A&D Conf Breakout Session #1

387 views

Published on

Published in: Business, Economy & Finance
  • Be the first to comment

  • Be the first to like this

A&D Conf Breakout Session #1

  1. 1. Breakout Session #1Cases Studies: Commercialization using the SBIR/STTR Program by Sharon C. Ballard, President/CEO EnableVentures, Inc. Phoenix Convention Center January 26, 2012 1“You envision . . . we enable.”™ © Copyright 2003-2012. EnableVentures, Inc.
  2. 2. Imagine this start-up scenario:• $Ms in R&D a year over 8 years• Invoices paid in 1-3 days, twice a month• Still own majority of venture• Products with high-profit sales worldwide• Three spin-out ventures sold for $MM• My venture – Reticular Systems, Inc. 2 © Copyright 2003-2012. EnableVentures, Inc. 2
  3. 3. Venture Funding using SBIR Program• Successful cases: Learn from others• Reduce R&D risks• Generate science, business credibility• Delay dilution of business ownership• Lower Accounts Receivables risk• Do business!• Pop Quiz: contrast Pb of SBIR awards vs. selling equity? © Copyright 2003-2012. EnableVentures, Inc. 3
  4. 4. Where do entrepreneurs get funding? (Who is the first fool?) Amount of Start-up Cash INC 500 Fastest Growing US companies over $100,000 22% Under $10,000 41% 37% 10,001 to $100,000 http://www.inc.com/magazine/20021015/24778_Printer_Friendly.html © Copyright 2003-2012. EnableVentures, Inc. 4
  5. 5. Qualcomm Inducted into SBIR Hall of Fame• Founded in 1985, 7 founders• IPO 1991, $100M in gross revenue• $1.5M in SBIR funding• Global workforce = over 17,500• Market capitalization = over $80 billion• Annual revenues = $11 billion• Over 13,000 patents• 200 manufacturers licenses worldwide• SBIR funded chip development = 2/3 annual revenue © Copyright 2003-2012. EnableVentures, Inc. 5
  6. 6. ViaSat Trajectory lands it on Hall of Fame Started in their garage!• Founded 1996, $25,000 initial funding• 2100 employees, $688 million sales• Over last 10 years received over $175 million in Phase III (non-SBIR) funding directly from DoD• $10M Phase II with DoD• $100M in Phase III equipment sales• IPO 1996 (NASDAQ: VSAT) © Copyright 2003-2012. EnableVentures, Inc. 6
  7. 7. “The Big One that got away!” Arizona HNC Software, San Diego• Former Motorola AZ engineer• $230M in SBIR-developed technologies• IPO 1995• 1270 employees• Acquired by Fair, Isaac for $810M, in 2002• Founder now university researcher © Copyright 2003-2012. EnableVentures, Inc. 7
  8. 8. NanoMech, Inc., Fayetteville, AR SBIR Hall of Fame• Technology called “coating’s holy grail”, Cutting Tool Engineering (October 2008).• TuffTek® coatings sales to cutting tool manufacturers and users in automotive and other manufacturing industries; coating technology for manufacturing, biomedical, electronics, and military.• Frost & Sullivan’s 2005 Award for Excellence in Technology in Advanced Coatings, Surface Technologies, and Spray Coatings.• R&D Magazine Micro/Nano 25 Technologies of Tomorrow Award among 25 best micro- and nanotechnologies of 2006.• 2007 Recognition of Excellence in Innovation Award, Under Secretary of Commerce for Technology.• Twenty employees with high wages for Arkansas. © Copyright 2003-2012. EnableVentures, Inc. 8
  9. 9. HemCon, Inc.• Dressing developed with Oregon Medical Laser Center & US Army - $300K initial Army contract• Received 2nd fastest FDA clearance (48 hours)• 2003 – $8.7M appropriation for manufacturing expansion & procurement• 2004 – $10.5M appropriation for R&D & procurement• 2005 – STTR Grant for $272K• Top 10 Army Inventions Award• 2006 – $5.0M appropriation for procurement• Today – global commercial and retail sales © Copyright 2003-2012. EnableVentures, Inc. 9
  10. 10. Life Sciences Cases – Hemcon cont’d• Frost and Sullivan’s 2006 Technology Innovation of the Year award• Best of What’s New Award by Popular Science 2003• 2007 Tibbetts Award from the Small Business Technology Council• 2007 Deloitte Technology Fast 500• Entrepreneur magazine’s Hot 500• Inc. magazine: America’s 500 fastest – growing private companies © Copyright 2003-2012. EnableVentures, Inc. 10
  11. 11. Advanced Ceramic Research, Inc. Tucson, AZ SBIR Hall of Fame• ACR’s first revenues from SBIR and $1,000 in start-up capital.• Since 1989, received nearly $6 million in SBIR/ STTR funding• Over $30 million in follow-on non-SBIR/STTR funding• $35 million in license and technology transfer contracts.• Early follow-on funding from ONR, DARPA, DOE; now most from defense prime contractors, Fortune 500 companies.• From 3 employees in 1990 to 40+ in 1999.• Revenues grew 2,000%, making Inc. magazine’s Fastest 500 (1993 to 1997).• Successful acquisition by BAE Systems © Copyright 2003-2012. EnableVentures, Inc. 11
  12. 12. What’s in SBIR for large businesses?Phase I Award $ 150,000Phase II Award $ 1,000,000Phase III Typical Commitment $ 350,000Government Phase III Match $ 150,000 Total: $ 1,650,000What is Pb alone vs. partnering? Primes, where can you get $1M at such Pb? © Copyright 2003-2012. EnableVentures, Inc. 12
  13. 13. Venture funding with SBIRs?• Long-term strategic decision• Compelling business proposition• Relationships with customers• Good systems engineering• Consistency in sound business practices © Copyright 2003-2012. EnableVentures, Inc. 13
  14. 14. Sharon’s lessons• Have a strategic plan and stay focused – Technology maturity > market pace• Offer a specific solution• Build relationships based on common science/technology interests, if possible• Make customer a hero – Agencies want and need bragging rights – SBIRs often used for training – Keep relationship active if possible – Publish/present papers in great venues• Dont give up on a good idea!!! © Copyright 2003-2012. EnableVentures, Inc. 14
  15. 15. Common Questions• Company qualifies for program? - Ownership• Principal Investigator (PI) issues - SBIR vs. STTR• Come back for Breakout Session #2 – SBIR Program Overview © Copyright 2003-2012. EnableVentures, Inc. 15
  16. 16. Break2:30 – 2:45 pm © Copyright 2003-2012. EnableVentures, Inc. 16

×