Creating and Funding Startup Ventures at UWMadison

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Creating and Funding Startup Ventures at
UW-Madison

• National Council for Entrepreneurial Technology
  Transfer
• Audio WebConference
• April 23, 2008

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Speakers

• Overview - Allen Dines, UW-Madison Office of
  Corporate Relations
• Technology Transfer Craig Christianson,
  Wisconsin Alumni Research Foundation
• Entrepreneurship Dan Olszewski, School of
  Business
• Early Stage finance Joe Kremer, Wisconsin Angel
  Network

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UW-Madison a Snapshot

• Ranked 2nd in RD spending nationally (NSF 2006)
• 400 invention disclosures annually
• University does not have a tech transfer function
• Wisconsin Alumni Research Foundation (WARF) an
  independent private foundation since 1925
• Madison, WI college town/state capital, pop.
  230,000

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UW-Madison Venture Creation Metrics

• 235 companies spun out of UW-Madison
• Aggregate gross revenues exceed 1billion
• 98 still in Wisconsin
• About 50 have received investment capital
• Examples of wealth created by local startups
• Tomotherapy IPO 2007 (mkt cap 900 mil)
• Nimblegen gt Roche (273 mil)
• Jellyfish gt Microsoft (50 mil)
• Bone Care gt Genzyme (600 mil)
• Tetrionics gt Sigma Aldrich (85 mil)
• Pan Vera gt Aurora/Invitrogen (90 mil)

Source P. Z. Sobocinski, Creating High Tech
Business Growth in Wisconsin, 1998, updated, 2005
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The Players in UW-Madison Startup Business
Development

• 1925 WARF - Patents, licensing, guidance,
  special programs
• 1986 University Research Park (URP)
• Encourages partnerships between business and UW
  researchers
• Provides a place to grow for UW-related
  businesses
• School of Business
• 1998 Weinert Applied Ventures and
  Entrepreneurship (WAVE)
• 2002 Business Technology Development Institute
  (TBDI)
• Office of Corporate Relations (OCR)
• 2004 UW Startup Initiative assists startups
  with business/finance connections
• 2007 Kauffman Campus-Wide Entrepreneurship Program

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UW-Madison Services for Startup Businesses

• Consultation to lay out the roadmap for new
  enterprise formation
• Commercial feasibility analysis support WAVE
  MS in Biotech programs
• Periodic networking events and seminars on
  business formation/management topics
• Connections with University resources
• Coml grants WARF MS in Biotech
  WAVE URP SBDC/TBDI
• Introductions to and coordination with outside
  resources
• Capital Management talent Business
  planning Professional services

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Resources at UW-Madison to Help Startup Businesses
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First Look Investor Forums

• Invitational meetings for early stage angel and
  VC investors
• Presentations cover research on topics of
  commercial relevance
• To date 29 researchers have presented at 11
  forums
• 14 new companies have evolved from technology
  presented at a First Look Forum
• Networking focus connects faculty with investment
  community
• Not a venue for deals

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Early Stage CEO Breakfasts

• Networking for formation-stage company CEOs
• Informal bi-monthly breakfast meetings
• Focus on sharing solutions to common
  formation-stage issues
• Diverse participants Industry sectors include
  biotech, medical devices, web services, energy,
  retail
• Open to CEOs Only
• Participants may or may not represent companies
  based on UW-Research

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Madison Area Early Stage Funding Resources
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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

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For more information

• My Email ajdines_at_wisc.edu
• UW-Madison Office of Corporate Relations
  Entrepreneurs Page http//www.ocr.wisc.edu/entre
  preneurs.html
• Next Up. We turn to Craig to tell us about WARF