1. Agenda Class schedule update & Presentation Forums (5’)
Commercialization Checklist (20’)
Team prep and updates: Commercialization Plan & Customer Value Proposition (30’)
Preparation and arrangements for Bill Newman Visit (5’)
Revenue and Cost Projection- Example (30’)
Team work time- Questions for Bill Newman, revenue and cost projections (30’)

2. Schedule Update
Only 7 more class meetings till presentations and competition!!
Teams meet with Bill Newman (NW Tech Ventures) next Wed, April 4th
Teams present at SWOT (Corvallis business leader forum) on Tue, April 24th
Commercialization plans judged by Portland Business Round Table panel on Wed, April 25th
Written commercialization plans due- Mon, April 30th
Top two commercialization teams present at AEP Signature event in Portland- Thu, May 3rd ($$$)

3. Technology Commercialization Checklist
Patent or IP selection
Understanding of IP scope, status, limitations
First Pass Market Survey
Commercialization option brainstorming
Product form and commercialization approach selection
Customer Value Proposition
Revenue, Staffing & Costs- Second Pass Market Survey
Startup Timeline
Cash Flow, Funding Needs, and Break even point
Funding Strategy
Next Steps and Outstanding Issues

4. Team Breakout Session
From your work to date, spend 10’ in your group preparing responses to these questions to the best of your ability (and be ready to defend your answers!). If you don’t know, explain follow up work or research you have planned to get the answers
The exact form of the product or service you will sell
Your exact position in the value chain and your competitors
Why your product or service is superior to your competitors
Your choice of a start-up and licensing approach and why
If multiple products are planned, which will be pursued first and why
Your exact customer profile (consumer or business)
Specify the problem solved that your customer will pay for
Estimate how much your customer will pay for this product or service and why
Each team gets 5’ to present their answers and respond to questions

5. Venture Capital Visit (Wed)
Bill Newman is a managing partner of NW Tech Ventures
“ NTV’s charter is to provide early-stage funding, management assistance, and business development support for new companies.  NTV’s priority is to provide the early-stage capital to commercialize technology developed at Oregon’s public and private universities and research institutions - medical, public funded, and corporate.”
“ NTV is a $14 million fund addressing the “capital gap” between conventional early-stage venture funds and research discoveries and technologies.  Our goal is to create and build businesses and commercialize the knowledge created in Oregon’s scientific and research institutions.  “

6. Preparations for Bill’s visit
Verify your assigned time for Bill. Meeting place is Weatherford Hall Library on 5th floor. Take elevator underneath the arch to 5th floor.
Please prepare a word executive summary for Bill describing the technology, your market research completed so far and details on product form, commercialization option, and customer value proposition:
The exact form of the product or service you will sell
Your exact position in the value chain and your competitors
Your choice of a start-up and licensing approach and why
If multiple products are planned, which will be pursued first and why
Your exact customer profile (consumer or business)
Specify the problem solved that your customer will pay for
Estimate how much your customer will pay for this product or service and why
Also prepare specific questions for him about your next steps in developing your commercialization plan
Also bring additional work you’ve done from my feedback or recommendations of your mentors.

7. Bill Newman Discussions
All discussions will be held in the Weatherford Library- 5th floor, access by elevator under the arch
2:00-2:30 Photonic Funnel
2:30-3:00 Novel Tablet
3:00-3:30 Avian Flu Antibodies
3:30-4:00 Printable Electronics
4:00-4:30 BREAK
4:30-5:00 Expander/Compressor

8. Next Step in Commercialization Plans: Estimating Revenue and Start Up Costs
The following assumes the following information has been collected and decisions have been made on
a) Overall commercialization approach,
b) Market research and product positioning
c) Product or service definition, and potential customer cost
d) Position in the value chain- suppliers and customers are known

9. Revenue and Cost Projections
Various financial tools are available for tracking costs for a start up.
For simplicity, we suggest a cash flow model. A simple tool for this
method is available from the Small Business Administration at
To use this tool, you will need estimates on the following
Step 1: Projected revenue vs time
Step 2: Projected development and start up costs
Step 3: Projected manufacturing costs vs time

10. Revenue/Sales Projections- Example
“Nano-reactor Systems” is a start-up company which plans to manufacture microchannel reactors for pharmaceutical applications.
Market research has shown that there are approximately 50 tools of similar function are purchased worldwide each year.
An analysis of the pharmaceutical companies costs, suggests that they would still realize a quick return on their investment if the reactors were priced at $800K to $1M each
Market research has shown that beneficial new tooling in this industry is adopted by these manufacturers, typically (Yr 1=10%, Yr 2=20%, Yr 3= 25%)
How would you generate a revenue projection from these data?

11. Development and Start Up Costs- Example
Nano-reactor Systems has developed a “bench top” microchannel reactor but needs lab space, additional staff, materials, and outside services to develop a prototype system to demonstrate to potential customers
Here are some of the detailed development costs to develop a prototype system in the first year
Materials- $500K
Operating supplies- $20K/mo
Wages: 2 development
Rent/Utilities: $1000/month
Taxes, Insurance, Licenses: $5000/yr
Outside design services: $100K
In the latter part of the year, they must also begin a sales and advertising effort with the following costs
Travel- $20K
Wages:
What would the development and start-up costs look like over the year?

12. Manufacturing Costs- Example
Once orders are received, Nano-reactor Systems believes they can manufacture up to 3 reactors per year with their present staff for the following additional costs per reactor
Materials and components- $200K
Shipping and transportation- $15K
Machining and design services- $20K
Licenses- $15K
Operating supplies- $30K
In addition to the costs above, for each additional 3 reactors per year, Nano-reactor Systems must increase its staffing and space with the following additional costs
One additional manufacturing
One manufacturing $40K/yr
From the revenue/sales projection, how would you calculate manufacturing costs for the first several years?

13. Team Work Session
Discuss with your team where you are on Tech Commercialization Checklist
Be realistic- make necessary decisions and complete research before moving to next steps
Complete any discussions on product definition or commercialization approach
Assign additional market research needed
In the remaining class time and out of class before Wednesday, please
Prepare summaries and questions for Bill Newman
Begin work on Revenue & Sales Projections