dreamers who do: update on entrepreneurship
TRANSCRIPT
Judith Cone, Vice Chancellor for Innovation, Entrepreneurship and Economic DevelopmentJuly 26, 2017
Dreamers Who Do: Update on Entrepreneurship
What do these three people have in common?
A CAROLINA STAR: DR. JOE DESIMONE + CARBON
Joe DeSimone, the Chancellor’s Eminent Professor of Chemistry
and co-founder of Carbon
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What does this mean for UNC-Chapel Hill?
1.5M 21M $68.7BTOPFACULTY STUDENTS RESEARCH
FACILITIES
IN RESEARCH
EXPENDITURES
Data Sources: Faculty (NCES, 2013); Students (NCES, 2016); Research Exp. (NSF HERD, 2015)
RESEARCH UNIVERSITIES: THE WORLD’S BRAIN TRUST
Are we ones who dream? Or are we ones who do?
FOR CAROLINA, A PIVOTAL QUESTION
innovationnoun | in·no·va·tion | i-nə-ˈvā-shən\
1 : Ideas that are unique, valuable and successfully implemented
2 : Creativity + value + execution
INNOVATION DEFINED
CAROLINA’S TO-DO LIST
INNOVATETogether. Innovate for all.CAROLINA
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CAROLINA’S INNOVATION STORY
With a special focus on urgent challenges,
innovations and innovators launched at Carolina,
consistently apply important ideas for a better word.
Be a place where innovators thrive.
VISION
MISSION
INNOVATION ROADMAP
At Carolina, we believe in the exponential power of
our innovation network.
UNC
KENAN INSTITUTE
CAROLINA CHALLENGE
CTR FOR E’IAL STUDIES
MINOR IN ENTREPRENEURSHIP
KICKSTART
BUSINESS SCHOOL
Pre-2010
INNOVATE CAROLINA NETWORK
KENAN INSTITUTE
CAROLINA CHALLENGE
CTR FOR E’IAL STUDIES
MINOR IN ENTREPRENEURSHIP
KICKSTART
BUSINESS SCHOOL
LAUNCH CHAPEL HILL
1789 VENTURE
ARTS ESHIP
CTR FOR SUSTAINABLE ENTERPRISE
UNC HEALTH INNOVATIONS
APPLIED PHYSICAL SCIENCE
SOCIAL WORK MIDDLE SPACE
DENTISTRY
UNC GLOBAL
NURSING
CAMPUS Y
REESE NEWS LAB
CHEMISTRY
INSTITUTE FOR ARTS & HUMANITIES
4D
CRVF
SCHOOL OF MEDIA & JOURNALISM
BLACKSTONE
ECONOMICS
LAW
EDUCATION
DIGITAL HUMANITIES
CAROLINA ANGEL
SCHOOL OF MEDICINE
Pre-2010 2015
PUBLIC HEALTH
COMPUTER SCIENCE
PHARMACY
ESHELMAN INSTITUTE
INNOVATE CAROLINA NETWORK
KENAN INSTITUTE
CAROLINA CHALLENGE
CTR FOR E’IAL STUDIES
MINOR IN ENTREPRENEURSHIP
KICKSTART
KFBS
1789 VENTURE
ARTS ESHIP
CTR FOR SUSTAINABLE ENTERPRISE
UNC HEALTH INNOVATIONS
APPLIED PHYSICAL SCIENCE
SOCIAL WORK MIDDLE SPACE
DENTISTRY
UNC GLOBAL
NURSING
CAMPUS Y
REESE NEWS LAB
CHEMISTRY
INSTITUTE FOR ARTS & HUMANITIES
4D
CRVF
SCHOOL OF MEDIA & JOURNALISM
BLACKSTONE
ECONOMICS
LAW
SCHOOL OF MEDICINE
EDUCATION
IEED
DIGITAL HUMANITIES
CAROLINA ANGEL
LAUNCH CHAPEL HILL
PUBLIC HEALTH
COMPUTER SCIENCE
PHARMACY
ESHELMAN INSTITUTE
INNOVATE CAROLINA NETWORKPre-2010 2015 Today
How do we help the dreamers who do?
Teach the entrepreneurial
mindset and skillset
NCGrowth Program at Kenan Institute of Private Enterprise
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ENTREPRENEUR STORY: NCGROWTH PROGRAM
CENTER FOR ENTREPRENEURIAL STUDIES
• Supports entrepreneurs through courses and many
forms of structured learning at Kenan-Flagler
Business School.
• Offers curricular and co-curricular offerings:
• Launch Chapel Hill accelerator
• The Adams Apprenticeship
• Competitions: Carolina Challenge + Venture
Capital Investment Competition
• Kenan-Flagler Private Equity Fund
OF UNDERGRAD
BUSINESS SCHOOL
CLASS OF 2017
76%OF UNDERGRAD
BUSINESS SCHOOL
CLASS OF 2016
73%
KENAN-FLAGLER BUSINESS SCHOOL:ENTREPRENEURSHIP COURSE ENROLLMENT
OF FULL-TIME MBA
STUDENTS IN
CLASS OF 2017
95%OF FULL-TIME MBA
STUDENTS IN
CLASS OF 2016
95%
KENAN-FLAGLER BUSINESS SCHOOL:ENTREPRENEURSHIP COURSE ENROLLMENT
124MBA STUDENTS
CONCENTRATED IN
ENTREPRENEURSHIP
SINCE 20152017
45STUDENTS
2016
36STUDENTS
2015
43STUDENTS
KENAN-FLAGLER BUSINESS SCHOOL:ENTREPRENEURSHIP COURSE ENROLLMENT
SHUFORD PROGRAM IN ENTREPRENEURSHIP
• Gift will transform entrepreneurship at UNC-Chapel Hill
• Shuford family: owners of fifth-generation North
Carolina company
• Meets the rising demand of students who want to
minor in entrepreneurship (College of Arts & Sciences)
• Creates up to 70 student internships at entrepreneurial
firms, doubling the current number
• Supports three additional entrepreneurs-in-residence
and up to four faculty fellows
$18M Gift Announcement: May 2017
SHUFORD PROGRAM IN ENTREPRENEURSHIP
40 O U T
O F
MAJORS OF STUDENTS IN
SHUFORD PROGRAM
70 UNC MAJORS
1,235STUDENTS
ENROLLED
SHUFORD PROGRAM
ENROLLMENTSINCE 2005
SHUFORD PROGRAM IN ENTREPRENEURSHIP
20
66 7160
79 81 75 77 8292
150
191 191
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
STUDENT ENROLLMENT
Take novel ideas to market
133%INCREASE
21
49
2007-11 2012-16
$12M
$20.8M
2007-11 2012-16
47%INCREASE
127
187
2007-11 2012-16
IP-BASED STARTUPS LICENSING REVENUEPATENTS ISSUED
73%INCREASE
Source: Association of University Technology Managers
COMMERCIALIZATION RISING
SNAPSHOT: UNC STARTUPS
EMPLOYEES IN NC
8,090 63,914EMPLOYEES TOTAL
(As of June 2017)
475306HQ IN NC TOTAL
358ACTIVE
$10B I L L I O N
ANNUAL REVENUE
(Snapshot: FY2016)
$12.5B I L L I O N
FUNDING RAISED
(SINCE 1958)
UNC STARTUPS
JOBS
(1958-June 2017)
UNC-Chapel Hill IP-Based Startups
99%
1%
Headquarters in NC Headquarters outside NC
STARTUPS: REVENUE
$10BILLION
ANNUAL REVENUEFY 2016
REVENUE BY LOCATION
306UNC STARTUPS
HEADQUARTERED IN NC COUNTIES
Mecklenburg (8)
New Hanover (2)
Carteret (1)
Beaufort (2)
Chatham (5)
Franklin (1)
Wake (52)
Guilford (2)
Durham (77)
Orange
(149)
Alamance (2)
Pitt (1)
Moore (1)
Forsyth (1)
Wilkes (1)
Caswell (1)
Mecklenburg
(25)
Beaufort
(6)Chatham
(10)
Wake
(583)
Durham
(6,305*)
Orange
(1106)
Alamance
(5)
Pitt
(25)
Caswell (2)
*Includes multinationals Quintiles and RTI
8,090PEOPLE EMPLOYED
IN NC BY UNC STARTUPS
$9.9BIN ANNUAL REVENUE
EARNED BY UNC STARTUPS IN NC
Mecklenburg
($3.2M)
Beaufort
($54K)Chatham
($535K)
Wake
($105M)
Durham
($9.5B*)
Orange
($303M)
Alamance
($290K)
Pitt
($33M)
Caswell
($100K)
*Includes multinationals Quintiles and RTI
STARTUP STORY: DR. NORMAN SHARPLESS + G1 THERAPEUTICS
• Clinical-stage oncology company in Research
Triangle Park with ties to UNC Lineberger
Comprehensive Cancer Center
• Novel therapies to protect patients from toxic effects
of chemotherapy
June 2017: UNC Spinout Company Generates
More Than $108M in Stock Offering
• Based on discoveries by UNC Lineberger Director
Norman Sharpless
• Founded in 2008 with support from KickStart
Venture Services, a UNC startup program
Uncover novel therapies
for cystic fibrosis.
Find less toxic ways to
treat cancer patients.Develop cancer drugs to
inhibit tumor growth.
Use a liquid biopsy to diagnose
diseases via a simple blood test.
Fight the battle against
antibiotic-resistant bacteria..Create the first drug for bilateral
lung transplant patients.
COMMERCIAL STARTUPS: HUMAN IMPACT
Reduce food waste
and landfill deposits.
Lower the risk of school
dropout and delinquency.
Remove water-borne pathogens
to make drinking water safe.Provide music lessons to children
in underserved communities.
Provide better health care to rural
and underserved communities.
Bring produce from
family farms to consumers.
SOCIAL STARTUPS: HUMAN IMPACT
Local Nonprofit: Musical Empowerment
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HUMAN IMPACT STORY: MUSICAL EMPOWERMENT
KICKSTART
VENTURE SERVICES
$257M IN FUNDING RAISED
SINCE 2009
$1.9M IN AWARDS
GRANTED TO…
59 IP-BASED
STARTUPS
1789
VENTURE LABS
110 STUDENT AND ALUM
STARTUPS SINCE 2014
40 CO-WORKING
SPACES
50 VENTURES CURRENTLY
BEING INCUBATED
INCUBATORS, ACCELERATORS AND SERVICES
CUBE SOCIAL
INNOVATION INCUBATOR
28 SOCIAL VENTURES
SINCE 2013
$1.7M IN FUNDING
RAISED
40,000+ LIVES
IMPROVED
BY THE NUMBERS
$15M IN FUNDING RAISED
SINCE 2013
63 COMPANY
ENGAGEMENTS
1,000+ JOBS
CREATED IN US
ACCELERATOR SPOTLIGHT
250+ JOBS
CREATED IN
ORANGE COUNTY
VENTURE HIGHLIGHTSCOMPANY GROWTH
$3,600,000
$7,600,000
2015 2016
$2,500,000
$7,000,000
2015 2016
FUNDING RAISED ANNUAL REVENUE
CREATE SPACES FOR
INNOVATION
POSITIVE PREDICTORS OF STARTUP PERFORMANCE
• Affordable space, short-term lease.
• Specialized equipment.• Access to mentors, investors,
employees.
WHY STARTUPS TURN TO INCUBATORS
• Strong/pervasive community ties.• Access to other technology
generators.• Skilled incubator manager.
• A variety of spaces
• Too few to meet demand
• In need of modernization
• Dispersed across campus (and off campus)
• Departmentally owned
• Hinder collaboration
• Innovation corridor with spaces on and off campus.
• Scaled to the Chapel Hill economy.
• Located in vibrant, mixed-use district in Chapel Hill.
• Attract talented people by providing a high-quality of life.
• Connect creativity, arts, sciences, wet and dry labs, social
innovation, maker movement, startups and industry.
• Be in close proximity to one another.
• Engage neighboring communities.
• Support companies at every stage of growth.
Current Innovation Spaces Future Innovation Spaces
INNOVATION SPACES: CURRENT VS. FUTURE
Wet Lab Co-working/Dry Lab Support Maker Shared
Benches, fume hoods, sinks,
distilled water, gases.
Open and dedicated labs,
workstations
Variety of seating options, no
assigned desks
General hoteling,
entrepreneurs-in-residence
Teams completing a
prescribed program
University staff offices and
work stations
Conference rooms, huddle
rooms and collaboration spaces
Classroom space
Equipment space:
fabrication or machine shop, etc.
Teaching space
Design lab: mix of dedicated &
shared project space
Event space
Conference suite and classrooms
Café
TYPES OF INNOVATION SPACES
MAKERSPACE STORY: HELPING HANDS PROJECT
Watch Video
IEED Office Space
On Church St.
Office Space at
Franklin/Henderson
Business Incubator
on Franklin
Business Accelerator
on Rosemary
Future Wet Lab
(Former Aveda Space)
Office Space at
Franklin/Henderson
DOWNTOWN INNOVATION DISTRICT
Carolina Angel Network
MAP: DOWNTOWN INNOVATION DISTRICT
Launch Chapel Hill
Vice Chancellor for Innovation,
Entrepreneurship and Econ Dev
KickStart Venture Labs
(future wet lab)
1789 Venture Lab
- KickStart Venture Services
- Carolina Angel Network
- Blackstone Entrepreneurs Network
CUBE Social
Innovation Incubator
POSITIVE PREDICTORS OF STARTUP PERFORMANCE
• Affordable space, short-term lease.
• Specialized equipment.• Access to mentors, investors,
employees.
WHY STARTUPS TURN TO INCUBATORS
• Vice Chancellor’s Office of Innovation,
Entrepreneurship and Economic Development
• Innovation District:
• Next door: Future wet lab and Google
• Within two blocks: Launch Chapel Hill, 1789
Venture lab, Carolina Angel Network and
Blackstone
• Staff: commercialization team, strategic
partnerships, faculty outreach, innovation
programs
Moving July/August 2017
UPDATE: NEW IEED OFFICE ON CHURCH STREET
109 Church St.
Former Pharmacy Association Building between Franklin St. and Rosemary St.
Provide flexibility to grow from one
bench to enclosed lab and beyond.
Promote the development of
more wet lab space in Chapel
Hill and Orange County.
Commercialize cutting-edge,
high-impact UNC research. Improve faculty recruitment
and retention.
Improve economic development. Enable more successful translation.Benches, labs, work areas and offices.
Keep startup dollars and jobs
in the area.
For Faculty For IndustryFor Local Community
Move companies closer to funding
beyond grants and seed capital.
UPDATE: FIRST DEDICATED WET LAB IN CHAPEL HILL
200 W. Franklin St.
10K SF
ZERO
Of the 59 companies incubated by KickStart Venture Services,
how many with >$1M in funding stayed on campus (FUA), in Chapel Hill or in Orange County?
OPPORTUNITY: KEEP LIFE SCIENCES STARTUPS LOCAL
48
WHERE ARE UNC LIFE SCIENCES COMPANIES GOING?
• Operating in on-campus lab (faculty usage agreement).
• Disruptive technology to discover small molecules
targeting 3D structures of RNA.
• Huntington’s Disease (neurodegeneration w/ no cure).
• Over $1M non-dilutive funding.
• Has potential to be the next G1.
Kevin WeeksFounder, Kenan Distinguished
Professor, Department of
Chemistry
Katie WarnerCo-Founder, UNC Post-Doc
Student, Department of
Chemistry
CURRENTLY INCUBATING ON CAMPUS
• Growing company will need larger wet lab.
• Without wet lab, would be forced to leave Chapel Hill.
• Costly to faculty to move off campus.
• Costly to University to lose faculty time (to/from RTP).
• Costly to Chapel Hill/Orange County to lose econ. dev.
• Costly to lose continuity/collaboration among Chapel Hill startups.
CAN THEY GROW IN CHAPEL HILL?
CASE STUDY: RIBOMETRIX
PARTNER WITH THE
INVESTOR COMMUNITY
SINCE NOV. 2016
104
3 NEW IN
PRIOR MONTH
NETWORK
MEMBERS
IN TOTAL INVESTMENTS
$1MILLIONCOMPANIES
FUNDED
5
2 NEW IN
PRIOR MONTH
CAROLINA ANGEL NETWORK: SNAPSHOT
5COMPANIES
FUNDED
RALEIGH
1COMPANY
RTP
1COMPANY
DURHAM
3COMPANIES
CAROLINA ANGEL NETWORK: COMPANIES FUNDED
GILLINGS INNOVATION LABS
TRIANGLE VENTURE ALLIANCE
$20M
$4M ALLOCATED
TO TVA DEALS
VC MULTIPLIER FUND
APPROVED BY
STATE OF NC
TRIANGLE VENTURE ALLIANCE
GILLINGS INNOVATION LABS
• First TVA Investment: Durham-based medical
device company focused on the resuscitation of
critically ill patients
• Three-way deal with UNC-Chapel Hill,
Duke and NC State
• Deal worth $700K total and received significant
press coverage
TRIANGLE VENTURE ALLIANCE: 410 MEDICAL INVESTMENT
CAROLINA RESEARCH VENTURES FUND
$10MILLION FUND
STARTED IN 2015
3COMPANY
INVESTMENTS
$115MIN COMPANY
FUNDING RAISED
Newsletterinnovate.unc.edu
oced.unc.edu
GET INNOVATIVE. GET INVOLVED.
THANK YOU
Contact
Judith Cone
Vice Chancellor for Innovation, Entrepreneurship
and Economic Development
816.305.1073 | [email protected]