Dual Use Hawaii presents at the Hawaii Venture Capital Association Meeting


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  • Thank you to HVCA and Bill Spencer for the opportunity to share a little bit about what I know about dual-use in Hawaii.
  • Dual Use Hawaii presents at the Hawaii Venture Capital Association Meeting

    1. 1. Hawaii’s Dual Use Companies Transitioning for Growth Hawaii Venture Capital Association September 13, 2006 Ian Y. Kitajima
    2. 2. The Message Federal R&D Funding has created Infrastructure Technologies Companies
    3. 3. The Message Next step is Sustainability , i.e., moving away from relying on federal R&D dollars at the current levels
    4. 4. The Message How we can achieve this is to focus on improving our… Competitiveness Commercialization Cooperation
    5. 5. The Message Next step : Dual-Use and VC Community “talking story”
    6. 6. The Opportunity <ul><li>Dual Use Companies </li></ul><ul><li>Technical People </li></ul><ul><li>Technology Focus </li></ul><ul><li>Have less </li></ul><ul><li>Business People </li></ul><ul><li>Market Focus </li></ul><ul><li>Business models that are sustainable </li></ul>
    7. 7. A VC’s Top 10 List on Dual Use 10. My questions make no sense to them, they think I’m stupid 9. Small service providers and 8(a)s not setup to change the world 8. VC’s won’t fund commercialization within existing walls 7. Many should consider licensing, and forget 6. Most need a marketing person, asap 5. Understands gov’t contracting process but not the VC funding process 4. Manage multiple projects well, not setup to focus on one technology to commercialize. 3. Transition from collegial to entrepreneurial culture will be difficult. 2. Struggle to think beyond the gov’t customers 1. Focus more on technology dev, than on biz dev
    8. 8. Federal R&D Funding <ul><li>$4B </li></ul><ul><li>RDT&E* 10 yrs </li></ul><ul><li>*Research, Development, Test & Evaluation </li></ul>Source: Enterprise Honolulu Defense & Dual Use Strategic Plan
    9. 9. Federal R&D Funding <ul><li>$323.5M </li></ul><ul><li>63 RDT&E Projects </li></ul><ul><li>in 2005 </li></ul>Source: Enterprise Honolulu Defense & Dual Use Strategic Plan
    10. 10. Other Data Sources: HIPA 2005 Policy Review; University of Hawaii OTTED, U.S. Department of Commerce, Bureau of Economic Analysis; U.S. Department of Commerce, Census Bureau; National Science Foundation/Science Resources Study Division; U.S. Bureau of Labor Statistics; Milken Institute; National Venture Capital Association; U.S. Patent & Trademark Of.ce; U.S. Of.ce of Management & Budget; U.S. Small Business Administration.  49th 75 / yr Patent Activity  47th 1? Business created from UH R&D (2000-2002)  24th $3.5M / yr SBIR grant funding  15th 65 / yr Scientists & Engineers % of WF  ~ 80+ No of Defense DU Companies Trend Rank 2003
    11. 11. Infrastructure - Created Source: Enterprise Honolulu Defense & Dual Use Strategic Plan
    12. 12. Technology - Created Navatek Teams With General Dynamics to Win $8.4 Million Navy USV Contract
    13. 13. Companies - Created
    14. 14. Sustainability – Next Step <ul><li>Competitiveness </li></ul><ul><li>Commercialization </li></ul><ul><li>Cooperation </li></ul>
    15. 15. How? <ul><li>Competitiveness – SBIRs/STTRs </li></ul><ul><li>Commercialization - HTDV </li></ul><ul><li>Cooperation – Federal Network </li></ul>
    16. 16. SBIRs/STTRs - Competitiveness <ul><li>National competition of ideas </li></ul><ul><li>Seed funding for high-risk ideas </li></ul><ul><li>Due diligence by national experts </li></ul><ul><li>Reduce risks – technical, team, market </li></ul><ul><li>Non-dilutive capital </li></ul><ul><li>FFF (Friends, Family, FEDS) </li></ul>
    17. 17. SBIR Program Phase I – Funds Feasibility Study Phase II – Funds Prototype Phase III – BYOF, rights to sell
    18. 18. HTDV – Commercialization Hawaii Technology Development Venture 2 years 33 projects $7.4M
    19. 19. Federal Network – “Round um up”
    20. 20. Catalyst – EH Defense Industry Plan
    21. 21. Recommendation – Band Together Face Goliath alone? DAN
    22. 22. Recommendation – Band Together Trust & Teamwork Kawika
    23. 23. Talking Story Shared Dreams Shared Nightmares
    24. 24. About What? <ul><li>Technology Center </li></ul><ul><li>Recruiting & Retaining </li></ul><ul><li>Workforce Development </li></ul><ul><li>Business Development </li></ul>
    25. 25. “ First Wed” <ul><li>Social gathering to foster </li></ul><ul><ul><li>Relationship building </li></ul></ul><ul><ul><li>Collaborations </li></ul></ul><ul><ul><li>Knowledge sharing </li></ul></ul><ul><li>Focused on industry issues </li></ul><ul><ul><li>Defined by industry </li></ul></ul><ul><ul><li>Driven by industry </li></ul></ul><ul><ul><li>Owned by industry </li></ul></ul>
    26. 26. “ First Wed”
    27. 27. Yahoo Groups List of Members Calendar Alerts File Uploads Links Polls Custom Database Photo Galleries Push to Email
    28. 28. What’s Next <ul><li>First Wed (by invitation only) </li></ul><ul><li>October 4th </li></ul><ul><li>Sam Choy’s on Nimitz </li></ul><ul><li>7:30am to 9:00am </li></ul>
    29. 29. Questions? <ul><li>Ian Kitajima </li></ul><ul><li>[email_address] </li></ul><ul><li>808.531.3017 </li></ul>
    30. 30. <ul><li>Extra Slides </li></ul>
    31. 31. Language Barrier Non-imaging SOI utilizing BD is cool! Who’s the market, how big? Technology, Team, Traction Traction, Team, Technology The man wants a blue suit, turn on the blue lights Vitamin or Painkiller? Good question Who’s the competition? Study the solicitation What’s the problem? Dual Use Community Venture Community
    32. 32. Language Barrier Acquisitions / Program of Record Acquisitions / IPOs NIST’s ATP, In-Q-Tel, Hi-CP VCs SBIRs/STTRs, CEROS, HTDV Angels IR&D, Hi-CP FFFs Dual Use Community Venture Community