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UEDA 2008 Presentation National Business Incubator Association

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  • This is our mission statement, what we practice, what we preach , and what we measure our success by.
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    1. 1. Keelin O'Leary, Memorial University of Newfoundland Tom O’Neal, University of Central Florida  Joel Stevenson, University of South Carolina, Columbia The role of University Affiliated Incubators in economic development strategies
    2. 2. Commercialization & Incubation at a University <ul><li>Quality Relevant Research </li></ul>Proactive Technology Transfer Entrepreneurship Licenses UCF Spin offs Leaders to create new companies Rich Academic Programs Commercialization New Companies Stronger existing companies High Paying jobs Partnerships Economic Development Diversified Economy Core Activities Contribution Influence Secondary affect Idea Basic Research Applied Research Prototype Products
    3. 3. What do Incubators do? <ul><li>Marketing </li></ul><ul><li>Sales </li></ul><ul><li>Distribution </li></ul><ul><li>Financial </li></ul><ul><li>Technical </li></ul><ul><li>IP </li></ul><ul><li>Cash </li></ul><ul><li>Management </li></ul><ul><li>Manufacturing </li></ul><ul><li>Contacts </li></ul>Incubator staff Community Political support Technical Expertise Business Expertise Networking Regional Professional Service Providers University resources Focus Tactics Strategy Connectivity New Client Identify and fill in the holes Add Value Graduate Companies poised for success <ul><li>Marketing </li></ul><ul><li>Sales </li></ul><ul><li>Distribution </li></ul><ul><li>Financial </li></ul><ul><li>Technical </li></ul><ul><li>IP </li></ul><ul><li>Cash </li></ul><ul><li>Management </li></ul><ul><li>Manufacturing </li></ul><ul><li>Contacts </li></ul>
    4. 4. Why Incubation <ul><li>87% of incubator graduates are still in business </li></ul><ul><ul><li>vs 80% that fail during the first 5 years </li></ul></ul><ul><li>84% of incubator graduates stay in their communities and continue to provide a return to their investors. </li></ul><ul><li>For every $1 of estimated annual public investment, clients and graduates incubators generate approximately $45 in local tax revenue. </li></ul><ul><li>Every 50 jobs created by an incubator client generate another 25 jobs in the community. </li></ul><ul><li>Source: National Business Incubator Association </li></ul>
    5. 5. Kinds of Incubators <ul><li>Technology Incubators </li></ul><ul><li>University Affiliated </li></ul><ul><li>Mixed Use </li></ul><ul><li>Empowerment </li></ul><ul><li>Niche industry </li></ul><ul><ul><li>Kitchen Incubators </li></ul></ul><ul><ul><li>Arts </li></ul></ul><ul><ul><li>Construction </li></ul></ul>
    6. 6. Finding an Incubator <ul><li>Go to the national or State Web site first </li></ul><ul><ul><li>www.nbia.org </li></ul></ul><ul><ul><li>www.fbiaonline.org </li></ul></ul><ul><ul><li>Ask you local Economic Development Organization </li></ul></ul>
    7. 7. Getting into an Incubator <ul><li>Incubators normally have selection process </li></ul><ul><ul><li>Application </li></ul></ul><ul><ul><li>Interview </li></ul></ul><ul><ul><li>May or may not require business plan </li></ul></ul><ul><ul><li>Usually require full time commitment </li></ul></ul><ul><li>UCF Technology Incubator requires participation in a 7 session program called “Excellence in Entrepreneurship” </li></ul>
    8. 8. Expectations <ul><li>Incubation is a process, not a place </li></ul><ul><li>Don’t expect too much. This is support, coaching – not life support </li></ul><ul><li>You’re still in charge </li></ul><ul><li>Reduces risk </li></ul><ul><li>Usually allows you to grow or contract </li></ul><ul><li>Adds credibility - to a point </li></ul><ul><li>Usual term is 3 – 5 years </li></ul>
    9. 9. Incubators often fill gaps in a region’s Eco System Top Faculty Workforce Development Steeples of Excellence Economic Development Research, IP Creation & Management Innovation Realization Result Commercialization Licensing / Start-up / Incubation Areas addressed by Incubator Tech Savvy Entrepreneurs Industry Clusters IP Training / Awareness Political Support Regional support Strategy Development Assessment / Marketing/ Technology Maturation Business services State of the art facilities Top Students Ideas Infrastructure / resources
    10. 10. The underlying foundation is key IP Training / Awareness Top Researchers & Faculty Top Students Patent Prosecution Political Support Regional support Industry Clusters Workforce Development Business services Tech Savvy Entrepreneurs Build Strong Foundation Strong Partnerships with Industry and economic development agencies Attract and retain the best people Provide them the best facilities Give them the opportunity to compete at the highest level Provide a clear strategic vision - the ultimate goal is economic development Center of Excellence Sponsored Research IP Creation & Management Strategy Development Assessment / Marketing/ Technology Maturation Commercialization Licensing / Start-up / Incubation Economic Development
    11. 11. UCF Incubation Program <ul><li>UCF </li></ul><ul><li>50,000 Students </li></ul><ul><li>$130M in Research (Med School just started) </li></ul><ul><li>Orlando, Known for what? </li></ul>
    12. 12. Current Incubator Clients <ul><li>100 Companies served </li></ul><ul><ul><li>Created more than 900 jobs </li></ul></ul><ul><ul><li>Average salary of $60,000 </li></ul></ul><ul><ul><li>Raised $200M+ in venture capital </li></ul></ul><ul><ul><li>Generate more than $500M in annual revenues </li></ul></ul>Number of Clients/Graduates
    13. 13. Goals <ul><li>Expand high tech industry in Central Florida </li></ul><ul><li>Help UCF meet its goal to be America’s leading partnership university </li></ul><ul><li>Facilitate tech transfer, collaboration and economic development in the technology sector </li></ul><ul><li>Provide business training and support to: </li></ul><ul><ul><li>Technology Start-Ups </li></ul></ul><ul><ul><li>University spin-offs </li></ul></ul><ul><ul><li>Existing companies, restarting </li></ul></ul><ul><ul><li>Existing company with new project/product </li></ul></ul><ul><ul><li>SBIR / STTR start-ups </li></ul></ul>
    14. 14. Services <ul><li>On-site business coaching and mentoring </li></ul><ul><li>Entrepreneurship curriculum, seminars </li></ul><ul><li>Access to community leaders and an exceptional advisory board </li></ul><ul><li>Adaptable space, flexible leases </li></ul><ul><li>Shared resources </li></ul><ul><ul><li>Reception, conference rooms, business library, high speed internet access, work / break rooms, office equipment </li></ul></ul><ul><li>Networking, close proximity to UCF technology, expertise </li></ul><ul><li>Access to interns and graduate student support </li></ul>
    15. 15. Evolution (UCF Example) <ul><li>Program/Activity Started </li></ul><ul><li>Central Florida Research Park 100 companies, 10,000 jobs 1981 </li></ul><ul><li>UCF Research Foundation 1991 </li></ul><ul><li>Technology Transfer Program 1992 </li></ul><ul><li>Technology Incubator 1999 </li></ul><ul><li>Industry match grants program (SBIR External investment) 2000 </li></ul><ul><li>Establish Office of Economic Development 2002 </li></ul><ul><li>Technology Entrepreneurship: </li></ul><ul><ul><li>Emerging Business Network 1996 </li></ul></ul><ul><ul><li>Excellence in Entrepreneurship 2000 </li></ul></ul><ul><ul><li>Boot-camps for Entrepreneurs 2000 </li></ul></ul><ul><ul><li>Entrepreneurship graduate course 2003 </li></ul></ul><ul><ul><li>Business Plan Competition 2004 </li></ul></ul><ul><ul><li>Technology Venture Lab 2004 </li></ul></ul><ul><ul><li>Established Center for Innovation and Entrepreneurship 2005 </li></ul></ul><ul><ul><li>Establishment of Angel fund 2006 </li></ul></ul>
    16. 16. Creating New Business Opportunities Proactive Tech Transfer UCF Orange County Venture Lab Technology Entrepreneurship Center Savvy Entrepreneurs Solid Market Research NCIIA E-Teams Entrepreneurship Programs Business Plan Competitions
    17. 17. Helping to Plant 1,000 Seeds <ul><li>Technological Entrepreneurship Center </li></ul><ul><ul><li>Entrepreneurship education </li></ul></ul><ul><ul><li>Business plan showcases </li></ul></ul><ul><ul><li>Technology Business Forum </li></ul></ul><ul><li>UCF Orange County Venture Lab </li></ul><ul><ul><li>100 students and faculty, 7 companies started </li></ul></ul><ul><li>Small Business Development Center </li></ul><ul><ul><li>6,000 individuals trained and counseled </li></ul></ul><ul><ul><li>78 business starts </li></ul></ul><ul><ul><li>904 jobs created or retained </li></ul></ul>
    18. 18. Help New and Small Companies Grow Strong UCF Incubator Disney/SBA National Entrepreneur Center Florida High Tech Corridor Student Interns Seed / Gap Funding Networking Events Service Provider Support SBIR Collaborations
    19. 19. Early Stage Support <ul><li>UCF Technology Incubator </li></ul><ul><ul><li>100 companies, 900 Jobs, $60K average salary </li></ul></ul><ul><li>Disney/SBA National Entrepreneur Center </li></ul><ul><ul><li>26,000 clients, 214 startups served </li></ul></ul><ul><ul><li>2,400 jobs retained </li></ul></ul><ul><li>Florida High Tech Corridor </li></ul><ul><ul><li>Supporting workforce development </li></ul></ul><ul><ul><li>Matching research funding </li></ul></ul><ul><ul><ul><li>615 projects with 250 local companies worth $130M </li></ul></ul></ul>
    20. 20. Contacts <ul><li>Tom O’Neal </li></ul><ul><li>407 882-1120 </li></ul><ul><li>[email_address] </li></ul><ul><li>Associate Vice President for Research & Commercialization </li></ul><ul><li>Director UCF Incubator Program </li></ul><ul><li>President, Florida Business Incubator Association </li></ul>
    21. 23. Outline Where (Context) Why (Purpose) Who (Admission process / clients) What (Desired results) How (Support provided)
    22. 24. Context: Newfoundland & Labrador <ul><li>Population </li></ul><ul><ul><li>~500,000 </li></ul></ul><ul><ul><li>land area of California </li></ul></ul><ul><li>One university </li></ul><ul><ul><li>18,500 students </li></ul></ul><ul><ul><li>$85m research budget </li></ul></ul><ul><li>Econ. devt. mandate enshrined in University Act </li></ul>Where
    23. 25. The Genesis of the Genesis Centre <ul><li>Located in tech. transfer group </li></ul><ul><li>Opened February 1997 </li></ul><ul><li>Technical support for knowledge-based businesses </li></ul><ul><li> Preparing them for private investment </li></ul>Why
    24. 26. Entrance to the Centre <ul><li>Nfld./Lab. ventures: </li></ul><ul><ul><li>Technology (knowledge) -based product </li></ul></ul><ul><ul><li>High growth potential (multi-million $ revenue) </li></ul></ul><ul><ul><li>ENTREPRENEURIAL ABILITY </li></ul></ul><ul><li>Selection Board - private sector </li></ul>Who
    25. 27. Clients to Date (38) <ul><li>IT (21) </li></ul><ul><li>Engineering (9) </li></ul><ul><li>Manufacturing (4) </li></ul><ul><li>Biomedical (4) </li></ul>Who From community & university:
    26. 28. Desired Results <ul><li>Investment-readiness: </li></ul><ul><ul><li>experienced management team </li></ul></ul><ul><ul><li>active Board of Directors </li></ul></ul><ul><ul><li>comprehensive business plan </li></ul></ul> $ (venture) capital graduation What
    27. 29. Results to Date <ul><li>38 clients </li></ul><ul><ul><li>23 graduates </li></ul></ul><ul><ul><li>7 current clients </li></ul></ul><ul><ul><li>> $11 million in private equity secured </li></ul></ul><ul><li>Over 660 employed </li></ul><ul><li>Rutter Technologies Inc. </li></ul><ul><ul><li>public </li></ul></ul><ul><ul><li>annual revenue >$72 million </li></ul></ul>What
    28. 30. Resources Provided <ul><li>Technical </li></ul><ul><li>Business </li></ul><ul><li>Physical </li></ul><ul><li>Intangible </li></ul>How
    29. 31. A. Technical Resources <ul><li>Examples: </li></ul><ul><li>Manufacturing Technology Centre </li></ul><ul><li>Videoconferencing (comm. & mkting.) </li></ul><ul><li>Lab space & equip. </li></ul><ul><li>Medical School </li></ul><ul><li>Technical Services </li></ul><ul><li>Business courses </li></ul>How “ Engineering the product”
    30. 32. B. Business Resources <ul><ul><li>Human Resources </li></ul></ul><ul><ul><li>Mentor </li></ul></ul><ul><ul><li>Advisory Board </li></ul></ul><ul><ul><li>Consultant </li></ul></ul><ul><ul><li>Centre Staff </li></ul></ul><ul><ul><li>Events </li></ul></ul><ul><ul><li>- Roundtables </li></ul></ul><ul><ul><li>- Networking luncheons </li></ul></ul>“ Engineering the company” How
    31. 33. C. Physical Resources <ul><li>Office space, furniture & equipment </li></ul><ul><li>High-speed network </li></ul><ul><li>Board & meeting rooms </li></ul><ul><li>Videoconferencing </li></ul><ul><li>Computer & AV equip. </li></ul><ul><li>Admin. assistance </li></ul>How
    32. 34. D. Intangibles <ul><li>Credibility </li></ul><ul><li>Synergy </li></ul><ul><li>Vision </li></ul><ul><li>Confidence </li></ul>How
    33. 35. SIFE Memorial <ul><li>Started incubator for students </li></ul><ul><li>2006 - Canadian Champions </li></ul><ul><li>World Cup: Round of 16 </li></ul><ul><li>2007 - Canadian Champions </li></ul><ul><li>World Cup: 1 st Runner-Up </li></ul><ul><li>2008 - Canadian Champions </li></ul><ul><li>World Cup Champions! </li></ul>
    34. 36. Campus Incubation Consortium <ul><li>Genesis Centre </li></ul><ul><li>SIFE Incubator </li></ul><ul><li>Faculty of Business </li></ul><ul><li>Faculty of Engineering </li></ul><ul><li>National Lab </li></ul>
    35. 37. Genesis Centre - Results for University <ul><li>Good PR, locally & nationally </li></ul><ul><li>Strengthened network in local business community </li></ul><ul><li>Strengthened univ. culture of innovation & entrepreneurship </li></ul><ul><li>Contribution towards ED mandate </li></ul>
    36. 38. Contact Information Keelin O’Leary Manager - Genesis Centre Director – National Business Incubation Assn. Canadian Assn. Business Incubation [email_address] 709-737-2365 www.genesis.mun.ca
    37. 39. USC/Columbia Technology Incubator Non-Traditional Economic Development
    38. 40. The USC/Columbia Technology Incubator <ul><li>Founded in 1998 in the USC’s College of Engineering & Information Technology. </li></ul>
    39. 41. Mission <ul><li>The mission of the USC/Columbia Technology Incubator is to increase the vitality of the regional economy by recruiting and nurturing start-up companies that advance technological development, employ highly skilled workers and contribute to the economic development of the area. </li></ul>
    40. 42. Values we follow <ul><li>USCCTI believes in, and adheres to, the following core values within its structure, policies, and practices: </li></ul><ul><ul><li>Integrity and Professionalism </li></ul></ul><ul><ul><li>Teamwork and Loyalty </li></ul></ul><ul><ul><li>Uncompromised Quality and Commitment to Excellence </li></ul></ul><ul><ul><li>Innovation </li></ul></ul><ul><ul><li>Respect and Diversity </li></ul></ul>
    41. 43. Progress since Incubator inception in 1998 <ul><li>Growing from 3000 sq feet to a 40,000 sq foot facility </li></ul><ul><li>Increasing the number of our supporters </li></ul><ul><li>Improving our services </li></ul><ul><li>Assisting in creating jobs (605 jobs to date) </li></ul><ul><li>Increasing Average Salary per job to $48,7500 </li></ul>
    42. 44. This is truly a public private partnership that is working <ul><li>How have we done this? </li></ul><ul><ul><li>City of Columbia </li></ul></ul><ul><ul><li>The State of South Carolina </li></ul></ul><ul><ul><li>Richland County </li></ul></ul><ul><ul><li>Lexington County </li></ul></ul><ul><ul><li>Corporate Partners (e.g. BellSouth, SCANA) </li></ul></ul><ul><ul><li>Educational Institutions (e.g. USC, MTC) </li></ul></ul><ul><ul><li>Private Partners (e.g. Tomlin & Company, Inc.) </li></ul></ul>
    43. 45. Incubator in Numbers <ul><li>73 companies admitted since 1998 </li></ul><ul><li>605 Jobs created </li></ul><ul><li>171 Minority jobs created </li></ul><ul><li>43 Current Companies </li></ul><ul><li>20 Graduates </li></ul>