1. Austin Technology Incubator Accelerating Innovation
May 2010
Austin Technology Incubator Accelerating Innovation
The University of Texas at Austin

2. ATI – A Program of UT Austin’s IC2 Institute
University of Texas at Austin
Research
IC2 Institute
ATI IT
Wireless
Clean Energy
Bioscience

3. Positive economic + community impact for Austin
What We Do
Help early-stage technology companies access talent, capital, networks, partners, and customers
Support and grow the Austin entrepreneurial community
Train UT students in technology entrepreneurship and help build businesses based on UT innovation
Positive economic + community impact for Austin

4. How We Do It Strategic coaching and mentoring
Business plan development
Access to UT and community talent
Corporate and professional partnerships, networks
Funding proposals and introductions
Business infrastructure support
Work directly with early stage companies
Conferences
Community events
Entrepreneur education
Promote Austin nationally, internationally
Support broader Austin tech community

5. 70% received seed funding in past 2 years
ATI’s Sweet Spot
70% received seed funding in past 2 years
Cash flow
Our key value add: Surround these companies with talent that they otherwise could not afford to access
Time
“A” round funding and/or market traction
Seed funding

6. ATI’s Historical Impact Since 1989
~200 companies
~$750 million in capital raised
4 IPOs
~40 acquisitions
>30 independent, profitable companies
thousands of jobs (direct and indirect) created by ATI companies
hundreds of UT students trained in technology entrepreneurship

7. 63% decline of VC investment into Texas companies
Context – 2008/09 Financial Environment
63% decline of VC investment into Texas companies
IPOs fell off a cliff
Source: National Venture Capital Association and PricewaterhouseCoopers MoneyTree Report and Thomson Reuters

8. ATI’s Impact Last Two Years
40 member companies (11 graduates)
~9 relocation efforts
~$50 million in capital raised (including ETF money)
~$300 million in company exits
~4 acquisitions
260 jobs (direct and indirect) created by ATI companies
Increased cross campus reach (relationships with new colleges, new student programs)

9. Incubation Process at ATI
Vet
Internally
Screen
Admit into ATI
Set Milestones
Review
Graduate from ATI
Vet
Externally
Up to 3 years or:
When a major funding round is obtained
When significant cash from operations are achieved
When ATI can no longer add significant value
Death
People
Market
Technology

10. ATI – Information Technology
Launched in 1989 by Laura Kilcrease and Dr. George Kozmetsky with funding from the City of Austin
Supported by membership and rental fees by member companies
Dedicated to helping companies in the enterprise software, internet infrastructure, semiconductor, and gaming technology spaces
Currently 6 member companies in portfolio.

11. ATI – Wireless Launched in 2006 with funding from City of Austin
Dedicated to helping companies developing wireless communications infrastructure, end devices, and mobile solutions
Provides resources and facilities necessary for start-ups to attract funding, aggressively compete in the market and turn ideas into reality
Strong relationship with UT’s Wireless Networking and Communications Group (WNCG)
Currently 7 member companies in portfolio.

12. ATI - Clean Energy Incubator (CEI)
Launched in 2001 by the U.S Department of Energy National Renewable Energy Laboratory (NREL)
Supported by the Texas State Energy Conservation Office (SECO), City of Austin and Austin Energy
Dedicated to helping companies succeed with disruptive clean energy technologies
Currently 7 member companies in portfolio.

13. ATI – Bioscience
Launched in late 2007 with funding from the City of Austin. First director brought on in 2008.
Supported by City of Austin and local sponsors
Dedicated to helping companies succeed in the medical device, drug delivery, therapeutics, and health care industries
5 member companies in portfolio since inception.

14. Community Building Events Education Institution building
5,600+ attendees
Support of other tech not-for-profits (e.g., ATC)
Events
ATI/Rice/CTAN entrepreneurship training classes Fall and Spring
Coaching and mentoring
Education
Helped create Pecan Street Project, Semantic Web Austin
“Incubated” Tech Ranch (for-profit incubator)
Served on boards of 10+ Central Texas economic development and/or technology organizations
Institution building
48 media mentions
6+ national conferences
Supported delegations from 11+ countries
Brand building

15. UT Austin New programs Support for existing programs
3 Day Start-up (3DS)
Student Entrepreneur Acceleration and Launch (SEALs)
IBM internship program
New programs
Business plan and technology competitions (Moot Corp, i2P, MSTC)
Student internships (cross campus)
Class engagement
Student and faculty business building
Support for existing programs

16. University of Texas at Austin
ATI Sources of Support
University of Texas at Austin
State of Texas
Membership dues & fees
City of Austin
Austin Energy
ATI is financially supported by a variety of entities

17. ATI has a team of 8 staff + dozens of interns
ATI Operations
Member Services
Equity Donations
Space Utilization
Conferences & Events
University Backend
ATI has a team of 8 staff + dozens of interns

18. Questions