Alto Douro Incubator (ADI) Raquel Sa: UTEN Austin Internship, Feb 2010 Universidade de...

Alto Douro Incubator (ADI)

Raquel Sa: UTEN Austin Internship, Feb 2010

Universidadede Trás-os-Montese Alto Douro


Job & Wealth Creation

Community Community needsneeds

National & InternationalNational & International

Market realitiesMarket realities

Talent Technology Capital Know-how

Business Gov’tAcademic

The Alto Douro Regional Model


NEW JOBS

Investments

University


ADI Two-fold Mission

1) To facilitate economic development through the support of entrepreneurship and new venture incubation

2) To provide opportunities for UTAD students and faculty to study new venture development in a life-scale, yet controlled (scientific laboratory) environment


Spin-Out Companies andthe Knowledge Technology Transfer Gap

• Technology valuation/protection• Market research • Networking for financial support • Manufacturing access• Distribution, sales, and service • Managerial know-how: fast

growth

G A PApplication of R&D for firm:

• Diversification• Expansion• New formations

R&D Funding

• Government• University• Corporate

Incubator Role


Provide access to national/

internationalmarkets and

resources

Benefits of Alto Duro Incubator

TenantFirms

Enhancecredibility

Provideaccess to

localbusinessnetworks

Shortenlearning

curve


Alto Douro Incubator

Catalyze new technologies to:• Achieve accelerated commercialization successes

• Promote path-breaking technologies for creating

newer industries and “smart” infrastructures

Help both low-tech and hi-tech businesses maneuver past the “valley of death”


ADI(non-profit/profit)

Key Components of the Alto Douro Incubator

Entrepreneur’s Technology

Incubator Affiliation

Administration

Know-How Networks

Support Systems

Tenant Companies

Faster to market& fast growth

Economic Development

Job Creation

Profits

Industrial Competitiveness

Facilities

Capital

.

Pri

vate

Un

ivers

ity

Gov’t

International Branding

Training & Education

ViableCompanies


ADI Value Proposition

• Aggregate and channel value from stakeholders for the benefit of member companies

– UTAD research, faculty, students, and staff

– Service providers, mentors, investors, and corporate partners

• Return value to stakeholders

– Create wealth in our communities by systematically monetizing new technology ventures

– Reduce the risk inherent in new ventures

– Provide entrepreneurial business education and engage in leading edge research


Incubator Tenant Services


Community Incubator Services


Business Incubators Can

• Assist leveraging of regional technology and know-how resources

• Promote partnerships between large companies and entrepreneurial firms

• Facilitate public/private collaboration• Help develop a regional cluster• Act as a “lightening rod” to attract

entrepreneurial talent


The ADI Commercialization Value Chain

InnovateInnovate

ProductizeProductize

Engage MarketEngage Market

GrowGrow

CapitalizeCapitalize

ResearchResearch

Investors

Alto Duro Incubator

Technology Transfer Office

University


ADI within the UTAD Hierarchy (Raquel please review & change as needed Office of the Rector

Research Faculty

Office of Technology Transfer

Business Faculty

ADI IncubatorThe University

Commercial Sector


Incubation Process at ADI

Screen Application

VetInternally

VetExternally

Set Milestones

Technology

People

Market

ReviewAdmit into

ADIGraduate from ATI

Up to 3 years or:1) When a major investment funding is

obtained or2) When significant cash from operations are

achievedCompany pays ADI an annual membership fee

Company donates equity to UTAD


The Right SELECTION Criteria for Company Tenants

• Strong business plan & team• Technological credibility• Market potential• Employment potential• The right mix of companies within

incubator and for the region• Experienced judgment for business

success


The Value of a Business Incubator to Tenants

Accelerated Firm GrowthAccelerated Firm Growth


The Right GRADUATION Criteria for Company Tenants

• Job Growth Potential• Financial Potential• Market Potential (global)• Time to leave “home”• Variations by technology type • Seasoned judgment


ADI Future Strategic Initiatives

• Focus on technology sectors relevant to Alto Duro and develop sector focused incubation– Select staff members with sector-specific industry

experience– Leverage know-how at UTAD and business activity in Alto

Duro

• Fund operations through alternative revenue sources– Public-Private Partnerships– Research Grants

• Enable start-up companies to “Go Global”– Establish best practices and provide support for internet

marketing plan– Leverage global contacts established by UTEN international

partner programs


ADI

IT/SoftwareIT/Software WirelessWireless

Digital MediaDigital Media

Nano-BioNano-Bio

Other…Other…

Clean EnergyClean Energy

ADI: Potential Hi Tech Sectors


Ten Success Factors Concise programmilestones with

clear policies and procedures

In-kindprofessional

support

Communitysupport

Entrepreneurialnetworks: regional,

national, international

Entrepreneurialeducation

Perceptionof success

Selectionprocess for

tenants

Tie to a university

On-site learningand leveraging

of resources

Access tofinancing andcapitalization

ADI


ADI Success Factors

• Need a champion• First Director is key• Gain community support• Develop viable business model adapted to

Alto Douro• Build entrepreneurial ecosystem including

ADI service providers


Critical Success FactorsAdvisory Board

AcademicBusinessGovernmentLeaders/visionaries/champions

The DirectorNurturing/disciplinedNetworking skillsResourceful/adaptable/politicalBusiness experience


An Entrepreneurial CultureBootstrapping mentalityLeverage/scrounge resourcesHard work/long hoursCommunity buy-in & support

ResourcesTangiblesIntangibles = Know-how & Networks (MOST

IMPORTANT)

Context/Culture: Community Support

Critical Success Factors (continued)


Environment and Culture

1. Successful commercialization environment requires regional support and know-how

2. An entrepreneurial culture3. Tenant company entrepreneurial and

professional training4. Internally cooperative and externally

competitive5. “Open organization” – links to academia,

government, business6. An environment of continuous learning for

commercialization-both good & bad lessons learned


Incubator Start-up Task List

1. Recruit a team of advisors2. Recruit an incubator Director3. Establish Company Selection/Exit Processes4. Establish Physical Facilities5. Recruit network of Service Providers6. Develop Web site7. Recruit Tenant Companies


ADI Goals & Metrics

Commercialize Science and Technology for wealth and job creation

R&D consortia, UTAD, firms, start-upsHelp• Build management teams• Secure financing• Accelerate time to market• Graduate fast growth firms• Create direct technology jobs at low cash cost per job• Attract and retain talent to Alto Douro• Build “Smart Infrastructure” of professional service

providers


Academic1. Develop technology entrepreneurship

and management curriculum2. Successful placement of students3. Experimental learning4. Research5. Royalty and license fees

Metrics for Success


Establish Incubator FacilitiesAn incubator can be established with a small

staff, in relatively modest facilities.Regional donations can assist with securing

office furniture & supplies, and also in providing complimentary professional services to early-stage companies.

As success increases, so can the facilities and staff.


EVOLVING ADI’s VALUE PROPOSITION

Value to today’s entrepreneur

Time

Services offered to entrepreneurs

Start-up infrastructure support

•Office space

•Professional services

•Capital networks

•Business consulting

PHASE ONE Industry-

specific accleration (clean energy, wireless, etc.)

PHASE TWO

At left, plus:

•In-depth consulting

•“Virtual Board”

•Targeted capital matchmaking

“Market Making”

PHASE THREE

At left, plus:

•Access to key global partners


ADI will provide strategic, operational, and infrastructure support to promising, early-stage technology-based ventures.

ADI will work with entrepreneurs and investors, professional service providers, and industry leaders to benefit its member companies.

Alto Douro Incubator (ADI) Raquel Sa: UTEN Austin Internship, Feb 2010 Universidade de...

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