Papers, Patents and …
Products
Jack Brittain, PhD
Pierre Lassonde Presidential Chair
Vice President, Technology Ventures
University of Utah
http://www.techventures.utah.edu/
Utah Transformed Operation
• 2004 “Technology Prevention
Organization”
• Throwing technologies over the wall
“hoping the coyotes will raise them”
• Bottom half of TTOs, ranked 96th
2008 Sugar Bowl Trophy
• 2008 Tied MIT #1 (2009 #1) in
number of spinoffs based on
University technology
• Top 10 ranked office NSF study
• FY 2006 to present:
Fortress Ruins
•
•
•
•
•
•
•
1,117 disclosures
306 new inventors
207 issued patents
376 executed agreements
124 start-up companies
over $170 million licensing and royalty revenues
over $250 million commercial-sponsored research
Economic Significance
“The economic significance of the research university goes
far beyond its role of education and training. For several
decades, university research has increasingly formed the
foundation of significant technological advancements.
These technologies enter the marketplace through research
collaborations with industry, licenses, and to an increasing
extent, university-driven efforts to turn new ideas into startup companies.”
Jan Crispin, Senior Research Economist.
The Economic Impact of Startup Companies
and Invention Licensees Originating from
Research at the University of Utah.
Bureau of Economic and Business Research,
2011.
Technology Value Curve
Spinoff Value
Generation
Where Universities
Traditionally Add Value
IDEA
PROOF OF
CONCEPT
PROTOTYPE
Services
• Prototype
• Incorporation
• Logo/website
• Corporate Secretary
• CFO Solutions
• Umbrella Insurance
• Market research
• Grants programs
COMMERCIAL
LAUNCH
Commercialization Stage
MARKET
EXPANSION
Utah Spinoff Development
31
Technologies
in Pipeline
(0 counted startups)
IDEA
PROOF OF
CONCEPT
162
Operating Companies
7,186 Utah Employees
Spinoff
Value
Over $39 million
Generation
Commercialization Grants
(2005-11)
over $300 million Start-up
Investments (2005-11)
(203 Start-ups 1970-2011)
PROTOTYPE
COMMERCIAL
LAUNCH
Commercialization Stage
MARKET
EXPANSION
Spinoff Development
Spinoff Value Generation
Phase 1
Formation
Phase 2
Business
Phase 3
Operating
• Legal
Formation
• Technology
License
• Product
Development
• Logo, web
• Product
development
grants
• Business
Plan
• Product
Validation
• Product
development
grants
• Angel &
Seed
Investors
• Customers
Testing
Product
• Investors
• Key
Managers
• Board of
Directors
• Bank Credit
Phase 4
Market
Entry
• Marketing/
Sales
• Strategic
Partnerships
• New
Products &
IP in
development
COMMERCIAL
LAUNCH
PROTOTYPE
Commercialization Stage
Phase 5
Long Term
Growth
MARKET
EXPANSION
Spinoff Results 2011
Spinoff Value Generation
Phase 1
Formation
Phase 2
Business
Phase 3
Operating
27
Companies
$755,000
Grants
$800,000
Investments
17
Employees
23
Companies
$4,430,000
Grants
$5,480,000
Investments
51
Employees
22
Companies
$12,832,000
Grants
$78,015,000
Investments
153
Employees
Phase 4
Market
Entry
Phase 5
Long Term
Growth
18
Companies
$8,137,000
Grants
$11,920,000
Investments
131
Employees
72
Companies
$13,200,000
Grants
$185,307,000
Investments
6,4150
Employees
COMMERCIAL
LAUNCH
PROTOTYPE
Commercialization Stage
MARKET
EXPANSION
Spinoff Partnerships
Spinoff Value Generation
Phase 1
Formation
27
Companies
$755,000
Grants
$800,000
Investments
17
Employees
2 Medical
Phase Devices
3
Phase 4
•Phase
USTAR
Business
Operating
Market
Accelerator
23
22
Entry
•Companies
Venture Bench
Accelerator
Companies
18
•$4,430,000
Software $12,832,000
Development
Companies
Grants
Grants
$8,137,000
Center Accelerator
$5,480,000
$78,015,000
Grants
• DOE Renewable
Energy
Investments
Investments
$11,920,000
51
153
Investments
Commercialization Center
Employees
Employees
UURF
Incubator
131
Employees
COMMERCIAL
LAUNCH
PROTOTYPE
Commercialization Stage
Phase 5
Long Term
Growth
72
Companies
$13,200,000
Grants
$185,307,000
Investments
6,4150
Employees
MARKET
EXPANSION
Accelerators
• Spanning Valley of Death
• The Gully of Inconvenience
• Leverages investor dollars
• Community engagement
• Student Opportunities:
Pole Vault Media
• Entrepreneurs In Residence
• Commercialization Advisory
Board/Company Collaborations
Tech Ventures Team >$100 million
Glenn Prestwich
Presidential Professor
Presidential Special Assistant
Entrepreneurial Faculty Assoc
Community of Faculty Entrepreneurs
280 faculty
10% total faculty
Ron Weiss, MD
retired ARUP CEO
Faculty Outreach
5-8 faculty case load
Troy D’Ambrosio
Seasoned Entrepreneur
Raised Capital
Director of Education Programs
Doug Lloyd/David Dolan
Serial Entrepreneurs
Entrepreneur in Residence
Seed Funds
• KickStart
• UpStart
• Lineagen
• Vendice
• Navigen
• 7 Revs
• UVF
> 100 business people
> 1700 students
Research
$250 million
federal research
Zach Miles, Interim Director and Associate Director
25 fulltime professionals + 30 student interns
Technology Commercialization/Commercial Research
250 “Inventions”
Commercialization
70 Potential Licenses
30 Potential Companies
Company
Disclosures
700
600
Number of Disclosures
CalTech
500
MIT
400
Disclosures
Predicted Disclosures
300
Top 50 Predicted
Goal
200
100
0
$0
$200
$400
$600
$800
$1,000
Millions of Federal Research Dollars
$1,200
Input –Outputs, Averages-Goals
Changes
• Changed from cost recovery to investment
model
– Cost recovery is inevitably a failure
– Investment logic produced tangible economic impact
– Changed the nature of our work to the positive
• Total Mission Integration
– Integrated student programs enhance University, engage faculty
– Commercial sponsored research gave us a sustainable business model
• Programs mitigate early stage risk
– Provide leverage for investors
– Encouraged capital formation
Investment Leverage
Risk Moderated Return
Universities and the
Innovation
Ecosystem
“Universities do not get enough credit for
the fact that as players in our innovation
ecosystem, they’re willing to gamble on
cash-strapped startups. At the end of the
day, who else is offering to pick up the
tab? … Warts and all, universities remain
willing to pay patent costs to support
expensive and increasingly sophisticated
IP strategies for startups who will likely
never be able to pay them back.”
- Melba Kurman, Triple Helix Blog, 25 Feb 2011
Leading Indicator: Investment
$700,000,000
$600,000,000
$500,000,000
Cumulative Grants Funding
$400,000,000
Cumulative Investment Funding
$300,000,000
Value Private Companies
$200,000,000
$100,000,000
$0
2005
2006
2007
2008
2009
2010
2011
Research and Innovation
Dr. Geoffrey Nicholson
inventor of the Post-It™:
“Research is the
transformation of money
into knowledge.
Innovation is the
transformation of knowledge
into money.”
As innovators, universities are unique in
their dedication to reinvesting innovation
returns in knowledge creation.
Total Mission Integration
• Educational programs > 1700 students
 Defining educational experience
 Huge positive for faculty
• Donor gifts over $25 million
 Lassonde Center
 Sorenson Discovery Center
 Annual sponsorships over $1 million
• University Venture Fund
 manages $18.5 million in Fund I
 Fund II target is $50 million
Student Programs
Eligible Colleges &
Universities
Student competitions
Students
# student
participants
Sponsoring Entity
Student Entrepreneur Conference
Introduction to student competitions and resources
Any
Open to all students
250
Lassonde
TechTitans
Statewide idea competition
Any
Open to all students
65
Lassonde
GreenTitans
Green tech or sustainability product idea competition
U only
Open to all students
20
Lassonde & Office of
Sustainability
Opportunity Quest
Statewide executive summary competition
U, USU, WSU , SLCC,
LDSB, UVU, SC, SU, Open to all students
DSC, Westminster
625
Lassonde
Utah Entrepreneur Challenge
Statewide business plan competition
Any student in Utah Open to all students
Bench-to-bedside
Med device design competition
U only
Med Students, MBAs, Bio
Engin teams
Bioengineering 1102 - Invent Class
Med device idea competition
U only
Freshman bioengineer
students enrolled in the class
MadSkills
Marketing and ad design competition
U only
All U students
U only
420
Lassonde
160
Tech Ventures & School of
Medicine
54
Engineering & Lassonde
TBD
Lassonde
U graduate students
22
Lassonde
U only
Any U student
50
Lassonde
U only
Any U student
25
DESB
Education programs
Lassonde New Venture Development MBA, PhD & JD student commercialize UU technologies
Foundry - University of Utah
University Venture Fund
Students launch their own business in a structure learning
environment
Students perform due diligence and transaction analysis
for $18M venture fund
Translational Medicine
Commercialization and business training for med students
U only
Med students
8
HHMI
bioDesign class
Bioengineering students work with med school faculty to
design med devices
U only
Senior Bioengineering
students
20
Bioengineering
Technology Commercialization Interns Interns in TCO and Tech Ventures
U only
Any U student
20
Tech Ventures & TCO
Intellectual property interships
U only
Doctoral candidates
8
Tech Ventures
U only
MD students and residents
TBD
U only
U undergraduates
TBD
Total Students
1747
bioInnovation M.S. Program
Innovation Scholars
Grad studnets work part-time with IP law firms
Bioengineering M.S. for medical students and medical
residents
Recognition
Surgery, Tech Ventures and
Bioengineering
Tech Ventures
Enriches Research
• Translation process
generates questions
• Creates new funding
opportunities
– Commercial sponsors tend
to be repeat customers
– Less grant writing is more time
for research
• Work with faculty who
want to be involved
– Does not matter if faculty opt out
– Faculty success generates interest
University Startups, Revenue and Equity
Revenues
Foundation Equity
$90,000,000
$25,000,000
$80,000,000
$70,000,000
$20,000,000
$60,000,000
$50,000,000
$15,000,000
$40,000,000
$30,000,000
$10,000,000
$20,000,000
$5,000,000
$10,000,000
$0
FY
2004
FY
2005
FY
2006
Commercial Research
FY
2007
FY
2008
FY
2009
FY
2010
Commercial Clinical Research
$0
FY
2011
2005
2006
2007
UURF Program Funding
Licensing
2008
2009
2010
2011
UURF Private Holdings Valuation
Start-ups
25
20
15
10
5
0
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
1989
1988
1987
1986
1985
1984
1983
1982
1981
1980
1979
1978
1977
1976
1975
1974
1973
1972
1971
1970
Year
Utah Economic Impact of
University of Utah Research
2010
External Research
Funding (total =
$451 million)
Total External
Research Funds
Spent in Utah
[1]
Total
Employment[1]
Total
Annual
Payroll
Total Tax
Contribution[2]
8,906
$378 million
$33.4 million
150
19,818
$947 million
$96.2 million
150
28,724
$1.3 billion
$129.6 million
$388 million
Technology
Commercialization
(19 new in FY10)
Total
Operating
Spinoff
Companies
$388 million
Bureau of Economic and Business Research, 2010 and 2011. Includes direct, indirect, and induced employment.
[2] State and local taxes.
Western
Innovation
Network
Founding Members
Full Network
WIN is about collaboration
• NSF funded Partnership for Innovation (PFI) grant to
explore universities collaboration model to enhance
commercialization
– University research yields 1 start-up per
$93 million in funding
– U.S. spent nearly $60 billion
– 644 new companies
– Can we do better?
• Energy Commercialization
Center (ECC) is related
– DOE grant
– Includes National Labs
What if U.S. was doing as well?
Utah:
• 1 Spinoff per $12 million
in federal research
•Over 10,000
spinoffs per year
•After 5 years, over
5 million jobs
U.S. potential results:
• 1 spinoff per $25 million
in federal research
= 1,800 spinoffs
• $18 billion other federal
research programs
= 1,120 spinoffs
• 2 spinoffs for 3,600 nonresearch institutions
= 7,200 spinoffs
WIN Programs
• Shared research
resources
– improve utilization
– support commercial
research
• Commercialization best
practices
– Pooled IP assets
– Commercialization service for non-research colleges
• Regionalize deal flow
– Connect start-ups & seed capital funds
– Improve matching with human capital
Full Network
Western
Innovation
Network
Done right,
commercialization program …
• Enhances faculty
research
• Defining educational
opportunities for
students
• Positive community
contributions and
partnerships
Winning Together, Oklahoma Marathon