Supporting and building science based startups Wiley Larsen
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The document discusses the challenges and potential of building science-based startups at Arizona State University, highlighting issues such as the limited number of successful company launches, funding barriers, and the need for better mentorship and management. Various examples of startups and funding opportunities are provided, illustrating the stages and difficulties faced by student-led initiatives. Recommendations for support include access to mentoring, capital, and suitable workspace to enhance the startup ecosystem.
Supporting and building science based startups Wiley Larsen
- 1. GIST MASTER CLASS Supporting and Building Science-Based Startups Wiley Larsen Program Manager Arizona State University
- 2. university startup challenges • Limited number of company successes vs. launches • Definition- ROI, job creation, media coverage, other? • Lack of qualified management and access to early stage capital • Reactionary process to faculty startups • Underutilized ASU assets applied to outside company engagement • Missed revenue opportunities • Fragmented venture development activities across ASU enterprise • Less-than-precise reporting on economic development activity
- 3. Immuno- Signature Johnston/ Woodbury Bill Colston, CEO $15M capital raised; 33 employees Neurostim- Ultrasound Jamie Tyler Isy Goldwasser, CEO $20M capital raised; 25 employees Zinc-air battery Cody Friessen Chuck Ensign, CEO $125M+ capital raised; 120 employees anatomy of a successful IP-based startup HealthTell Thync Fluidic
- 4. anatomy of student startup David Frakes, Faculty Haithem Babacker, PhD Student + CEO Robert Green, Mentor $20K Student Entrepreneurship Program Endovantage Vivek Kaparthi, MBA Student, CEO lots of mentors Raised $2M) ---- CTO -------- CEO $250K Arizona Innovation Challenge, $1M Angel Funding, 510K FDA submitted, In Revenue, 8 FTE NeoLight
- 5. Typical University Startup idea grant-funded research invention disclosure form a company license?
- 6. Typical University Startup - Challenges idea grant-funded research invention disclosure form a company license ? » CEO is university tenured professor » Research is early/ongoing » Difficulty raising Funding » “Business Plan” is unrealistic » Project fizzles out – no one is working full time on it. » or, if it gets to revenue, it becomes a service model with 1-5 employees » researcher moves on to new idea
- 7. what its starting to look like… » Identifying PhD students or postdocs as founders » Full-time faculty are advisors but not founders (minority owners) » Research is still ongoing but becoming more customer focused. » More deliberate search for Product-Market Fit » Non-faculty founders are often more coachable and receptive to mentoring student led research project invention disclosure student startup formed student funding programs leveraged economic development funds accessed friends/family and angel funding
- 9. what its starting to look like… challenges » Recent graduates are young and have difficulty raising venture funding » Proof of concept of the solution is accomplished but team doesn’t know how to scale. » Product doesn’t perform as well at scale » Sales plateau – never gains traction outside student led research project invention disclosure student startup formed student funding programs leveraged economic development funds accessed friends/family and angel funding
- 10. Supporting Academic Startups » Mentorship/Training » Space » Access to capital
- 11. Supporting Academic Startups » Mentorship/Training » Venture Development School TEST – BUILD -- SCALE » Venture Mentors – » Industry specific, one year assignment » Subject Matter Experts – Legal, Marketing, Finance, etc. » Generalists
- 12. Supporting Academic Startups » Space » Off-campus office space and Conflict of Interest » Off-campus lab space » contracting with university resources “Sponsored Research” » Light Manufacturing Space – Space for growth » “Free Space” capped at 2 yrs
- 13. Supporting Academic Startups » Space » Perks – Other business services at a discount » Legal » Marketing, Media, and Print » Product design » Financial services – banking and accounting
- 14. Supporting Academic Startups » Access to capital » Seed grants/Local econ development State Innovation Grants Local Foundation Grants Startup Pitch Competitions $10,000 to $250,000
- 15. Supporting Academic Startups » Access to capital » Private Seed Funding – Friends & Family, Angel $50,000 to $1,000,000
- 16. Supporting Academic Startups » Access to capital » Federal grants $2000 to $1,500,000 Eligible for $750,000 for beta testing and commercial deployment (deadline occurs 2 yrs after Phase I award) NSF SBIR Phase II Eligible for $225,000 for proof-of- concept and prototyping (next deadline: June 2017) NSF SBIR Phase I Eligible for $50,000 in funding for customer discovery (next deadline: 3/15/17) NSF I-Corps $2000 in funding to begin customer discovery (next deadline 1/13/17) ASU "TEST"
- 17. Supporting Academic Startups » Access to capital – Total Value – “Seed” $10,000 to $2,500,000 Grants & Convertible Notes
- 18. Supporting Academic Startups » Access to capital » Venture Funding ? YES – If management is in place David Frakes, Faculty Haithem Babacker, PhD Student + C0O Robert Green, CEO $20K Student Entrepreneurship Program $250K Arizona Innovation Challenge, $1M Angel Funding, 510K FDA submitted, In Revenue, 8 FTE David Frakes Next idea? New PhD Student?
- 19. don’t know where to start? 10% - First contact 25% - First meeting with TTO 50% - Wants to do startup 60% - LLC formed 70% - First Draft License Agreement 80% - Near agreement 90% - Final draft - ready to sign 100% - License signed