The document discusses challenges with long-term research funding and potential solutions. It notes that shareholders demand short-term returns, which discourages long-term research investments. Additionally, grants often require short-term objectives. However, some large tech companies invest heavily in research by issuing two classes of stock to maintain control and invest in "moonshot" projects despite investor pressure. While crowdfunding is proposed as a solution, it is deemed not viable due to lack of public interest and emphasis on short-term results.

1. PROJECT ILEUM
WeiWei Kailen Alex Nino

2. People
Problem Solution
People
Problem Solution
People
Problem
Solution
The 24k ppl die (within
3 years) in SF
Dying is
expensive
N/A
Other Areas
We Considered
People
Problem
Solution
Subscription Housing
18,695 Demand for Rent
People who want homes
only at certain times.
Need for housing
increasing
N/A

3. Obsessive
Viable
Reachable
Research funding
& prestige for scientists
There is money in research
however it is inefficiently and
poorly distributed.
How do we bridge this gap?

4. Long Term
Research Funding

5. “Technology startups today work very well for
making a super-efficient piston engine, but
they are unlikely to fund the kind of open-
ended R+D required to develop a jet engine.”
- Sam Altman

6. Researchers at Bell are credited with the
development of the transistor, laser, Unix, and the
languages C, C++ and S.
Dupont Research Labs is responsible for discoveries
such as Rayon, Teflon, and Solar Cells.
Dupont & Bell

7. NASA ROI
Every dollar invested returns $14 to the economy

8. Average Angel Investor Returns
2.6 times
capital returns
3.5 years
from investment to exit

9. People
Problem
Solution
Scientist & Researchers
Grants require a detailed
objective and agenda, as well
as a short-term return
People
Problem Solution

10. People
Problem Solution
People
Problem
Solution
Tech companies
Investors do not want
to fund long-term research

11. SOM / SAM / TAM

12. SAM
US tech funding
$170 billion
SOM
Bay Area R&D funding
$77 billion
TAM
Global R&D $2066 billion
US R&D: $527 billion

13. Next steps

14. Thank you

15. San Francisco Housing analysis
Why is money spent on NASA not wasted
Apple R&D Spending Charts
Apple R&D spending rises but still trails Facebook, Google, Amazon
California companies lead nation R&D spending performance
Annual Global R&D Report by R&D Mag
Y Combinator Research Objective
Dow-Dupont raises even more concerns America is abandoning
corporate research
Investing for the long term
References

16. Appendix

20. In Q1, R&D totaled 16.6% of Google revenue,
Bloomberg said, up from 13.8% two years earlier.
While Google aims to make gains in artificial
intelligence, it’s trailing in software bots, an area
where both Microsoft and Facebook made recent
announcements.
Google’s R&D spending will rise 16% in 2016 to
$14.3 billion, BMO Capital Markets estimates.
Then there’s Amazon. In Q1, Amazon’s R&D
spending was up 28% to $3.53 billion, Bloomberg
reported. At that growth rate, Amazon’s R&D
spending will likely top Google’s this year.

25. How is research funded?

26. Private funding
Government grant
Educational institutions

27. Is crowdfunding a viable solution to the lack of
funding in the research industry?

28. Discovery: There is a lack of general
interest in research projects, and
distrust of science.

29. Why is there a lack of long-term
research funding?

30. Shareholders.
Besides the idea that long-term research costs too
much, takes too long, and is high risk, Impatient
investors are eager for immediate stock price boosts.

31. Dow-Dupont & Bell Nokia
Bell Labs has virtually disappeared as a result of
mergers that left it owned by Nokia.
America’s two leading chemical manufacturers
combined. About a month later, the new CEO vowed
to cut R&D, and break the company into three smaller
firms as a reaction to investor pressure.

32. Executive-level Pressure
In a 2013 Survey of more than 1,000 Board Members
and C-Suite executives around the world:
63% of respondents said the pressure to generate
short term results has increased over the past 5 years
79% felt especially pressured to demonstrate strong
financial performance over a period of 2 years or less

33. How to beat the investors.
Tech companies such as Apple, Google, Amazon,
and Facebook continue to invest in research at very
high rates.
This control over investors is often achieved by using
two classes of stock: Voting and nonvoting shares.
This allows these companies to invest billions in
“moonshot” projects

34. We learned crowdfunding is not a viable solution
Lack of:
Public Interest
Short term results (ex: Kickstarter backer rewards)