Innovation WorksResearch Commercialization Program

A nationally recognized venture development organizationfocused on growing Southwestern PA’s entrepreneurial economythrough direct investment, business expertise and hands-on support

Innovation Works

Making an impact

• Nationally recognized best practice with awards from:– U.S. Economic Development Administration – 2008– SSTI– 2008, 2009, 2014– International Economic Development Administration – 2008, 2009,

2011, 2012, 2013, 2014– Federal Lab Consortium – 2011– National Governor’s Association – 2012 – PA Economic Development Association – 2011

• 7th most active early-stage investor in U.S. in 2013• $62M invested in more than 400 companies since 1999• Companies raised more than $1.6B in follow-on funding• IW companies:

– Employ more than 18,000 people– Generate more than $3.3B in annual revenues

Southwestern PA Assets• Great research assets

− $1 Billion in university research− National Energy Technology Laboratory

• Large anchor companies• Growing entrepreneurial community

− Majority are first-time entrepreneurs− Small investment community

• Dynamic public/private partnerships• Small venture capital community• Strengths in software/IT, life sciences, energy,

advanced materials, robotics and advanced manufacturing

Pittsburgh’s entrepreneurial ecosystem

IW fills critical gaps in the region’s entrepreneurial ecosystem through programs and partnerships

• SW PA universities and research institutions attract over $1B in federal research dollars annually

• CMU & Univ. of Pittsburgh – 17,500 research grants and nearly 1,000 registered patents in the last 10 years

• Despite high volume of IP creation, tech transfer offices at universities and research institutions lack the resources required to fully support commercialization efforts

• Systemic factors are primaryimpediment: federal researchdollars fund research, butcan’t be used to supportcommercialization

The opportunity for tech commercialization in southwestern Pennsylvania

“IW is a vital link in the entrepreneurial community here. They play a key role in

helping researchers to determine whether their innovation warrants moving forward and their vetting process creates a stamp

of approval for future investors.”

Marc Malandro, PhD.Associate Vice Chancellor for

Technology Management & Commercialization,

and Director of University of Pittsburgh’s Office of

Technology Management

Sole Power

A multi-faceted and targeted research commercialization program

Two Major Components

• Provide critical gap funding and strategic business support to help determine the commercial potential of university innovations

• Apply innovative business growth strategies to rapidly transform very early-stage startups into revenue-positive companies

A collaborative approach to funding and strategic business support

• Utilizes a consortium of technology transfer experts from Carnegie Mellon University, Duquesne University, University of Pittsburgh, and Private Sector

• Direct grants from $25,000 to $50,000• Mentorship from Executives-in-Residence• Leverage over 100 private sector domain experts• Market assessment, viability, strategic development,

talent recruitment and other services• Helps achieve localized economic development mission

Cohera Medical

Innovative business growth strategies torapidly accelerate the growth of high-potentialstartups

Agile Methodologies Focused on BothCustomer and Product Development

Agile Innovation System• Developed in partnership with Carnegie

Mellon and made possible through an i6Challenge grant through the US EDA

• Used to transform university-derivedinnovations into high-growth companies

• Focuses on early customer interactionand rapid product iteration

• Teaches that customer development is as important as product development

• Provides small grants that enables entrepreneurs to meet with potential customers

• Qualifying companies graduate to a curriculum-based accelerator program

Scalability, Replicability & Sustainability

• Scalable across industries– Energy, robotics, life sciences, IT,

advanced manufacturing, etc.

• Replicable across institutions– From universities to federal labs to

private sector startups

• Sustainability through investment– Creates high quality private sector

deal flow– Returns on investment fund future

program activities– Consulting agreement with institutions

Expert Mentors & Advisors

• Awarded 93 translational research grants totaling over $1.4M• Provided mentorship and business support to 64 entrepreneurial teams

working to commercialize technologies• Hosted 16 agile innovation workshops• Formed 40 new companies• Created more than 150 jobs• Launched over 70 products• Attracted more than $110M

in follow-on funding• 12 Demo Days and University

Technology Previews attendedby more than 500 investors, entrepreneurs and media representatives per session

Benefits/Impacts

Contribution to entrepreneurial culture & economic wellbeing of the region

• Instill culture of entrepreneurship in higher education

• Partner with region’s universities and labs for programs

• Universities serve as feeder for other regional initiatives

• IW’s economic impact in region is impressive– $1.6B in follow-on funding– 18,000 people and $3.3B in annual revenues– 3.5:1 return on each tax dollar provided

Best Cities for Recent Graduates, Huffington PostTop 5 Fastest Growing Startup Hubs, RJ Metrics

11th Best Cities for Tech Startups, CIO

Thank you!