Technology Technology Commercialization Class Commercialization Class
(BA468)(BA468)John TurnerJohn Turner
January 5, 2009January 5, 2009
““Far better it is to dare mighty things, Far better it is to dare mighty things, to win glorious triumphs, even though to win glorious triumphs, even though checkered by failure, than to rank checkered by failure, than to rank with those poor spirits who neither with those poor spirits who neither enjoy much nor suffer much. Because enjoy much nor suffer much. Because they live in the grey twilight that they live in the grey twilight that knows neither victory nor defeatknows neither victory nor defeat.”.”
But aren’t we in a recession?But aren’t we in a recession? ““Be fearful when others are greedy and greedy Be fearful when others are greedy and greedy
when others are fearfulwhen others are fearful””
““When the enemy attacks; retreat and when the When the enemy attacks; retreat and when the enemy retreats; attackenemy retreats; attack.” .”
Startups based on University IP: Startups based on University IP: Many Good Reasons to Focus on These Many Good Reasons to Focus on These
> 400 university startups created yearly> 400 university startups created yearly from federally funded R&D from federally funded R&D (Google, Netscape, Genentech, Lycos, Sun Microsystems, Silicon (Google, Netscape, Genentech, Lycos, Sun Microsystems, Silicon Graphics, and Cisco Systems)Graphics, and Cisco Systems)
OSU has “extremely high” research OSU has “extremely high” research activity (~$250M year in grants). activity (~$250M year in grants). Corvallis has abundant talent and new funding sourcesCorvallis has abundant talent and new funding sources
High survival ratesHigh survival rates: 68% of university startups are still in business in : 68% of university startups are still in business in 2001, regular startups experienced a 10% survival rate during that same 2001, regular startups experienced a 10% survival rate during that same time period time period
They are profitableThey are profitable: Early& SEED VCs returns 20.8%, Late stage VCs : Early& SEED VCs returns 20.8%, Late stage VCs returns 13.8%, S&P returns 8.2%returns 13.8%, S&P returns 8.2%
They “go public” more often: They “go public” more often: 8% for university startups vs 0.07% for 8% for university startups vs 0.07% for other US enterprisesother US enterprises
What are we doing?What are we doing?
A “hands-on” opportunity to develop a A “hands-on” opportunity to develop a commercialization plan for technology commercialization plan for technology from the OSU portfolio and other patentsfrom the OSU portfolio and other patents
A cross disciplinary project class in A cross disciplinary project class in technology commercialization tools and technology commercialization tools and processesprocesses
An “experiential” class An “experiential” class
COB
AEP
Tech Transfer Office
Inventors
Local Entrepreneurs, SWOT, PBR
NCIIA Boeing
HP
Patent Selection and Commercialization Plan ProcessPatent Selection and Commercialization Plan Process
TTO Provides list and input
Advisory Team Screening
Class Screening and Plan
development
Spin Off Based Plan
Licensing Based Plan
Other Plan Recommended
Technology not viable for
commercialization
BA468 Class
Candidate Intellectual Property for the ClassCandidate Intellectual Property for the Class
Biometrics
New Materials and Energy
Sources
Green Technologies
• Nanoparticles on Demand- (Miller-OSU/MBI)•Fuel Cell Technologies- (HP)
•Citrus based Insecticides- (Karchesy- OSU)• Novel Algae Strain- (Langdon- OSU)• Novel Soy based Adhesive- (Li, OSU)?
•Laxity measurement in Human Joints (Herling-OSU)• Detection of Human Visual Response (HP)
•Natural sources of cancer treatment agents: Coibamide A, Curacin A- (OSU)• Compactable self-sealing drug delivery agents (Ayres-OSU)
Medicine & Pharmacology
Other informationOther information
Student background and introsStudent background and intros Formation of teamsFormation of teams Selection of patentsSelection of patents Inventors and accessInventors and access Mentors- what are they for?Mentors- what are they for? Student contact informationStudent contact information Invited speakers and protocolsInvited speakers and protocols Non-disclosure agreementNon-disclosure agreement
Technology Commercialization Technology Commercialization (BA468)(BA468)
Instructor- John Turner, PhDInstructor- John Turner, PhD
Class ScheduleClass Schedule– MW (2-4 pm), 328 BexellMW (2-4 pm), 328 Bexell
Contact Info Contact Info – Office: 316 BexellOffice: 316 Bexell– Office Hours: Wed 11-12, Thu 1-2Office Hours: Wed 11-12, Thu 1-2– Phone: 737-9219Phone: 737-9219– E-mail: E-mail: [email protected]– Best way to reach me quickly is by emailBest way to reach me quickly is by email
2009 Class Schedule- Technology Commercialization BA468
1 2 3 4 5 6 7 8 9 10Mon Wed Mon Wed Wed Mon Wed Mon Wed Mon5-Jan 7-Jan 12-Jan 14-Jan 21-Jan 26-Jan 28-Jan 2-Feb 4-Feb 9-Feb
Class Intro (mentors)IP and Opportunity Assessment
* * Inventor PresentationsSelect Patents & Form Teams
Commercialization OptionsLB,MM CW, TBD Databases and Marketing Surveys
SWOT & Genl ApproachThe Pitch
HP TBD Corp Tech Commercialization
11 12 13 14 15 16 17 18 19Wed Mon Wed Mon Wed Mon Wed Mon Wed
11-Feb 16-Feb 18-Feb 23-Feb 25-Feb 1-Mar 3-Mar 8-Mar 10-Mar
Timeline and MilestonesFinances and VC Expectations
BN Investor PerspectivePrepare Commercialization Plans
PG Entrepreneur PerspectivePresent Commercialization Plans
(meet w JT) ^ ^In class Portland BRTReviews Reviews
BA468 Mentors for this Term
Brian Hartman Marketing manager at Tripod Data Systems
Rob Schneider Entrepreneur, expert in new product marketing
David Reihl Physics Faculty at LBCC, retired HP Project Manager-
Ray Dandeneau HP (retired manager and very smart guy)
Julie Wrazel PhD Chemist, CTO of Home Dialysis Plus (startup)
Bill Buckley New Business Development Expert- HP TDO
Michael LaPort Director of Marketing, Peak Systems
Recommended Texts ResourcesRecommended Texts Resources
““Technology Ventures: From Idea to Enterprise”, Technology Ventures: From Idea to Enterprise”, Dorf and ByersDorf and Byers
““Academic Entrepreneurship: University Spinoffs Academic Entrepreneurship: University Spinoffs and Wealth Creation”, Shaneand Wealth Creation”, Shane
““Technology Management: Developing and Technology Management: Developing and Implementing Effective Licensing Programs”, R.C. Implementing Effective Licensing Programs”, R.C. MegantzMegantz
““Crossing the Chasm”, Geoffrey MooreCrossing the Chasm”, Geoffrey Moore
GradingGrading BA468 is a 4 credit classBA468 is a 4 credit class
There is no final or midtermThere is no final or midterm
Grade will be determined byGrade will be determined bya) Attendance, class participation and team dynamics, and balance of a) Attendance, class participation and team dynamics, and balance of
contribution (30% total)contribution (30% total)b) Interim Results: patent screening, market surveys, SWOT analysis, b) Interim Results: patent screening, market surveys, SWOT analysis,
elevator speech, project plan (30% total) elevator speech, project plan (30% total) c) Final Presentation and Final Report (20% each)c) Final Presentation and Final Report (20% each)
Feedback will be provided on a) halfway through the course Feedback will be provided on a) halfway through the course and on b) within one week after presentation of resultsand on b) within one week after presentation of results
Interim AssignmentsInterim Assignments These 5 assignments are each 6%, for a total of 30% of the gradeThese 5 assignments are each 6%, for a total of 30% of the grade
– Patent assessments (due Sat, 1/17); Patent assessments (due Sat, 1/17); written onlywritten only– Market evaluation (due Mon, 1/26); Market evaluation (due Mon, 1/26); written + presentationwritten + presentation– SWOT analysis of commercialization options (due Wed 2/4); SWOT analysis of commercialization options (due Wed 2/4); written + written +
presentationpresentation– Elevator speech (present Mon 2/9); Elevator speech (present Mon 2/9); presentation onlypresentation only– Financial and project plan (due Wed 2/18); Financial and project plan (due Wed 2/18); written + presentationwritten + presentation
All except the first are team exercisesAll except the first are team exercises
Written assignments may be e-mailed (preferred) or sent Written assignments may be e-mailed (preferred) or sent electronically by the specified date/timeelectronically by the specified date/time
Commercialization Plan Commercialization Plan Presentations and CompetitionsPresentations and Competitions
1)1) In class final presentation- March 3In class final presentation- March 3rdrd
2)2) PBR Judging Panel- March 10PBR Judging Panel- March 10thth
3)3) New Enterprise Challenge- April 17New Enterprise Challenge- April 17thth
$$$$$$$$$$$$!!!!!!!!
BEC
The 7 Elements of an Idea Resume
The Solution• Offering • Function• Advantage
The Need• Unmet Problem• Customer• Value & Scope
Business Win• What’s Unique• Business Leverage
Issues & Next Steps• Assumptions/Objections• What to Learn First
InvestigationResources &Expectations
Benefits toOrganization &
Sponsor
Momentum &Credibility
Answer a VC’s FundamentalsWho is the customer?What do they want?How much will they pay?Why will they buy from you?How much money do you need?When do I get it back?
A Clear, Concise, Concrete, Statement of the Idea is the Critical Starting Point
Small Group Activity Small Group Activity
• What factors will determine the What factors will determine the success of a technical idea in the success of a technical idea in the marketplace? marketplace?
• Think of at least ten- more is betterThink of at least ten- more is better
• Identify your top fourIdentify your top four
Parting QuestionParting Question““How much is an idea worth?”How much is an idea worth?”
Typical valuation methods:Typical valuation methods:-Market based valuation?-Market based valuation?-Cost based valuation?-Cost based valuation?-Opportunity based valuation?-Opportunity based valuation?
Challenge: An invention has the following characteristics Challenge: An invention has the following characteristics - 25% chance of success= P- 25% chance of success= P- Takes 5 years and $5M to bring to market= E- Takes 5 years and $5M to bring to market= E- Offers exclusive access to a market of $100M for 5 years=R- Offers exclusive access to a market of $100M for 5 years=R
Estimate the value of this inventionEstimate the value of this invention