1. @NYUEntrepreneur
A University’s Role in
Funding Startups
Frank Rimalovski
Executive Director, NYU Entrepreneurial Institute
Managing Director, NYU Innovation Venture Fund
March 13, 2015

2. @NYUEntrepreneur
Topics
! About me
! About Entrepreneurship @ NYU
! Why funding is important?
! How do we do it?
! What have we accomplished?
! What else?
3

3. @NYUEntrepreneur4

4. @NYUEntrepreneur5

5. @NYUEntrepreneur6

6. @NYUEntrepreneur7

7. @NYUEntrepreneur8

8. @NYUEntrepreneur9
Insert'airplane'photo'

9. @NYUEntrepreneur10

10. @NYUEntrepreneur
About the Entrepreneurial Institute
! Grew from Innovation Venture Fund in 2010
! Lead NYU-wide initiative to accelerate pace
of tech commercialization & startup activity
! Separate, but work closely with tech
transfer office (Office of Industrial Liaison)
! Dedicated team of startup experts offering
resources, programs, events & staff to help
NYU startups start up
11

11. @NYUEntrepreneur
Early Experience: 2010-12
! Lot’s of interest, but few investment-
ready ventures
! Tapping into small percent of NYU
! Disconnected from NYC ecosystem
! Common needs across sectors,
schools & students/faculty
! Mythology & misinformation abounds
12

12. @NYUEntrepreneur
Classic Blunders
! Confusing vision with product/business
! “If you build it they will come”
! Trying to be all things to all people
! Hiring “code monkey” to build your app
! Relying on TTO to find a CEO/funding
! Fund Build Customers
13

13. @NYUEntrepreneur
Helping startups start up

14. @NYUEntrepreneur
Vision
Create a culture that
values, promotes & facilitates
technology-based entrepreneurship
university-wide

15. @NYUEntrepreneur
Mission
Creating an entrepreneurial ecosystem
that serves the entire NYU community
providing inspiration, education,
networking, acceleration & funds

16. @NYUEntrepreneur
Our “Customers”
17
Students
Faculty
PhDs/
Researchers

17. @NYUEntrepreneur
Our Focus
18
Information
Technologies
Life
Science/
Healthcare
Physical
Science/
Energy

18. @NYUEntrepreneur
Our Playbook
19
• Celebrate
role models
• Speakers
• Events
• Incentives
• Classes
• Workshops
• Bootcamps
• Handbooks
& Guides
• Internships
• Clubs & orgs
• Showcases
• Meetups
• Social media
• Collaborative
workspaces
• Coaches
& Mentors
• Pitch Events
• Competitions
• Accelerators
• I-Corps
• Prototype funds
• Non-dilutive
fund “training”
• Venture Funds
• Gap/POC funds
Inspire Educate Connect Accelerate Fund

19. @NYUEntrepreneur
NYU Innovation Venture Fund

20. @NYUEntrepreneur
Fund Overview
! Philanthropic seed fund
! Evergreen: NYU sole “LP”
! Active diligence
! Help build smart syndicates
! $100-200k direct investments
! Converts, Series Seed & A
! Board observer seats
! Opportunistic follow-ons
21
I V F

21. @NYUEntrepreneur
Checks & Balances
Pitch to
IVF
Prelim
Diligence
Pitch to
IRB
Diligence
&
Syndicate
Building
Memo for
IRB
Approval
SVP/GC/
CFO
Approve
CFO
Signature
22

22. @NYUEntrepreneur
Fund Portfolio
23

23. @NYUEntrepreneur
Select Co-Investors
24

24. @NYUEntrepreneur
By the Numbers
25
Investments
10
Sectors
Info Tech: 7*
Life Sci/Health: 4*
NYU Founders (School)
CAS: 2 Medicine: 6 Eng: 1
Stern: 5 Dentistry: 2
Law: 1 Courant: 1
NYU Founders (Type)
Students: 8
Faculty: 8
Researcher: 2
IT Investments
Hardware: 2
Software: 5
Invested Capital
Invested: $1,125,000
Value: $1,289,309
Female Cofounders
40%
Total Capital Raised
$20,490,000 (>18x)
'

25. @NYUEntrepreneur
Why this investment model?
! Participate in larger rounds to achieve
meaningful milestones & value inflection
! Invest as part of a larger syndicate
o Leverage diligence, expertise &
connections
o Follow-on financial support
o Co-investors to serve on boards
! Other sources exist in/outside NYU to fill
pre-VC needs
26

26. @NYUEntrepreneur
Critical Role of the Fund
! Return on investment
! Demonstrates University commitment &
importance of entrepreneurship
! Raises NYU's profile amongst peer
institutions & government agencies
! Credibility & bridge building with NYC
investor community
! A catalyst for entrepreneurship within NYU
27

27. @NYUEntrepreneur
Money not 1st item in critical path
28

28. @NYUEntrepreneur
Our Playbook
29
Inspire Educate Connect Accelerate Fund

29. @NYUEntrepreneur
Other Sources of Startup
Funding for NYU Entrepreneurs
30

30. @NYUEntrepreneur
Startup Funding Lifecycle
31
Discovery Validation
Customer
Creation
Company
Building
Test
assumptions
about
customer
needs/problem
& develop MVP
Seek
Validation that
people are
interested in
your product/
service
Begins to build
demand &
improve
efficiency of
customer
acquisition
Drive growth
aggressively
& execute
business model
Invention
& ideation
Grants,
Crowdfounding
Competitions
Founders +
Credit cards
Crowdfounding
I-Corps
Accelerators
SBIR/STTR +
Friends & family
Angels
Seed funds
Venture
capital
fundsValuation*
Source: startupcompass.co

31. @NYUEntrepreneur
NYU Prototyping Fund

32. @NYUEntrepreneur33
NYU Green Grants

33. @NYUEntrepreneur

34. @NYUEntrepreneur35

35. @NYUEntrepreneur36Confiden1al'
$200k NYU Entrepreneurs Challenge

36. @NYUEntrepreneur
NYU Summer Launchpad

37. @NYUEntrepreneur38

38. @NYUEntrepreneur
Institute & Fund Goals
! Make entrepreneurship a campus-wide,
multi-disciplinary experience
! Bring more NYU innovations to market
! Compete for top students, faculty &
research funding
! Generate return on investment
! Create generation of entrepreneurs to
inspire & support NYU for years to come
39

39. @NYUEntrepreneur
Questions?
entrepreneur@nyu.edu
@nyuentrepreneur
nyu.edu/entrepreneur
nyuentrepreneur.com
16 Washington Place
40

40. @NYUEntrepreneur
Helping startups start up