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

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

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

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

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

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

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

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)

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

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.

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.

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.

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.

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

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

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

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

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