sc launch annual report 2008
DESCRIPTION
SC Launch is an unprecedented collaboration among SCRA and South Carolina's university research foundations. The SC Launch team works to strengthen South Carolina's Knowledge Economy.TRANSCRIPT
Helping Build South Carolina’s Knowledge Economy
SC Launch! was created to facilitate applied research, product development and commercialization programs, and to strengthen South Carolina’s
Knowledge Economy by creating high wage-earning jobs.
SC Launch! provides entrepreneurs with key tools for success to help build technology startups, jobs and equity in the future for South Carolina.
SC Launch! also provides access to business, academic and economic development entities through the SC Launch! Resource Network.
SC Launch! is a collaboration among SCRA and South Carolina’s university research foundations: Clemson University, the University of South Carolina and
the Medical University of South Carolina.
n Helpcreatestartupswhichleverageintellectualpropertyfromtheresearchuniversitiesandencouragepartnershipsamongthepublicandprivatesectors;
n Providesupporttogenerateprofessional-gradeappliedresearchandcommercialization;
n PromotethedevelopmentofKnowledgeEconomyindustriesandappliedresearchfacilitiesinSouthCarolina;
n FocusSCLaunch!clienteffortsonthedevelopment,testingandimplementationofnewadvancesinknowledge-basedindustries;
n Establishacontinuingforumtofostergreaterdialoguebetweenthestate’sresearchuniversitiesandindustry;
n AssistuniversityresearchfoundationsinSouthCarolinatoincreasetheirresearchcapabilities.
Fulfill the 2005 Innovation Centers Act to:
The SC Launch! Mission
INNOVATION PIPELINE
Programs that Support Discovery, Development and CommercializationSCLaunch!isinvolvedineachstepoftheinnovationpipeline,fromdiscoveryassessmentthroughdevelopmentanddeployment,andcontinuingwithsupportduringlatercommercializationactivities.Programsincludeuniversitypre-company initiativesupport,anSBIR/STTRMatchinggrantprogram,andboth fundingandsupport tohelpstartupcompaniesgrow.
Additionalprograms include supportof innovationprizes, landingpartiesanddemonstrationprojects. InnovationprizesareawardedthroughtheNewIdeasforaNewCarolinacontest,whichencouragesandsupportsinnovatorsandinventorsincommercializingtheirideas.LandingpartiesareR&DstagecompaniesthatrelocatetoSouthCarolinaandmakeacommitmenttogrowtheKnowledgeEconomy.Demonstrationprojectsconceptualize,attractandexecutetechnologyinfocusedprogramareas.University Startup Assistance ProgramThisprogramsupportsresearchuniversity-based,early-stagecompanies,andpre-companyinitiativesbyprovidinggrantfundingforproof-of-conceptstudies,prototypedevelopment,clinicaltrials,protectionofintellectualpropertyandothersimilaruses.TheseinitiativesarerecommendedbytherespectiveuniversityresearchfoundationExecutiveDirectorordesigneeandmeettheSCLaunch!criteria.Thisprogramfundingencouragesthecommercializationofuniversityresearchandtechnology.
SBIR/STTR Phase I Matching Grant ProgramTheSCLaunch!SBIR/STTRPhaseIMatchingGrantProgramawardsmatchingfundstoSouthCarolina-basedcompaniesthat havebeengranted a Federal Small Business InnovationResearch (SBIR) or Small Business Technology Transfer(STTR)PhaseIaward.TheProgramisdesignedtofosterjobcreationandtheKnowledgeEconomyinSouthCarolinabyincreasingthecompetitivepositionofSouthCarolinasmallbusinessesinattractingSBIR/STTRgrantfunding.TheProgramalsoprovidesanincentiveforFederalPhaseIaward-winningcompaniestoparticipateinthemoresubstantialFederalPhaseIIprogram.
ForSBIR/STTRPhaseIMatchingGrantProgrameligibilityrequirementspleasevisitwww.sclaunch.org.
Incentive $ Incentive $ Investment $Risk Reduction
ServicesPre-Company /
University Startup Initiatives
Proof-of-ConceptPrototyping
Clinical TrialsIP Support
Business Plan Services
Licensing
Startup Company Seed-Stage Investments
SC Launch! Resource Network
Mentoring Seminars Training
Networking
Grants Convertible Notes Promissory Notes
Equity Investments Royalties
Assessment Development Deployment
SupportIDEA INNOVATION
‘New Ideas’ Innovation Prizes
SBIR/STTR Phase 1 Matches
Landing Party Support
Demonstration Projects
SC Launch! identifies, nurtures and supports the growth of high impact knowledge-based companies by providing:
FundingSCLaunch!offersfundingtoqualifiedapplicantsintheformofgrants,loansandequityinvestments.Grantsmaybeawardedtohelpdefraythecostofbusinessservicessuchaslegal,financial,marketingandintellectualpropertyprotection.Grantsarealsointendedtofurthertheappliedresearchanddevelopmenteffortsand better position the Client Company for future growth and fund-raising.Onceacompanyhasmetcertainmilestones,theymaygobeforetheSCLaunch!Inc.Boardforapprovalofaloanorequityinvestmentofupto$200,000.TheSC Launch! funding process prepares its clients for the rigors involved inacquiringfollow-onfundingfromangelinvestorsandventurecapitalfirms.
Mentoring and SupportSCLaunch!ZoneManagersarethefrontlineoftheSCLaunch!program.Theirduties include mentoring and guiding SC Launch! Client Companies andconductingduediligencewithprogramapplicantsandcompaniespresentingto the SC Launch! Inc. Board. ZoneManagers collaboratewith corporationsand with colleges and universities statewide. They also work closely withSC Launch! Resource Partners and economic development organizations tohelpstrengthentheKnowledgeEconomy.
HELPING COMPANIES GROW
SC Launch! support and
funding positions companies for
follow-on capital.
Access to Resource Network SC Launch!’s connections with the business, academic and economicdevelopmentsectorsofthestateprovideanecosystemofsupporttomaximizeclientopportunitiesforsuccess.TheSCLaunch!ResourcePartnersareseasonedprofessionalswhoprovidebasicbusinessservicessuchasbanking,accounting,legal,insurance,advertisingandmarketing.Throughthisnetwork,SCLaunch!companiesreceivecounseling,mentoringandtraining.
Program Acceptance GuidelinesThefollowingcriteriaareusedtoqualifycompaniesforentryintotheSCLaunch!program.
n SouthCarolinaentity–basedinSCorcommittedtolocatetotheState,withentityestablishedandregisteredwithSCSecretaryofStateandatleast51%ofpayrolllocatedinSC;
n High-impactpotentialintermsofknowledge-basedjobsandincreaseinpercapitaincomeinthesurroundingareaorcounty;
n Intellectualpropertyposition that isprotectedorcapableofbeingpro-tectedthuscreatingadistinctcompetitiveadvantage;
nLinkagetoSouthCarolinaresearchuniversitiesisbeneficial.CompaniesinterestedinSCLaunch!thatmeettheabovecriteriashouldgotowww.sclaunch.orgforanapplication.
Technology Sectors These technology sectors are currently identified as having the greatest statewide interest and alignment with the research focus areas of the university research foundations.
n Advanced Materials and Fibers
n Alternative Energy, including, but not limited to, Hydrogen a
nd Fuel Cellsn Automotiven Life Sciences,
Biotechnology and Biomedical
n Engineering/Chemicalsn Related Information
Technology and Software
Measuring SuccessInvestmentsmadeundertheSCLaunch!programarepredominatelyhigh-risk,andaredesignedtostimulatecompanygrowth,technologytransferandneweconomicdevelopment.Therearedifferentmeasuresofsuccess,andSCLaunch!tracksavarietyofperformanceindicators,including:
nHigh-performanceKnowledgeEconomyfirmcreation
nJobcreation(professionalandresearch&developmentjobsabovetheprevailingwagerate)
nLinkagesbetweenuniversitiesandprivateindustry(e.g.spin-outs,spin-offs,tie-backs,etc.)
nClientcompaniesfunded
nFollow-onfinancingofSCLaunch!companies
nFinancialreturnonequityandloaninvestmentsinSCLaunch!companies
In addition to grants, loans and equity investments, SC Launch! assists in preparing its clients for further growth and success through collaboration, advice and mentoring.
Bolstering the Growth of Medical Technologies in South CarolinaInadditiontoreceivingafinancialinvestmentfromSCLaunch!,SabalMedical relocatedtheirbusinessto take full advantage of the partnerships andcollaboration offered by SC Launch!. Their movebolsteredthegrowthofmedicaltechnologies inSouthCarolina,andenabledthemtoformrelationshipswithlocalhospitalsandprovidecontinuedsystemsupporttoGreenvilleHospitalSystem.
With this move, Sabal is poised for future growth and continued productdevelopment. Sabal recently received several million dollars in investmentcapital.ThefinancingwasledbyNexusMedicalPartnersofQuincy,MA,anditsGermanaffiliate,MedicisNexusPartnersGmbHofMunich.SabalMedicaldevelopsandproduces an automated nursingmedication cart andbarcodeverificationsoftwarethatensuresfivecriticalpatientrights:therightpatient,rightmedication,rightdose,rightrouteandrighttime.Theproduct,knownasMedCenter™, offers a comprehensive solution, certaintobringnurses,patients andpharmacists together tosavelivesonepatientatatime.
FOSTERING HIGH-IMPACT TECHNOLOGY
SC Launch! supports companies
that are in the vanguard
of the shift to a Knowledge
Economy.
SABALM E D I C A Lmedication safety, one patient at a time
Positioned for Further GrowthCreatiVascMedicalwasfoundedin 2004 to deliver a stream ofinnovative, easy-to-use andintuitive vascular technologiesthat address the universalproblemsofkidneydialysisconnectivity.TheCreatiVascdevicesaredesignedto provide innovative solutions that dramatically improve dialysis patients’qualityoflife.
CreatiVascMedical, located in Greenville, South Carolina, has found greatergrowth and success through their SC Launch! collaboration. In addition toa financial investment, the partnership further positioned the company tosecureprivatefunding.TheSCLaunch!ResourceNetworkassistedCreatiVascinfindingamanufacturerfortheirproduct.
“ThefinancialinfusionfromSCLaunch!hasenabledustoaccelerateourproductdevelopment,patentprotectionandFDAtestingactivitywhileweraised$3.5millionfromourprivateequityfundingforcontinuedgrowth.Wecouldnothaveachievedwhatwehavewithout this innovativenewprogram. Being fundedbySCLaunch!allowedustoprepareforcommercializationofourfirstdevice,whilewesuccessfullycompletedtheprivateequityinvestmentdrive.TheentireSCLaunch!staffhasbeenatremendousassetingivingussupportandadvice.Weevenfoundanin-statemanufacturerforourfirstcommercializedproduct,theFistulaFinder®,throughSCMEP,anSCLaunch!ResourcePartner.”
SteveJohnson,CreatiVascMedical,CEO
“The expertise of the SC Launch! staff has really given us access to important tools we could not get otherwise. SC Launch! has legitimized us through their due diligence process and has better positioned us to angel investor groups, venture capital firms and to people throughout the region.”
Marty Lefkowitz,DigitalDerm, CEO
“By working with the SC Launch! program, Sabal is able to take this technology to a broader marketplace. The relocation to South Carolina was a strategic move. SC Launch! strategic seed money has positioned us for growth, and the high-quality relationships we’re developing with hospitals like Greenville Hospital System are providing excellent input to our product development process.”
Bill Park, Sabal Medical, CEO and President
SC Launch! provides seed capital of up to $200,000 to high potentialstartups to bridge the funding gap between “friends and family”investmentsand follow-on,venturecapital funding,which is critical toa company’s success. An ideal example is Zipit Wireless, a Greenville,SC-based developer and distributor of the Zipit Wireless Messenger.SC Launch! invested in Zipit Wireless with seed funding when the
companywasatacrossroads.Withinoneyear,Zipitreceived$4.5Minadd-onseriesAfunding,andcontinuestoexpandtowardnewopportunities initsmarketspace.
Startups Propel the South Carolina Technology Base
University research and technology is a priority, and SC Launch! assists with making it a commercial reality.
Argolyn Bioscience, Inc. ArgolynBioscience,Inc.isaprivatelyheld biopharmaceutical companydedicated to discovering anddevelopingnovelpeptidedrugcandidatestotreatpain,psychosis,andotherseriousdiseasesanddisorders.Thecompanywasfoundedin2002onthebasisofinventionscreatedattheMedicalUniversityofSouthCarolinabyDr.ThomasDixintheDepartmentofPharmaceuticalSciences.
Thecompanyhastwocompoundsindevelopment.ABS212ananalgesicdrugcandidatethatworksbyanovelmechanism.ABS201isindevelopmentasafirst-in-classtreatmentalternativeforschizophrenia.These,andotherproductcandidates in their portfolio,weredevelopedusing their proprietary aminoacid analog substitution technology which enables the rapid and efficientdiscoveryofnovel,peptide-baseddrugcandidates.
Argolynwas awarded the 2007Deal of the Year for first-time financings bySoutheast BIO in November, 2007. The company received a $15.8 millionfinancing round in June, 2007, co-led by investors Intersouth Partners andQuaker BioVentures, with Amgen Ventures also participating. The financingisbeingusedtoadvancethecompany’sdrugcandidatesintohumanclinicaltrialsandtovalidateitspatent-protectedtechnologyplatform.
“SCLaunch!cametousatacriticaltimeinourcompany’sdevelopment.Theyhavebeenmorethanasourceofcapital.They’vemadeimportantintroductionsforusandhelpedmakeusmorevisible.”
PearceGilbert,ArgolynBioscience,Co-FounderandCOO
COLLABORATING TO TAKE IDEAS TO MARKET
University connections are
critical to the mission of
SC Launch!. This is where the ideas
that become knowledge-based companies begin.
SelahTechnologies,LLCisanadvancedmaterialsmanufacturingcompanyfocusedonthedevelopmentofnanotechnologyenabledproductsforthebiomedicalandconsumerelectronics industries. Itsmission is to consistentlydeliverhighqualityproducts to theglobalmarketplace in an ethically soundmanner. The companystartedwithresearchthatcamefromClemsonUniversityandiscurrentlylocatedinPendleton,SouthCarolina.
“SouthCarolina’stransitiontoaknowledgeeconomyisdependentonmanyfactors.Chief among these is the support thathigh tech startupsfindhere in comparison toother states.Manyparties inthestatenowrecognizethis realityandareactivelyworkingto improvethesoilconditionsfornewcompanies likeSelahTechnologies.SCLaunch!istheembodimentofSCRA’seffortsinthisregard.SelahhasbeenblessedtofindanoutstandingpartnerinSCLaunch!duringthiscriticaltimeinourstartup.”
MichaelBolick,SelahTechnologies,CEOandPresident
Selah DotsTM are carbon based quantum dots that have a broad range of potential applications that include tumor guided surgery and use in biosensors.
SensorTechSensorTech offers a new, patent-pending contact sensing technology thataccuratelymeasuresforce,pressure,torque,orimpact.Thisexcitingtechnologyhastheabilitytobeformedintoanyshapeandsize.
AndrewClarkco-inventedthisnewbioengineeringtechnologyaspartofhisdoctoral program in Bioengineering at Clemson University. The UniversityappliedforapatentofthetechnologyandtheSpiroInstituteforEntrepreneurialLeadershiparrangedforMBAstudentstoworkwithSensorTechtoexploreitsmarket opportunity. Clark also completed the Technology EntrepreneurshipCertificateprogramattheSpiroInstitute.SensorTechnowholdsanexclusiveoptiontonegotiatealicensewithClemsontocommercializethetechnology.
“We’re excited to be working to commercialize this technology with near-term opportunities in prosthetics and load-cell sensors. SC Launch! has been particularly valuable through the University Grant they awarded us. This provided working capital for equipment, raw materials and other operating costs so vital to a start-up. We’re now finalizing our business plan and will apply for the additional SC Launch! funding!”
Chuck Pringle, SensorTech Inc., CEO
CarboNixFormed in 2006 by local entrepreneurAl Quick and Dr. Michael Matthews at USC,CarboNix, LLC uses a novel method of low-temperature sterilization to eliminate microbial spores and allergens fromvariousmaterials.Itdevelops,markets,sellsanddistributesproductsbasedonlicensed,compressedCO2technology.
“The formation of CarboNix provides a great example of how a new focus on commercializing the technologies developed in our South Carolina research universities can play a significant role in economic development for the State. Companies like CarboNix will spring up all over the state with help of partners like SC Launch! and others.”
Al Quick, CarboNix, Co-founder and COO
Selah Technologies - Innovation in Nanomaterials
Resource PartnersBB&TBauknight Pietras & Stormer, PA Byrum Innovation GroupCarolina First BankCarolina Software As A ServiceCarterTodd & AssociatesChernoff NewmanDority & Manning, P.A Dynamic ExhibitsECI – Find New MarketsElliott Davis, LLCHR On-CallMcNair Law Firm McPherson, Berry & Associates, Inc Michael D. Layman, Attorney at Law, P.ANelson Mullins Riley Scarborough LLP Ogletree DeakinsPost No Bills, Inc ProActive Technology PST Computer Training, IncStrategic Marketing International (SMI) South Carolina Chamber of CommerceSouth Carolina Manufacturing Extension Partnership (SCMEP)Trevelino/Keller Communications VC3VantagePoint Wachovia CorporationWillcox Buyck & Williams, PA Wyche Burgess Freeman & Parham, PA
TheIndustryPartnershipFundisaneasywayforindividualsorbusinessestomakeanimpactonthegrowthofaKnowledgeEconomyinSouthCarolina.A South Carolina taxpayer (individual or corporate) can receive a 100%creditagainststateincometaxes,insurancepremiumtaxesand/orcertainlicense fees. The individual limit is $2,000,000and theaggregate limit is$6,000,000.Contributionsareacceptedonafirstcome,firstservedbasis.BycontributingtotheIndustryPartnershipFund,youbecomeamemberoftheCircleofInnovation.
Industry Partnership Fund Fuels SC Launch! Using $12 million from SCRA’s strategic cash reserves, the SC Launch!program was created in 2006 to fulfill the mandates of the InnovationCentersAct.InordertosustainKnowledgeEconomydevelopmentbeyond2008, the Industry Partnership Fund was established in 2006 under theIndustryPartnersAct.ContributedfundsareusedbySCLaunch!tosupportcommercialization of intellectual property out of university researchfoundations,aswellasassistentrepreneursacrossthestate.Fundsarealsoutilizedtofinancestart-upandspin-outcompanies,provideincubationandbusinessservicestocompaniesandotheractivitiestoexecutethemandatesintheInnovationCentersActandtheIndustryPartnersAct.
SCLaunch!iscurrentlyacceptingcontributionstosupportentrepreneursinSouthCarolina.Ifyouareinterestedinlearningmoreaboutbecomingaparticipantinthisexcitinginitiativepleasevisit:
www.sclaunch.org
You can have an Impact on the Knowledge EconomyWhen you give you join others in the Circle of Innovation. Your support enables SC Launch! to provide:
n Financial support to help potentially successful companies bridge the funding gap;
n Matching funds to Phase 1 SBIR/STTR award winners which will bolster the economic assistance these programs offer for small businesses and encourage greater access and leverage of federal research dollars;
n Assistance to universities to help turn promising research technologies into commercial realities;
n Resources to encourage R&D landing parties to relocate to South Carolina.
n Mentoring, training and networking opportunities to the continually increasing number of companies in the program in order to help their businesses succeed.
JOIN THE CIRCLE OF INNOVATION
Where to go from here...
nanentrepreneurinterestedinhelptakingyourideatomarket;napersonwritingforanSBIR/STTRGrant;nanindividualormemberofanorganizationinterestedincontributingfundstosupportthe
SCLaunch!missionwhilereceivingdollar-for-dollartaxcredits;nsomeonewantingtolearnmoreaboutwhatwedo?
Are you:
If so, please contact us at 803-343-5311 or www.sclaunch.org.
38,000,000 dollarsinfollow-onfundingsecuredbySCLaunch!companies
77,000averagesalary(indollars)ofjobscreated
116membersoftheCircleofInnovation
59companiesthathavereceivedsomeformoffunding
52companiescurrentlyreceivingsupport
41companiesreceivingdirectinvestment
25innovationprizesawardedtoinventors
12 demonstrationprojectsfunded
8SBIR/STTRmatchinggrantsawarded
5researchanddevelopmentlandingparties
Results to date...Since inception inApril2006, theSCLaunch!programhashada significantimpactonSouthCarolina’sKnowledgeEconomy.Throughcollaborationswiththeresearchuniversities,thesupportofourResourcePartnersandthemembersoftheCircleofInnovationwehaveallcometogethertomakeadifference.Themetricsarediverseandpoisedtogrowinthecomingyears.
“This is a very special investment for us and the state. Progress Energy is proud to support the Industry Partnership Fund. It is an investment in the future of our state’s Knowledge Economy”
Emerson Gower, Progress Energy,
Vice President
“We believe that SCRA and the SC Launch! program are having a major impact in helping encourage and foster high impact, knowledge-based enterprises. We have a vital interest in this and want to do all we can to help in the process.”
Irv Welling, Shareholder, Elliott Davis
www.sclaunch.org