Jonathan Rose Keynote - U of T Innovates

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This presentation was the keynote address delivered by MLA Member Jonathan Rose at our U of T Innovates Event.

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Jonathan Rose Keynote - U of T Innovates

  1. 1. Angels and Academia: Combining Two Worlds Jonathan Rose Professor, University of Toronto Founding Member, Maple Leaf Angels
  2. 2. Toronto is a Hotbed of Entrepreneurship  Recently ranked as 4th Best Tech Hub in World  City has many advantages – Size, dynamic economy; great education; peace – Amazing diversity that connects it to the world – Financial Centre – Great University (2)
  3. 3. Making it Better  One thing the even-better eco systems have: – Strong connection between early-stage investors and University – Compare to Stanford/Berkeley in Silicon Valley – MIT/Harvard & Boston environment  Purpose Today: – Describe this University to Maple Leaf Angel Investors – Describe MLA to faculty & students in this University – How bringing us together, can make it better (3)
  4. 4. The University of Toronto (4)
  5. 5. U of T Key Facts  67,339 Undergraduates  15,817 Graduate students  11,000 Faculty  $1.2B research funding  2nd-highest # pubs in the world  Commercializes more research – than any other University in Canada & among top in world  Many world-leaders (5)
  6. 6. Professor Sorin Voinigescu  World-leading high-speed Analog circuit designer  Regularly sets records for highest frequency data transmission  Member of group that ‘predicts’ Moore’s law  Co-founder, Quake Technologies – Another startup on the go  Recently working on 800GHz+ imaging (6)
  7. 7. Computer Science Machine Learning  Machine learning has come to the fore in the last decade, with particular interest in the analysis of big data – UofT has one top Machine Learning groups in the world  Geoff Hinton – ‘Godfather of neural networks’ – DNNresearch recently acquired by Google  Craig Boutilier – Expert in decision making under uncertainty – Presenting here today - Granata (7)
  8. 8. Professor Moshe Eizenman  World-leading expert in Eye Tracking – applied to aircraft simulators & driver alertness – About to become huge in many other applications • e.g. diagnosis of depression – Eyes are the window to the soul! (8)
  9. 9. Professor Joyce Poon  Rising star in optoelectronic devices for high-performance communication – Coupling-Modulated Microrings – Hybrid high-speed coupling-modulated lasers – Silicon nitride on SOI photonics  Participating in Startup (9)
  10. 10. Goals and Language of Academia  Bottom line is to generate knowledge, insight, wisdom – and people!  Time horizon is much longer than industry  Language is different – ‘Translation’ – medical word for actually using medical research  Publish or Perish? – But there are many who deeply care about having meaningful impact in their field & world  A subset of academics are looking to startups – Either directly or through graduate students (10)
  11. 11. Commercialization and Entrepreneurship  The University has many activities underway – Each take different perspective (11) UTESTJOL T
  12. 12. Creative Destruction Lab Mission: – To create a dynamic learning environment for university-affiliated entrepreneurs Goal: – Generate $50M in equity value within five years ++ Method: – High-powered mentors; hard deliverables or get kicked out  One of the great ideas from fertile mind of Professor Ajay Agrawal, Rotman (12)
  13. 13. Creative Destruction: G7 Fellows Dennis Bennie Daniel Debow Nick Koudas Tomi Poutanen Dan Shimmerman Lee Lau Nigel Stokes
  14. 14. The Engineering Hatchery Goal: Fifteen Years from now, we will be able to point to a number of very successful entrepreneurs, and say that they had a formative and enabling experience in the Hatchery  We do this by having them create real business ideas, some of which do turn into live startups  Joseph Orozco, Executive Director (14)
  15. 15. Techno (Impact Centre)  Goal: turn revolutionary knowledge from the University swiftly into products that benefit society  Trains graduate students in the basics of starting a business  Houses an Incubator  One of several dynamic efforts from Professor Cynthia Goh, Dept. Chemistry – A serial entrepreneur (15)
  16. 16. Other Efforts  JOLT – Part of MARs Discovery District  UTEST – From UofT Innovations & Partnerships  Next 36 – From Rotman & many other folks  Not enough time to describe! (16)
  17. 17. Maple Leaf Angels Investment Group (17)
  18. 18. What is an Angel Group?  A Group of accredited investors that join together – To jointly view opportunities to invest in early stage companies – Willing to take risks  Individuals make their own investment decisions – But the group creates infrastructure for groups of investors to invest at the same time – Individuals would invest $10K-$50K at a time – The group as a whole might invest $250K - $400K (18)
  19. 19. How Maple Leaf Angels Works 1. Early-Stage Companies apply to group – Through web page or contacts within the group 2. Applications are reviewed – By Director – By Investment Review Committee – Criterion: • Fit within field of group • Best opportunities to succeed! 3. Each month, 2-3 selected to pitch to group – Will see 3 of these today (19)
  20. 20. The Key Question After Presentation  Who is interested to Explore further? – This question will be asked today, after all non-members leave 4. If there is interest among members, follow-on meetings – To pursue deeper questioning 5. With sufficient interest, due diligence begins – Deeper dive on quality of technology, people, company (20)
  21. 21. Investment! 6. If result is good, negotiation! – Over the pre-money valuation of the company – How much money is sought 7. Investment – Investment contracts signed – Money paid! (21)
  22. 22. Post-Investment  Some investors become board members  Advice and mentoring ensues  Communication between company and investors maintained – Investors continuously help companies – May be more than one ‘round’ of early stage investment (22)
  23. 23. Maple Leaf Angel Typicals  Startups based in Toronto & surrounding area  Seed and Early Stage companies  Total investment ranges from $250K to $1M  Pre-money valuation range $1M to $4M – How is valuation determined?  Focus Areas: – Information and Communication Technology – Medical Technology – Clean Technology – Financial Services (23)
  24. 24. Sentient Magnetic 22 Investments since 2007 Total Invested: $9.6 Million + Investment History of MLA
  25. 25. Investments in 2012-2013 Year  Total Inbound Investment Requests: 250+  Number of Investments: 4  Total Group investment: ~ $2.73M  Total Follow on Investment: ~$2.5M  Total investment led by MLA in 2012-13: $5.25M (25) Sentient Magnetic
  26. 26. Successful Exits  4 Successful Exits  Follow on Funding: $20 Million (26) Acquired by NASDAQ IPO (MOTR) NASDAQ IPO (AMRS) Secondary Offering (MMC.V)
  27. 27. Value of Angel Group to Startups  Investment  Mentoring – including prior to investment  Feedback from investor perspective  Networking/connections (27)
  28. 28. Where Do Academics Fit In? 1. Start Companies, come pitch! 2. Participate in diligence as experts 3. Make connections for students  Viz: Band of Angels in Silicon Valley – Has ‘book’ of 100+ diligence experts from the Valley – Both local Director-level and Academic (28)
  29. 29. Thank you! www.mapleleafangels.com (29)

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