University of WisconsinMadison
New Business Startup
Initiative
Allen J. Dines
Assistant Director
Office of Corporate Relations
May 2006
Madison: a “Hotbed of
Biocapitalism”
• Some highlights about Madison from Forbes Magazine
(May 2004):
– In the past 10 years, 120 new tech companies employing 8,000
people
– Average salary $60,000. 2% unemployment vs. 5.5% for country.
– University employs 17,000 but helped create 70,000 jobs,
generating $4.7B in direct and indirect output. (NorthStar
Economics)
– 2% of Madison’s population hold advanced degrees – the highest
concentration of advanced degrees in the country
Slide 2 May, 2006
Prepared by Allen Dines, Asst. Dir. Corporate Relations
UW Research and Company
Formation Metrics
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•
•
•
•
235 companies spun out of UW-Madison*
Aggregate gross revenues exceed $1billion
98% still in Wisconsin
About 50% have received professional investment
Examples of wealth created by local startups:
– Bone Care > Genzyme ($600 mil)
– Tetrionics > Sigma Aldrich ($85 mil)
– Pan Vera > Aurora/Invitrogen ($90 mil)
* Source: P. Z. Sobocinski, Creating High Tech Business Growth in Wisconsin, 1998, updated, 2005
Slide 3 May, 2006
Prepared by Allen Dines, Asst. Dir. Corporate Relations
Why License University
Technology to Startups
• Many technologies are too early or risky to
attract established companies
• Inventor interest
• Promote local economic growth
• Promote ties to local hi-tech business for
sponsored research
• Possible financial rewards
Slide 4 May, 2006
Prepared by Allen Dines, Asst. Dir. Corporate Relations
Ingredients for Startup
Business Creation
Technology
Implementation
Plan
Management
Slide 5 May, 2006
Prepared by Allen Dines, Asst. Dir. Corporate Relations
Capital
Wisconsin Resources for
Startup Creation
Technology
Implementation
Capital
Plan
Management
Slide 6 May, 2006
Prepared by Allen Dines, Asst. Dir. Corporate Relations
Models for University
Startup Development
Hands-in-pocket: Traditional policies and practices
Hands-Off:
Policies / practices that encourage start-ups
Hands-On:
University takes active role in forming the startup as
a licensee
Up to your Elbows: University takes active formation and operational
role (investment, incubation, management)
Slide 7 May, 2006
Prepared by Allen Dines, Asst. Dir. Corporate Relations
Startup Development at UW Madison:
A Blend of “Hands-on” and “Hands-off”
Roles in Formation
Flexible
Licensing
Terms
Progressive
University
Policies
Roles in Operations
Business
Developmt
Assistance
Assist in
Recruiting
Talent
Assist in
Recruiting
Funding
Participate in
Business
Operations
Direct
Investment
“Hands-inPocket”
“HandsOff”
X
X
x
x
x
“HandsOn”
X
X
X
X
X
“Up-toyourElbows”
X
X
X
X
X
Slide 8 May, 2006
Prepared by Allen Dines, Asst. Dir. Corporate Relations
X
X
The players in UW-Madison
Startup Business Development
•
Office of Corporate Relations
– Assists startups with business connections
– Provides faculty/staff with single point of entry access to UW resources
– Overall program focus, integration and communications
•
•
WARF - Patents, licensing, guidance, leadership
University Research Park
– Encourages partnerships between business and UW researchers
– Provides a place to grow for UW-related businesses
•
School of Business
– Weinert Center for Entrepreneurship
– Business Technology Development Institute
•
Campus-wide resources
– UW Technology Entrepreneurship Cooperative
– Wisconsin TechSearch
– Entrepreneurship Association
Slide 9 May, 2006
Prepared by Allen Dines, Asst. Dir. Corporate Relations
Resources at UW-Madison to
help Startup Businesses
Pre-startup initiative
Post-startup initiative
Assistance
Consultation/referrals (OCR)
Gap funding (I&EDR)
Short courses (TBDI)
Licensing assistance (WARF)
Planning/analysis (WAVE)
Business incubation (URP)
Mentoring program (pending)
Micro-grants program
UW Library access point at Univ.
Research Park
Events
Tech Transfer Seminar Series (Graduate
School)
High Tech Happy Hour (OCR, et al)
Entrepreneurship Association
Ad Hoc events (various)
Early Stage CEO Breakfasts
First Look Investor Forums
WARF Gilson Series Seminars
WARF Gilson Researcher Roundtables
(Nov05)
Publications
Entrepreneurship resources website
(OCR)
SBIR/STTR support website (DOC)
Guide to new business ventures UWMadison
Inventing Wisconsin DVD
Slide 10 May, 2006
Prepared by Allen Dines, Asst. Dir. Corporate Relations
WARF Startup Development
Support
• WARF/OCR Startup Initiative Partnership
• Disclosure reviews to identify startup opportunities early
– Historical mechanism: Inventor/faculty driven
– Current focus: market-opportunity driven
• Licensing
– Standstill pending license
– Equity in lieu of cash license deals
• Follow up monitoring/support
• Gilson entrepreneurship seminar series and research
roundtables
Slide 11 May, 2006
Prepared by Allen Dines, Asst. Dir. Corporate Relations
The UW-Madison is Only Part
of the Solution
State-wide Institutions
- Department of Commerce
- Wisconsin Technology Council
- Wis Entrepreneurs Network
- Wisconsin Angel Network
Financial Resources
- Friends and family
- Grants (SBIR/STTR)
- Angels
- Venture Capital
- Corporate Partnering
- Banks
Slide 12 May, 2006
Industry
Infrastructure
Service providers to
Hi-tech companies
-Legal
-Accounting
-Business planning
-Search/recruiting
-Insurance
-Public relations
- Facilities/equipment
- Prototyping shops
University
Resources
- OCR
- WARF
- URP
- UW-TEC
- WAVE
- TBDI
- TechSearch
Networking Organizations
WIN – WBMA –Accelerate Madison
Prepared by Allen Dines, Asst. Dir. Corporate Relations
Working Conclusions
on How to Foster Startups
• Connect faculty inventors early with
– Management-savvy risk-takers (entrepreneurs)
– High-tech-savvy service providers
• Focus on the business opportunity, not the
technology innovation
• Cultivate angels and VCs seeking seed
stage investments
• Manage faculty/inventor expectations
Slide 13 May, 2006
Prepared by Allen Dines, Asst. Dir. Corporate Relations
In summary…
We need to move from this
Technology
Implementation
Capital
Plan
Management
Slide 14 May, 2006
Prepared by Allen Dines, Asst. Dir. Corporate Relations
……to This
Technology
Implementation
Plan
Management
Slide 15 May, 2006
Prepared by Allen Dines, Asst. Dir. Corporate Relations
Capital
For more information:
•
My Email: ajdines@wisc.edu
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Startup Guide: http://www.corprelations.wisc.edu/docs/startupguide.pdf
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OCR Entrepreneur’s Page:
http://www.corprelations.wisc.edu/entrepreneurs.html
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WARF Startups Webpage http://www.warf.org/inventors/index.jsp?cid=16
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Graduate School Commercialization Grants
http://info.gradsch.wisc.edu/research/techtrfgrants/grantopps.html
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SBIR/STTR Information http://www.wisconsinsbir.org/
•
Regional Hi-Tech News, Commentary & Analysis http://wistechnology.com
Slide 16 May, 2006
Prepared by Allen Dines, Asst. Dir. Corporate Relations