- Health Research Alliance we can help to start a new company is vital to the future of our economic...

© 2008 by the Ewing Marion Kauffman Foundation. All rights reserved.

Encouraging and Encouraging and

Advancing InnovationAdvancing InnovationHealth Research Alliance MeetingHealth Research Alliance Meeting

Alexandria, VirginiaAlexandria, Virginia

“Every individual that we can

inspire, that we can guide, that we can help to start a

new company is vital to the

future of our economic

welfare.”

— Ewing KauffmanSandra Miller, Kauffman Foundation, Kauffman Labs


Mission

To help individuals attain economic independence by advancing educational achievement and entrepreneurial success.

www.Kauffman.orgwww.Kauffman.org

Innovation resides at the intersection of invention and insight, leading to the creation of social and economic value.

National Innovation Institute

3

Innovation Defined


Innovation Innovation –– an early definitionan early definition

“Innovations are changes in production functions which cannot be decomposed into infinitesimal steps. Add as many mail-coaches as you please; you will never get a railroad by so doing.”

Economist Joseph SchumpeterFrom “Innovation Measurement: Tracking the State of Innovation in the

American Economy”. A report to the Secretary of Commerce. January, 2008


Definition of a StartupDefinition of a Startup

“…an organization dedicated to creating something new under conditions of extreme uncertainty.”

Eric Ries

From “The Lean Startup” 2011


Nothing Happens Without FoundersNothing Happens Without Founders

Thomas J. Fogarty, MDInductee, National Inventor’s Hall of Fame, 2000

“…“…an innovation, in an innovation, in and of itself, has and of itself, has little value little value without without

implementationimplementation…”…”


Where do new jobs come from?Where do new jobs come from?


Where do new jobs come from?Where do new jobs come from?

Business Dynamics Statistics Briefing. “Jobs Created from

Business Startups in the United States”. January, 2009


New Firms and U.S. Economic GrowthNew Firms and U.S. Economic Growth

600,000 new firms per year

Of which 1,000 are high-growth

$$

Equaling 1/3 of total economic growth

Or 1% growtheach year


Entrepreneurship and RiskEntrepreneurship and Risk


At the beginning, the risk of failure At the beginning, the risk of failure

overwhelms all else.overwhelms all else.

• Can I afford to take this risk?

• What will happen if I fail?

• What will I lose?

Carl J. Schramm, “The Entrepreneurial Imperative” 2006

Many entrepreneurs see only the upside.

“I want to build something!”

• “Hiring people, firing people,

understanding our business model,

getting customers, servicing the

customers, finding office space,

scaling the company, staring down

competitors, raising money,

satisfying shareholders....That’s all

in the first six months.”

Jay Watkins, De Novo Ventures. “The Hidden Legacy of a Founder’s Early Decisions”Kauffman Postdoc Workshop, October 2009

Decision Making as a Founder

No baseline values or norms

Conflicting constituencies

Large number of decisions that need triage in

a fast and dynamic environment

Few interim measures of success or failure

Exaggerated impact and power

Poverty and high stakes

Jay Watkins, De Novo Ventures. “The Hidden Legacy of a Founder’s Early Decisions”Kauffman Postdoc Workshop, October 2009

A new model to catalyze founders of high-growth, scalable companies

A School for FoundersA School for Founders

Why is Kauffman Focusing on Postdocs?

“The critical role that scientists play in our economy is compromised because faculty, graduate students and postdocs do not have a base level understanding of commercialization to empower them to recognize and advance their own innovations.”

Lesa Mitchell, VP, Kauffman Advancing Innovation

Postdoctoral Researchers – a Quandary

The Promise The Challenge


Innovation Ecosystem

Open Collaborations

Faculty-Firm-Not for Profit Consulting/Sponsored Research

Kauffman Entrepreneur Postdoctoral Fellowship

Objective: train tomorrow’s scientific founders

Year full support

Hours/week release time from bench

• Networking Groups/Events

• Entrepreneurs

• Service Providers

Kauffman Entrepreneur Postdoctoral Fellowship Program Fall 2009 Workshop

Brigham & Women’s HospitalBrown UniversityCarnegie MellonDukeGeorgia TechMITStanfordUC DavisUC IrvineUniv of FloridaUniv of LouisvilleUniv of Michigan *Univ Wisconsin-Madison

* Funded by New Economy Initiative (Michigan)

Kauffman Entrepreneur Postdoctoral Fellows


Sam Mazin (Stanford) & Akshay Nanduri, co-founders

Using PET, delivers a high dose for better tumor control while sparing healthy tissue damage

Clever seed financing model

Reflexion Medical


* Funded by New Economy Initiative (Michigan)

Backyard Brains

•Tim Marzullo (U Michigan) & Greg Gage, co-founders•Kits to teach neuroscience in school, DIY•Bootstrapped to $500K SBIR•4+ new jobs created…in Michigan!

Kauffman Postdoctoral Entrepreneur Kauffman Postdoctoral Entrepreneur Fellowship Fellowship –– Outcomes To DateOutcomes To Date……

4 postdocs left companies (founder issues)


$


2012 – Postdocs 2.0

New approach to selectionMixed disciplines (business, design, etc.)Team-basedStage GatesRequired engagement of faculty co-inventors


2012 – Postdocs 2.0

Seeking Partners…- Get the word out- Strategic follow-on funding

Interested? Please contact me.


New ModelsNew Models

UNIVERSITY-BASED

� Proof of Concept Centers

� UNC Express License Model

� Increased Education & Awareness

ESHIP ENGINES

� Incubators w/sustainability model

� TechStars & Y-Combinator >

ImagineK12.org

� Co-Work Facilities� RocketSpace, Hacker’s

Dojo, Dogpatch, The Hub

� StartUp Weekend.org


Kauffman ResourcesKauffman Resources

www.entrepreneurship.org

www.ibridgenetwork.org

www.fasttrac.org

www.kauffman.org


Mr. Kauffman’s Principles:

� Treat others as you want to

be treated,

� Share life's rewards with those who make them possible

� Give back to society


Growing Economies, Growing Economies,

Expanding Human WelfareExpanding Human Welfare


BACK UP SLIDES, MISC.BACK UP SLIDES, MISC.


Which companies create the most value?Which companies create the most value?


University Research and Economic GrowthUniversity Research and Economic Growth

� Entrepreneurship Innovation Productivity Growth

� Growth transforms yesterday's luxuries into better, cheaper, and more efficient goods and services

� Lead to longer, healthier lives

� University research is a key component for innovation� The institutional infrastructure is inefficient

� Convoluted procedures and insufficient guidance

� Angel investors and venture capitalists increasingly invest in later-stage enterprises

� Researchers face difficulty finding early-stage funding

Source: Audretsch, David, and Christine Gulbranson. Jan 2008. “Proof of Concept Centers: Accelerating the Commercialization of University Innovation.” The Kauffman Foundation (hereafter cited as Proof of Concept Centers)

- Health Research Alliance we can help to start a new company is vital to the future of our economic...

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