Introduction to University Tech Transfer Fall Columbia Technology Ventures

1 What Is Academic Tech Transfer? Academic research Practical applications Benefit society on a local, national and global basis

2 Beware the Valley of Death “Somewhere between invention and commercialization, there’s a desolate place where new technologies go to die alone. It’s called the Valley of Death, and it’s littered with the decaying corpses of technologies that never get to realize their potential. Too many technologies will be left to rot on the lonely, dusty road.”

3 What is “The Valley of Death” Commercial value Government & Foundation Grants Industry & VC Funding Early Feasibility Studies Basic Research Technical Validation & Prototyping Product Development, Marketing, and Sales Early Market Testing The Valley

4 Pre-1980 Early-stage research innovations belonged to federal agencies However, government not motivated to actively commercialize –Only 5% of patents ever commercialized 1 Result: very few products, jobs or other public benefits History of Technology Transfer Bayh-Dole Act (1980) gave universities right and obligation to patent and commercialize federally-funded inventions Most universities broadened policies to include all inventions made with university resources Since 1980, rapid adoption among U.S. universities 1: Ashley Stevens, New England Journal of Medicine, Feb 2011

5 Increasing Focus by Industry on Patenting

6 300% Increase in Overall Patent Applications Since 1990 USPTO Activity,

7 US Tech Transfer Productivity “By The Numbers”: Cumulative Inputs and Outputs, ~$695B in Research funding Source: AUTM Licensing Surveys (FY91- FY11) ~165,000 patent applications ~59,000 patents awarded 57% 36% ~287,000 invention disclosures $2.4M / disclosure 48,064 active license & options, 7,495 start-ups, 130+ new drugs & devices, 300,000+ new jobs 17%

8 But the End of One Process is Just the Beginning of Another Only 1 in 6 inventions ever gets licensed Roughly 1 in 100 pharma compounds gets approved Roughly 1 in 10 venture investments is a significant hit University’s FunnelIndustry / VC’s Funnel Successful product on the market

9 Commercial Success is Not Easy Source: AUTM 2011Survey Data Columbia

10 Who Else Does Well, Commercially? (FY2011) Name of Institution License Income ($M) Research Expenditures ($M) Invention Disclosures Northwestern$192$ Univ. of California System$182$5, Columbia$146$ New York Univ.$142$ Princeton$115$19384 MIT$76$1, U Washington$67$ Stanford$67$806*504 University of Texas System$65$2, UW-Madison/WARF$58$1, Source: AUTM 2011 data except * AUTM 2010 data

11 Inventions Often Take Years to Get Licensed: Only ~50% of Deals Done by Year 3, only 70% by Year 5 # of licenses within elapsed year Cumulative % of deals done by year Source: Review of elapsed time from invention submission to executed license, for all 580 of Columbia’s executed licenses from 1982 until 2011 (29 years)

12 Elapsed Time from Invention to License Relatively Constant Only Slight Variation by Health Science vs. Phys Sci; Exclusive vs. Non-Exclusive Source: Review of elapsed time from invention submission to executed license, for all 580 of Columbia’s executed licenses from 1982 until 2011 (29 years) All Licenses Physical Sciences only Health Sciences only All Licenses Exclusive licenses only Non-ex licenses only

13 Columbia’s Experience Mirrors that of Other Institutions National Cancer Institute’s Licenses # of Years from Patent Filing to License (1995 – 2009)

14 “Blockbusters” Drive Most of the Revenue, But are Rare % of active licenses Less than 1% of licenses generate > $1M / year Source: AUTM Licensing Survey (FY04) (1)

15 And “Big Winners” Take Many Years To Develop... And Aren’t Always Obvious at the Time Columbia’s Four Biggest Revenue Producers (Revenue per Year)

16 CONFIDENTIAL Additionally, Patent Costs are Large and Incurred Early Source:Columbia University, Patent & Licensing Group

17 Columbia’s Tech Transfer Mission To facilitate the translation of academic research into practical applications, for the benefit of society on a local, national and global basis To support the research of Columbia faculty by generating funding for the University and facilitating partnerships with industry where appropriate To educate and serve as a resource for the Columbia community on matters relating to entrepreneurship, intellectual property, and technology commercialization

18 Columbia Technology Ventures Key Metrics FY08 – FY13 +24% vs % vs % vs. 2008

19 Columbia Technology Ventures Annual Activity Metrics Columbia Technology Ventures ~350 new inventions from University research ~70 licenses & options ~15 start-up companies ~$140M in gross IP revenues

20 Wait, Does the University Own Student Inventions?

21 Good Start… But Lots More to Do! ~400 technologies are currently licensed But ~1400 technologies are still available! Source: CTV database, Fall 2013

22 The Path to The Deal Research discovery Invention report filed Patent prosecution Marketing License negotiation Patentability analysis Commercial analysis Prioritization Post-contract compliance

23 Products Using Columbia Technology Arrow Catheter DISCOVERY STUDIO

24 Where Does the Money Go? University Policy On Distribution of License Revenues Gross Revenue First $125K Gross Revenues Over $125K Note: Certain caps and deductions may apply. Please refer to Appendix D of the Faculty Handbook for details.

25 Many Different Levers to Customize Deal Structure Sample Deal A Sample Deal B Remember, IP licensing is a “repeated game” … so treat people as you will want them to treat you next time!

26 Columbia’s License Boilerplate Has Evolved Over Time ~18 pages long Multiple versions for different situations Combination of legal and business issues

Startups Spun Out of Columbia in 20 Years Of those, 90+ still active, 40+ VC-backed, 9 gone public, 18 acquired System Management ARTS (SMARTS) Health Analytics Communications Cybersecurity & Corporate Computing Cleantech Media & Fashion Pharma & Devices

28 Many Resources Available! Columbia Departments Columbia Tech Ventures Columbia Business School Columbia Engineering Center for Advanced Technology Columbia Journalism Student & Alumni Columbia Venture Community Application Development Initiative

29 # of Columbia Start-ups Launched Involving CTV

30 Thank Columbia Technology Ventures