sxsw: a university's role in funding startups
TRANSCRIPT
@NYUEntrepreneur
A University’s Role in Funding Startups
Frank Rimalovski Executive Director, NYU Entrepreneurial Institute Managing Director, NYU Innovation Venture Fund March 13, 2015
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Topics
! About me
! About Entrepreneurship @ NYU
! Why funding is important?
! How do we do it?
! What have we accomplished?
! What else?
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About the Entrepreneurial Institute
! Grew from Innovation Venture Fund in 2010
! Lead NYU-wide initiative to accelerate pace of tech commercialization & startup activity
! Separate, but work closely with tech transfer office (Office of Industrial Liaison)
! Dedicated team of startup experts offering resources, programs, events & staff to help NYU startups start up
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Early Experience: 2010-12
! Lot’s of interest, but few investment-ready ventures
! Tapping into small percent of NYU
! Disconnected from NYC ecosystem
! Common needs across sectors, schools & students/faculty
! Mythology & misinformation abounds
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Classic Blunders ! Confusing vision with product/business
! “If you build it they will come”
! Trying to be all things to all people
! Hiring “code monkey” to build your app
! Relying on TTO to find a CEO/funding
! Fund � Build � Customers 13
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Vision
Create a culture that values, promotes & facilitates technology-based entrepreneurship university-wide
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Mission
Creating an entrepreneurial ecosystem that serves the entire NYU community providing inspiration, education, networking, acceleration & funds
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Our Focus
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Information Technologies
Life Science/
Healthcare
Physical Science/Energy
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Our Playbook
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• Celebrate role models
• Speakers • Events • Incentives
• Classes • Workshops • Bootcamps • Handbooks
& Guides • Internships
• Clubs & orgs • Showcases • Meetups • Social media • Collaborative
workspaces
• Coaches & Mentors
• Pitch Events • Competitions • Accelerators • I-Corps
• Prototype funds • Non-dilutive
fund “training” • Venture Funds • Gap/POC funds
Inspire Educate Connect Accelerate Fund
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Fund Overview ! Philanthropic seed fund
! Evergreen: NYU sole “LP”
! Active diligence
! Help build smart syndicates
! $100-200k direct investments
! Converts, Series Seed & A
! Board observer seats
! Opportunistic follow-ons
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I V F
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Checks & Balances
Pitch to IVF
Prelim Diligence
Pitch to IRB
Diligence&
Syndicate Building
Memo for IRB
Approval
SVP/GC/CFO
Approve
CFO Signature
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By the Numbers
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Investments
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Sectors
Info Tech: 7* Life Sci/Health: 4*
NYU Founders (School) CAS: 2 Medicine: 6 Eng: 1 Stern: 5 Dentistry: 2 Law: 1 Courant: 1
NYU Founders (Type) Students: 8 Faculty: 8 Researcher: 2
IT Investments
Hardware: 2 Software: 5
Invested Capital
Invested: $1,125,000 Value: $1,289,309
Female Cofounders
40% Total Capital Raised
$20,490,000 (>18x) '
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Why this investment model? ! Participate in larger rounds to achieve
meaningful milestones & value inflection
! Invest as part of a larger syndicate
o Leverage diligence, expertise & connections
o Follow-on financial support
o Co-investors to serve on boards
! Other sources exist in/outside NYU to fill pre-VC needs
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Critical Role of the Fund ! Return on investment
! Demonstrates University commitment & importance of entrepreneurship
! Raises NYU's profile amongst peer institutions & government agencies
! Credibility & bridge building with NYC investor community
! A catalyst for entrepreneurship within NYU
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Startup Funding Lifecycle
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�
Discovery
�
Validation
�
Customer Creation
� Company Building
Test assumptions about customer needs/problem & develop MVP
Seek Validation that people are interested in your product/service
Begins to build demand & improve efficiency of customer acquisition
Drive growth aggressively & execute business model
Invention & ideation
Grants, Crowdfounding Competitions Founders + Credit cards
Crowdfounding I-Corps
Accelerators SBIR/STTR +
Friends & family
Angels Seed funds
Venture capital funds Valuation*
Source: startupcompass.co
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Institute & Fund Goals ! Make entrepreneurship a campus-wide,
multi-disciplinary experience ! Bring more NYU innovations to market ! Compete for top students, faculty &
research funding ! Generate return on investment ! Create generation of entrepreneurs to
inspire & support NYU for years to come
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Questions?
[email protected] @nyuentrepreneur nyu.edu/entrepreneur nyuentrepreneur.com 16 Washington Place
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