robotics: entrepreneurial opportunity? -...

3/6/2015

www.ventureprise.org 1

Catalyst for Entrepreneurial Innovation

Robotics:

Entrepreneurial Opportunity?

IEEE RoboResearch Seminar 6 Mar 2015

Paul Wetenhall

Ventureprise, Inc.

Innovate + Interact + Ignite 2

• Twin Pillars: Innovators & Entrepreneurs

• Entrepreneurial Best Practices

• Venture Financing including Robotics

• Resources

• Your Questions

Topics

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Start-up Job Creation Decline

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

5,000,000

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Year

Jobs Created by Establishments less than one year old

Source: U.S. Bureau of Labor Statistics

Gap 1.5 mil

jobs


The Big Picture

Innovation vital to our economic strength

Disruptive innovation increases productivity and standard of living

Startup companies disrupt…

creative destruction

Startup companies drive U.S. job growth

3/6/2015



Economic Impact

• Each new high-tech job leads to five additional

jobs in local services (lawyers, nurses, plumbers)

• Innovation sector multiplier is 3X manufacturing

multiplier

Source: Enrico Moretti, The New Geography of Jobs

Innovation-driven Enterprises (IDE) • National and global markets

• Innovation as core competitive advantage: tech, process, business model

• Initial losses followed by rapid growth…or failure

• Often require external equity capital


Innovators & Entrepreneurs

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Innovate + Interact + Ignite

7

Innovation Defined

the act of introducing something new:

something newly introduced The American Heritage Dictionary

an innovation is a value-creation mechanism Lawrence Husick

change that creates a new dimension of

performance Peter Drucker

• Disruptive Characteristics – Cheaper

– Simpler

– Smaller

– More convenient

• Examples – Cell Phone & Skype vs. Land Line Phone

– Netflix vs. Blockbuster

– Apple products generally

– Nucor minimill vs. US Steel


Disruptive Innovation

Source: Clayton Christensen

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Opportunity Continuum

Idea Invention Innovation Opportunity

Technical Feasibility ?

Customer Acceptance ? ?

Business Model ? ? ?


Who Is The Entrepreneur?

Source: Timmons and Spinelli

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Creative Destruction


Customer Discovery…

Charlotte Venture Launch

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Lessons

• Business models more important than inventions – Edison electric light patent rejection

– Edison enabled electricity to be sold like gas, a utility

• Connecting, not inventing – Autos available two decades before Ford Model T

– Mass production; Ford “I invented nothing new. I simply assembled into a car the discoveries of other men…”

• Innovation in action – Watt’s steam engine invention in 1762; but steam engines had

been used in coal mines for 70+ years

– Impact when entrepreneurs worked with the technology

Source: Andrew Hargadon, Kauffman Foundation


Financing

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Equity Sources

1. Founders, Family & Friends

2. Angels

3. Venture Capitalists

4. Strategic Partners

5. Public Equity Market

Don’t forget…

• SBIR, STTR, ATP, other government

• NC IDEA, Charlotte Venture Challenge, etc.

Stages of Company Development

< $1M $2 - $3M $3M - $10M $10 - $20M--

Typical Pre-

Money

Valuations

< $1M $2 - $3M $3M - $10M $10 - $20M--

Typical Pre-

Money

Valuations

Develop idea

into working

prototype

Develop beta

products; trial

customers

Launch product

sales to paying

customers

Expansion

through $XXM

revenue targets

IdeaMilestonesDevelop idea

into working

prototype

Develop beta

products; trial

customers

Launch product

sales to paying

customers

Expansion

through $XXM

revenue targets

IdeaMilestones

Pre-Seed SeedEarly

Stage

Later

StageConceptCompany

StageA-Round, B-Round, C-Round

Pre-Seed SeedEarly

Stage

Later

StageConceptCompany

Stage

Pre-Seed SeedEarly

Stage

Later

StageConceptCompany

StageA-Round, B-Round, C-Round

<$100K $250K - $1M $1M - $5M > $5M--

Typical

Funding

Amounts

<$100K $250K - $1M $1M - $5M > $5M--

Typical

Funding

Amounts

Venture Capital & Strategic Investor Founders, Friends, Grants

Angel Capital & Quasi Public

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Venture Capital: Seed & Early


Robotics Venture Capital

$millions 2011 2012 2013 2014

Deals 14 24 19 27

Investment $ $160 $220 $250 $341

$ Per Deal $12 $9 $13 $13

• First VC fund dedicated to robotics, Grishin Robotics, appeared in 2012 • Medrobotics raised $113M with four annual rounds • Largest 2014 deal Anki Drive at $55M ($100M+ to-date) • 2014: 6 drone deals; 4 medical robot deals • High valuation exits: Mako Surgical $1.6B, Kiva $775M, MakerBot $600M • But, modest market caps limit sector appeal: iRobot $1B

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Thinking of a Startup?


Ventureprise

• Hybrid University & Charlotte Community – University home and funding

– Community governance and engagement

• Serve multiple communities – Academic researchers and students

– Innovation-driven entrepreneurs

– Regional innovation ecosystem

• PORTAL building: where student, faculty, entrepreneur,

and corporate talent collaborate – Charlotte Research Institute: corporate

– Ventureprise: entrepreneurs

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21

UNC Charlotte

Commercialization

Innovate + Interact + Ignite

Commercialization Awareness [Tech Transfer, Ventureprise]

Invention Disclosure and IP Protection [Tech Transfer]

Customer Discovery & Business Model [Ventureprise]

Business Start-up and Growth [Ventureprise, SBTDC]


Robotics:

Entrepreneurial Opportunity?

• Investors don’t usually fund research

• Thus… – Research via grants

– Capital efficient business models

– Niche focus

– Strategic partners

• What do you think?

3/6/2015



A Final Word!

Make Something People Want

Paul Graham

Veteran entrepreneur and founder of Y Combinator


Questions?

Topic Contact

49er Foundry & Charlotte Venture Challenge

Devin Collins [email protected]

Ventureprise Paul Wetenhall [email protected]

Ventureprise, Inc. 704 697-0900

www.ventureprise.org

robotics: entrepreneurial opportunity? -...

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