercialization plan for technology
from the OSU portfolio and other patents
A cross disciplinary project class in
technology commercialization tools and
processes
An “experiential” class
HP
COB
NCIIA
Boeing
AEP
Tech
Transfer
Office
Inventors
Local
Entrepreneurs,
SWOT, PBR
Patent Selection and Commercialization Plan Process
Spin Off
Based Plan
TTO Provides
list and input
Advisory Team
Screening
Licensing
Based Plan
Class Screening
and Plan
development
Other Plan
Recommended
Technology not
viable for
commercialization
BA468 Class
Candidate Intellectual Property for the Class
New Materials and
Energy Sources
Medicine &
Pharmacology
• Nanoparticles on Demand(Miller-OSU/MBI)
•Natural sources of cancer treatment
agents: Coibamide A, Curacin A- (OSU)
•Fuel Cell Technologies- (HP)
• Compactable self-sealing drug delivery
agents (Ayres-OSU)
Biometrics
•Laxity measurement in Human
Joints (Herling-OSU)
• Detection of Human Visual
Response (HP)
Green
Technologies
•Citrus based Insecticides- (Karchesy- OSU)
• Novel Algae Strain- (Langdon- OSU)
• Novel Soy based Adhesive- (Li, OSU)?
Other information
Student background and intros
 Formation of teams
 Selection of patents
 Inventors and access
 Mentors- what are they for?
 Student contact information
 Invited speakers and protocols
 Non-disclosure agreement
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Technology Commercialization
(BA468)
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Instructor- John Turner, PhD
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Class Schedule
– MW (2-4 pm), 328 Bexell
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Contact Info
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Office: 316 Bexell
Office Hours: Wed 11-12, Thu 1-2
Phone: 737-9219
E-mail: [email protected]
Best way to reach me quickly is by email
2009 Class Schedule- Technology Commercialization BA468
1
Mon
5-Jan
2
Wed
7-Jan
Class Intro
3
Mon
12-Jan
4
Wed
14-Jan
5
Wed
21-Jan
12
Mon
16-Feb
7
Wed
28-Jan
8
Mon
2-Feb
9
Wed
4-Feb
10
Mon
9-Feb
(mentors)
IP and Opportunity Assessment
*
*
Inventor Presentations
Select Patents & Form Teams
LB,MM
11
Wed
11-Feb
6
Mon
26-Jan
13
Wed
18-Feb
14
Mon
23-Feb
Commercialization Options
Databases and Marketing Surveys
SWOT & Genl Approach
The Pitch
HP TBD Corp Tech Commercialization
CW, TBD
15
Wed
25-Feb
16
Mon
1-Mar
17
Wed
3-Mar
18
Mon
8-Mar
19
Wed
10-Mar
Timeline and Milestones
Finances and VC Expectations
BN
Investor Perspective
PG
(meet w JT)
Prepare Commercialization Plans
Entrepreneur Perspective
Present Commercialization Plans
^
In class
Reviews
^
Portland BRT
Reviews
BA468 Mentors for this Term
Brian Hartman
Mark eting manager at Tripod Data Systems
Rob Schneider
Entrepreneur, expert in new product mark eting
David Reihl
Physics Faculty at LBCC, retired HP Project Manager-
Ray Dandeneau
HP (retired manager and very smart guy)
Julie Wrazel
PhD Chemist, CTO of Home Dialysis Plus (startup)
Bill Buckley
New Business Development Expert- HP TDO
Michael LaPort
Director of Marketing, Peak Systems
Recommended Texts Resources
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“Technology Ventures: From Idea to Enterprise”,
Dorf and Byers
“Academic Entrepreneurship: University Spinoffs
and Wealth Creation”, Shane
“Technology Management: Developing and
Implementing Effective Licensing Programs”, R.C.
Megantz
“Crossing the Chasm”, Geoffrey Moore
Grading
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BA468 is a 4 credit class
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There is no final or midterm
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Grade will be determined by
a) Attendance, class participation and team dynamics, and balance
of contribution (30% total)
b) Interim Results: patent screening, market surveys, SWOT
analysis, elevator speech, project plan (30% total)
c) Final Presentation and Final Report (20% each)
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Feedback will be provided on a) halfway through the course
and on b) within one week after presentation of results
Interim Assignments
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These 5 assignments are each 6%, for a total of 30% of the grade
– Patent assessments (due Sat, 1/17); written only
– Market evaluation (due Mon, 1/26); written + presentation
– SWOT analysis of commercialization options (due Wed 2/4); written +
presentation
– Elevator speech (present Mon 2/9); presentation only
– Financial and project plan (due Wed 2/18); written + presentation
All except the first are team exercises
Written assignments may be e-mailed (preferred) or sent
electronically by the specified date/time
Commercialization Plan
Presentations and Competitions
1)
In class final presentation- March 3rd
2)
PBR Judging Panel- March 10th
3)
New Enterprise Challenge- April 17th
$$$$$$!!!!
The 7 Elements of an Idea Resume
A Clear, Concise, Concrete, Statement of the Idea is the Critical Starting Point
The Need
The Solution
• Unmet Problem
• Customer
• Value & Scope
• Offering
• Function
• Advantage
Issues & Next Steps
• Assumptions/Objections
• What to Learn First
Benefits to
Organization &
Sponsor
Investigation
Resources &
Expectations
Momentum &
Credibility
BEC
Business Win
• What’s Unique
• Business Leverage
Answer a VC’s Fundamentals
Who is the customer?
What do they want?
How much will they pay?
Why will they buy from you?
How much money do you need?
When do I get it back?
Small Group Activity
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What factors will determine the
success of a technical idea in the
marketplace?
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Think of at least ten- more is better
•
Identify your top four
Parting Question
“How much is an idea worth?”
Typical valuation methods:
-Market based valuation?
-Cost based valuation?
-Opportunity based valuation?
Challenge: An invention has the following characteristics
- 25% chance of success= P
- Takes 5 years and $5M to bring to market= E
- Offers exclusive access to a market of $100M for 5 years=R
Estimate the value of this invention