October 1, 2015 Copyright Deshpande Center for Technological Innovation, Massachusetts Institute of Technology FROM IDEA TO IMPACT Moving technology and science from Academic lab to Market 2005 FPTT Annual Meeting Richard Kivel Catalyst MIT: Deshpande Center President & COO: Physicians Academy

Copyright Deshpande Center for Technological Innovation, Massachusetts Institute of Technology 2 _____________________________________ In the Early stages of an economic system, the rewards go to those individuals who create the NEW, not to those who conserve the old. Entrepreneurship becomes more important than stewardship. Since the ultimate form of the NEW system remains unknowable, strategic planning has little use. A NEW way of business is required. Gary Hamel, Author, Leading the Revolution ________________________________________

Copyright Deshpande Center for Technological Innovation, Massachusetts Institute of Technology 3 1.A few strong, clear Regulations….. 2.….. Implemented transparently and efficiently. e.g. Single Window for new Incorporations. Predictable Process: in 20 minutes. e.g. No taxes until the companies are making money. e.g. Easy to hire, and fire Paradox: The most jobs are created in places where terminations can be fast and cheap. e.g. Clear path for intellectual property protection and creation. Providing a Productive Climate For New Business Creation  Role of the Governments:

Copyright Deshpande Center for Technological Innovation, Massachusetts Institute of Technology 4 1.Understand that vibrant new businesses make the whole sector more competitive. 2.Try hard to buy from startups, so they can grow. 3.Constantly benchmark best practices, and urge host government (s) to do the same. 4.Create corporate venturing units, and invest in the best VCs. Providing a Productive Climate For New Business Creation  Role of the Private Sector:

Copyright Deshpande Center for Technological Innovation, Massachusetts Institute of Technology 5 PROGRAM OVERVIEW Launched 3 years ago $20M gift Sustainability MISSION: Make impact through technological innovation

Copyright Deshpande Center for Technological Innovation, Massachusetts Institute of Technology 6 VALIDATED BUSINESS MODEL MIT ECOSYSTEM DESHPANDE CENTER MIT ENTERPRISE FORUM MIT TLO ENTREPRENEURSHIP CENTER MIT VMS $50K COMPETITION Innovation Idea for a company Business Plan Customers Funding Growth MIT SLOAN

Copyright Deshpande Center for Technological Innovation, Massachusetts Institute of Technology 7 Events VALIDATED BUSINESS MODEL BRIDGING THE GAP Catalyst Program Grant Program i-Teams

Copyright Deshpande Center for Technological Innovation, Massachusetts Institute of Technology 8 GRANT PROGRAM 238 proposals totaling $30M 44 projects $4.9M in grants

Copyright Deshpande Center for Technological Innovation, Massachusetts Institute of Technology 9 BUSINESS COMMUNITY CATALYST PROGRAM: COMMUNITY VOLUNTEERS CATALYSTS Krisztina Holly Executive Director Katja Wald Program Coordinator Ken Zolot i-Teams Faculty Lead Maryam Khodadoust Office Manager Lauren Clark Internal Communications STAFF Desh Deshpande Founder, Sycamore Charles L. Cooney Faculty Director Alex d‘Arbeloff MIT Honorary Chairman Tom Magnanti Dean of Engineering Ed Anderson North Bridge Venture Partners Jeff Andrews Jeff Fagnan Mike Feinstein Ric Fulop Art Goldstein Jamie Goldstein Steve Kelly Rich Kivel Duncan McCallum Amir Nashat Sung Park Stan Reiss Students Entrepreneurs Grant reviewers...and others STEERING COMMITTEE

Copyright Deshpande Center for Technological Innovation, Massachusetts Institute of Technology 10 The Annual IDEASTREAM event Showcase (early) MIT technologies Connect communities Develop Teams

Copyright Deshpande Center for Technological Innovation, Massachusetts Institute of Technology 11 Changing the Economics of Fuel Cells Reduce noble metal = reduce fuel cell costs by 10x

Copyright Deshpande Center for Technological Innovation, Massachusetts Institute of Technology 12 CASE STUDY: 3-D Imaging Technology “The Deshpande Center brings together resources and expertise that I could not pull together on my own.” -Prof Doug Hart Project history: »Initial invention developed for very specialized research application: fluid flow analysis »D-Center feedback helped refine target market: medical imaging »D-Center funding enabled technology to be applied to market need Deshpande Center also helped linked the team to team members, investors, other resources Current Status: Start-up spun out of MIT

Copyright Deshpande Center for Technological Innovation, Massachusetts Institute of Technology 13 The Industry, Person, Company, Region, Country with the most Knowledge will win! Development of Attraction of Retention of Commercialization Sharing of Transfer of KNOWLEDGE

Copyright Deshpande Center for Technological Innovation, Massachusetts Institute of Technology 14 Case Study: MIT $50K Entrepreneurship Competition

Copyright Deshpande Center for Technological Innovation, Massachusetts Institute of Technology 15 MIT $50K Entrepreneurship Competition  Designed to encourage students and researchers in the MIT community to act on their talent, ideas, and energy to produce tomorrow's leading firms.  Business Plans are judged by a panel of experienced entrepreneurs, venture capitalists, and legal professionals.

Copyright Deshpande Center for Technological Innovation, Massachusetts Institute of Technology 16 Team Market Size Unfair advantage Leverage Point Customers validation Business Model Exit Do you have the Right Ingredients?

Copyright Deshpande Center for Technological Innovation, Massachusetts Institute of Technology 17 Autumn Global Entrepreneurship Lab: Simon Johnson, Richard Locke, Ken Morse, Alex (Sandy) Pentland Fall H2 - Spring H1. (12 units) New Enterprises – 2 Sections: Howard Anderson, Noubar Afeyan (9 units) Raising Early Stage Capital: Shari Loessberg (6 units) Business Plans that Raise Money: Russ Olive (6 units) Technology and Entrepreneurial Strategy: Fiona Murray (9 units) Technology Sales and Sales Management: Howard Anderson, Tim Kraskey, Ken Morse (6 units) Entrepreneurship Lab: Barbara Bund, Ken Morse, John Preston (12 units) Entrepreneurial Marketing Jin Gyo Kim (9 units) Building a Biomedical Business Fiona Murray (9 units) ProSeminar in New Product and Venture Development Drazen Prelec (9 units) $50K Autumn $1K Entries due IAP (January) Technology and Competitive Strategy Joseph Jacobson, Fiona Murray (Continues through Spring) Preliminary Venture Analysis and Personal Entrepreneurial Career Strategy Russ Olive (3 units) Nuts and Bolts of Business Plans Joe Hadzima (3 units) Starting and Building a Successful High Tech Venture Bill Aulet, Mike Grandinetti (3 units) Marketing: An Introduction for Engineering Entrepreneurs Barbara Bund (not for credit) Special Course introduces MIT engineers to marketing strategies and customer needs Entrepreneurship Development Program (EDP) An intense one-week executive education course for entrepreneurs from around the world. $50K IAP February $50K Executive Summaries due Spring New Enterprises – 2 Sections Howard Anderson, Noubar Afeyan (9 units) Raising Early Stage Capital Shari Loessberg (6 units) Business Plans that Raise Money Russ Olive (6 UnitsI) Technology & Entrepreneurial Strategy Fiona Murray, Joseph Jacobsen (9 units) Designing and Leading the Entrepreneurial Organization Diane Burton (9 Units) Entrepreneurship Without Borders Simon Johnson, Richard Locke (9 units) Entrepreneurs in High Technology: IT, Energy, Biotechnology Howard Anderson, Ellen Roy (9 units) Entrepreneurship Lab Barbara Bund, Ken Morse, John Preston (12 units) Entrepreneurial Finance. 2 Sections Antoinette Schoar (9 units) Strategic Human Resource Management Diane Burton (6 units) Entrepreneurial Marketing Jin Gyo Kim (9 units) Building a Biomedical Business Fiona Murray (9 units) $50K Spring May 2005 $50K Full Entries due The MIT$50K Entrepreneurship Competition is synchronized to the rhythm of the Academic Program

Copyright Deshpande Center for Technological Innovation, Massachusetts Institute of Technology 18 Tomorrow’s Leading Firms  In its fifteen-year history, the MIT $50K has created:  60+ firms and over 1800 jobs  $275 Million in Venture Capital invested  Aggregate market capitalization has ranged from $5.5 – $40 Billion  Teambuilding + Mentors + Education + Networking + Capital  Entrants include MIT graduate and undergraduate students as well as faculty.  Students from every MIT School and 27 Departments participate (Teams which include Sloan students are consistently the strongest entries….)

Copyright Deshpande Center for Technological Innovation, Massachusetts Institute of Technology 19 Every MIT School participates in the MIT $50K Competition

Copyright Deshpande Center for Technological Innovation, Massachusetts Institute of Technology 20 A Few Success Stories… Distributed Computing 2000 MIT $50K Runner up Funded by Kleiner Perkings and Common Angels Software to improve Internet Searching 1998 Co-Winner $29M Funding Sold to AskJeeves for $507 million in 2000 Devices to transcribe writing to computer 1997 Runner-Up $13M Funding Product Launched Next generation customer support software 1996 Winner Acquired by Cisco for $325M in 1999 New Signal Processing Semiconductors 1995 Participant Over $10M Funding Acquired by Broadcom for $1.19B in 2000 Rapid Internet Content Delivery NASDAQ: AKAM Market Cap of $3.6B Internet business solutions delivery NASDAQ: CBIS m o l e c u l a r w a r e Genomic and Proteomic Software 1999 $50k Winner Acquired by Calbatech, Inc June 2003

Copyright Deshpande Center for Technological Innovation, Massachusetts Institute of Technology 21 MAKING IMPACT Economic Academic Societal

Copyright Deshpande Center for Technological Innovation, Massachusetts Institute of Technology 22 ANY QUESTIONS? Richard P Kivel