ALTERNATIVE FINANCING FOR INNOVATIVE SMEs THROUGH INCUBATING INTELLECTUAL CAPITAL

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ALTERNATIVE FINANCING FOR INNOVATIVE SMEs THROUGH
INCUBATING INTELLECTUAL CAPITAL Mark
Coticchia Vice President for Research and
Technology Management
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Incubating Intellectual Capital

• Capital
• Define it
• Understand it
• Influence it

• Talent
• Define it
• Understand it
• Influence it

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The Four Stages of Financing
Financing Stages
Owners Entrepreneurs University Government
Grants or Validation Funds
Owners Entrepreneurs University Government
Grants or Validation Funds Angels Seed Stage
Venture Capital
Early Stage Venture Capital Angels Strategic
Corp. Investors
Venture Capital Private Equity Strategic Corp.
Investors
Primary Resource Providers (Sources)
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Follow-On Capital
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Idea Crossing
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The Ohio Capital Fund
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Ohio Midwest Fund
Ohio Public Employees Retirement System (PERS)
and Credit Suisse Invested more than 125
million in Ohio companies Impacted over 2,500
jobs in Ohio 61 million in capital from
follow-on investors 186 million impact i.e.
4.7x multiplier to capital drawn.
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Incubating Intellectual Capital

• Capital
• Define it
• Understand it
• Influence it

• Talent
• Define it
• Understand it
• Influence it

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Defining Talent
A Player B Player C Player
Performance ? ?
Vision ?
Intelligence ? ? ?
Leadership ?
Drive ? ?
Track Record ? ?
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What Makes a Service Provider Great?

• World Class
• Have served clients around the world
• Expert in working with small, high-growth
  companies
• Extra Effort
• Willing to do something special, economically
  speaking, for company

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Incubating Intellectual Capital

• Capital
• Define it
• Understand it
• Influence it

• Talent
• Define it
• Understand it
• Influence it

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Case Technology Transfer

• Starting Point
• Disorganized
• Lack of Resources and Resolve
• Poor Results

1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
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Case Technology Transfer

• Starting Point
• Disorganized
• Lack of Resources and Resolve
• Poor Results

• Principles
• Centralized Function
• Customer Service
• Business-Savvy Staff
• Authority to Move Deals Quickly

1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
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Case Technology Transfer

• Starting Point
• Disorganized
• Lack of Resources and Resolve
• Poor Results

• Principles
• Centralized Function
• Customer Service
• Business-Savvy Staff
• Authority to Move Deals Quickly

• Early Efforts
• Edison Biotechnology Center
• Enterprise Development Inc.

1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
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Case Technology Transfer

• Starting Point
• Disorganized
• Lack of Resources and Resolve
• Poor Results

• Keys
• Early Stage Capital Task Force
• Entrepreneurship Task Force
• GCVC Report
• JumpStart and BioEnterprise
• Support incentives for VC investors
• Recruitment of Top Talent to region
• Innovative Policies

• Principles
• Centralized Function
• Customer Service
• Business-Savvy Staff
• Authority to Move Deals Quickly

• Early Efforts
• Edison Biotechnology Center
• Enterprise Development Inc.

1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
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How Much Capital Is Needed By Stage?
Example 1.2B in Venture Capital Needed over
Next 5 years
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Greater Cleveland Venture Capital Report
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Case Technology Transfer

• Starting Point
• Disorganized
• Lack of Resources and Resolve
• Poor Results

• Keys
• Early Stage Capital Task Force
• Entrepreneurship Task Force
• GCVC Report
• JumpStart and BioEnterprise
• Support incentives for VC investors
• Recruitment of Top Talent to region
• Innovative Policies

• Principles
• Centralized Function
• Customer Service
• Business-Savvy Staff
• Authority to Move Deals Quickly

• Early Efforts
• Edison Biotechnology Center
• Enterprise Development Inc.

1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
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JumpStart
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BioEnterprise
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The Innovation NetworkExpanded Ties to the
Region
CWRU/UH
Working together to accelerate technology
commercialization and new company creation
CaseTechnologyVentures
JumpStart
CCFInnovations
BioEnterprise
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Case Technology Transfer

• Starting Point
• Disorganized
• Lack of Resources and Resolve
• Poor Results

• Keys
• Early Stage Capital Task Force
• Entrepreneurship Task Force
• GCVC Report
• JumpStart and BioEnterprise
• Support incentives for VC investors
• Recruitment of Top Talent to region
• Innovative Policies

• Principles
• Centralized Function
• Customer Service
• Business-Savvy Staff
• Authority to Move Deals Quickly

• Early Efforts
• Edison Biotechnology Center
• Enterprise Development Inc.

1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
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Case Technology Transfer

• Today
• 500M in VC to region over last 3 years
• TTO ranks top-10 nationally, 1 in Ohio
• Spinoffs brought gt100M in VC in 2007

1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
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Athersys
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Synapse Biomedical
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Learn More About Tech Transfer at Case

• To learn more, contact the Technology Transfer
  Office at Case Western Reserve University. Please
  visit our Web site
• http//techtransfer.case.edu
• Technology Transfer Office
• Case Western Reserve University
• 10900 Euclid Avenue, Sears Building, 6th Floor
• Cleveland, OH 44106-7219

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