A definition.. “My son is now an ‘entrepreneur’. That’s what you are called if you don’t have a job.” Ted Turner
Another definition… “An entrepreneur jumps off a cliff and assembles the airplane on the way down…” Reid Hoffman, founder of LinkedIn.com
Entrepreneurship Serve a relatively large external constituency, whose measured reaction to alternative proposals is central to determining its success or failure. Propose a product or service, broadly defined, that the external constituency would appreciate, based on an in-depth understanding of the culture, values and needs of the constituency. Include the design and implementation of the product or service, recognizing all of the physical, economic, and social constraints that would impede adoption, or at minimum a plan for doing so that has resolved all questions of feasibility and cost. Be evaluated by the external constituency itself, not just the team or other inside parties (e.g. an instructor).
A Great Engineers know more than Engineering Creativity & Innovation: The ability to identify and characterize problems in the face of uncertainty and imperfect information, and to create new solutions. Entrepreneurial Mindset: The desire and capability to make a difference by championing and managing needed change, including effective goal-setting, persistence and an ability to manage risk. Intercultural Skills: The ability to interact effectively across cultures and around the globe. Collaborative Spirit: A propensity for working in teams, including an understanding of the opportunities provided by diversity, and strong interpersonal skills. Social & Environmental Responsibility: An understanding of human, social and environmental impacts, and the ethical tools to make sustainable and responsible decisions. Effective Communication: The ability to communicate professionally in any setting.
First Michigan Story In 1980ties: Weather class is adding a telnet component “UM-Weather” NSF supported to create first interactive graphics (Blue Skies) using NSFNet Involved a number of motivated students, some of which had the idea to take this idea forward.
July 2, 2012 Privately held, mostly by founders Acquired by weather.com Mostly because of it’s data and technology capabilities
Second Michigan Story Brandon McNaughton – Applied Physics PhD, 2007 – Founder and CTO of Life Magnetics – Raised $1M of seed-funds
“The Start Up” The Life Magnetics Story August 2009: Founded Life Magnetics, Inc. April 2010: Project Funded by Coulter Foundation. July 2010: Technology Optioned from U-M. July 2010: Closed Series A Financing Round with Arboretum Ventures. September 2010: Secured CEO – Bill Wood (Mentor in Residence Program).
The Real Story: It Took A Lot of People, Resources, and Time 2002 BS in Physics and near BA in Organizational Management. 2002 Started PhD in the Applied Physics Program (at U-M). 2003 First interaction with Tech Transfer. 2006 Introduced to Duane Newton. 2006-7 Published on idea and PhD, Raoul Kopelman. 2007 Patent Application. 2007 Post Doc Support from Roy Clarke, Physics. 2007 SPARK Entrepreneur Boot Camp (Tech Transfer). 2007 First introduced to investors (Tech Transfer). 2008 Funded by MUCI (with Roy Clarke & Andy McColm). 2008 Funded by Coulter (with Alan Hunt & Jim O’Connell). 2008 Fellowship from MICHR (PTSP). 2008 Finance 629 (David Brophy). 2008 1000 Pitches Finalists (CFE - with a grad student). 2008 Finalist Collegiate Inventors Competition (Inventors Hall of Fame). 2009 Bay Area Trip – Pitch Competition Winner (CFE). 2009 Funded by NIH (with Raoul Kopelman). 2009 Funded by Coulter. 2009 Research Scientist in BME, Alan Hunt. 2009 MBA student’s help (Marcel Gani/ZLI, CFE, and MUCI) 2009 MichBio Best Company Presentation (Tech Transfer). Other competitions, events, meetings, sleepless nights, etc. Many more…
Entrepreneurship Experience - Crossing the Invisible Bridge
Entrepreneurial Ecosystem Characteristics of an Entrepreneurial Ecosystem – Great access to People (Mentors, etc.) – Early-stage Funding Opportunities Encourage entrepreneurs to pursue ideas Keep entrepreneurs pursuing their idea – Environments (physical space/incubators/people)
We need to change how we educate the future leaders of the world The Problem because the speed of change and innovation has become so rapid… the Michigan economy is in need of reinvention… the US economy is in need of reinvigoration… the US is losing ground in innovation and manufacturing…
We live in a time of change that requires leaders who embrace change, and adapt faster than their competitors Entrepreneurs excel in this environment of risk taking and seizing of opportunities Entrepreneurship is a mindset that can and must be taught to enable future leaders Impact driven entrepreneurs are those who make a positive impact on society, the economy or the environment Impact Driven Entrepreneurship is the Solution
Attract top students and faculty by enabling their passion for impact driven entrepreneurship Infuse entrepreneurship throughout the university, one of the Nation’s largest research universities Educate using new approaches, integrating students through an entrepreneurial culture Activate our extended network of alumni to fuel an exponential growth in impact The CFE Approach Approach
Three Pillars Teaching BuildingConnecting Building Skills through Experiential Learning Creating startup companies Building an Entrepreneurial Ecosystem
UM Challenge: Scaling up Number of people Impact of output Engagement Experiential Learning Entrepreneurs Technologies Companies Solution: Put programs in place to move people and their ideas upwards
Experiential Learning $160,000 / yr$150,000 / yr$330,000 / yr Entrepreneurship Exploration Distinguished Innovator Speaker Series Entrepreneurship Research Experiential Learning Program in Entrepreneurship Social Venture Creation i-Corps, practica Graduate Program in Entrepreneurship Program Graduate Program in High Tech Entrepreneurship 2,500 Enrollments in our entrepreneurial courses over the last 5 semesters 100 Students have declared their participation in our program in entrepreneurship
Business Strategy Value Chain Entrepreneurial Marketing Entrepreneurial Finance Practicum 1 Identifying Opportunities & Innovations Intellectual Property Design Process Tech Business Models Entrepreneurial Leadership Ethics in Design and Entrepreneurship Technology Elective Pro Formas and Financial Modeling Business Elective Growing the Entrepreneurial Enterprise Practicum 2 Launch/Internsh ip Business Bootcamp Technology Bootcamp August Fall WinterSummer Joint Masters in Entrepreneurship best-in-class graduate program; enhanced opportunities for all Partnership with Ross School of Business
Starts with an idea… 1000 Pitches Nurtures that idea… Dare to Dream Mentorship Entrepreneurial Learning Center (e-dorm) Grows into a business… Business Accelerator (TechArb) Creating New Ventures 3,000 Students have submitted video business idea pitches last year 400+ Students (150 teams) have submitted business proposals to D2D last year 20 Student companies exited TechArb this spring, 25 new companies in there now
UM Yearly Entrepreneurial Impact of Research: Some Numbers Research funding: $1.2B Number of Invention Reports: 300 Number of Agreements and Transfers: 100 Number of Startups based on University Research: 10 Licensing revenue: $40M How can we be a lot better?
The Innovation Gap Investment Technology Push Market Pull GAP Entrepreneurial Translation 1. Innovation Pool Deep Enough? 2. Lack of Knowledge about Market Needs 3. Lack of Alignment of University Value System 4. Lack of Training about Entrepreneurial Processes and Forces
Principles Funded research must be new and between at least two units Immediate funding (no formal review) Three tokens per cube Funds used to support UGs, Grads, Postdocs Campus-wide innovation conferences showcase results and lessons learned
The Innovation Gap Investment Technology Push Market Pull GAP Entrepreneurial Translation Partnership Financial and Personnel Support (Mentors) Needs and Ideas Federally funded Research, IP Talent, Facilities Translation Talent Educational Opport. Ideas
Support collaborative research that addresses unmet clinical needs and leads to improvements in health care and to commercial products. Examples of desirable outcomes include inventions, patents, improved diagnosis and treatment of disease, commercial partnerships, start-up companies and follow-on funding targeted toward these same outcomes. Always includes one clinical researcher and one bio-medical researcher.
U of Michigan distributes a minimum of $1,000,000 annually The program is managed by an Oversight Committee of industry professionals and faculty During the last 7 years we’ve funded 26 Projects investing over $4.5 Million All Projects are annually funded and quarterly reviewed by the Oversight Committee
– There have been 4 University Startup companies formed. Histosonics; $11 million in venture funding. Tissue Regeneration Services; $2.5 million in venture funding Incept Biosystems; purchased by Origio in 2010 Life Magnetics; $2.2 million in venture funding – One Technology License to a University startup company 3-D Biomatrix – Three startup companies that are currently in the formation stages; STEL Technologies; focusing upon veterinary and human ACL replacement Rhythm Solutions; Atrial Fibrillation Detection Yet to be named New Co; multiplex array technology for research and clinical diagnostics
Goals and Approach Foster Entrepreneurship that will lead to commercialization of technology previously supported by government – Uses customer and business model development – Focus on startups as translation mechanism – Creates teams of 3: Principal investigator, entrepreneurial lead (Recent PhD graduate), and mentor – Full engagement requiring 5-10 customer contacts per week for duration of 6 weeks University of Michigan is one of three US training sites
Pasteur’s Quadrant (*) Incremental, safe research (Too Many)