Making the Leap Big Bang 2015/16

Transcription

1 Making the Leap Big Bang 2015/16 Innovation and Entrepreneurship 1

2 Do you have something the world needs? # of New Ventures Grants Development Grants (e.g. SBIR) Stages of venture funding Net Cash Flow Valley of Death Basic Applied Stages of venture development January 28, 2016 Innovation and Entrepreneurship 150 BC Persian soldiers brought moldy breads on campaigns to treat infecpons. Innovation and Entrepreneurship 2

3 150 BC Persian soldiers brought moldy breads on campaigns to treat infecpons s European scienpsts including Lister, Tyndall, Pasteur, Joubert find penicillin molds inhibit bacterial growth. 150 BC 1870 s 1897 Persian soldiers brought moldy breads on campaigns to treat infecpons European scienpsts including Lister, Tyndall, Pasteur, Joubert find penicillin molds inhibit bacterial growth. French doctoral student Ernest Duschenes discovers P. glaucum kills e. coli bacteria and typhoid bacilli. Innovation and Entrepreneurship 3

4 150 BC Persian soldiers brought moldy breads on campaigns to treat infecpons 1870 s European scienpsts including Lister, Tyndall, Pasteur, Joubert find penicillin molds inhibit bacterial growth. French doctoral student Ernest Duschenes discovers P. glaucum kills e. coli bacteria and typhoid bacilli. Clodomiro Picado Twight, in Costa Rica, publishes on the use penicillium to treat papents with staphylococcus. 150 BC Persian soldiers brought moldy breads on campaigns to treat infecpons 1870 s European scienpsts including Lister, Tyndall, Pasteur, Joubert find penicillin molds inhibit bacterial growth. French doctoral student Ernest Duschenes discovers P. glaucum kills e. coli bacteria and typhoid bacilli. Clodomiro Picado Twight, in Costa Rica, publishes on the use penicillium to penicillium treat papents to treat with papents staphylococcus. with staphylococcus. Fleming discovers anpbacterial properpes of Penicillium notatum. Publishes paper. Nothing happens. Innovation and Entrepreneurship 4

5 150 BC Persian soldiers brought moldy breads on campaigns to treat infecpons 1870 s European scienpsts including Lister, Tyndall, Pasteur, Joubert find penicillin molds inhibit bacterial growth. French doctoral student Ernest Duschenes discovers P. glaucum kills e. coli bacteria and typhoid bacilli. Clodomiro Picado Twight, in Costa Rica, publishes on the use penicillium to penicillium treat papents to treat with papents staphylococcus. with staphylococcus. Fleming discovers anpbacterial properpes of Penicillium notatum. Publishes paper. Nothing happens. 150 BC Persian soldiers brought moldy breads on campaigns to treat infecpons 1870 s European scienpsts including Lister, Tyndall, Pasteur, Joubert find penicillin molds inhibit bacterial growth. French doctoral student Ernest Duschenes discovers P. glaucum kills e. coli bacteria and typhoid bacilli. Clodomiro Picado Twight, in Costa Rica, publishes on the use penicillium to penicillium treat papents to treat with papents staphylococcus. with staphylococcus. Fleming discovers anpbacterial properpes of Penicillium notatum. Publishes paper. Nothing happens. Innovation and Entrepreneurship 5

6 150 BC Persian soldiers brought moldy breads on campaigns to treat infecpons 1870 s European scienpsts including Lister, Tyndall, Pasteur, Joubert find penicillin molds inhibit bacterial growth. French doctoral student Ernest Duschenes discovers P. glaucum kills e. coli bacteria and typhoid bacilli. Clodomiro Picado Twight, in Costa Rica, publishes on the use penicillium to penicillium treat papents to treat with papents staphylococcus. with staphylococcus. Fleming discovers anpbacterial properpes of Penicillium notatum. Publishes paper. Nothing happens. Howard Florey and team at Oxford begins invespgapng therapeupc potenpal of penicillin. 150 BC Persian soldiers brought moldy breads on campaigns to treat infecpons 1870 s European scienpsts including Lister, Tyndall, Pasteur, Joubert find penicillin molds inhibit bacterial growth. French doctoral student Ernest Duschenes discovers P. glaucum kills e. coli bacteria and typhoid bacilli. Clodomiro Picado Twight, in Costa Rica, publishes on the use penicillium to penicillium treat papents to treat with papents staphylococcus. with staphylococcus. Fleming discovers anpbacterial properpes of Penicillium notatum. Publishes paper. Nothing happens. Howard Florey and team at Oxford begins invespgapng therapeupc potenpal of penicillin. Oxford s first human trials prove penicillin s value. By year s end, commercial development begins in U.S. Innovation and Entrepreneurship 6

7 Four lessons for innovapon (and Big Bang!) 1 It s not about the idea Innovation and Entrepreneurship 7

8 I saw for the first -me everything in prac-cal opera-on. It was all before me. I saw the thing had not gone so far but that I had a chance. I saw that what had been done had never been made prac-cally useful. Thomas Edison I invented nothing new. I simply assembled into a car the discoveries of other men behind whom were centuries of work.... So it is with every new thing... Henry Ford Innovation and Entrepreneurship 8

9 You don t need a new idea. Find a good idea and make it work. Innovation and Entrepreneurship 9

10 [T]he electric ligh-ng system is now perfected. I will now bend all my -me and energies to its introduc-on to the public I m going to be a business man, I m a regular contractor for electric ligh-ng plants and I m going to take a long vaca-on in the macer of inven-on. Thomas Edison Innovation and Entrepreneurship 10

11 2 It's about commitment: yours and others' [Penicillin broth] was used in a few cases as a local an-sep-c, but although it gave reasonably good results the trouble of making it seemed not worth while. Alexander Fleming (looking back in 1940) Innovation and Entrepreneurship 11

12 Do you have something the world needs? # of New Ventures Cliff of Commitment Grants Development Grants (e.g. SBIR) Stages of venture funding Net Cash Flow Valley of Death Basic Applied Stages of venture development January 28, 2016 Innovation and Entrepreneurship InnovaPon is not risky. It s uncertain. Innovation and Entrepreneurship 12

13 Bad news / Good news InnovaPon is risky, yet much of that risk should properly be defined as uncertainty. Risk (proper) is measurable but irreducible Uncertainty is risk that not measurable but is reducible (aka Knigh5an Risk) Can we make it? Is it stable enough to study? Will it work (is it non- toxic and effecpve)? Innova5on hinges on commitment in the face of uncertainty, not discovery in the face of ignorance. Can we make it in quanpty? Will someone else build it in quanpty? Will someone else synthesize it? Dr. A. N. Richards (1964) Innovation and Entrepreneurship 13

14 Innova5on hinges on commitment in the face of uncertainty, not discovery in the face of ignorance. What s holding you back? Innovation and Entrepreneurship 14

15 Lifecycle of a new venture # of New Ventures Grants Development Grants (e.g. SBIR) Net Manage Cash for uncertainty Flow and commitment Friends, Family, & Founders ($5- $50k) Angel Investors ($50- $500k) Manage for market, product & process development Funding Early Stage Venture Capital ($500k- $2M+) Venture Capital ($2M- $50M) Valley Manage of Death for building the company Private Equity, Project Financing ($2M- $50M) Manage for growing the business IPO, Merger, or AcquisiPon ($2M- $50M) Basic Applied Gen1 1st 3-9 Months Proof of Concept Target Market Business Plan Working Prototypes Founding Team Gen2 (startup) Engineering Prototypes Supplier Contracts ProducPon Prototypes DistribuPon Contracts Gen3 (transi5on) Product IntroducPon Revenue Growth Gen4 (business) 29 Focus on reducing uncertainty: yours and others Find and resolve the biggest uncertainpes first. Do it quickly and cheaply ($5, $50, $500, $5,000 ) Innovation and Entrepreneurship 15

16 3 The network is the innovapon InnovaPon involves seeing, building, and maintaining commihed and lasing networks connecpng people, ideas, technologies, and other resources. Innovation and Entrepreneurship 16

17 The project involved much more than biochemistry. It was an interlocking problem in logis-cs, like a military campaign in which the organiza-on of the supplies, equipment, personnel, and reconnaissance need for advance are all interdependent. Gwyn MacFarlane Alexander Fleming Ernst Duschene John Fulton (Rhodes) Ernst Chain Howard Florey Mellanby (MRC) Oxford Norman Heatley Alfred Richards (US CMR) Innovation and Entrepreneurship 17

18 [Florey] recognized the limits of his own knowledge and deliberately chose as collaborators people who could supply what he lacked. In his published work he had as partners a cytologist, radiologist, a bacteriologist, a haematologist, a biochemist, and several specialized physiologists. Gwyn MacFarlane Alexander Fleming Ernst Duschene John Fulton (Rhodes) Ernst Chain Howard Florey Mellanby (MRC) Oxford Norman Heatley Alfred Richards (US CMR) Innovation and Entrepreneurship 18

19 January 28, 2016 St. Mary s Hospital Ernst Chain Sir Almroth Wright Ernst Duschene Ross Harrison (US NRC) NaPonal Labs US Pharma Industry Mellanby (MRC) Alexander Fleming Norman Heatley Howard Florey John Fulton (Rhodes) Oxford Alfred Richards (US CMR) Find and build the right network What knowledge, abilipes, or resources do you need to move forward? Who do you know that has them? Who do you know who might know who has them? Innovation and Entrepreneurship 19

20 Lifecycle of a new venture Funding Grants Net Cash Flow Development Grants (e.g. SBIR) Friends, Family, & Founders ($5- $50k) Angel Investors ($50- $500k) Early Stage Venture Capital ($500k- $2M+) Venture Capital ($2M- $50M) Valley of Death Private Equity, Project Financing ($2M- $50M) IPO, Merger, or AcquisiPon ($2M- $50M) Basic Applied Proof of Concept Working Prototypes Engineering Prototypes ProducPon Prototypes Product IntroducPon Revenue Growth Target Market Founding Team Supplier Contracts DistribuPon Contracts Business Plan Stage of Venture Development 39 Lifecycle of a new venture # of New Ventures Grants Net Cash Flow Development Grants (e.g. SBIR) Friends, Family, & Founders ($5- $50k) Angel Investors ($50- $500k) Early Stage Venture Capital ($500k- $2M+) Venture Capital ($2M- $50M) Valley of Death Private Equity, Project Financing ($2M- $50M) IPO, Merger, or AcquisiPon ($2M- $50M) Basic Applied Proof of Concept Working Prototypes Engineering Prototypes ProducPon Prototypes Product IntroducPon Revenue Growth Target Market Founding Team Supplier Contracts DistribuPon Contracts Business Plan 40 Innovation and Entrepreneurship 20

21 These programs help you determine the best path, the best first steps, and the best first network. The rest is up to you. Laboratory Publication of Pre-competitive Industry Consortia Personal Interactions between ers and Industries Corporate Sponsored Programs Placement of Skilled Students & Trainees Faculty & Student Consulting to Industry Entrepreneurial Ventures (with or without IP) IP Licensing to Established Companies January 28, 2016 Innovation and Entrepreneurship You build a network one handshake at a Pme. So what are your next partner s uncertainpes? Innovation and Entrepreneurship 21

22 EatRx What are the uncertainpes? Technology Business Market Innovation and Entrepreneurship 22

23 4 The 10- slide deck is your first $5 experiment The mindset It s beoer to be specifically wrong than vaguely right Innovation and Entrepreneurship 23

24 Overview Vision Next steps Title Slide The The Market Market The Team The Idea (as elevator pitch) The Technology The UncertainPes Deliverables The Status, Milestones, and funding The Problem, solupon, and Value The Business The Business The Summary & Next Steps Innovation and Entrepreneurship 24