A definition..
“My son is now an ‘entrepreneur’. That’s what
you are called if you don’t have a job.”
Ted Turner
Another definition…
“An entrepreneur jumps off a cliff and
assembles the airplane on the way down…”
Reid Hoffman, founder of LinkedIn.com
Entrepreneurship
• Serve a relatively large external constituency, whose
measured reaction to alternative proposals is central to
determining its success or failure.
• Propose a product or service, broadly defined, that the
external constituency would appreciate, based on an in-depth
understanding of the culture, values and needs of the
constituency.
• Include the design and implementation of the product or
service, recognizing all of the physical, economic, and social
constraints that would impede adoption, or at minimum a
plan for doing so that has resolved all questions of feasibility
and cost.
• Be evaluated by the external constituency itself, not just the
team or other inside parties (e.g. an instructor).
Deep Disciplinary Knowledge
Broader, Enabling Skills and Knowledge
Deep Disciplinary Knowledge
A Great Engineers know more
than Engineering
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Creativity & Innovation: The ability to identify and characterize
problems in the face of uncertainty and imperfect information, and to
create new solutions.
Entrepreneurial Mindset: The desire and capability to make a
difference by championing and managing needed change, including
effective goal-setting, persistence and an ability to manage risk.
Intercultural Skills: The ability to interact effectively across cultures
and around the globe.
Collaborative Spirit: A propensity for working in teams, including an
understanding of the opportunities provided by diversity, and strong
interpersonal skills.
Social & Environmental Responsibility: An understanding of human,
social and environmental impacts, and the ethical tools to make
sustainable and responsible decisions.
Effective Communication: The ability to communicate professionally in
any setting.
First Michigan Story
• In 1980ties: Weather class is adding a telnet
component “UM-Weather”
• NSF supported to create first interactive
graphics (Blue Skies) using NSFNet
• Involved a number of motivated students,
some of which had the idea to take this idea
forward.
1988
Wunderground.com
• Formed with Alan
Steremberg as a CEO
• Jeff Masters one of the
top content providers
and bloggers
• Among top 100
websites
• Locations in A2 and SF
July 2, 2012
• Privately held, mostly
by founders
• Acquired by
weather.com
• Mostly because of it’s
data and technology
capabilities
Second Michigan Story
• Brandon McNaughton
– Applied Physics PhD, 2007
– Founder and CTO of Life Magnetics
– Raised $1M of seed-funds
“The Start Up”
The Life Magnetics Story
• August 2009: Founded Life
Magnetics, Inc.
• April 2010: Project Funded by
Coulter Foundation.
• July 2010: Technology Optioned
from U-M.
• July 2010: Closed Series A
Financing Round with Arboretum
Ventures.
• September 2010: Secured CEO –
Bill Wood (Mentor in Residence
Program).
The Real Story:
It Took A Lot of People, Resources, and Time
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2002 BS in Physics and near BA in Organizational Management.
2002 Started PhD in the Applied Physics Program (at U-M).
2003 First interaction with Tech Transfer.
2006 Introduced to Duane Newton.
2006-7 Published on idea and PhD, Raoul Kopelman.
2007 Patent Application.
2007 Post Doc Support from Roy Clarke, Physics.
2007 SPARK Entrepreneur Boot Camp (Tech Transfer).
2007 First introduced to investors (Tech Transfer).
2008 Funded by MUCI (with Roy Clarke & Andy McColm).
2008 Funded by Coulter (with Alan Hunt & Jim O’Connell).
2008 Fellowship from MICHR (PTSP).
2008 Finance 629 (David Brophy).
2008 1000 Pitches Finalists (CFE - with a grad student).
2008 Finalist Collegiate Inventors Competition (Inventors Hall of Fame).
2009 Bay Area Trip – Pitch Competition Winner (CFE).
2009 Funded by NIH (with Raoul Kopelman).
2009 Funded by Coulter.
2009 Research Scientist in BME, Alan Hunt.
2009 MBA student’s help (Marcel Gani/ZLI, CFE, and MUCI)
2009 MichBio Best Company Presentation (Tech Transfer).
Other competitions, events, meetings, sleepless nights, etc.
Many more…
Entrepreneurship Experience Crossing the Invisible Bridge
Entrepreneurial Ecosystem
• Characteristics of an Entrepreneurial
Ecosystem
– Great access to People (Mentors, etc.)
– Early-stage Funding Opportunities
• Encourage entrepreneurs to pursue ideas
• Keep entrepreneurs pursuing their idea
– Environments (physical
space/incubators/people)
Third Michigan Story
140
infants die every hour worldwide.
Warmilu
Warmilu LLC
LLC
Total Market Opportunity
$15B
$292.86M
$2.23M
Warmilu
Warmilu LLC
LLC
“One to Love, One to Give”
• Discussion of BOGO Business Model &
Challenges
Information
Blanket
Blanket America
Happy Blankie
Warmilu
Warmilu LLC
LLC
Business Model
• Sell Infant Blanket to Retailers,
Distributors, and Online
• Infantino, Babies “R” Us
• Cost Per Blanket: $8
• Sold: ~$25
• Outside Manufacturer for Blanket
Warmilu
Warmilu LLC
LLC
Next Steps
• Design of the Blanket
• Valerie from Carters, Designer
• Marketing & Communication
• Website
• Financials
• Bill Mayer
• Continuing to Test Blanket
• Team
Warmilu
Warmilu LLC
LLC
The Team
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Grace Hsia (BSE) – Chief Legal Officer
Rachel Rademacher (BSE) – Chief Technical Officer
Austin Ruby (BBA) – Head Business Officer
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Weidong Chen (BSE) – Chief of Industrial Operations
Shwetha Maddur (BSE) – Chief of Medical Relations
Heather Wilsher (BSE) – Chief Information Officer
Ta-Wei Lin (MHSA) – Business Intern
Devon Triplett (MS) – Business Intern
Vivek Pejaver (BSE) –Engineering Intern
Warmilu
Warmilu LLC
LLC
So, why entrepreneurship?
The Problem
We need to change how we educate the future
leaders of the world
because the speed of change and
innovation has become so rapid…
the US is losing ground in innovation and
manufacturing…
the Michigan economy is in need of
reinvention…
the US economy is in need of
reinvigoration…
Impact Driven Entrepreneurship
is the Solution
• We live in a time of change that requires
leaders who embrace change, and adapt
faster than their competitors
• Entrepreneurs excel in this environment of
risk taking and seizing of opportunities
• Entrepreneurship is a mindset that can and
must be taught to enable future leaders
• Impact driven entrepreneurs are those who
make a positive impact on society, the
economy or the environment
• Attract top students and faculty by
enabling their passion for impact
driven entrepreneurship
• Infuse entrepreneurship throughout
the university, one of the Nation’s
largest research universities
• Educate using new approaches,
integrating students through an
entrepreneurial culture
• Activate our extended network of
alumni to fuel an exponential growth
in impact
The CFE
Approach
Three Pillars
Building Skills through
Experiential Learning
Teaching
Connecting
Building an
Entrepreneurial
Ecosystem
Building
Creating startup
companies
UM Challenge: Scaling up
Entrepreneurs
Technologies
Companies
Number of people
Experiential
Learning
Impact of output
Engagement
Solution:
Put programs in place to move people and their ideas upwards
Experiential Learning
Entrepreneurship
Exploration
Experiential
Learning
• Distinguished Innovator
Speaker Series
• Entrepreneurship
Research
• Program in
Entrepreneurship
• Social Venture Creation
• i-Corps, practica
Graduate Program in
Entrepreneurship
Program
• Graduate Program in
High Tech
Entrepreneurship
$160,000 / in
yrour entrepreneurial
$150,000
/ yr over the last 5 semesters
$330,000 /
2,500 Enrollments
courses
yr
100 Students have declared their participation in our program in entrepreneurship
Joint Masters in Entrepreneurship
best-in-class graduate program; enhanced opportunities for all
August
Technology
Bootcamp
Business
Bootcamp
Fall
Winter
Summer
Identifying
Opportunities &
Innovations
Intellectual
Property
Entrepreneurial
Leadership
Ethics in Design
and
Entrepreneurship
Design Process
Tech Business
Models
Technology
Elective
Technology
Elective
Business
Strategy
Value Chain
Pro Formas and
Financial
Modeling
Growing the
Entrepreneurial
Enterprise
Entrepreneurial
Marketing
Entrepreneurial
Finance
Business
Elective
Business
Elective
Practicum 1
Practicum 2
Launch/Internsh
ip
Partnership with Ross School of Business
Creating New Ventures
Starts with an idea…
Nurtures that idea…
• 1000 Pitches
• Dare to Dream
• Mentorship
• Entrepreneurial Learning
Center (e-dorm)
Grows into a
business…
• Business Accelerator
(TechArb)
3,000 Students have submitted video business idea pitches last year
400+ Students (150 teams) have submitted business proposals to D2D last year
20 Student companies exited TechArb this spring, 25 new companies in there now
Small Company Job Fair
TechArb – Business Accelerator
Lecture Tools
CWIC Technologies
Sentient Wings
UM Yearly Entrepreneurial
Impact of Research: Some
Numbers
• Research funding: $1.2B
• Number of Invention Reports: 300
• Number of Agreements and Transfers: 100
• Number of Startups based on University
Research: 10
• Licensing revenue: $40M
• How can we be a lot better?
Investment
The Innovation Gap
Technology
Push
Market Pull
GAP
Entrepreneurial Translation
1. Innovation Pool
Deep Enough?
2. Lack of Knowledge
about Market Needs
3. Lack of Alignment of University Value System
4. Lack of Training about Entrepreneurial
Processes and Forces
Principles
• Funded research must be new and
between at least two units
• Immediate funding (no formal review)
• Three tokens per cube
• Funds used to support UGs,
Grads, Postdocs
• Campus-wide innovation conferences
showcase results and lessons learned
Investment
The Innovation Gap
Technology
Push
Market Pull
GAP
Financial and Personnel
Support (Mentors)
Federally funded
Research, IP
Talent, Facilities
Partnership
Educational Opport.
Ideas
Needs and Ideas
Translation
Talent
Entrepreneurial Translation
• Support collaborative research that addresses
unmet clinical needs and leads to
improvements in health care and to commercial
products.
• Examples of desirable outcomes include
inventions, patents, improved diagnosis and
treatment of disease, commercial partnerships,
start-up companies and follow-on funding
targeted toward these same outcomes.
• Always includes one clinical researcher and one
bio-medical researcher.
• U of Michigan distributes a minimum of
$1,000,000 annually
• The program is managed by an Oversight
Committee of industry professionals and faculty
• During the last 7 years we’ve funded 26
Projects investing over $4.5 Million
• All Projects are annually funded and quarterly
reviewed by the Oversight Committee
– There have been 4 University Startup companies
formed.
• Histosonics; $11 million in venture funding.
• Tissue Regeneration Services; $2.5 million in venture
funding
• Incept Biosystems; purchased by Origio in 2010
• Life Magnetics; $2.2 million in venture funding
– One Technology License to a University startup
company 3-D Biomatrix
– Three startup companies that are currently in the
formation stages;
• STEL Technologies; focusing upon veterinary and human
ACL replacement
• Rhythm Solutions; Atrial Fibrillation Detection
• Yet to be named New Co; multiplex array technology for
research and clinical diagnostics
Goals and Approach
• Foster Entrepreneurship that will lead to
commercialization of technology previously
supported by government
– Uses customer and business model development
– Focus on startups as translation mechanism
– Creates teams of 3: Principal investigator,
entrepreneurial lead (Recent PhD graduate), and
mentor
– Full engagement requiring 5-10 customer
contacts per week for duration of 6 weeks
• University of Michigan is one of three US
training sites
Pasteur’s Quadrant (*)
Incremental,
safe research
(Too Many)