Successfully reported this slideshow.
Your SlideShare is downloading. ×

Startups at Universities - UniZagreb FER - Croatia - Apr 16 2015

Ad
Ad
Ad
Ad
Ad
Ad
Ad
Ad
Ad
Ad
Ad

Check these out next

1 of 87 Ad
Advertisement

More Related Content

Similar to Startups at Universities - UniZagreb FER - Croatia - Apr 16 2015 (20)

Advertisement

More from Burton Lee (20)

Recently uploaded (20)

Advertisement

Startups at Universities - UniZagreb FER - Croatia - Apr 16 2015

  1. 1. The  Role  of  Universi/es  and  Student-­‐led  Companies   for  the  Future  Growth  of  Croa/a  and  Europe   Entrepreneurship  and  Startups  at  Universi1es   Dr.  Burton  H.  Lee  PhD  MBA   Lecturer,  European  Entrepreneurship  &  Innova4on,  Stanford  Engineering   Burton.Lee@stanford.edu  |  www.StanfordEuropreneurs.org  |  @Europreneurs       University  of  Zagreb   Faculty  of  Electrical  Engineering  &  Compu/ng  (FER)     April  16  2015  
  2. 2. Gree1ngs  from  Silicon  Valley       (and  the  Republic  of  California)  
  3. 3. Today’s  Topics   •  America’s  Experience  in  Star4ng  New   Companies  Out  of  Universi4es   – Students  and  Professors   •  The  role  of  universi4es  in  economic   development   •  Lessons  for  Croa4a   Apr  16  2015   Copyright  2015  Burton  H.  Lee  and  Innovarium  Ventures   3  
  4. 4. ABOUT THE SPEAKER DR. BURTON LEE PHD MBA STANFORD SCHOOL OF ENGINEERING | INNOVARIUM VENTURES BURTON.LEE@INNOVARIUM.NET WWW.STANFORDEUROPRENEURS.ORG @EUROPRENEURS
  5. 5. Map  of  Founders  &  Investors     Invited  as  Speakers   European  Entrepreneurship  &     Innova/on  @  Stanford  Engineering   (ME421)         Winter  2014  –  Year  Six   January  6  –  March  10  2014   Enterprise Estonia Silicon Valley Gent, Flanders Region Belgium iMinds ICT Institute
  6. 6. hRp://www.europeanentrepreneursatstanford.com  |  hRp://me421.stanford.edu   Apr  16  2015   Copyright  2015  Burton  H.  Lee  and  Innovarium  Ventures   6  
  7. 7. February 10 2014 @ Stanford Engineering Jeff Lynn, Seedrs (UK) & Matija Kopic, Farmeron (HR)
  8. 8. March 10 @ Stanford Engineering Gyula Feher, Ustream (HU); Marcin Treder, UXPin (PL)
  9. 9. March 3 @ Stanford Engineering Wim De Waele, iMinds (BE); Martin Hauge, Creandum (SE) & Lieven Vermaele, SDNsquare (BE)
  10. 10. February 24 @ Stanford Engineering Giuseppe Zocco, Index Ventures (CH) & Emrah Yalaz, String Ventures (TR)
  11. 11. January 27 @ Stanford Engineering Vassil Terziev, Telerik (BG) & Japec Jakopin, Seaway Design (SI)
  12. 12. Topics Covered Apr  16  2015   Equity Crowdfunding European Entry Strategies for Valley Startups East v West Europe Copyright  2015  Burton  H.  Lee  and   Innovarium  Ventures  |  Silicon  Valley   12  
  13. 13. The Story of European Entrepreneurship in Europe Europe vs Silicon Valley Apr  16  2015   Entrepreneurship  and   Innova/on  in  Europe  Today     Europe  vs  Silicon  Valley     Europeans  in  Silicon  Valley   Arts,  Culture,   Design,  Language   &  Tradi4ons   History  &   Poli4cs   Law  &   Policy   Ins4tu4ons  &   Personali4es   Copyright  2015  Burton  H.  Lee  and   Innovarium  Ventures  |  Silicon  Valley   13  
  14. 14. University  Advisory  &  Academic  Engagements   USA  –  Europe  –  La/n  America   Apr  16  2015   Copyright  2015  Burton  H.  Lee  and  Innovarium  Ventures   14  
  15. 15. Selected  Industry  Experience   Apr  16  2015   Copyright  2015  Burton  H.  Lee  and  Innovarium  Ventures   15   Co-­‐Founder   Member,  Advisory  Board  Co-­‐Founder  
  16. 16. Irish  Na4onal  Innova4on  Taskforce   with  Prime  Minister  Brian  Cowen  -­‐  Dublin,  Ireland   Prime  Minister   B.  Cowen   Apr  16  2015   Copyright  2015  Burton  H.  Lee  and  Innovarium  Ventures   16  
  17. 17. Great  Tech  Startups   from  Croa/a  
  18. 18. Apr  16  2015   Copyright  2015  Burton  H.  Lee  and  Innovarium  Ventures   18  
  19. 19. Apr  16  2015   Copyright  2015  Burton  H.  Lee  and  Innovarium  Ventures   19  
  20. 20. Apr  16  2015   Copyright  2015  Burton  H.  Lee  and  Innovarium  Ventures   20  
  21. 21. Apr  16  2015   Copyright  2015  Burton  H.  Lee  and  Innovarium  Ventures   21  
  22. 22. Apr  16  2015   Copyright  2015  Burton  H.  Lee  and  Innovarium  Ventures   22  
  23. 23. Apr  16  2015   Copyright  2015  Burton  H.  Lee  and  Innovarium  Ventures   23  
  24. 24. Apr  16  2015   Copyright  2015  Burton  H.  Lee  and  Innovarium  Ventures   24  
  25. 25. Apr  16  2015   Copyright  2015  Burton  H.  Lee  and  Innovarium  Ventures   25  
  26. 26. Apr  16  2015   Copyright  2015  Burton  H.  Lee  and  Innovarium  Ventures   26  
  27. 27. Apr  20  2015   Copyright  2015  Burton  H.  Lee  and  Innovarium  Ventures  |   Silicon  Valley   27   World  Class  Startups  Out  of  Croa/a   Rimac  Automobili   Zagreb,  Croa/a  
  28. 28. America’s  Experience  in  Crea/ng   Technology  Companies  Out  of  Universi/es     The  Stanford  Example     The  Cri/cal  Role  of  Students  and   Professors     Lessons  for  Croa/a  
  29. 29. Big Picture Stanford Budget FY14-15: $5.1B Total $1.33B for research $928.5M of gifts (FY14) $21.4B Endowment OTL $108.6M income in FY14
  30. 30. Stanford has over 15,000 students and over 2,000 faculty members that teach and conduct research.
  31. 31. History  of  Entrepreneurship  at  Stanford   •  First  spin-­‐out:     – HewleR  Packard  (1939)   •  Other  Famous  Stanford  Companies   – Google   – Cisco   – Yahoo   – VMWare   Apr  16  2015   Copyright  2015  Burton  H.  Lee  and  Innovarium  Ventures   31  
  32. 32. History  of  Entrepreneurship  at  Stanford   •  During  2007-­‐2011,  Stanford  University   students,  alumni  and  professors  raised  $4.1Bn   in  venture  capital  for  startups   •  Since  1930,  Stanford  students,  alumni  and   professors  have  built:   – 40,000  companies   – 5,400,000  jobs  (globally)   – $2.7  Trillion  in  annual  revenues   Apr  16  2015   Copyright  2015  Burton  H.  Lee  and  Innovarium  Ventures   32  
  33. 33. Entrepreneurship  @  Stanford   Major  Centers  and  Programs   •  Engineering  School   –  Stanford  Technology  Ventures  Program  (MS&E)   –  Electrical  Engineering  (Asian  entrepreneurship)   –  Mechanical  Engineering  (European  entrepreneurship)   •  Business  School   –  Center  for  Entrepreneurship  Studies   •  Medical  School   –  ‘BioDesign’  Medical  Device  Entrepreneurship  Program   •  Stanford  Entrepreneurship  Network  (SEN)   Apr  16  2015   Copyright  2015  Burton  H.  Lee  and  Innovarium  Ventures   33  
  34. 34. Apr  16  2015   Copyright  2015  Burton  H.  Lee  and  Innovarium  Ventures   34  
  35. 35. Student  Entrepreneurship  @  Stanford   Apr  16  2015   Copyright  2015  Burton  H.  Lee  and  Innovarium  Ventures   35   ~  7  –  10%  of  Stanford  students  are  engaged  in  an  entrepreneurship-­‐related  ac4vity   (Source:  BHL  es4mate)   BASES  Student  Entrepreneurship  Club   Engineering  School   MBA  Student  Entrepreneurship  Club   GSB  Business  School   Post-­‐doc  Entrepreneurship  Club   Medical  +  Engineering  +  Other   Stanford’s  Accelerator   Founded  by  Students   Stanford  Student  Enterprises   Run  by  Students  
  36. 36. Why  are  Many  Stanford  Students   Passionate  About  Entrepreneurship  ??   •  Be  your  own  ‘boss’   •  Challenging  and  fun  –  and  cool   •  Autonomy  and  Independence   •  A  chance  to  realize  your  dreams  and  create  change   •  Best  way  to  realize  one’s  full  poten4al   •  Medium-­‐  and  large-­‐sized  companies  can  be   bureaucra4c  and  slow-­‐to-­‐innovate   •  Can  no  longer  rely  on  established  companies  for   permanent  employment   •  LiRle  downside  risk  –  students  can  s4ll  find  a  very   good  job  with  a  corpora4on  even  if  their  startup  fails   Apr  16  2015   Copyright  2015  Burton  H.  Lee  and  Innovarium  Ventures   36  
  37. 37. “T  Model”  vs  “I  Model”  of  Educa/on   Which  is  Most  Effec4ve  for  Suppor4ng  Entrepreneurship  &  Innova4on?   Apr  16  2015   37   Design  |  Inter-­‐disciplinarity  |  Leadership     Cri/cal  Thinking  |  Crea/vity  |  Entrepreneurship   Ability  to  Understand  Mul4ple  Disciplines   Depth  of  Topic  Knowledge   Depth  of  Topic  Knowledge   “WISSENSCHAFT  ONLY”   APPROACH   “WISSENSCHAFT  +++”   APPROACH   Copyright  2015  Burton  H.  Lee  and  Innovarium  Ventures  
  38. 38. Origins  of  New  Startups   Created  Out  of  Stanford   •  Research   •  Teaching  ||  Classroom  Ac4vi4es   •  Student  Residences   •  StartX  Accelerator   Apr  16  2015   Copyright  2015  Burton  H.  Lee  and  Innovarium  Ventures   38  
  39. 39. Research   and   Intellectual  Property  –  based  Startups  
  40. 40. The Office of Technology Licensing (OTL) is responsible for… the formal transfer of patents, copyrights and other technology through license agreements.
  41. 41. OTL’s Mission: To promote the transfer of Stanford technology for society’s use and benefit while generating unrestricted income to support research and education.
  42. 42. Functional Antibodies FM Sound Synthesis Recombinant DNA Google Notable Stanford Inventions
  43. 43. Timeline of Stanford Inventions •  1970 – OTL Established •  1971 – FM Sound Synthesis ($22.9M) •  1974 – Recombinant DNA ($255M) •  1981 – Fiber Optic Amplifier ($48.4M), MINOS ($4.3M) •  1984 – Functional Antibodies ($486.2M) •  1990-1992 – Discrete Multi-tone Technologies for DSL ($29.7M) •  1993 – MIMO for Wireless Broadcast ($1.6M) •  1996 – Improved Hypertext Searching - GoogleTM ($340.1M) •  2001-2003 – Data Visualization Software ($14.8M) •  2001-2007 – Treatment for Celiac Disease ($0.6M) •  2002 – Code Error Detection Software ($9.7M) •  2010-2012 – Education Program for Gifted Youth ($1.8M) •  2016 – the next big thing ???
  44. 44. Stanford inventions begin as nascent ideas supported by over $1 billion per year of funding for research across 7 schools and SLAC.
  45. 45. How are Stanford innovations transferred to others to develop into new products and companies?
  46. 46. Most Inventions are Never Licensed 9-10 invention disclosures/week 50% have patent applications filed 20-25% are licensed* *some inventions such as software and biological materials are licensed without patent protection
  47. 47. Invention Disclosures Then. . . 28 in 1970 Now. . . 483 in 2014 10,380 cumulative
  48. 48. How Does OTL Decide What To License? Licensing teams try to decide which inventions can make an impact.
  49. 49. Questions Is the invention evolutionary or revolutionary? What is the stage of development? Is it patentable and could a patent be enforced? What is the potential market size? What is the inventor’s track record?
  50. 50. Licensing Teams* Decide Patent and Licensing Strategy *Licensing Associate and Liaison teams have technical degrees and are market focused.
  51. 51. “Cradle to Grave” Evaluate overall potential Develop intellectual property strategy and manage patent prosecution Determine when and how to market and license the invention Negotiate contracts Maintain and amend agreements Monitor development and commercialization and track royalty payments
  52. 52. OTL Markets Broadly to Find the Best Fit for the Technology
  53. 53. Recombinant DNA: Many Companies of All Sizes
  54. 54. Functional Antibodies: One Mid-Sized Company
  55. 55. Google: One Start-Up Company
  56. 56. Licenses Then. . . 3 in 1970 Now. . . 106 in FY14 over 1150 active licenses from ~3500 active inventions ~3400 cumulative licenses some inventions have many licensees
  57. 57. Equity Can be One Component of the Financial Package About 10-15% of OTL’s licenses have an equity term.
  58. 58. License Agreements with Equity 20 licenses with equity in FY14 Stanford holds equity in 121 companies as a result of license agreements (as of Aug. 31, 2014) Managed by Stanford Management Company Liquidated soon after IPO or at merger/ acquisition
  59. 59. Equity Cash-Out at Stanford $23.2 M in FY14 $393M cumulative from equity vs. $1.7B in total income $57M cumulative from non-Google equity vs. $1.28B in cumulative cash royalties
  60. 60. Licensed Inventions Can Develop into Products that generate income for the company and royalty returns to Stanford.
  61. 61. OTL Shares the Royalties After deductions for overhead (15%) and expenses, the net cash royalties are divided: 1/3 to inventors 1/3 to inventors’ departments 1/3 to inventors’ school
  62. 62. Teaching   and   Classroom  Ac/vi/es  –  based  Startups  
  63. 63. Product  Design  Courses   •  Not  the  same  as  ‘engineering  design’  !!   •  Students  learn  to  develop  ideas  for  new  products   and  services   –  Work  in  teams  of  engineers,  medical,  business,   humani4es  students   •  Rapidly  develop  ‘sor  prototypes’  to  test  product   idea   •  Work  directly  with  users  outside  the  classroom  to   ask  their  feedback  on  new  product  ideas,  and  to   observe  how  they  might  use  this   •  New  companies  are  oren  created  by  students  from   these  classes   Apr  16  2015   64  Copyright  2015  Burton  H.  Lee  and  Innovarium  Ventures  
  64. 64. Students  Observe  Real  Shoppers  
  65. 65. Jan  31  2014   Copyright  2014  Burton  H.  Lee  and  Innovarium  Ventures  |   Silicon  Valley   68   Product  Concepts  &  Prototypes   developed  by  students  in  collabora1on   with  industry  partners  and  sponsors  
  66. 66. Jan  31  2014   Copyright  2014  Burton  H.  Lee  and  Innovarium  Ventures  |   Silicon  Valley   69  
  67. 67.     Product  Design   Is  *Not*  the  Same  as   ‘Engineering  Design’    
  68. 68. ‘Industry  Professors’  Also  Teach  Students   •  Stanford  uses  hundreds  of  people  from  industry  to   teach  and  develop  new  courses   –  Many  do  not  have  a  PhD  –  PhD  not  required  –  solid  industry   experience  is  necessary   •  Important  way  to  bring  founders,  investors  and  senior   execu4ves  into  direct  contact  with  students  and   professors   •  Connects  university  and  industry  ecosystems  at  a  very   personal  level   Apr  16  2015   71  Copyright  2015  Burton  H.  Lee  and  Innovarium  Ventures  
  69. 69. Student  Residences   as  Informal  Startup  Incubators  
  70. 70. Kirkland  House  @  Harvard  University   Where  Mark  Zuckerberg  once  resided  and  created  Facebook   Apr  16  2015   73  Copyright  2015  Burton  H.  Lee  and  Innovarium  Ventures  
  71. 71. Apr  16  2015   74  Copyright  2015  Burton  H.  Lee  and  Innovarium  Ventures   Student  Housing  @  Stanford  University   Student  Residence   Areas   Main  Campus   Classroom  &  Research  Facili/es   Athle/c  Facili/es   Medical  School   &  Hospital  
  72. 72. Student  Dormitories  as  University  Incubators   •  Student  dormitories  are  the  source  of  many  new   startups   –  Startups  created  outside  of  formal  university  research  or   classroom  structure   –  Students  working/socializing  together  in  informal  groups   and  teams   •  Undergraduate,  graduate   –  Most  of  these  startups  are  ICT-­‐based   –  Most  do  not  go  through  formal  university  IP  registra4on  or   TTO  processes   –  Difficult  for  universi4es  to  count  and  know  how  many   dormitory  startups  are  created  each  year   Apr  16  2015   75  Copyright  2015  Burton  H.  Lee  and  Innovarium  Ventures  
  73. 73. StartX     Stanford  Startup  Incubator  
  74. 74. Apr  16  2015   Copyright  2015  Burton  H.  Lee  and  Innovarium  Ventures   77  
  75. 75. Lessons  for  Croa/a  
  76. 76. Entrepreneurship  in  Europe     vs  Silicon  Valley  Today   Silicon  Valley  Style  Entrepreneurship   •  Highly  Scalable   –  Technology,  Product  Architecture,   Business  Model   –  Business  Processes  &  Back-­‐end  IT  Systems   –  Equity  Structure   –  Innova4on-­‐centric  Culture   –  Very  Rapid  Execu4on  and  Growth   •  “Lean”   –  Mostly  sorware-­‐based  +  some  hardware   •  Serial   •  Parallel   •  Build-­‐to-­‐sell   European  Style  Entrepreneurship   •  Highly  Scalable   –  Skype,  Spo4fy,  Soundcloud,  Rovio   •  Tradi4onal  SMEs   –  >  20  Mn  firms;  92.2  %  with  <  10  employees   (2012)   –  Food,  agriculture,  tourism,  construc4on,   real  estate,  services   •  Family-­‐based  Entrepreneurship   –  German  MiRelstand,  Italy,  France   •  “Black”  Entrepreneurship   –  Black  market  –  Belarus,  Greece,  Italy,  etc   •  “Sustainable”  Entrepreneurship   –  Corporate  entrepreneurship   •  Export-­‐oriented   •  One-­‐4me  entrepreneurship   Apr  16  2015   Copyright  2015  Burton  H.  Lee  and  Innovarium  Ventures   79  
  77. 77. Innova/on  &  Entrepreneurship   Ecosystem  Gaps  in  Europe   •  Startup  Forma4on  Rates   •  Product  Design  Skills   •  Sales  &  Marke4ng   •  Product  Management   •  IT  Systems  Architecture   •  Many  European  companies  and  universi4es   show  substan4al  weakness  in  these  areas  
  78. 78. University  Reform  in  Europe   Problem  Statement   •  Majority  of  European  public  universi4es  are   under-­‐performing  their  full  poten4al   –  Excep4ons:  Germany,  Switzerland,  Netherlands,  UK   and  some  Nordic  countries   •  Generally  under-­‐funded   •  Many  are  mis-­‐aligned  and  disconnected  from   na4onal  innova4on  systems   •  Generally  poor  representa4on  in  global  rankings   •  Jurisdic4on  over  universi4es  resides  at  na4onal/ regional  level,  not  at  EU  level   Apr  16  2015   Copyright  2015  Burton  H.  Lee  and  Innovarium  Ventures  |   Silicon  Valley   81  
  79. 79. University  Reform  in  Europe   Problem  Statement   •  Most  European  universi4es  are  geared  to  teaching  as   primary  mission,  not  research   –  Important  excep4ons  in  Germany,  Switzerland,  UK,   Netherlands  and  some  Nordic  countries   •  Generate  rela4vely  liRle  intellectual  property   •  Do  not  work  well  with  industry   •  Generally  poor  at  commercializa4on  of  research   •  Professors  have  liRle  industry  experience,  and  see  liRle   value  in  acquiring  same   •  LiRle  encouragement  of  entrepreneurship  by  students   Apr  16  2015   Copyright  2015  Burton  H.  Lee  and  Innovarium  Ventures  |   Silicon  Valley   82  
  80. 80. Finland’s  University  Reform   Vision  2020   83  
  81. 81. Lessons  for  Croa/a’s  Universi/es   •  Develop  product  design  programs  in  engineering  and  medical   schools   •  Encourage  students  to  engage  in  entrepreneurship  in  its   many  forms   •  Bring  founders,  CEOs  and  investors  to  universi4es  to  speak   with  students  about  entrepreneurship  and  business   •  Help  students  find  internships  with  startups  and  established   companies   •  Increase  of  ‘industry  professors’  to  teach  entrepreneurship   and  business   •  Strongly  support  student  entrepreneurship  and  robo4cs  clubs   •  Reduce  bureaucracy  and  4me  to  license  intellectual  property   to  companies   Apr  16  2015   84  Copyright  2015  Burton  H.  Lee  and  Innovarium  Ventures  
  82. 82. 85   Join  Our  Online  Community   @Europreneurs Speaker Presentation Slides www.slideshare.net/burtonlee1 Speaker Videos ‘StanfordEuropreneurs’ ‘European Innovation @Stanford’ www.StanfordEuropreneurs.org me421.stanford.edu
  83. 83. THANK  YOU   Dr.  Burton  Lee  PhD  MBA   Stanford  School  of  Engineering   Burton.Lee@Innovarium.net     WWW.STANFORDEUROPRENEURS.ORG     @EUROPRENEURS  
  84. 84.   Working  in  Silicon  Valley,  Europe  and  Washington  DC   •  Senior  financial,  technical  and  strategy  advisory  services  for  global  technology  innova4on  organiza4ons   •  Professional  Services   –  Technology  startup  and  growth  companies   •  Interim  CXO  and  Advisory  Board  roles   •  Expert  guidance  &  decision-­‐making  at  the  interface  between  market/customers,  technology  and  finance   •  Business  development  –  industrial  and  government   •  Business  plan  prepara4on/research/review;  Government  Grant  proposal  prepara4on/review   •  Coaching  and  mentoring  of  CEOs  and  other  CXO-­‐level  managers   •  Assistance  with  government  regulatory  and  policy  agencies   –  Angel,  venture  capital  and  private  equity  Investors   •  Fund  strategy,  team  selec4on  and  market  posi4oning   •  Due  diligence:  technical,  financial,  strategy  and  business  models   –  Public  and  non-­‐profit  R&D  laboratories   •  Technology  transfer  &  partnerships;  venturing  and  spin-­‐out  of  companies;  strategy  and  business  development;  grant  applica4ons   –  Research  universi4es   •  Innova4on-­‐related  models,  policies  and  prac4ces   •  Technology  transfer  and  licensing;  industry  partnerships  and  rela4ons;  development  and  strategy;  grant  applica4ons   –  Na4onal  and  regional  government  agencies   •  Innova4on  policy  formula4on,  analysis  and  review;  cluster  development  strategy;  economic  impact  studies   •  Science  &  technology  policy  formula4on,  analysis  &  review:  space,  avia4on,  nanotechnology,  sorware/AI/robo4cs,  manufacturing   •  Selected  recent  clients   –  US/European  technology  startup  companies  –  alterna4ve  energy,  robo4cs/AI,  sorware,  Internet,  nanotech   –  Venture  and  private  equity  funds  –  aerospace,  nanotechnology,  ICT,  compu4ng,  advanced  materials,  clean  tech   –  Office  of  the  Prime  Minister,  Ireland;  European  Commission;  Na4onal  Science  Founda4on;  NASA,  Na4onal  Academies   •  Dr.  Burton  Lee  PhD  MBA,  Managing  Director   –  Contact:  Burton.Lee@innovarium.net                                                                Based  in  Palo  Alto,  CA  near  Stanford  University   –  Bio/References:  LinkedIn  Profile   –  Lecturer,  European  Entrepreneurship  &  Innova/on,  Stanford  School  of  Engineering   Apr  16  2015   87  Copyright  2015  Burton  H.  Lee  and  Innovarium  Ventures  

×