new paradigms in business incubation

New Paradigms in Business Incubation

May 2010


Evolution 1980 - Present

‣ Beginning

‣ 1989

‣ 1995

‣ 2000

‣ 2002

‣ Today

FutureConfidential property of

Laura J. Kilcrease [email protected]


In The Beginning

‣ Incubation- Building

‣ Entrepreneurs- Small business

- “Mom and Pop”

Confidential property of Laura J. Kilcrease [email protected]


@ 1989

‣ Incubation

- Building + Service

‣ Entrepreneurs

- Any type of business

‣ Value-add

- Incubator Director

- Know-how network (service providers)

‣ Metrics

- Jobs created

- Space occupiedConfidential property of



@1995

‣ Incubators

- Specialized by industry, e.g., biotechnology, etc.

‣ Entrepreneurs

- Aligned with target industry

‣ Value-add

- Incubator Director

- Know-how

- Limited industry specific expert(s)

‣ Metric

- Jobs created

- Investment $ raised Confidential property of Laura J. Kilcrease [email protected]


@ 2000

‣ Incubators

- Virtual

- For profit

‣ Entrepreneurs

- Internet targeted firms

‣ Value-add

- Know-how

- Clustering of similar firms

‣ Metrics

- Time to exit/liquidity

NOTE: Mass failure of publicly traded incubators as well as for-profit within two yearsConfidential property of

Laura J. Kilcrease

[email protected]


@2002

‣ Incubators

- Specialized by industry/market verticals

‣ Entrepreneurs

- Industry experienced

‣ Value-add

- Industry specific incubator Director

- Incubator advisory boards

- Know-how

- Social network/orgs.

- Early consulting to firms

‣ Metrics

- Impact of region

- Wealth creationConfidential property of



Now

‣ Incubators

- Incubators within incubators

- Greater consulting world

- Physical building

- Virtual

- Industry specific

‣ Entrepreneurs

- Highly experienced

- Little experienced in businessConfidential property of



Now cont’d

‣ Value-add

- Providing specialized services by skill and industry

- Forming industry vertical advisory boards

- Assisting clients with forming advisory boards

- Networking

- PR and using media (social and traditional) to get the companies known

- Access to capital

‣ Metric

- Jobs

- New industry clusters, e.g., Cleantech

- Wealth creationConfidential property of



YEAR Company $ granted

2006 Molecular Imprints $ 3,000,000.00

Monebo Technologies $ 500,000.00

2007 Xtreme Power $ 2,000,000.00

2008 RFMicron, $ 925,000.00

Terapio Corp $ 1,700,000.00

Xitronix $ 500,000.00

2009 Agile Planet $ 1,000,000.00

AnaLogix Development Corp $ 1,000,000.00

Note: two other companies awarded this year but not pubic $ 2,000,000.00

Merkatum $ 1,000,000.00 Total awarded by ETF

to IC²/ATI/GCG $ 13,625,000.00

[email protected]

ETF – Total $ granted to Affiliates of IC² Institute since inception of ETF

Confidential property of Laura J. Kilcrease

TechBA Program

• GCG, in conjunction with the United States-Mexico Foundation for Science (FUMEC), operates a technology business accelerator at UT at Austin. TechBA-Austin is sponsored by the Mexican Ministry of Economy.

• TechBA-Austin brings representatives of established Mexican technology businesses to Austin and provides them with office space and support for accelerating their businesses in the US and international markets.

• TechBA-Austin has operated since 2005 and has worked with over 50 Mexican companies. New companies are assessed and admitted as space becomes available.

• In the past three years, TechBA-Austin has generated over $40M in revenue for participating companies.

• Recently, a company was funded from Texas' Emerging Technology Fund.

Market Acceleration through Physical Presence

2006 - Present


[email protected]

IC2 Programs Around the Globe

S. Korea

India

PolandHungary

USA

Chile

Mexico

MiddleEast

Portugal

We measure ourselves by business results generatedCurrently active programs in 6 countriesOver 100 foreign technology commercialization agreements in 3

years

We measure ourselves by business results generatedCurrently active programs in 6 countriesOver 100 foreign technology commercialization agreements in 3

years

Egypt

Malaysia

Brazil

Four Pillars of Success

1

1. Global CompetitivenessDevelop human capitalIdentify most competitive technologyPursue most effective, global commercialization strategiesDevelop the Business capital to support entrepreneurs: Incubators, TTO, Accelerators, Centers of Excellence

2

2. Access to CapitalDevelop angel and venture capital investment fundsAttract economic development resources (IDB etc.)Create conditions conducive to investments in all stages of venture development

3. Access to MarketsPosition your companies in external marketsDevelop global business development resourcesLower barriers to service & product deliveryStrengthen local markets

3 4 4. Sustainability & MomentumDevelop effective know-how to support the ecosystem – train the trainersTrain the entrepreneurs – develop a commercialization cultureDevelop global business partnerships & global access networksDevelop global advisory networks

Goals Achieved

Successful Eco-System


Program Results

• Technology transfer, integration and adaptation in the country

• Know-how transfer and high-skilled job creation in country

• Long-term sustainability leading to improved economic value-add

• Business results leading to enhanced cooperation between local and international companies

• Access to global markets resulting in foreign investment

• Specialized training contributing to the development of a more efficient and productive labor force



Future Firms

‣ Firm will require greater degree of “soft-landing” help in both directions (U.S. to Portugal and Portugal to U.S.)

- Foreign filing

✓Company formation

✓Controlling cost

✓Product standards and compliance

✓ IP standards

✓Labor laws

✓Tax

✓Attracting capital



Future Firms cont’d

‣ Greater emphasis on creating new firms by incubators rather than wait for firms to apply

‣ Industry based value add networks will become of greater importance for faster success to firms

‣ Access to capital will be localized even for “soft-landing” companies

‣ Early stage capital sourcing needs to be addressed

‣ Every geographic location will need to “brand” its dominant feature and get the message out e.g., “Ireland is the gateway to European markets”

‣ There will be greater amount of near sourcing services



Future Incubators

‣ Incubators will align with international partners by either market or industry requirements

‣ Incubators will host foreign incubators as well as firms within their premises

‣ Networks of incubators will form international alliances

‣ Incubators will proactively need to work on new business creation with TTOs and students (new programs, training, and services will be required)

‣ Incubators will proactively partner on bringing global entrepreneurial economic development program to their regions

‣ Exchange incubator team members to experience/understand international locations


India Innovation Growth Program

Ray JohnsonSr. VP & CTO, Lockheed Martin“The success of this program is directly attributable to the strong partnership formed between industry, government and academia. It provides world-class teaching on innovation strategy with global business opportunities. This partnership has enabled new ideas to cross international borders.”

Dr. Abdul KalamFormer President of India“At a time when the world is struggling with economic recession, what we need is innovation. And knowledge is powered by technology and innovation.”

Corporate Social Responsibility Program for Lockheed Martin in India

2006 - Present


Korea - Gyeonggi Province Program

• Action – Learning program for talented scientists & engineers to successfully commercialize new technologies into global marketplace

• Enhance and promote Korean entrepreneurship

• Identify promising technology start-up companies

• Match innovation to complimentary US companies

Global Competitiveness Program Gyeonggi Province Government2008 - Present

Governor Kim & UT Vice Chancellor McDowell


Innovation Program

• Identify, assess and commercialize high-caliber research and development projects in 11 universities.

• Elevate importance of entrepreneurial endeavors to long-term growth of the Chilean economy and train entrepreneurs.

• Match Chilean enterprises with technology and global issues outside Chile.

Collaboration between: Chilean Economic Development

Agency (CORFO) Innovation Committee (INNOVA) Lockheed Martin Aerospace IC2 Institute

202009 - 2010Confidential property of



Questions?

[email protected]


new paradigms in business incubation

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