MTECH Partnerships Leveraging University Innovation to Strengthen Maryland Companies

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MTECH PartnershipsLeveraging University
Innovation to Strengthen Maryland Companies
Programs Maryland Industrial Partnerships Program
(MIPS) faculty research to enhance company
competitiveness Maryland Technology Extension
Service (MTES) manufacturing solutions for
Maryland companies Bioprocess Research and
Education Program bioprocess scale-up, technical
assistance, and training Maryland Performance
Excellence Awards driving performance
excellence and quality in Maryland
organizations ASPIRE undergraduate research
projects
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Maryland Industrial Partnerships

• MIPS is a 2.2 M fund for academic-industrial RD
• Enabling technology commercialization in Maryland
  through jointly funded university-company RD
• Faculty and students gain funding to engage in
  commercially-relevant research
• Companies leverage their RD funding and gain
  access to faculty expertise
• Disciplines Engineering, and computer, physical
  and life sciences
• Scientific/technical evaluation
• Business/economic review

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Maryland Industrial Partnerships

• Successful MIPS Products Manufactured in Maryland
• Black Deckers Bullet Speed Tip Masonry Drill
  Bit
• MedImmunes Synagis
• Quantum Sail Design Groups offwind performance
  racing sails
• Marteks Formulaid
• Navmars Unmanned surveillance vehicle
• Hughes Network Systems DIRECWAY satellite
  internet product
• Cumulative revenue gt11.6 billion

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Maryland Technology Extension Service

• MTES is funded by UMCP, DBED and NIST,
• MTES Mission is Twofold
• Apply Clark School of Engineering resources to
  benefit Maryland manufacturers.
• Strengthen the competitiveness of Maryland
  manufacturers by providing information, decision
  support, and implementation assistance.

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MTES Services

• Operations and Production Improvement
• Lean manufacturing applications
• Process and Plant layout
• Logistics
• Environmental Pollution prevention assessments
• Engineering and RD Product improvement
• Business and Management Continuous Innovation
  Initiative

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Maryland Technology Extension Service

• MTES Regions

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Maryland Technology Extension Service

• MTES Impacts 97.2 M assisting Maryland
  manufacturers
• Increased and Retain Sales
• Cost savings
• Jobs Creation/Retention

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Bioprocess Research and Education Program

• BREPs Mission
• 1. Research Provide a core bioprocessing (scale
  up and downstream purification) facility for
  University of Maryland research faculty
• 2. Education Enhance workforce development in
  bioprocessing for the academic and industrial
  communities
• 3. Contract Services Strengthen the
  competitiveness of Maryland biotechnology
  companies by providing cost effective
  bioprocessing facilities and expertise

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Bioprocess Research and Education Program

• BREPs successes
• Education coursework and training programs for
  University of Maryland and local industry
• More than 50 students have worked in this
  facility
• Contract Services has worked with more than 60
  local bioscience firms in the past 20 years

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Maryland Performance Excellence Awards

• MPEA is the State of Marylands Baldrige type
  award program
• Year long program to improve quality in
  organizations by employing strict excellence
  criteria
• Supported by US Senators Sarbanes and Mikulski
• Award ceremony in March each year

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Aspire

• Undergraduate research projects, awarded
  competitively
• ASPIRE awardees receive
• A scholarship of 1000 for each semester project
• "Undergraduate Research Assistant" notation on
  their transcript
• For summer projects, students receive a
  scholarship of 3,000.

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Change from MTECH Partnerships toMTECH
Ventures
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• MTECH Ventures
• Launches and accelerates the growth of
  early-stage companies based on UM discoveries.
• Provides hands-on technical, business, and
  funding support to regional entrepreneurs
  building new technology companies.
• Educates technology creators to understand and
  apply entrepreneurial practices and tactics.

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Innovation is the Future

• Technical innovations will catalyze economic
  growth in the 21st century.
• Innovations will be pioneered by entrepreneurs,
  research scientists, and academics not by
  corporations.
• There are many obstacles and challenges
  associated with successful technology venturing.
• The ability of the US to remain the innovation
  commercialization leader is in question, unless
  the obstacles are mitigated.

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A Significant Gap Exists
Knowledge Gap Funding Gap Culture Gap Social
Capital Gap Infrastructure Gap
Research Innovations
Successful New Ventures

Bridging this gap is critical to the regional and
US economies.
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Venture Creation On Campus

• VentureAccelerator
• Selects technologies and launches companies.
• Campus wide participation faculty and students.
• Rigorous selection process VC-aligned.
• Inventor participation can vary from active to
  consultative.
• Brings company-building to the source of
  innovation.
• UM receives equity and deferred fees.
• Aligned with the licensing office.
• Simplified, single contract palatable to
  investors/partners.
• Typical active mentoring period of 18-24 months.

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The VentureAccelerator Process
Scalable Early Stage Company
Execution

• CEO recruiting team
• build-out
• Advisors and experts
• Angel grant
• fundraising
• Product launch alphas
• and betas
• Prepare to disengage

Planning

• Product planning
• Customer research
• Competitive analyses
• Organizational chart
• Significant hurdles
• risks mitigated
• Financial model
• funding requirements
• Completed business
• plan and presentation

Selection

• Unique IP
• Scalable market
• opportunity
• Feasible to assemble
• human and financial
• resources
• Extensive due
• diligence VC-aligned

Idea Invention
18-24 months
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Accelerating Regional Ventures

• Technology Advancement Program
• We selectively admit 2-3 regional early-stage
  firms into our unique acceleration/incubation
  program each year.
• Companies receive
• Hands-on consultation in marketing, strategy,
  structure, and team-building.
• Access to networks of venture capitalists, angel
  investors, team members, strategic partners, and
  customers.
• Technical expertise for product development
  student labor.
• Extensive infrastructure, including turnkey
  offices and labs.
• Rigorous selection process.
• UM receives equity, fees, and deferred
  compensation.

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Accelerating Regional Ventures

• TAP helps companies cross the bridge to
  sustainability.

Grant, angel venture fundraising
Completed products/services
Methodical business plans launch strategies
Built-out team
First real customers
Seed Stage Technology Company
Sustainable Enterprise

• Venture financed rapid growth
• Customer financed early material revenues
• Licensing firm lucrative license

3-4 year duration
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Venturing Track Record

• 57 graduates from TAP
• 65 maintain material operations 5 years later
• 80 remain in Maryland
• 270 million in VC funding, through 2006
• Close to 30 million 2004-2006 alone
• Approaching 2,000 jobs mostly technology-oriented
  
• 2 IPOs, each over 1 billion
• Multiple private sales
• Current portfolio includes nanotech, alternative
  energy and biosensor firms

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Educating Entrepreneurs

• Technology creators who comprehend
  entrepreneurship can weave innovation into the
  fabric of the US economy.
• Our education programs train diverse
  technologists to understand and practice
  entrepreneurship
• Stimulate entrepreneurial thinking among students
  faculty.
• Synthesize technical understanding and business
  objectives.
• Generate deal-flow for venture creation
  initiatives.
• Classroom and non-classroom education
• Hinman CEOs Program
• Hillman Entrepreneurs Program
• Undergraduate and graduate courses
• Seminars and symposia
• Boot Camp and Business Plan Competition

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Educating Entrepreneurs

• Hinman CEOs Program
• Top undergraduate students, from all disciplines,
  live together and engage in risk-mitigated
  venturing.
• Dedicated courses, seminars, trips, and social
  events.
• Internships and hands-on mentoring.
• 100 students steady-state past valedictorian
  many students go to top graduate schools.
• Funded by Brian Hinman, founder of Polycom,
  PictureTel 2Wire.
• National recognition and model.

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Educating Entrepreneurs

• Hillman Entrepreneurs Program
• Innovative, new program for entrepreneurial
  students in community colleges launched Fall
  2006.
• Students begin at Prince Georges Community
  College and matriculate to UM after 2 years.
• Designed to expand entrepreneurial
  learning/opportunities to less privileged
  students.
• Dedicated courses, seminars, trips, and social
  events.
• Internships and hands-on mentoring.
• Ultimately 100 students steady-state cohorts of
  25.
• Funded by David Hillman, founder - Southern
  Management.

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Educating Entrepreneurs

• Classroom education
• Introduction to Technology Venturing Course.
• Lab course places students with our portfolio
  cos. for credit.
• Case Studies course launched Fall 2006.
• Non classroom education
• Quarterly seminar series disseminates customer
  demand for new technologies, motivates, and
  communicates startup tactics. Networking too.
• Annual Boot Camp (6th annual 11/3/06)
  attracted over 400 registrants.
• Annual Business Plan Competition
  (7th annual) likely to
  attract 70-100
  entries. 50K in prizes.

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Conclusion

• Bridging the gap between innovations and ventures
  is criticality.
• We are well positioned to fulfill UMs role as a
  material contributor to economic development.
• Our objectives are simple Build more tech
  companies and Prepare technologists to be 21st
  century innovators.
• Our venture creation and education programs are
  among the most complete and sophisticated within
  any academic institution in the country.
• We seek to serve as a model for other
  institutions.