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Intro to the Innovation Corps(I-Corps)

Frank RimalovskiExecutive Director, NYU Entrepreneurial InstituteInstructor, NSF Innovation Corps (I-Corps)April 29, 2016

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Agendau Backgroundu Program benefits and outcomesu Program details

o Curriculumo Eligibilityo Application process

u Scaling I-Corps: NIH, DOE, DOD, etc.u How we can helpu Q&A

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Path to commercialization…u …increasingly requires startup to advance tech, develop

customer/partner relationships & build team before M&A

Startup Acquired By

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75% of startups fail to return investors capitalShikhar GhoshHarvard Business School

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Commercialization Myth

Basic & Applied

Research

Scientific Discovery/Invention/IP Creation

Venture Formation & Growth

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The “valley of death”

Commercialization Reality

Basic & Applied

Research

Scientific Discovery/Invention/ IP Creation

Venture Formation & Growth

@NYUEntrepreneurThe “valley of death”

Basic & Applied

Research

Scientific Discovery/Invention/ IP Creation

Customer Discovery & Prototype

Dev

Business Model &

Team Formation

Venture Formation & Growth

• Customer/market discovery• Engineering/prototypes•Mentors & advisors• Collaborative spaces• Business leadership• Legal counsel• Capital

Commercialization Reality

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Humans Start Startupsu Graduate students & postdocs play critical role in

commercializing technology from the lab

u Tech transfer via humans, not legal docs

u Tech startups require a technical founder

u Relationships with faculty are critical

u Research-based startups at greater risk unless deliberately explore market opportunities early

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(At least) Three Parts toBuilding a Successful Startups1. Advancing the product/technology

2. Beginning to build a team

3. Finding a repeatable business model

u Most focus on #1 and/or #2

u Successful efforts require all three

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OverviewCreation of NSF I-Corps Program u Maximize impact of NSF investments

o Accelerate transition of tech out of lab

o Train scientists, engineers & researchers in startup best practices

§ Get customer feedback before building & launching product/business

§ Develop an evidence-based commercialization strategy & plan

u $50,000 grants

u 7-week immersive bootcamp

u Facilitates team formation

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NSF I-Corps Teams

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Principal Investigator

(PI)

Entrepreneurial Lead (EL)

Industry Mentor

(IM)

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I-Corps Nodes & Sites

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Curriculum: Lean Launchpadu Customer/business-model

discovery & development to address market risk

u Leverages scientific method to search for repeatable & scalable business model

u Learn to secure substantial customer feedback before finishing & launching your product

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Curriculum: Flipped Classroom

u Online lectures via Udacity

u “Classroom” time spent reviewing progress

u Interview >100 customers/ partners (~15 week)

u Teaching team office hours

u Track progress in Launchpad Central

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Example I-Corps ScheduleI-Corps Cohorts are currently run 3-4x per quarter

Week 1: Intro Bootcamp(in-person)

Mon Sept 29 – all day

Tues Sept 30 – all day

Wed Oct 1 – half dayWeeks 2-6:Webex Classes(online)

Thurs Oct 9 – 12:30 – 3:30pm

Thurs Oct 16 – 12:30 – 3:30pm

Thurs Oct 23 – 12:30 – 3:30pm

Thurs Oct 30 – 12:30 – 3:30pm

Thurs Nov 6 – 12:30 – 3:30pmWeek 7:Final Presentations(in-person)

Mon Nov 10 – all day

Tues Nov 11 – all day

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Benefits of I-CorpsFor your startupu Concentrated time to focus on team &

commercialization—a year’s worth of work in 7 weeks

u Funding for customer discovery & prototype development

u Exposure to/input from startup experts, investors & mentors

u Answer critical business questions…

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Answer Critical Biz Questionsu Who are your initial target customers?

u What do they value/why will they buy?

u How do we get/keep/grow customers?

u What is your channel strategy/how will we sell?

u What is your revenue model/how make money?

u What key partnerships do you need to start?

u What are the key skills you need on your team?

u What is your cost structure?

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Evidence-based Entrepreneurship(aka the Lean Startup)

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Not about picking winners!

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About creating more winners!

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Improve Fundraising Odds

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With I-Corps:

14% 2-3xhigher

Without I-Corps:

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Get to Market More Quicklyu Time to “Go/No go”: Average time from

discovery -> validation -> execution

u 68 weeks vs 22 weeks!

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Einstein discovers that time is actually money

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Benefits for you & your team!u Improved ability to identify commercial

potential of future research

u Increased probability of future grant success

u Faculty more attractive to potential students

u Increased visibility with NSF

u More consulting opportunities

u New career opportunities for grad students/postdocs (startup, industry, or gov)

u Potential for monetary gain

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Expected Outcomeso New startup business

o Licensing opportunities

o A business case suitable for venture capital (Angels or VC funds)

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>900 Teams Trained!

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NSF I-Corps Eligibilityu NSF award within last 5 years (for NSF program);

or participate in a regional program

u Team in place at time of applicationo Principal Investigator (PI)

o Entrepreneurial Lead: typically PhD student or Postdoc

o Industry Mentor

u Commitment to attend all sessions over 7 weekso 3-day kick-off

o 3 hours per week for webex ‘classes’o 15+ hours per week of customer discovery/preparation

o 2-day final presentation session

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Application Process

Form TeamPrepare

Exec Summary

Contact Program Directors

TeamInterview(s)

Submit Proposal

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Application Process

Form TeamPrepare

Exec Summary

Contact Program Directors

TeamInterview(s)

Submit Proposal

Principal Investigator

(PI)

Entrepreneurial Lead (EL)

Industry Mentor

(IM)

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Application Process

Form TeamPrepare

Exec Summary

Contact Program Directors

TeamInterview(s)

Submit Proposal

u One page

u Composition of team proposing to undertake commercialization feasibility research

u Relevant awards (NSF or other funding source)

u Brief description of potential commercial impact

u Brief description of current commercialization plan

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Application Process

Form TeamPrepare

Exec Summary

Contact Program Directors

TeamInterview(s)

Submit Proposal

u For NSF Program:Topic-Specific Program Directors Steve Ellis – BIOAnita La Salle – CISEDon Millard – EHRTBD – ENGRaffaella Montelli – GEOSean Liam Jones – MPSIrene Qualters – OCIQuinetta Roberson– SBE

I-Corps Program OfficersLydia McClureAnita La Salle

u For Regional Program:Frank RimalovskiLindsey GrayRisa Cohn

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Application Process

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Form TeamPrepare

Exec Summary

Contact Program Directors

TeamInterview(s)

Submit Proposal

u Conference call with your entire team & program directorso NSF program will require at least 2 interviews

u Interviews focus on availability and commitment to program and openness to customer feedback

u Not asked to provide details about your tech

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Application Process

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Form TeamPrepare

Exec Summary

Contact Program Directors

TeamInterview(s)

Submit Proposal

FOR NSF PROGRAM ONLY:u Read solicitation 12-602

Written authorization from Program Director required to submit proposal—sent after phone interviews

u 5-page proposalo Team (2 pages)o NSF Lineage (1 Page)o Potential Commercial Impact (1 page)o Project Plan/Demo (1 page)

u Rolling process, quarterly batches, FCFSu 4-week turnaround to award

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We are here to helpu Additional detail about program & what to expect

u Discuss what kind of projects are best suited

u Introductions to mentors who may join your team

u Facilitate intro to NSF I-Corps Program Directors

u Review executive summary before you submit

u Help anticipate what to expect from interviews

u Connect with others who’ve participated in I-Corps

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Scaling I-Corps

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“We’re scaling up the National Science Foundation’s successful Innovation Corps program at six more federal

agencies so we can help more of our scientists move their ideas out of the lab and into the marketplace.”

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Scaling I-Corps

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Scaling I-Corps

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3 Differencesu Apply after SBIR/STTR Phase I award

u Team composition:o Principal Investigator

o CXO

o Industry mentor/expert

u Minor curriculum/structural modifications

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Bigger Than Revenue Modelu Testing hypotheses makes substantive changes to

biz model before you complete science/designo Define clinical utilityo Who core & tertiary users/buyers/payers areo Data required for future partnerships/collaborationso Initial revenues and downstream commercializationo Intellectual property riskso Regulatory pathwayso Reimbursement strategieso Aspects of the product that are (& are not) valuable

u Affects your core biological & clinical hypotheses

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Participating NIH Agenciesu 14 Institutes/Centers across NIH and CDC are participating.

o National Cancer Institute (NCI)o National Heart, Lung, and Blood Institute (NHLBI)o National Institute on Aging (NIA)o National Institute on Alcohol Abuse and Alcoholism (NIAAA)o National Institute of Allergy and Infectious Diseases (NIAID)o National Institute of Dental and Craniofacial Research (NIDCR)o National Institute on Drug Abuse (NIDA)o National Institute of Environmental Health Sciences (NIEHS)o National Institute of General Medical Sciences (NIGMS)o National Institute of Mental Health (NIMH)o National Institute of Neurological Disorders and Stroke (NINDS)o National Center for Advancing Translational Sciences (NCATS)o CDC/National Center for Injury Prevention and Control (NCIPC)o CDC/National Institute for Occupational Safety and Health (NIOSH)

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More InformationNSF I-Corps:

o nsf.gov/i-corps

NYCRIN I-Corpso nycrin.org

NIH I-Corpso http://sbir.cancer.gov/resource/icorps/

DOE I-Corps (Lab Corps)o http://energy.gov/eere/lab-impact/downloads/lab-

corps-documents

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Questions?

entrepreneur@nyu.edu@nyuentrepreneurentrepreneur.nyu.edu16 Washington Place

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