UNIVERSITY OF ILLINOIS AND LOCAL RESOURCES FOR ENTREPRENEURS

ABUNDANT RESOURCES Re s e a r c h P a r k - E n te r p r i s e Wo r k s IllinoisVENTURES UCAN Loans/financing through the CCRPC A d va n t a g e I l l i n o i s - I I V F SBDC SCORE counselors EIRs I-Start M o b i l e C e n te r TEC: Cozad TEC: Lemelson T E C : I d e a to P r o d u c t Illinois Launch I n n ova t i o n C e l e b r a t i o n CEM course I nv e n t i o n to Ve n t u r e Cozad Entrepreneur lecture at COB Student entrepreneur groups: IEN, Entrepreneurs without Borders, Chinese entrepreneur association  Use thesis advisors, senior design p r o j e c t s , c o u r s e wo r k to h e l p yo u a d va n c e c o m m e r c i a l i z a t i o n                   

                  

I n n ova t i o n L LC P a te n t C l i n i c Pro Bono Legal Services P r o to t y p i n g t h r o u g h M e c h S E Fa s t Tr a c C o u r s e a t E W a n d a t R a n to u l with Parkland College S e c o n d S a t u r d ay N ew S B I R c o n s u l t a n t NSF I-Corps assistance C O D E : S o f t wa r e G r o u p B i o te c h N e t wo r k i n g G r o u p C E O Ro u n d t a b l e Wo m e n i n Te c h ev e n t s Te c h M i x ev e n t s Te c h C o c k t a i l S t a r t u p C a f é ev e n t s TEC courses: Entrepreneurship in Engineering E I R m e n to r i n g t h r o u g h a l u m n i Industrial design assistance Student business consulting: IBC, OT C R , s e n i o r d e s i g n c o u r s e s

ENTERPRISEWORKS INCUBATOR  EnterpriseWorks (EW) is a 43,000 sq f t star tup business incubator in the Research Park for early stage tech firms. It is owned and operated by the Univer sity of Illinois to help launch successful star t-up companies.  Shor t term leasing of lab and of fice suites  Atrium and meeting space used for Research Park weekly events  Entrepreneur resources to suppor t company formation and growth  Shared labs with equipment, and co-location ser ver space available  Named by Inc.com as one of 10 “Incubator s to Watch” in 2011

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STARTUPS CURRENTS IN ENTERPRISEWORKS EnterpriseWorks Company Industry Sectors 20 18 16 14 12 10 8 6 4 2 0

Biotech

UI Company Origin: 56% of companies report their origin as coming out of a University department or lab (does not include student started firms). Licensing: 45% of firms report have IP licensed from UIUC , 18% have pending licensing.

Clean Tech

13%

5% 13%

Information Technology Nanotech/Materials

Alumni External

23%

Faculty Spinoff

Consulting Service

2% Number of Firms

44%

Student UI Staff

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STARTUPS ATTRACTING FUNDING Our incubating companies raise funds from VCs, angels, corporate partners, and SBIR funding. • $146 Million received while at UIRP • $407 Million in capital raised in total by incubated companies $39,405,000 $60,565,000

$33,695,000

$47,450,000

$23,015,000 $32,345,000

$17,270,000

$8,350,000 $5,800,000 $5,600,000

$6,775,000

$6,000,000 $5,550,000

*Includes funding to startups while they were located in the Research Park, does not include consecutive rounds if they later moved out of Research Park.

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STARTUPS ATTRACTING FUNDING UIRP received over $28 Million from 2004 through 2010 UIRP received 11% of amounts awarded in Illinois in 2010 New EDA University Center includes funding for SBIR consultant for startups TOTAL SBIR/STTR AWARDS IN RESEARCH PARK $7,000,000 $6,176,309.00 $6,000,000

$5,469,374.00 $4,793,757.81

$5,000,000 $4,000,000

$3,631,024.39 $3,268,738.00 $2,790,223.00

$3,000,000 $2,008,570.02

$2,000,000 $1,000,000 $0

2004

2005

2006

2007

2008

2009

2010 6

ENTREPRENEURS-IN-RESIDENCE (EIR) EIRs are local-experienced tech entrepreneurs that have commercialized technology, hired by the Research Park to consult startups – The EIRs provide advice on business development, legal issues, attracting investment, revenue creation, and engagements with industrial clients. – Monthly entrepreneur training workshops on business topics – Paid for by the Research Park to help UI entrepreneurs access free consulting

Chad Steining Mentor Management & CEO of Kypha in St. Louis, UI alum, PhD

Tim Hoerr Serra Ventures & Cbana, Phi Optics, Gameday Sports, DxP, iCyt, CPA, Valuation expert

Dennis Beard Serra Ventures & Open Prairie Ventures CFO, UI Business Adj. Faculty - Finance

Jed Taylor JLT Consulting, TEC and formerly with Pattern Insight , UI Siebel Scholar

Alan Singleton Singleton Law Firm, specializes in tech startups and IP 7

ENTREPRENEUR-IN-RESIDENCE ASSISTANCE SBIR, 7%

Consulted 131 entrepreneurs since August 2010 in EIR Program EIRs: August 2010 to March 2012 Number of Unique Number of Companies Consultations

Company Type Biotech

31

69

Consulting/ Service

9

24

Green Technology

2

6

Info Technology

50

108

Materials Engineering

19

68

Unknown

20

23

131

298

Total

Product, 4%

Business Plan, 15%

Presentatio n Prep, 10%

Commercial potential for research, 12%

Partners, 6%

General Startup Assistance, 23%

Contracts, 8%

Funding, 15%

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I-START PROGRAM I-Start Entrepreneur Services Service Types Scope of Services

Legal Services •

•

• • •

• • •

Initial Company Formation, bylaws, application for FEIN (filing fees paid by entrepreneur) Stockholder agreements and certificates Stock option plan Employment Agreement Non disclosure agreements

Business Planning • • • •

•

Write Business Plan with inventor input Market Research Financial Projections Recommendation on sources of capital Assistance with hiring and incorporation decisions

SBIR Assistance •

• • • • • •

Finding solicitation and agency fit SBIR process guidance Draft budget Writing assistance Help with letters of support Project Management Registrations and Submission

Financial and Payroll Services • Payroll admin • Quarterly Financial Statements • Assistance with Quickbooks setup for the business

Student Shared Services Center • Market research • Presentation assistance • Initial template website • Logo assistance • Social media, adwords • IT/Computer system setup (up to 100 hours of student work)

Competitive awards for 50-90% of service provider costs through EW Focused on faculty entrepreneurs licensing technology from the University of Illinois, but open to all UI entrepreneurs for application. 14 initial clients accepted, including 4 graduate student startups

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EW MOBILE APP CENTER  New iOS professional development course  Evening course for 8 weeks, offering again in summer  Hands on Basics iOS programming, topics covered include Development tools, iOS Anatomy, Objective-C, Memory Management, ARC, Foundation Classes, iOS Design Patterns, View Controllers, Views, Storyboards, Animations.

 AppIncubate program design prototype of an app that will capture the initial version's work flow  Co-location space for mobile developers in EnterpriseWorks  Mobile Expert onsite 2 days a week for consulting and mobile development intern to help startups 10

EVENTS FOR TECH FIRMS The Research Park hosts weekly events for the employees and firms in the community.     

S o f t war e U s e r G ro u p M e et i n g s Tec h C E O Rou n d t a b l e s w i t h s p e a ker s Startup Café with successful entrepreneurs Monthly entrepreneur educational seminar s Monthly social events, Fire @ Five, Ping Pong, soccer, swing dancing

     

Women in Technology Forum Summer concer ts with Kranner t C h a r i t a b l e eve n t s B i ote c h g ro u p Tec h C o c k t a i l tec h d e m o n s t r a t i o n s A n n u a l C a r e e r Fai r, s t u d e n t awa r d s

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RANTOUL BUSINESS INCUBATOR E N T E R P R I S E WO R K S U N I V E R S I T Y C E N T E R

 New Incubator located in Rantoul at the former Chanute Air Force Base provides free space for entrepreneurs  Onsite business consulting from the Small Business Development Center  Onsite FastTrac entrepreneur course offered through Parkland College starting in Fall 2012  Manufacturing/Shell Lab space access with loading doors  Affiliate status with EnterpriseWorks to utilize resources of our team  Use of Shared Services student program with Parkland and UIUC students

FUNDING RESOURCES

ILLINOISVENTURES, L.L.C Seed and early stage, research-based, investment IllinoisVENTURES IETF I Size IETF II Size Total Current Assets Management Team

$11 million $27 million $20 million $58 million

Plus companies have attracted more than $450 million in outside capital = 12:1 leverage

John Banta John Regan Rob Schultz Kathryn Hyer

CEO, Managing Director Managing Director Managing Director Senior Director

Stage

Seed & early-stage venture capital

Focus

Research-derived investment Start companies around licensed IP, technical founders Establish initial cap-structure, strategy, teams

Industries

Geography

IT, physical and life sciences, cleantech Inter-domain “seams” IL and the Midwest

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# 1 regionally #19 nationally

The UI Board of Trustees created IllinoisVENTURES in 2002, to catalyze the creation and development of research-derived companies

EARLY STAGE INVESTING PATHWAY Business Model Execution

Value

Early Technology Execution • • • •

Hire CEO Product prototype Market introductions Early customer identification/JVs • Identify funding partner

Company Launch Source Idea •Unite markets, IP, PI •Validate market •Rough commercial path

• • • •

Founder role Secure license IP development Proof of concept

• • • •

Complete mgmt team Beta product Early customers Attract domain experienced VC

IllinoisVENTURES Funding IETF Funding

Time 15

URBANA CHAMPAIGN ANGEL NETWORK (U-CAN)  Local angel network with investors in early stage companies  Managed through the Champaign County Economic Development Corporation  Meets 3-4 times a year for investment pitches  Entrepreneurs submit investment deals through Gust (AngelSoft), must register  Receive 10 minutes for presentations

INVEST ILLINOIS VENTURE FUND (IIVF)  Total IIVF capital for investment = $20,000,000  Launched Oct 2011  Risk capital - Up to 25% or $1M of the round  Minimum investment round is $250,000

 Investments structured as convertible notes, follow terms of other investors.  Aim to execute intent within 30 days

CHAMPAIGN COUNT Y REGIONAL PLANNING COMMISSION  The Economic Development Division of the CCRPC is a resource for a variety of innovative federal, state and local business loan programs:  Community Development Assistance Program (CDAP) – Loans to stimulate growth, job creation, expansion and retention of businesses located within Champaign County but outside the cities of Champaign and Urbana  Community Services Block Grant (CSBG) – Similar to CDAP used primarily within the Champaign-Urbana metropolitan region  Can make equity investments vs. loans if committee approves  All programs are intended for small businesses that cannot fully access conventional lending sources.  All programs have the specific goal of Job Creation, priority is given to technology businesses  http://www.ccrpc.org/economic/businessloans.php  Contact: Kathy Lar son (217) 328-3313

LEGAL AND PATENT HELP

OFFICE OF TECHNOLOGY MANAGEMENT  The Office of Technology Management (OTM) is responsible for managing the intellectual property generated by research and educational activities at the University of Illinois at UrbanaChampaign.  OTM evaluates, protects, markets, and licenses IP developed on the University campus.  UI inventors make disclosures for OTM to evaluate for patenting

 The OTM tech managers have domain expertise and work with departments across campus to identify opportunities  Generous student ownership policy  Student Class Design Projects  Student Entrepreneurial Activities

 Guidance on thesis publication

PATENT CLINIC  Founded in 2008 as a joint effort of the TEC and Professor Joseph M. Barich of the College of Law (COL) at Illinois, the Patent Clinic allows law students the opportunity to draft patent applications for student inventors.  The Patent Clinic reviews the student innovations and, if an innovation is considered potentially patentable, drafts a patent application on the innovation at no cost to the student.

PRO BONO LEGAL HELP AT ENTERPRISEWORKS  Meyer Capel law firm in Champaign provides pro bono legal services at EnterpriseWorks every other Thursday.  The firm is the largest law firm in Champaign County, with 29 attorneys providing a wide range of legal services.  Jeff Davis has been a practicing attorney since 1996, his experience ranges from helping clients with start-up ventures to assisting clients with the purchase or sale of multi-million dollar businesses.

 Our clients will have up to 3 hours of pro bono service available through Meyer Capel office hours at EnterpriseWorks with one hour appointments at a time.  Scheduling is through EnterpriseWorks.  Entrepreneurs may also seek business advice and legal assistance through the EIR program from Alan Singleton.

BUSINESS COUNSELING AND MENTORING

SECOND SATURDAY BUSINESS REVIEW • Second Saturday is a group of local business people with a variety of back grounds who get together the 2nd Saturday of each month to review business plans and give feedback to star t-up companies (primarily high-tech) • Great opportunity to receive input on an investor pitch before actually facing venture capitalists and other potential partners.

• The group has been reviewing plans for over 10 years and in order to maintain the integrity of the group and confidentiality of the presentations, membership is by invitation only. • Meetings are held from 7:30 - 9:00 am at Singleton Law Firm, located in the Research Park

If you are interested in presenting at 2nd Saturday, contact: Liz Kellner, Singleton Law Firm [email protected] www.2ndsat.org

ILLINOIS LAUNCH  Illinois Launch, a new venture accelerator program in the College of Business at the University of Illinois, helps entrepreneurs develop their ideas into high-growth, sustainable businesses.  The program provides startups with access to curriculum, mentors, community, and an enormous network of alumni, investors, and successful entrepreneurs.

SMALL BUSINESS DEVELOPMENT CENTER  SBDCs provide assistance to new and existing small businesses. Services include:       

One-on-one business counseling and management assistance Assistance with the development of business plans Help with development of marketing plans Access to business financing programs Assistance with financial analysis and planning Access to business education and training opportunities Patent searches

 SBDC in Champaign has two free counselors:  Greg Gonda, experienced business consultant and CPA  Chirag Shah, patent research expertise, biotechnology

 Training in Constant Contact, QuickBooks

EAST CENTRAL ILLINOIS SCORE (ECI-SCORE) • ECI-SCORE is made up of experienced business owners and managers who volunteer their experience to help small business owners and potential business owners through workshops and free confidential counseling • Monthly workshops on small business basics: • Starting a Small Business • Writing a Business Plan • How to Finance a Business

• Check out their website for useful small business templates, business planning web-tools, and sample business plans by industr y sector http://www.eciscore.org/business_toolbox.html

BUSINESS AND INNOVATION COMPETITIONS

COZAD COMPETITION  V. Dale Cozad New Venture Competition: 82 student startups competed in 2012 for this award through a series of competitions with elevator pitches, written business plans, and oral presentations  The competition encourages the development of the entrepreneurial spirit through teamwork and competition.  Assistance is available in the form of mentors, workshops, and courses to guide teams through the phases of business plan creation.  Teams in the final round compete for an estimated $50,000 in cash, plus valuable in-kind prizes.

LEMELSON PRIZE  The Lemelson-MIT Illinois Student Prize, is a $30,000 competition administered by the TEC in the College of Engineering, awarded annually to a student who has created or improved a product or process, applied a technology in a new way, redesigned a system, or demonstrated remarkable inventiveness in other ways.  Students must be enrolled full-time at UIUC during the academic year in which the award will be presented.  Lots of press for winners

IDEA TO PRODUCT (I2P)  Pitch your product idea for the chance to compete for $10,000  Idea To Product (I2P) is a unique academic competition looking at ideas at their earliest stage.  I2P is not a business plan competition. I2P only requires a one-page submission, done according to a format, outlining an idea for a product (or service) and its market.

INNOVATION CELEBRATION  Annual Innovation Celebration in recognition of those individuals and organizations that have made significant contributions, taken risks, and provided leadership to ensure the continuing economic success of Champaign County.  Ten awards recognize individuals and organizations for innovation, creativity, and leadership  Student Startup Award

COURSES AND TRAINING

FASTTRAC CLASS: STARTUP YOUR IDEA  I am developing a technology business and need help navigating the factors that go in to starting a business like acquiring funding and intellectual property protection.  Determine market opportunities and business strategies and pursue them successfully;  Define your target customers;  Develop a solid marketing plan;  Learn to assess and build a top management team;  Calculate the funding needed at each stage of your business and discover the best ways to access it;  Learn the importance of protecting your intellectual property through licenses, patents, trademarks, and copyrights; and  Hone your elevator pitch and investor presentation.

 Certificate Course will be offered at EnterpriseWorks will offered beginning on 6/5/12 for 12 weeks, every Tuesday night from 6-8 pm. Cost is $100 for books.

TEC COURSES  Certificate courses: courses that feed into certificate programs in technology commercialization  Entrepreneurship courses: Developing Design Thinking, Lectures in Engineering Entrepreneurship, Tech Marketing  TE/ENG 360 - Lectures in Engineering Entrepreneurship, Professor Paul Magelli  Consider attending Prof. Magelli’s course, awesome speakers including many alumni that have been very successful

LIFE SCIENCES CERTIFICATE IN ENTREPRENEURSHIP AND MANAGEMENT  The Cer tificate in Entrepreneurship and Management is a program for entrepreneurially minded MDs, DVMs, and PhDs in the life sciences who are interested in understanding the business, economic, and legal issues in biotechnology ventures.  Students learn the traditional ins and outs of entrepreneurship, such as creating a business plan and managing intellectual proper ty, and also study topics specific to the life sciences, such as managing the FDA approval process and conducting clinical trials.  Work on technologies from UI as case studies

MECH ENG: RAPID PROTOT YPING LAB  The MechSE Rapid Prototyping Lab was made possible by a substantial gift of $750,000 by the Ford Motor Company in 1995.  The purpose of the MechSE RP Lab is to allow students access to current manufacturing technologies in their course work, independent projects, and research.  The RP Lab is equipped with a number of systems, including CNC milling and turning centers; a wire EDM machine; and three rapid prototyping systems.  https://www -s.mechse.uiuc.edu/ford_lab/