SSTI Excellence in TBED Awards

“One of the important things for a region developing a cluster strategy is to get a couple very prominent leaders to champion the effort.” – Lori LeRoy In a conversation with SSTI, Lori LeRoy, Vice President of Communications for BioCrossroads, shares her insight on how BioCrossroads serves as a catalyst for the continued growth of Indiana’s robust life sciences cluster. Lori credits the role that industry leaders and the collaborative nature of the state played in helping BioCrossroads achieve its mission. BioCrossroads was able to build buy-in from several key industry leaders that allowed them to get all of the state’s key stakeholders in the same room. During the interview, Lori stresses the importance of the need for buy-in to build a strong industry cluster. She also shares some secrets on how BioCrossroads has helped life sciences startups gain recognition and attract venture capital funding. The discussion continues to the Bioscience Research Institute – a life sciences-focused research institute launched in 2012. Lori shares a bit of history on how the institute was established by industry leaders and the collaborative environment that helped BioCrossroads raise over $50 million in funding to support research collaboration between industry and academia. To conclude, Lori offers several pieces of advice to organization looking to launch a cluster initiative including: Find your focus; Be specific on the goals – building collaboration, increasing capital, etc.; Establish reasonable and feasible goals; Do not thread the organization too thin; and, It’s okay to change the organization’s path based upon organizational strengths, areas of need for industry, and the opportunities that present themselves. About BioCrossroads BioCrossroads is Indiana’s initiative to help grow the life sciences, a public-private collaboration that supports the region’s research and corporate strengths while encouraging new business development. Over the past 12 years, BioCrossroads has served as a catalyst for growth within Indiana’s life sciences industry, raising more than $300 million in funding, organizing several venture capital and seed stage funds, and attracting $277 million in additional venture capital for Indiana life sciences companies. BioCrossroads has also helped to attract more than 3,000 new life sciences jobs and has provided support to more than 300 startup companies. Most of the funding that BioCrossroads has raised for multiple life sciences opportunities has come from foundation grants, venture capital, and industry investment, with less than 3 percent coming from state investment. Learn more… About the Excellence in TBED awards The SSTI Excellence in TBED awards recognize exceptional achievement in addressing elements that have been found in successful tech-based economies. These include a research base that generates new knowledge, mechanisms for transferring knowledge into the marketplace, an entrepreneurial culture, sources of risk capital, and a technically skilled workforce. For more information visit: http://www.sstiawards.org.

“We believe in the general principle that advice without capital or capital without advice are suboptimal models” – Bob Coy Bob Coy, president and CEO of CincyTech, discusses the structures of the for-profit seed stage investment funds under management by CincyTech. They have $30 million under management across three seed funds – half of which comes from the state-funded Third Frontier program. Bob shares that once a company is funded by CincyTech, the organization takes a seat on the board of directors and has access to services provide CincyTech and its partner organizations. Bob continues the conversation by discussing the types of companies they target and the investment process that includes pre-investment services and that allows them to due diligence on the company while helping them reach a stage that could make the company viable for CincyTech funding and follow-on investments. Bob shares his insight on how the organization has built a network of investors that invests alongside CincyTech and provides their expertise to startups. Bob concludes the conversation by providing his insight on how to build a strong investment team that includes successful entrepreneurs from a diverse number of industries and why this is vital for the success of venture development organizations and its client companies. Bob also provides some great advice to organizations looking into launching a seed stage fund: The organization must have the right team in place; Have an investment thesis that makes sense for your funds; Work with companies during the pre-investment stage to get them ready for an investment; Bring in outside experts to not only invest capital, but validate your judgement; and, Don’t just write a check and walk away; the organization has to continue to work with them toward a liquidity event. About CincyTech  CincyTech is a venture development organization whose mission is to drive talent and capital into promising startup companies in Southwest Ohio. Supported by grants from the Ohio Third Frontier, with matching grants from corporations, foundations, and local governments, CincyTech has $30 million under management across three for-profit seed funds and one follow-on fund. Since investment began in 2007, CincyTech has analyzed more than 3,000 inquiries, assisted 319 companies and invested in 52 companies, helping portfolio companies raise another $405 million in follow-on funding. The companies have generated $99 million in revenues and currently employ 609 people. Learn more… About the Excellence in TBED awards The SSTI Excellence in TBED awards recognize exceptional achievement in addressing elements that have been found in successful tech-based economies. These include a research base that generates new knowledge, mechanisms for transferring knowledge into the marketplace, an entrepreneurial culture, sources of risk capital, and a technically skilled workforce. For more information visit: http://www.sstiawards.org.

“Even if it takes tough love, it is important to help transition client companies from your incubator when the natural opportunity presents itself” – Patti Breedlove Patti Breedlove, the Director of the University of Florida’s Sid Martin Biotechnology Incubator (SMBI), shares her insight on how a university incubator can help commercialize academic research, create viable tech companies and spur economic development in a rural area. Patti begins the conversation by discussing how the SMBI has transformed and grown over the past 20 years. Patti continues the conversation by focusing on how the SMBI leverages the University of Florida’s resources and attracts talent to help their client companies. Patti concludes the conversation by providing some very salient pieces of advice to incubators looking to cultivate resilient, successful startups and commercialize academic technologies including: Since most university employees have never run a company, it is important to build a network of mentors and strong partnerships with investors, entrepreneurs, and the private sector as much as possible. While it must be respectful and cooperative, an incubator has to be a barrier that stands between the large bureaucracy of a university and the private sector which tends to be more nimble and operate differently. The incubator must be proactive, much quicker in responding, and able to customize to the needs of client companies. About the University of Florida’s Sid Martin Biotechnology Incubator Built in 1995, University of Florida’s Sid Martin Biotechnology Incubator (SMBI) is one of the country’s first bio-business incubators. The 40,000-square-foot bioscience complex was created with the goal of commercializing UF technologies around the life sciences and creating a local bioscience industry in the semi-rural town of Alachua, FL. Its companies and graduates have attracted more than $1.2 billion in equity investment, contracts, grants, and M&A activity. SMBI companies have created more than 2,000 high-wage jobs and have had an economic impact of well over $100 million per year in Alachua County. Learn more… About the Excellence in TBED awards The SSTI Excellence in TBED awards recognize exceptional achievement in addressing elements that have been found in successful tech-based economies. These include a research base that generates new knowledge, mechanisms for transferring knowledge into the marketplace, an entrepreneurial culture, sources of risk capital, and a technically skilled workforce. For more information visit: http://www.sstiawards.org.

“To build a successful accelerator program, it is important to have a strong network that includes investors, mentors, and corporate partners.” — Jim Jen Jim Jen, Executive Director of Innovation Works’ AlphaLab accelerator programs, shares his insight on how Innovation Works developed their two accelerator programs to take companies from early stages — whether an idea or initial product — and get them to where they can launch a working product, achieve customer traction and raise funding for growth. The conversation starts with Jim discussing the importance of building an accelerator program that fits within the ecosystem of the city or region that it serves. During the conversation, he shares with listeners the selection process of startups for both AlphaLab and AlphaLab Gear (hardware, robotics, and physical products accelerator). Jim also stresses the importance of a strong network that includes corporate partners and alumni to the successful transition of startups from the AlphaLab programs to a growing tech company. Jim concludes the conversation by sharing his thoughts on how economic development organizations can build a successful accelerator program: First, if your organization is considering an accelerator program, you should take a “step back” to understand what other regions and accelerators are doing, to think about your own region and its strengths, and to be very clear about what stage company you are targeting and how the program will help them. Second, building a network to support the accelerator program includes building a corporate community that can act as mentors or early customers for participating startups. About Innovation Works’ AlphaLab Accelerator Programs Launched in 2008, AlphaLab is an industry-leading startup accelerator developed and managed by Innovation Works, a technology-based economic development organization and the seventh-most-active early stage investor in the United States. The program provides companies with a $25,000 investment as well as access to AlphaLab’s extensive mentor network and free and discounted professional services. In 2013, Innovation Works launched AlphaLab Gear, a hardware and robotics accelerator that provides up to $50,000 investment and specific expertise in design, manufacturing and supply chain for physical product companies. Combined, AlphaLab and AlphaLab Gear have funded 100 startups that are among the fastest growing in the Pittsburgh region, attracting almost $100 million in follow on funding and creating several hundred high-skilled jobs throughout the Pittsburgh region. Learn more… About the Excellence in TBED awards The SSTI Excellence in TBED awards recognize exceptional achievement in addressing elements that have been found in successful tech-based economies. These include a research base that generates new knowledge, mechanisms for transferring knowledge into the marketplace, an entrepreneurial culture, sources of risk capital, and a technically skilled workforce. For more information visit: http://www.sstiawards.org.

“When you work with a corporation, you need to have a high level champion within the company.” – Mark Harris Mark Harris, President & CEO of the Illinois Science & Technology Coalition (ISTC), shares his insight on how to bring the startup community and Fortune 500 companies together. Initiated by ISTC, Corporate Startup Challenge acts as an intermediary and matchmaker between those two communities. Mark describes the first step of the Corporate Start Challenge as the discovery meeting. During this meeting, ISTC and senior team members representing the corporation discuss innovation needs of the company. Once innovation needs are identified, ISTC reaches out to almost 50 partner organizations (e.g., universities, incubators, accelerators, other economic development organizations) to identify a portfolio of startups that can address the specific innovation needs of the company. After due diligence is completed, those companies present at a demo day. Mark concludes by sharing three great pieces of advice for economic development organizations looking to align their region’s startups with industry leaders: Corporations need to view working with startups as a business decision, not charity; There must be connectivity within the innovation ecosystem of the state/regions with entrepreneurial support organizations willing to work together; and, There must be champions within the corporations who can make decisions and influence others to engage with startups. About the Illinois Science and Technology Coalition’s Corporate StartUp Challenge The Illinois Corporate-Startup Challenge is a bridge between the major corporations that serve as the backbone of Illinois’ economy and the startup businesses expected to power it through the 21st century. Launched in 2013 with a pilot group of five corporations, the Illinois Corporate-Startup Challenge assembles a class of Fortune 1000 corporations on a semiannual basis and pairs them with startup companies that address their innovation needs through a highly curated matchmaking process. The Illinois Corporate-Startup Challenge is administered by the Illinois Science & Technology Coalition, a member-driven non-profit created by he state of Illinois to grow the state’s innovation economy. The vision of the program is to recruit 30 Illinois Fortune 1000 corporations to participate in the program over three years and self-fund through corporate sponsorship. Learn more… About the Excellence in TBED awards The SSTI Excellence in TBED awards recognize exceptional achievement in addressing elements that have been found in successful tech-based economies. These include a research base that generates new knowledge, mechanisms for transferring knowledge into the marketplace, an entrepreneurial culture, sources of risk capital, and a technically skilled workforce. For more information visit: http://www.sstiawards.org.

Overview Established as the outcome of a community-led effort to catalyze the growth of startups in St. Louis, BioGenerator provides access to much-needed capital and resources, including advice on assembling talent and refining business plans to both first-time and seasoned entrepreneurs. Eric talks about the evolution of the organization and how its place in the community has grown substantially over the past few years. Within the region, BioGenerator and its partner organization, BioSTL, are working on recruiting and educating new angel investors. At the same time, Eric explains a renewed focus on becoming better at identifying sources of capital outside of the region as their portfolio matures. Eric describes some of the metrics collected by BioGenerator and points to the challenges of tracking metrics for young companies that are working in a space that takes a lot of time and capital to reach the point of exit. He offers the following advice for groups working to build entrepreneurial capacity, including: Understand your community’s assets and how best to leverage them; Choose an area of focus based on the most pressing priorities that need to be addressed in your region; Play to the expertise and support groups of the community; and, Operate as a startup with a sense of urgency. About BioGenerator The BioGenerator builds investable, sustainable bioscience companies in the St. Louis region by providing business and technical advice and support, early stage capital, and shared lab space and equipment. BioGenerator is the venture development organization of BioSTL, a regional collaboration to build St. Louis’ bioscience ecosystem. For 10 years, BioGenerator has helped reinvent St. Louis’ economy through startup activity. It has continuously improved its programs by enhancing entrepreneurial support and cultivating new private capital sources. To date, BioGenerator has funded 47 bioscience startups and leveraged $160 million in additional financing from a $7.6 million nonprofit investment — a ratio that exceeds 20:1. Additionally, the BioGenerator Accelerator Labs, a pre-incubator facility, is a unique model for creating capital efficient companies. About the Excellence in TBED Awards SSTI’s Excellence in TBED Awards recognize exceptional achievement in addressing elements that have been found in successful tech-based economies. These include a research base that generates new knowledge, mechanisms for transferring knowledge into the marketplace, an entrepreneurial culture, sources of risk capital, and a technically skilled workforce. For more information visit: http://www.sstiawards.org. Listen to the interview (approximately 17 minutes):

Overview Bruce describes the center’s role in the overall North Dakota economy and speaks to the importance of changing the culture among policymakers, city and state leaders to embrace innovation and entrepreneurship. Only after successfully changing the culture, he says, the UND Center for Innovation Foundation was able to build an ecosystem around angel and other capital programs. Since forming in 1984, the center has focused on three areas: Innovation; Entrepreneurship; and, Investment. After witnessing an outflow of capital to other regions, they changed their approach from trying to bring investors into the state to encouraging more local investment. They launched angel capital seminars to promote education and eventually formed nine angel funds around the region. During the interview, Bruce highlights the Dakota Venture Fund, a fully student-run venture fund. “We found unsophisticated students could successfully invest money for sophisticated investors,” Bruce said. The group has had tremendous success, and last year, launched a second for-profit fund. He talks about the factors that differentiate rural states from urban states and offers advice for fellow practitioners. About UND Center for Innovation Foundation As one of the first university-affiliated entrepreneur outreach centers in the nation, the University of North Dakota (UND) Center for Innovation Foundation has created a vibrant and diverse capital initiative tailored to the unique needs of a rural economy. With a strong continuum of programs that bring together state tax incentives, two federal programs (SBIR, EB-5), angel investors, and student-managed venture funds, the UND Center for Innovation helps technology-based entrepreneurs diversify the state’s economy and create jobs. This initiative has successfully launched nine angel investment funds and six more are under development. In five years, those nine funds have invested $24.3 million in 38 ventures. About the Excellence in TBED Awards SSTI’s Excellence in TBED Awards recognize exceptional achievement in addressing elements that have been found in successful tech-based economies. These include a research base that generates new knowledge, mechanisms for transferring knowledge into the marketplace, an entrepreneurial culture, sources of risk capital, and a technically skilled workforce. For more information visit: http://www.sstiawards.org. Listen to the interview (approximately 14 minutes):

Overview Susan opens the conversation by explaining the mission of the Massachusetts Life Sciences Center (MLSC), which is to strengthen the life sciences cluster and turn it into an innovation ecosystem. MLSC engages stakeholders in industry and academia to accomplish their mission with a focus on five life sciences sectors. A bottom-up approach to investing has proven effective for helping fill the gaps that hinder the pace and success of innovation, Susan adds. Through a competitive awards process, MLSC targets translational research, proof-of-concept funding, workforce development, infrastructure, and collaborative projects. Susan speaks to the value of engaging experts in the life sciences community to guide investments. Four important lessons learned are shared during the interview, which include: A bottom-up approach is consistent with the way innovation occurs; Investing in a pipeline of early-stage companies is critical; There is great value in making the program competitive; and, Engagement of experts in the community is key. About the Massachusetts Life Sciences Center The Massachusetts Life Sciences Center (MLSC) is an investment agency that supports life sciences innovation, research, development and commercialization. The MLSC is charged with implementing a 10-year, $1-billion, state-funded investment initiative. These investments create jobs and support advances that improve health and well-being. The MLSC offers the nation’s most comprehensive set of incentives and collaborative programs targeted to the life sciences ecosystem. These programs propel the growth that has made Massachusetts the global leader in life sciences. The MLSC creates new models for collaboration and partners with organizations, both public and private, around the world to promote innovation in the life sciences. About the Excellence in TBED Awards SSTI’s Excellence in TBED Awards recognize exceptional achievement in addressing elements that have been found in successful tech-based economies. These include a research base that generates new knowledge, mechanisms for transferring knowledge into the marketplace, an entrepreneurial culture, sources of risk capital, and a technically skilled workforce. For more information visit: http://www.sstiawards.org. Listen to the interview (approximately 22 minutes):

Overview Gordon opens the conversation with ASU’s philosophy of “entrepreneurship is democratized,” wherein the culture of innovation spans all facets of the university, not just at the business school. The role of the Entrepreneurship & Innovation Group (EIG) is taking this approach outside of academics to encourage an entrepreneurial climate in the community. Gordon talks about how EIG accomplishes this through two main programs: Co-working spaces in collaboration with public libraries and mentors; and, An accelerator program that forms teams around technologies to tap the potential of unused patents. He discusses his role as a mentor in one of the co-working spaces and describes the type of assistance most desired by entrepreneurs trying to start new companies. Typically, they seek feedback on ideas, ways to connect with the university and move their ideas forward, and the opportunity to meet like-minded individuals. EIG’s co-working spaces have gained a great deal of traction and interest from other states and regions. A large part of their success can be attributed to the more than 300 community mentors who lend their time and expertise, Gordon said. Additionally, he describes ASU’s Furnace program, which helps get technologies to market through a process of narrowing down commercially viable technologies and making them easily understood to entrepreneurs. Next steps for EIG include expanding the network of co-working spaces, adapting the Furnace model for two Department of Defense labs, and administering a new startup fund for early stage manufacturers. About ASU Entrepreneurship & Innovation Group ASU’s Entrepreneurship & Innovation Group (EIG) has developed four innovative programs designed to bring together the Greater Phoenix entrepreneurial ecosystem, attract new partners, and create thriving startups inside and outside the university. EIG’s creative use of existing resources and strong public and private sector support serves as a promising model for entrepreneurial and technology commercialization initiatives throughout the country. A technology transfer accelerator, a co-working network embedded in the public library system, and a startup school taught by practitioners are among the programs offered by EIG. About the Excellence in TBED Awards SSTI’s Excellence in TBED Awards recognize exceptional achievement in addressing elements that have been found in successful tech-based economies. These include a research base that generates new knowledge, mechanisms for transferring knowledge into the marketplace, an entrepreneurial culture, sources of risk capital, and a technically skilled workforce. For more information visit: http://www.sstiawards.org.

Overview Tim opens the conversation with a brief discussion on the early goals of the organization, which included working with the University of Colorado and engaging high-potential, early stage companies to boost their growth, sales and employment. Over the years, Innovation Center of the Rockies (ICR) has expanded their outreach to include all four universities in Colorado, one in Wyoming and they are in discussions to continue expanding their footprint. Tim describes what they found to be a similar challenge across the universities, which is the rate of invention tends to outpace the rate of commercialization. ICR helps tech transfer offices boost commercialization activity by matching industry experts with research and faculty to explore the commercial potential of technologies. A new company is formed about 1 in 10 times through this inventive and low-cost process that involves more than 1,500 volunteer advisors. Eric also talks about how their approach with faculty brings about trust and a greater willingness to work together. Advice for others seeking similar outcomes include: Understanding the needs of the university; Adapting your service offerings to fit the university needs; and, Trying for early successes to demonstrate positive impact. Making sure the faculty has a good experience with the business side makes them more likely to do it again, which in turn helps change the culture, Eric adds. About Innovation Center of the Rockies With firm footing in the Colorado entrepreneurial community, ICR draws from a pool of more than 1,500 volunteer advisors to provide expert matching for incubator clients in developing commercialization strategies for university inventions and help established companies overcome critical obstacles. A replicable model and formally organized network of business decision makers, entrepreneurs and mentors distinguish the program as a leader in the field. Efforts to commercialize research have resulted in the creation of 498 jobs since 2006, and ICR clients have attracted nearly $91 million in new capital. About the Excellence in TBED Awards SSTI’s Excellence in TBED Awards recognize exceptional achievement in addressing elements that have been found in successful tech-based economies. These include a research base that generates new knowledge, mechanisms for transferring knowledge into the marketplace, an entrepreneurial culture, sources of risk capital, and a technically skilled workforce. For more information visit: http://www.sstiawards.org. Listen to the interview (approximately 18 minutes):