1 The University of Texas at Austin graduate degree programs $1.2 B, sponsored research awards (past 2years) patents filed (past 5 years) $45M+ licensing and royalty revenue ( ) Typical year: 100 disclosures, 100 patent applications, 50 patents issued, 150 licenses/options, 10 startups RESEARCH DEVELOPMENT COMMERCIALIZATION Founded 1883 IC Institute is a think and do component of The University of Texas at Austin. Locally: Austin Technology Incubator (ATI) Technology Commercialization degree programs Regionally: Bureau of Business Research Globally: Global Commercialization Group IC Fellows Programs in 19 countries At the University: IC units and projects serve as laboratories for students, faculty, visiting researchers, and business leaders who explore the theory and practice of entrepreneurial wealth creation. IC = Innovation, Creativity, and Capital The Institute fosters wealth creation, economic growth, and prosperity at the local, regional, and global levels. Four Pillars of Success 1 1.Global Competitiveness Pursue most effective, global commercialization strategies Develop support for entrepreneurs: Incubators, TTO, Accelerators 2 2. Access to Capital Develop angel and venture capital investment funds 3. Access to Markets Position companies in external markets Develop global business development resources Strengthen local markets Sustainability & Momentum Teach and support the ecosystem train the trainers Train the entrepreneurs develop a commercialization culture Develop global business partnerships & global advisory networks Successful Eco-System Austin Technology Incubator Founded in 1989 as a program of the IC2 Institute at The University of Texas at Austin Non-Profit Business Model 2800 square meter facility ~ 20 Companies ATIs Results to Date >160 graduate companies >$750 million in investment capital raised 4 Initial Public Offerings on NASDAQ ~25 acquisitions ~35 independent, profitable companies >$1.5 billion in annual revenues >10,000 jobs created by ATI companies Erin Defosse Incubators 7 Its all about subsidies! 1.Capital a.Rent b.Services c.Equipment 2. Knowledge a.Experience b.Networks I.Partners II.Team members Value to todays entrepreneur Incubator Start-up infrastructure support Market Making Sector Specific Acceleration (clean energy, wireless) Example services offered to entrepreneurs Office space Professional services facilitation General capital networks Business advice High-touch coaching & mentoring Virtual Board Target capital matchmaking University resources Access to chokepoint technologies, key customers Time 1989 From Incubator to Accelerator and Beyond Sector Specific Coaching and Mentoring Structured, not informal Focused on business strategy, not tactical fundamentals Industry experienced incubator staff Advisory Board of industry experts Erin Defosse Structured Coaching and Mentoring Process Screen Vet Internally Vet Externally Set Milestones Review Admit into ATI Graduate or Leave ATI Industry Sector Focused Advisory Board ATI representative on Company Board Up to 3 years Quarterly Reviews Erin Defosse The Sector Focused Advisory Board Current or retired executives with significant experience in the sector Business leaders, venture capitalists, technologists No compensation from incubator Screen applicants and review company performance Appoint representative to the Companys Board Erin Defosse Market Making, Value from ATI Entrepreneurs Significant need for test resources, customer pull Access to test facilities, key early adopter customer Novel, targeted technologies/solutions Looking for new clean technologies to further its mandate to offer green choices to customers Erin Defosse Questions? For Profit Incubators are hard to do 2.There is no law on how incubators should work 3.Customize to your local conditions and needs