Alto Douro Incubator (ADI) Raquel Sa: UTEN Austin Internship, Feb 2010 Universidade de Trás-os-Montes e Alto Douro

Universidade de Trás-os-Montes e Alto Douro Job & Wealth Creation Community needs National & International Market realities TalentTechnologyCapitalKnow-how BusinessGov’t Academic The Alto Douro Regional Model

Universidade de Trás-os-Montes e Alto Douro NEW JOBS Investments University

Universidade de Trás-os-Montes e Alto Douro 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

Universidade de Trás-os-Montes e Alto Douro Spin-Out Companies and the 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 P Application of R&D for firm: Diversification Expansion New formations R&D Funding Government University Corporate Incubator Role

Universidade de Trás-os-Montes e Alto Douro Provide access to national/ international markets and resources Benefits of Alto Duro Incubator Tenant Firms Enhance credibility Provide access to local business networks Shorten learning curve

Universidade de Trás-os-Montes e Alto Douro 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”

Universidade de Trás-os-Montes e Alto Douro ADI ( non-profit/profit ) Key Components of the Alto Douro Incubator Entrepreneur’s Technology Incubator Affiliation Administration Know-How Networks Support Systems Tenant CompaniesTenant Companies Faster to market & fast growth Economic Development Job Creation Profits Industrial Competitiveness Facilities Capital. Private University Gov’t International Branding Training & Education Viable Companies

Universidade de Trás-os-Montes e Alto Douro 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

Universidade de Trás-os-Montes e Alto Douro Incubator Tenant Services Infrastructure Services Office FacilitiesFurnitureBusiness MachinesBuilding Security Strategic Services Business Plan Improvement, etc. Mentors & Advisors Key Business Strategies Dev. IP and/or Product Development Operational Services Financial Management Human Resource Management Marketing & Public Relations Professional Service Providers

Universidade de Trás-os-Montes e Alto Douro Community Incubator Services To Universities Provide Lab for Business Faculty Provide Interns Opportunities Catalyze Entrepreneurial Ed Increase Regional Ent’l Awareness To Local Businesses Provide Resources for Bus. Dev. Increase local ent’l awareness Provide Sector Specific Advice Increase local networks To Local Investors Establish Capital Network Assist Companies create best pitch Advise Companies before / after $ Accelerate Company Success

Universidade de Trás-os-Montes e Alto Douro 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

Universidade de Trás-os-Montes e Alto Douro The ADI Commercialization Value Chain Innovate Productize Engage Market Grow Capitalize Research Investors Alto Duro Incubator Technology Transfer Office University

Universidade de Trás-os-Montes e Alto Douro ADI within the UTAD Hierarchy (Raquel please review & change as needed Office of the Rector Research Faculty Office of Technology Transfer Business Faculty ADI Incubator The University Commercial Sector

Universidade de Trás-os-Montes e Alto Douro Incubation Process at ADI Screen Application Vet Internally Vet Externally Set Milestones Technology People Market Review Admit into ADI Graduate from ATI Up to 3 years or: 1)When a major investment funding is obtained or 2)When significant cash from operations are achieved Company pays ADI an annual membership fee Company donates equity to UTAD

Universidade de Trás-os-Montes e Alto Douro 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

Universidade de Trás-os-Montes e Alto Douro The Value of a Business Incubator to Tenants Tenant Firms Increases Credibility Shortens learning curve Increases access to markets Increases access to resources Increases access to business networks Graduating Firms Accelerated Firm Growth

Universidade de Trás-os-Montes e Alto Douro 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

Universidade de Trás-os-Montes e Alto Douro 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

Universidade de Trás-os-Montes e Alto Douro ADI IT/Software Wireless Digital Media Nano-Bio Other… Clean Energy ADI: Potential Hi Tech Sectors

Universidade de Trás-os-Montes e Alto Douro Ten Success Factors Concise program milestones with clear policies and procedures In-kind professional support Community support Entrepreneurial networks: regional, national, international Entrepreneurial education Perception of success Selection process for tenants Tie to a university On-site learning and leveraging of resources Access to financing and capitalization ADI

Universidade de Trás-os-Montes e Alto Douro 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

Universidade de Trás-os-Montes e Alto Douro Critical Success Factors Advisory Board Academic Business Government Leaders/visionaries/champions The Director Nurturing/disciplined Networking skills Resourceful/adaptable/political Business experience

Universidade de Trás-os-Montes e Alto Douro An Entrepreneurial Culture Bootstrapping mentality Leverage/scrounge resources Hard work/long hours Community buy-in & support Resources Tangibles Intangibles = Know-how & Networks (MOST IMPORTANT) Context/Culture: Community Support Critical Success Factors (continued)

Universidade de Trás-os-Montes e Alto Douro Environment and Culture 1. Successful commercialization environment requires regional support and know-how 2. An entrepreneurial culture 3. Tenant company entrepreneurial and professional training 4. Internally cooperative and externally competitive 5. “Open organization” – links to academia, government, business 6. An environment of continuous learning for commercialization-both good & bad lessons learned

Universidade de Trás-os-Montes e Alto Douro Incubator Start-up Task List 1.Recruit a team of advisors 2.Recruit an incubator Director 3.Establish Company Selection/Exit Processes 4.Establish Physical Facilities 5.Recruit network of Service Providers 6.Develop Web site 7.Recruit Tenant Companies

Universidade de Trás-os-Montes e Alto Douro ADI Goals & Metrics Commercialize Science and Technology for wealth and job creation R&D consortia, UTAD, firms, start-ups Help 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

Universidade de Trás-os-Montes e Alto Douro Academic 1. Develop technology entrepreneurship and management curriculum 2. Successful placement of students 3. Experimental learning 4. Research 5. Royalty and license fees Metrics for Success

Universidade de Trás-os-Montes e Alto Douro Establish Incubator Facilities An 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.

Universidade de Trás-os-Montes e Alto Douro 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

Universidade de Trás-os-Montes e Alto Douro 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.