NBIA UM Entrepreneurial Ecosystem Development
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The document outlines the entrepreneurial ecosystem at the University of Michigan, highlighting its significant role in technology transfer, startup formation, and funding opportunities. It provides data on research funding, technology commercialization statistics, and various support programs designed to foster innovation and entrepreneurship within the university and community. Additionally, it discusses the collaboration with local and state resources to enhance the region's entrepreneurial landscape.
NBIA UM Entrepreneurial Ecosystem Development
- 1. University of Michigan and the Entrepreneurial Ecosystem Wesley Huffstutter Megan Reichert-Kral University of Michigan University of Michigan Tech Transfer Tech Transfer @wes_huffstutter @meganreichertkr @UMOTT
- 2. Entrepreneurial Ecosystem Ecosystem encompasses Includes Business Idea all Technology Translational, Pre-seed, Seed, capital Funding Talent Technical & Management
- 3. About the University of Michigan University of Michigan and Ann Arbor Profiles (We have been working at this for a long time)
- 4. University of Michigan Technology • FY 2011 – $1.24 Billion in Research • FY 2010 – $2.19 Billion in Research – Largest Publically funded research university in the country – 12th time in the past 26 years U-M has held top spot • U-M held that distinction every year from 1991-1999.
- 5. University of Michigan Technology • Since 2001 – 2811 Invention Reports – 814 License or Option Agreements – 93 Startups – $167.7M in Paid-up royalties and Equity sales
- 6. U-M Startup History • Startups in aggregate – Equity financing Raised by all U-M Start-ups (Angel, Seed, Series Venture) • last 5 years -- $538 Million • last 10 years -- $984 Million Sampling of our Successes – Accuri Cytometers (BD) – HandyLab (BD) – Arbor Networks (Danaher) – HealthMedia (J&J) – IntraLase (IPO)
- 7. Funding (Michigan) • Traditional Venture Capital “Flyover” Zone • Angel Networks • Michigan Rank – #18 in VC Investments – 33 Investments in 2010 – Total of $151 Million • 25 Funds operating in MI; 19 Michigan-based – $1.2B Under Mgmt. (Avg. $74M) – $206 Available for Investment – Avg. Fund Size $40M – 78% Seed/Early
- 8. Talent • Ann Arbor – 113,934 people • MSA – 344,791 • Detroit is nearest Largest City – Declining population for the last 30 years • Highly Educated Bachelor’s degree or higher – Ann Arbor = 71.9% – County = 50.2%
- 9. Talent • Have: Technical Talent – Scientific: Former Pfizer R&D HQ – Engineering: Auto Industry – Manufacturing Talent • Need: “Fundable” Management Talent – Industry specific experience and expertise
- 10. Ecosystem • Collaboration – We work hard to collaborate with the community • Ann Arbor SPARK (Economic Development) – Many resources • Networking Opportunities • Increasing Culture of Entrepreneurship • College Town/Great place to live • State hub of Innovation and Venture Capital • Non-University Opportunities
- 11. U-M Tech Transfer Structure • 31 Full-Time Employees – Licensing Group • 9 people – Business Formation Group • 4 Business Formation • 6 MIRs (Half-time) • 1 Accelerator Manager – Legal • 2 Attorneys, Office of General Counsel – Other • 15
- 12. 10 Years Ago (2001) • Tech Transfer – 10 startups/yr – Business Formation – TechStart Internship (2001) – Gap Funds ($35k) • Zell-Lurie Institute for Entrepreneurial Studies – Established in 1999; $10M gift • Michigan Growth Capital Symposium – Established in 1980 • Michigan Universities Commercialization Initiative (MUCI) – Started in 2001; $2M Challenge Fund • IT Zone (Community) – Founded in 1997 and operational since 2000 • Everyone Took Sole Credit
- 14. Campus Ecosystem Map Jump Start Grants Michigan Venture Center Michigan Business Challenge SI Create Michigan Investment in New Technology Startups (MINTS) Frankel Marcel Gani Wolverine Venture Commercializa?on Internships Fund Fund Mayleben Venture Zell Entrepreneurship Shaping Grants and Law (ZEAL) Clinic
- 15. Funding Map @UMOTT
- 16. Funding Resources for U-M Startups Outside Sources Community / Early-‐Stage VC Angel ( $250K max, matched conv. debt ,State-‐wide) ( Angel Groups-‐ A2A, GA, GLA, SPARK Pre-‐Seed BWA; Michigan Angel Fund) SPARK Business Accelera?on ( $50K micro-‐loans) Michigan Venture Match Fund Research Federal Grants Small Business ( MI SBTDC SBIR/STTR Match) ( $350-‐500K co-‐investment) OVPR ($100K, 4/yr Biomedical Engineering Only) Coulter ( $50K-‐250K max by stage -‐Medical School Only) MINTS Pilot & Collabora?ve Grant Program for Transla?onal & Clinical Research ($500k co-‐investment with VC) Funding Inside U-‐M ETR / College of Engineering Gap ( $50K max, $30K average Engineering Only) WVF OTT Gap (Average 1 Investment/Yr. Cannot lead, Small amounts ) MUCI (Match for OTT Gap) ( Average 6/yr at $50K) MIIE (Match for OTT Gap) (MBC $15K; D2D $10K; Jump Start $1k; Venture Shaping $500; Compe??ons and Grant Programs Accelerate MI $500k; GLEQ $100k; CEVC $ 50k) Frankel Fund ( 2/yr at ~$80K) ( Not funding -‐ Prototype Dev. ) Med. Innov. Cent. ( Not Funding -‐ Compound iden?fica?on and tes?ng ) Center for Chemical Genomics Plan / Team / Startup Market Analysis Financing Concept Valida?on Op?on Launch / License Commercializa<on Science Evalua<on Emerging Business Forma<on Growth Basic Proof-‐of-‐Concept Tes?ng Product Principles Technology Prototype Pre-‐Clinical / Development Observed Concept Development Toxicology / β-‐Test Site
- 17. How Did We Get Here? A timeline of a decade of work
- 18. Business Formation • Little “VC pull”/VCs don’t walk the halls • Experienced entrepreneurs helping faculty start companies – Help develop business models/plan – Make connections and introductions – Guide technology toward product – Educate the faculty founders • Work with investors to find/ develop startups
- 19. Gap Funds • Started small – Leveraged other University sources – Funds of $35k • MUCI/MIIE (Matching Funds, 2001) – Must be repaid – 3x to MUCI/MIIE – Selective • Leverage Ann Arbor SPARK • Now: $750k including Matches
- 20. TechStart • Started in 2001 • Summer Internship Program – Graduate Students • Wide array of students • 10-15 interns – Help with Licensing and Commercialization activities – Some (2) students have gone on to run startups – One student joined our Licensing staff – One joined MUCI/MIIE
- 21. Catalyst Resource Network • Started in 2005 • Need for Talent – Mentors – Industry Experts – Consultants – Potential Management • Internal Database – Leverage Social Networks – Alumni Network
- 22. Coulter Translational Research Program • Started in 2005 • Translational Funding for Biomedical Engineering – Wallace Coulter Foundation • Initially $5M for 5 years – Now $20M endowment • Coulter Foundation and U-M – Fund Projects
- 23. Investors • We were a good source of deal flow – Relied on them to come to us • Spreadsheet in 2006 • Meet with locals and socialize deals – Help Angel Networks • Database of investors – Profile – Tied into our Project Database – “Hot List” (List of Potential Startups/Active deals)
- 24. Mentor In Residence • Started in 2009 • Different from Executive or Entrepreneur-In-Residence Programs – Serial entrepreneurs – Part-time – Work on several projects – Offer “outside” perspective – See how hard it is to commercialize University Technology
- 25. Venture Center
- 26. North Campus Research Complex • Former Pfizer Facility – Global R&D Headquarters – Closed doors in 2007 • Approx. 2 million Sq. Ft. of Space – significant research space plus a GMP facility • U-M purchased in 2009 • 30 buildings
- 27. Venture Accelerator • Opened January 2011 • Over 16,000 sq. ft. of office and lab space • 18 clients • 5 clients in the application cue • 70 employees • More than half of clients have expanded within first year • Inside University • 3 year maximum tenancy
- 28. Tech Transfer Fellows • Started in 2011 • Use Graduate Students for initial assessment – Copied Columbia and Illinois – By expertise – Hourly • Saves our office time • Create commercial-minded researchers
- 29. New Program (2012) • Entrepreneurial Post-Doc – Work on technology for a year – Avoid pressure to take a Tenure-track position – Part of a Grant from The Michigan Economic Development Corporation (MEDC) • Tech Transfer Talent Network
- 30. Michigan Investment in New Technology Startups (MINTS) • Created by the Michigan Board of Regents (October 2011) • $25 Million allocation from Endowment – $500k per (could go up to $1M) • Co-investing along with other qualified investors – On same terms as investor • Must be University of Michigan Spin-Off Company – Use clause in license • First agreement (4/4), Crossbar Inc. (KPCB)
- 32. Zell-Lurie Institute • Part of the Ross School of Business – Offer classes – Started with a gift in 1999 • Includes Center for Venture Capital and Private Equity • Michigan Growth Capital Symposium – Large Midwest Venture Capital Conference • Wolverine Venture Fund – $3 Million Student-Managed Fund– early stage capital, (Co-invest) • Frankel Fund – Up to $100,000 per pre-seed investment • Entrepalooza • Other: – Dare to Dream (Grants) – Michigan Business Challenge – TechArb Student Accelerator – Gani Internships – Mayleben Venture Shaping Grants – Social Venture Fund
- 33. Center For Entrepreneurship • Part of the College of Engineering – Started in 2007 – Offer Classes – Certificate in Entrepreneurship • Tech Arb Student Incubator – 8th Cohort this Summer – Space, networking, mentorship • 1000 Pitches • Jump Start Grants • Michigan Clean Energy Venture Challenge
- 34. Business Engagement Center • Formed in 2007 • Connects Businesses to U-M – One-Stop-Shop for Business – Concierge/router • Help businesses… – Find Technology (Tech Transfer) – Sponsor Research (ORSP) – Donate(Development) – Find Students – Access Faculty Expertise
- 35. Medical Innovation Center • Founded in 2008 • Fellows Program – Post-graduate education program – Fellow come from various disciplines – Focus on developing medical innovations – Educate on commercialization • Assist others – Prototyping – Innovation assistance
- 36. Zell Entrepreneurship and Law (ZEAL) Program • Entrepreneurial Law Clinic – Help Student Entrepreneurs Give Law Students Practical Experience – Staffed by Law School Students – Supervision of Faculty and Well Known Firms • Helped 12 companies it first semester – Entity Formation – Intellectual Property – One Financing Deal • Had 43 companies apply for services • 16 spots for Fall 2012 – 97 students applied – Next Closest Law Clinic had 36 application
- 37. Master in Entrepreneurship • Joint between Business and Engineering – First Class, Fall 2012 – One year program (plus summer) • Move technologies through coursework • Includes Tech Transfer, Medical Innovation Center
- 38. Off campus activity We are not in this alone
- 39. Community • Creation of Ann Arbor SPARK – Tech Transfer Board 2005 – Place for our startups to land – Startup services • Events – Service provider events – Entrepreneurial Networking • BioArbor • A2 New Tech Meetup • MI Energy Forum • State and other services – MI SBTDC, Competitions (GLEQ, Accelerate Michigan), NEF, Etc.
- 40. Changes in the VC Community • Venture Michigan Fund (I & II) • MVCA EIR program • MVCA CEO Placement Program Bucking the trend • Number of firms growing • Assets under management are growing • Fund sizes are increasing
- 41. Moving in the Right Direction • 25 Venture Firms – 76 VC-backed companies – $2.6 Billion in Capital Under Management – $340 Million available capital • 6 Angel Investment Networks – $5 Million invested in 2010 – 19 companies • More than 80 out of state Venture Capital Firms active in Michigan
- 42. Takeaways • Hard to drive idea creation • Leverage Funding • Focus on Talent – Mentoring very important – Management team is critical – Getting the Right team, early
- 43. Thank You!!!! Megan Reichert-Kral – meganrk@umich.edu Wesley Huffstutter – weshuff@umich.edu @UMOTT