STC.UNM University of New Mexico & New Mexico Angels Partnership The University of New Mexico’s technology-transfer and economic development organization, STC.UNM, has built a unique relationship with the New Mexico Angels (NMA), a local group of private investors focused on investing in early stage companies. The partnership continues to generate critical funding for many of the University’s early stage technologies, and the startup companies spun out from them, and has fostered the creation of unique programs to increase funding levels. It has offered support for larger initiatives that are being built on the foundation of the commercial fruits of success that this relationship has generated. Available investment capital in New Mexico is a central component to commercializing UNM’s research. NMA has been a model for how other investors and investor groups can work with university tech-transfer organizations to commercialize university inventions. STC has also become an example of the many ways university technology-transfer organizations can work with angel investors to increase the number of new companies and improve their odds of success. The partnership has resulted in many outcomes including six new companies being launched, expanding an entrepreneurial culture among the university’s faculty and students, and educating investors on the amazing innovations created by university inventors. Cara Michaliszyn, University Ventures & Engagements Manager, STC.UNM

1. September 28, 2015
Cara Michaliszyn
University Ventures & Engagements Manager
STC.UNM
UNIVERSITY OF NEW MEXICO (STC.UNM)
&
NEW MEXICO ANGELS (NMA)
PARTNERSHIP
Presented by

2. STC AND NMA PARTNERSHIP
 2005 –Lisa Kuuttila (CEO, STC.UNM) joined NMA Board of
Directors
 Interest in gaining visibility for UNM technologies as potential start-
up investment opportunities for NMA
 First technology presentation by STC in March 2008 (one
technology and one early start-up company)
 STC presented four technologies to NMA in October 2009
Early History

3. STC AND NMA PARTNERSHIP
 Gap Fund Program ongoing since 2007
 Gap Fund @ UNM Committee membership solely from UNM until 2011
 Added NMA President, John Chavez, to Committee in 2011
 STC received 22 proposals totaling $544,950 that year
 NMA selected 7 proposals
for further review (including
the 2 funded by UNM)
Gap Fund

4. STC AND NMA PARTNERSHIP
 Since STC has consistently received a number of excellent
proposals—more than it has been able to fund—this year, we have
partnered with the NMA, a group of 70+ investors, in order to fund
more projects. In addition to the two projects selected for funding
from UNM, NMA plans to select several proposals for presentation
to the NMA. Accordingly, we have asked John Chavez, President
of the NMA, to join our selection committee. (Fall, 2011)
Gap Fund
$ John Chavez

5. STC AND NMA PARTNERSHIP
 NMA selected three PIs for presentation of their projects in
November 2011
 John Chavez and STC staff coached PIs and helped prepare
presentations
 One company formed as a result
Technology Showcase Concept

6. STC AND NMA PARTNERSHIP
 In October 2012, STC added 3 additional outside investors to its
Gap Fund @ UNM Committee
 STC received 21 proposals totaling $479,149
 NMA and STC held a second Technology Showcase
 One new company was started as a result
Technology Showcases Continued

7. STC AND NMA PARTNERSHIP
 By 2012, STC and NMA had developed a template set of
slides for PIs:
● Title of Technology
● Inventors and Funding
● Overview of Technology
● Summary of Data/Findings
● What Is the Product/Who Will Pay for It?
● Market Opportunity
● Intellectual Property
● Specific Expertise Needed
● Review and Request for Action….
Technology Showcases Continued

8. STC AND NMA PARTNERSHIP
 By February 2013, the NMA wanted to see many more
technologies, in addition to the gap fund process
 STC presented 18 technologies to NMA
 The Technology Showcase in 2013 included 3 STC technologies
(after selecting 5 technologies for further review), resulting from the
gap fund committee process
 No companies were started but one technology was incorporated
into another start-up
 (Another gap fund committee investor member elected to start a
company based on one of the proposals)
Evolution to Other Venues for Technology Presentations

9. STC AND NMA PARTNERSHIP
 STC and NMA began to meet more frequently from 2013 - 2015
 Presentations were made to John Chavez and small groups of NMA
members on almost a monthly basis
 Many of these meetings were called as convenient for NMA, or they
had specific technology opportunities of interest to NMA
Less Formal and More Frequent Communications

10. STC AND NMA PARTNERSHIP
 Lotus Leaf Coatings
 Zocere, Inc.
 Synfolia, Inc. (no longer active)
 EcoPesticides International
 Dynamic Photonics, Inc.
 ExoVita BioSciences
Start-Ups Evolving from Partnership

11. WHY?
Why Did We Create The Start Up Factory One
and Two?
● Low Pre-Money Value
● Diversification of Portfolio
● Creating our Own Deal Flow
● Creating opportunities in NM

12. The Business Plan
 Designed to spin out individual investable companies based on
early options of technology from New Mexico Angels technology
partners
Holding Company
Technologies
New Mexico
Start Up
Factory
Hard work
and Magic
New
Companies
for NM

13. TACTICAL PLAN
 Seed NM Start-up Factory Two, LLC
 Find Technology with Market and Commercial Potential at UNM,
LANL, Sandia or NMSU
 Write IP and Commercialization Plans for each potential technology
 Simultaneously option, and negotiate licensing agreement with
technology partner
 Find the Right People for Start-ups: NM Angels and others
 Stand up individual company and support, and send them on their
way according to commercialization plan

14. CLOSING NM START UP FACTORY TWO
 Small amount of individual angel capital to create a diversified
portfolio
 Funding opportunities with technology from our technology partners
 Low valuation in follow on rounds, so that the individual company
exits can be reasonably priced
 It is a technology transfer model that seems to be working!

15. STC AND NMA PARTNERSHIP
 NMA is a strong supporter of Innovate ABQ,
promoted by UNM
 NMA was an advocate with UNM Foundation for
establishment of the Co-Investment Fund
 NMA presents to STC and UNM constituent
groups on a regular basis
 NMA has table display at STC Annual Innovation
Awards and other events
Other Partnerships

16. STC AND NMA PARTNERSHIP
+
 Six start-ups have evolved from the partnership between
STC and the NMA. It has allowed the UNM Co-Investment
Fund to invest $174,000 in Start-Up Factory companies.
 Trust and connections have created a solid foundation for
continued growth and larger initiatives
 The initiative is being expanded to the state’s other
research institutions