Missouri EPSCoR

Commercialization

Keith Gary, PhD

11 June 2015

Technology Transfer

Technology transfer is the process of transferring

scientific findings from one organization to another for

the purpose of further development and

commercialization. The process typically includes:

• Identifying new technologies

• Protecting technologies, e.g. patents and copyrights

• Forming development and commercialization

strategies such as marketing and licensing to existing

private sector companies or creating new startup

companies based on the technology

Why Do Technology Transfer?

• Recognition for discoveries made at the institution

• Compliance with federal regulations

• Attraction and retention of talented faculty

• Local economic development

• Attraction of corporate research support

• Licensing revenue to support further research and

education

National Impact

Source: AUTM U.S. Licensing Activity Survey Highlights FY2013. Source: BIO: The Economic Contribution of University/Nonprofit

Inventions in the United States: 1996-2010; June 20, 2012

Source: The Role of Public Sector Research in the Discovery of

Drugs and Vaccines, NEJM , February 10, 2011

Project Generated

Technologies, Curricula

MO EPSCoR Commercialization Group

Technology

Assessment

Market

Assessment

Company

Organization

Assessment

Capital

Formation

Technology

Hardening

Mature

Technology

NewCO

License

Bundle

Partner

Existing Commercialization Partners

Value Proposition •Central regional point of contact for clients with capability of tracking/monitoring project progress

•Maximize efficiency of regional commercialization efforts, without establishing a bureaucratic structure

•Identify and share best practices at all functional levels

•Connect individual partners and speak with a unified voice, while maintaining our independence

Missouri EPSCoR Technology Transfer

Private sector

Sherri Brown Albrecht Kissel

VP - Science Strategy President and CEO

Monsanto Boehringer Ingelheim Vetmedica

Richard J. Flanigan, Jr. Margo Schoolfield

Senior Vice President University/Education Relations

Cerner Corporation Boeing

Kelly P. Gillespie Jeannie Fadler

Executive Director VP – Patient Care Services

Missouri Biotechnology Association St. Francis Health Center

Greg Miller JB Waggoner

VP of Engineering and Technology Managing Partner

Eagle Picher Inovatia Laboratories, LLC

Missouri EPSCoR Statewide Committee

Project Generated

Technologies, Curricula

MO EPSCoR Commercialization Group

Technology

Assessment

Market

Assessment

Company

Organization

Assessment

Capital

Formation

Technology

Hardening

Mature

Technology

NewCO

License

Bundle

Partner

Existing Commercialization Partners

Value Proposition •Central regional point of contact for clients with capability of tracking/monitoring project progress

•Maximize efficiency of regional commercialization efforts, without establishing a bureaucratic structure

•Identify and share best practices at all functional levels

•Connect individual partners and speak with a unified voice, while maintaining our independence

Missouri EPSCoR Technology Transfer

Digital Sandbox Mission & Objective

Idea Feasibility Prototype Commercialization

A unique, transferable, repeatable proof of concept program that significantly and

rapidly moves early stage entrepreneurs towards commercialization.

Objective to create at least 10 new companies that will a) achieve their

first follow-on funding or b) reach $1M in revenue by September 2014.

Innovative and new approach to connecting

corporate community to entrepreneurs

Cloud computing/storage lab, Executive mentor program,

TechStars Accelerator workdays, App promotion

KC Innovation events, Innovation Lab, Book-an-Expert

days, one-on-one consulting

DSB website development, connecting Sandbox

companies to large clients

Mobile e-commerce platform and data analytics test server

RareWire Mobile development platform and training

Co-working space, meeting/presentation facilities

Deep Experience Across Founding Team

• Nearly 50 years of combined entrepreneurial experience

• Unique combination of entrepreneurial start-up and Fortune

100 experience

• Extensive background working with very early-stage start-ups

• Diverse team that reaches all entrepreneurs in region

Founding Partners

Corporate: Sprint, Hallmark Cards, Cerner, VML, UMB Rarewire, Sparklab

Academic: University of Missouri-Kansas City, University of Kansas

Nonprofit: Enterprise Center of Johnson County, KC Area Life Sciences Institute,

Union Station, KCNext

Public: Missouri Technology Corporation, Mayor’s Bistate Innovation Team,

Economic Development Corporation of KC, U.S. Department of Commerce,

Program specifics

Open enrollment via

website

Submit Digital Sandbox Profile

Complete pitch

presentation to Evaluation

Team

Evaluation Team

Recommends project funding

Company submits specific

project for funding

Sandbox prepares

company for fund raising

Project approved, funded and

vendor contracted

Project completed,

approved and vendor paid

Automated

enrollment process

leveraging existing

DSB processes and

structure.

Standard, 1

page

application

reviewed by

Sandbox team

In person 15

minute pitch to

evaluation

team.

Team recommends

company for funding or

provides constructive

feedback / concerns

around concept.

After approval,

the company

submits a plan

with specific use

of proceeds and

budget.

Project is

approved and

company is

contracted for

disbursement.

What do we look for?

• Strong evidence that the technology is unique and that

the IP is protected or likely to be protectable.

• High likelihood that the technology will be competitive in

the marketplace and result in a sizeable business

opportunity.

• Initial Proof of Concept is likely to be achieved within the

defined project budget and timeline.

• The market opportunity is robust.

• Strong, competent management team.

Specific elements that drive program results

• Credible, results-oriented program that helps hundreds

• Single entry point for early stage companies to gain traction

• Evaluators with deep experience with early stage entrepreneurs

• Access to network of 230+ resources to provide “right time-right place” connections

• Provide project funding to build minimum viable product

• Strong corporate involvement working directly with companies

• Successfully prepare companies for fund-raising

Connector Programs

• Hallmark Innovation Showcase

• Sprint Techstars Collision Days

• UMB Sandbox Celebration

Educational Components

• Kauffman Fasttrac scholarships

• Summer in Sand Series

• Sprint Mentor Program

• Hallmark Leap Lab

Proof of Concept Funding

• Market Validation

• Prototyping expenses

• Technical Resources

• Beta Testing

• Project Personnel

Program Benefits

• In 26 months since launch:

– Participation: 300+ participants in program

– Funding: 46 projects funded

– Diversity: 10 women-founded companies funded

– Business Starts: 23 new companies created

– Add-on funding: 33 companies have secured investment

– New local investment: $17.8M+ in follow-on funding

– New Jobs: 181 net new jobs created

Success Metrics

Digital Sandbox Success

2014 Results 2015 Forecasted

Results

Participants 250 320

Projects Funded 37 64

Women-founded

companies funded

10 20

New company starts 22 35

Net new jobs 135 200+

Companies w/ add-on

investment

24 40

Add-on Investment $7.6M $20M