invention to venture rev 3 - 8-10-05 invention to venture

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Invention to Venture


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Agenda 8:00 Breakfast Charlton College of Business 8:30 Welcome/About NCIIA E Peacock, H Fasihuddin

Tech Entrepreneurship J Miller 9:45 Idea Validation R Gupta10:30 Break 10:45 IP Issues A Spagnole, W Loginov11:30 Marketing J Chopoorian12:15 Lunch South Coast Partnership 1:15 Building the Team D McCoy, R Anderson 2:00 Plan, Powerpoint, Pitch L Hower 2:45 Break 3:00 Finding Money M Ailes, Panel 4:30 Adjourn E Peacock, J Miller

Reception Hinckley, Allen, Snyder LLP

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What is Technology

Entrepreneurship?

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Some basics • Research: discovery and adding to

the knowledge base• Commercialization: moving

research/technology from lab to marketplace, profitably

• There are multiple paths to commercializing technology

• Technology entrepreneurship is one path

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Entrepreneurship- a process

• Identify and evaluate opportunity• Find or invent solution(s) to fulfill

opportunity• Acquire needed resources• Manage resources• Manage associated risks and rewards

Zenas Block and Ian C. MacMillan in Corporate Venturing

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Entrepreneurship is

”…the process of identifying, developing, and bringing a vision to life. The vision may be an innovative idea, an opportunity, or simply a better way to do something. The end result…is the creation of a new venture, formed under conditions of risk and considerable uncertainty.”From the Entrepreneurship Center at Miami University of Ohio

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An entrepreneur

“…is one who has a dream and builds an organization to achieve it."

Dr. Robert Richards, Chair, Youth Focused Technological Entrepreneurship at Memorial University of Newfoundland

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Technology Entrepreneur

• Must succeed at two fundamentally different tasks:

- Selling it at a profit- Ensuring that the technology actually works in the customer’s environment

• “Regular” entrepreneurship worries primarily about the first part

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Different Types

• A lifestyle business, which provides a livelihood for you and a few others, and the satisfaction of being your own boss

• A high-growth business, such as Intel, Microsoft, DEC, Amgen, AOL

High-Growth normally means external funding

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Four Examples - 1

Concept: Former professor enlists proven development team to seek government contracts for four "ideas"

Result: Two of four become commercial enterprises but both end insolvent

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Four Examples - 2

Concept: Patent provides exclusive rights to large market. Investors add to management team to compensate for founders lack of experience

Result: Successful in developing strategic alliances, but enterprise fails to achieve goals and is acquired

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Four Examples - 3

Concept: Founder targets national and international markets with new merchandizing techniques

Result: Acquired

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Four Examples - 4

Concept: Proven team with competitive technology launches alternative energy business. Every employee given equity in enterprise.

Result: Investors achieve over 100% return in 24 months

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Four Examples - 1

Professor with 4 ideas2 of 4 ideas commercially attractiveBoth both ended insolvent

BUT…..For sat comm, developed CDMABasis for cell phonesIrwin Jacobs, QUALCOMM - $2 B rev

Opportunity Assessment –Not Always Plan

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Four Examples - 2

Patent for exclusive marketManagement strengthened by investorsStrategic alliances, fails and acquired

BUT…..Plymouth Plantation returns misusedAcquired by Mass Bay ColonyLong term market proved profitable

Patents – What do rights mean?

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Four Examples - 3

National merchandizing, acquisition

BUT…..Earl Charlton successfulEnds up running WoolworthBuilds the Walmart of its day

Marketing – Right product at right time

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Four Examples - 4Alternative energy company demonstrates

that committed team works.BUT…..

Market shrinks Technology increases productivityWhaling proves unsustainable

Building the Team – Necessary but not sufficient: technology and market

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Technology

Early adopters may buy technology, but customers buy solutions.

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Risk

Risk = Probability x Consequence

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Is Technology EntrepreneurshipFor You?

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Entrepreneur’s Role

Startup survivalEmerginggrowth

Maturity Decline or renewal

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Success Characteristics

• Participatory management style• High need for achievement and

moderate need for power• Supervisory experience

Age and family background do not influence chance of success, but they do influence one’s inclination to start a venture.Source - “Entrepreneurship in High Technology” by Edward B.Roberts, Professor of the Management of Technology at MIT and entrepreneur

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Potential Benefits

• Sense of accomplishment• Built a meaningful entity• Solved an important problem • Did something no one else had done

• Being your own boss (maybe)• Doing what interests you• Eventually becoming rich (maybe)

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Potential Challenges

• Uncertainty, stress• Very long hours, few vacations• Potential harm to family, personal life,

or career• Financial or lifestyle sacrifices• Giving up the business to see it

succeed

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•Introduction – –Regional Perspective … SoCo past; present & future

•Can entrepreneurship “creativity & risk taking” be taught?

–Don’t know … but a culture can be created and nurtured

•Trends Discussion–Some quotes .. Their importance .. What’s next?

•Recommendations

to stimulate entrepreneurship

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Missed Opportunity(1985 - present)

Textile

(1846 - 1958)

Manufacturing

(1928 - 1982)

Past .. Present …oops … Future

SoCo Evolutionary Perspective

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Fortune Small Business

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“How many artists are there in the room? Would you please raise your hands?

FIRST GRADE: En mass the children leapt from their seats, arms waving. Every child was an artist. SECOND GRADE: About half the kids raised their hands, shoulder high, no higher. The hands were still. THIRD GRADE: At best, 10 kids out of 30 would raise a hand, tentatively, self-consciously. By the time I reached SIXTH GRADE, no more than one or two kids raised their hands, and then ever so slightly, betraying a fear of being identified by the group as a ‘closet artist.’ The point is: Every school I visited was was participating in the suppression of creative genius.”

Gordon MacKenzie, Orbiting the Giant Hairball: A Corporate Fool’s Guide to Surviving

""The stifling of Creativity”

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“There’s a whole new class of workers in the U.S. that’s 38-million strong: the creative class. At its core are the scientists, engineers,

architects, designers, educators, artists, musicians and entertainers whose economic function is to create new ideas, new technology, or new content. Also included are the creative professions of business and finance, law, healthcare and related fields, in which knowledge workers engage in complex problem solving that involves a great

deal of independent judgment. Today the creative sector of the U.S. economy, broadly defined, employs more than 30% of the workforce (more than all of manufacturing) and accounts for more than half of

all wage and salary income (some $2 trillion)—almost as much as the manufacturing and service sectors together.

"Dawn of the Creative Age”

Indeed, the United States has now entered what I call the Creative Age.” —“America’s Looming Creativity Crisis”/ Richard Florida/ HBR/10.04

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Trends or Waves of Growth

•Why are trends important ?– Trends are bottom – up; fads are top down.

– Trends are like horses .. “easier to ride in the direction they are going”

trend : The general direction in which something tends to move. A general tendency or inclination. To extend or veer in a specified

direction. The prevailing wind trends east-northeast.

•Megatrends Review originally published in 1982 by John Naisbitt “10 new directions transforming our lives”

How did he do?

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MEGATRENDS © (1982-present)

Headlines & Scorecard1. Industrial Society to Information Society2. Forced Technology to High Tech / High Touch

3. National Economy to World Economy4. Short term to Long Term5. Centralization to Decentralization6. Institutional help to Self-Help

7. Representative Democracy to Participatory Democracy8. Hierarchies to Networking9. Exodus from North to South & West

10. Either or to Multiple Option

- Megatrends © 1982 by John Naisbitt

- This is a book of synthesis in an age of analysis -

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Top tech trends circa February 2003

1. Wireless Sensor Networks

2. Injectable Tissue Engineering

3. Nano Solar Cells

4. Mechatronics

5. Grid Computing

6. Molecular Imaging

7. Nanoimprint Lithography

8. Software Assurance

9. Glycomics

10. Quantum Cryptography

1. Smart Dust

2. Convergence

3. RFID

4. Open Source Software

5. E-bay phenomenon

6. Wi-Fi

7. HDTV

8. Subscription burnout

9. VoIP

10. On-line advertising


• Universal software

• Synthetic Biology

• Nanowires

• Bayesian Machine Learning

• T- Rays

• Distributed Storage

• RNAi Therapy

• Power Grid Control

• Microfluidics

• Personal Genomics


A compilation from MIT Technology Review; Fortune Magazine; CNN

TRENDS (21st Century)

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1. Design 2. Story - Crafting a narrative; argument isn’t enough, logic isn’t enough

3. Symphony - Crossing boundaries, synthesis, metaphor

4. Empathy - See through someone elses eyes; walk in their mocassins

5. Play – Information age was intensely sober; invention comes from play

6. Meaning – Transcedence, beauty and meaning is being seeked evening in these tumultuos times. Baby boomers have more of their lives behind them than ahead of them.

Introduction of the 6 new senses

A Whole New Mind by Daniel Pink

High Concept: The capacity to detect patterns and opportunities, to create artisticand emotional beauty, to craft a satisfying narrative, and to combine seemingly unrelated ideas into something new.

High Touch: The ability to empathize with others.

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Conclusions

The past … A period of entitlement

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The future - A re-birth of innovation & risk taking

Conclusions

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• Identify long term trends and organize around them. Let market & societal trends drive the competencies you put in place.– “When the tide comes in; all the boats in the harbor rise” Bobby G.

Bodenhamer

• A culture of entrepreneurship “risk taking & creativity” has to be promoted from the grade school level onward …

• FREE SUBSCRIPTIONS : REQUIRED READING as Freshman - Senior

– Business 2.0

– Entrepreneurship

– Fast Company

• The area must move from the an era of dependence / entitlement to the “self reliant & independent” era of innovation

• Interdisciplinary TEAMWORK !!!

Recommendations

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Missed Opportunity(1985 - present)

Textile

(1846 - 1958)

Manufacturing

(1928 - 1982)

Past .. Present …oops … Future

SoCo Evolutionary Perspective

What’s Next(2005 - ???)

invention to venture rev 3 - 8-10-05 invention to venture

Documents

path slide

new venture

snyder llp slide

corporate venturing

entrepreneurship center

miami university of

adjourne peacock

needed resources