2015 Innovative Universities: Culture and Ecosystems A Framework for Accelerating New Venture Development James E. Spencer, Jr. | Executive Director Rensselaer Technology Park, Real Estate and New Venture Development 2015

Managing the Chaos of Entrepreneurship 1

2015 2

1.CULTIVATE a mindset for innovation and entrepreneurship 2.CREATE something novel, useful and non-obvious 1.ASSESS the viability of the Invention as the basis for a business 2.PREPARE the business foundation by identifying critical resources needed 3.LAUNCH the business 4.MANAGE growth 5.PROSPER for impact! Take aways: Streamlining the Commercialization Process

2015 Stage 1: CULTIVATE Inspiration PIVOT CRITERIA 1. Entrepreneurship Mindset 2. Curriculum 1. Competitions 1. Supporters 1. Co-Curricular 1. Events 1. Tools/Technology Desire to Solve a Problem Desire to Improve Quality of Life Entrepreneurship Courses Design Courses Business Technical Mentors & Advisors Service Providers Clubs & Groups Entrepreneurship Programs Education & Training Networking Information Resources Business Software Apps. SUCCESS ATTRIBUTES PERFORMANCE Annual Fund, Sponsorships, Grants, Contracts, Research Agreements Funding Sources RESOURCES Staff, Faculty & Student E*Ship & Innovation Champions Key People Campus Innovation & E*ship Courses and Activities IP Policy Familiarization IP Institute Programs PROGRAMS & PLATFORMS 4

2015 Stage 2: CREATE Valuable Inventions 1.Industrial Product 1.Industrial Process 1.Software/Internet 1.Consumer Product 1.Consumer Service 1.Business to Business Service 2.Biotech/Medical Hardware Industrial Software Algorithm/Software Process Control Software Application Software as a Service/Platform Consumable Device/System Professional Retail/Lifestyle Professional Corporate Pharmacological/Treatments Medical Devices Students & Faculty Researchers and Entrepreneurs Invention & Design Courses, Labs and Projects Research Agreements & Disclosures 1.No. of students in PDI program and Inventor’s Studio classes. 2.No. of student patent disclosures 3.No. of faculty patent disclosures M ETRICS Annual Fund, Sponsorships, Grants, Contracts, Research Agreements Funding Sources IP Institute Programs Key People PIVOT CRITERIASUCCESS ATTRIBUTES PERFORMANCE RESOURCES PROGRAMS & PLATFORMS 5

2015 Stage 3: ASSESS the Opportunity 1. Product or Process Idea 1. Market 1. Customers 2. Competitors 1. Marketing & Sales 1. Revenue Model 1. Funding What is it (Proof-of-Concept)? What makes it unique (IP)? Define the specific Market? How big is it (units + dollars)? Who will buy it? Why? How do they buy? What/who are the competitors? How do they stack up? Why is it attractive to buyers How will you reach them? How will you make money? How long will it take? How much money is needed? What type of money is it? Coaches, Mentors, Entrepreneurs in Residence & Professional Advisors Severino Center for Technological Entrepreneurship Student Disclosures & IP Waivers 1.No. of student projects with commercialization potential 2.No. of student Foundry Participants 3.No. of student prototype grants M ETRICS Funding Sources IP Institute Programs Key People Personal Savings & Credit – Family – Friends – Grants – CrowdFunding – Pre-Sale Deposits PIVOT CRITERIASUCCESS ATTRIBUTES PROGRAMS & PLATFORMS PERFORMANCE RESOURCES 6

2015 Stage 4: PREPARE the Business Foundation 1. Key People 2. Intellectual Capital 3. Bootstrapping 1. Customer Financing 1. Equity Capital 1. Debt Capital 2. Other Funding Sources Startup Team Boards and Advisors Competitive Advantage Trade/Process Secrets Personal Savings & Credit Family & Friends Crowdfunding Progress Payments Angel Investors Venture Capital Bank Loans Receivables Factoring Grants and Gifts EDA Incentive Programs Personal Network and Financial Professionals Rensselaer Emerging Ventures Ecosystem Accelerator Lab (REVEAL) Opportunity IP Screening 1.No. of active, registered Mentors. 2.No. & type of REVEAL Cohorts No. of RPI IP Licenses to Startups 3.No. and value of prototype grants M ETRICS Funding Sources IP Institute Programs Key People Personal Savings & Credit – Family – Friends – Grants – CrowdFunding – Pre-Sale Deposits PIVOT CRITERIASUCCESS ATTRIBUTES PERFORMANCE RESOURCES PROGRAMS & PLATFORMS 7

2015 Stage 5: LAUNCH the Business 1.Business Planning 2.Human Resources 3.Intellectual Property 4.Prototyping 5.Business Organization 1.Risk Mitigation 1.Key Business Systems Refined Business Model Investor-Friendly B-Plan & Pitch Management & Administrative Technical, Sales & Operations IP Strategy IP Protection Products Services Legal Structure HR-Management Team Financial (Insurance) Regulatory & Public Policy Accounting & Cash Control Information Technology Prototyping, Legal, HR, Accounting, Insurance & IT Rensselaer Emerging Ventures Ecosystem Accelerator Lab (REVEAL) Rensselaer Owned IP Protection 1.No. of Student Startups Created 2.No. of Faculty Startups Created 3.No. of transactions and total amount of capital raised M ETRICS Funding Sources IP Institute Programs Key People Personal Savings & Credit – Family – Friends – Grants – CrowdFunding – Pre-Sale Deposits PIVOT CRITERIASUCCESS ATTRIBUTES PERFORMANCE RESOURCES PROGRAMS & PLATFORMS 8

2015 Stage 6: MANAGE Growth 1. Finance & Accounting 2. Product/Service Development 3. Marketing 1. Sales & Customer Service 1. Operations 2. Capital Assets 1. Strategy & Optimization Working Capital Cash Flow Management Features & Performance Design & Development Marketing Strategy & Plan Media and Public Relations Sales Strategy & Plan Customer Rel. & Tech Support Manufacturing & Production Management & Administration Facilities & Equipment Real Estate Performance Evaluation Continuous Improvement Mentors, Marketing, Sales, Quality, Manufacturing, Customer Service Emerging Ventures Ecosystem (EVE) Venture Development Rensselaer Owned IP Licensing 1.No. of active, Clients & Mentors. 2.No. of active Advisory Boards 3.Annual Client Sales Revenues 4.Estimated Client Portfolio Valuation M ETRICS Funding Sources IP Institute Programs Key People New Venture Development PIVOT CRITERIASUCCESS ATTRIBUTES PERFORMANCE RESOURCES PROGRAMS & PLATFORMS 9

2015 Stage 7: PROSPER with Impact! 1. Customer Impact 1. Owner Impact 1. Employee Impact 1. Supplier Impact 2. Institutional Impact 1. “Communiversity” Impact 2. Global Impact A Problem Solved Well Lifestyle/Process Improved Success – Wealth Creation Fulfillment – Happiness Job Satisfaction/Income Personal/Career Growth Consistent Business Fair Payment Terms Increased Prominence/Prestige Increased Budget Support Corporate Stewardship Better Alumni/ae Engagement Global Challenges Addressed Sustainable Growth Promoted RPI & Venture Stakeholders, Wealth Mgmt., Philanthropy & Outreach Rensselaer Technology Park IP Licensing Portfolio & Income 1.No. and total amount of E*Ship related Endowed Fund Gifts 2.No. and total amount of Expendable Fund Gifts 3.No. Alumni Reengagements M ETRICS Funding Sources IP Institute Programs Key People PIVOT CRITERIASUCCESS ATTRIBUTES PERFORMANCE RESOURCES PROGRAMS & PLATFORMS 10

2015 Take aways: Accelerating New Venture Development 1.Map the Innovation Ecosystem – Programs, Platforms and Partnerships – Resources: People and Funding Sources 2.Define Explicit Attributes, Pivot Criteria and Anti-Pivot Warning Signs for each Stage 3.Identify and Close Programmatic Gaps 4.Optimize New Venture Creation & Growth and Track Performance 11

2015 Thank you! James Spencer |