Post on 25-Feb-2016
description
Commercialization of Publicly Funded R&D:
Mechanisms and Approaches within U.S. Agencies & S&T Organizations Abroad
Carlos E. GutierrezChief Strategy OfficerLarta Institute
June 2011
2
Our Mission
To vastly improve the transition of scientific and technological
breakthroughs from the lab to the marketplace, and to help
government-funded entrepreneurs/innovators create
self-sustainable enterprises
3Confidential. Copyright Larta Institute 2011. All rights reserved
US and Global Clients/Partners
4
About Larta• Founded 1993 as a public –private
partnership• Non-profit, private corporation • Innovation policy advice for both national
and regional economies around the world to build strong ecosystems
• Design and execution of programs (for US and Global Partners) to accelerate the market readiness of early stage enterprises:– Commercialization from emerging R&D-based
enterprises• Commercialization Assistance Programs
(CAPs)– University technology transfer
• Technology Transfer Programs (TTPs)• Foster strategic relationships with capital
providers and industry partners
Background
Core Services
5
SBIR• Started in 1982• All 11 agencies participate• 2.5 % of agency R&D budget• Currently $2 Billion• $14 Billion Awarded via 50,000
grants since Inception
The US Experience - The SBIR & STTR Programs
Funding to Support R&D Activities
STTR• Started in 1992• The largest 5 agencies
participate • DOD, DOE, NIH, NASA & NSF
• 0.3 % of agency R&D budget• Currently $100 Million• Small business must have
partnership with non-profit research institution • university or research center
• 531 Publicly traded companies• Qualcomm, Millenium, Amgen, JDS
Uniphase etc.• 1,200 M&A deals to date• 552 current VC-funded companies
6
A Three-Phase Program• Grants $100K – $300K• 6 – 12 months• Support exploration of
technical merit or feasibility
• Grants from $500K - $3M• 12 to 24 Months• Refinement of technology
• No more government grants
• Private funding• Exit: sales, IPO, licensing,
etc.
Phase I: Start up Phase
Phase III: Commercialization
Phase II: Expand idea, find commercial outlets
7
Challenge: • Agencies realized that they only provided support to
one piece of the equation (R&D work), but had no instrument to facilitate the market readiness/awareness/connections for innovations headed by a PI (principal investigator) with a scientific/research background.
Solution:• Agencies contract with external partner
organizations to design and implement Commercialization Assistance Programs (CAPs) for their grantees.
The US Experience - The SBIR & STTR Programs
Mechanism to support commercialization of publicly-funded R&D
8Confidential. Copyright Larta Institute 2011. All rights reserved
Objective of Larta CAPs
Larta mentors emerging companies, and connects them to the right people, capital and resources.
Prepare tech-based enterprises to cross the Valley of Death
9
Provide SBIR/STTR grantees with focused assistance to refine their business models, accelerate the
commercialization of their IP, and foster connections with
investors/partners
Commercialization Assistance Programs (CAPs)— A Virtual Model
Larta designs and manages CAPs for 5 of the largest SBIR/STTR programs of the federal agencies: NIH, USDA, NSF, TATRC (US Army) and DOE
10Confidential. Copyright Larta Institute 2011. All rights reserved
Larta U.S. CAPsNational Institutes of Health
• 80+ SBIR Phase II companies each year• Medical devices, pharmaceuticals, diagnostics, healthcare IT, biotech, etc.• 18 months of tracking after the program
National Science Foundation• 250+ SBIR/STTR Phase I companies each year• Industrial technology, cleantech, energy, advanced
materials/nanotechnology, electronics/IT, chemical-based technologies, etc.
US Department of Agriculture• 40+ SBIR Phase II companies each year • Food and nutrition, precision agriculture, animal health, plant science,
biofuels, etc.US Army - TATRC
• 25 SBIR Phase II companies each year • Healthcare IT, Mobile Health, robotics, simulation software, etc.
US Department of Energy• 125 SBIR Phase II grant applications reviewed each year, with
recommendations provided for funding grants• Energy efficiency, renewable energy, wind, solar, green materials,
sensors, generation, etc.
11Confidential. Copyright Larta Institute 2011. All rights reserved
Anatomy of a CAP: NIH-CAP Case Study
• Funded by NIH, developed and managed by Larta Institute to assist SBIR Phase II NIH awardees with commercialization. Since 2004.
• Designed to help small life science and healthcare companies to develop their commercial “profile” and transition their SBIR-funded technologies into the marketplace
• Competitive process: 80 companies selected from among 250+ eligible ventures
• The company’s “decision maker”/CEO is encouraged to participate in the CAP as the CAP-Leader
• Sponsored (financed) by NIH. • 10 month program (virtual and face-to-face). • Combination of:
• Intense 1:1 mentoring by Larta Principal Advisor• Feedback Sessions with external 3rd party experts (investors, industry, IP
strategists, regulatory specialists, etc.) – Boston, DC, Los Angeles• Strategic Introductions through Larta Industry Advisory Boards (IAB)
12Confidential. Copyright Larta Institute 2011. All rights reserved
Larta Industry Advisory Boards (IAB)
Chemical/Materials/ Cleantech
Ashland Corp.BASF
BoeingChisso Corp.
Dow Chemical Co.Honda Strategic
VenturingProcter & GambleSekisui Integrated
ResearchSEMPRA Energy
Sharp CorporationTexas Instruments
Schlumberger3M
Electronics/IT/ Software
Boeing
Honda Strategic Venturing
Philips Healthcare
Sharp Corporation
TechNavi, LLC
Texas Instruments
Schlumberger
Motorola
Life Science
AbbottAllerganBayer
BD VenturesBiogen IDECBoehringer IngelheimGenentechGenzyme
Johnson & JohnsonLife Technologies
MedtronicMerck
Novo NordiskPfizer
Philips Health careRCT Bioventures
Siemens VenturesTakeda
Agriculture
Finistere Ventures (Chair)BASF
Bayer Crop ScienceCargillADM
Dow AgrosciencesMonsantoNelson Gibson
(formerly with John Deere)Nestle
Novus InternationalPioneer Hi-Bred
Syngenta
13Confidential. Copyright Larta Institute 2011. All rights reserved
NIH-CAP Case StudyDeliverables
• The development of a Market-Driven Presentation. The presentation will convey the company’s value proposition and will embody and address the critical components of a market entry strategy: technology, Intellectual property, markets and market need (problem), management, manufacturing/business model and adoption issues, and strategic alliances.
• A 2-3-page Commercialization Strategy Report (CSR) document which includes a Barriers to Commercialization document, a Competitive Matrix, and a Commercialization Roadmap or schedule of budgetary and operating milestones. The Commercialization Strategy Report will summarize recommendations and next steps that will help the company meet the commercialization objectives that were outlined earlier.
14Confidential. Copyright Larta Institute 2011. All rights reserved
NIH-CAP 2010Companies by Industry Sectors
Biotechnology; 107; 16%
Diagnostics; 86; 13%
Healthcare IT; 90; 14%
Medical Device; 176; 27%
Pharmaceuticals; 68; 10%
Other*; 124; 19%
Total
Biotechnology Diagnostics Healthcare IT Medical Device Pharmaceuticals Other*
15Confidential. Copyright Larta Institute 2011. All rights reserved
Metrics: NIH-CAP Case Study• Mentored over 600 NIH-
funded companies• $397 million raised by
companies attributable to Larta impact*
• 10 acquisitions (8 companies, 2 technologies)
• 302 deals made• 500+ initial proposals &
term sheets created• 1,800 CDAs signed• 3,600 meetings with
investors & partners arranged
NIH-CAP: 2004-Current
Additional Partnership & Deal-Related Activity
* http://grants.nih.gov/grants/funding/cap/success_data_NIH_CAP.pdf
16Confidential. Copyright Larta Institute 2011. All rights reserved
Larta - Global Bridge Initiatives
• Defined: CAPs designed for innovation agencies/S&T organizations around the world
• Aligned with innovation policy objectives and integrated with key stakeholders (universities/research institutes, industry, economic development agencies)
• Focused on internationalization of early stage R&D-based ventures and developing linkages to U.S. partners
• Strong component of technology transfer for benefit of the regional partner– Supports sustainability– Builds local capacity for regions to manage their own
commercialization efforts– Linkage to Larta Institute as a ongoing U.S.-based partner
17Confidential. Copyright Larta Institute 2011. All rights reserved
Carlos E. GutierrezChief Strategy Officercgutierrez@larta.org
606 S. Olive Street, Suite 650Los Angeles, CA 90014
ph: 213.538.1453fx: 213.622.6230www.larta.org